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 |
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|
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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1
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
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| (000’s omitted) |
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As of September 30 |
| 2003 |
| 2002 |
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ASSETS: |
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Cash and due from banks |
| $ | 26,491 |
| $ | 25,734 |
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Investment securities |
| 4,854 |
| 2,733 |
| ||
Funds sold |
| 25,820 |
| 22,975 |
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Federally guaranteed loans |
| 11,225 |
| 16,826 |
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Other loans, net |
| 555,516 |
| 338,855 |
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Premises and equipment |
| 1,768 |
| 1,531 |
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Other real estate owned |
| 0 |
| 0 |
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Other assets |
| 14,733 |
| 12,781 |
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Total assets |
| $ | 640,407 |
| $ | 421,435 |
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LIABILITIES AND CAPITAL: |
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Demand deposits |
| $ | 234,265 |
| $ | 128,860 |
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Savings deposits |
| 28,168 |
| 23,792 |
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Money market deposits |
| 230,511 |
| 164,562 |
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Time deposits |
| 93,374 |
| 59,427 |
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Total deposits |
| 586,318 |
| 376,641 |
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Funds purchased |
| 0 |
| 423 |
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Trust securities |
| 12,500 |
| 12,500 |
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Other liabilities |
| 8,012 |
| 4,996 |
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Total liabilities |
| 606,830 |
| 394,560 |
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Stated capital |
| 15,776 |
| 12,872 |
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Retained earnings |
| 17,801 |
| 14,003 |
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Net unrealized gains (losses) on available-for-sale securities |
| 0 |
| 0 |
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Total capital |
| 33,577 |
| 26,875 |
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Total liabilities and capital |
| $ | 640,407 |
| $ | 421,435 |
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Book value per share outstanding |
| $ | 11.79 |
| $ | 10.22 |
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Total shares outstanding |
| 2,846,779 |
| 2,630,039 |
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2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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| (000’s omitted) |
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| Three Months Ended |
| Nine Months Ended |
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| 2003 |
| 2002 |
| 2003 |
| 2002 |
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Interest and fees on loans |
| $ | 8,214 |
| $ | 5,838 |
| $ | 22,162 |
| $ | 15,863 |
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Interest on funds sold |
| 69 |
| 179 |
| 191 |
| 333 |
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Interest on securities |
| 19 |
| 13 |
| 53 |
| 45 |
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Revenue from earning assets |
| 8,302 |
| 6,030 |
| 22,406 |
| 16,241 |
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Interest on deposits |
| 733 |
| 726 |
| 1,895 |
| 1,939 |
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Interest on trust securities |
| 142 |
| 70 |
| 450 |
| 212 |
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Interest on funds purchased |
| 1 |
| 3 |
| 43 |
| 7 |
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Cost of funds |
| 876 |
| 799 |
| 2,388 |
| 2,158 |
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|
| 7,426 |
| 5,231 |
| 20,018 |
| 14,083 |
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Provision for loan losses |
| 1,000 |
| 150 |
| 1,750 |
| 350 |
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Net revenue from earning assets |
| 6,426 |
| 5,081 |
| 18,268 |
| 13,733 |
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Other revenue |
| 1,129 |
| 877 |
| 3,263 |
| 2,534 |
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Salaries and related benefits |
| 3,456 |
| 2,807 |
| 10,122 |
| 7,860 |
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Occupancy expense |
| 381 |
| 320 |
| 1,071 |
| 975 |
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Other operating expenses |
| 1,498 |
| 1,288 |
| 4,774 |
| 3,832 |
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Total operating expenses |
| 5,335 |
| 4,415 |
| 15,967 |
| 12,667 |
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Income before provision for taxes |
| 2,220 |
| 1,543 |
| 5,564 |
| 3,600 |
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Provision for income taxes |
| 914 |
| 634 |
| 2,295 |
| 1,483 |
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Net income |
| 1,306 |
| 909 |
| 3,269 |
| 2,117 |
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(over)
3
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Net income per share |
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Basic |
| $ | 0.46 |
| $ | 0.35 |
| $ | 1.18 |
| $ | 0.81 |
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Diluted |
| $ | 0.44 |
| $ | 0.34 |
| $ | 1.14 |
| $ | 0.79 |
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Average shares outstanding |
| 2,844,800 |
| 2,629,310 |
| 2,773,449 |
| 2,629,602 |
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Diluted average shares |
| 2,963,586 |
| 2,676,959 |
| 2,873,175 |
| 2,674,977 |
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RATIO ANALYSIS |
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Return on Average Equity (%) |
| 15.65 |
| 13.25 |
| 14.15 |
| 10.76 |
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Return on Average Assets (%) |
| 0.85 |
| 0.84 |
| 0.79 |
| 0.73 |
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Efficiency Ratio (%) |
| 62.36 |
| 72.28 |
| 68.58 |
| 76.23 |
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Assets per Employee ($000s) |
| 4,327 |
| 3,345 |
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Nonperforming Assets ($000s) |
| 962 |
| 165 |
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Reserve for Loan Losses ($000s) |
| 7,000 |
| 5,350 |
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Nonperforming Assets / Gross Loans (%) |
| 0.17 |
| 0.05 |
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Reserve for Loan Losses / Nonperforming Assets (%) |
| 727.65 |
| 3242.42 |
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Reserve for Loan Losses / Gross Loans (%) |
| 1.22 |
| 1.48 |
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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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