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 LOS ANGELES, Nov. 16 /PRNewswire/ -- Guardian Bancorp (AMEX: GB), parent company of Guardian Bank, announced that it is moving forward with its capital-raising efforts announced in October. As previously announced, the company filed a Registration Statement with the Securities and Exchange Commission to register shares of its common stock that are proposed to be offered and sold in a rights offering designed to raise up to $30 million. The company intends to contribute a substantial portion of the net proceeds raised to Guardian Bank. The offering will be made solely by means of a prospectus, which will be mailed to shareholders when the rights offering is commenced. The rights are currently expected to be distributed, and the offering expected to commence in late November, and the offering is expected to be completed by the end of the fourth quarter.
 During the third quarter, the company had a decrease in the level of its nonperforming loans, defined as loans on nonaccrual and loans past due 90 days or more. Total nonperforming loans declined $1.3 million, or 5 percent, to $25.1 million at Sept. 30, 1993, from $26.4 million at June 30, 1993. Total non-performing loans at Sept. 30, 1993, included $24.6 million of loans on nonaccrual and $548,000 of loans past due 90 days or more which compares to $26.0 million and $462,000 at June 30, 1993, respectively. The decrease is primarily attributable to a slow- down in the rate of delinquencies during the third quarter and to the restructuring of certain loans in the portfolio. At Sept. 30, 1993, the allowance for loan losses was $15.4 million, or 4.52 percent of loans outstanding, and was 61.4 percent of nonperforming loans.
 During the nine months ended Sept. 30, 1993, the company acquired approximately $13.1 million of property through foreclosure and was successful in liquidating approximately $10.8 million of foreclosed property during the same period. Net losses upon sale of foreclosed property were approximately $187,000 for the nine months ended Sept. 30, 1993. During the third quarter of 1993, the company acquired approximately $6.2 million of real estate through foreclosure and sold approximately $4.2 million of such property, recognizing a net loss of $162,000 for the three months ended Sept. 30, 1993.
 At Sept. 30, 1993, consolidated assets and deposits were $711.6 million and $673.6 million, respectively, compared to $650.8 million and $599.9 million, respectively, at Dec. 31, 1992. Loans, net of deferred loan fees, were $340.9 million at the close of the third quarter compared to $379.0 million at the close of 1992. Average assets, deposits, and loans, net of deferred loan fees, were $589.4 million, $549.6 million, and $354.0 million, respectively, during the nine months ended Sept. 30, 1993, as compared to $652.6 million, $602.8 million, and $420.2 million for the year ended Dec. 31, 1992.
 Despite the improvement in the level of nonperforming loans during the third quarter, the company provided $4,500,000 to the allowance for loan losses reflecting management's most recent assessment of current economic conditions and the impact those conditions may have on the company's borrowers. The third quarter provision for loan losses also reflects the recommendations of the bank's primary regulator which completed an examination during the third quarter. The net loss for the three and nine months ended Sept. 30, 1993, was $3.9 million and $10.2 million, respectively, or $1.04 and $2.76 per share, respectively.
 At Sept. 30, 1993, the Bank's Tier 1 risk-based capital ratio was 7.64 percent, its total risk-based capital ratio was 8.92 percent and its leverage ratio was 4.85 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. 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.
 The following tables present the condensed consolidated balance sheet at Sept. 30, 1993, and Dec. 31, 1992, and the unaudited condensed consolidated results of operations for the three and nine months ended Sept. 30, 1993 and 1992 (in thousands, except for per share data):
 Balance Sheet
 Sept. 30, Dec. 31,
 1993 1992
 Cash and due from banks $91,291 $49,853
 Federal funds sold -- 60,000
 Securities portfolio 262,595 147,426
 Loans 340,937 379,018
 Allowance for loan losses (15,400) (13,466)
 Other real estate owned 18,193 16,176
 Other assets 13,942 11,794
 Total $711,558 $650,801
 Deposits $673,624 $599,903
 Other liabilities 9,405 2,420
 Subordinated debt and other
 borrowed money 3,000 13,000
 Shareholders' equity 25,529 35,478
 Total $711,558 $650,801
 Statement of Operations
 Three and Nine Months Ended Sept. 30, 1993
 Three months ended
 Sept. 30,
 1993 1992
 Net interest income $6,305 $8,103
 Provision for loan losses (4,500) (1,750)
 Noninterest income 380 202
 Noninterest expense (7,090) (6,183)
 Tax (expense) benefit 1,002 (157)
 Net earnings (loss) (3,903) 215
 Per share ($1.04) $0.05
 Nine months ended
 Sept. 30,
 1993 1992
 Net interest income $19,218 $25,013
 Provision for loan losses (13,250) (2,895)
 Noninterest income 1,068 664
 Noninterest expense (20,264) (19,564)
 Tax (expense) benefit 2,999 (1,352)
 Net earnings (loss) (10,229) 1,866
 Per share ($2.76) $0.46
 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.
 A registration statement relating to the securities to be offered in the proposed offering has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. The offering will be made solely by means of a prospectus.
 -0- 11/16/93
 /CONTACT: Paul M. Harris, chairman, or Howard C. Fletcher III, president, both of Guardian Bancorp., 213-239-0800/

CO: Guardian Bancorp ST: California IN: FIN SU: ERN OFR

LS-LM -- LA001 -- 4862 11/16/93 08:01 EST
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Publication:PR Newswire
Date:Nov 16, 1993

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