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2008 Second Quarter Results Reported by Promerica Bank |
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August 20, 2008 |
PROMÉRICA BANK Reports 2008 Second Quarter Results
Los Angeles, CA.--PROMÉRICA BANK (OTCBB: PMRA) today reported results for its 2008 second quarter of operations that were highlighted by growth of total assets to $71.9 million, growth of the loan portfolio to $51.3 million and an increase in deposits to $48.7 million.
At June 30, 2008, total assets were $71.9 million, an increase of $32.7 million, or 83% from June 30, 2007. Deposits grew $34.8 million, or 250% from June 30, 2007. Loan growth of $34.4 million, or 204% over the year ago balance represented a solid increase in the Bank’s loan portfolio.
“In the second quarter of 2008, PROMÉRICA BANK experienced strong loan growth and continued to build its deposit portfolio,” said Eloy U. Ortega, President and CEO. “We are continuing to see challenging economic conditions in southern California and an increasingly competitive environment for loans and deposits; however, in response to these issues, we have enhanced our infrastructure, and combined with our capital and second quarter 2008 momentum, we believe we are prepared for continued growth and improved results for 2008 and beyond. I am pleased to report that PROMÉRICA BANK is financially sound. PROMÉRICA BANK has significantly stronger capital ratios than most banks and we have a much higher percentage of liquidity than most banks. We have not invested in the types of loans or securities that are the root cause of problems in banking you have seen in the news”.
Total capital at the end of March 31, 2008 was $22.6 million. The Bank’s Tier 1 Leverage Ratio of 31% exceeds all regulatory requirements and guidelines to be “well capitalized.”
The loss for the second quarter of 2008 was $661,000, or $0.24 per share, compared to $871,000, or $0.32 for the second quarter of 2007 reflecting higher net interest income partly offset by a higher loan loss provision and higher operating expenses. The loss for the six-month period ended June 30, 2008 was $1,322,000 or $0.48 per share compared with a loss of $1,435,000, or $0.52 per share for the six-months ended June 30, 2007.
The allowance for loan losses was $603,000 at June 30, 2008. The ratio of the allowance for loan losses to total loans was 1.17% at June 30, 2008, which compared favorably to industry standards. The Bank continued to have sound asset quality with nonperforming loans to total loans of 0.28%.
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 forward-looking statements about the Bank for which the Bank claims the protection of the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are based on management's knowledge and belief as of today and include information concerning the Bank's possible or assumed future financial condition, and its results of operations, business and earnings outlook. These forward-looking statements are subject to risks and uncertainties. A number of factors, some of which are beyond the Bank's ability to control or predict, could cause future results to differ materially from those contemplated by such forward-looking statements. These factors include (1) changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or regulatory agencies, (2) changes in interest rates, (3) significant changes in banking laws or regulations, (4) increased competition in the Bank's markets, (5) other-than-expected credit losses due to real estate cycles or other economic events, (6) earthquake or other natural disasters affecting the condition of real estate collateral or the business environment. In addition, Management cannot predict at this time the extent of the recent economic downturn, and a slowing or worsening could adversely affect our performance in a number of ways, including decreased demand for our products and services and increased credit losses. Likewise, changes in deposit interest rates, among other things, could slow the rate of growth or put pressure on current deposit levels. Forward-looking statements speak only as of the date they are made, and the Bank does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the statements are made.
Contact:
PROMÉRICA Bank
Maria Contreras-Sweet, Chairwoman
213.787.2802
Eloy U. Ortega, CEO / President
213.787.2803
Frank E. Smith, CFO
213.787.2804
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Press Release Summary
PROMERICA BANK today reported results for its 2008 second quarter.
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