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GUARDIAN BANCORP ANNOUNCES EARNINGS

 GUARDIAN BANCORP ANNOUNCES EARNINGS
 LOS ANGELES, July 24 /PRNewswire/ -- Paul M. Harris, chairman of


the board and chief executive officer of Guardian Bancorp (AMEX: GB), parent company of Guardian Bank, announced today that the company reported net earnings for the three months ended June 30, 1992, of $1,042,000, or $.26 per share, compared with $1,954,000, or $.45 per share, for the second quarter of 1991. Year-to-date, net income was $1,651,000, or $.41 per share, which compared to $3,484,000, or $.80 per share, for the first six months of 1991.
 At June 30, 1992, the company's total assets and deposits were $707 million and $657 million, respectively, compared to $728 million and $683 million, respectively, at Dec. 31, 1991. Based upon average balances which provide a more meaningful comparison, for the three months ended June 30, 1992, total average assets and deposits were $654 million and $604 million, respectively, compared to $576 million and $532 million, respectively, for the year ended Dec. 31, 1991.
 Total loans, net of deferred loan fees, were $425 million at June 30, 1992, compared to $429 million at Dec. 31, 1991. Total average loans were $428 million for the three months ended June 30, 1992, compared to $393 million for the year ended Dec. 31, 1991. The bank continues to limit real estate loan growth and to diversify the loan portfolio to include more non-real estate loans as opportunities arise.
 At June 30, 1992, nonperforming loans included $29.0 million of loans on nonaccrual and $8.7 million of loans 90 days or more past due and still accruing interest. This compares with $28.3 million and $8.1 million, respectively, at March 31, 1992, and $17.1 million and $11.7 million, respectively, at Dec. 31, 1991. At June 30, 1992, the company had $3.1 million of loans with modified terms down from the approximate $7.6 million at March 31, 1992. The vast majority of nonperforming loans are well secured by first deeds of trust on a portfolio of diversified real estate. While no assurances can be given, the company believes, based upon recent sales and appraisal information, that the underlying value of the real estate collateral provides it with protection against significant losses on these loans.
 During the second quarter of 1992, management charged $150,000 to the provision for loan losses compared to $432,000 for the comparable quarter in 1991. The second quarter provision brings the total amount charged against income for 1992 to $1,145,000, compared to $662,000 for the six months ended June 30, 1991. Second quarter 1992 net charge-offs were $146,000, and for the six months ended June 30, 1992, net charge-offs were $723,000, as compared to $51,000 for the six months ended June 30, 1991. The bank's net charge-off activity, when compared to many banks in its peer group, continues to be favorable. Management continues to evaluate the adequacy of the allowance for loan losses under the assumption that current recessionary conditions will continue in the near term. At June 30, 1992, the allowance for loan losses was $9.6 million or 2.26 percent of loans outstanding, compared with the $4.1 million, or 1.02 percent of loans outstanding at June 30, 1991. The allowance for loan losses at Dec. 31, 1991 was $9.1 million, or 2.13 percent of loans outstanding.
 Net interest income was approximately $8.6 million for the three months ended June 30, 1992, as compared to $9.8 million for the comparable period in 1991. The $1.2 million decrease reflects the impact on asset yields caused by the currently existing lower interest rate environment and the effects of nonperforming loans. Noninterest expense increased to $6.9 million for the second quarter of 1992 compared to $6.4 million for the same quarter in 1991, and is primarily attributable to increases in outside data processing, deposit insurance premium costs and professional expenses.
 Shareholders' equity was $39.9 million, or $10.91 per share at June 30, 1992, compared to $37.8 million, or $10.60 per share, at the close of 1991. At June 30, 1992, the company's and Guardian Bank's capital continued to exceed all current minimum regulatory requirements.
 Despite the current economic environment, the company's return on average shareholders' equity was 10.57 percent for the three months ended June 30, 1992, up from the 6.35 percent reported for the first quarter of 1992. As the recession unwinds and the economy changes for the positive, Harris indicated that the company will continue its emphasis on providing premier quality service and to capitalize on prudent investment opportunities as they arise.
 The following table presents the unaudited quarterly consolidated results of operations for the three and six months ended June 30, 1992 and 1991 (in thousands, except per share data):
 GUARDIAN BANCORP
 Earnings Summary
 Three Months Ended Six Months Ended
 6/30/92 6/30/91 6/30/92 6/30/91
 Interest income $10,801 $13,235 $21,847 $25,395
 Net interest income 8,556 9,847 16,910 18,247
 Provision for
 loan losses 150 432 1,145 662
 Noninterest expense 6,866 6,384 13,381 12,164
 Noninterest income 259 226 462 385
 Provision for
 income taxes 757 1,303 1,195 2,322
 Net earnings 1,042 1,954 1,651 3,484
 Net earnings per share .26 .45 .41 .80
 Return on average assets
 (percents) .66 1.32 .50 1.28
 Return on average
 shareholders' equity
 (percents) 10.57 22.41 8.47 19.99
 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- 7/24/92
 /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


LS-KJ -- LA003 -- 2887 07/24/92 08:02 EDT
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Date:Jul 24, 1992
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