Exhibit 99
News Release
First Regional |
| 1801 Century Park East |
| Jack A. Sweeney |
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Bancorp |
| Century City, California 90067 |
| Board Chairman |
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| Telephone (310) 552-1776 |
| Chief Executive Officer |
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| Facsimile (310) 552-1772 |
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IMMEDIATE RELEASE
FIRST REGIONAL REPORTS MAJOR FIRST QUARTER INCREASES
• First quarter net income increases 215% from the comparable 2004 quarter
• Total assets register a 59% increase to a new high
• Total deposits advance by 51%
• Net loans rise by 56%
CENTURY CITY, CALIFORNIA, APRIL 7, 2005 – First Regional Bancorp (Nasdaq: FRGB) posted major increases in operating results during the first quarter of 2005.
For the three months ended March 31, 2005, First Regional’s net income totaled $5,242,000 or $1.12 per share (diluted) compared to $1,662,000 or $0.50 per share (diluted) for the corresponding quarter a year ago. Total assets rose to $1,366,564,000 at March 31, 2005 from $857,797,000 on the same date in 2004. Over the same period, deposits grew to $1,099,046,000 from $728,502,000, while net loans advanced to $1,237,975,000 from $791,629,000.
In commenting on the results, Jack A. Sweeney, chairman and chief executive officer, said: “First Regional’s first quarter results represent an excellent start to the new year. Our first quarter net income more than tripled from that of the same period in 2004. The efforts of the entire First Regional team allowed us to maintain our exceptional growth in all areas of our operations during the first quarter.
“First Regional has continued to benefit from the growing strength of the California economy, and we have profited by continuously improving our operational efficiency and economies of scale. In addition, the actions of the Federal Reserve Board to gradually increase interest rates over the past several months have had a positive effect on First Regional’s operating margins.
“While the immediate situation appears stable, as always there remains a great deal of uncertainty regarding future economic conditions. Fortunately, we believe First Regional is well equipped to deal with any challenges which may emerge. We will continue to implement our proven business plan, and prudently pursue the expansion of our client base, which has been the foundation of our current success.
First Regional Bancorp is a bank holding company headquartered in Century City, California. 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)
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| (000’s omitted) |
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As of March 31 |
| 2005 |
| 2004 |
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ASSETS: |
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Cash and due from banks |
| $ | 61,184 |
| $ | 39,327 |
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Investment securities |
| 18,328 |
| 4,870 |
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Funds sold |
| 12,450 |
| 0 |
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Federally guaranteed loans |
| 5,464 |
| 8,642 |
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Other loans, net |
| 1,232,511 |
| 782,987 |
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Premises and equipment |
| 3,632 |
| 1,965 |
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Other real estate owned |
| 0 |
| 0 |
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Other assets |
| 32,995 |
| 20,006 |
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Total assets |
| $ | 1,366,564 |
| $ | 857,797 |
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LIABILITIES AND CAPITAL: |
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Demand deposits |
| $ | 428,534 |
| $ | 254,515 |
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Savings deposits |
| 35,513 |
| 35,608 |
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Money market deposits |
| 463,816 |
| 295,391 |
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Time deposits |
| 171,183 |
| 142,988 |
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Total deposits |
| 1,099,046 |
| 728,502 |
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Funds purchased |
| 0 |
| 0 |
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Federal Home Loan Bank advances |
| 130,000 |
| 32,500 |
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Subordinated debentures |
| 41,238 |
| 35,619 |
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Other liabilities |
| 13,222 |
| 8,227 |
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Total liabilities |
| 1,283,506 |
| 804,848 |
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Stated capital |
| 47,809 |
| 32,343 |
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Retained earnings |
| 35,251 |
| 20,606 |
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Net unrealized gains (losses) on available-for-sale securities |
| (2 | ) | 0 |
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Total capital |
| 83,058 |
| 52,949 |
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Total liabilities and capital |
| $ | 1,366,564 |
| $ | 857,797 |
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Book value per share outstanding |
| $ | 20.72 |
| $ | 15.44 |
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Total shares outstanding |
| 4,008,339 |
| 3,429,559 |
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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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| March 31 |
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| 2005 |
| 2004 |
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Interest and fees on loans |
| $ | 20,454 |
| $ | 10,663 |
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Interest on funds sold |
| 102 |
| 33 |
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Interest on securities |
| 37 |
| 16 |
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Revenue from earning assets |
| 20,593 |
| 10,712 |
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Interest on deposits |
| 2,231 |
| 992 |
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Interest on subordinated debentures |
| 525 |
| 375 |
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Interest on FHLB advances |
| 694 |
| 145 |
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Interest on funds purchased |
| 0 |
| 1 |
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Cost of funds |
| 3,450 |
| 1,513 |
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| 17,143 |
| 9,199 |
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Provision for loan losses |
| 1,200 |
| 887 |
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Net revenue from earning assets |
| 15,943 |
| 8,312 |
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Other revenue |
| 1,481 |
| 1,319 |
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Salaries and related benefits |
| 5,317 |
| 4,534 |
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Occupancy expense |
| 796 |
| 425 |
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Other operating expenses |
| 2,209 |
| 1,882 |
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Total operating expenses |
| 8,322 |
| 6,841 |
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Income before provision for taxes |
| 9,102 |
| 2,790 |
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Provision for income taxes |
| 3,860 |
| 1,128 |
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Net income |
| 5,242 |
| $ | 1,662 |
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| (000’s omitted) |
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| Three Months Ended |
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| March 31 |
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| 2005 |
| 2004 |
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Net income per share |
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Basic |
| $ | 1.31 |
| $ | 0.59 |
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Diluted |
| $ | 1.12 |
| $ | 0.50 |
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Average shares outstanding |
| 4,001,010 |
| 2,828,975 |
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Diluted average shares |
| 4,666,451 |
| 3,573,958 |
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Average Equity |
| $ | 80,528 |
| $ | 37,170 |
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Average Assets |
| $ | 1,283,563 |
| $ | 819,845 |
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Return on Average Equity (%) |
| 26.40 |
| 17.93 |
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Return on Average Assets (%) |
| 1.66 |
| 0.81 |
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Efficiency Ratio (%) |
| 44.68 |
| 65.04 |
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Number of Employees |
| 188 |
| 166 |
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Assets per Employee (000s) |
| $ | 7,269 |
| $ | 5,167 |
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CREDIT QUALITY |
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Beginning Reserve for Loan Losses (000s) |
| $ | 11,825 |
| $ | 7,660 |
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Loan Loss Provisions |
| 1,200 |
| 887 |
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Loan Recoveries |
| 130 |
| 113 |
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Loan Chargeoffs |
| 0 |
| 0 |
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Net Change in Allowance for Unfunded Loan Commitments |
| 200 |
| -1 |
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Ending Reserve for Loan Losses (000s) |
| $ | 13,355 |
| $ | 8,659 |
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Nonperforming Assets (000s) |
| $ | 603 |
| $ | 651 |
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Nonperforming Assets / Gross Loans (%) |
| 0.05 |
| 0.08 |
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Reserve for Loan Losses / Nonperforming Assets (%) |
| 2214.76 |
| 1330.11 |
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Reserve for Loan Losses / Gross Loans (%) |
| 1.07 |
| 1.08 |
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| (000’s Omitted) |
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| 2005 |
| 2004 |
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| Average |
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| Average |
| Average |
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| Average |
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| Balance |
| Interest |
| Yield/Cost (%) |
| Balance |
| Interest |
| Yield/Cost (%) |
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Gross Loans |
| $ | 1,181,306 |
| $ | 20,454 |
| 7.02 |
| $ | 746,457 |
| $ | 10,663 |
| 5.73 |
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Funds Sold |
| 17,572 |
| 102 |
| 2.35 |
| 13,898 |
| 33 |
| 0.95 |
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Investment Securities |
| 7,671 |
| 37 |
| 1.96 |
| 6,580 |
| 16 |
| 0.98 |
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Total Earning Assets |
| $ | 1,206,549 |
| $ | 20,593 |
| 6.92 |
| $ | 766,935 |
| $ | 10,712 |
| 5.66 |
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Deposits |
| $ | 1,044,486 |
| $ | 2,231 |
| 0.87 |
| $ | 694,903 |
| $ | 992 |
| 0.57 |
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Federal Home Loan Bank Advances |
| 111,821 |
| 694 |
| 2.52 |
| 53,489 |
| 145 |
| 1.09 |
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Subordinated Debentures |
| 41,238 |
| 525 |
| 5.16 |
| 29,204 |
| 375 |
| 5.15 |
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Funds Purchased |
| 91 |
| 0 |
| 0.00 |
| 397 |
| 1 |
| 1.01 |
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Total Bearing Liabilities |
| $ | 1,197,636 |
| $ | 3,450 |
| 1.17 |
| $ | 777,993 |
| $ | 1,513 |
| 0.79 |
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Net Interest Spread (1) |
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| 5.75 |
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| 4.88 |
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Net Interest Margin (2) |
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| 5.70 |
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| 4.81 |
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(1) Net interest spread represents the average yield earned on Earning Assets less the average cost of Bearing Liabilities.
(2) Net interest margin represents Net Interest Income divided by average Earning Assets.
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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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