Exhibit 99
News Release
First Regional |
| 1801 Century Park East |
Bancorp |
| Century City, California 90067 |
|
| Telephone (310) 552-1776 |
|
| Facsimile (310) 552-1772 |
IMMEDIATE RELEASE
FIRST REGIONAL BANCORP REPORTS
OPERATING RESULTS FOR SECOND QUARTER
AND FIRST HALF OF 2009
· Accelerates progress in resolving problem credits
· Further strengthens loan loss reserves
· Substantial loan loss provisions lead to operating loss for period
· Exceeds all financial ratio requirements for “Well Capitalized” status
· Achieves planned shrinkage in total assets and net loans; deposits rise from year ago levels
CENTURY CITY, CALIFORNIA (July 30, 2009)—First Regional Bancorp (Nasdaq-GSM: FRGB) reported operating losses for the second quarter and first half of 2009. The losses principally reflect additional loan loss provisions and other costs incurred in the course of resolving problem loans resulting from the current severe economic recession.
For the three months ended June 30, 2009, the net loss was $17.8 million, equal to $1.50 per diluted share, versus a net loss of $18.5 million, or $1.57 per diluted share, in last year’s second quarter. For the first six months of 2009, the net loss was $21.0 million, or $1.78 per diluted share, compared to a net loss of $13.8 million, or $1.17 per diluted share, for the comparable period in 2008.
Operating results continue to be adversely impacted by historic lows in interest rates resulting from the Federal Reserve’s aggressive actions directed at reviving the economy during the past twelve months. These actions have significantly impacted the yield on First Regional’s loan portfolio, which consists almost entirely of variable-rate notes that adjust immediately upon any change in interest rates. In contrast, deposit accounts generally require a longer period to mature, and interest costs adjust accordingly. As a result, net interest income in the first half of 2009 amounted to $31.6 million, down sharply from $50.5 million in the corresponding period of 2008.
H. Anthony Gartshore, President and Chief Executive Officer, commented: “While times remain difficult for First Regional and financial institutions in general, we continue to make steady progress confronting our challenges. Our highest priority remains to resolve problem assets spawned by the current economic recession. As well, First Regional has made a deliberate effort to reduce total assets and net loans in concert with our ongoing program of shrinking the asset base, thereby further strengthening our capital position.”
At June 30, 2009, total assets were $2.380 billion, compared to $2.472 billion one year earlier. Net loans declined more sharply to $2.157 billion at June 30, 2009, compared to $2.282 billion on the same date in 2008. Total deposits at the end of the quarter were $2.011 billion, up from $1.982 billion in the prior year. Reflecting the impact of operating losses over the past year in the difficult economic environment, shareholders’ equity at the end of the second quarter of 2009 amounted to $129.7 million, or $10.96 per share outstanding, compared with $159.3 million, or $13.50 per outstanding share a year ago. First Regional continues to exceed all financial
1
ratio requirements for Well Capitalized status under applicable regulations. As First Regional holds no material intangible assets, all of First Regional’s equity capital is tangible.
Mr. Gartshore continued: “In the second quarter of 2009 we completed the resolution of over $46 million in nonperforming assets, and we expect that resolution process to continue. Despite our success in resolving problem assets, our long-standing policy of dealing firmly and pragmatically with delinquent borrowers resulted in our nonperforming asset totals increasing in the second quarter. We are confident that those totals will decline as we complete the asset resolution transactions which we have in process.”
In the second quarter of 2009 First Regional made provisions of $31.1 million to its reserve for loan losses, compared to provisions of $44.7 million in the second quarter of 2008. Year to date, 2009 loan loss provisions were $38.6 million, versus provisions of $55.5 million for the same period in 2008. First Regional’s loan loss reserve totaled $74.5 million, or 3.34% of gross loans at June 30, 2009, compared to a reserve of $44.2 million, or 1.90% of gross loans at the close of the second quarter of 2008.
Mr. Gartshore stated: “As reported earlier, most of our nonperforming assets are secured by real estate, meaning that our risk of loss is limited by the value of the underlying collateral even in the present soft market. As required by applicable accounting standards, we have made loan loss provisions to reflect our latest estimates of such potential losses, so the anticipated impact of such losses is already reflected in our financial results. As always, we will continue to make loan loss provisions as necessary based on our ongoing analysis of First Regional’s loan portfolio performance and economic conditions in general.
“As previously disclosed, our vigorous loan collection efforts combined with normal loan repayments are expected to result in a significant reduction in both net loans and total assets as we move through the balance of 2009,” continued Mr. Gartshore. “The aforementioned asset shrinkage, along with the historically low interest rate environment currently prevailing, is placing continued pressure on our 2009 operating results. The shrinkage will, however, further strengthen First Regional’s capital ratios, which already exceed the ‘well capitalized’ standards established by banking regulators.”
Mr. Gartshore concluded: “Despite the many challenges that remain, we look to the future with continued confidence and resolve. Our strong capital base provides the solid foundation which enables us to offer customers and prospects creative solutions to their loan and deposit needs, and an unmatched level of personal service which has long been our hallmark. While our actions in the present environment are limiting current growth and profitability, they contribute to our fundamental goal of enhancing value for our shareholders over time.”
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.
# # #
2
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
|
| (000's omitted) | |||||||||||||
As of June 30 |
| 2009 |
| 2008 | |||||||||||
|
|
|
|
|
| ||||||||||
ASSETS: |
|
|
|
|
| ||||||||||
Cash and due from banks |
| $ | 24,065 |
|
| $ | 35,084 |
| |||||||
Federal funds sold |
|
|
| 18,710 |
|
| 17,145 |
| |||||||
Cash and cash equivalents |
| 42,775 |
|
| 52,229 |
| |||||||||
|
|
|
|
|
| ||||||||||
Investment securities, available for sale |
| 27,002 |
| 24,598 |
| ||||||||||
Interest-bearing deposits in financial institutions |
| 14,006 |
| 2,003 |
| ||||||||||
Federal Home Loan Bank stock - at cost |
| 7,359 |
| 18,532 |
| ||||||||||
Loans, net of allowance |
| 2,156,575 |
| 2,281,604 |
| ||||||||||
Premises and equipment, net of depreciation |
| 4,524 |
| 5,320 |
| ||||||||||
Other real estate owned |
| 22,473 |
| 0 |
| ||||||||||
Accrued interest receivable and other assets |
| 105,279 |
| 88,102 |
| ||||||||||
|
|
|
|
|
| ||||||||||
Total assets |
| $ | 2,379,993 |
| $ | 2,472,388 |
| ||||||||
|
|
|
|
|
| ||||||||||
LIABILITIES AND CAPITAL: |
|
|
|
|
| ||||||||||
Demand deposits |
| $ | 399,433 |
| $ | 398,251 |
| ||||||||
Savings deposits |
| 52,960 |
| 76,968 |
| ||||||||||
Money market deposits |
| 514,028 |
| 873,181 |
| ||||||||||
Time deposits |
| 1,044,178 |
| 633,352 |
| ||||||||||
|
|
|
|
|
| ||||||||||
Total deposits |
|
| 2,010,599 |
|
| 1,981,752 |
| ||||||||
|
|
|
|
|
| ||||||||||
Funds purchased |
| 0 |
| 0 |
| ||||||||||
Federal Home Loan Bank advances |
| 110,000 |
| 210,000 |
| ||||||||||
Subordinated debentures |
| 100,517 |
| 100,517 |
| ||||||||||
Accrued interest payable and other liabilities |
| 29,139 |
| 20,821 |
| ||||||||||
|
|
|
|
|
| ||||||||||
Total liabilities |
| 2,250,255 |
| 2,313,090 |
| ||||||||||
|
|
|
|
|
| ||||||||||
Stated capital |
| 45,318 |
| 44,615 |
| ||||||||||
Retained earnings |
| 83,816 |
| 114,699 |
| ||||||||||
Net unrealized gains (losses) on available-for-sale securities, net of taxes |
| 604 |
| (16) |
| ||||||||||
|
|
|
|
|
| ||||||||||
Total shareholders' equity |
| 129,738 |
| 159,298 |
| ||||||||||
|
|
|
|
|
| ||||||||||
Total liabilities and shareholders' equity |
| $ |
| 2,379,993 |
| $ |
| 2,472,388 |
| ||||||
|
|
|
|
|
| ||||||||||
Book value per share outstanding |
| $ |
| 10.96 |
| $ |
| 13.50 |
| ||||||
|
|
|
|
|
| ||||||||||
Total shares outstanding |
| 11,836,016 |
| 11,802,839 |
| ||||||||||
3
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
| (000’s omitted) |
| (000’s omitted) | ||||||||||||
|
| Three Months Ended |
| Six Months Ended | ||||||||||||
|
| June 30 |
| June 30 | ||||||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Interest on loans |
| $ | 25,728 |
| $ | 35,957 |
| $ | 53,575 |
| $ | 76,253 | ||||
Interest on federal funds sold |
| 17 |
| 105 |
| 60 |
| 173 | ||||||||
Interest on deposits in financial institutions |
| 14 |
| 51 |
| 26 |
| 123 | ||||||||
Interest on investment securities |
| 330 |
| 317 |
| 641 |
| 676 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total interest income |
| 26,089 |
| 36,430 |
| 54,302 |
| 77,225 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Interest on deposits |
| 9,538 |
| 9,437 |
| 20,813 |
| 20,504 | ||||||||
Interest on subordinated debentures |
| 813 |
| 1,224 |
| 1,777 |
| 2,840 | ||||||||
Interest on FHLB advances |
| 60 |
| 1,628 |
| 82 |
| 3,336 | ||||||||
Interest on other borrowings |
| 0 |
| 24 |
| 0 |
| 32 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total interest expense |
| 10,411 |
| 12,313 |
| 22,672 |
| 26,712 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net interest income |
| 15,678 |
| 24,117 |
| 31,630 |
| 50,513 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Provision for loan losses |
| 31,116 |
| 44,743 |
| 38,616 |
| 55,533 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net interest income after provision for loan losses |
| (15,438) |
| (20,626) |
| (6,986) |
| (5,020) | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Other operating income |
| 2,178 |
| 2,481 |
| 4,279 |
| 7,652 | ||||||||
. |
| . |
|
|
|
|
|
| ||||||||
Salaries and related benefits |
| 8,236 |
| 8,487 |
| 17,052 |
| 17,973 | ||||||||
Occupancy expenses |
| 1,031 |
| 954 |
| 2,022 |
| 1,923 | ||||||||
Other operating expenses |
| 8,615 |
| 5,416 |
| 15,298 |
| 7,503 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Total other operating expenses |
| 17,882 |
| 14,857 |
| 34,372 |
| 27,399 | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Income (loss) before provision (benefit) for income taxes |
| (31,142) |
| (33,002) |
| (37,079) |
| (24,767) | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Provision for income taxes (benefit) |
| (13,359) |
| (14,489) |
| (16,059) |
| (10,989) | ||||||||
|
|
|
|
|
|
|
|
| ||||||||
Net loss |
| $ |
| (17,783) |
| $ |
| (18,513) |
| $ |
| (21,020) |
| $ |
| (13,778) |
4
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
|
| (000’s omitted) |
| (000’s omitted) | ||||||||||||||||
|
| Three Months Ended |
| Six Months Ended | ||||||||||||||||
|
| June 30 |
| June 30 | ||||||||||||||||
|
| 2009 |
| 2008 |
| 2009 |
| 2008 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Net income per share |
|
|
|
|
|
|
|
| ||||||||||||
Basic |
| $ | (1.50) |
| $ | (1.57) |
| $ | (1.78) |
| $ | (1.17) | ||||||||
Diluted |
| $ | (1.50) |
| $ | (1.57) |
| $ | (1.78) |
| $ | (1.17) | ||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Average shares outstanding |
| 11,836,016 |
| 11,796,903 |
| 11,835,673 |
| 11,806,280 | ||||||||||||
Diluted average shares |
| 11,836,016 |
| 11,796,903 |
| 11,835,673 |
| 11,806,280 | ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Average equity |
| $ | 138,548 |
| $ | 173,216 |
| $ | 144,321 |
| $ | 174,352 | ||||||||
Average assets |
| $ | 2,401,773 |
| $ | 2,407,558 |
| $ | 2,445,747 |
| $ | 2,324,457 | ||||||||
Return on average equity (%) |
| (51.48) |
| (42.99) |
| (29.37) |
| (15.89) | ||||||||||||
Return on average assets (%) |
| (2.97) |
| (3.09) |
| (1.73) |
| (1.19) | ||||||||||||
Efficiency ratio (%) |
| 100.15 |
| 55.86 |
| 95.72 |
| 47.11 | ||||||||||||
Number of employees |
| 286 |
| 294 |
|
|
|
| ||||||||||||
Assets per employee (000s) |
| $ | 8,322 |
| $ | 8,409 |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
CREDIT QUALITY |
|
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Beginning reserve for loan losses (000s) |
| $ | 68,264 |
| $ | 33,580 |
| $ | 61,336 |
| $ | 22,771 | ||||||||
Loan loss provisions |
| 31,116 |
| 44,743 |
| 38,616 |
| 55,533 | ||||||||||||
Loan recoveries |
| 76 |
| 18 |
| 80 |
| 18 | ||||||||||||
Loan chargeoffs |
| 25,130 |
| 34,244 |
| 25,802 |
| 34,244 | ||||||||||||
Net change in allowance for unfunded loan commitments and lines of credit |
| 125 |
| 55 |
| 221 |
| 74 | ||||||||||||
Ending reserve for loan losses (000s) |
| $ |
| 74,451 |
| $ |
| 44,152 |
| $ |
| 74,451 |
| $ |
| 44,152 | ||||
|
|
|
|
|
|
|
|
| ||||||||||||
Loans Past Due 30-89 days |
| $ | 50,773 |
| $ | 22,865 |
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
Loans Past Due 90 Days or More |
| $ | 17,727 |
| $ | 0 |
|
|
|
| ||||||||||
Nonaccrual Loans |
| 274,327 |
| 32,861 |
|
|
|
| ||||||||||||
Other Real Estate Owned |
|
|
| 22,473 |
|
|
|
| 0 |
|
|
|
|
| ||||||
Nonperforming Assets |
| $ |
| 314,527 |
|
| $ |
| 32,861 |
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
Nonperforming Assets / |
|
|
|
|
|
|
|
| ||||||||||||
Nonperforming Assets / Gross Loans + OREO (%) |
| 13.96 |
| 1.41 |
|
|
|
| ||||||||||||
Reserve for Loan Losses / |
|
|
|
|
|
|
|
| ||||||||||||
Nonperforming Assets (%) |
| 23.67 |
| 134.36 |
|
|
|
| ||||||||||||
Reserve for Loan Losses / |
|
|
|
|
|
|
|
| ||||||||||||
Reserve for Loan Losses / Gross |
| 3.34 |
| 1.90 |
|
|
|
| ||||||||||||
5
|
| (000s omitted) | ||||||||||||||
|
| For the Three Months Ended June 30, | ||||||||||||||
|
| 2009 |
| 2008 | ||||||||||||
|
|
| Average |
|
|
| Average |
|
| Average |
|
|
| Average | ||
|
|
| Balance |
|
| Interest |
| Yield/Cost (%) |
|
| Balance |
|
| Interest |
| Yield/Cost (%) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gross loans |
| $ | 2,277,383 |
| $ | 25,728 |
| 4.53 |
| $ | 2,293,118 |
| $ | 35,957 |
| 6.31 |
Funds sold |
| 34,413 |
| 17 |
| 0.20 |
| 21,240 |
| 105 |
| 1.99 | ||||
Interest bearing deposits in financial institutions |
| 10,312 |
| 14 |
| 0.54 |
| 5,203 |
| 51 |
| 3.94 | ||||
Investment securities |
| 26,036 |
| 330 |
| 5.08 |
| 24,699 |
| 317 |
| 5.16 | ||||
Total earning assets |
| $ | 2,348,144 |
| $ | 26,089 |
| 4.46 |
| $ | 2,344,260 |
| $ | 36,430 |
| 6.25 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deposits |
| $ | 2,084,668 |
| $ | 9,538 |
| 1.84 |
| $ | 1,841,705 |
| $ | 9,437 |
| 2.06 |
Federal Home Loan Bank advances |
| 71,420 |
| 813 |
| 4.57 |
| 289,385 |
| 1,628 |
| 2.26 | ||||
Subordinated debentures |
| 100,517 |
| 60 |
| 0.24 |
| 100,517 |
| 1,224 |
| 4.90 | ||||
Funds purchased |
| 0 |
| 0 |
| 0.00 |
| 3,520 |
| 24 |
| 2.74 | ||||
Total bearing liabilities |
| $ | 2,256,605 |
| $ | 10,411 |
| 1.85 |
| $ | 2,235,127 |
| $ | 12,313 |
| 2.22 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest spread (1) |
|
|
|
|
| 2.61 |
|
|
|
|
| 4.03 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net interest margin (2) |
|
|
|
|
| 2.68 |
|
|
|
|
| 4.13 |
(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.
6
|
| (000s omitted) | ||||||||||||||
|
| For the Six Months Ended June 30, | ||||||||||||||
|
| 2009 |
| 2008 | ||||||||||||
|
|
| Average |
|
|
| Average |
|
| Average |
|
|
| Average | ||
|
|
| Balance |
|
| Interest |
| Yield/Cost (%) |
|
| Balance |
|
| Interest |
| Yield/Cost (%) |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Gross Loans |
| $ | 2,302,286 |
| $ | 53,575 |
| 4.69 |
| $ | 2,211,408 |
| $ | 76,253 |
| 6.93 |
Funds Sold |
| 53,084 |
| 60 |
| 0.23 |
| 15,033 |
| 173 |
| 2.31 | ||||
Interest bearing deposits in financial institutions |
| 6,180 |
| 26 |
| 0.85 |
| 6,120 |
| 123 |
| 4.04 | ||||
Investment Securities |
| 25,324 |
| 641 |
| 5.10 |
| 24,756 |
| 676 |
| 5.49 | ||||
Total Earning Assets |
| $ | 2,386,874 |
| $ | 54,302 |
| 4.59 |
| $ | 2,257,317 |
| $ | 77,225 |
| 6.88 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Deposits |
| $ | 2,154,479 |
| $ | 20,813 |
| 1.95 |
| $ | 1,790,708 |
| $ | 20,504 |
| 2.30 |
Federal Home Loan Bank Advances |
| 47,943 |
| 1,777 |
| 7.47 |
| 255,582 |
| 3,336 |
| 2.62 | ||||
Subordinated Debentures |
| 100,517 |
| 82 |
| 0.16 |
| 100,517 |
| 2,840 |
| 5.68 | ||||
Other Borrowings |
| 0 |
| 0 |
| 0.00 |
| 2,126 |
| 32 |
| 3.03 | ||||
Total Bearing Liabilities |
| $ | 2,302,939 |
| $ | 22,672 |
| 1.99 |
| $ | 2,148,933 |
| $ | 26,712 |
| 2.50 |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Interest Spread (1) |
|
|
|
|
| 2.60 |
|
|
|
|
| 4.38 | ||||
|
|
|
|
|
|
|
|
|
|
|
|
| ||||
Net Interest Margin (2) |
|
|
|
|
| 2.67 |
|
|
|
|
| 4.50 |
(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.
7
The following is a schedule describing the primary components of First Regional Bank’s loan portfolio as of June 30, 2009:
|
| Disbursed Balance |
| Percentage of |
|
| as of June 30, 2009 |
| Total |
|
|
|
|
|
Commercial Real Estate Loans |
|
|
|
|
Construction |
|
|
|
|
|
|
|
|
|
Condominium |
| $272,249,000 |
| 12.18% |
Apartment |
| 55,427,000 |
| 2.48% |
Single Family Residence |
| 58,191,000 |
| 2.60% |
Office |
| 15,767,000 |
| 0.71% |
Retail |
| 78,265,000 |
| 3.50% |
Commercial/Industrial |
| 0 |
| 0.00% |
Mixed Use |
| 53,169,000 |
| 2.38% |
Other (Hotel/Motel) |
| 29,250,000 |
| 1.31% |
|
|
|
|
|
Total |
| 562,318,000 |
| 25.16% |
|
|
|
|
|
Mini Perm/Bridge |
|
|
|
|
|
|
|
|
|
Condominium |
| 39,399,000 |
| 1.76% |
Apartment |
| 565,536,000 |
| 25.31% |
SFR |
| 39,206,000 |
| 1.75% |
Office |
| 80,515,000 |
| 3.60% |
Retail |
| 147,023,000 |
| 6.58% |
Commercial/Industrial |
| 32,401,000 |
| 1.45% |
Mixed Use |
| 118,112,000 |
| 5.29% |
Other (Hotel/Motel) |
| 173,328,000 |
| 7.76% |
|
|
|
|
|
Total |
| 1,195,520,000 |
| 53.50% |
|
|
|
|
|
Land Loans by County |
|
|
|
|
|
|
|
|
|
California Counties |
|
|
|
|
Los Angeles |
| 148,605,000 |
| 6.65% |
Orange |
| 28,767,000 |
| 1.29% |
Riverside |
| 8,682,000 |
| 0.39% |
San Bernardino |
| 10,136,000 |
| 0.45% |
San Diego |
| 6,406,000 |
| 0.29% |
8
Other |
| 8,646,000 |
| 0.39% |
|
|
|
|
|
California Total |
| 211,242,000 |
| 9.46% |
|
|
|
|
|
Other States |
| 23,103,000 |
| 1.03% |
|
|
|
|
|
Total Land Loans |
| 234,345,000 |
| 10.49% |
|
|
|
|
|
Government Guaranteed Loans |
| 837,000 |
| 0.04% |
|
|
|
|
|
Total Real Estate Loans |
| 1,993,020,000 |
| 89.19% |
|
|
|
|
|
Commercial Non-Real Estate Secured Loans |
| 241,510,000 |
| 10.81% |
|
|
|
|
|
Total Loans |
| 2,234,530,000 |
| 100.00% |
|
|
|
|
|
Less - Allowance for loan losses |
| 74,451,000 |
|
|
|
|
|
|
|
- Deferred loan fees |
| 3,504,000 |
|
|
|
|
|
|
|
Net loans |
| $2,156,575,000 |
|
|
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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