LOS ANGELES, CA — (Marketwire) — 10/31/12 — ProAmérica Bank (OTCQB: PMRA) today reported Net Income of $285,000 for the third quarter of 2012, or 10 cents per share, equal to the third quarter of 2011. For the first nine months of 2012, the Bank reported Net Income of $722,000, or 26 cents per share, compared to Net Income of $455,000, or 17 cents per share, for the first nine months of 2011. “Once again, we are pleased that our core earnings continue on a strong growth pattern as reflected in our nine-month year over year 59% increase in Net Income,” stated L. Bruce Mills, Jr., President and CEO.
“ProAmérica Bank has had an impact in the communities it serves and on the national landscape exemplifying the entrepreneurial fortitude of the small business and Latino communities. The Board is pleased that the commitment to its mission shared by investors, clients and the community has parlayed into solid financial performance,” said Executive Chairwoman Maria Contreras-Sweet. She added, “ProAmérica achieved continued growth with a new high of $146 million in Total Assets, attesting to the strength of the ProAmérica value proposition and the quality of our team. We have expanded Total Loans and Deposits by 6% and 15%, respectively. Our team-s shared commitment to our mission has helped propel our continued growth and build a value-driven Latino-owned banking franchise.”
Three-month Net Income of $285,000 — level with the quarter ended September 30, 2011.
Total Assets at September 30, 2012 increased to $146.0 million, an increase of $16.0 million or 12% from September 30, 2011.
Total Loans at September 30, 2012 increased to $105.7 million, an increase of $5.6 million or 6% from September 30, 2011.
Total Deposits at September 30, 2012 increased to $122.6 million, an increase of $16.0 million or 15% from September 30, 2011.
Capital ratios are in excess of all minimums required to be “Well Capitalized” by regulatory agencies, with a Tier 1 Leverage Ratio of 15.4% and a Total Risk-Based Capital Ratio of 20.1% at September 30, 2012. Regulatory “Well Capitalized” definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.
For the 2012 third quarter, Net Interest Income before the Provision for Loan Losses declined $49,000 compared to the 2011 third quarter. The Net Interest Margin declined to 4.2% for the quarter ended September 30, 2012, down from 4.9% for the 2011 third quarter. The decline is the result of the higher level of Nonperforming Assets discussed below. Without the impact of the Nonperforming Assets, the Net Interest Margin would have increased for the quarter.
There was no Provision for Loan Losses required in the third quarters of 2012 or 2011.
Non-interest Income increased $68,000, or 117% in 2012 versus 2011 as a result of a higher volume of SBA loans sold. Third quarter 2012 Non-interest Income included a $67,000 gain on the sale of SBA loans as compared to none in the same period of 2011.
Non-interest Expense for the 2012 third quarter was $1,300,000, compared with $1,281,000 for the 2011 third quarter, an increase of 1%. The increase resulted from higher Salaries and Employee Benefits expense and other Operating Expense partially offset by lower Occupancy Expense. The efficiency ratio was 82.1% for the 2012 third quarter, compared with 81.8% for the same period last year.
Loans, before the allowance for loan losses, grew 6% to $105.7 million at September 30, 2012 compared to $97.9 million at September 30, 2011. Other Real Estate Owned increased to $3.9 million in 2012 as a result of the foreclosure of a single loan in April 2012. The property is expected to close escrow in the fourth quarter 2012. There was no Other Real Estate Owned in 2011.
Total Deposits increased 15% to $122.6 million at September 30 2012, from $106.7 million at September 30, 2011.
Nonperforming Assets (the sum of loans past due 90 days and accruing, nonaccrual loans and other real estate owned) increased to 7.1% of total assets at September 30, 2012, compared with 1.0% at September 30, 2011. All of the nonaccrual loans are current in their payments and many are expected to return to accrual status by the end of 2012.
The Allowance for Loan Losses was $2.9 million, or 2.7% of loans, at September 30, 2012, compared with $2.1 million, or 2.1% of loans, at September 30, 2011. There were no net loan charge-offs for the 2012 third quarter as compared to 0.4% of loans for the 2011 third quarter.
Total Shareholders- Equity declined to $22.3 million at September 30, 2012 from $22.9 million at September 30, 2011. The Bank-s book value available to common shareholders per common share decreased to $6.75 at September 30, 2012 from $6.96 at September 30, 2011.
At September 30, 2012, the Bank-s Tier 1 Leverage Capital Ratio was 15.4% versus 18.4% at September 30, 2011. The Total Risk-based Capital Ratio was 20.1% as of September 30, 2012 as compared to 22.6% at September 30, 2011.
Mills concluded, “Now immersed in the culture and energetic environment at ProAmérica Bank, I am proud to be a part of this talented group of seasoned bankers who work extremely hard to deliver the everyday successes that enable our strong organic growth. We have expanded our team, further invigorating the organization and strengthening our unwavering pursuit to build a strong franchise that serves its customers with excellence.”
ProAmérica Bank provides a full range of financial services, including credit and deposit products, SBA loan products, cash management, and internet banking for businesses, professionals, nonprofits and high net worth individuals from its headquarters office at 888 West Sixth Street, Third Floor, Los Angeles, CA 90017-2728. 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
Chairwoman
213.787.2802
L. Bruce Mills, Jr.
CEO / President
213.787.2803
Frank E. Smith
CFO
213.787.2804