-- Capital ratios in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 leverage ratio of 18.6% and a Total Risk-Based capital ratio of 24.4% at March 31, 2010. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 leverage ratio and 10% for the Total Risk-Based capital ratio. -- Total Assets at March 31, 2010 increased to $102.7 million, an increase of $23.1 million or 29% from March 31, 2009. -- Total Loans at March 31, 2010 increased to $73.8 million, an increase of $15.3 million or 26% from March 31, 2009. -- Total Deposits at March 31, 2010 increased to $81.6 million, an increase of $23.2 million or 40% from March 31, 2009. -- Three Month Net Loss of $317,000 for 2010 versus a loss of $852,000 for the comparable period of 2009. That represents a reduction of 63% or $535,000 from 2009 to 2010."In the midst of wide instability in the banking industry, PROMÉRICA BANK continues to offer its clients safety and peace of mind knowing that their Bank has capital well in excess of regulatory requirements to be 'well capitalized,' while maintaining strong liquidity and FDIC insurance to the maximum allowed by law," stated John H. Quinn, President and CEO of PROMÉRICA BANK. "We believe our strength and stability offer security for our clients in these uncertain times." He continued, "We are well positioned to continue to provide capital to the small to medium sized company market place. Certainly challenges in the economy remain and will continue into 2010, but we believe the challenges will also provide opportunities for prudent lending and expansion of our banking franchise." Net income for the 2010 first quarter was reduced by the addition of $62,000 to the loan loss reserves during the period. The provision for the 2010 first quarter was $167,000 lower than for the same quarter in 2009. The Allowance for Loan and Lease Losses represents 2.74% of total loans. Nonperforming assets, net of government guaranteed loans, totaled $1.7 million, or 1.7% of assets at March 31, 2010. "We are also pleased to report that PROMÉRICA BANK has been approved by the U.S. Treasury Department's Community Development Financial Institutions (CDFI) Fund as a certified CDFI," said Ms. Contreras-Sweet, Chairwoman of the Board. Over the past year, the Obama Administration has made the CDFI Fund one of its key programs in spurring small business development in low-income communities, and Congress recently approved a FY2010 appropriation of $246 million, a record-high appropriation, which more than doubles any previous yearly appropriation. "CDFI Fund awards allow banks to grow and expand into new communities, as well as to implement high-impact programs that meet the financial needs of underserved communities," added Ms. Contreras-Sweet. PROMÉRICA BANK provides a full range of financial services, including credit and deposit products, cash management, and internet banking for businesses and high net worth individuals from its headquarters office at 888 S. Figueroa Street, Los Angeles, CA 90017. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank's website at www.PROMERICAbank.com. NOTE: This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about PROMÉRICA BANK's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: PROMÉRICA BANK's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in PROMÉRICA BANK's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and PROMÉRICA BANK does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
PROMÉRICA BANK BALANCE SHEETS (Dollars in thousands) March 31, December 31, March 31, 2010 2009 2009 ----------- ------------ ----------- Unaudited Audited Unaudited Assets: Cash and Due From Banks $ 1,202 $ 3,930 $ 3,133 Federal Funds Sold 18,805 11,875 13,165 Time Deposits at Other Financial Institutions 8,218 3,841 4,179 =========== ============ =========== Total Cash and Cash Equivalents 28,225 19,646 20,477 ----------- ------------ ----------- Loans Net of Deferred Loan Fees/Costs 73,789 75,315 58,514 Allowance for Loan Losses 2,019 2,030 1,171 ----------- ------------ ----------- Loans Net of Allowance for Loan Losses 71,770 73,285 57,343 Premises and Equipment, net 695 788 1,079 Federal Home Loan Bank Stock 232 232 134 Other Real Estate Owned 422 0 0 Accrued Interest Receivable and Other Assets 1,348 1,403 593 ----------- ------------ ----------- Total Assets $ 102,692 $ 95,354 $ 79,626 =========== ============ =========== Liabilities: Non-Interest-Bearing Demand Deposits $ 19,484 $ 17,134 $ 14,250 Interest-Bearing Demand Deposits (NOW Deposits) 2,672 2,963 3,633 Savings and Money Market 16,646 13,834 11,301 Certificates of Deposit 42,815 42,245 29,281 =========== ============ =========== Total Interest-Bearing Deposits 62,133 59,042 44,215 =========== ============ =========== Total Deposits 81,617 76,176 58,465 Other Borrowings 1,929 0 0 Accrued Interest Payable and Other Liabilities 683 464 732 ----------- ------------ ----------- Total Liabilities 84,229 76,640 59,197 Shareholders' Equity: Common Stock 27,245 27,245 27,245 Additional Paid in Capital 1,237 1,170 983 Accumulated Deficit (10,019) (9,701) (7,799) ----------- ------------ ----------- Total Shareholders' Equity 18,463 18,714 20,429 ----------- ------------ ----------- Total Liabilities and Shareholders' Equity $ 102,692 $ 95,354 $ 79,626 =========== ============ =========== Tier 1 Leverage Ratio 18.6% 21.0% 28.0% Tier 1 Risk-based Capital Ratio 23.2% 25.0% 33.8% Total Risk-based Capital Ratio 24.4% 26.2% 35.1% PROMÉRICA BANK STATEMENTS OF OPERATIONS For the Quarters Indicated (Dollars in thousands except per share data) March 31, December 31, March 31, 2010 2009 2009 ----------- ------------ ----------- Unaudited Audited Unaudited Interest Income: Interest and Fees on Loans $ 1,188 $ 1,203 $ 868 Interest on Federal Funds Sold 9 5 5 Interest on Balances at Other Financial Institutions 24 18 26 Dividends on FHLB Stock 0 0 1 ----------- ------------ ----------- Total Interest Income 1,221 1,226 900 Interest Expense: Interest on Deposit Accounts 145 138 174 =========== ============ =========== Net Interest Income 1,076 1,088 726 Provision for Loan Losses 62 1,181 229 ----------- ------------ ----------- Net Interest Income After Provision for Loan Losses 1,014 (93) 497 Non-Interest Income: Non-Interest Income 33 30 33 Non-Interest Expense: Salaries and Employee Benefits 736 713 772 Stock Based Compensation Expense 67 68 79 Occupancy Expense 219 226 225 Operating Expense 342 288 306 =========== ============ =========== Total Non-Interest Expense 1,364 1,295 1,382 ----------- ------------ ----------- Pre-tax Net Loss (350) (1,388) (885) Provision for Income Taxes 0 1 0 Net Loss $ (350) $ (1,389) $ (885) =========== ============ =========== Loss per share - basic and diluted loss per share $ (0.13) $ (0.51) $ (0.32) ----------- ------------ -----------
Contact Information: Contact: PROMERICA BANK Maria Contreras-Sweet Chairwoman 213.787.2802 John H. Quinn CEO / President 213.787.2803 Frank E. Smith CFO 213.787.2804