EX-99.1 2 a10-20475_1ex99d1.htm EX-99.1

EXHIBIT 99.1

 

Contact Information:

 

Harry W. (Duke) Chenoweth

Dean Fletcher

Interim 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 SOLID BALANCE SHEET AT SEPTEMBER 30, 2010

 

LOS ANGELES, CA — November 1, 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, and Manhattan Capital Markets, LLC, announced today its third-quarter results and the strong financial position of its balance sheets as of September 30, 2010.

 

FINANCIAL HIGHLIGHTS

 

(as of, or for the nine-month period ended September 30, 2010, compared to September 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 27.7%, Tier 1 Risk-Based Capital Ratio of 26.5% and Tier 1 Leverage Ratio of 19.2%.

 

·                  Total gross loans grew 14% to $83 million.

 

·                  Deposits increased 49% to $102 million, with non-interest bearing deposits at $30 million, or 29% 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 50% to $4.9 million.  Non-interest income, attributable largely to growth in our capital markets business, was up significantly from $98,000 to $5.9 million.

 

·                  The quarterly net interest margin grew to 4.46% from 4.26%.

 

“The Company has made solid progress in 2010.   During September of 2010, the Bank launched its mortgage operations.  The prospects appear favorable that, by providing this service to our expanding customer base, it will contribute towards the Company’s profitability as we move forward,” said Kyle Ransford, the Company’s Chairman of the Board.  “We are also pleased that the Company’s balance sheet remains solid as the Bank continues to report no non-performing assets, despite the challenges that exist within the economy.”

 

At September 30, 2010, the Company had $135 million in assets and $26 million in shareholders’ equity, while reporting a net loss of $ 864,000 for the quarter.  The Bank continues to take a conservative approach by growing the loan loss reserve in these continued uncertain times.  During the third quarter of

 


 

2010, the Company increased its loan loss reserves to 2.24% by adding $150,000 to the provision for loan losses.

 

The Bank, which opened for business on August 15, 2007, is a full service bank headquartered in the South Bay area of Los Angeles, California.  The Bank’s primary focus is relationship banking and residential mortgages to entrepreneurs, family-owned and closely-held middle market businesses, real estate investors and professional service firms.  Additional information may be found 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 the Company’s operating results, ability to attract deposit and loan customers and the quality of the Company’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

 

 

 

Sep 30,

 

Jun 30,

 

Mar 31,

 

Dec 31,

 

Sep 30,

 

(In thousands)

 

2010

 

2010

 

2010

 

2009

 

2009

 

Balance Sheet - At Period End

 

 

 

 

 

 

 

 

 

 

 

Cash and due from banks

 

$

1,703

 

$

2,144

 

$

2,052

 

$

1,214

 

$

1,143

 

Investments and fed funds sold

 

46,215

 

27,736

 

43,288

 

67,558

 

33,770

 

Net loans

 

81,478

 

84,574

 

83,870

 

78,914

 

71,963

 

Other assets

 

5,212

 

4,707

 

5,150

 

4,629

 

3,394

 

Total Assets

 

$

134,608

 

$

119,161

 

$

134,360

 

$

152,315

 

$

110,270

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest-bearing deposits

 

$

29,785

 

$

29,697

 

$

30,810

 

$

29,647

 

$

20,908

 

Interest-bearing deposits

 

72,373

 

57,009

 

70,211

 

81,273

 

47,845

 

Other borrowings

 

4,500

 

4,500

 

4,500

 

12,000

 

11,500

 

Other liabilities

 

2,306

 

1,776

 

1,555

 

993

 

876

 

Stockholders’ equity, including minority interest

 

25,644

 

26,179

 

27,284

 

28,402

 

29,141

 

Total Liabilities and Shareholders’ Equity

 

$

134,608

 

$

119,161

 

$

134,360

 

$

152,315

 

$

110,270

 

 

 

 

 

 

 

 

 

 

 

 

 

Income Statement

 

 

 

 

 

 

 

 

 

 

 

Interest income (not tax-equivalent)

 

$

1,644

 

$

1,659

 

$

1,576

 

$

1,338

 

$

1,204

 

Interest expense

 

242

 

243

 

289

 

251

 

200

 

Net interest income

 

1,402

 

1,416

 

1,287

 

1,087

 

1,004

 

Provision for loan losses

 

150

 

207

 

370

 

84

 

469

 

Net interest income after provision

 

 

 

 

 

 

 

 

 

 

 

for loan losses

 

1,252

 

1,209

 

917

 

1,003

 

535

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

2,480

 

1,646

 

1,744

 

921

 

47

 

Non-interest expense

 

4,596

 

4,129

 

3,902

 

3,009

 

1,856

 

Net Loss, excluding minority interest

 

$

(864

)

$

(1,274

)

$

(1,318

)

$

(1,074

)

$

(1,274

)

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

-2.65

%

-3.74

%

-3.90

%

-3.57

%

-5.15

%

Return on average equity

 

-13.45

%

-18.03

%

-19.16

%

-14.79

%

-16.14

%

Net interest margin

 

4.46

%

4.84

%

3.99

%

3.79

%

4.26

%

 

 

 

 

 

 

 

 

 

 

 

 

Per share:

 

 

 

 

 

 

 

 

 

 

 

Net loss -Manhattan Bancorp shareholders- basic

 

$

(0.22

)

$

(0.32

)

$

(0.33

)

$

(0.27

)

$

(0.32

)

Weighted average shares used

 

3,988

 

3,988

 

3,988

 

3,988

 

3,988

 

Book value per common share at period end

 

$

6.35

 

$

6.49

 

$

6.75

 

$

7.05

 

$

7.31

 

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

 

2.24

%

1.96

%

1.74

%

1.50

%

1.50

%

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