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SC BANCORP REPORTS FIRST QUARTER RESULTS

 DOWNEY, Calif., April 15 /PRNewswire/ -- SC Bancorp of Downey (AMEX: SCK) and its subsidiary, Southern California Bank, today reported unaudited results for the first quarter ended March 31, 1993.
 During the three-month period the company reported net income of $611,000, or $0.18 per share, on total revenues of $11,012,000. The net income figure includes an earnings charge of $41,000 because of new FASB tax accounting rules effective this quarter. In the first quarter of 1992, SC Bancorp earned
$612,000, or $0.18 per share, on total revenues of $11,558,000. All results are based on an average of 3,468,505 shares outstanding in both periods.
 "Given the continuing weakness in the Southern California economy, we believe the bank performed well in the first quarter of this year," said Larry D. Hartwig, president. "At quarter's end our leveraged capital ratio stood at 6.3 percent, while our risk-based ratio was at 10.7 percent, both considerably in excess of regulatory requirements. Additionally, although both total assets and total deposits declined slightly, we were able to increase our demand deposits to $95 million from $91 million in 1992. This lowers our cost of funds and increases our net interest spread."
 Hartwig also pointed out that during the first quarter SC Bancorp's non-performing loans increased $4.3 million from $7.4 million at the end of fiscal 1992 and $10.8 million on March 31, 1992. "Over 90 percent of this increase is associated with one loan which we believe is fully supported by the collateral securing the transaction," he said. "We continue to take a very proactive position in identifying and managing resolutions for our non- performing loans and to expeditiously resolve all of our problem loans. Excluding this one loan, the bank's allowance for possible loan losses provides nearly 100 percent coverage of its non- performing loans at quarter's end." SC Bancorp added $1.7 million to its provision for possible loan losses during the first three months of 1993, compared with $1.8 million in the same period a year earlier.
 Even though loan demand remains weak, Hartwig noted that Southern California Bank is achieving its strategy of reducing the concentration of commercial real estate loans in its loan portfolio. "In the second quarter we expect to demonstrate even better progress in obtaining portfolio balance due to our efforts in the areas of business and consumer lending. Additionally, second quarter sales of real estate owned (OREO), will substantially reduce this non-earning asset category and fully reflect the progress being made to resolve our troubled assets," he said. "While there is expense associated with OREO liquidations, a quick resolution eliminates any continuing drag on future earnings."
 SC Bancorp also reported that its new non-traditional products have been well received and are expected to make more positive contributions to the bank during the remainder of 1993. "We're particularly gratified with the response to our first `full-service' supermarket branch in La Habra, Calif. Over 250 new accounts have been opened since Dec. 17, 1992, and this new concept has been very favorably received by the community. Anticipating this success, we have obtained regulatory approval to open our second supermarket branch in Anaheim Hills on May 3, 1993. We're also delighted with the enthusiastic response we have received to our GNA `Alternative Investment Program' and our Credit Union Servicing Division, both of which were initiated in the fourth quarter of last year. All of this shows that our communities welcome a broad range of financial products and services," he said.
 In conclusion, Hartwig emphasized that SC Bancorp and Southern California Bank realize they play significant roles in the lives of their customers and, in spite of a whole series of new regulations that affect the way they do business, the company remains fully committed to the social and economic health of its communities. "We shall continue forward with our vision of promoting the economic development of the communities and people we serve. Our focus for the remainder of this year is on offering an expanded range of financial services, improving asset quality, reducing delivery costs, and increasing operating efficiency," he said.
 Southern California Bank is listed as the 16th largest bank headquartered in Los Angeles County. It maintains 16 branches in Los Angeles and northern Orange counties.
 SC BANCORP AND ITS SUBSIDIARY, SOUTHERN CALIFORNIA BANK
 Consolidated Balance Sheets
 (Dollars in thousands)
 (Unaudited)
 3/31/93 3/31/92
 Assets
 Cash and due from banks $24,160 $25,290
 Securities held for investment:
 (Market value: 1993 - $50,766
 1992 - $129,526) 50,208 127,870
 Securities available for sale:
 (Market value: 1993 - $118,989) 117,569 ---
 Federal funds sold 11,600 8,255
 Loans 251,318 298,316
 Less:
 Unearned income (137) (315)
 Deferred fee income (395) (525)
 Allowance for possible loan losses (8,000) (5,420)
 Net loans 242,786 292,056
 Premises, equipment, land and
 leasehold improvements 6,716 8,972
 Real estate owned foreclosure 6,357 1,086
 Other assets 12,741 9,403
 Total assets $472,137 $472,932
 Liabilities
 Deposits
 Interest bearing $287,667 $346,904
 Non-interest bearing 95,367 87,538
 Total deposits 383,034 434,442
 Treasury tax and loans 3,110 2,548
 Repurchase agreements 50,000 ---
 Other liabilities 4,186 2,837
 Total liabilities 440,330 439,827
 Stockholders' equity
 Common stock, no par or stated value;
 authorized 20,000,000 shares; shares
 issued and outstanding 3,468,505 23,436 23,436
 Retained earnings 8,371 9,669
 Total stockholders' equity 31,807 33,105
 Total liabilities and stockholders'
 equity $472,137 $472,932
 SC BANCORP AND ITS SUBSIDIARY, SOUTHERN CALIFORNIA BANK
 Consolidated Income Statements
 Three Months Ended March 31, 1993
 (In thousands except per share amounts)
 Three months unaudited
 3/31/93 3/31/92
 Total revenue on earning assets $7,661 $9,959
 Total cost of funds 2,710 3,965
 Net income on earning assets 4,951 5,994
 Provision for loan losses 1,691 1,780
 Provision for writedowns/selling
 expenses -- OREO 125 ---
 Net income after provision 3,135 4,214
 Non-interest income 3,351 1,599
 Net income from operations 6,486 5,813
 Other non-operating expenses 5,313 4,898
 Net income before income taxes
 and cumulative effect of
 accounting change 1,173 accounting principle 6
52 612
 Cumulative effect of change
 in accounting principle (41) ---
 Net income $611 $612
 Earnings per share:
 Income before cumulative effect of
 accounting change $0.19 $0.18
 Cumulative effect of change in
 accounting principle (0.01) ---
 Net income $0.18 $0.18
 Total number of shares outstanding 3,469 3,469
 SC BANCORP
 Summary of Results
 (Three Months Ended March 31)
 (Unaudited)
 Percent
 3/31/93 3/31/92 change
 Total assets $472,136,870 $472,932,000 -0.2 pct
 Total deposits $383,034,000 $434,442,000 -11.8 pct
 Total gross loans $251,318,183 $298,316,000 -15.8 pct
 Shareholders' equity $31,807,000 $33,105,000 -3.9 pct
 Total revenue $11,012,000 $11,558,000 -4.7 pct
 Net income $611,000(A) $612,000 -0.2 pct
 Earnings per share $0.18(A) $0.18 -0.2 pct
 Number of shares
 outstanding at
 period end 3,468,505 3,468,505 ---
 (A) After cumulative effect adjustment of $41,000 due to adoption of new tax pronouncement.
 First Quarter Results
 (Three months ended March 31)
 Percent
 3/31/93 3/31/92 change
 Total revenue $11,012,000 $11,558,000 -4.7 pct
 Net income $611,000(A) $612,000 -0.2 pct
 Earnings per share $0.18(A) $0.18 -0.2 pct
 Number of shares
 outstanding at
 period end 3,468,505 3,468,505 ---
 (A) After cumulative effect adjustment of $41,000 due to adoption of new tax pronouncement.
 -0- 4/15/93
 /CONTACT: Norman A. Morales, CFO of SC Bancorp, 310-932-9811; or Clive Hoffman of Clive Hoffman Associates, 213-965-7171, for SC Bancorp/
 (SCK)


CO: SC Bancorp; Southern California Bank ST: California IN: FIN SU: ERN

MS-KJ -- LA004 -- 6036 04/15/93 09:08 EDT
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