First Charter Bank reports: agreement RE addition of new capital, second quarter results.BEVERLY HILLS Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Calif.--(BUSINESS WIRE)--Aug. 1, 1996--First Charter Bank, N.A., announced Thursday an agreement in principle with private investors that will increase the Bank's capital by approximately $4 million through the sale of a new issue of noncumulative convertible preferred stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". which will represent approximately 70% of the Bank's total capital at closing. The transaction is subject to necessary regulatory and shareholder approvals and is expected to close by Sept. 1, 1996. Bank's management believes that the transaction would leave the Bank adequately capitalized for prompt corrective action purposes. The Bank also announced the results for the quarter ended June 30, 1996. For the quarter, the Bank reported a loss of $2,803,000, or $1.22 per share, compared to a loss of $460,000, or $0.20 per share, for the same period of 1995. For the six months ended June 30, 1996, the Bank lost $2,974,000, or $1.30 per share, compared to a loss of $452,000, or $0.20 per share, for the same period of 1995. As a result of losses in the second quarter of 1996, the Bank was deemed critically undercapitalized Undercapitalized A business has insufficient capital to carry out its normal functions. undercapitalized Of, relating to, or being a firm that has insufficient long-term equity to support its assets. for prompt corrective action purposes as of July 29, 1996. The Bank's operating results were adversely affected by the decrease in average earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin to $102,572,000 as of June 30, 1996, from $129,625,000 as of June 30, 1995. For the six months ended June 30, 1996, net interest income before provision for loan losses decreased by $1,698,000 from the results reported during the same period last year. However, noninterest income increased $86,000 in the first six months of 1996, while noninterest expense decreased $1,052,000, from the levels reported in 1995. First Charter is federally chartered and headquartered in Beverly Hills, with a branch office in West Los Angeles
CONTACT: Radcliffe & Associates, New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Donald Radcliffe, Investor Relations Investor relations The process by which the corporation communicates with its investors. , 212/605-0424 or First Charter Bank, Beverly Hills Peter L. Bustetter, 310/278-7200 |
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