LOS ANGELES, CA--(Marketwire - Apr 27, 2011) - PROMÉRICA BANK (OTCBB: PMRA) today reported results for its 2011 first quarter of operations. Highlights of the first quarter ended March 31, 2011 include:
-- Three Month Net Income of $24,000 for 2011 versus a loss of $317,000 for the comparable period of 2010. This is the Bank's second consecutive quarterly profit. -- Total Assets at March 31, 2011 increased to $117.8 million, an increase of $15.1 million or 15% from March 31, 2010. -- Total Loans at March 31, 2011 increased to $85.7 million, an increase of $11.9 million or 16% from March 31, 2010. -- Total Deposits at March 31, 2011 increased to $98.7 million, an increase of $17.1 million or 21% from March 31, 2010. -- Capital ratios in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 leverage ratio of 16.1% and a Total Risk-Based capital ratio of 21.2% at March 31, 2011. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 leverage ratio and 10% for the Total Risk-Based capital ratio.
"With net income continuing to improve and assets, loans and deposits all showing solid growth, PROMÉRICA BANK'S Board of Directors is optimistic about our future," said Ms. Contreras-Sweet, Executive Chairwoman of the Board. "We are a local bank serving the communities of Los Angeles and our growth reflects the confidence those communities have in us. We remain committed to our business banking specialty, and our unique skills in the growing Latino business community provide responsive banking where it is most needed."
Net income for the 2011 first quarter was reduced by the addition of $179,000 to the loan loss reserves during the period. The provision for loan losses for the 2011 first quarter was $117,000 higher than for the same quarter in 2010. The Allowance for Loan and Lease Losses represents 2.48% of total loans. Nonperforming assets, net of government guaranteed loans, totaled $1.2 million, or 1.0% of assets at March 31, 2011.
"We are very pleased with another quarter of improved earnings," stated John H. Quinn, President and CEO of PROMÉRICA BANK. "We believe our customers and our staff will enable us to continue with solid growth and improved performance this year. While much uncertainty remains in the economy, our careful and intentional growth is building value for our customers, our community and our Bank."
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,
2011 2010 2010
------------ ------------ ------------
Unaudited Audited Unaudited
Assets:
Cash and Due From Banks $ 1,661 $ 1,195 $ 1,202
Federal Funds Sold 23,655 25,145 18,805
Interest on Balances at Other
Financial Institutions 6,923 9,181 8,218
============ ============ ============
Total Cash and Cash
Equivalents 32,239 35,521 28,225
------------ ------------ ------------
Loans Net of Deferred Loan
Fees/Costs 85,725 81,168 73,789
Allowance for Loan Losses 2,129 2,058 2,019
------------ ------------ ------------
Loans Net of Allowance for
Loan Losses 83,596 79,110 71,770
Premises and Equipment, net 312 408 695
Federal Home Loan Bank Stock 232 364 232
Other Real Estate Owned 0 0 422
Accrued Interest Receivable and
Other Assets 1,418 1,352 1,348
------------ ------------ ------------
Total Assets $ 117,797 $ 116,755 $ 102,692
============ ============ ============
Liabilities:
Non-Interest-Bearing Demand
Deposits $ 35,352 $ 39,667 $ 19,484
Interest-Bearing Demand Deposits
(NOW Deposits) 4,768 5,187 2,672
Savings and Money Market 21,260 15,811 16,646
Certificates of Deposit 37,354 37,092 42,815
------------ ------------ ------------
Total Interest-Bearing
Deposits 63,382 58,090 62,133
============ ============ ============
Total Deposits 98,734 97,757 81,617
Other Borrowings 0 0 1,929
Accrued Interest Payable and
Other Liabilities 486 512 683
------------ ------------ ------------
Total Liabilities 99,220 98,269 84,229
Shareholders' Equity:
Common Stock 27,245 27,245 27,245
Additional Paid in Capital 1,515 1,448 1,237
Accumulated Deficit (10,183) (10,207) (10,019)
------------ ------------ ------------
Total Shareholders' Equity 18,577 18,486 18,463
------------ ------------ ------------
Total Liabilities and
Shareholders' Equity $ 117,797 $ 116,755 $ 102,692
============ ============ ============
Tier 1 Leverage Ratio 16.1% 15.8% 18.6%
Tier 1 Risk-based Capital Ratio 20.0% 21.0% 23.2%
Total Risk-based Capital Ratio 21.2% 22.3% 24.4%
PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Quarters Indicated
(Dollars in thousands except per share data)
March 31, December 31, March 31,
2011 2010 2010
------------ ------------ -----------
Unaudited Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 1,350 $ 1,324 $ 1,188
Interest on Federal Funds Sold 13 17 9
Interest on Balances at Other
Financial Institutions 22 29 24
Dividends on FHLB Stock 0 0 0
------------ ------------ -----------
Total Interest Income 1,385 1,370 1,221
Interest Expense:
Interest on Deposit Accounts 87 103 145
------------ ------------ -----------
Net Interest Income 1,298 1,267 1,076
Provision for Loan Losses 179 0 62
------------ ------------ -----------
Net Interest Income After
Provision for Loan Losses 1,119 1,267 1,014
Non-Interest Income:
Non-Interest Income 253 73 33
Non-Interest Expense:
Salaries and Employee Benefits 776 720 736
Stock Based Compensation Expense 67 67 67
Occupancy Expense 221 229 219
Operating Expense 284 306 342
============ ============ ===========
Total Non-Interest Expense 1,348 1,322 1,364
Net Income (Loss) from Bank
Operations 24 18 (317)
------------ ------------ -----------
Pre-tax Net Income (Loss) 24 18 (317)
Provision for Income Taxes 0 0 0
Net Income (Loss) $ 24 $ 18 $ (317)
============ ============ ===========
Net Income (Loss) per share -
basic and diluted loss per share $ 0.01 $ 0.01 $ (0.12)
------------ ------------ -----------
Contact Information: Contact: PROMERICA BANK Maria Contreras-Sweet Chairwoman 213.787.2802 John H. Quinn President/CEO 213.787.2803 Frank E. Smith CFO 213.787.2804