-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, AFWriTbZr8jCcND4VSYyKTIQe3fDG4D9APwlRf0lrBvP54tzolBTqC7p0KsMDc2t W6NqG+3rK54/h04GRT0Lpw== 0000898430-95-001515.txt : 19950814 0000898430-95-001515.hdr.sgml : 19950814 ACCESSION NUMBER: 0000898430-95-001515 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950630 FILED AS OF DATE: 19950811 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST REGIONAL BANCORP CENTRAL INDEX KEY: 0000356708 STANDARD INDUSTRIAL CLASSIFICATION: STATE COMMERCIAL BANKS [6022] IRS NUMBER: 953582843 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-10232 FILM NUMBER: 95561499 BUSINESS ADDRESS: STREET 1: 1801 CENTURY PARK EAST CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3105521776 MAIL ADDRESS: STREET 1: 1801 CENTURY PARK EAST CITY: LOS ANGELES STATE: CA ZIP: 90067 FORMER COMPANY: FORMER CONFORMED NAME: GREAT AMERICAN BANCORP DATE OF NAME CHANGE: 19880309 10-Q 1 FORM 10-Q FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 Quarter Ended June 30, 1995 ------------------------------------------------------------------- Commission File Number 0-10232 --------------------------------------------------------- FIRST REGIONAL BANCORP - -------------------------------------------------------------------------------- (Exact name of registrant as specified in its charter) California 95-3582843 - -------------------------------------------------------------------------------- State or other jurisdiction of IRS Employer incorporation or organization Identification Number 1801 Century Park East, Los Angeles, California 90067 - -------------------------------------------------------------------------------- Address of principal executive offices Zip Code (310) 552-1776 - -------------------------------------------------------------------------------- Registrant's telephone number, including area code Not applicable - -------------------------------------------------------------------------------- Former name, former address, and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No _____ ----- APPLICABLE ONLY TO CORPORATE ISSUERS Indicate the number of shares outstanding in each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, No Par Value 2,398,800 -------------------------- ------------------------------ Class Outstanding on August 10, 1995 2 FIRST REGIONAL BANCORP ---------------------- INDEX ----- Page ----
Part I - Financial Information Item 1. Financial Statements Consolidated Statements of Financial Condition 3 Consolidated Statements of Income 4 Consolidated Statements Cash Flow 6 Notes to Consolidated Financial Statements 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 10 Part II - Other Information Item 1. Legal Proceedings 15 Item 4. Submission of Matters to a Vote of Security Holders 15 Item 6. Exhibits and Reports on Form 8-K 15 Signatures 16
3 FIRST REGIONAL BANCORP AND SUBSIDIARY ------------------------------------- CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION ---------------------------------------------- (In Thousands)
June 30 December 31, 1995 1994 ------------ ------------- ASSETS (unaudited) - -------- Cash and due from banks $ 3,984 $ 4,677 Time deposits with other financial institutions 5,249 6,627 Investment securities 6,926 11,807 Funds sold 34,500 21,300 Loans, net of allowance for losses of $1,797,000 in 1995 and $1,390,000 in 1994 77,350 76,581 Premises and equipment, net of accumulated depreciation 152 166 Other real estate owned 696 1,163 Accrued interest receivable and other assets 2,215 1,966 -------- -------- Total Assets $131,072 $124,287 ======== ======== LIABILITIES AND SHAREHOLDERS' EQUITY - ------------------------------------ Liabilities: Demand deposits $ 18,723 $ 18,777 Savings deposits 4,677 5,147 Money market deposits 79,704 78,295 Time deposits 16,309 11,447 -------- -------- Total deposits 119,413 113,666 Securities sold under agreement to repurchase 2 0 Accrued interest payable and other liabilities 559 399 -------- -------- Total Liabilities 119,974 114,065 Shareholders' Equity: Common Stock, no par value, 50,000,000 shares authorized; 2,398,800 shares outstanding in 1995 and 1994, respectively 11,332 11,332 Retained earnings (254) (1,105) Net unrealized gain (loss) on securities available for sale 20 (5) -------- -------- Total Shareholders' Equity 11,098 10,222 -------- -------- Total Liabilities and Shareholders' Equity $131,072 $124,287 ======== ========
The accompanying notes are an integral part of these statements. 4 FIRST REGIONAL BANCORP AND SUBSIDIARY ------------------------------------- CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (In Thousands Except Per Share Amounts) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ------------------ ----------------- 1995 1994 1995 1994 ---- ---- ---- ---- REVENUE FROM EARNING ASSETS: Interest and fees on loans $ 2,237 $ 1,762 $ 4,432 $ 3,551 Interest on time deposits with other financial institutions 93 83 195 147 Interest on investment securities 154 102 348 114 Interest on funds sold 303 133 512 278 ------- ------- ------- ------- Total revenue from earning assets 2,787 2,080 5,487 4,090 COST OF FUNDS: Interest on deposits 660 606 1,270 1,217 Interest on securities sold under agreements to repurchase 0 0 0 0 ------- ------- ------- ------- Total cost of funds 660 606 1,270 1,217 Net revenue from earning assets before provision for loan losses 2,127 1,474 4,217 2,873 PROVISION FOR LOAN LOSSES 100 0 375 50 ------- ------- ------- ------- Net revenue from earning assets 2,027 1,474 3,842 2,823 Net gain (loss) on sales of securities 11 0 11 0 Other revenue 108 183 233 583 OPERATING EXPENSES: Salaries and related benefits 565 484 1,086 987 Occupancy expense 82 88 165 179 Equipment expense 86 35 129 73 Promotion expense 46 27 83 57 Professional service expense 181 165 323 348 Customer service expense 297 290 585 635 Supply/communication expense 36 29 64 55 Other expenses 467 540 695 917 ------- ------- ------- ------- Total operating expenses 1,760 1,658 3,130 3,251 ------- ------- ------- ------- Income before provision for income taxes 386 (1) 956 155
5 FIRST REGIONAL BANCORP AND SUBSIDIARY ------------------------------------- CONSOLIDATED STATEMENTS OF INCOME --------------------------------- (In Thousands Except Per Share Amounts) (Unaudited) (continued)
Three Months Ended Six Months Ended June 30, June 30, ------------------ ----------------- 1995 1994 1995 1994 PROVISION FOR INCOME TAXES 43 ( 3) 106 17 ------- -------- ------- ------ NET INCOME $ 343 $ 2 $ 850 $ 138 ======= ======= ======= ======= NET INCOME (LOSS) PER SHARE (Note 2) $ 0.14 $ 0.00 $ 0.35 $ 0.06 ======= ======= ======= =======
The accompanying notes are an integral part of these statements. 6 FIRST REGIONAL BANCORP AND SUBSIDIARY ------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOW ------------------------------------ (In Thousands) (Unaudited)
Six Months Ended June 30, -------------------- 1995 1994 ---- ---- OPERATING ACTIVITIES Net Income $ 850 $ 138 Adjustments to reconcile net income to net cash provided by operating activities: Provision for loan losses 375 50 Provision for depreciation and amortization 29 29 Amortization of investment securities net discounts (249) (2) Decrease (increase) in interest receivable (59) 404 Increase (decrease) in interest payable 19 (19) Increase (decrease) in taxes payable 26 17 Net increase (decrease) in other liabilities 115 162 ---------- --------- Net cash provided (used) by operating activities $ 1,106 $ 779 INVESTING ACTIVITIES Decrease (increase) in investment securities $ 5,155 $ (10,924) Decrease (increase) in time deposits with other financial institutions 1,378 (1,784) Decrease (increase) in loans (1,144) 5,164 Purchases of premises and equipment (15) (34) Net decrease (increase) in other real estate owned 467 5,709 Net decrease (increase) in other assets (189) (204) ---------- --------- Net cash provided by investing activities $ 5,652 $ (2,073) FINANCING ACTIVITIES Net decrease in demand deposits, savings accounts, and money market accounts $ 885 $ (3,169) Net increase in time deposits 4,862 (5,525)
7 FIRST REGIONAL BANCORP AND SUBSIDIARY ------------------------------------- CONSOLIDATED STATEMENTS OF CASH FLOW ------------------------------------ (In Thousands) (Unaudited) (continued)
Six Months Ended June 30, -------------------- 1995 1994 ---- ---- Increase (decrease) in securities sold under agreement to repurchase 2 0 --------- -------- Net cash provided by financing activities $ 5,749 $ (8,694) Increase (decrease) in cash and cash equivalents $ 12,507 $ (9,988) Cash and cash equivalents, beginning of period 25,977 22,971 ---------- -------- Cash and cash equivalents, end of period $ 38,484 $ 12,983 ========== ========
The accompanying notes are an integral part of these statements. 8 FIRST REGIONAL BANCORP AND SUBSIDIARY ------------------------------------- NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ------------------------------------------ June 30, 1995 (Unaudited) NOTE 1 - The consolidated financial statements include the accounts of First Regional Bancorp (the Company), a bank holding company, and its wholly-owned subsidiary, First Regional Bank (the Bank). In the opinion of management, the unaudited consolidated financial statements of First Regional Bancorp at June 30, 1995 and December 31, 1994 and the results of operations for the three and six month periods ended June 30, 1995 and 1994 contain all adjustments (which consist only of normal recurring adjustments) necessary to present fairly the financial position of the Company. Certain items in the 1994 consolidated financial statements have been reclassified to conform to the 1995 presentation. The results of operations for the periods ended June 30, 1995 and 1994 are not necessarily indicative of operating results that may be expected for any other interim period or for the full year. While management believes that the disclosures presented are adequate to make the information not misleading, it is suggested that these financial statements be read in conjunction with the financial statements and the notes included in the Company's 1994 annual report. NOTE 2 - Per share information was based on the number of common shares outstanding, which was 2,398,800 in 1995 and 1994. No adjustment has been made for outstanding stock options. NOTE 3 - As of June 30, 1995 the Bank had a total of $300,000 in standby letters of credit outstanding. No losses are anticipated as a result of these transactions. NOTE 4 - The Company adopted Statement of Financial Accounting Standards (SFAS) No. 114, "Accounting by Creditors for Impairment of a Loan," effective January 1, 1995. This Statement defines an impaired loan as one for which it is likely that an institution will be unable to collect all amounts due (that is, all principal and interest) according to the contractual terms of the loan. The Statement generally requires impaired loans to be measured at the present value of expected future cash flows discounted at the effective interest rate of the loan, or, as an expedient, at the loan's observable market price, or the fair value of the collateral if the loan is collateral dependent. For the quarter ended June 30, 1995 the Company had identified loans having an aggregate average balance of $939,337 which it concluded were impaired under SFAS No. 114. The Company's policy is to discontinue the accrual of interest income on impaired loans, and to recognize income on such loans only after the loan principal has been repaid in full. Pursuant to this policy, the Company had already ceased to accrue interest on the impaired loans, and had established a general loss reserve for each of the loans which at 9 June 30, 1995 totalled $371,000 for the loans as a group. As the loss reserves established by the Company were greater than those called for under SFAS No. 114, the adoption of SFAS No. 114 had no effect on the Company's financial statements as of June 30, 1995. NOTE 5 - The Company adopted Statement of Financial Accounting Standards (SFAS) No. 115, "Accounting for Investments in Certain Debt and Equity Securities," effective January 1, 1994. This Statement supersedes SFAS No. 12, and significantly amends SFAS No. 65 and SFAS No. 60, the standards previously used by the Company. The effect of adopting SFAS No. 115 on the Company's financial statements was to increase shareholders' equity at June 30, 1995 by $20,000 from the level which would have existed had SFAS No. 115 not been adopted. Because the applicable investment securities are classified by the Company as "available for sale," there was no effect on the Company's income statement. 10 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND - ------------------------------------------------------------------------- RESULTS OF OPERATIONS --------------------- SUMMARY - ------- First Regional Bancorp did not conduct any significant business activities independent of First Regional Bank. The following discussion and analysis relates primarily to the Bank. At June 30, 1995 total assets were $131,072,000 compared to $124,287,000 at December 31, 1994, an increase of $6,785,000 or 5%. This increase was due to growth in deposits of $5,747,000, or 5%, to $119,413,000 on June 30, 1995 from $113,666,000 at December 31, 1994. This increase in deposits was concentrated in time deposits; other deposit categories, including demand deposits, savings deposits, and money market accounts, were essentially stable during this period. At the same time that deposits were growing, Net Loans also rose, but much more modestly, increasing by $769,000 or 1% to $77,350,000 compared to $76,581,000 at the end of 1994. Changes in the levels and the relationships in yield between time deposits with other financial institutions, investment securities, and funds sold resulted in lower levels of investment securities and time deposits; time deposits with other financial institutions fell from $6,627,000 at December 31, 1994 to $5,249,000 at June 30, 1995, while investment securities fell from a yearend 1994 level of $11,807,000 to $6,926,000 at June 30, 1995. The funds which were freed by these asset reductions flowed into funds sold, which increased from $21,300,000 at December 31, 1994 to $34,500,000 at June 30, 1995. Most other categories of assets and liabilities experienced relatively minor changes in the period from December 31, 1994 to June 30, 1995. The Company earned a profit of $343,000 in the second quarter of 1995 compared to $2,000 in the three months ended June 30, 1994. The results for the six months ended June 30, 1995 were profits of $850,000 compared to a profit of $138,000 for the corresponding period of 1994. NET INTEREST INCOME - ------------------- Net revenue from earning assets rose by $653,000 (44%) for the three months ended June 30, 1995 compared to the same period in 1994. The results for the six month period ending June 30, 1995 showed an increase of $1,344,000 (47%) compared to the corresponding period in 1994. With regard to earning assets and its associated interest revenue, total revenue increased due to higher levels of earning assets, general stability in interest rates, and a dramatic reduction in non-performing or non-earning assets. In the area of the cost of funds, however, expense levels were quite stable, as growth in total deposits was largely offset by slightly lower interest rates for these types of instruments despite stability in asset yields. 11 OTHER REVENUE - ------------- Other revenue fell from $183,000 in the second quarter of 1994 to $108,000 for the three months ended June 30, 1995, a 41% decrease. For the first half of 1995 other revenue was $233,000 compared to $583,000 for the six months ended June 30, 1994, a decrease of $350,000 or 60%. The changes between 1995 and 1994 primarily reflect the 1994 receipt of rental income on an income property acquired via foreclosure during the period preceding its eventual sale. Most other categories of other revenue were largely unchanged between the two years. During the second quarter of 1995, total gains of $11,000 were realized on the sale of investment securities. No gains on securities sales were realized in the first six months of 1994, or in the first quarter of 1995. PROVISION FOR POSSIBLE LOAN LOSSES - ---------------------------------- The allowance for possible loan losses is intended to reflect known and inherent risks in the loan portfolio. The allowance for possible loan losses is increased by provisions for possible loan losses, and is decreased by net loan chargeoffs. Management continues to evaluate the loan portfolio in light of many factors, including loan loss experience and current economic conditions. Management believes the allowance for possible loan losses is adequate to provide for losses that might be reasonably anticipated. The allowance for possible loan losses was $1,797,000 and $1,390,000 (or 2.27% and 1.78% of gross outstanding loans) at June 30, 1995 and December 31, 1994 respectively. Although the credit quality of the Company's loan portfolio has steadily improved, based on its ongoing analysis of the risks presented by its loan portfolio and the expectation of future loan growth the Company made provisions of $100,000 and $375,000, respectively, for the second quarter and the first six months of 1995. By comparison, reflecting the substantial loan loss provisions made in 1993, the Company's provisions for possible losses were zero and $50,000 for the three and six month periods ended June 30, 1994, respectively. In 1995, the Bank generated net loan recoveries of $14,000 and $52,000, respectively, for the three and six month periods ended June 30, 1995; by comparison, the Bank experienced net loan chargeoffs of $582,000 in the second quarter of 1994 and net chargeoffs of $1,056,000 for the first six months of 1994. OPERATING EXPENSES - ------------------ Overall, the Company experienced modest increases in operating expenses in 1995 compared to the prior year. As before, those increases were moderated by management's continuing efforts to control non-interest expenses. Operating expenses increased from a total of $1,658,000 for the three months ended June 30, 1994 to $1,760,000 for the same period in 1995. For the six months ended June 30, 1995, operating expenses totaled $3,130,000, a slight decline from $3,251,000 in the corresponding period in 1994. Salary and related benefits increased from $484,000 for the three month period ended June 30, 1994 to $565,000 for the same period in 1995, and also rose for the six month periods ended June 30, to $1,086,000 in 1995 from $987,000 in 1994. The increases in salary expense reflect additions to staff required by the Company's program to resume business development 12 activity and the addition of new business customers. Occupancy expense remained generally stable for the three and six month periods of 1994 and 1995, at the levels resulting from the 1993 renegotiation of the lease agreement covering the Bank's premises. While most of the remaining categories of expenses underwent reductions or only slight increases in 1995 compared to 1994, there were one important exceptions: other expenses fell substantially in 1995 compared to 1994, due to asset writedowns, carrying costs, and disposal expenses relating to nonperforming loans and foreclosed properties which were incurred in 1994. With the improved asset quality which prevailed in 1995 compared to 1994, no similar level of expense was incurred in the latter year. LIQUIDITY, SOURCES OF FUNDS, AND CAPITAL RESOURCES - -------------------------------------------------- The Company's financial position remains highly liquid. Total liquid assets (cash and due from banks, time deposits, investment securities, and funds sold) stood at 42.4% of total deposits at June 30, 1995. This compares with a level of 39.1% which existed at December 31, 1994; this change reflects growth in the level of liquid asset components at the same time that more modest growth was taking place in the various deposit categories. In addition, at both June 30, 1995 and December 31, 1994, the Bank held approximately $23.4 million of loans fully guaranteed by the United States government; due to the presence of an active secondary market for such loans, these loans represent an important additional source of liquidity. The ratio of net loans (including government guaranteed loans) to deposits was 65.0% and 67.4% as of June 30, 1995 and December 31, 1994, respectively. The Bank's investment portfolio continues to be composed of high quality, low risk securities, primarily U.S. Treasury U.S. Agency securities. As mentioned above, a total of $11,000 in gains on securities sales were realized in the second quarter of 1995; no gains were recorded on sales of securities in the first six months of 1994 or the first quarter of 1995. At June 30, 1995 the Bank's investment portfolio contained gross unrealized gains of $20,000 and no gross unrealized losses; at December 31, 1994 the portfolio contained no unrealized gains and unrealized losses of $1,000. As discussed more fully in Note 5, the Company adopted SFAS No. 115 in 1994, with the result that the unrealized gains of $20,000 gave rise to a corresponding $20,000 increase in the Company's shareholders' equity. Because the Company's holdings of securities are intended to serve as a source of liquidity should conditions warrant, the securities have been classified by the Company as "available for sale," and thus there was no effect on the Company's income statement. Because customer deposits are the Company's principal funding source outside of its capital, management has attempted to match rates and maturities of its deposits with its investment and loan portfolios as part of its liquidity and asset and liability management policies. The objective of these policies is to limit the fluctuations of net interest income resulting from interest rate changes. The table which follows indicates the repricing or maturity characteristics of the major categories of the Bank's assets and liabilities, and thus the relative sensitivity of the Bank's net interest income to changes in the overall level of interest rates. A positive "gap" for a period indicates that an upward or downward movement in the level of interest rates would cause a corresponding change in net interest income, while a negative "gap" implies that an interest rate movement would result 13 in an inverse change in net interest income.
One month Six months One year Non-interest Floating Less than but less than but less than but less than Five years earning Category Rate one month six months one year five years or more or bearing Total ==================================================================================================================================== Fed funds sold 34,500 0 0 0 0 0 0 34,500 Time deposits with other banks 0 792 4,358 99 0 0 0 5,249 Investment securities 1,939 2,000 2,962 0 25 0 0 6,926 ----- ----- ----- - -- - - ----- Subtotal 36,439 2,792 7,320 99 25 0 0 46,675 Loans 76,940 0 100 310 0 0 0 77,350 ------ - --- --- - - - ------ Total earning assets 113,379 2,792 7,420 409 25 0 0 124,025 Cash and due from banks 0 0 0 0 0 0 3,984 3,984 Premises and equipment 0 0 0 0 0 0 152 152 Other real estate owned 0 0 0 0 0 0 696 696 Other assets 0 0 0 0 0 0 2,215 2,215 - - - - - - ----- ----- Total non-earning assets 0 0 0 0 0 0 7,047 7,047 - - - - - - ----- ----- Total assets 113,379 2,792 7,420 409 25 0 7,047 131,072 Funds purchased 2 0 0 0 0 0 0 2 Repurchase agreements 0 0 0 0 0 0 0 0 - - - - - - - - Subtotal 2 0 0 0 0 0 0 2 Savings deposits 4,677 0 0 0 0 0 0 4,677 Money market deposits 79,704 0 0 0 0 0 0 79,704 Time deposits 0 6,734 7,591 1,859 125 0 0 16,309 - ----- ----- ----- --- - - ------ Total bearing liabilities 84,383 6,734 7,591 1,859 125 0 0 100,692 Demand deposits 0 0 0 0 0 0 18,723 18,723 Other liabilities 0 0 0 0 0 0 559 559 Equity capital 0 0 0 0 0 0 11,098 11,098 - - - - - - ------ ------ Total non-bearing liabilities 0 0 0 0 0 0 30,380 30,380 - - - - - - ------ ------ Total liabilities 84,383 6,734 7,591 1,859 125 0 30,380 131,072 GAP 28,996 (3,942) (171) (1,450) (100) 0 (23,333) 0 Cumulative GAP 28,996 25,054 24,883 23,433 23,333 23,333 0 0
As the table indicates, the vast majority of the Company's assets are either floating rate or, if fixed rate, have extremely short maturities. Since the yields on these assets quickly adjust to reflect changes in the overall level of interest rates, there are no significant unrealized gains or losses with respect to the Company's assets, nor is there much likelihood of large realized or unrealized gains or losses developing in the future. For this reason, realized or unrealized gains or losses are not expected to have any significant impact on the Company's future operating results or liquidity. The Company continues to enjoy a strong capital position. Total capital was $11,098,000 and $10,222,000 as of June 30, 1995 and December 31, 1994, respectively. The Company's capital ratios for those dates in comparison with regulatory capital requirements were as follows: 14
06-30-95 12-31-94 -------- -------- Leverage Ratio (Tier I Capital to Total Assets) Regulatory requirement 3.00% 3.00% First Regional Bancorp 8.41% 8.08%
In addition, bank regulators have issued new risk-adjusted capital guidelines which assign risk weights to assets and off-balance sheet items and place increased emphasis on common equity. The Company's risk adjusted capital ratios for the dates listed in comparison with the risk adjusted regulatory capital requirements were as follows:
06-30-95 12-31-94 -------- -------- Tier I Capital to Risk-Weighted Assets: Regulatory requirement 4.00% 4.00% First Regional Bancorp 15.83% 14.94% 06-30-95 12-31-94 -------- -------- Tier I + Tier II Capital to Risk-Weighted Assets: Regulatory requirement 8.00% 8.00% First Regional Bancorp 17.09% 16.20%
The "regulatory requirement" figures listed above represent the level of capital required for Adequately Capitalized status. The Company believes that it will continue to meet all applicable capital standards. INFLATION - --------- The impact of inflation on the Company differs significantly from other industries, since virtually all of its assets and liabilities are monetary. During periods of rising inflation, companies with net monetary assets will always experience a reduction in purchasing power. Inflation continues to have an impact on salary, supply, and rent expenses, but the rate of inflation in general and its impact on these expenses in particular has remained moderate in recent years. 15 PART II - OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS - --------------------------- Litigation - ---------- The Company is a party as plaintiff or defendant to a number of lawsuits that have arisen in connection with the normal conduct of its banking business. It is management's opinion, based upon advice of legal counsel, that none of the pending litigation will have a materially adverse effect on the Company or on the Bank beyond what has already been provided in the financial statements. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS - ------------------------------------------------------------- The 1995 annual meeting of shareholders was held on May 18, 1995. The following persons were nominated and elected to the Board of Directors to serve until the 1996 annual meeting of shareholders: Alexander S. Lowy Thomas E. McCullough Frank R. Moothart Mark Rubin Lawrence J. Sherman Jack A. Sweeney Steven J. Sweeney There was no other action taken at the meeting. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K - ------------------------------------------ Exhibits - -------- There are no exhibits to this report. Reports on Form 8-K - ------------------- No reports on Form 8-K were filed during the second quarter of 1995. 16 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. FIRST REGIONAL BANCORP August 10, 1995 /s/ Jack A. Sweeney Date: ------------------- ------------------------------------------ Jack A. Sweeney, Chairman of the Board and Chief Executive Officer August 10, 1995 /s/ Thomas McCullough Date: ------------------- ------------------------------------------ Thomas McCullough, Chief Financial Officer EX-27 2 FINANCIAL DATA SCHEDULE
9 6-MOS DEC-31-1995 JAN-01-1995 JUN-30-1995 3,984,000 5,249,000 34,500,000 0 6,926,000 6,926,000 6,946,000 79,147,000 1,797,000 131,072,000 119,413,000 2,000 559,000 0 11,332,000 0 0 (234,000) 131,072,000 4,432,000 543,000 512,000 5,487,000 1,270,000 1,270,000 4,217,000 375,000 11,000 3,130,000 956,000 956,000 0 0 850,000 0.35 0.35 0.079 897,000 2,105,000 0 0 1,391,000 45,000 76,000 1,797,000 1,797,000 0 0
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