SC BANCORP ELECTS NEW BOARD OFFICERS, PROJECTS SIZABLE LOSS FOR SECOND QUARTER
SC BANCORP ELECTS NEW BOARD OFFICERS,
PROJECTS SIZABLE LOSS FOR SECOND QUARTER
DOWNEY, Calif., June 26 /PRNewswire/ -- The newly installed board of directors of SC Bancorp (AMEX: SCK), the holding company for Southern California Bank, has elected its officers to serve for the remainder of its current fiscal year. They are H.A. Beisswenger, former president of the bank, who will serve as its new chairman of the board; Le Grande Coates Jr., chairman, Master Body Works Inc., who will be vice chairman; and William C. Greenbeck, partner, Downey Land Co., who will serve as SC Bancorp's corporate secretary.
The bank also announced that it expects to sustain a sizable loss in its second quarter ending June 30, 1992. According to Larry D. Hartwig, president, Southern California Bank is being negatively affected by the impact the current recession is having on its customers.
"Although the bank has had favorable reductions in it's non- performing loans, the total still remains stubbornly high. Owing to this situation, the board has agreed with management that the prudent approach requires us to add to our already healthy loan loss reserves," he said. "We will, therefore, be taking a loan loss provision of $4.5 million, bringing the bank loan loss reserve to over $7 million." Hartwig noted that the addition of this amount means that SC Bancorp will have reserves equaling almost 100 percent of its total non-performing loan exposure, considerably above the average for California banks. "Since most of these non-performing assets are well secured, it's the continued effects of the recession, rather than the underlying value of the assets, which will impact the ultimate collectibility of these loans," Hartwig emphasized.
Hartwig also noted that the bank's performance in the second quarter was negatively impacted by the costly proxy fight for control of the SC Bancorp board. This battle, which ended last week with the election of an entirely restructured board of directors, will cost the company in excess of $1 million in legal fees and expenses in the quarter. "Even though our continuing operating results have been encouraging, it was impossible to ignore these negative factors," Hartwig said. "We believe, however, that given the continued weakness in the Southern California economy, we have taken the prudent and cautious decision to insure the future profitability of SC Bancorp and Southern California Bank."
Headquartered in Downey in southeastern Los Angeles County, Southern California Bank has 16 offices serving the business and professional communities in southeast Los Angeles and Northern Orange counties. The shares of the 28-year-old company are traded on the American Stock Exchange. Ticker symbol, SCK.
/CONTACT: Norman A. Morales, executive VP of SC Bancorp, 310-923-9811; or Clive Hoffman of Clive Hoffman Associates, 213-965-7171, for SC Bancorp/
(SCK) CO: SC Bancorp ST: California IN: FIN SU: PER ERP KJ-EH -- LA003 -- 4093 06/26/92 09:01 EDT