2013-02-28 20:31:22 -
LOS ANGELES, CA -- (Marketwire) -- 02/28/13 -- ProAmérica Bank (OTCQB: PMRA) today reported Net Income of $1,037,000, or 37 cents per share diluted for the year ended December 31, 2012. For the fourth quarter of 2012, the Bank reported Net Income of $314,000, or 11 cents per share diluted. Total assets increased 19% to $154.1 million as of December 31, 2012, as compared to the prior year. "With a strong fourth quarter performance, ProAmérica Bank has achieved profitability for eight of the past nine quarters and we look forward to continuing that trend," stated L. Bruce Mills, Jr., President and CEO. "Our focus on fundamentals has paid off. Our net income was achieved without reversal of loan loss provisions or deferred tax assets, and our reduction in non-performing assets positions us well as we begin 2013," continued Mills.
"I am pleased to report 2012 was a defining year for ProAmérica Bank," announced Executive Chairwoman Maria Contreras-Sweet. "After six years of consolidated effort, we have turned the corner on profitability. Our systems are optimized, our people are energized, and our Bank is well capitalized... all of which has yielded our first complete year of profitability. I am grateful to the Board and shareholders for remaining focused on our vision and steadfast in making our mission a reality. Together with our clients we have built a strong foundation from which to support our founding principles of empowering local businesses. Our success provides us a solid platform to move the Bank forward and grow it in new ways that better serve our community and reward our shareholders."
The Bank also announced that on February 22, 2013, it completed the sale of its only other real estate owned property reducing nonperforming assets by $3,900,000.
2012 Fourth Quarter/Annual Highlights
- Three-month Net Income of $314,000, compared to a loss of $1,369,000 in the prior year fourth quarter.
- Total Assets at December 31, 2012 totaled $154.1 million, an increase of $25.0 million or 19% from December 31, 2011.
- Total Loans at December 31, 2012 declined to $96.5 million, a decrease of $10.4 million or 10% from December 31, 2011.
- Total Deposits at December 31, 2012 increased to $130.3 million, an increase of $24.6 million or 23% from December 31, 2011.
- Capital ratios are in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 14.9% and a Total Risk-Based Capital Ratio of 21.0% at December 31, 2012. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.
Financial Results
Adjusted income from operations (income before provisions for loan losses and income taxes) was $315,000 for the fourth quarter of 2012, as compared to a loss of $91,000 for the same period in 2011. Management believes adjusted income from operations is a better measure of core earnings performance.
For the 2012 fourth quarter, Net Interest Income before the Provision for Loan Losses increased $141,000 compared to the 2011 fourth quarter. The Net Interest Margin declined to 3.9% for the quarter ended December 31, 2012, down from 4.0% for the 2011 fourth quarter. The decline is due to the decline in loans compared to the previous year. The Bank had several large loans pay down in the fourth quarter of 2012. Management expects loan growth to resume in the first quarter of 2013.
There was no Provision for Loan Losses required in the fourth quarter of 2012, compared to $1,278,000 for the fourth quarter of 2011. The Bank had no loan charge-offs in the fourth quarter of 2012. Net charge-offs to average loans outstanding was only 0.20% for the year ended December 31, 2012, compared to 0.57% the prior year. Nonaccrual loans declined 51% to $5.6 million as of December 31, 2012, compared to the prior year end.
Non-interest Income increased $259,000, or 617% in the fourth quarter 2012 versus 2011 as a result of a higher volume of SBA loans sold.
Non-interest Expense for the 2012 fourth quarter was $1,406,000, compared with $1,412,000 for the 2011 fourth quarter. An increase in Salaries and Employee Benefits expense was offset by lower Operating Expense and Occupancy Expense. Occupancy expense was reduced by over $300,000 in 2012 as a result of the Bank's relocation of its headquarters in December 2011. The efficiency ratio was 81.7% for the 2012 fourth quarter, compared with 106.9% for the same period last year.
Loans, before the allowance for loan losses, declined 10% to $93.6 million at December 31, 2012, compared to $103.8 million at December 31, 2011. Other Real Estate Owned increased to $3.9 million in 2012 as a result of the foreclosure of a single loan in April 2012. The property closed escrow on February 22, 2013. There was no Other Real Estate Owned in 2011.
Total Deposits increased 23% to $130.3 million at December 31 2012, from $105.8 million at December 31, 2011. 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.
Asset Quality
Nonperforming Assets (the sum of loans past due 90 days and accruing, nonaccrual loans and other real estate owned) decreased to 6.2% of total assets at December 31, 2012, compared with 8.8% at December 31, 2011. All of the nonaccrual loans are current in their payments. The Bank sold its only other real estate owned on February 22, 2013 at a small loss. Had this sale occurred as of December 31, 2012, the ratio of Nonperforming Assets to total assets would have been 3.6%.
The Allowance for Loan Losses was $2.9 million, or 3.0% of loans, at December 31, 2012, compared with $3.1 million, or 2.9% of loans, at December 31, 2011. There were no net loan charge-offs for the 2012 fourth quarter as compared to 1.3% of loans for the 2011 fourth quarter.
"Reducing the level of nonperforming loans remains a key focus of management" stated Mills. He continued, "These nonaccrual loans are all the result of troubled debt restructurings, not defaults due to failure to make their loan payments as agreed. The Bank had no loans 30 days or more delinquent as of December 31, 2012."
Capital Resources
Total Shareholders' Equity increased to $22.6 million at December 31, 2012 from $21.6 million at December 31, 2011. The Bank's book value available to common shareholders per common share increased to $6.86 at December 31, 2012 from $6.49 at December 31, 2011.
At December 31, 2012, the Bank's Tier 1 Leverage Capital Ratio was 14.9% versus 16.5% at December 31, 2011. The Total Risk-based Capital Ratio was 21.0% as of December 31, 2012, as compared to 20.2% at December 31, 2011.
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 :
ctt.marketwire.com/?release=991649&id=2684809&type=1& .. .
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 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)
December 31, December 31, %
2012 2011 Change
------------ ------------ ------
Unaudited Audited
Assets:
Cash and Due From Banks $ 2,440 $ 2,355 3.61%
Federal Funds Sold 43,390 9,935 336.74%
Interest-bearing Balances at Other
Financial Institutions 7,701 9,902 -22.23%
------------ ------------ ------
Total Cash and Cash Equivalents 53,531 22,192 141.22%
------------ ------------ ------
Loans Net of Deferred Loan Fees/Costs 96,467 106,860 -9.73%
Allowance for Loan Losses 2,869 3,074 -6.67%
------------ ------------ ------
Loans Net of Allowance for Loan
Losses 93,598 103,786 -9.82%
Premises and Equipment, net 1,034 918 12.64%
Federal Home Loan Bank Stock 515 418 23.21%
Other Real Estate Owned 3,920 0 NA
Accrued Interest Receivable and Other
Assets 1,497 1,802 -16.93%
------------ ------------ ------
Total Assets $ 154,095 $ 129,116 19.35%
------------ ------------ ------
Liabilities:
Non-Interest-Bearing Demand Deposits $ 26,443 $ 31,789 -16.82%
Interest-Bearing Demand Deposits (NOW
Deposits) 2,262 3,585 -36.90%
Savings and Money Market 46,686 22,649 106.13%
Certificates of Deposit 54,953 47,732 15.13%
------------ ------------ ------
Total Interest-Bearing Deposits 103,901 73,966 40.47%
------------ ------------ ------
Total Deposits 130,344 105,755 23.25%
Other Borrowings 0 0 0.00%
Accrued Interest Payable and Other
Liabilities 1,121 1,774 -36.81%
------------ ------------ ------
Total Liabilities 131,465 107,529 22.26%
Shareholders' Equity:
Common Stock 27,248 27,245 0.01%
Additional Paid in Capital 1,717 1,714 0.18%
Accumulated Deficit (10,085) (11,122) -9.32%
SBLF Preferred Stock 3,750 3,750 0.00%
------------ ------------ ------
Total Shareholders' Equity 22,630 21,587 4.83%
------------ ------------ ------
Total Liabilities and Shareholders'
Equity $ 154,095 $ 129,116 19.35%
------------ ------------ ------
Tier 1 leverage 14.88% 16.52%
Tier 1 risk-based capital 19.71% 18.97%
Total risk-based capital 20.97% 20.24%
PROAMÉRICA BANK STATEMENT OF OPERATIONS
For the Periods Indicated
(Dollars in thousands except per share data)
Three Months Twelve Months
------------------------------ --------------------------
For The Period
Ended December %
31, 2012 2011 % Change 2012 2011 Change
--------- --------- --------- --------- ------- -------
Unaudited Unaudited Unaudited Audited
Interest Income:
Interest and
Fees on Loans $ 1,492 $ 1,357 9.95% $ 6,072 $ 5,778 5.09%
Interest on
Federal Funds
Sold 23 11 109.09% 57 44 29.55%
Interest on
Balances at
Other
Financial
Institutions 12 17 -29.41% 45 77 -41.56%
Dividends on
FHLB and PCBB
Stock 8 0 NA 14 1 1300.00%
--------- --------- --------- --------- ------- -------
Total
Interest
Income 1,535 1,385 10.83% 6,188 5,900 4.88%
Interest Expense:
Interest on
Deposit
Accounts 115 106 8.49% 424 402 5.47%
--------- --------- --------- --------- ------- -------
Net Interest
Income 1,420 1,279 11.02% 5,764 5,498 4.84%
Provision for
Loan Losses 0 1,278 -100.00% 0 1,544 -100.00%
--------- --------- --------- --------- ------- -------
Net Interest
Income After
Provision for
Loan Losses 1,420 1 141900.00% 5,764 3,954 45.78%
Non-Interest
Income:
Non-Interest
Income 301 42 616.67% 758 604 25.50%
Non-Interest
Expense:
Salaries and
Employee
Benefits 855 699 22.32% 3,364 3,015 11.58%
Stock Based
Compensation
Expense 12 67 -82.09% 41 276 -85.14%
Occupancy
Expense 150 254 -40.94% 566 921 -38.55%
Operating
Expense 389 392 -0.77% 1,513 1,259 20.17%
--------- --------- --------- --------- ------- -------
Total Non-
Interest
Expense 1,406 1,412 -0.42% 5,484 5,471 0.24%
Pre-tax Income
(Loss) 315 (1,369) -123.01% 1,038 (913) -213.69%
Provision for
Income Taxes 1 0 NA 1 1 0.00%
Net Income
(Loss) $ 314 $ (1,369) -122.94% $ 1,037 $ (914) -213.46%
--------- --------- --------- --------- ------- -------
Earnings (Loss)
per share -
basic $ 0.11 $ (0.50) -122.94% $ 0.38 $ (0.33) -213.46%
--------- --------- --------- --------- ------- -------
Earnings (Loss)
per share -
diluted $ 0.11 $ (0.50) -122.81% $ 0.37 $ (0.33) -212.84%
--------- --------- --------- --------- ------- -------
PROAMÉRICA BANK FINANCIAL HIGHLIGHTS
For the Periods Indicated
(Dollars in thousands except per share data)
Three Months Twelve Months
------------------------------- -------------------------------
For The
Period
Ended
December % %
31, 2012 2011 Change 2012 2011 Change
---------- ---------- ------- ---------- ---------- -------
Unaudited Unaudited Unaudited Unaudited
Per Share:
Net income
(Loss),
basic $ 0.11 $ (0.50) -122.94% $ 0.38 $ (0.33) -213.46%
Net income
(Loss),
diluted $ 0.11 $ (0.50) -122.81% $ 0.37 $ (0.33) -212.84%
Book value
- Common $ 6.86 $ 6.49 5.70%
Common
Shares
Outstanding
End of
period 2,751,000 2,750,000 0.04% 2,751,000 2,750,000 0.04%
Average
for
period 2,751,000 2,750,000 0.04% 2,750,604 2,750,000 0.02%
Financial
Ratios:
Performance
Ratios:
Return on
average
assets 0.83% -4.19% -119.81% 0.74% -0.75% -198.67%
Return on
average
common
equity 6.65% -28.44% -123.38% 5.61% -4.84% -215.91%
Net
interest
margin 3.89% 3.95% -1.52% 4.27% 4.54% -5.95%
Efficiency
ratio 81.65% 106.89% -23.61% 84.10% 89.66% -6.20%
Capital
Adequacy
Ratios
(Period-
end):
Tier 1
leverage 14.88% 16.52% -9.93%
Tier 1
risk-
based
capital 19.71% 18.97% 3.90%
Total
risk-
based
capital 20.97% 20.24% 3.61%
Asset
Quality
Ratios:
Allowance
for loan
and lease
losses to
total
loans 2.97% 2.87% 3.48%
Allowance
for loan
and lease
losses to
nonaccrual
loans 51.14% 27.07% 88.92%
Nonperforming
loans to
total
loans 5.82% 10.63% -45.25%
Nonperforming
assets to
total
assets 6.19% 8.80% -29.66%
Net
charge-
offs
(recoveries)
to average
loans
(annualized) -0.02% 1.31% -101.53% 0.20% 0.57% -64.91%
Asset
Quality
Measures:
Nonaccrual
loans (1) 5,611 11,358 -50.60%
Other real
estate
owned 3,920 0 NA
---------- ---------- -------
Total
non-
performing
assets 9,531 11,358 -16.09%
(1) Nonaccrual
loans
less than
30 days
past due 5,611 6,143 -8.66%
Contact:
ProAmerica Bank
Maria Contreras-Sweet
Chairwoman
213.787.2802
L. Bruce Mills, Jr.
CEO / President
213.787.2803
Frank E. Smith
CFO
213.787.2804
