Exhibit 99.1
March 12, 2010
NEWS RELEASE
FOR IMMEDIATE RELEASE
Contacts: |
| John C. Hansen |
| (805) 466-7087 |
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| President and Chief Executive Officer |
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| James M. Cowan |
| (805) 466-7087 |
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| Executive Vice President and Chief Financial Officer |
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| Santa Lucia Bancorp |
| (805) 466-7087 |
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| www.santaluciabank.com |
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COMPANY ANNOUNCES REVISED RESULTS FOR THE YEAR ENDING DECEMBER 31, 2009 REPORTING A LARGER NET LOSS
SANTA LUCIA BANCORP (ATASCADERO, CALIFORNIA) (OTC Bulletin Board: SLBA.OB) today announced revised results for 2009. The revision resulted from changes made before the Company’s financial statements were filed and resulted from the deterioration of one additional loan subsequent to year end but which was required to be included in the results for 2009. The Company’s net loss for the year was $1,825,000 (loss per common share of $1.05) rather than the $1,333,000 (loss per common share of $.80), previously announced on February 1, 2010. This announcement modifies and supplements the February 1, 2010 announcement.
The loan is an offsite development loan for a mixed use project in Atascadero. The Bank’s portion of the loan, after a participation to another bank, was $2,160,000. The development has not progressed and the borrower has now defaulted in making required payments. The Bank is currently exploring options (including legal) at this time. The Bank took a charge off on this loan of $756,491, included in the 2009 results, representing a write down of the loan to the fair value of the collateral supporting its portion of the loan.
The Bank increased the provision for loan losses to $5,460,000 during the twelve month period ending December 31, 2009 compared to a provision of $975,000 during the same period in 2008. The allowance for loan losses to total loans increased to $3,386,000 or 1.67% at December 31, 2009 compared to $2,310,000 or 1.22% at December 31, 2008. Non-performing assets increased to $6,835,000 at December 31, 2009 compared to $1,614,000 for the same period in 2008.
The Company anticipates filing its full financial information for the year ended December 31, 2009, today with the filing of its Annual Report to Shareholders.
Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the current financial crisis and recession in United States and foreign financial markets and the response of government and bank regulators thereto, increased profitability, continued growth, the Bank’s beliefs as to the adequacy of its existing and anticipated allowances for loan losses, beliefs and expectations regarding actions that may be taken by regulatory authorities having oversight over the Company’s or Bank’s operations, interest rates and financial policies of the United States government, general economic conditions and California’s energy crisis. Additional information on these and other factors that could affect financial results are included in the Company’s Securities and Exchange Commission filings.
When used in this release, the words or phrases such as “will likely result in”, “management expects that”, “will continue”, “is anticipated”, “estimate”, “projected”, or similar expressions are intended to identify “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 (PSLRA). Readers should not place undue reliance on the forward-looking statements, which reflect management’s view only as of the date hereof. Santa Lucia Bancorp undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances. This statement is included for the express purpose of protecting Santa Lucia Bancorp under PSLRA’s safe harbor provisions.
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| Year Ended December 31, |
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| 2009 |
| 2008 |
| 2007 |
| 2006 |
| 2005 |
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| (dollars in thousands except per share data) |
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Summary of Operations: |
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Interest Income |
| $ | 13,851 |
| $ | 15,276 |
| $ | 17,719 |
| $ | 17,027 |
| $ | 13,546 |
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Interest Expense |
| 3,021 |
| 3,877 |
| 4,824 |
| 3,577 |
| 1,984 |
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Net Interest Income |
| 10,830 |
| 11,399 |
| 12,895 |
| 13,450 |
| 11,562 |
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Provision for Loan Loss |
| 5,460 |
| 975 |
| — |
| 240 |
| 300 |
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Net Interest Income After Provision for Loan Losses |
| 5,370 |
| 10,424 |
| 12,895 |
| 13,210 |
| 11,262 |
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Noninterest Income |
| 1,236 |
| 1,111 |
| 1,071 |
| 1,010 |
| 1,052 |
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Noninterest Expense |
| 9,865 |
| 9,763 |
| 9,029 |
| 8,590 |
| 7,808 |
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Income Before Income Taxes |
| (3,259 | ) | 1,772 |
| 4,937 |
| 5,630 |
| 4,506 |
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Income Taxes |
| (1,434 | ) | 633 |
| 1,934 |
| 2,242 |
| 1,759 |
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Net Income (loss) |
| $ | (1,825 | ) | $ | 1,139 |
| $ | 3,003 |
| $ | 3,388 |
| $ | 2,747 |
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Cash Dividends Paid |
| $ | 483 |
| $ | 963 |
| $ | 871 |
| $ | 768 |
| $ | 730 |
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Per Common Share Data: |
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Net Income - Basic |
| $ | (1.05 | ) | $ | 0.59 |
| $ | 1.55 |
| $ | 1.77 |
| $ | 1.46 |
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Net Income - Diluted |
| $ | (1.05 | ) | $ | 0.58 |
| $ | 1.51 |
| $ | 1.68 |
| $ | 1.38 |
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Dividends |
| $ | 0.25 |
| $ | 0.50 |
| $ | 0.45 |
| $ | 0.40 |
| $ | 0.388 |
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Book Value |
| $ | 9.58 |
| $ | 11.21 |
| $ | 11.01 |
| $ | 9.93 |
| $ | 8.35 |
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Common Outstanding Shares: |
| 1,961,334 |
| 1,923,053 |
| 1,924,873 |
| 1,928,097 |
| 1,899,543 |
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Statement of Financial Condition Summary: |
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Total Assets |
| $ | 269,923 |
| $ | 251,880 |
| $ | 248,640 |
| $ | 240,738 |
| $ | 231,532 |
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Total Deposits |
| 238,723 |
| 212,317 |
| 212,718 |
| 212,988 |
| 206,879 |
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Total Net Loans |
| 198,099 |
| 186,632 |
| 166,619 |
| 169,680 |
| 152,563 |
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Allowance for Loan Losses |
| 3,386 |
| 2,310 |
| 1,673 |
| 1,654 |
| 1,470 |
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Total Shareholders’ Equity |
| 23,030 |
| 25,551 |
| 21,189 |
| 19,137 |
| 15,866 |
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Selected Ratios: |
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Return on Average Assets |
| -0.69 | % | 0.46 | % | 1.22 | % | 1.42 | % | 1.21 | % | |||||
Return on Average Equity |
| -7.18 | % | 5.19 | % | 14.87 | % | 19.45 | % | 18.67 | % | |||||
Average Loans as a Percentage of Average Deposits |
| 87.82 | % | 83.84 | % | 76.11 | % | 79.74 | % | 69.90 | % | |||||
Allowance for Loan Losses to Total Loans |
| 1.67 | % | 1.22 | % | 0.99 | % | 0.96 | % | 0.95 | % | |||||
Company |
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Tier I Capital to Average Assets |
| 10.28 | % | 11.89 | % | 10.50 | % | 10.00 | % | — |
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Tier I Capital to Risk-Weighted Assets - |
| 12.54 | % | 14.41 | % | 13.20 | % | 12.70 | % | — |
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Total Capital to Risk-Weighted Assets - |
| 13.87 | % | 15.92 | % | 14.60 | % | 14.40 | % | — |
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Bank |
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Tier I Capital to Average Assets |
| 9.71 | % | 11.44 | % | 9.85 | % | 9.11 | % | 7.16 | % | |||||
Tier I Capital to Risk-Weighted Assets - |
| 11.85 | % | 13.65 | % | 12.33 | % | 11.43 | % | 9.33 | % | |||||
Total Capital to Risk-Weighted Assets - |
| 13.18 | % | 15.17 | % | 13.80 | % | 13.13 | % | 11.34 | % |