EXHIBIT 99.1
FOR IMMEDIATE RELEASE
Contact: Wil Goodrich, Vice President-Director of Marketing (209) 438-2600
REGENCY BANCORP ANNOUNCES 114 PERCENT INCREASE
IN FIRST QUARTER EARNINGS
FRESNO, APRIL 7 -- Fresno-based Regency Bancorp, parent company of Regency
Bank and Regency Investment Advisors, Inc., today announced that it earned $1.1
million or $0.42 per share in the first quarter of 1999. This was a 114 percent
increase over the same period last year when its net income was $519,000 or
$0.20 per share. This first quarter growth continues a trend that began a year
ago when the company's net income reflected an increase of 121 percent over the
$235,000 or $0.13 per share earned in the first quarter of 1997.
Steve Hertel, chairman, president and chief executive officer of Regency
Bancorp, stated that "the company continues to perform at an excellent level,
having recorded its third consecutive net earnings quarter in excess of $1
million. Equally important, Regency's return on average assets was 1.99 percent
for the first three months of 1999 compared to 1.11 percent for the same period
in 1998. Our return on average common equity grew to 19.7 percent from 11.1
percent in the same period last year."
By the end of the first quarter, the company's loan portfolio had reached a
record $157 million, up $5.9 million or 4.0 percent since the end of the year
and up $21.1 million or 15.5 percent from a year ago. While loan growth has
been substantial, credit quality has continued to be strong. Nonperforming
loans as a percentage of total loans declined 56.7 percent from 1.52 percent of
total loans at the end of the 1998 first quarter to 0.66 percent at the end of
the just concluded quarter. Last year's 1.52 percent was a 55.4 percent
reduction from 3.41 percent at March 31, 1997.
Of Regency's nonperforming loans, 77.5 percent are guaranteed by the U.S.
Small Business Administration. Without those loans, the company's percentage of
nonperforming loans to total loans would be 0.15 percent, well below state and
national averages.
"The substantial improvement in earnings for the first quarter," Hertel
said "was a direct result of our continued growth, our ability to maintain a
high interest margin, and lower noninter-est expense. Compared to last year,
net interest income increased by $480,000. We were also able to reduce
noninterest expense by $135,000 or 5.9 percent. Our excellent net interest
margin combined with the reduction in noninterest expense improved Regency's
efficiency ratio to 55.7 percent from 69.2 percent at the end of last year's
first quarter."
The holding company also reported higher levels of assets and deposits for
the first quarter. At March 31, 1999, assets were $228.1 million, up 18.7
percent from $192.1 million a year earlier and total deposits grew 15.8 percent
from $169.9 million a year ago to $196.7 million at March 31, 1999. Also higher
was shareholders' equity, up 19.8 percent to $23.1 million as compared to the
end of last year's first quarter when it was $19.3 million.
Regency Bancorp and its subsidiaries have served Fresno and the Central
Valley since December of 1980. The company currently provides banking to the
greater Fresno market and Madera County through its three branches and has a
government-guaranteed loan production office in Modesto. Its stock trades over
the counter under the symbol: REFN, with market makers such as: Van Kasper &
Co., Hoefer & Arnett, and Sutro & Co., as well as other financial firms such as
Banc Stock Financial Services.
CERTAIN MATTERS DISCUSSED IN THIS NEWS RELEASE MAY BE FORWARD-LOOKING STATEMENTS
THAT ARE SUBJECT TO RISKS AND UNCERTAINTIES THAT COULD CAUSE ACTUAL RESULTS TO
DIFFER MATERIALLY FROM THOSE PROJECTED. SUCH RISKS AND UNCERTAINTIES, WHICH
COULD IMPACT FUTURE FINANCIAL PERFORMANCE, INCLUDE, AMONG OTHERS, (1)
COMPETITIVE PRESSURES IN THE BANKING INDUSTRY; (2) CHANGES IN THE INTEREST RATE
ENVIRONMENT; (3) GENERAL ECONOMIC CONDITIONS, EITHER NATIONALLY OR REGIONALLY;
(4) CHANGES IN THE REGULATORY ENVIRONMENT; (5) CHANGES IN BUSINESS CONDITIONS
AND INFLATION; (6) CHANGES IN SECURITIES MARKETS; AND (7) YEAR 2000 COMPLIANCE
PROBLEMS. THEREFORE, THE INFORMATION SET FORTH HEREIN SHOULD BE CAREFULLY
CONSIDERED WHEN EVALUATING THE BUSINESS PROSPECTS OF THE COMPANY AND THE BANK.
# # #
Regency Bancorp -- Summary Financial Data
FOR THE THREE MONTHS ENDED MAR. 31,
-----------------------------------
1999 1998
-------------------------
RESULTS OF OPERATIONS: $(000)
Interest income 4,737 4,124
Interest expense 1,415 1,283
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Net interest income 3,322 2,841
Provision for credit losses 75 125
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Net interest income after provision 3,247 2,716
Noninterest income 573 487
Noninterest expense 2,170 2,304
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Income/(loss) before income taxes 1,650 899
Income tax expense 539 380
-------------------------
Net income/(loss) 1,111 519
BALANCE SHEET: (END OF PERIOD) $(000)
Total Assets 228,055 192,127
Total Loans 157,085 136,043
Investments 50,626 34,387
Earning assets 209,022 169,875
Investments in real estate -0- 1,798
Total deposits 196,696 169,761
Short term borrowings, notes payable,
and capital leases 5,558 518
Shareholders' equity 23,094 19,273
FINANCIAL RATIOS: (PERIOD ANNUALIZED %)
Return on average assets 1.99 1.11
Return on average equity 19.70 11.07
Ending equity to average assets 10.18 10.11
Average earning assets to average assets 91.24 88.71
Efficiency ratio 55.70 69.23
Net interest margin 6.51 6.81
Noninterest income to avg. assets 1.03 1.04
Noninterest expense to avg. assets 3.88 4.90
Loan loss reserve to total loans 1.69 1.72
PER SHARE:
Earnings per share ($) .42 .20
Dividends ($) .10 .00
Book value (end of period) ($) 8.80 7.34
Market value (end of period) ($) 15.50 14.19
Market to book value (%) 1.76 1.93
Price earnings (PE) ratio (%) 9.03 17.68
Shares outstanding 2,624,999 2,623,124
APRIL 7, 1999