FP Bancorp reports strong earnings turnaround.ESCONDIDO Escondido (ĕskəndē`dō), city (1990 pop. 108,635), San Diego co., S Calif.; inc. 1888. Located in a grain-, citrus-fruit-, and grape-growing valley, Escondido produces cereal products and has fruit-packing houses and one of the , Calif.--(BUSINESS WIRE)--Feb. 14, 1995--FP Bancorp (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). :FPBN) (the "company"), parent company of First Pacific National Bank, reported its most profitable year since 1990. After three years of net operating losses Net operating losses Losses that a firm can take advantage of to reduce taxes. , the company posted 1994 earnings of $332,000, or 24 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . This compares with a 1993 loss of $5,068,000, or $4.18 per share. The company was profitable in every quarter of 1994, reporting fourth-quarter earnings of $47,000, vs. a loss of $798,000 in the same quarter of 1993. FP Bancorp reported an increase in loans at year end, with small decreases in deposits and assets. At Dec. 31, 1994, loans were $120.8 million, deposits were $146.4 million and assets were $164.7 million. These compare with totals of $116.3 million, $153.0 million and $165.4 million on the same date in 1993. Results at the the company's only subsidiary, First Pacific National Bank (the "bank"), were even stronger. For the year ended Dec. 31, 1994, the bank earned just under $1 million, or $944,000. This represents a $5.4 million turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. over the $4,457,000 loss reported for the prior calendar year. The bank largely attributed the earnings turnaround to expense reductions and improved asset quality. Between Dec. 31, 1993 and the same date in 1994, the bank closed two unprofitable offices and enforced en·force tr.v. en·forced, en·forc·ing, en·forc·es 1. To compel observance of or obedience to: enforce a law. 2. tight expense controls. These actions resulted in a $2.3 million, or 17-percent, reduction in noninterest expenses. The bank's problem assets also improved, with OREO falling from $5.9 million at year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. 1993 to $5.0 million on the same date in 1994. Nonperforming loans declined even more dramatically, falling from $7.7 million, or 6.5 percent, of gross loans at the end of 1993, to $2.6 million, or 2.1 percent, of gross loans at Dec. 31, 1994. "This has been a very important year for the holding company and the bank," stated President and Chief Executive Officer Harvey Harvey, city (1990 pop. 29,771), Cook co., NE Ill., a suburb S of Chicago; inc. 1895. Its manufactures include steel castings, metal products, chemicals, machinery, and electronic equipment. Harvey has an oil research center. The city was founded by Turlington W. L. Williamson Wil·liam·son , Mount A peak, 4,382.9 m (14,370 ft) high, in the Sierra Nevada of east-central California. . "Not only were we able to return to profitability, but we also significantly improved the quality of our loan portfolio, reduced our problem assets, raised additional capital and greatly improved our internal efficiencies. "As a result of these actions, the Office of the Comptroller of the Currency The Office of the Comptroller of the Currency (or OCC) was established by the National Currency Act of 1863 and serves to charter, regulate, and supervise all national banks and the federal branches and agencies of foreign banks in the United States. released First Pacific National Bank from its formal agreement, allowing us to operate as a `well-capitalized' institution with no special regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. supervision." FP Bancorp has also announced plans to acquire Overland o·ver·land adj. Accomplished, traversing, or passing over the land instead of the ocean: an overland journey; an overland route. adv. Bank, a two-branch financial institution with headquarters in Temecula, Calif. The merger is expected to be completed during the second quarter of 1995. -0-
FP BANCORP
FINANCIAL HIGHLIGHTS
Three Months Ended 12 Months Ended
Dec. 31, Dec. 31,
For the Period 1994 1993 1994 1993
Earnings (loss) before
taxes 47,000 (798,000) 332,000 (5,068,000)
Income taxes -- -- -- --
Net earnings (loss) 47,000 (798,000) 332,000 (5,068,000)
Weighted average
shares outstanding 1,405,000 1,213,000 1,262,000 1,213,000
Year-end common
shares outstanding 1,822,000 1,213,000 1,822,000 1,213,000
Earnings (loss) per
share 3 cents (66 cents) 26 cents $ (4.18)
Provision for loan
losses -- 100,000 -- 3,106,000
Dec. 31,
At End of Period 1994 1993
Total assets 164,718,000 165,441,000
Total deposits 146,443,000 153,004,000
Gross loans 120,849,000 116,304,000
Allowance for loan losses 2,666,000 3,830,000
Allowance/gross loans 2.21% 3.29%
FP Bancorp stockholders' equity
(Tier 1 capital) 10,468,000 7,102,000
FPNB stockholders' equity
(Tier 1 capital) 11,664,000 10,720,000
FP Bancorp leverage (Tier 1 capital)
ratio 6.33% 4.19%
FPNB leverage (Tier 1 capital) ratio 7.08% 6.50%
FP Bancorp Tier 1 risk-based capital
ratio 7.81% 5.36%
FPNB Tier 1 risk-based capital ratio 8.73% 8.28%
Stockholders' equity per share
(year end) $ 5.75 $ 5.85
Nonperforming loans 2,593,000 7,591,000
Real estate owned 5,044,000 5,202,000
Nonperforming assets 7,637,000 12,793,000
Nonperforming loans/gross loans 2.15% 6.53%
Nonperforming assets/total assets 4.64% 7.73%
CONTACT: FP Bancorp, Escondido Harvey L. Williamson, 619/741-3312, ext. 201 |
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