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SC Bancorp announces second-quarter profit.

ANAHEIM, Calif.--(BUSINESS WIRE)--July 19, 1995--SC Bancorp (ASE:SCK) and its subsidiary, Southern California Bank, Wednesday 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 1995 to $775,000, or 10 cents per share, 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. The per-share figures reflect the issuance of 4 million shares of common stock through a rights offering completed in June 1994.

Larry D. Hartwig, president and chief executive officer, stated, "Second-quarter earnings reflect the continued restoration process and several items relating to the closing of the previously announced acquisition of loans and deposits from Independence One Bank of California FSB.

"Interest expense relating to funding the acquisition was higher than anticipated, and the year-to-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.

"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 (Orange County) and La Jolla (San Diego 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 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 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 and an improvement in the 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 (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 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 capital position of SC Bancorp has remained strong, with all regulatory capital ratios well in excess of regulatory requirements. At June 30, 1995, the company had a total risk-based capital ratio 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 $480 million. The bank serves customers in Los Angeles County, Orange County and San Diego County through 17 full-service branches. A specially designated Business Banking Center is also located in each county. -0-
 SC BANCORP AND ITS SUBSIDIARY
 SOUTHERN CALIFORNIA BANK
 CONSOLIDATED BALANCE SHEETS
 ($ 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 W. Roat, 714/228-8201
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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