SANTA MONICA, Calif., March 13, 2000 (PRIMEZONE) - Professional Bancorp (AMEX:MDB), the holding company for First Professional Bank, N.A., as anticipated in a news release last month, today reported a net loss for the year ended December 31, 1999 of $8.4 million, or $4.15 per share, on interest income of $18.3 million, compared with net income of $1.4 million, or $0.74 per diluted share, a year ago.
The company attributed the net loss in 1999 to a provision for loan losses of $13.9 million compared with $0.4 million in 1998. The allowance for loan losses increased to $5.9 million at December 31, 1999 from $2.2 million for the year ended 1998.
The company also said that aggregate gross loans grew by $44.7 million to $162.6 million at December 31, 1999 from $117.9 million at December 31, 1998.
Professional Bancorp, Inc., based in Santa Monica, California, is a holding company whose subsidiary, First Professional Bank, N.A., is a commercial bank that provides a variety of financial services and products to the health care community.
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Certain information set forth in this press release may constitute "forward looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to certain risks and uncertainties. The Company's actual results may differ significantly from the results discussed in such forward-looking statements. Factors that might cause such a difference include, but are not limited to, economic conditions, competition in the geographic and business areas in which the Company conducts operations, fluctuations in interest rates, credit quality, year 2000 data systems compliance, and government regulations. For additional information concerning these factors, see "Item 1. Business - Factors That May Affect Results" contained in the Company's Annual Report on Form 10K for the year ended December 31, 1998.
Professional Bancorp, Inc. and Subsidiary
Consolidated Balance Sheets
Selected Financial Data
in thousands
(unaudited)
December 31, December 31,
1999 1998
----------- -----------
Cash and cash equivalents 43,419 31,965
Securities available-for-sale 45,525 80,891
Securities held-to-maturity 18,200 24,081
Loans:
Commercial 124,403 93,952
Real estate secured commercial 27,538 11,698
Equity lines of credit 4,330 5,931
Other lines of credit 4,689 4,817
Installment 1,608 1,482
Lease financing --- 32
---------- ----------
Gross loans 162,568 117,912
Allowance for loan losses (5,873) (2,200)
Deferred loan fees, net (211) (193)
---------- -----------
Net Loans 156,484 115,519
---------- ----------
Other assets 9,692 7,245
---------- ----------
Total assets $ 273,320 $ 259,701
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Deposits:
Demand, noninterest-bearing $ 109,561 $ 109,422
Demand, interest-bearing 16,033 16,710
Savings and money market 84,783 75,501
Time deposits 45,651 28,948
---------- ----------
Total deposits 256,028 230,581
---------- ----------
Convertible notes 679 1,116
Accrued interest payable and
other liabilities 2,306 2,683
---------- ----------
Total liabilities 259,013 234,380
---------- ----------
Shareholders' equity 16,969 25,592
Unrealized loss on securities
available-for-sale, net of taxes (2,662) (271)
---------- ----------
Total shareholders' equity 14,307 25,321
---------- ----------
Total liabilities and shareholders' equity $ 273,320 $ 259,701
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Professional Bancorp, Inc. and Subsidiary
Consolidated Statements of Operations
in thousands (except share data)
(Unaudited)
Year Ended Year Ended
December 31, December 31,
1999 1998
------------ -----------
Total interest income 18,295 16,948
Total interest expense 3,413 3,629
---------- ----------
Net interest income 14,882 13,319
Provision for loan losses 13,993 406
---------- ----------
Net interest income after provision
for loan losses 889 12,913
---------- ----------
Other operating income 1,852 1,735
Other operating expenses 14,300 12,227
---------- ----------
Earnings (loss) before taxes (11,559) 2,421
Provision for income taxes
expense (benefit) (3,199) 989
---------- ----------
Net earnings (loss) $ (8,360) $ 1,432
=========== ==========
Earnings per share:
Basic $ (4.15) $ 0.81
Diluted $ (4.15) $ 0.74
December 31, December 31,
1999 1998
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Other Financial Information:
Total nonperforming assets $ 8,412 $ 1,631
Allowance for loan losses as a
percent of nonperforming loans 69.82% 161.88%
Nonperforming loans to total loans 5.17% 1.15%
Capital Ratios - Bank only
Leverage 4.63% 8.37%
Tier 1 risk based 7.85% 15.12%
Total risk based 9.13% 16.37%