SC BANCORP REPORTS SECOND QUARTER LOSS
SC BANCORP REPORTS SECOND QUARTER LOSS DOWNEY, Calif., July 2 /PRNewswire/ -- SC Bancorp, (AMEX: SCK),
and its subsidiary, Southern California Bank, today announced unaudited results for the second quarter ended June 30, 1992. Citing the addition of reserves for potential loan losses and extraordinary expenses associated with a recent proxy contest, the company reported a loss for the second quarter of $3,042,000 and for the year-to-date of $2,535,000. This compares with 1991 earnings of $803,000 and $1,745,000 for the second quarter and the first six months of 1991 respectively.
Larry D. Hartwig, president, noted that the performance of the bank in other areas remained strong. This included growth in total assets of more than $20 million from $442,130,000 in 1991 to $462,892,000 at the end of the second quarter this year. Total deposits also showed strength, increasing nearly $23 million from $398,798,000 in 1991 to $421,467,000 in 1992. For the first six months of this year, SC Bancorp reported total revenues of $21,763,000 down slightly from year earlier levels of $22,563,000. "We believe this is very satisfactory given the impact of the continuing recession in Southern California," Hartwig said. "These fundamentally strong operating results helped the bank absorb over $6.5 million of extraordinary charges during the second quarter." During the second quarter, SC Bancorp added $1.7 million to its reserve for potential loan losses, raising the total reserve to $7.1 million. The total of non-performing loans was reduced from $11.1 million in 1991, to $8 million at the end of the second quarter this year. With this addition, the reserve now covers nearly 90 percent of the current amount of non-performing loans, considerably in excess of what the bank estimates to be its current loss exposure. "With the recession continuing, it's prudent to provide for potential losses," Hartwig noted. He also emphasized that the company is continuing to maintain capital ratios far above those required by the regulatory authorities, with a leveraged capital ratio of 6.0 percent and a total risk-based capital ratio of 9.6 percent. Stockholders' equity at the end of the six-month period exceeded $30 million. Southern California Bank has 16 offices in Southern Los Angeles County and Northern Orange County. SC BANCORP Summary of Results (Six Months Ending June 30) (Unaudited) June 30, June 30, Percent 1992 1991 Change Total assets $462,892,000 $442,130,000 4.7 pct. Total deposits $421,467,000 $398,798,000 5.7 pct Total gross loans $285,369,000 $295,780,000 -3.5 pct Shareholders' equity $30,063,000 $32,634,000 -7.9 pct Total revenue $21,763,000 $22,563,000 -3.5 pct Net income after taxes ($2,535,000) 1,745,000 N/A Earnings per share ($0.73) $0.50 N/A Shares outstanding - both periods 3,468,505 3,468,505 Secondary Quarter Results (Three Months Ending June 30) June 30, June 30, Percent 1992 1991 Change Total revenue $10,310,000 $11,418,000 -9.7 pct Net income after taxes ($3,042,000) $803,000 N/A Earnings per share ($0.88) $0.23 N/A -0- 7/2/92 /CONTACT: Norman A. Morales, CFO of SC Bancorp, 310-923-9811, or Clive Hoffman of Clive Hoffman Associates, 213-965-7171, for SC Bancorp/ (SCK) CO: Southern California Bank ST: California IN: FIN SU: ERN EH-AL -- LA016 -- 6329 07/02/92 16:41 EDT
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|Date:||Jul 2, 1992|
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