-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A7ROdraCcAWhq5fGCfkbWnf0BAk5gRq8UoQd/BiTwIkJpc/JhZ2H5zBdp3nFuNRw m0UMkxhtcIIMgFZ+X1kWEQ== /in/edgar/work/0000912057-00-031515/0000912057-00-031515.txt : 20000712 0000912057-00-031515.hdr.sgml : 20000712 ACCESSION NUMBER: 0000912057-00-031515 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20000711 ITEM INFORMATION: ITEM INFORMATION: FILED AS OF DATE: 20000711 FILER: COMPANY DATA: COMPANY CONFORMED NAME: NATIONAL MERCANTILE BANCORP CENTRAL INDEX KEY: 0000714801 STANDARD INDUSTRIAL CLASSIFICATION: [6022 ] IRS NUMBER: 953819685 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13015 FILM NUMBER: 671200 BUSINESS ADDRESS: STREET 1: 1840 CENTURY PARK EAST CITY: LOS ANGELES STATE: CA ZIP: 90067 BUSINESS PHONE: 3102772265 MAIL ADDRESS: STREET 1: 1840 CENTURY PARK EAST CITY: LOS ANGELES STATE: CA ZIP: 90067 8-K 1 a8-k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------------- Form 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 11, 2000 NATIONAL MERCANTILE BANCORP (Exact name of Registrant as Specified in Its Charter) California 0-15982 95-3819685 ---------- ------- ---------- (State or Other (Commission (IRS Employer Jurisdiction of Incorporation) File Number) Identification No.) 1840 Century Park East Los Angeles, California 90067 (Address of Principal Executive Offices) (310) 277-2265 ---------------------------------------------------- (Registrant's Telephone Number, Including Area Code) NA ------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) 1 ITEM 5. OTHER EVENTS Reference is made to the press release of the Registrant issued on July 11, 2000 which contains information meeting the requirements of this Item 5 and which is incorporated herein by this reference. A copy of the press release is attached to this Form 8-K as Exhibit 99.1. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS (c) EXHIBITS 99.1 Press release issued July 11, 2000. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized. NATIONAL MERCANTILE BANCORP Dated: July 11, 2000 By: /s/ JOSEPH W. KILEY, III ---------------------------------- Joseph W. Kiley, III Chief Financial Officer 3 EXHIBIT INDEX EXHIBIT NO. DESCRIPTION OF EXHIBIT - ----------- ---------------------- 99.1 Press release issued July 11, 2000. 4 EX-99.1 2 ex-99_1.txt EXHIBIT 99.1 EXHIBIT 99.1 Contact: Scott A. Montgomery Joseph W. Kiley III President/CEO Executive Vice President & National Mercantile Bancorp Chief Financial Officer (310) 282-6778 (310) 282-6703 FOR IMMEDIATE RELEASE NATIONAL MERCANTILE BANCORP ANNOUNCES RECORD NET INCOME FOR THE SECOND QUARTER AND FOR THE SIX MONTHS ENDED JUNE 30, 2000 Los Angeles, California, July 11, 2000 -- National Mercantile Bancorp (the "Company") (NASDAQ: MBLA Common Stock; MBLAP - Preferred Stock), parent company of Mercantile National Bank ("Bank"), today reported net income of $1.2 million for the second quarter ended June 30, 2000, or $1.28 basic earnings per share ("EPS"), while diluted EPS, when considering the Company's convertible preferred stock, warrants and options, is $0.45, as compared to net income of $245,000 or $0.36 basic EPS and $0.10 diluted EPS for the second quarter ended June 30, 1999. During the second quarter net income consisted of $586,000 in core earnings and $576,000 as a reverse provision for credit losses ("Reverse Provision") in recognition of the level of the allowance for loan and lease losses ("ALLL") generated by a loan recovery. Without the Reverse Provision, core earnings increased to record levels up 139.2% to $586,000 or $0.65 basic EPS, while diluted EPS was $0.23 during the second quarter of 2000 as compared to the same quarter in 1999 of $245,000 or $0.36 basic EPS, while diluted EPS was $0.10. For the six months ended June 30, 2000, net income increased $1.2 million or 378.8% to $1.5 million or $1.80 basic EPS, while diluted EPS was $0.61, as compared to net income of $321,000 1 or $0.47 basic EPS, while diluted EPS was $0.13 for the six months ended June 30, 1999. Excluding the Reverse Provision, core earnings for the six months ended June 30, 2000 increased 199.4% to $961,000 or $1.13 basic EPS, while diluted EPS was $0.38 as compared to core earnings of $321,000 or $0.47 basic EPS, and diluted EPS was $0.13 for the six months ended June 30, 1999. Scott Montgomery, President and Chief Executive Officer of the Company and the Bank, commented, "We are extremely pleased to report record levels of net income in our twelfth consecutive quarter of profitability , both before and after the effects of the Reverse Provision. The increase in net income was driven by strong loan demand up 54.5% or $33.2 million, a 15.2% increase in income from investment securities and a Reverse Provision of $576,000. Including the Reverse Provision, return on average assets ("ROAA") increased to 2.77% for the second quarter and to 1.86% for the six months ended June 30, 2000, while return on average equity ("ROAE") was 38.7% for the second quarter and 26.3% for the six month period. Excluding the Reverse Provision, ROAA increased to 1.40%, as compared to an ROAA of 0.69% during the same quarter in 1999, while ROAE increased to 19.53% as compared to 7.48% during the second quarter of 1999. For the six months ended June 30, 2000 as compared to the same period in 1999 and excluding the Reverse Provision, ROAA increased to 1.16% from 0.46% while ROAE increased to 16.42% from 4.90%." He continued, "These results are very gratifying and represent the best performance for the Company since it was founded in 1982. We are very proud of the team of Mercantile bankers who produced these outstanding results." LOAN LOSS RECOVERY In May of 2000, the Bank announced a net recovery of approximately $1.3 million on a loan charged off in January 1995. Generally Accepted Accounting Principles ("GAAP") require that recoveries of loans previously charged off be recognized as an increase to the ALLL. The Company has determined, based on reviewing the adequacy of the resulting level of the ALLL, that it would not be necessary to retain the entire recovery in the ALLL in order to absorb estimated credit losses. Accordingly, the Company has determined that approximately $700,000 of the $1.3 million will remain in the ALLL. However, credit quality is affected by many factors beyond the Company's control, including local, regional and national economic activity. Facts 2 may exist which are not known today, which may adversely affect the likelihood of repayment of various loans in the Company's portfolio. Therefore, no assurance can be given that the Bank will not sustain loan losses materially in excess of the ALLL even at this increased level. Accordingly, $576,000 has been recognized as income through a reverse provision to the ALLL which had the effect of increasing earnings during the second quarter of 2000. As a result of the continuing effect of the Company's net operating loss carryforward ("NOL"), the amount reversed and recognized as earnings will not be taxable (except for alternative minimum tax). Further, the amount reversed, coupled with substantially increased core earnings increases the Company's book value and legal lending limit, enabling the Company to expand its client services. ASSETS AND LIABILITIES Total assets increased 16.4% or $25.1 million to $177.8 million at June 30, 2000 as compared to $152.7 million at June 30, 1999. The growth in assets was primarily due to a $33.2 million or 54.5% increase in loans receivable and a $3.3 million or 5.0% increase in investment securities. The increase in liabilities was primarily due to a $24.3 million increase in other borrowed funds. SHAREHOLDERS' EQUITY Shareholders' equity increased 8.9% or $1.1 million to $13.1 million at June 30, 2000 as compared to $12.0 million at June 30, 1999. The increase was the result of a larger increase in net income, than the decline in equity caused by the estimated fair value adjustment in the investment securities portfolio, caused by increased market interest rates during the latter part of 1999 and the first six months of 2000. GAAP requires that securities classified as available for sale ("AFS"), be recorded at estimated fair value with the resulting unrealized gains or losses reflected as a separate component of shareholders' equity. If the investment securities were classified as held to maturity, no adjustment to equity, under GAAP, based on estimated fair value would have been required. The Bank carries its investment securities as AFS, as do many 3 banks, in order to provide maximum flexibility, although the Bank generally intends to hold its investment securities to maturity. Book value per share increased to $5.34 per share at June 30, 2000 from $4.86 per share at June 30, 1999. The increase is the result of the estimated fair market value adjustment to equity relating to securities classified as AFS, which was smaller than the increase in year to date net income, discussed previously. Regulatory Accounting Principles do not require an estimated fair value adjustment to equity for investment securities classified as AFS, for purposes of calculating regulatory capital ratios. Without the estimated fair value adjustment, book value per share at June 30, 2000 was $6.15 per share, which includes all preferred shares on an "as if" converted basis, as compared to $5.39 at June 30, 1999, or an increase of 14.1%. The Company continues to benefit from the NOL, which was $20.3 million of carryforward benefit for Federal income taxes and $4.8 million of carryforward benefit for State income taxes at December 31, 1999. The carryforward has the effect of substantially reducing income taxes which adds to the growth in equity. The Company's Federal net operating loss carryforward is available through 2006 and then begins to expire in 2007, while the State tax carryforwards continue to expire, but remain available in reducing amounts through 2002. As a result, the provision for income taxes, including the loan recovery, representing alternative minimum tax, was only $26,000 for the six months ended June 30, 2000. INTEREST AND FEE INCOME During the second quarter of 2000, total interest income increased 32.3% to $3.4 million from $2.5 million during the second quarter of 1999. Interest income from investment securities increased 17.5% to $1.2 million from $1.0 million during the second quarter of 1999. Other operating income increased by 96.0% from $149,000 during the quarter ended June 30, 1999 to $292,000 during the quarter ended June 30, 2000. The primary reason for the increase in non-interest income is attributable to a higher volume of fees from international and investment services, increased deposit related income, as well as gains on the sale of other real 4 estate owned ("OREO") property and investment securities during the second quarter of 2000. For the six months ended June 30, 2000 total interest income increased 29.8% or $1.5 million to $6.5 million from $5.0 million at June 30, 1999. Other operating income increased 57.8% or $178,000 to $486,000 from $308,000. Net interest margin ("NIM") increased to 5.71% during the second quarter of 2000, up from 5.26% during the first quarter of 2000 and from 5.16% during the fourth quarter of 1999. OPERATING EXPENSES Other operating expenses increased 23.5% or by $378,000 during the second quarter of 2000, as compared to the second quarter of 1999. The increase was primarily the result of an increase in staff and benefits costs related to initiating two new departments and increasing staff in existing departments. In addition, furniture and equipment expense increased as did data processing expenses. HEALTHCARE AND COMMUNITY BASED NONPROFIT ORGANIZATIONS DEPARTMENTS Both new departments, initiated in January of 2000, have met or exceeded expectations. Healthcare loans outstanding are in excess of $6 million at June 30, 2000 with deposit balances of over $500,000, while the Community Based Nonprofit Department deposit balances are approximately $500,000 at June 30, 2000. CREDIT QUALITY Total non-performing assets of $1.4 million at June 30, 1999 were reduced by 48.0% or $689,000 to $746,000 at June 30, 2000. During the first six months of 2000 loan charge-offs were $107,000, while recoveries were $1.3 million, resulting in net recoveries of $1.2 million. Also, as of June 30, 2000, the Bank has sold all of its OREO property and for the first time in many years has no OREO property on its books. The ALLL was augmented during the second quarter by approximately $700,000 as a result of the large loan recovery offset by the Reverse Provision discussed previously. The net 5 ALLL balance increased to $2.5 million or 2.71% at June 30, 2000 from $1.9 million or 2.42% at March 31, 2000 and from $1.9 million or 2.57% at December 31, 1999. Coverage ratios improved due to the increase in ALLL and the continued reduction in non-performing and classified assets. Total classified assets declined 47.7% or by $902,000 from $1.9 million at June 30, 1999, to $1.0 million at June 30, 2000. The decrease was primarily due to the reduction in non-performing loans and the sale of OREO property. This press release contains statements which constitute forward looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 that involve risk and uncertainties. Actual results may differ materially from the results in these forward looking statements. Factors that might cause such a difference include, among other things, fluctuations in interest rates, changes in economic conditions or governmental regulation, credit quality and other factors discussed in the Company's Annual Report on Form 10-KSB for the year ended December 31, 1999. National Mercantile Bancorp is the holding company for Mercantile National Bank, member FDIC, a business bank located in Century City in West Los Angeles, California. The Bank offers a wide range of financial services to the entertainment industry, the professional, healthcare and executive markets, community-based non-profit organizations, escrow companies and the business banking market. "Redefining Business Banking" ##### 6 National Mercantile Bancorp June 30, 2000 - FINANCIAL SUMMARY ($ in 000's, except share data)
- ----------------------------------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------------------------------- SELECTED FINANCIAL June 30, March 31, September 30, June 30, CONDITION DATA: 2000 2000 December 31, 1999 1999 December 31, (Unaudited) (Unaudited) 1999 (Unaudited) (Unaudited) 1998 ----------- ------------ ----------- ------------ ----------- ------------ Cash and Due from Banks ..................... $ 12,472 $ 10,437 $ 5,789 $ 7,031 $ 7,552 $ 5,405 Investments - Interest Earning .............. 71,561 79,126 75,685 77,475 83,837 78,649 Loans Commercial ......................... 90,580 76,736 71,581 67,621 58,606 53,563 Real Estate Construction and Land .. 715 105 6 -- -- -- Consumer and Others ................ 3,013 2,545 2,496 2,410 2,434 3,707 Deferred Loan Fees, Net ...... (352) (252) (240) (238) (236) (298) --------- --------- --------- --------- --------- -------- Total ........................ 93,956 79,134 73,843 69,793 60,804 56,972 Allowance for Credit Losses .. (2,546) (1,917) (1,896) (2,162) (2,056) (2,144) --------- --------- --------- --------- --------- -------- Net Loans ......................... 91,410 77,217 71,947 67,631 58,748 54,828 Other Assets ................................ 2,337 2,652 2,732 2,718 2,576 2,741 --------- --------- --------- --------- --------- -------- Total Assets ................................ $ 177,780 $ 169,432 $ 156,153 $ 154,855 $152,713 $141,623 ========= ========= ========= ========= ========= ======== Deposits Demand, Noninterest Bearing ......... $ 52,883 $ 61,707 $ 53,827 $ 44,113 $ 48,160 $ 47,375 NOW ................................. 9,779 9,726 8,669 7,129 7,494 6,835 MMDA ................................ 33,022 36,024 25,376 31,077 33,705 21,652 Savings ............................. 1,320 1,321 3,079 1,066 1,132 2,063 Time Certificates GREATER THAN $100 . 18,060 19,528 19,488 27,619 18,404 14,966 Time Certificates LESS THAN $100 .... 6,248 5,640 6,545 8,673 11,163 14,081 --------- --------- --------- --------- -------- -------- Total Deposits .............. 121,312 133,946 116,984 119,677 120,058 106,972 Securities Sold under Agreements to Repurchase and Other Borrowed Funds ..... 41,800 22,500 26,200 21,521 19,500 20,300 Other Liabilities ........................... 1,541 1,390 1,382 1,522 1,105 1,093 Shareholders' Equity-Tier 1 ................. 15,600 14,437 14,062 13,649 13,369 13,047 Accumulated Other Comprehensive (Loss)Income (2,473) (2,841) (2,475) (1,514) (1,319) 211 --------- --------- --------- --------- --------- -------- Total Liabilities and Stockholders' Equity .. $ 177,780 $ 169,432 $ 156,153 $ 154,855 $ 152,713 $ 141,623 ========= ========= ========= ========= ========= ========= Average Quarterly Assets Holding Company .................... $ 168,805 $ 163,095 $ 154,671 $ 150,358 $ 142,705 $ 149,241 Bank ............................... $ 167,709 $ 162,002 $ 153,631 $ 148,575 $ 139,327 $ 146,080 Regulatory Capital Holding Company .................... $ 15,600 $ 14,437 $ 14,062 $ 13,649 $ 13,369 $ 13,047 Bank ............................... $ 14,437 $ 13,301 $ 12,949 $ 12,556 $ 9,910 $ 9,728 Non-Performing Assets Non-Accrual Loans .................. $ 484 $ 580 $ 932 $ 967 $ 789 $ 1,505 Loans 90 Days P/D & Accruing ....... 262 -- -- -- 88 -- OREO and Other Non-performing Assets -- 441 532 558 558 593 --------- --------- --------- --------- --------- -------- Total Non-Performing Assets ................. $ 746 $ 1,021 $ 1,464 $ 1,525 $ 1,435 $ 2,098 ========= ========= ========= ========= ========= ========= Classified Assets Substandard Loans .................. $ 988 $ 1,102 $ 1,169 $ 1,145 $ 1,177 $ 2,001 Doubtful Loans ..................... -- -- 16 384 331 41 --------- --------- --------- --------- --------- -------- Total Classified Loans ............. $ 988 $ 1,102 $ 1,185 $ 1,529 $ 1,508 $ 2,042 OREO ............................... -- 241 382 382 382 417 --------- --------- --------- --------- --------- -------- Total Classified Assets ..................... $ 988 $ 1,343 $ 1,567 $ 1,911 $ 1,890 $ 2,459 ========= ========= ========= ========= ========= ========= - ----------------------------------------------------------------------------------------------------------------------------------- SELECTED STATEMENT OF June 30, March 31, September 30, June 30, FINANCIAL CONDITION RATIOS: 2000 2000 December 31, 1999 1999 December 31, (Unaudited) (Unaudited) 1999 (Unaudited) (Unaudited) 1998 ----------- ----------- ----------- ------------ ----------- ------------ Loans to Deposits Ratio ...................... 77.45% 59.08% 63.12% 58.32% 50.65% 53.26% Ratio of Allowance for Loan Losses to: Total Loans .......................... 2.71% 2.42% 2.57% 3.10% 3.38% 3.76% Total Non-Performing Assets .......... 341.29% 187.76% 129.51% 141.77% 143.28% 102.19% Total Classified Assets .............. 257.69% 142.74% 121.00% 113.13% 108.78% 87.19% Earning Assets to Total Assets ............... 93.10% 93.41% 95.76% 95.10% 94.71% 95.76% Earning Assets to Interest-Bearing Liabilities 150.16% 167.05% 167.34% 151.69% 158.25% 169.74% Capital Ratios Holding Company: Total Risk-Based Capital ............. 15.94% 16.57% 17.47% 17.50% 17.80% 18.65% Tier 1 Risk-Based Capital ............ 14.68% 15.32% 16.21% 16.23% 16.53% 17.38% Tier 1 Leverage ...................... 9.08% 8.70% 8.98% 8.97% 9.36% 8.78% Capital Ratios Bank : Total Risk-Based Capital ............. 14.96% 15.49% 16.29% 16.34% 14.00% 14.75% Tier 1 Risk-Based Capital ............ 13.70% 14.23% 15.03% 15.07% 12.73% 13.48% Tier 1 Leverage ...................... 8.46% 8.07% 8.32% 8.35% 7.10% 6.69% Risk Weighted Assets: Holding Company .................... $ 106,298 $ 94,265 $ 86,751 $ 84,104 $ 80,865 $ 75,055 Bank ............................... $ 105,416 $ 93,485 $ 86,125 $ 83,300 $ 77,852 $ 72,189 Book Value per Share (1) (2) ................. $ 5.34 $ 4.85 $ 4.68 $ 4.89 $ 4.86 $ 5.35 Total Shares Outstanding (2) ................. 2,477,443 2,477,195 2,477,195 2,477,195 2,477,195 2,477,048 (1) Includes dilutive options and warrants. (2) Includes assumed conversion of 785,425 shares of Preferred Stock into 1,570,850 shares of Common Stock. - -----------------------------------------------------------------------------------------------------------------------------------
7 National Mercantile Bancorp June 30, 2000 - FINANCIAL SUMMARY ($ in 000's, except share data)
- ----------------------------------------------------------------------------------------------------------------------------------- SELECTED STATEMENT OF OPERATIONS DATA AND RATIOS: Second First Fourth Third Second Quarter Quarter Quarter Quarter Quarter QUARTERLY DATA (1): 2000 2000 1999 1999 1999 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited) ----------- ----------- ----------- ----------- ----------- Interest Income ........................................ $ 3,365 $ 3,091 $ 2,867 $ 2,705 $ 2,544 Interest Expense ....................................... 1,063 1,047 938 975 830 ----------- ----------- ----------- ----------- ----------- Net Interest Income before Provision for Loan Losses ... 2,302 2,044 1,929 1,730 1,714 Provision for Loan Losses ............................. (576) -- -- -- -- ----------- ----------- ----------- ----------- ----------- Net Interest Income after Provision for Loan Losses ......................... 2,878 2,044 1,929 1,730 1,714 Net gain (loss) on Sale of Securities Available-for-Sale 18 -- -- -- (1) Gain on Sale of OREO ................................... 59 10 -- -- -- Other Operating Income ................................. 215 184 193 197 150 Other Operating Expense ................................ 1,989 1,856 1,682 1,639 1,611 ----------- ----------- ----------- ----------- ----------- Net Income before Provision for Income Taxes ...................................... 1,181 382 440 288 252 Provision for Income Taxes ............................. 19 7 27 8 7 ----------- ----------- ----------- ----------- ----------- Net Income ............................................. $ 1,162 $ 375 $ 413 $ 280 $ 245 =========== =========== =========== =========== =========== Basic Earnings Per Share ............................... $ 1.28 $ 0.47 $ 0.61 $ 0.41 $ 0.36 Diluted Earnings Per Share (2) ......................... $ 0.45 $ 0.15 $ 0.17 $ 0.11 $ 0.10 Weighted Avg Common Shares O/S (3)(4)................... 906,576 798,318 677,195 677,195 677,108 Return on Quarterly Average Assets ..................... 2.77% 0.92% 1.06% 0.74% 0.69% Return on Quarterly Average Equity ..................... 38.74% 13.15% 13.67% 9.44% 7.48% Net Interest Margin - Avg Earning Assets ............... 5.71% 5.26% 5.16% 4.74% 5.10% Operating Expense Ratio ................................ 4.74% 4.58% 4.31% 4.32% 4.53% Efficiency Ratio ....................................... 76.68% 82.93% 79.26% 85.05% 86.48% (1) Operating ratios are annualized. (2) Includes the dilutive potential Common shares from assumed conversions of Preferred Stock, Options and Warrants. (3) Shares used to compute Basic Earnings per share. (4) Increase is due to conversion of Preferred Stock into Common Stock. - ----------------------------------------------------------------------------------------------------------------------------------- FOR THE SIX MONTHS ENDED JUNE 30: (Unaudited) 2000 1999 1998 ------------ ----------- ---------- Interest Income $ 6,456 $ 4,973 $ 4,730 Interest Expense 2,110 1,645 1,601 ------------ ----------- ---------- Net Interest Income before Provision for Loan Losses 4,346 3,328 3,129 Provision for Loan Losses (576) -- -- ------------ ----------- ---------- Net Interest Income after Provision for Loan Losses 4,922 3,328 3,129 Net Gain (Loss) on Sale of Securities Available-for-Sale 18 (1) 38 Gain on Sale of OREO and Fixed Assets 69 -- 68 Other Operating Income 399 309 340 Other Operating Expense 3,845 3,303 3,234 ------------ ----------- ---------- Net Income (Loss) before Provision for Income Taxes 1,563 333 341 Provision for Income Taxes 26 12 2 ------------ ----------- ---------- Net Income (Loss) $ 1,537 $ 321 $ 339 ============ =========== ========== Basic Earnings Per Share $ 1.80 $ 0.47 $ 0.50 Diluted Earnings Per Share (1) $ 0.61 $ 0.13 $ 0.13 Weighted Avg Common Shares O/S (2) 852,447 677,078 677,074 Return on Average Assets 1.86% 0.46% 0.55% Return on Average Equity 26.27% 4.90% 5.41% Net Interest Margin - Avg Earning Assets 5.49% 5.08% 5.39% Operating Expense Ratio 4.64% 4.76% 5.26% Efficiency Ratio 79.57% 90.84% 90.46% (1) Includes the dilutive potential Common shares from assumed conversions of Preferred Stock, Options and Warrants. (2) Shares used to compute Basic Earnings per share.
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