Exhibit 1
LIFE FINANCIAL CORPORATION CORRECTION
RIVERSIDE, Calif., March 27, 2001-- LIFE Financial Corporation (NASDAQ: LFCO)
(the "Company"), announced the correction of its release issued March 23, 2001.
The fourth quarter of 2000 loss is $8.9 million, or ($1.34) per basic and
diluted share, compared with a loss of $21.3 million, or ($3.23) per basic and
diluted share for the quarter ended December 31, 1999. The net loss for the year
ended December 31, 2000 is $20.8 million, or ($3.12) per basic and diluted
share, compared to net loss of $17.8 million, or ($2.71) per basic and diluted
share, for the year ended December 31, 1999. The previously reported results
reflected an adjustment in the carrying value of the Participation Contract
(which, represents residual interests in certain asset securitizations) of $2.8
million net of taxes as an adjustment to stockholders' equity. The revised
release reflects the valuation adjustment as a charge to earnings.
FORWARD-LOOKING COMMENTS
The statements contained in this release that are not historical facts are
forward-looking statements based on management's current expectations and
beliefs concerning future developments and their potential effects on the
Company. There can be no assurance that future developments affecting the
Company will be the same as those anticipated by management.
Actual results may differ from those projected in the forward-looking
statements. These forward-looking statements involve risks and uncertainties.
These include, but are not limited to, the following risks:
Changes in the performance of the financial markets;
Changes in the demand for and market acceptance of the Company's products
and services;
Changes in general economic conditions including interest rates, presence
of competitors with greater financial resources, and the impact of
competitive products and pricing;
The effect of the Company's policies;
The continued availability of adequate funding sources; and
various legal, regulatory and litigation risks.
FOR INFORMATION ON LIFE FINANCIAL-PLEASE E-MAIL YOUR REQUEST TO
rpainter@lifebank.net OR CALL ROY L. PAINTER, CHIEF FINANCIAL OFFICER AT
909.637.4095 OR STEVEN R. GARDNER, PRESIDENT AND CHIEF EXECUTIVE OFFICER AT
909.637.4110. PLEASE INCLUDE YOUR PHONE, FACSIMILE AND MAILING ADDRESS.
1
LIFE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
UNAUDITED (In thousands)
(Restated)
December 31, December 31,
ASSETS 2000 1999
- -------------------------------------------- --------- ---------
Cash and cash equivalents $ 7,810 $ 17,315
Federal Funds Sold 730 3,000
Securities Held under Repurchase Agreements 25,000 --
Participation Contract 4,429 9,288
Investment Securities Available for Sale 42,370 --
Investment Securities Held to Maturity -- 32,833
Loans:
Loans held for sale -- 330,727
Loans held for investment 322,108 106,350
Allowance for loan losses (5,384) (2,749)
--------- ---------
Net loans 316,724 434,328
Mortgage servicing rights 5,652 6,431
Accrued interest receivable 3,187 3,676
Foreclosed real estate 1,683 2,214
Premises and equipment 3,100 6,003
Income taxes receivable 202 18,653
Deferred income taxes 901 5,196
Other assets 2,633 12,964
--------- ---------
TOTAL ASSETS $ 414,421 $ 551,901
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
- --------------------------------------------
LIABILITIES:
Deposit accounts $ 345,093 $ 468,859
Other borrowings 47,120 17,873
Subordinated debentures 1,500 1,500
Accrued expenses and other liabilities 6,808 29,207
--------- ---------
Total liabilities 400,521 517,439
--------- ---------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value 67 67
Additional paid-in capital 42,575 42,525
Retained earnings (28,912) (8,130)
Accumulated adjustments to stockholders' equity 170 --
--------- ---------
Total stockholders' equity 13,900 34,462
--------- ---------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 414,421 $ 551,901
========= =========
LIFE FINANCIAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED INCOME STATEMENT
UNAUDITED (IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED TWELVE MONTHS ENDED
-------------------------- --------------------------
(Restated) (Restated)
DECEMBER 31, DECEMBER 31, DECEMBER 31, DECEMBER 31,
INTEREST INCOME: 2000 1999 2000 1999
- ---------------------------------------------------------------------- ----------- ----------- ----------- -----------
Loans $ 7,661 $ 11,555 $ 39,262 $ 40,991
Other interest-earning assets 822 366 3,221 5,387
----------- ----------- ----------- -----------
Total interest income 8,483 11,921 42,483 46,378
INTEREST EXPENSE:
Interest-bearing deposits 5,766 6,144 25,572 22,000
Subordinated debentures 53 53 472 210
Other borrowings 501 876 2,402 3,367
----------- ----------- ----------- -----------
Total interest expense 6,320 7,073 28,446 25,577
----------- ----------- ----------- -----------
NET INTEREST INCOME 2,163 4,848 14,037 20,801
PROVISION FOR LOAN LOSSES 2,194 2,744 2,910 5,382
----------- ----------- ----------- -----------
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES (31) 2,104 11,127 15,419
NONINTEREST INCOME:
Loan servicing fee income 594 1,446 3,344 4,967
Bank and other fee income 155 102 568 355
Net gain (loss) on mortgage banking operations 204 (45) (5,684) 8,599
Net gain/ (loss) from participation contract and investment securities (3,823) -- (4,848) --
Net gain (loss) on residual mortgage-backed securities 131 (31,901) 295 (31,888)
Other income/ (loss) 174 100 546 789
----------- ----------- ----------- -----------
Total noninterest income (2,565) (30,298) (5,779) (17,178)
NONINTEREST EXPENSE:
Compensation and benefits 2,139 3,358 10,848 12,394
Premises and occupancy 820 1,117 4,059 4,037
Data processing 236 529 1,072 1,642
Net loss on foreclosed real estate 270 90 589 31
Restructuring charges 335 -- 849 --
Other expense 1,147 2,165 5,710 9,381
----------- ----------- ----------- -----------
Total noninterest expense 4,947 7,259 23,127 27,485
----------- ----------- ----------- -----------
LOSS FROM OPERATIONS (7,543) (35,453) (17,779) (29,244)
PROVISION (BENEFIT) FOR INCOME TAXES 1,379 (14,134) 3,003 (11,405)
----------- ----------- ----------- -----------
NET LOSS FROM OPERATIONS $ (8,922) $ (21,319) $ (20,782) $ (17,839)
=========== =========== =========== ===========
Basic Average Shares Outstanding 6,668,436 6,606,316 6,668,231 6,575,189
Basic Earnings (Loss) per Share ($1.34) ($3.23) ($3.12) ($2.71)
Diluted Average Shares Outstanding 6,668,436 6,606,316 6,668,231 6,575,189
Diluted Earnings (Loss) per Share ($1.34) ($3.23) ($3.12) ($2.71)
LIFE FINANCIAL CORPORATION AND SUBSIDIARIES
STATISTICAL INFORMATION
UNAUDITED (IN THOUSANDS)
(Restated)
ASSET QUALITY:
Non-accrual loans $ 22,616
Real estate owned $ 1,683
Charge offs $ 407
Charge offs to average loans 0.10%
Non-accrual loans to total gross loans 6.75%
Non-accrual loans to total assets 5.46%
Allowance for credit losses to total gross loans 1.61%
Allowance for credit losses to non-accrual loans 23.81%
AVERAGE BALANCE SHEET:
Total assets $ 522,078
Loans $ 417,507
Deposits $ 432,409
Borrowings $ 37,839
NET INTEREST MARGIN 2.95%
SHARE DATA:
Book value $ 2.08
Market value(Closing Price) $ 0.6875
LIFE BANK CAPITAL RATIOS:
Tangible Equity Capital Ratio 4.33%
Core Capital Ratio 4.33%
Tier 1 Risk-based Capital Ratio 5.73%
Risk-based Capital Ratio 6.99%