EX-99.1 2 a08-14290_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

Contact Information:

 

 

Jeffrey M. Watson

 

Dean Fletcher

President/Chief Executive Officer

 

 Executive Vice President/Chief Financial Officer

Phone: (310) 606-8000

 

Phone: (310) 606-8000

Fax: (310) 606-8090

 

Fax: (310) 606-8090

 

MANHATTAN BANCORP ANNOUNCES SIGNIFICANT LOAN, DEPOSIT AND ASSET GROWTH FOR QUARTER ENDED MARCH 31, 2008

 

LOS ANGELES, CA – May 13, 2008 – Manhattan Bancorp (“Bancorp”) (OTCBB: MNHN) the holding company of Bank of Manhattan, N. A. (“Bank”), a national bank, announced that total assets increased to $48.5 million at March 31, 2008, an increase of over 23 percent from the prior quarter ended December 31, 2007. Bank of Manhattan, which commenced operations on August 15, 2007, increased gross loans outstanding to $32.2 million, an increase of $14.0 million, or 77 percent over the December 31, 2007 level of $18.2 million.

 

Funding for the strong loan growth came primarily from an increase in deposits which totaled $27.9 million, which represents an increase of $10.0 million, or 56 percent from the December 31, 2007 level. “Our Bank’s strong growth to date is reflective of the support we have received from local businesses, professionals and entrepreneurs, as well as our shareholder base” stated Jeffrey M. Watson, President and Chief Executive Officer. “With our solid capital base and strong balance sheet, we are in an excellent position to capitalize on current market uncertainties.”

 

As is anticipated for a company in the initial operating stages, Manhattan Bancorp reported a net loss of $1,167,000 for the quarter ended March 31, 2008, which includes a $173,000 in non-cash compensation expense and a $166,000 provision to the allowance for loan losses. In spite of the declining interest rate environment, net interest income improved 32 percent over the prior quarter due to the strong loan growth experienced in the quarter. At March 31, 2008, the loan loss reserve represented 1.35% of gross outstanding loans. The Bank had no non-performing assets, or loans over 30 days past due at March 31, 2008.

 

Bank of Manhattan, which opened for business on August 15, 2007, is a full service bank headquartered in the South Bay area of Los Angeles, California. Bank of Manhattan’s primary focus is relationship banking to entrepreneurs, family-owned and closely-held middle market businesses, real estate investors and professional service firms. Additional information is available at www.BankManhattan.com.

 

FORWARD LOOKING STATEMENTS

 

Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward looking statements relate to Bancorp’s current expectations regarding deposit and loan growth, operating results and the strength of the local economy.  These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements.  These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on Bank of Manhattan’s operating results, ability to attract deposit and loan customers and the quality of Bank of Manhattan’s earning assets; (2) government regulation; and (3) the other risks set forth in the Company’s December 31, 2007 10-K/A, ITEM 1A. Risk Factors filed with the Securities and Exchange Commission.  Bancorp does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

 

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Financial Data-Manhattan Bancorp and Subsidiary

(Unaudited)

 

 

 

Quarter Ended

 

Quarter Ended

 

 

 

Mar. 31,

 

Dec. 31,

 

(In thousands)

 

2008

 

2007

 

Balance Sheet - At Period End

 

 

 

 

 

Cash and due from banks

 

$

749

 

$

398

 

Investments and fed funds sold

 

12,915

 

18,087

 

Net Loans

 

31,758

 

17,930

 

Other assets

 

3,104

 

2,952

 

Total Assets

 

$

48,526

 

$

39,367

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

8,582

 

$

5,395

 

Interest-bearing deposits

 

19,279

 

12,467

 

Other liabilities

 

351

 

316

 

Stockholders’ equity

 

20,314

 

21,189

 

Total Liabilities and Shareholders’ Equity

 

$

48,526

 

$

39,367

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

Interest income (not tax-equivalent)

 

$

560

 

$

453

 

Interest expense

 

130

 

86

 

Net interest income

 

430

 

367

 

Provision for loan losses

 

166

 

167

 

Net interest income after provision for loan losses

 

264

 

200

 

Non-interest income

 

13

 

1

 

Non-interest expense

 

1,444

 

1,484

 

Net Loss

 

$

(1,167

)

$

(1,283

)

 

 

 

 

 

 

Return on average assets

 

-10.73

%

-14.46

%

Return on average equity

 

-22.54

%

-23.39

%

 

 

 

 

 

 

Per share:

 

 

 

 

 

Net loss - basic

 

$

(0.47

)

$

(0.52

)

Weighted average shares used

 

2,487

 

2,487

 

Book value at period end

 

$

8.17

 

$

8.52

 

Ending shares

 

2,487

 

2,487

 

 

 

 

 

 

 

Assets Quality & Capital - At Period-End

 

 

 

 

 

Non-accrual loans

 

$

—

 

$

—

 

Loans past due 90 days or more

 

—

 

—

 

Other real estate owned

 

—

 

—

 

Total non-performing loans

 

$

—

 

$

—

 

 

 

 

 

 

 

Allowance for loan loss/total gross loans

 

1.35

%

1.48

%

Non-accrual loans /total gross loans

 

N/A

 

N/A

 

Non-performing assets to total assets

 

N/A

 

N/A

 

 

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