LOS ANGELES, Jan. 14, 2000 (PRIMEZONE) -- Professional Bancorp, Inc. (AMEX:MDB) today announced that its subsidiary, First Professional Bank, NA, will record a loss for the fourth quarter and year ended December 31, 1999.
The company said that in addition to the charges announced in the third quarter, it has increased its loan loss provision by at least $2.7 million for the fourth quarter and may need to increase it further at the completion of the credit review. These additions to the reserve will be a substantial component of the anticipated loss. The company also said it plans to release its audited year end results by the end of February 2000.
Gene F. Gaines, chief executive officer, said "The additional charge is not reflective of new loan problems, but rather the result of in-depth analysis of the quality of substandard loans. Management believes that bolstering reserves is also prudent in light of certain adverse trends, particularly restrictions on reimbursement which are impacting the medical services industry."
Mr. Gaines stated that "While it is quite difficult to foresee the future, it appears at this point that we have a more thorough understanding of our problem loan issues and we can move forward with our strategy to return the bank to profitability. To this end, we have made two significant additions to our senior management team."
Robert Dyck has been named Senior Vice President of Credit Administration and David Carrington has been named Senior Vice President of the Special Assets Group. Together these executives bring nearly 60 years of experience to First Professional Bank in credit administration and loan workouts. "We look forward to their strong contribution which without a doubt will complement and strengthen our lending efforts," said Gaines.
Prior to joining First Professional Bank, Mr. Dyck was Senior Vice President and Senior Credit Officer of Santa Monica/Western Bank in Santa Monica, CA. Earlier, he was Vice President and Region Credit Administrator for Sanwa Bank California and a manager and senior consultant at Deloitte & Touche in Los Angeles.
Mr. Carrington was most recently Vice President and Senior Special Assets Officer at Bank of America in Los Angeles, California. Earlier in his career he served as Senior Credit Officer and Director of Bank of America, Australia, Ltd.
Professional Bancorp also announced the appointment of Moss Adams LLP as its independent auditor. Moss Adams is the 13th largest public accounting firm in the U.S. and the largest such firm headquartered in the western United States.
The company also said it has continued its retention of a financial advisor to explore strategic alternatives and is in discussions with a potential acquirer.
Professional Bancorp, Inc., based in Santa Monica, California, is a holding company whose subsidiary, First Professional Bank NA, is a commercial bank that provides a variety of financial services and products to the health care community. The bank's majority owned subsidiary, Professional Bancorp Mortgage, Inc., provides retail and commercial mortgage brokerage products and services.