EX-99.1 2 a10-15573_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

Contact Information:

 

Deepak Kumar

 

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 REPORTS A HEALTHY CAPITAL BASE AND BALANCE SHEET AT JUNE 30, 2010

 

LOS ANGELES, CA — August 3, 2010 — Manhattan Bancorp (“Company”) (OTCBB: MNHN), the holding company of Bank of Manhattan, N. A. (“Bank”), a national bank, and MBFS Holdings, Inc., which owns a majority interest in Banc of Manhattan Capital, LLC, announced today a strong balance sheet, along with an improvement in its net interest income for the period ended June 30, 2010.

 

FINANCIAL HIGHLIGHTS

(as of, or for the six month period ended June 30, 2010, compared to June 30, 2009)

 

·                  Capital ratios exceed the levels required to be considered “well-capitalized” under generally applicable regulatory guidelines (the highest level determined by the regulatory agencies), with a Total Risk-Based Capital Ratio of 23.6%, Tier 1 Risk-Based Capital Ratio of 22.3% and Tier 1 Leverage Ratio of 17.7%.

·                  Total gross loans grew 19% to $86 million.

·                  Deposits increased 45% to $87 million, with non-interest bearing deposits reaching $30 million, or 34% of total deposits.

·                  Credit quality remains strong with no past-due loans, no non-performing loans and no Other Real Estate Owned.

·                  The business continues to grow its top line.  Interest income was up 57% to $3.2 million.  Non-interest income, attributable largely to growth in our capital markets business, was up significantly from $51,000 to $3.4 million.

·                  The quarterly net interest margin grew to 4.83% from 4.42%.

 

“The Company continues to grow in 2010.  We spent a good part of the second quarter right-sizing the business and building platforms and controls necessary to support our future growth.  Management has developed a three-year strategic plan which demonstrates clarity in vision and purpose.  We are actively moving forward with its execution,” said Deepak Kumar, the Company President and Chief Executive Officer.  “The salient features of the plan focus on strategies to grow the commercial business, develop our consumer platform, (including the possibility of introducing a mortgage product) and clearly outline a path to future profitability.”

 

At June 30, 2010, the Company had $119 million in assets and $26 million in shareholders’ equity, while reporting $1.3 million in losses for the quarter.  The Bank continues to take a conservative approach by growing the loan loss reserve in these continued uncertain times.  During the second quarter of 2010, the Company increased its loan loss reserves to 1.96% by adding $207,000 to the provision for loan losses.

 

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. At October 1, 2009, Manhattan Bancorp, through its wholly owned subsidiary, MBFS Holdings, Inc., acquired a 70% interest in Banc of Manhattan Capital, LLC, a full service mortgage-centric broker/dealer. 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 the Company’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, 2009 10-K, ITEM 1A. Risk Factors filed with the Securities and Exchange Commission.  The Company 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.

 



 

Financial Data-Manhattan Bancorp and Subsidiary

(Unaudited)

 

 

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

Quarter Ended

 

 

 

Jun. 30

 

Mar. 31,

 

Dec. 31,

 

Sep. 30,

 

Jun. 30,

 

(In thousands)

 

2010

 

2010

 

2009

 

2009

 

2009

 

Balance Sheet - At Period End

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

2,144

 

$

2,052

 

$

1,214

 

$

1,143

 

$

2,148

 

Investments and fed funds sold

 

27,736

 

43,288

 

67,558

 

33,770

 

27,114

 

Net loans

 

84,574

 

83,870

 

78,914

 

71,963

 

71,154

 

Other assets

 

4,707

 

5,150

 

4,629

 

3,394

 

3,419

 

Total Assets

 

$

119,161

 

$

134,360

 

$

152,315

 

$

110,270

 

$

103,835

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

29,697

 

$

30,810

 

$

29,647

 

$

20,908

 

$

19,767

 

Interest-bearing deposits

 

57,009

 

70,211

 

81,273

 

47,845

 

39,884

 

Other borrowings

 

4,500

 

4,500

 

12,000

 

11,500

 

11,500

 

Other liabilities

 

1,776

 

1,555

 

993

 

876

 

785

 

Stockholders' equity, including minority interest

 

26,179

 

27,284

 

28,402

 

29,141

 

31,899

 

Total Liabilities and Shareholders' Equity

 

$

119,161

 

$

134,360

 

$

152,315

 

$

110,270

 

$

103,835

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

Interest income (not tax-equivalent)

 

$

1,659

 

$

1,576

 

$

1,338

 

$

1,204

 

$

1,109

 

Interest expense

 

243

 

289

 

251

 

200

 

179

 

Net interest income

 

1,416

 

1,287

 

1,087

 

1,004

 

930

 

Provision for loan losses

 

207

 

370

 

84

 

469

 

454

 

Net interest income after provision for loan losses

 

1,209

 

917

 

1,003

 

535

 

476

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

1,646

 

1,744

 

921

 

47

 

34

 

Non-interest expense

 

4,129

 

3,902

 

3,009

 

1,856

 

1,964

 

Net Loss, excluding minority interest

 

$

(1,274

)

$

(1,318

)

$

(1,074

)

$

(1,274

)

$

(1,454

)

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

-3.74

%

-3.90

%

-3.57

%

-5.15

%

-6.53

%

Return on average equity

 

-18.03

%

-19.16

%

-14.79

%

-16.14

%

-17.75

%

Net interest margin

 

4.84

%

3.99

%

3.79

%

4.26

%

4.42

%

 

 

 

 

 

 

 

 

 

 

 

 

Per share:

 

 

 

 

 

 

 

 

 

 

 

Net loss -Manhattan Bancorp shareholders- basic

 

$

(0.32

)

$

(0.33

)

$

(0.27

)

$

(0.32

)

$

(0.36

)

Weighted average shares used

 

3,988

 

3,988

 

3,988

 

3,988

 

3,988

 

Book value per common share at period end

 

$

6.49

 

$

6.75

 

$

7.05

 

$

7.31

 

$

7.61

 

Ending shares

 

3,988

 

3,988

 

3,988

 

3,988

 

3,988

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

1.96

%

1.74

%

1.50

%

1.50

%

1.51

%

Non-accrual loans /total gross loans

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A

 

Non-performing assets to total assets

 

N/A

 

N/A

 

N/A

 

N/A

 

N/A