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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FIRST REGIONAL BANCORP POSTS RECORD FIRST QUARTER RESULTS
CENTURY CITY, CALIFORNIA, APRIL 15, 2004 – First Regional Bancorp (Nasdaq: FRGB) today announced sharply higher first quarter earnings, reflecting continued strong growth in assets, deposits and loans.
Quarterly highlights included the following:
• Net income (dollars) rose 82% from the prior year level;
• Total assets, deposits and loans posted increases of 72%, 63% and 79%, respectively;
• Successful financing raised nearly $25 million, strengthening the capital base to support ongoing growth;
• An experienced senior banker has been appointed to develop attractive new geographic markets.
For the three months ended March 31, 2004, First Regional’s net income totaled $1,662,000, equal to $0.50 per share (diluted), compared to $913,000 or $0.33 per share (diluted) for the corresponding quarter a year ago.
Jack A. Sweeney, chairman and chief executive officer, commented: “We are pleased by First Regional’s continued ability to post robust gains in earnings as we implement expansion strategies designed to position the bank for further profitable growth.”
Mr. Sweeney continued: “While we have built our corporate infrastructure to keep pace with that growth, we have benefited from improved operational efficiency and economies of scale. Our strong growth and increasing profitability also reflect the contributions of our regional offices and business units, each of which has the potential for further expansion and greater market penetration.”
In March 2004, First Regional raised approximately $25 million through the private placement of 583,465 common shares and trust-preferred securities. Mr. Sweeney commented: “A sound capital base is essential for our continued progress. The institutional investors who participated in our capital transactions rank among the nation’s most respected fund managers. We acknowledge once again the outstanding expertise and professionalism of the investment bankers at Keefe, Bruyette & Woods, who assisted us in these financing transactions. Most of the net proceeds were contributed to the capital of our subsidiary, First Regional Bank, substantially strengthening its ability to support further growth.”
Mr. Sweeney also announced the appointment of Klaus Schilling as executive vice president: “We are delighted to welcome Klaus Schilling to the First Regional team. Klaus comes to First Regional after serving as president of a leading southern California bank. He is an experienced and respected banker who brings a distinguished history of achievement to his new post, and will lead our expansion into a number of attractive new regions.”
Mr. Sweeney concluded: “The year is off to a promising beginning, and we are enthusiastic about our prospects for continued progress as 2004 unfolds. At this point, we are on target to achieve our objectives for the year. Nevertheless, the future remains unpredictable, whether in terms of the economy, interest rates, or world events, and our performance could be impacted by unforeseen developments in these or other areas.
“As a management team, our primary goal is to build further value for shareholders. We have a strong track record in this respect, having increased shareholder value approximately five fold over the past three years. While past results are not necessarily indicative of future performance, we will continue to adhere to our conservative and proven strategies as we pursue the attractive opportunities that we believe are available to us.”
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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CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
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| (000’s omitted) |
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As of March 31 |
| 2004 |
| 2003 |
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ASSETS: |
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Cash and due from banks |
| $ | 39,327 |
| $ | 29,803 |
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Investment securities |
| 4,870 |
| 6,825 |
| ||
Funds sold |
| 0 |
| 4,765 |
| ||
Federally guaranteed loans |
| 8,642 |
| 14,477 |
| ||
Other loans, net |
| 782,987 |
| 427,154 |
| ||
Premises and equipment |
| 1,965 |
| 1,628 |
| ||
Other real estate owned |
| 0 |
| 0 |
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Other assets |
| 20,006 |
| 13,789 |
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|
|
|
|
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Total assets |
| $ | 857,797 |
| $ | 498,441 |
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LIABILITIES AND CAPITAL: |
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Demand deposits |
| $ | 254,515 |
| $ | 174,807 |
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Savings deposits |
| 35,608 |
| 26,371 |
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Money market deposits |
| 295,391 |
| 197,101 |
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Time deposits |
| 142,988 |
| 48,291 |
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Total deposits |
| 728,502 |
| 446,570 |
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Funds purchased |
| 0 |
| 0 |
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Federal Home Loan Bank advances |
| 32,500 |
| 0 |
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Subordinated debentures |
| 35,000 |
| 12,500 |
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Other liabilities |
| 8,846 |
| 8,294 |
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Total liabilities |
| 804,848 |
| 467,364 |
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Stated capital |
| 32,343 |
| 15,626 |
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Retained earnings |
| 20,606 |
| 15,450 |
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Net unrealized gains (losses) on available-for-sale securities |
| 0 |
| 1 |
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Total capital |
| 52,949 |
| 31,077 |
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Total liabilities and capital |
| $ | 857,797 |
| $ | 498,441 |
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Book value per share outstanding |
| $ | 15.44 |
| $ | 10.95 |
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Total shares outstanding |
| 3,429,559 |
| 2,838,864 |
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2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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| (000’s omitted) |
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| Three Months Ended |
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| 2004 |
| 2003 |
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Interest and fees on loans |
| $ | 10,663 |
| $ | 6,542 |
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Interest on funds sold |
| 33 |
| 61 |
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Interest on securities |
| 16 |
| 14 |
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Revenue from earning assets |
| 10,712 |
| 6,617 |
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Interest on deposits |
| 992 |
| 514 |
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Interest on subordinated debentures |
| 375 |
| 152 |
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Interest on FHLB advances |
| 145 |
| 0 |
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Interest on funds purchased |
| 1 |
| 2 |
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Cost of funds |
| 1,513 |
| 668 |
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|
| 9,199 |
| 5,949 |
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Provision for loan losses |
| 887 |
| 300 |
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Net revenue from earning assets |
| 8,312 |
| 5,649 |
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Other revenue |
| 1,319 |
| 1,008 |
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Salaries and related benefits |
| 4,534 |
| 3,323 |
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Occupancy expense |
| 425 |
| 345 |
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Other operating expenses |
| 1,882 |
| 1,440 |
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Total operating expenses |
| 6,841 |
| 5,108 |
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Income before provision for taxes |
| 2,790 |
| 1,549 |
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Provision for income taxes |
| 1,128 |
| 636 |
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Net income |
| 1,662 |
| $ | 913 |
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(over)
3
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| (000’s omitted) |
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| Three Months Ended |
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| 2004 |
| 2003 |
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Net income per share |
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Basic |
| 0.59 |
| $ | 0.34 |
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Diluted |
| 0.50 |
| $ | 0.33 |
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Average shares outstanding |
| 2,828,975 |
| 2,668,402 |
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Diluted average shares |
| 3,573,958 |
| 2,754,824 |
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RATIO ANALYSIS |
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Return on Average Equity (%) |
| 17.93 |
| 13.67 |
| |
Return on Average Assets (%) |
| 0.81 |
| 0.73 |
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Efficiency Ratio (%) |
| 65.04 |
| 73.42 |
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Assets per Employee ($000s) |
| 5,167 |
| 3,665 |
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Nonperforming Assets ($000s) |
| 651 |
| 85 |
| |
Reserve for Loan Losses ($000s) |
| 8,659 |
| 5,800 |
| |
Nonperforming Assets / |
| 0.08 |
| 0.02 |
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Reserve for Loan Losses / |
| 1330.11 |
| 6823.53 |
| |
Reserve for Loan Losses / |
| 1.08 |
| 1.30 |
|
This report includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein may constitute forward-looking statements. Although First Regional believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to be correct. Important factors that could cause actual results to differ materially from First Regional’s expectations include fluctuations in interest rates, inflation, government regulations, and economic conditions and competition in the geographic and business areas in which First Regional conducts its operations.
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