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GUARDIAN BANCORP ANNOUNCES ITS SECOND QUARTER OPERATING RESULTS AND AN IMPROVEMENT IN ASSET QUALITY

 LOS ANGELES, Aug. 10 /PRNewswire/ -- Paul M. Harris, chairman of the board of Guardian Bancorp (AMEX: GB), parent company of Guardian Bank, today announced second quarter results, noting a modest improvement in its asset quality.
 During the second quarter, the company had a decrease in the level of its non-performing loans, defined as loans on non-accrual and loans past due 90 days or more. Total non-performing loans declined $2.0 million, or 7 percent, to $26.4 million at June 30, 1993, from $28.4 million at March 31, 1993. Total non-performing loans at June 30, 1993, included $26.0 million of loans on non-accrual and $462,000 of loans past due 90 days or more which compares to $23.5 million and $4.9 million at March 31, 1993, respectively. The decrease is primarily attributable to a slow-down in the rate of delinquencies during the second quarter and to the restructuring of certain loans in the portfolio. At June 30, 1993, the allowance for loan losses was $17.8 million, or 5.03 percent of loans outstanding, and is 67.5 percent of non-performing loans. Total non-performing assets, which includes non-performing loans as defined above and real estate owned, declined $6.2 million, or 12.8 percent, to $42.6 million at June 30, 1993, from the $48.9 million reported at March 31, 1993. At June 30, 1993, real estate owned was $16.2 million, down $4.3 million, or 21 percent, from the $20.5 million reported at March 31, 1993 as a result of the sale of $4.2 million of such real estate during the three months ended June 30, 1993.
 At June 30, 1993, consolidated assets and deposits were $753.0 million and $712.5 million, respectively, compared to $650.8 million and $599.9 million, respectively, at Dec. 31, 1992. Loans, net of deferred loan fees, were $354.7 million at the close of the second quarter compared to $379.0 million at the close of 1992. Average assets, deposits and loans, net of deferred loan fees were $635.9 million, $593.4 million, and $351.6 million, respectively, during the three months ended June 30, 1993, as compared to $652.3 million, $602.8 million and $420.2 million for the year ended Dec. 31, 1992.
 Operating income, defined as income before tax effects and the provision for loan losses was $913,000 for the three months ended June 30, 1993, and was $427,000 for the six months ended June 30, 1993. Harris indicated that the improvement in operating revenue in the second quarter over that of the first quarter principally reflects the results of expense-control measures taken by company management to reduce occupancy, data processing, compensation, and certain other operating- related expenses. Despite the improvement in the level of non- performing loans during the second quarter, the company provided $3,750,000 to the allowance for loan losses reflecting management's most recent assessment of current economic conditions, the impact those conditions may have on the company's borrowers and includes the recommendations of the bank's primary regulator. The second quarter provision for loan losses is down from the provision for loan losses in the first quarter of 1993 and fourth quarter of 1992 of $5.0 million and $6.5 million, respectively. As a result, the net loss for the three and six months ended June 30, 1993, was $2.2 million and $6.3 million, respectively, or $0.61 and $1.72 per share, respectively.
 At June 30, 1993, the bank's Tier 1 risk-based capital ratio was 7.38 percent, its total risk-based capital ratio was 9.46 percent, and its leverage ratio was 4.45 percent. These ratios are above the minimum regulatory requirements of 4.0 percent, 8.0 percent and 4.0 percent, respectively, that are generally applicable to all banks.
 The company continues to address actively the issues of asset quality, cost controls and asset and deposit diversification. In light of weak loan demand in its marketplace, the company continues to maintain a substantial portion of its available excess funds in the form of securities of the U.S. Treasury and other short-term money market instruments, including federal funds sold, money market mutual funds and interest-bearing deposits with other financial institutions.
 Harris also announced that the company's 1993 capital plan, which contemplates an increase in capital during 1993 is progressing and that an investment banking firm has recently been engaged to assist with capital-raising efforts. As previously reported by the company, the purpose of raising capital is, among other things, to provide the company with additional capital in light of current economic conditions, to enhance the company's existing capital ratios and to posture the company for potential growth in the future competitive environment.
 The following tables present the unaudited condensed consolidated balance sheet at June 30, 1993, and the unaudited condensed consolidated results of operations for the three and six months ended June 30, 1993, and 1992 (in thousands, except for per share data):
 Balance Sheet
 June 30, 1993 Dec. 31, 1992
 Cash due from banks $113,508 $49,853
 Federal funds sold 15,000 60,000
 Securities portfolio 253,324 147,426
 Loans 354,742 379,018
 Allowance for loan losses (17,844) (13,466)
 Real estate owned 16,201 16,176
 Other assets 18,075 11,794
 Total $753,006 $650,801
 Deposits $712,496 $599,903
 Other liabilities 8,108 2,420
 Subordinated debt and other
 borrowed money 3,000 13,000
 Shareholders' equity 29,402 35,478
 Total $753,006 $650,801
 Statement of Operations
 Three and Six Months Ended June 30, 1993
 Three Months Ended
 June 30, 1993 June 30, 1992
 Net interest income $6,786 $8,556
 Non-interest income 375 259
 Non-interest expense (6,248) (6,866)
 Operating revenue 913 1,949
 Provision for loan losses (3,750) (150)
 Tax (expense) benefit 591 (757)
 Net earnings (loss) (2,246) 1,042
 Per share ($0.61) $.26
 Six Months Ended
 June 30, 1993 June 30, 1992
 Net interest income $12,913 $16,910
 Non-interest income 688 462
 Non-interest expense (13,174) 13,381
 Operating revenue 427 3,991
 Provision for loan losses (8,750) (1,145)
 Tax (expense) benefit 1,997 (1,195)
 Net earnings (loss) (6,326) 1,651
 Per share ($1.72) $.41
 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- 8/10/93
 /CONTACT: Paul M. Harris, chairman of Guardian Bancorp, 213-239-0800/
 (GB)


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

LS-LM -- LA007 -- 1237 08/10/93 14:01 EDT
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Date:Aug 10, 1993
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