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SC Bancorp announces second-quarter profit.



ANAHEIM Anaheim (ăn`əhīm), city (1990 pop. 266,406), Orange co., S Calif., SE of Los Angeles; inc. 1870. Anaheim was founded by Germans in 1857 as an experiment in communal living. , Calif.--(BUSINESS WIRE)--July 19, 1995--SC Bancorp (ASE (Adaptive Server Enterprise) A relational DBMS from Sybase that runs on Windows NT/2000, Linux and a variety of Unix platforms. ASE is a comprehensive and robust data management product with a long history dating back to the late 1980s. :SCK SCK Studiecentrum voor Kernenergie (Belgium)
SCK Serial Clan Killers (gaming clan)
SCK Sport Club Kriens (Switzerland)
SCK Street Combat Karate (Germany) 
) and its subsidiary, Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region,  Bank, Wednesday Wednesday: see week.  announced unaudited results for the second quarter of 1995, reporting quarterly earnings of $430,000, or 6 cents per average share, slightly more than 1994's second-quarter earnings of $418,000, or 12 cents per average share outstanding.

The company's operations continue to show improvement, and this brings net income for the six months ended June June: see month.  1995 to $775,000, or 10 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.
, compared with $1.4 million, or 39 cents per share, for the first six months of 1994.

The previous year's first-quarter results included $663,000 in gains on sale of the company's headquarters office facility and other assets other assets

Assets of relatively small value. For financial reporting purposes, firms frequently combine small assets into a single category rather than listing each item separately.
. The per-share figures reflect the issuance of 4 million shares of common stock through a rights offering completed in June 1994.

Larry Lar´ry

n. 1. Same as Lorry, or Lorrie.
 D. Hartwig, president and chief executive officer, stated, "Second-quarter earnings reflect the continued restoration process and several items relating to relating to relate prepconcernant

relating to relate prepbezüglich +gen, mit Bezug auf +acc 
 the closing of the previously announced acquisition of loans and deposits from Independence One Bank of California The Bank of California was founded in San Francisco, California on July 5, 1864 by William Chapman Ralston. It was the first commercial bank in the Western United States, the second-richest bank in the nation, and considered instrumental in developing the American Old West.  FSB (FrontSide Bus) See system bus.

FSB - front side bus
.

"Interest expense relating to funding the acquisition was higher than anticipated, and the year-to-date Year-to-date (YTD)

The period beginning at the start of the calendar year up to the current date.
 loan loss provision of $324,000 reflects the impact of bringing the level of reserves on the acquired loans into line with our policy guidelines guidelines,
n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks.
.

"This acquisition is the first important step in the company's strategy to achieve in-market growth by way of acquisition. With the indication of a downward trend in interest rates and our excellent balance sheet strength, we expect to continue to actively pursue merger and acquisition opportunities."

The closing of the Independence One Bank of California FSB transaction took place on April 30, 1995, and resulted in increasing loans outstanding by $72 million and deposits by about $35 million. The acquisition resulted in two additional branch locations: Laguna Hills La·gu·na Hills  

A city of southern California southeast of Santa Ana. Population: 33,600.
 (Orange County) and La Jolla La Jolla (lə hoi`yə), on the Pacific Ocean, S Calif., an uninc. district within the confines of San Diego; founded 1869. The beautiful ocean beaches, in particular La Jolla shores and Black's Beach, and sea-washed caves attract visitors and  (San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay.  County).

The company's second-quarter net interest margin of 5.14 percent improved over the first-quarter margin of 4.65 percent, largely due to increased income on loans purchased in the Independence One acquisition, which in part replaced Fed funds fed funds

See federal funds.
 investments.

Non-interest expense increased to $6.1 million in the second quarter of 1995 from $5.3 million in the previous quarter, reflecting the addition of lending staff and two branch locations from the Independence One transaction, and an increase in OREO-related expenses.

Total assets at June 30, 1995, were $480,178,000, an increase of 19 percent from $404,324,000 at the end of the second quarter in 1994. Total deposits increased 22 percent to $427,038,000 from $351,089,000 at the same time last year. Total gross loans were $286,569,000 at the end of the second quarter of 1995, compared with $206,977,000 at June 30, 1994, an increase of 38 percent.

Shareholders' equity Shareholders' Equity

A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares.
 increased 8 percent to $45,136,000 at the end of the second quarter in 1995 from $41,662,000 at June 30, 1994, reflecting an increase in retained earnings Retained Earnings

The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet.
 and an improvement in the unrealized loss Unrealized Loss

A loss that results from holding onto an asset rather than cashing it in and officially taking the loss.

Notes:
Let's say you own a stock that is down 50%, but you haven't sold it to realize the loss yet. This is said to be an unrealized loss.
 on securities available for sale. The weighted average number of shares outstanding during the second quarter of 1995 was 7,469,000, compared with 3,556,000 during the second quarter of 1994.

The company also reported that nonperforming assets Nonperforming asset

An asset that is not effectively producing income, such as an overdue loan.


nonperforming asset

An asset that produces no income.
 (NPAs) continue to decrease. Nonperforming loans have dropped to $2 million as of quarter end from $6,146,000 a year earlier, and the delinquency delinquency

Criminal behaviour carried out by a juvenile. Young males make up the bulk of the delinquent population (about 80% in the U.S.) in all countries in which the behaviour is reported.
 ratio fell to 1.12 percent from 3.86 percent a year earlier. OREO at June 30, 1995, totaled $5,401,000, a significant reduction from $7,295,000 which was reported at the conclusion of the second quarter in 1994.

The consolidated con·sol·i·date  
v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates

v.tr.
1. To unite into one system or whole; combine:
 capital position of SC Bancorp has remained strong, with all 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.
 capital ratios well in excess of regulatory requirements Regulatory requirements are part of the process of drug discovery and drug development. Regulatory requirements describe what is necessary for a new drug to be approved for marketing in any particular country. . At June 30, 1995, the company had a total risk-based capital ratio Risk-based capital ratio

Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset.
 of 12.91 percent, a Tier 1 risk-based capital ratio of 11.66 percent and a leverage capital ratio of 8.91 percent. Those ratios were 16.42 percent, 15.14 percent and 10.44 percent, respectively, at June 30, 1994.

SC Bancorp is the parent company of Southern California Bank, the largest independent bank with headquarters in Orange County, and has total assets of $480 million. The bank serves customers in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850.  County, Orange County and San Diego County through 17 full-service full-ser·vice
adj.
Associated with or offering complete service: full-service gasoline pumps; full-service banks. 
 branches. A specially designated Business Banking Center is also located in each county. -0-
                  SC BANCORP AND ITS SUBSIDIARY
                     SOUTHERN CALIFORNIA BANK
                   CONSOLIDATED BALANCE SHEETS
                         ($ in thousands)


                                   Unaudited    Audited     Unaudited
                                   June 30,     Dec. 31,    June 30,
                                     1995         1994        1994
ASSETS
 Cash and due from banks         $  36,878    $  31,118   $  31,665
 Securities held to maturity:
  (Market value: 6/30/95 - $54,759  56,644       60,023      64,455
                12/31/94 - $54,680)
 Securities available for sale,
  at market                         69,880       71,858      69,253


 Federal funds sold                  4,000         --         7,100
 Loans                             286,569      207,688     206,977
  Less:
   Deferred fee income                (449)        (298)       (253)
   Allowance for possible
    loan losses                     (5,584)      (5,318)     (8,352)
 Net loans                         280,536      202,072     198,372


 Premises, equipment, land
  and leasehold improvements        10,244       10,254       9,225
 Real estate owned foreclosure       5,401        5,837       7,295
 Other assets                       16,595       17,393      16,959
TOTAL ASSETS                     $ 480,178    $ 398,555   $ 404,324


LIABILITIES
 Deposits
  Interest bearing               $ 292,655    $ 221,919   $ 234,008
  Non-interest bearing             134,383      118,020     117,081
   Total deposits                  427,038      339,939     351,089


Borrowed funds                       5,832       13,621       6,364
Accrued interest payable and
 other liabilities                   2,172        3,151       5,209
Total liabilities                  435,042      356,711     362,662


SHAREHOLDERS' EQUITY
 Common stock, no par or stated
  value; authorized 20 million
  shares: 7,468,505 shares
  issued and outstanding
  at June 30, 1995 and 1994         37,643       37,643      37,643
 Retained earnings                   8,506        7,731       6,410
 Unrealized loss on securities
  available for sale                (1,013)      (3,530)     (2,391)
 Total shareholders' equity         45,136       41,844      41,662
TOTAL LIABILITIES & SHAREHOLDERS'
 EQUITY                          $ 480,178    $ 398,555   $ 404,324


-0-


                      SC BANCORP AND ITS SUBSIDIARY
                        SOUTHERN CALIFORNIA BANK
                      CONSOLIDATED INCOME STATEMENTS
                ($ in thousands, except per-share amounts)


                                                Six Months Ended
                                             June 30,      June 30,
                                               1995          1994
                                                   (Unaudited)


Total revenue on earning assets             $  15,781     $  12,864
Total cost of funds                             6,033         3,110
 Net interest income on earning assets          9,748         9,754
Provision for loan losses                         324          (850)
 Net interest income after provision
   for loan losses                              9,296         9,722


Net securities gains                             --              17
Other noninterest income                        3,113         4,029
Noninterest expense
 Salaries and employee benefits                 5,220         4,827
 Occupancy, furniture and equipment             2,270         2,259
 Other operating expense                        3,909         5,144
Total noninterest expense                      11,399        12,230


Net income before income taxes                  1,138         2,420


Income tax provision                              363         1,036


Net income                                  $     775     $   1,384


Earnings per share:


Net income                                   10 cents      39 cents


Weighted average shares outstanding             7,469         3,513


Total number of shares outstanding at
 period end                                     7,469         7,469




                                   June 30,     Dec. 31,    June 30,
                                     1995         1994        1994
Regulatory capital ratios:


Total risk-based capital
 ratio -- bank                      12.21%       14.22%      13.54%
Total risk-based capital
 ratio -- consolidated              12.91%       16.98%      16.42%
  Minimum regulatory requirement     8.00%        8.00%       8.00%


Tier 1 risk-based capital
 ratio -- bank                      10.95%       12.96%      12.26%
Tier 1 risk-based capital
 ratio -- consolidated              11.66%       15.72%      15.14%
  Minimum regulatory requirement     4.00%        4.00%       4.00%


Leverage ratio -- bank               8.37%        8.86%       8.46%
Leverage ratio -- consolidated       8.91%       10.74%      10.44%
  Minimum regulatory requirement     4.00%        4.00%       4.00%


-0-


                      SC BANCORP AND ITS SUBSIDIARY
                        SOUTHERN CALIFORNIA BANK
                      CONSOLIDATED INCOME STATEMENTS
              (Dollars in thousands except per-share amounts)


                                               Three Months Ended
                                              June 30,     March 31,
                                               1995          1995
                                                  (unaudited)


Total revenue on earning assets             $   8,544     $   7,237
Total cost of funds                             3,076         2,957
 Net interest income on earning assets          5,468         4,280
Provision for loan losses                         200           124
 Net interest income after provision for
   loan losses                                  5,268         4,156


Net securities gains                               --            --
Other non-interest income                       1,431         1,682
Non-interest expense
  Salaries and employee benefits                2,678         2,542
  Occupancy, furniture and equipment            1,175         1,095
  Other operating expense                       2,238         1,671
Total noninterest expense                       6,091         5,308


Net income before income taxes                    608           530


Income tax provision                              178           185


Net income                                  $     430     $     345


Weighted average shares outstanding             7,469         7,469
Total number of shares outstanding at
 period end                                     7,469         7,469


Earnings per Share                            6 cents       5 cents


Net interest margin                          5.14 pct.     4.65 pct.




                                          Three Months Ended
                                              June 30,
                                               1994
                                            (unaudited)


Total revenue on earning assets             $   6,562
Total cost of funds                             1,492
 Net interest income on earning assets          5,070
Provision for loan losses                        (850)
 Net interest income after provision for
   loan losses                                  5,920




Net securities gains                               --
Other non-interest income                       1,596
Non-interest expense
  Salaries and employee benefits                2,445
  Occupancy, furniture and equipment            1,159
  Other operating expense                       3,185
Total noninterest expense                       6,789


Net income before income taxes                    727


Income tax provision                              309


Net income                                  $     418


Weighted average shares outstanding             3,556
Total number of shares outstanding at
 period end                                     7,469


Earnings per Share                           12 cents


Net interest margin                          5.88 pct.


-0-


                              SC BANCORP
                          Summary of Results
                       (Six Months Ended June 30)


                                        1995             1994
                                             (unaudited)


Total Assets                        $ 480,178,000    $ 404,324,000
Total Deposits                      $ 427,038,000    $ 351,089,000
Total Gross Loans                   $ 286,569,000    $ 206,977,000
Shareholders' Equity(b)             $  45,136,000    $  41,662,000
Total Revenue                       $  18,894,000    $  16,910,000
Net Income                          $     775,000    $   1,384,000
Earnings Per Share                       10 cents         39 cents
Weighted Average Shares Outstanding     7,468,505        3,512,704
Number of Shares Outstanding
  at Period End                         7,468,505        7,468,505




                       Second Quarter Results
                     (Three Months Ended June 30)


                                             1995         1994
                                                (unaudited)


Total Revenue                            $ 9,975,000  $ 8,159,000
Net Income                               $   430,000      418,000
Earnings Per Share                           6 cents     12 cents
Weighted Average Shares Outstanding        7,468,505    3,556,000
Book value per share (period ending)     $      6.04  $      5.58


(b)  Adjusted for net unrealized loss on securities available for
sale of $1.0 million at June 30, 1995, and $2.4 million at June 30,
1994.




CONTACT: SC Bancorp, Anaheim

Bruce Bruce, Scottish royal family descended from an 11th-century Norman duke, Robert de Brus. He aided William I in his conquest of England (1066) and was given lands in England.  W. Roat, 714/228-8201
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Publication:Business Wire
Date:Jul 19, 1995
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