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GUARDIAN BANCORP ANNOUNCES EARNINGS

 GUARDIAN BANCORP ANNOUNCES EARNINGS
 LOS ANGELES, Calif., May 1 /PRNewswire/ -- Paul M. Harris, chairman


of the board and chief executive officer of Guardian Bancorp (AMEX: GB), announced today that the company reported net earnings for the three months ended March 31, 1992 of $609,000, or $.15 per share, compared with $1,529,000, or $.35 per share, for the first quarter of 1991. Guardian Bancorp is the parent company of Guardian Bank.
 Due to the lingering recessionary conditions in the Southern California marketplace, and management's assessment of the impact these conditions have had and may have on the loan portfolio, management elected to provide a 1992 first quarter provision for loan losses of $995,000, compared to $229,000 for the comparable 1991 quarter. Management is encouraged by recent leading economic indicators hinting at a modest rebound in the company's marketplace, yet continues to evaluate the adequacy of the allowance for loan losses based upon the assumption that the current recessionary conditions will continue in the near term. During the first quarter of 1992, the bank's net charge-offs were $577,000, which continues to be low when compared to other banks in its peer group. During the three months ended March 31, 1991, there were no charge-offs. At March 31, 1992, the allowance for loan losses was $9.6 million, or 2.20 percent of period-end loans, which is a significant increase over the $3.7 million, or 1.01 percent of loans outstanding, at March 31, 1991. The allowance for loan losses at Dec. 31, 1991 was $9.1 million, or 2.12 percent of year-end loans.
 Net interest income was approximately $8.4 million for the three months ended March 31, 1992, the same as reported for the comparable period in 1991, despite both the impact on asset yields created by a lower interest rate environment and the effects of nonaccrual loans. Noninterest expense increased to $6.5 million for the first quarter of 1992 compared to $5.8 million for the same quarter in 1991 and is primarily attributable to increases in customer service expenses, deposit insurance premiums and professional expenses.
 At March 31, 1992, the company's total assets and deposits were $795 million and $749 million, respectively, compared to $728 million and $683 million, respectively, at Dec. 31, 1991. The increases at March 31, 1992 over the Dec. 31, 1991 reported amounts are attributable to an anticipated cyclical inflow of funds from certain of the bank's depositors at quarter end. Based upon average balances, which provide a more meaningful comparison, for the three months ended March 31, 1992, total average assets and average deposits were $655 million and $608 million, respectively, compared to $576 million and $532 million, respectively, for 1991.
 Total loans, net of deferred loan fees, were $434 million at March 31, 1992, compared to $429 million at Dec. 31, 1991. Total average loans were $433 million for the three months ended March 31, 1992, compared to $393 million for 1991. Harris indicated that bank management is continuing to limit growth in the real estate loan portfolio generally to the funding of existing commitments and to diversify the loan portfolio to include more non-real estate loans as prudent opportunities arise. At March 31, 1992, nonperforming loans included $28.3 million of loans on nonaccrual and $8.1 million of loans 90 days or more past due which compares to $17 million and $11.7 million, respectively, at Dec. 31, 1991. At March 31, 1992, the company had approximately $7.6 million of modified loans which was the same as reported at Dec. 31, 1991. The vast majority of the nonperforming loans are well secured by first deeds of trust on a portfolio of diversified real estate. Harris indicated that bank management is continuing its efforts toward resolving problem credits and improving the overall condition of the bank's loan portfolio. While no absolute assurances can be given, the company believes that the underlying value of the real estate collateral provides it with protection against significant losses on these loans.
 Shareholders' equity was $38.6 million, or $10.70 per share at March 31, 1992, compared to $37.8 million, or $10.60 per share, at the end of 1991. At March 31, 1992, the company's and Guardian Bank's capital continued to exceed all current minimum regulatory requirements.
 The following is the unaudited consolidated results of operations for the three months ended March 31, 1992 and 1991 (in thousands, except per share data):
 GUARDIAN BANCORP
 Financial Summary
 March 31, 1992 March 31, 1991
 Interest income $11,046 $12,159
 Net interest income 8,354 8,400
 Provision for loan
 losses 995 229
 Noninterest expense, net 6,312 5,623
 Provision for income taxes 438 1,019
 Net earnings 609 1,529
 Net earnings per share .15 .35
 Return on average assets .40 pct. 1.20 pct.
 Return on average shareholders'
 equity 6.40 pct. 17.60 pct.
 Guardian Bancorp is the holding company for Guardian Bank, member FDIC, an independent commercial bank, headquartered in Los Angeles, with branches in Fountain Valley and Ontario, Calif. Guardian Trust Co., a wholly owned subsidiary of Guardian Bank, operates from its Los Angeles office and offers custodial trust services to the bank's labor/management trust fund clientele.
 -0- 5/1/92
 /CONTACT: Paul M. Harris, chairman of the board and CEO of Guardian Bancorp, 213-239-0800/
 (GB) CO: Guardian Bancorp ST: California IN: FIN SU: ERN


EH-DM -- LA002 -- 5291 05/01/92 08:03 EDT
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Date:May 1, 1992
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