-- Capital ratios in excess of all minimums required to be "Well
Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of
18.0% and a Total Risk-Based Capital Ratio of 25.0% at June 30, 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 June 30, 2010 increased to $109.2 million, an increase
of $35.5 million or 48% from June 30, 2009.
-- Total Loans at June 30, 2010 increased to $70.3 million, an increase of
$3.8 million or 6% from June 30, 2009.
-- Total Deposits at June 30, 2010 increased to $88.9 million, an increase
of $35.4 million or 66% from June 30, 2009.
-- Net Loss of $125,000 for the quarter ended June 30, 2010 versus a loss
of $859,000 for the comparable period of 2009, representing a reduction
of 85% or $734,000 from 2009 to 2010.
PROMÉRICA BANK reported a net loss of $125,000 for the second quarter of 2010 or 5 cents per share as compared to a net loss of $859,000 or 49 cents per share in the second quarter of 2009. This represents an 85% improvement from the same period in 2009. The Bank reported a net loss of $442,000 or 16 cents a share in the first six months of 2010 as compared to a loss of $1,711,000 or 62 cents a share in the first six months of 2009. Net income for the 2010 second quarter included a $42,000 gain on the sale of approximately $900,000 of SBA loans. The Allowance for Loan and Lease Losses represents 2.9% of total loans. Nonperforming assets, net of government guaranteed loans, totaled approximately $1.6 million, or 1.5% of assets at June 30, 2010. "We are pleased by the progress the Bank is making as it continues its strong growth in this challenging economy," stated John H. Quinn, President and CEO of PROMÉRICA BANK. "Our team continues to work hard to provide the highest levels of client service and convince prospects of what our team can do to help them build their companies. 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. We believe our strength and stability offer security for our clients in these uncertain times." "The Directors and I are pleased by the performance results of the executive management team led by John Quinn," asserted Maria Contreras-Sweet, Founding Chairwoman of PROMÉRICA BANK. "We remain steadfast on our strong growth path and are well positioned to continue to provide capital to the small to medium sized company market place. Challenges in the economy remain and will continue into 2010; however, we believe the challenges will also provide opportunities for prudent lending and expansion of our banking franchise." "We are also pleased to report that PROMÉRICA BANK continues to add top quality personnel to the team with the hiring of John Murillo, Vice President -- Senior Relationship Manager," added Ms. Contreras-Sweet. "John's client service style meshes well with our consultative approach to client service." 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)
June 30, March 31, December 31, June 30,
2010 2010 2009 2009
---------- ---------- ---------- ----------
Unaudited Unaudited Audited Unaudited
Assets:
Cash and Due From Banks $ 2,741 $ 1,202 $ 3,930 $ 1,371
Federal Funds Sold 26,205 18,805 11,875 0
Interest-bearing Balances
at Other Financial
Institutions 9,417 8,218 3,841 5,321
---------- ---------- ---------- ----------
Total Cash and Cash
Equivalents 38,363 28,225 19,646 6,692
---------- ---------- ---------- ----------
Loans Net of Deferred
Loan Fees/Costs 70,311 73,789 75,315 66,493
Allowance for Loan Losses 2,040 2,019 2,030 1,221
---------- ---------- ---------- ----------
Loans Net of Allowance
for Loan Losses 68,271 71,770 73,285 65,272
Premises and Equipment,
net 594 695 788 973
Federal Home Loan Bank
Stock 364 232 232 232
Other Real Estate Owned 390 422 0 0
Accrued Interest
Receivable and Other
Assets 1,257 1,348 1,403 571
---------- ---------- ---------- ----------
Total Assets $ 109,239 $ 102,692 $ 95,354 $ 73,740
---------- ---------- ---------- ----------
Liabilities:
Non-Interest-Bearing
Demand Deposits $ 22,760 $ 19,484 $ 17,134 $ 10,928
Interest-Bearing Demand
Deposits (NOW Deposits) 6,328 2,672 2,963 2,646
Savings and Money Market 17,525 16,646 13,834 12,756
Certificates of Deposit 42,298 42,815 42,245 27,136
---------- ---------- ---------- ----------
Total Interest-Bearing
Deposits 66,151 62,133 59,042 42,538
---------- ---------- ---------- ----------
Total Deposits 88,911 81,617 76,176 53,466
Other Borrowings 1,296 1,929 0 0
Accrued Interest Payable
and Other Liabilities 617 683 464 632
---------- ---------- ---------- ----------
Total Liabilities 90,824 84,229 76,640 54,098
Shareholders' Equity:
Common Stock 27,245 27,245 27,245 27,245
Additional Paid in
Capital 1,314 1,237 1,170 1,056
Accumulated Deficit (10,144) (10,019) (9,701) (8,659)
---------- ---------- ---------- ----------
Total Shareholders'
Equity 18,415 18,463 18,714 19,642
---------- ---------- ---------- ----------
Total Liabilities and
Shareholders' Equity $ 109,239 $ 102,692 $ 95,354 $ 73,740
---------- ---------- ---------- ----------
Tier 1 Leverage Ratio 18.0% 18.6% 21.0% 25.5%
Tier 1 Risk-based Capital
Ratio 23.7% 23.2% 25.0% 29.7%
Total Risk-based Capital
Ratio 25.0% 24.4% 26.2% 31.0%
PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Quarters Indicated
(Dollars in thousands except per share data)
June 30, March 31, December 31, June 30,
2010 2010 2009 2009
---------- ---------- ---------- ----------
Unaudited Unaudited Audited Unaudited
Interest Income:
Interest and Fees on
Loans $ 1,138 $ 1,188 $ 1,203 $ 982
Interest on Federal Funds
Sold 14 9 5 3
Interest on Balances at
Other Financial
Institutions 29 24 18 26
Dividends on FHLB and
PCBB Stock 0 0 0 4
---------- ---------- ---------- ----------
Total Interest Income 1,181 1,221 1,226 1,015
Interest Expense:
Interest on Deposit
Accounts 126 145 138 136
---------- ---------- ---------- ----------
Net Interest Income 1,055 1,076 1,088 879
Provision for Loan Losses 0 62 1,181 407
---------- ---------- ---------- ----------
Net Interest Income
After Provision for
Loan Losses 1,055 1,014 (93) 472
Non-Interest Income:
Non-Interest Income 103 33 30 34
Non-Interest Expense:
Salaries and Employee
Benefits 623 736 713 755
Stock Based Compensation
Expense 76 67 68 74
Occupancy Expense 221 219 226 232
Operating Expense 362 342 288 304
---------- ---------- ---------- ----------
Total Non-Interest
Expense 1,282 1,364 1,295 1,365
Net Loss from Bank
Operations (124) (317) (1,358) (859)
---------- ---------- ---------- ----------
Pre-tax Net Loss (124) (317) (1,358) (859)
Provision for Income Taxes 1 0 1 0
Net Loss $ (125) $ (317) $ (1,359) $ (859)
---------- ---------- ---------- ----------
Loss per share - basic
and diluted loss per
share $ (0.05) $ (0.12) $ (0.49) $ (0.31)
---------- ---------- ---------- ----------
PROMÉRICA BANK STATEMENTS OF OPERATIONS
For the Year-to-Date Periods Indicated
(Dollars in thousands except per share data)
June 30, June 30,
2010 2009
---------- ----------
Unaudited Unaudited
Interest Income:
Interest and Fees on Loans $ 2,326 $ 1,850
Interest on Federal Funds Sold 23 8
Interest on Balances at Other Financial
Institutions 53 52
Dividends on FHLB Stock 0 5
---------- ----------
Total Interest Income 2,402 1,915
Interest Expense:
Interest on Deposit Accounts 271 310
---------- ----------
Net Interest Income 2,131 1,605
Provision for Loan Losses 62 636
---------- ----------
Net Interest Income After Provision
for Loan Losses 2,069 969
Non-Interest Income:
Non-Interest Income 136 67
Non-Interest Expense:
Salaries and Employee Benefits 1,359 1,527
Stock Based Compensation Expense 143 152
Occupancy Expense 440 457
Operating Expense 704 611
---------- ----------
Total Non-Interest Expense 2,646 2,747
Net Loss from Bank Operations (441) (1,711)
---------- ----------
Pre-tax Net Loss (441) (1,711)
Provision for Income Taxes 1 0
Net Loss $ (442) $ (1,711)
---------- ----------
Loss per share - basic and diluted loss
per share $ (0.16) $ (0.62)
---------- ----------
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