EX-99.1 7 a03-3840_1ex99d1.htm EX-99.1

Exhibit 99.1

 

News Release

 

First Regional

 

1801 Century Park East

 

Jack A. Sweeney

Bancorp

 

Century City, California  90067

 

Board Chairman

 

 

Telephone  (310) 552-1776

 

Chief Executive Officer

 

 

Facsimile  (310) 552-1772

 

 

 

IMMEDIATE RELEASE

 

FIRST REGIONAL BANCORP REPORTS STRONG PERFORMANCE RESULTS

FOR THIRD QUARTER AND FIRST NINE MONTHS OF 2003

 

CENTURY CITY, CALIFORNIA, OCTOBER 3, 2003 - First Regional Bancorp (Nasdaq: FRGB) today reported continued strong performance for both the third quarter and the nine months ended September 30, 2003.  The company’s net income, total assets, total deposits, and net loans all increased approximately 50 percent compared to the similar period last year.

 

First Regional’s net income for the first three quarters of 2003 rose 54%, to $3,269,000 ($1.14 per share, diluted) compared to $2,117,000 (79 cents per share, diluted) in the same nine months a year ago.  Over the same period, total assets increased by 52% to $640,407,000, total deposits rose 56% to $586,318,000, and net loans grew to $566,741,000, an increase of 59% over the levels of the prior year.

 

In the third quarter of 2003, First Regional’s net income of $1,306,000 (or 44 cents per share, diluted) represented a 44% increase over the $909,000 and 34 cents per share (diluted) recorded in the third quarter of 2002.

 

Jack A. Sweeney, chairman and chief executive officer, said:  “We are pleased to register such successful performance for both the third quarter and the first nine months of the year.  These results were achieved despite Federal Reserve action to maintain some of the lowest interest rate levels in history, which has reduced our operating margins below what would be attained under normal circumstances.  Fortunately, First Regional’s growth in total assets, deposits, and loans has overcome the negative impact of these lower margins.

 

“During the recently completed quarter, First Regional established its newest regional office to serve fast-growing Ventura County.  The new office is led by Regional Vice President Jane Weblemoe, and brings First Regional’s proven banking expertise to businesses and professionals in all of Ventura County, and in particular to the communities of Westlake Village, Thousand Oaks and Camarillo.  The new Ventura County Regional Office is our eighth such facility, and these offices, along with our First Regional Merchant Services and Trust Administration Services Corp. business units, continue to make increasing contributions to our growth and profitability.”

 

Mr. Sweeney concluded: “Despite continuing economic uncertainties, our confidence remains high regarding the future prospects for our company.  While no one can predict what lies ahead, we will proceed according to the formula which has always served us well – namely, an emphasis on high asset quality, strong capital and prudent reserves.”

 

First Regional Bancorp is a bank holding company headquartered in Century City.  Its subsidiary, First Regional Bank, specializes in providing businesses and professionals with the management expertise of a major bank and the personalized service of an independent.

(over)

 

# # #

 

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CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)

 

 

 

(000’s omitted)

 

As of September 30

 

2003

 

2002

 

 

 

 

 

 

 

ASSETS:

 

 

 

 

 

Cash and due from banks

 

$

26,491

 

$

25,734

 

Investment securities

 

4,854

 

2,733

 

Funds sold

 

25,820

 

22,975

 

Federally guaranteed loans

 

11,225

 

16,826

 

Other loans, net

 

555,516

 

338,855

 

Premises and equipment

 

1,768

 

1,531

 

Other real estate owned

 

0

 

0

 

Other assets

 

14,733

 

12,781

 

 

 

 

 

 

 

Total assets

 

$

640,407

 

$

421,435

 

 

 

 

 

 

 

LIABILITIES AND CAPITAL:

 

 

 

 

 

Demand deposits

 

$

234,265

 

$

128,860

 

Savings deposits

 

28,168

 

23,792

 

Money market deposits

 

230,511

 

164,562

 

Time deposits

 

93,374

 

59,427

 

 

 

 

 

 

 

Total deposits

 

586,318

 

376,641

 

 

 

 

 

 

 

Funds purchased

 

0

 

423

 

Trust securities

 

12,500

 

12,500

 

Other liabilities

 

8,012

 

4,996

 

 

 

 

 

 

 

Total liabilities

 

606,830

 

394,560

 

 

 

 

 

 

 

Stated capital

 

15,776

 

12,872

 

Retained earnings

 

17,801

 

14,003

 

Net unrealized gains (losses) on available-for-sale securities

 

0

 

0

 

 

 

 

 

 

 

Total capital

 

33,577

 

26,875

 

 

 

 

 

 

 

Total liabilities and capital

 

$

640,407

 

$

421,435

 

 

 

 

 

 

 

Book value per share outstanding

 

$

11.79

 

$

10.22

 

 

 

 

 

 

 

Total shares outstanding

 

2,846,779

 

2,630,039

 

 

 

2

 

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

 

 

 

(000’s omitted)

 

 

 

Three Months Ended
September 30,

 

Nine Months Ended
September 30,

 

 

 

2003

 

2002

 

2003

 

2002

 

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

8,214

 

$

5,838

 

$

22,162

 

$

15,863

 

Interest on funds sold

 

69

 

179

 

191

 

333

 

Interest on securities

 

19

 

13

 

53

 

45

 

 

 

 

 

 

 

 

 

 

 

Revenue from earning assets

 

8,302

 

6,030

 

22,406

 

16,241

 

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

733

 

726

 

1,895

 

1,939

 

Interest on trust securities

 

142

 

70

 

450

 

212

 

Interest on funds purchased

 

1

 

3

 

43

 

7

 

 

 

 

 

 

 

 

 

 

 

Cost of funds

 

876

 

799

 

2,388

 

2,158

 

 

 

 

 

 

 

 

 

 

 

 

 

7,426

 

5,231

 

20,018

 

14,083

 

 

 

 

 

 

 

 

 

 

 

Provision for loan losses

 

1,000

 

150

 

1,750

 

350

 

 

 

 

 

 

 

 

 

 

 

Net revenue from earning assets

 

6,426

 

5,081

 

18,268

 

13,733

 

 

 

 

 

 

 

 

 

 

 

Other revenue

 

1,129

 

877

 

3,263

 

2,534

 

 

 

 

 

 

 

 

 

 

 

Salaries and related benefits

 

3,456

 

2,807

 

10,122

 

7,860

 

Occupancy expense

 

381

 

320

 

1,071

 

975

 

Other operating expenses

 

1,498

 

1,288

 

4,774

 

3,832

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

5,335

 

4,415

 

15,967

 

12,667

 

 

 

 

 

 

 

 

 

 

 

Income before provision for taxes

 

2,220

 

1,543

 

5,564

 

3,600

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

914

 

634

 

2,295

 

1,483

 

 

 

 

 

 

 

 

 

 

 

Net income

 

1,306

 

909

 

3,269

 

2,117

 

 

(over)

 

3

 

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

 

Basic

 

$

0.46

 

$

0.35

 

$

1.18

 

$

0.81

 

Diluted

 

$

0.44

 

$

0.34

 

$

1.14

 

$

0.79

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding

 

2,844,800

 

2,629,310

 

2,773,449

 

2,629,602

 

Diluted average shares

 

2,963,586

 

2,676,959

 

2,873,175

 

2,674,977

 

 

 

 

 

 

 

 

 

 

 

RATIO ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on Average Equity (%)

 

15.65

 

13.25

 

14.15

 

10.76

 

Return on Average Assets (%)

 

0.85

 

0.84

 

0.79

 

0.73

 

Efficiency Ratio (%)

 

62.36

 

72.28

 

68.58

 

76.23

 

Assets per Employee ($000s)

 

4,327

 

3,345

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming Assets ($000s)

 

962

 

165

 

 

 

 

 

Reserve for Loan Losses ($000s)

 

7,000

 

5,350

 

 

 

 

 

Nonperforming Assets / Gross Loans (%)

 

0.17

 

0.05

 

 

 

 

 

Reserve for Loan Losses / Nonperforming Assets (%)

 

727.65

 

3242.42

 

 

 

 

 

Reserve for Loan Losses / Gross Loans (%)

 

1.22

 

1.48

 

 

 

 

 

 

This report includes forward-looking statements that involve inherent risks and uncertainties.  A number of important factors could cause actual results to differ materially from those in the forward-looking statements.  Those factors include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which the Company conducts its operations.

 

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