LOS ANGELES, CA — (Marketwire) — 03/30/12 — ProAmérica Bank (OTCQB: PMRA) (PINKSHEETS: PMRA) today reported results of operations for its fourth quarter ended December 31, 2011. Highlights include:
Total Loans at December 31, 2011 grew to $106.9 million, an increase of $25.7 million or 32% from December 31, 2010.
Capital ratios remain well in excess of all minimums required to be “Well Capitalized” by regulatory agencies, with a Tier 1 Leverage Ratio of 16.5% and a Total Risk-Based Capital Ratio of 20.2% at December 31, 2011. Regulatory “Well Capitalized” definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.
Total Assets at December 31, 2011 grew to $129.1 million, an increase of $12.4 million or 11% from December 31, 2010.
Total Deposits at December 31, 2011 grew to $105.8 million, an increase of $8.0 million or 8% from December 31, 2010.
ProAmérica Bank reported a net loss of $1,369,000 for the fourth quarter of 2011 ($0.50 per share) as compared to net income of $18,000 ($0.01 per share) in the fourth quarter of 2010. The Bank reported a net loss of $914,000 ($0.33 per share) for the year ended December 31, 2011 as compared to a loss of $506,000 ($0.18 per share) for the year ended December 31, 2010. The results for the quarter and year ended December 31, 2011 included the impact of a large provision for loan losses of $1,278,000 recorded in the fourth quarter. The provision for loan losses was primarily the result of one problem loan that arose in the fourth quarter.
The Allowance for Loan and Lease Losses represents 2.9% of total loans at December 31, 2011. Nonperforming assets, net of government guaranteed loans, totaled approximately $10.4 million, or 8.1% of assets at December 31, 2011. This represents an increase of $9.8 million over year ago levels. Approximately $5.6 million is paying as agreed. Management believes the Allowance for Loan and Lease Losses is sufficient in light of the higher level of problem loans compared to the previous year.
“We are pleased with the strong growth ProAmérica Bank has continued to show, especially in light of the weak economy,” stated Maria Contreras-Sweet, Executive Chairwoman of ProAmérica Bank.
ProAmérica Bank also reported that John H. Quinn, President and CEO, retired from the Bank effective February 28, 2012, as previously announced. Frank Smith, the current Chief Financial Officer, and Stephen Rolfe, the current Chief Credit Officer, were appointed as Interim Co-CEO and President by the Board of Directors, subject to regulatory approval.
ProAmérica Bank provides a full range of financial services, including credit and deposit products, cash management, and internet banking for businesses and high net worth individuals from its headquarters office at 888 West Sixth Street, Second Floor, Los Angeles, CA 90017. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank-s website at .
NOTE:
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about ProAmérica Bank-s business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: ProAmérica Bank-s timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in ProAmérica Bank-s reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and ProAmérica Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
Maria Contreras-Sweet
Executive Chairwoman
213.787.2802
Frank E. Smith
Interim Co-CEO & President, CFO
213.787.2804
Stephen M. Rolfe
Interim Co-CEO & President, CCO
213.787.2831