EXHIBIT 99.1
Quaker City Bancorp, Inc. Reports Earnings for Third Quarter Fiscal 2004
and Declares Cash Dividend
WHITTIER, Calif.--(BUSINESS WIRE)--April 27, 2004--Quaker City
Bancorp, Inc. ("Company") (NASDAQ:QCBC), the holding company for
Quaker City Bank ("Bank"), reported net earnings of $6.0 million,
$0.93 per share, for the quarter ended March 31, 2004, compared to
$5.8 million, $0.90 per share, for the quarter ended March 31, 2003.
Net earnings for the nine month period ended March 31, 2004 were $16.8
million, $2.61 per share, compared to $17.1 million, $2.58 per share,
for the same nine month period last year. The trailing twelve months
earnings per share at March 31, 2004 was $3.47 per share. All per
share earnings are presented on a fully diluted basis.
The Company also announced today that its Board of Directors, at
their meeting on April 22, 2004, declared a cash dividend of $0.20 per
outstanding share of common stock of the Company payable on May 14,
2004 to stockholders of record at the close of business on May 3,
2004.
The net interest margin for the current reporting quarter was
3.54% compared to 3.82% for the same period last year, as average
interest earning assets grew faster than net interest income during
the period. The net interest margin was 3.46% for the quarter ended
December 31, 2003. The improvement in the net interest margin from the
previous quarter was primarily due to the increase in mortgage
interest rates in recent months. Pay off speeds on loans have slowed,
reducing the amount of premium amortization for the quarter.
Return on average assets (ROAA) decreased to 1.33% for the current
quarter, compared to 1.48% for the quarter ended March 31, 2003 and
increased from 1.25% for the quarter ended December 31, 2003, as
average total assets grew 14.3% and net earnings increased 2.6%,
quarter over quarter. The Company's return on average equity (ROAE)
for the current quarter decreased to 16.23%, compared to 17.38% for
the quarter ended March 31, 2003, but increased from 15.32% for the
quarter ended December 31, 2003, as average total equity grew 9.9% and
net earnings grew 2.6%, quarter over quarter. The book value per share
at March 31, 2004 was $23.77, compared to $21.20 per share at March
31, 2003, a 12.1% increase.
Average earning assets for the current quarter increased to $1.76
billion, compared to $1.53 billion at March 31, 2003, a 14.4%
increase. As a result of increased average earning assets, offset by a
decrease in net interest margin, net interest income before provision
for loan losses for the quarter was $15.5 million for the current
quarter, compared to $14.6 million for the same quarter last year. The
Company added $250,000 to the allowance for loan losses due to growth
in the real estate loan portfolio during the current quarter and the
establishment of specific reserves of $176,000 on one commercial real
estate loan.
Total assets at March 31, 2004 were $1.81 billion compared to
$1.76 billion at December 31, 2003, an increase of $54.9 million for
the quarter representing an annualized growth rate of 12.5%, with
loans increasing $74.8 million, offset by a decrease in
mortgage-backed securities and other investment securities of $15.9
million from December 31, 2003.
Total other income for the quarter ended March 31, 2004 increased
to $3.3 million from $2.8 million for the same period last year, an
increase of 20.1%. The increase during the quarter was due to an
increase in retail deposit fees to $1.6 million for the current
quarter (compared to $1.3 million for the same period last year), a
decrease in gain on sale of loans held-for-sale to $92,000 (compared
to $844,000 for the same period last year), an increase in commissions
to $167,000 (compared to $125,000 for the same period last year), and
an increase in other income to $1.0 million (compared to $61,000 for
the same period last year). Gain on sale of loans held-for-sale
decreased as the quarter ended March 31, 2003 included the sale of a
package of single family second trust deed loans for a gain of
$226,000, as well as reduced loan refinancing activity to fixed rate
loans that were subsequently sold, from $618,000 for the quarter ended
March 31, 2003 to $92,000 for the quarter ended March 31, 2004. Other
income for the quarter ended March 31, 2004 includes the gain of
$856,000 on sale of assets the Company owned with a zero basis and
$133,000 in collections on loans purchased that the Company also owned
with a zero basis.
Nonperforming loans at March 31, 2004 increased to $4.4 million,
0.31% of gross loans, compared to $3.3 million, 0.25% of gross loans
at June 30, 2003. Nonperforming one-to-four family and commercial and
industrial real estate loans increased $400,000 and $700,000,
respectively, from June 30, 2003. There was no real estate acquired
through foreclosure (REO) for the quarters ended March 31, 2004 and
June 30, 2003. Total nonperforming assets increased to $4.4 million,
or 0.24% of total assets at March 31, 2004, compared to $3.3 million,
or 0.20% of total assets, at June 30, 2003. The Company includes as
nonperforming assets nonaccrual loans 60 or more days past due,
troubled debt restructured loans and REO.
The ratio of general and administrative ("G&A") expenses to
average assets was 1.75% for the current reporting quarter compared to
1.78% for the same quarter last year, as G&A expenses grew at a slower
rate than average assets compared to the same quarter last year. The
G&A ratio for the current quarter was down from 1.79% for the quarter
ended December 31, 2003. The efficiency ratio for the current quarter
increased to 41.84%, compared to 40.38% for the quarter ended March
31, 2003 and declined from 44.30% for the quarter ended December 31,
2003. The efficiency ratio is the measurement of G&A expenses as a
percentage of net interest income before provision for loan losses and
noninterest income.
The Company operates twenty-seven retail banking branches in Los
Angeles, Orange, Riverside, San Bernardino and San Diego Counties in
southern California. The Bank opened two additional Wal-Mart in-store
branches in the communities of San Marcos (north San Diego area) in
January 2004 and La Quinta (Palm Springs area) in early March 2004.
The La Quinta branch is located in Wal-Mart's first "super center" in
California. At March 31, 2004, the Company's consolidated
stockholders' equity was $149.3 million, representing 8.25% of total
assets. The Bank was founded in 1920 and its regulatory capital levels
continue to exceed the levels necessary to be considered "Well
Capitalized."
As previously announced, President and Chief Executive Officer
Rick McGill will be hosting a telephone conference call to discuss the
results of the third quarter and to answer questions of callers today,
April 27, 2004 at 4:00 p.m. Eastern Time (1:00 p.m. Pacific). The
teleconference dial-in number is (800) 450-0819. Please phone in no
later than 3:55 p.m. Eastern Time today to participate. There will be
a replay of the call available beginning at 5:45 p.m. Eastern Time on
April 27, 2004 and ending at 2:59 a.m. Eastern Time on May 5, 2004.
The replay dial-in number is (800) 475-6701 (USA) or (320) 365-3844
(International), access code 728005.
This press release contains forward-looking statements that are
subject to a number of risks and uncertainties, many of which are
beyond the control of the Company, including, but not limited to, (i)
general economic, market or business conditions in the U.S. and
southern California, including changes in market interest rates; (ii)
real estate market conditions, particularly in southern California;
(iii) the opportunities (or lack thereof) that may be presented to and
pursued by the Company; (iv) competitive actions by other financial
institutions; (v) changes in federal, state, and local laws,
regulations and policies affecting the Company's business; (vi)
factors relating to the pending merger between the Company and
Popular, Inc; and (vii) other factors. Actual results could differ
materially from those contemplated by these forward-looking
statements. Consequently, all of the forward-looking statements made
in this report are qualified by these cautionary statements and there
can be no assurance that the actual results or developments
anticipated by the Company will be realized or, even if substantially
realized, that they will have the expected consequences to or effects
on the Company and its business or operations. Forward-looking
statements made in this report speak as of the date hereof. The
Company undertakes no obligation to update or revise any
forward-looking statement made in this report.
Quaker City Bancorp, Inc.
Consolidated Statements of Financial Condition
(NASDAQ:QCBC)
Unaudited
(Dollars in thousands, except share data)
March 31, June 30,
2004 2003
Assets
Cash and due from banks $23,512 $31,275
Interest-bearing deposits 1,374 943
Federal funds sold and other short-term
investments 3,000 --
Investment securities held-to-maturity 7,062 12,178
Investment securities available-for-sale 47,826 48,137
Loans receivable, net 1,441,717 1,323,268
Loans receivable held-for-sale 215 2,997
Mortgage-backed securities held-to-maturity 147,983 90,014
Mortgage-backed securities available-for-sale 91,431 73,683
Federal Home Loan Bank stock, at cost 25,868 19,807
Office premises and equipment, net 7,471 7,275
Accrued interest receivable and other assets 12,457 12,534
Total assets $1,809,916 $1,622,111
Liabilities and Stockholders' Equity
Deposits $1,136,232 $1,084,117
Federal Home Loan Bank advances 508,000 381,500
Accounts payable and accrued expenses 6,751 7,269
Other liabilities 9,643 10,088
Total liabilities 1,660,626 1,482,974
Stockholders' Equity:
Common stock, $.01 par value. Authorized
20,000,000 shares; issued and
outstanding 6,281,783 shares and
6,365,943 at March 31, 2004 and
June 30, 2003, respectively 63 64
Additional paid-in capital 131,451 128,581
Accumulated other comprehensive loss (1,862) (1,377)
Retained earnings, substantially restricted 19,800 12,197
Deferred compensation (162) (328)
Total stockholders' equity 149,290 139,137
Total liabilities and stockholders' equity $1,809,916 $1,622,111
Quaker City Bancorp, Inc.
Consolidated Statements of Operations
(NASDAQ:QCBC)
Unaudited
(Dollars in thousands, except share and per share data)
Three Months Ended Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
Interest income:
Loans receivable $21,048 $21,770 $62,361 $65,975
Mortgage-backed
securities 2,421 1,920 6,033 5,809
Investment securities 446 527 1,380 1,854
Other 227 256 708 761
Total interest income 24,142 24,473 70,482 74,399
Interest expense:
Deposits 4,858 5,964 14,952 19,012
Federal Home Loan Bank
advances 3,752 3,873 11,041 11,663
Total interest expense 8,610 9,837 25,993 30,675
Net interest income
before provision
for loan losses 15,532 14,636 44,489 43,724
Provision for loan losses 250 114 350 514
Net interest income after
provision for loan losses 15,282 14,522 44,139 43,210
Other income:
Deposit fees 1,630 1,315 4,608 3,707
Loan servicing charges
and fees 417 410 1,644 1,503
Gain on sale of loans
held-for-sale 92 844 985 1,445
Commissions 167 125 585 484
Gain on sale of securities
available-for-sale -- -- -- 47
Other 1,003 61 1,439 208
Total other income 3,309 2,755 9,261 7,394
Other expense:
Compensation and employee
benefits 4,686 4,043 13,270 11,558
Occupancy, net 869 805 2,676 2,450
Federal deposit insurance
premiums 115 110 336 326
Data processing 546 400 1,610 1,166
Advertising and promotional 310 364 1,200 1,046
Consulting fees 124 202 668 641
Other general and
administrative expense 1,234 1,099 3,570 3,619
Total general and
administrative expense 7,884 7,023 23,330 20,806
Real estate operations, net -- (1) 1 --
Amortization of core
deposit intangible 29 29 86 86
Total other expense 7,913 7,051 23,417 20,892
Earnings before income
taxes 10,678 10,226 29,983 29,712
Income taxes 4,702 4,403 13,158 12,650
Net earnings $5,976 $5,823 $16,825 $17,062
Average common shares
outstanding 6,228,208 6,284,135 6,237,497 6,340,838
Shares outstanding and
equivalents 6,432,331 6,500,468 6,437,607 6,621,889
Basic earnings per share $0.96 $0.93 $2.70 $2.69
Diluted earnings per share $0.93 $0.90 $2.61 $2.58
Quaker City Bancorp, Inc.
Consolidated Financial Highlights
(NASDAQ:QCBC)
Unaudited
(Dollars in thousands, except share and per share data)
At March 31, At June 30,
2004 2003
Selected Financial Data
Total assets $1,809,916 $1,622,111
Total liabilities $1,660,626 $1,482,974
Loans receivable (1) $1,441,932 $1,326,265
Allowance for loan losses $11,930 $11,606
Investment securities (1) $54,888 $60,315
Mortgage-backed securities (1) $239,414 $163,697
Deposits $1,136,232 $1,084,117
Federal Home Loan Bank (FHLB) advances $508,000 $381,500
Total stockholders' equity $149,290 $139,137
Total common shares outstanding 6,281,783 6,365,943
Trailing twelve month diluted earnings
per share $3.47 $3.43
Book value per common share $23.77 $21.86
Stock price at end of period $54.40 $41.59
(1) Includes assets held or available-for-sale.
At or for the At or for the
Three Months Ended Nine Months Ended
March 31, March 31,
2004 2003 2004 2003
Selected Operating Data
Net interest income
before provision for
loan losses $15,532 $14,636 $44,489 $43,724
Provision for loan
losses 250 114 350 514
Net interest income
after provision for
loan losses 15,282 14,522 44,139 43,210
Total other income 3,309 2,755 9,261 7,394
Total other expense 7,913 7,051 23,417 20,892
Earnings before
income taxes 10,678 10,226 29,983 29,712
Income taxes 4,702 4,403 13,158 12,650
Net earnings $5,976 $5,823 $16,825 $17,062
Basic earnings per share $0.96 $0.93 $2.70 $2.69
Diluted earnings per share $0.93 $0.90 $2.61 $2.58
Average earning
assets $1,755,528 $1,534,657 $1,668,205 $1,503,042
Average loans
receivable $1,418,019 $1,266,711 $1,360,390 $1,249,365
Average stockholders'
equity $147,311 $134,043 $142,762 $131,388
Weighted average
shares outstanding
and equivalents 6,432,331 6,500,468 6,437,607 6,621,889
Performance Ratios (2)
Return on average assets 1.33% 1.48% 1.30% 1.48%
Return on average equity 16.23% 17.38% 15.71% 17.32%
Average equity to
average assets 8.18% 8.51% 8.28% 8.53%
Interest rate spread
during the period 3.33% 3.54% 3.34% 3.56%
Net interest margin 3.54% 3.82% 3.56% 3.88%
General and
administrative
expense to average assets 1.75% 1.78% 1.80% 1.80%
Efficiency ratio 41.84% 40.38% 43.40% 40.70%
Other expense to
average assets 1.76% 1.79% 1.81% 1.81%
(2) All applicable quarterly ratios reflect annualized figures.
Quaker City Bancorp, Inc.
Consolidated Financial Highlights
(NASDAQ:QCBC)
Unaudited
(Dollars in thousands)
At At
March 31, June 30,
2004 2003
Asset Quality Ratios and Data
Nonperforming loans as a percentage
of gross loans (3) 0.31% 0.25%
Nonperforming assets as a percentage
of total assets (4) 0.24% 0.20%
Total allowance for loan losses as a percentage
of gross loans 0.82% 0.86%
Total allowance for loan losses as a percentage
of total nonperforming loans 269.06% 350.95%
Total allowance as a percentage
of total nonperforming assets (5) 269.06% 350.95%
Net charge-offs, quarter to date $25 $--
Nonaccrual loans (3) $4,434 $3,307
Troubled debt restructured loans -- --
Total nonperforming loans 4,434 3,307
Real estate acquired through foreclosure -- --
Total nonperforming assets $4,434 $3,307
Number of:
Pass Book/Savings Accounts 21,241 19,231
Checking Accounts 42,606 37,478
Money Market Accounts 8,464 7,589
(3) Nonperforming loans are net of specific allowances and include
nonaccrual and troubled debt restructured loans. Gross loans
include loans held-for-sale.
(4) Nonperforming assets include nonperforming loans and REO.
(5) Total allowance includes loan and REO valuation allowances.
CONTACT: Quaker City Bancorp, Inc.
Rick McGill, 562-907-2275
Dwight L. Wilson, 562-907-2241