Exhibit 99
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 |
|
|
IMMEDIATE RELEASE
FIRST REGIONAL BANCORP CONTINUES STRONG, PROFITABLE GROWTH
IN SECOND QUARTER AND FIRST HALF OF 2004
CENTURY CITY, CALIFORNIA, JULY 9, 2004 – First Regional Bancorp (Nasdaq: FRGB) registered an 85% increase in net income for the second quarter of 2004, compared with results for the same period one year ago. The company also posted a new high in earnings for the first six months of the current year, with net income advancing by 83% from the 2003 level.
For the three months ended June 30, 2004, net income totaled $1,939,000, compared to $1,050,000 in the prior year. Net income per diluted share was $0.48, an increase from $0.36 per diluted share one year earlier. For the first half, First Regional’s net income rose to $3,601,000, equal to $0.95 per diluted share from $1,963,000 or $0.69 per diluted share for the first six months of 2003. Per share results for 2004 reflect an increase in shares outstanding, due to the company’s successful private placements of securities in 2003 and the first quarter of 2004.
Jack A. Sweeney, chairman and chief executive officer, noted that total assets recorded 70% growth on a year-over-year basis, while total deposits showed a 60% increase. “The availability of attractive lending opportunities enabled our bankers to expand net loans by 75% over the past year while maintaining our high standards for credit quality.”
He added: “As our results indicate, our operations continue to reflect robust activity and growing market penetration. We benefited from the contributions of our eight regional offices, as well as our Merchant Services and Trust Administration Services business units, and wish to emphasize the key role our talented team of highly capable managers and employees has played in the company’s ongoing progress and success.”
Mr. Sweeney concluded, “First Regional again turned in an exceptional performance, as our company strives to further increase its presence in carefully targeted markets throughout southern California. Looking ahead, we remain optimistic but recognize the ever-present uncertainties related to economic conditions, the actions of the Federal Reserve Board, and potentially adverse developments in a volatile international scene. We will remain watchful and ready to adapt swiftly to changing conditions as warranted. It is our conviction that our proven emphasis on high asset quality, strong capital and prudent reserves will continue to be the bedrock of our success. We are advancing on a path of solid profitability guided by prudent and conservative operating strategies.”
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)
1
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
|
| (000’s omitted) |
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As of June 30 |
| 2004 |
| 2003 |
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ASSETS: |
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Cash and due from banks |
| $ | 25,704 |
| $ | 30,573 |
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Investment securities |
| 6,238 |
| 8,839 |
| ||
Funds sold |
| 29,660 |
| 10,425 |
| ||
Federally guaranteed loans |
| 7,564 |
| 12,848 |
| ||
Other loans, net |
| 888,797 |
| 497,964 |
| ||
Premises and equipment |
| 2,295 |
| 1,620 |
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Other real estate owned |
| 0 |
| 0 |
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Other assets |
| 19,970 |
| 15,069 |
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Total assets |
| $ | 980,228 |
| $ | 577,338 |
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LIABILITIES AND CAPITAL: |
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Demand deposits |
| $ | 309,229 |
| $ | 196,268 |
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Savings deposits |
| 33,565 |
| 27,200 |
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Money market deposits |
| 351,771 |
| 207,820 |
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Time deposits |
| 145,723 |
| 93,872 |
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Total deposits |
| 840,288 |
| 525,160 |
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Funds purchased |
| 0 |
| 0 |
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Federal Home Loan Bank advances |
| 40,000 |
| 0 |
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Subordinated debentures |
| 35,619 |
| 12,887 |
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Other liabilities |
| 9,316 |
| 7,096 |
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Total liabilities |
| 925,223 |
| 545,143 |
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Stated capital |
| 32,460 |
| 15,697 |
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Retained earnings |
| 22,545 |
| 16,497 |
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Net unrealized gains (losses) on available-for-sale securities |
| 0 |
| 1 |
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Total capital |
| 55,005 |
| 32,195 |
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Total liabilities and capital |
| $ | 980,228 |
| $ | 577,338 |
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Book value per share outstanding |
| $ | 16.02 |
| $ | 11.33 |
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Total shares outstanding |
| 3,433,516 |
| 2,842,821 |
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2
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
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| (000’s omitted) |
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| Three Months Ended |
| Six Months Ended |
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|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
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Interest and fees on loans |
| $ | 12,025 |
| $ | 7,406 |
| $ | 22,688 |
| $ | 13,948 |
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Interest on funds sold |
| 30 |
| 61 |
| 63 |
| 122 |
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Interest on securities |
| 13 |
| 20 |
| 29 |
| 34 |
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Revenue from earning assets |
| 12,068 |
| 7,487 |
| 22,780 |
| 14,104 |
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Interest on deposits |
| 1,172 |
| 648 |
| 2,164 |
| 1,162 |
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Interest on subordinated debentures |
| 454 |
| 156 |
| 829 |
| 308 |
| ||||
Interest on FHLB advances |
| 110 |
| 37 |
| 255 |
| 37 |
| ||||
Interest on funds purchased |
| 1 |
| 3 |
| 2 |
| 5 |
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Cost of funds |
| 1,737 |
| 844 |
| 3,250 |
| 1,512 |
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|
| 10,331 |
| 6,643 |
| 19,530 |
| 12,592 |
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Provision for loan losses |
| 915 |
| 450 |
| 1,802 |
| 750 |
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Net revenue from earning assets |
| 9,416 |
| 6,193 |
| 17,728 |
| 11,842 |
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Other revenue |
| 1,233 |
| 1,126 |
| 2,552 |
| 2,134 |
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Salaries and related benefits |
| 4,707 |
| 3,343 |
| 9,241 |
| 6,666 |
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Occupancy expense |
| 428 |
| 345 |
| 853 |
| 690 |
| ||||
Other operating expenses |
| 2,160 |
| 1,836 |
| 4,042 |
| 3,276 |
| ||||
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Total operating expenses |
| 7,295 |
| 5,524 |
| 14,136 |
| 10,632 |
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Income before provision for taxes |
| 3,354 |
| 1,795 |
| 6,144 |
| 3,344 |
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Provision for income taxes |
| 1,415 |
| 745 |
| 2,543 |
| 1,381 |
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Net income |
| 1,939 |
| 1,050 |
| 3,601 |
| 1,963 |
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(over)
3
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| (000’s omitted) |
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| Three Months Ended |
| Six Months Ended |
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|
| 2004 |
| 2003 |
| 2004 |
| 2003 |
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Net income per share |
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Basic |
| $ | 0.57 |
| $ | 0.37 |
| $ | 1.13 |
| $ | 0.72 |
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Diluted |
| $ | 0.48 |
| $ | 0.36 |
| $ | 0.95 |
| $ | 0.69 |
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Average shares outstanding |
| 3,451,537 |
| 2,840,842 |
| 3,180,831 |
| 2,742,588 |
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Diluted average shares |
| 4,323,975 |
| 2,937,049 |
| 4,072,531 |
| 2,832,914 |
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RATIO ANALYSIS |
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Return on Average Equity (%) |
| 14.26 |
| 13.26 |
| 15.84 |
| 13.30 |
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Return on Average Assets (%) |
| 0.84 |
| 0.76 |
| 0.83 |
| 0.76 |
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Efficiency Ratio (%) |
| 0.63 |
| 0.71 |
| 0.64 |
| 0.72 |
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Assets per Employee ($000s) |
| 5,870 |
| 4,124 |
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Nonperforming Assets ($000s) |
| 90 |
| 504 |
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Reserve for Loan Losses ($000s) |
| 9,200 |
| 6,250 |
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Nonperforming Assets / |
| 0.01 |
| 0.10 |
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Reserve for Loan Losses / |
| 10222.22 |
| 1240.08 |
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Reserve for Loan Losses / |
| 1.02 |
| 1.21 |
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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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