LOS ANGELES, CA--(Marketwired - Apr 25, 2013) - ProAmérica Bank (
2013 First Quarter Highlights
- Three-month Net Income of $97,000, compared to $238,000 in the prior year first quarter.
- Total Assets at March 31, 2013 totaled $156.9 million, an increase of $28.7 million or 22% from March 31, 2012.
- Total Loans at March 31, 2013 declined to $102.3 million, a decrease of $3.0 million or 3% from March 31, 2012.
- Total Deposits at March 31, 2013 increased to $133.0 million, an increase of $27.8 million or 26% from March 31, 2012.
- Nonperforming loans to total loans declined to 2.3% at March 31, 2013, as compared to 10.8% at March 31, 2012.
- Capital ratios are in excess of all minimums required to be "Well Capitalized", with a Tier 1 Leverage Ratio of 15.0% and a Total Risk-Based Capital Ratio of 20.5% at March 31, 2013. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.
"The Bank has continued to perform with its ninth quarter of profitability out of the past ten quarters," stated L. Bruce Mills, Jr., President and CEO. "We saw dramatic improvement in asset quality with nonperforming assets dropping to $2.3 million at March 31, 2013 versus $11.4 million a year ago. This was achieved without significant losses and will increase the Bank's interest income going forward," continued Mills.
Executive Chairwoman Maria Contreras-Sweet commented, "Our first quarter results continue to demonstrate sustained profits and a strong balance sheet. Our asset quality has stabilized, we have strong capital and we have ample liquidity to fund our increasing loan growth. Our focus is on balancing growth with profitability as we continue to work towards our mission of serving the financial needs of businesses in the greater Los Angeles market area with an emphasis on Hispanic businesses. I am pleased, that after completing his term as Chairman of USC, Edward P. Roski, Jr. will return to the Board of Directors of ProAmérica Bank. Mr. Roski was a founding Board member and shareholder. Mr. Roski's return reflects the continued commitment he has to the Bank's mission and the confidence he has in the Bank's progress to date." Mr. Roski's appointment is subject to regulatory approval.
The adjusted loss from operations (income before provisions for loan losses and income taxes) was $203,000 for the first quarter of 2013, as compared to adjusted income of $238,000 for the same period in 2012. Management believes adjusted income from operations is a better measure of core earnings performance. The decline in adjusted earnings is discussed below.
Net Interest Income before the Provision for Loan Losses decreased $153,000 for the first quarter of 2013 compared to the 2012 first quarter. The Net Interest Margin declined to 3.6% for the quarter ended March 31, 2013, down from 4.6% for the 2012 first quarter. The decline was due to the decline in average loans compared to the previous year. Loan production for the first quarter of 2013 was $11.8 million in 2013 compared to $4.0 million in the same period of 2012. The Bank had several large loans pay down in the fourth quarter of 2012. Average loans represented 66.4% of average earning assets in the first quarter of 2013 versus 83.4% of loans for the same period in 2012."We saw good loan production in the first quarter of 2013 and we have a good pipeline of loans for the second quarter of 2013," stated Mills. "This, along with the large number of loans returning to performing status bodes well for increasing Net Interest Margin future quarters," continued Mills.
The Bank recorded a negative Provision for Loan Losses of $300,000 in the first quarter of 2013 due to the significant improvement in the level of nonperforming loans at March 31, 2013. There was no Provision for Loan Losses required in the same quarter of 2012. The Bank had a small amount of net recoveries in the first quarters of 2013 and 2012.
Non-interest Income declined $44,000, or 30%, in 2013 as compared to 2012 as a result of a lower volume of SBA loans sold. "The Bank has a good number of SBA loans in the pipeline that we expect to originate and sell in the second quarter of 2013, which should bring non-interest income back to expected levels," stated Mills.
First quarter 2013 Non-interest Expense was $1,631,000, compared with $1,387,000 for the 2012 first quarter, an increase of $244,000, or 18%. Increases in Salaries and Employee Benefits and Stock Based Compensation expenses were $146,000 of the increase while Occupancy Expense contributed $28,000 and Other Operating Expense contributed $70,000 to the increase. "We have invested in additional personnel and marketing programs to support continued growth of the Bank and believe these investments will mean improved profitability in the future," commented Mills.
Loans, before the allowance for loan losses, declined 3% to $102.3 million at March 31, 2013, compared to $105.3 million at March 31, 2012. "Loans increased $5.8 million during the first quarter of 2013, as compared to December 31, 2012, due to the strong loan production in the first quarter," commented Mr. Mills.
Total Deposits increased 26% to $133.0 million at March 31 2013, from $105.2 million at March 31, 2012. Several of the Bank's larger depositors are required by law to have their deposits fully insured. The demise of the U.S. Treasury's Transaction Account Guarantee Program on December 31, 2012 resulted in the loss of unlimited FDIC insurance on demand deposit accounts. In December 2012, clients requiring insured deposits transferred approximately $30 million from demand deposit accounts to reciprocal money market and certificate of deposit products at the Bank, which allow for full FDIC insurance. The Bank has continued to maintain a low cost of funds at 0.39%, slightly higher than the 0.32% level a year ago.
Nonperforming Assets (the sum of loans past due 90 days and accruing, nonaccrual loans and other real estate owned) decreased to 1.5% of total assets at March 31, 2013, compared with 8.9% at March 31, 2012. All of the nonaccrual loans are current in their payments.
The Allowance for Loan Losses was $2.6 million, or 2.5% of loans, at March 31, 2013, compared with $3.1 million, or 2.9% of loans, at March 31, 2012. Net recoveries were nominal in the first quarters of 2013 and 2012. The Bank had no loans 30 days or more delinquent as of March 31, 2013.
Total Shareholders' Equity increased to $22.8 million at March 31, 2013 from $21.8 million at March 31, 2012. The Bank's book value available to common shareholders per common share increased to $6.91 at March 31, 2013, up from $6.57 at March 31, 2012.
At March 31, 2013, the Bank's Tier 1 Leverage Capital Ratio was 15.0% versus 16.8% at March 31, 2012. The Total Risk-based Capital Ratio was 20.5% as of March 31, 2013 and March 31, 2012.
ProAmérica Bank provides a full range of financial services, including credit and deposit products, SBA loan products, cash management, and internet banking for businesses, professionals, nonprofits and high net worth individuals from its headquarters office at 888 West Sixth Street, Second Floor, Los Angeles, CA 90017-2728. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank's website at www.PROAMERICABANK.com.
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 ProAmérica 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: ProAmérica 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 ProAmérica 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 ProAmérica Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
|PROAMÉRICA BANK BALANCE SHEETS|
|(Dollars in thousands)|
|March 31,||March 31,||%|
|Cash and Due From Banks||$||1,481||$||2,051||-27.79||%|
|Federal Funds Sold||44,975||14,165||217.51||%|
|Interest-bearing Balances at Other Financial Institutions||7,708||6,586||17.04||%|
|Total Cash and Cash Equivalents||54,164||22,802||137.54||%|
|Loans Net of Deferred Loan Fees/Costs||102,298||105,312||-2.86||%|
|Allowance for Loan Losses||2,575||3,076||-16.29||%|
|Loans Net of Allowance for Loan Losses||99,723||102,236||-2.46||%|
|Premises and Equipment, net||1,017||1,106||-8.05||%|
|Federal Home Loan Bank Stock||515||418||23.21||%|
|Other Real Estate Owned||0||0||NA|
|Accrued Interest Receivable and Other Assets||1,471||1,642||-10.41||%|
|Noninterest-bearing Demand Deposits||$||23,164||$||33,664||-31.19||%|
|Interest-bearing Demand Deposits (NOW Deposits)||2,264||3,354||-32.50||%|
|Savings and Money Market||47,190||22,226||112.32||%|
|Certificates of Deposit||60,424||45,965||31.46||%|
|Total Interest-bearing Deposits||109,878||71,545||53.58||%|
|Accrued Interest Payable and Other Liabilities||1,097||1,167||-6.00||%|
|Additional Paid in Capital||1,741||1,716||1.46||%|
|SBLF Preferred Stock||3,750||3,750||0.00||%|
|Total Shareholders' Equity||22,751||21,828||4.23||%|
|Total Liabilities and Shareholders' Equity||$||156,890||$||128,204||22.38||%|
|Tier 1 leverage||14.98||%||16.75||%|
|Tier 1 risk-based capital||19.25||%||19.28||%|
|Total risk-based capital||20.52||%||20.54||%|
|PROAMÉRICA BANK STATEMENT OF OPERATIONS|
|For the Periods Indicated|
|(Dollars in thousands except per share data)|
|For The Period Ended March 31,||2013||2012||% Change|
|Interest and Fees on Loans||$||1,407||$||1,554||-9.46||%|
|Interest on Federal Funds Sold||24||7||242.86||%|
|Interest on Balances at Other Financial Institutions||11||16||-31.25||%|
|Dividends on FHLB and PCBB Stock||3||1||200.00||%|
|Total Interest Income||1,445||1,578||-8.43||%|
|Interest on Deposit Accounts||121||101||19.80||%|
|Net Interest Income||1,324||1,477||-10.36||%|
|Provision (Negative Provision) for Loan Losses||(300||)||0||NA|
|Net Interest Income After Provision for Loan Losses||1,624||1,477||9.95||%|
|Salaries and Employee Benefits||976||852||14.55||%|
|Stock Based Compensation Expense||33||11||200.00||%|
|Total Non-Interest Expense||1,631||1,387||17.59||%|
|Provision for Income Taxes||0||0||NA|
|Earnings Per Share - Basic and Diluted||$||0.04||$||0.09||-59.24||%|
|PROAMÉRICA BANK FINANCIAL HIGHLIGHTS|
|For the Periods Indicated|
|(Dollars in thousands except share data)|
|For The Period Ended March 31,||2013||2012||% Change|
|Net income, basic and diluted||$||0.04||$||0.09||-59.24||%|
|Book value - Common||$||6.91||$||6.57||5.18||%|
|Common Shares Outstanding|
|End of period||2,751,000||2,750,000||0.04||%|
|Average for period||2,751,000||2,750,000||0.04||%|
|Return on average assets||0.26||%||0.73||%||-64.38||%|
|Return on average common equity||2.05||%||5.26||%||-61.03||%|
|Net interest margin||3.63||%||4.59||%||-20.92||%|
|Capital Adequacy Ratios (Period-end):|
|Tier 1 leverage||14.98||%||16.75||%||-10.57||%|
|Tier 1 risk-based capital||19.25||%||19.28||%||-0.16||%|
|Total risk-based capital||20.52||%||20.54||%||-0.10||%|
|Asset Quality Ratios:|
|Allowance for loan and lease losses to total loans||2.52||%||2.92||%||-13.70||%|
|Allowance for loan and lease losses to nonaccrual loans||111.10||%||27.10||%||309.96||%|
|Nonperforming loans to total loans||2.27||%||10.78||%||-78.94||%|
|Nonperforming assets to total assets||1.48||%||8.85||%||-83.28||%|
|Net charge-offs (recoveries) to average loans (annualized)||-0.02||%||-0.01||%||100.00||%|
|Asset Quality Measures:|
|Nonaccrual loans (1)||2,318||11,350||-79.58||%|
|Other real estate owned||0||0||NA|
|Total nonperforming assets||2,318||11,350||-79.58||%|
|(1) Nonaccrual loans less than 30 days past due||2,318||7,185||-67.74||%|