SANTA MONICA, Calif., May 1, 2000 (PRIMEZONE) -- Professional Bancorp, Inc. (AMEX:MDB), the holding company for First Professional Bank, N.A., today reported net income of $11,000, on total interest income of $5,044,000 for the first quarter ended March 31, 2000, compared with net income of $336,000, or $0.17 per share, on total interest income of $4,321,000 for the comparable period a year ago.
Gene Gaines, chairman and chief executive officer, said, "We are very proud of our first quarter results, as they reverse the losses of the fourth quarter of 1999. Equally important, our performance for the quarter provides evidence that our new management team's strategy to return the company to a solid and profitable footing is the correct course."
He noted that net interest income of $4,035,000 for the quarter represents a record sum. "It is particularly noteworthy that net interest income for the quarter was up 16 percent over the same period a year ago, while non-interest expense increased only 2 percent," Gaines said.
He also pointed out that, "Pre-tax core earnings prior to the loan loss provision were $1,104,000 for the quarter, compared with $694,000 for the same period last year -- representing an increase of 59 percent." He noted that due to the bank's continued concern over its concentration of large loans and classified credits, it was prudent to add $1,093,000 to the loan loss reserve, resulting in net income of $11,000.
Gaines indicated that the company continues to be in active discussions with potential strategic partners. 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.
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, 1999.
Professional Bancorp, Inc. and Subsidiary
Consolidated Balance Sheets
Selected Financial Data
in thousands
(unaudited)
March 31, December 31,
2000 1999
Cash and cash equivalents $ 66,113 $ 43,419
Securities available-for-sale 45,949 45,525
Securities held-to-maturity 17,519 18,200
Loans:
Commercial 119,115 124,403
Real estate secured commercial 28,358 27,538
Equity lines of credit 3,614 4,330
Other lines of credit 2,920 4,689
Installment 1,502 1,608
Lease financing -- --
Gross loans 155,509 162,568
Allowance for loan losses (6,984) (5,873)
Deferred loan fees, net (186) (211)
Net Loans 148,339 156,484
Other assets 9,851 9,862
Total assets $ 287,771 $ 273,490
Deposits:
Demand, noninterest-bearing $ 115,129 $ 109,560
Demand, interest-bearing 15,787 16,033
Savings and money market 94,044 84,783
Time deposits 45,583 45,651
Total deposits 270,543 256,027
Convertible notes 679 679
Accrued interest payable and
other liabilities 1,865 1,916
Total liabilities 273,087 258,622
Shareholders' equity 17,541 17,530
Unrealized loss on securities
available-for-sale, net of taxes (2,857) (2,662)
Total shareholders' equity 14,684 14,868
Total liabilities and
shareholders' equity $ 287,771 $ 273,490
Professional Bancorp, Inc. and Subsidiary
Consolidated Statements of Operations
in thousands (except share data)
(Unaudited)
March 31, March 31,
2000 1999
Total interest income $ 5,044 $ 4,321
Total interest expense 1,009 849
Net interest income 4,035 3,472
Provision for loan losses 1,093 125
Net interest income after provision
for loan losses 2,942 3,347
Other operating income 437 516
Other operating expenses 3,368 3,294
Earnings (loss) before taxes 11 569
Provision for income
taxes expense (benefit) 0 233
Net earnings (loss) $ 11 $ 336
Earnings per share:
Basic $ 0.00 $ 0.17
Diluted $ 0.00 $ 0.16
March 31, December 31,
2000 1999
Other Financial Information:
Total nonperforming assets $ 9,884 $ 8,412
Allowance for loan losses as
a percent of nonperforming loans 70.66% 69.82%
Nonperforming loans to gross loans 6.36% 5.17%
Capital Ratios - Bank only
Leverage 4.85% 4.81%
Tier 1 risk based 8.55% 8.18%
Total risk based 9.83% 9.46%
CONTACT: Gene Gaines
Chairman & Chief Executive Officer
First Professional Bank
(310) 458-1521
Gary S. Maier/ Steven D. Stern
Pondel/Wilkinson Group
(310) 207-9300