ProAmerica Bank Reports 2015 Fourth Quarter and Year Results
(firmenpresse) - LOS ANGELES, CA -- (Marketwired) -- 02/12/16 -- ProAmérica Bank (OTCQB: PMRA) today reported Net Income for the fourth quarter of 2015 of $85,000, or $0.03 per diluted common share. Net Income was $551,000, or $0.17 per diluted common share for the year ended December 31, 2015. Total assets increased 11% to $183.6 million as of December 31, 2015, as compared to the prior year. "We are pleased that the Bank had strong growth in our deposits and loans during the period," stated Sal Varela, Interim President and CEO, "We continue to increase our customer accounts and grow our relationships in the business community."
"We look forward to expanding ProAmérica Bank's footprint as we prepare for the pending merger with Pacific Commerce Bank," stated Chairwoman Maria S. Salinas.
Adjusted income from operations (income before provisions for loan losses and income taxes) was $144,000 for the three months ended December 31, 2015, compared to $648,000 in the fourth quarter of 2014. Adjusted income from operations was $922,000 for the year ended December 31, 2015, compared to $1,403,000 in 2014.
Fourth quarter 2015 Net Income was $85,000 compared to Net Income of $182,000 in the prior year fourth quarter. Net Income for the year ended December 31, 2015 was $551,000, compared to $626,000 in 2014. Both periods in 2015 were impacted by $256,000 in expenses related to the pending merger.
Total Assets at December 31, 2015 were $183.6 million, an increase of $18.4 million or 11% from December 31, 2014.
Total Loans at December 31, 2015 increased to $137.7 million, an increase of $20.2 million or 17% from December 31, 2014.
Total Deposits at December 31, 2015 increased to $153.5 million, an increase of $17.4 million or 13% from December 31, 2014.
Nonperforming assets were $545,000 at December 31, 2015, representing 0.3% of assets.
Capital ratios were in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 14.8% and a Total Risk-Based Capital Ratio of 19.8% at December 31, 2015. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.
Net Income for the three months ended December 31, 2015 was $85,000, compared to $182,000 in 2014. Net Income for the year ended December 31, 2015 was $551,000, compared to $626,000 in 2014. The decrease in net income in the fourth quarter of 2015 compared to the same period in the prior year was primarily due to expenses related to the pending merger.
Adjusted income from operations (income before provisions for loan losses and income taxes) was $144,000 for the fourth quarter of 2015, as compared to $648,000 for the same period in 2014. In the fourth quarter of 2014, adjusted income from operations included the impact of reversing a $339,000 contingent liability for the Bank's guarantee of the credit card balances of one of the Bank's troubled clients previously expensed in the third quarter of 2014. Adjusted income from operations in the fourth quarter of 2015 also included $256,000 in expenses related to the pending merger contributing to the increase from the same period in the prior year. Adjusted income from operations was $922,000 for the year ended December 31, 2015, as compared to $1,403,000 in the previous year. The increase in Operating Expense in 2015 compared to 2014 was due to the aforementioned $256,000 in expenses related to the pending merger and a decrease in gains on sales of SBA loans to $11,000 in 2015 compared to $232,000 in 2014. Management believes adjusted income from operations is a better measure of core earnings performance.
For the 2015 fourth quarter, Net Interest Income before the Provision for Loan Losses increased by $2,000 compared to the 2014 fourth quarter. The Net Interest Margin declined to 3.45% for the quarter ended December 31, 2015, down from 4.01% for the 2014 fourth quarter. For the year ended December 31, 2015, Net Interest Income before the Provision for Loan Losses increased by $73,000 compared to 2014. The Net Interest Margin decreased to 3.82% for the year ended December 31, 2015, down from 4.24% for 2014. The decrease in both periods in 2015 was due to a decline in the yield on loans as a result of the loan portfolio repricing at lower interest rates and a greater percentage of assets in lower-yielding Federal funds sold in 2015 compared to 2014.
No Provisions for Loan Losses were recorded in the fourth quarter of 2015 versus $340,000 in the same period in 2014. For the year ended December 31, 2015, no Provisions for Loan Losses were recorded due to improved asset quality compared to $340,000 recorded in 2014.
Non-interest Income declined $6,000, or 8% in the fourth quarter 2015 versus 2014. Non-interest Income decreased $320,000, or 36% for the year ended December 31, 2015 versus 2014 primarily due to a decrease in gains on the sales of SBA loans. Gains on sales of SBA loans were $11,000 in 2015 compared to $232,000 in 2014. Non-interest Income was also lower in 2015 compared to 2014 due to the receipt of a $265,000 Bank Enterprise Award in 2015 versus $353,000 in 2014. The Award was the maximum that any bank received for 2015, and the decreased grant was not due to a decline in lending performance in the lower income census tracts.
Non-interest Expense for the 2015 fourth quarter was $1,539,000, compared with $1,039,000 for the 2014 fourth quarter. In the fourth quarter of 2014, Operating Expense included the impact of reversing a $339,000 contingent liability for the Bank's guarantee of the credit card balances of one of the Bank's troubled clients previously expensed in the third quarter of 2014. Operating expense in the fourth quarter of 2015 included $256,000 in expenses related to the pending merger contributing to the increase from the same period in the prior year. Non-interest Expense for the year ended December 31, 2015 was $6,154,000 compared with $5,920,000 in 2014. The increase in Operating Expense in 2015 compared to 2014 was due to the aforementioned $256,000 in expenses related to the pending merger that was recorded in 2015.
The efficiency ratio was 91% for the 2015 fourth quarter, compared with 62% for the same period in 2014. The fourth quarter of 2014 included the impact of reversing a $339,000 contingent liability for the Bank's guarantee of the credit card balances of one of the Bank's troubled clients previously expensed in the third quarter of 2014. The fourth quarter of 2015 included $256,000 in expenses related to the pending merger, contributing to the increase from the same period in the prior year. The efficiency ratio was 87% for the year ended December 31, 2015 as compared to 81% in 2014. The increase in the efficiency ratio was due to the aforementioned $256,000 in 2015 expenses related to the pending merger and decrease in gains on the sales of SBA loans to $11,000 in 2015 from $232,000 in 2014.
Loans, before the allowance for loan losses, increased 17% to $137.7 million at December 31, 2015, compared to $117.5 million at December 31, 2014.
Total Deposits increased 13% to $153.5 million at December 31 2015, compared to $136.1 million at December 31, 2014.
Nonperforming Assets (the sum of loans past due 90 days and accruing, nonaccrual loans and other real estate owned) increased to $545,000, or 0.3% of total assets at December 31, 2015, compared with $1,911,000 or 1.2% of total assets at December 31, 2014. All of the nonperforming loans at December 31, 2015 are current in their payments.
The Allowance for Loan Losses was $2.2 million, or 1.6% of loans, at December 31, 2015, compared with $2.1 million, or 1.8% of loans, at December 31, 2014.
The Bank had net recoveries to average loans outstanding of 0.08% for the year ended December 31, 2015, as compared to net charge-offs to average loans outstanding of 0.61% for the year ended December 31, 2014.
Total Shareholders' Equity increased to $28.8 million at December 31, 2015, up from $28.1 million at December 31, 2014. The Bank's book value available to common shareholders per common share increased to $8.85 at December 31, 2015 from $8.78 at December 31, 2014.
At December 31, 2015, the Bank's Tier 1 Leverage Capital Ratio was 14.8% versus 16.0% at December 31, 2014. The Total Risk-based Capital Ratio was 19.8% as of December 31, 2015 versus 20.5% at December 31, 2014.
In December, ProAmérica Bank and Los Angeles based Pacific Commerce Bank, a wholly owned subsidiary of Pacific Commerce Bancorp (OTC: PCBC), announced that it entered into a definitive agreement to merge the two banks into Pacific Commerce Bank. The Bank is going through the regulatory approval process. The transaction is expected to close in the second quarter. "The combination of the two banks is very exciting," stated Sal Varela. "This merger brings value to our shareholders and creates an opportunity to expand products and services, the ability to offer larger loans, and to serve a greater geographic area."
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 .
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.
Maria Salinas
Chairwoman
213.787.2801
Sal Varela
Interim President and CEO
213.787.2802
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Datum: 13.02.2016 - 01:52 Uhr
Sprache: Deutsch
News-ID 450551
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