Printer Friendly

GUARDIAN BANCORP NAMES BANKING UNIT PRESIDENT AND CHIEF EXECUTIVE OFFICER AND RELEASES FIRST QUARTER 1993 RESULTS

 LOS ANGELES, May 5 /PRNewswire/ -- Paul M. Harris, chairman of the board of Guardian Bancorp (AMEX: GB), parent company of Guardian Bank, announced today that Howard Fletcher has been appointed president/chief executive officer of the bank, subject to finalization of regulatory approval. "Mr. Fletcher is widely recognized in our industry as a problem-solver and an action-oriented executive. We are pleased to have his proven skills, which greatly strengthen our management team," said Harris. Upon receipt of regulatory approval, Fletcher will formally assume the position of president and chief executive officer, a position formerly held by Harris. Harris will continue to serve as, among other things, chairman of the board of directors of the company and the bank.
 Fletcher, 45, is a veteran banker with more than 18 years of experience at Security Pacific Corp. Positions he has held at Security Pacific include president/chief executive officer of the Bancwest Mortgage; general auditor of Security Pacific Bank; senior vice president retail banking; deputy administrator for the International Bank Group; and director and chief operating officer of its Hong Kong-based commercial bank. Fletcher's experience also includes a number of management positions in the corporate lending area. Fletcher holds a bachelor of science degree in business administration and a master of business administration degree in international management from the University of Southern California.
 Fletcher has announced a number of new initiatives intended to strengthen Guardian Bank. "We are taking immediate action designed to mitigate the bank's exposure to certain risks associated with the current Southern California economic environment," he stated. "It is our intention to continue to assess and provide for credit risks that might result as a consequence of the ongoing recession in Southern California in general and the real estate market in particular." He also expressed an intent to address actively the issues of asset quality, cost control, improved procedures and asset and deposit diversification. "We expect that certain business strategies currently underway and the positive impact of industry consolidation will lead to rewarding future opportunities for Guardian Bank," Fletcher continued.
 As of March 31, 1993, consolidated assets and deposits were $750 million and $712 million, respectively, compared to $650 million and $600 million, respectively, at Dec. 31, 1992. Loans, net of deferred loan fees, were $353 million at the end of the first quarter 1993, compared to $379 million at the end of 1992. As a result of management's assessment of recently obtained appraisal information on certain underlying loan collateral and the impact recessionary conditions may have on certain of the bank's borrowers, a provision for loan losses of $5 million was made to the allowance for loan losses during the first quarter of 1993. Primarily as a result of the provision for loan losses, the company reported a net loss of $4.1 million, or $1.11 per share, for the three months ended March 31, 1993, compared to net earnings of $609,000, or $.15 per share, for the first quarter of 1992.
 The bank's Tier 1 risk-based capital ratio was 7.46 percent, the leverage ratio was 5.48 percent and the total risk-based capital ratio was 9.44 percent at March 31, 1993. These ratios are above the minimum regulatory requirements of 4.0 percent, 3.0+ percent and 8.0 percent, respectively, that are generally applicable to all banks.
 The company has adopted Financial Accounting Standards Board Statement No. 109, "Accounting for Income Taxes," which requires a change to the liability method of accounting for income taxes. Implementation of this standard, which has been adopted retroactively, has resulted in a decrease in deferred tax assets and beginning stockholders' equity at Jan. 1, 1993, of approximately $985,000.
 Total non-performing assets at March 31, 1993, were $48.9 million, or 6.52 percent of total assets, compared to $39.2 million, or 6.01 percent of total assets at Dec. 31, 1992. This total included $23.5 million of loans on non-accrual, $4.9 million in loans 90 days or more past due and still accruing interest and $20.5 million of real estate acquired through foreclosure. This compares to $21.5 million, $1.5 million and $16.2 million, respectively, at Dec. 31, 1992. At March 31, 1993, approximately $3.7 million of loans past due 90 days or more and still accruing interest had received bank approval for renewal or extension, but were pending the receipt of loan documentation.
 The company reported that it has entered into a new 10-year lease, effective in the second quarter of 1993, for the office space it currently occupies in Los Angeles, which will result in a 1993 savings from the former lease of approximately $627,000. Additionally, the bank will realize 1993 annualized cost savings of approximately $420,000, as a result of a new contract it has entered into with its principal computer services supplier. Other annualized cost savings aggregating approximately $480,000 are expected to be realized from reductions in personnel and other non-interest expenses.
 The following tables present the unaudited balance sheet at March 31, 1993, the balance sheet at Dec. 31, 1992, and the quarterly consolidated results of operations for the three months ended, March 31, 1993, and 1992 (in thousands, except for per share data):
 March 31, Dec. 31,
 1993 1992
 (Restated)
 Cash and due from banks $109,727 $49,853
 Federal funds sold 80,000 60,000
 Securities portfolio 188,726 197,279
 Loans 352,814 379,018
 Allowance for loan losses (14,740) (13,466)
 Real estate owned 20,509 16,176
 Other assets 13,240 3,737
 Total $750,276 $650,801
 Deposits $711,806 $599,903
 Other liabilities 4,023 2,420
 Subordinated debt and other
 borrowed money 3,000 13,000
 Shareholders' equity 31,447 35,478
 Total $750,276 $650,801
 Three months ended
 March 31, March 31,
 1993 1992
 Interest income $8,144 $11,046
 Net interest income 6,127 8,354
 Provision for loan losses 5,000 995
 Non-interest income 313 203
 Non-interest expense 6,925 6,515
 Tax expense (benefit) (1,406) 438
 Net earnings (loss) ($4,079) $609
 Net earnings (loss)
 per share ($1.11) $.15
 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 union and management trust fund customers.
 -0- 5/5/93
 /CONTACT: Paul M. Harris, chairman of Guardian Bancorp, 213-239-0800/
 (GB)


CO: Guardian Bancorp; Guardian Bank ST: California IN: FIN SU: ERN PER

BP-JL -- LA009 -- 4695 05/05/93 08:03 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:May 5, 1993
Words:1118
Previous Article:ICN BIOMEDICALS LAUNCHES NEW, NON-ISOTOPIC TEST KITS
Next Article:COUNTRYWIDE LOAN PRODUCTION SETS RECORD OF $3.9 BILLION; SERVICING PORTFOLIO RISES TO NEW HIGH OF $62 BILLION
Topics:


Related Articles
NEW CHAIRMAN NAMED AT THE BANK OF SAN DIEGO
BSD BANCORP RESTATES 1992 RESULTS, ANNOUNCES FIRST QUARTER 1993 RESULTS, AND NAMES NEW CHAIRMAN
ANDOVER BANCORP, INC. REPORTS 1993 FIRST QUARTER NET INCOME OF $1.9 MILLION
COMMERCIAL BANCORP REPORTS RECORD FIRST-QUARTER EARNINGS
FIRST REGIONAL BANCORP ANNOUNCES EARNINGS
BSD BANCORP REPORTS SECOND QUARTER RESULTS, BANK OF SAN DIEGO CAPITAL SHORTFALL
GUARDIAN BANCORP ANNOUNCES ORGANIZATIONAL CHANGES
SC BANCORP ANNOUNCES 58 PERCENT INCREASE IN FIRST QUARTER EARNINGS
GUARDIAN BANCORP REPORTS PROGRESS ON ASSET SALE, NAMES PRESIDENT AND CHIEF EXECUTIVE OFFICER AND RELEASES SECOND QUARTER RESULTS
GUARDIAN BANK ANNOUNCES NEW CHIEF CREDIT OFFICER

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters