* First quarter net income increases 215% from the comparable 2004
quarter
* Total assets register a 59% increase to a new high
* Total deposits advance by 51%
* Net loans rise by 56%
CENTURY CITY, Calif., April 7 /PRNewswire-FirstCall/ -- First Regional
Bancorp (Nasdaq: FRGB) posted major increases in operating results during the
first quarter of 2005.
For the three months ended March 31, 2005, First Regional's net income
totaled $5,242,000 or $1.12 per share (diluted) compared to $1,662,000 or
$0.50 per share (diluted) for the corresponding quarter a year ago. Total
assets rose to $1,366,564,000 at March 31, 2005 from $857,797,000 on the same
date in 2004. Over the same period, deposits grew to $1,099,046,000 from
$728,502,000, while net loans advanced to $1,237,975,000 from $791,629,000.
In commenting on the results, Jack A. Sweeney, chairman and chief
executive officer, said: "First Regional's first quarter results represent an
excellent start to the new year. Our first quarter net income more than
tripled from that of the same period in 2004. The efforts of the entire First
Regional team allowed us to maintain our exceptional growth in all areas of
our operations during the first quarter.
"First Regional has continued to benefit from the growing strength of the
California economy, and we have profited by continuously improving our
operational efficiency and economies of scale. In addition, the actions of
the Federal Reserve Board to gradually increase interest rates over the past
several months have had a positive effect on First Regional's operating
margins.
"While the immediate situation appears stable, as always there remains a
great deal of uncertainty regarding future economic conditions. Fortunately,
we believe First Regional is well equipped to deal with any challenges which
may emerge. We will continue to implement our proven business plan, and
prudently pursue the expansion of our client base, which has been the
foundation of our current success.
First Regional Bancorp is a bank holding company headquartered in Century
City, California. Its subsidiary, First Regional Bank, specializes in
providing businesses and professionals with the management expertise of a
major bank and the personalized service of an independent.
CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED)
(000's omitted)
As of March 31 2005 2004
ASSETS:
Cash and due from banks $61,184 $39,327
Investment securities 18,328 4,870
Funds sold 12,450 0
Federally guaranteed loans 5,464 8,642
Other loans, net 1,232,511 782,987
Premises and equipment 3,632 1,965
Other real estate owned 0 0
Other assets 32,995 20,006
Total assets $1,366,564 $857,797
LIABILITIES AND CAPITAL:
Demand deposits $428,534 $254,515
Savings deposits 35,513 35,608
Money market deposits 463,816 295,391
Time deposits 171,183 142,988
Total deposits 1,099,046 728,502
Funds purchased 0 0
Federal Home Loan Bank advances 130,000 32,500
Subordinated debentures 41,238 35,619
Other liabilities 13,222 8,227
Total liabilities 1,283,506 804,848
Stated capital 47,809 32,343
Retained earnings 35,251 20,606
Net unrealized gains (losses)
on available-for-sale
Securities (2) 0
Total capital 83,058 52,949
Total liabilities and capital $1,366,564 $857,797
Book value per share outstanding $20.72 $15.44
Total shares outstanding 4,008,339 3,429,559
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(000's omitted)
Three Months Ended
March 31
2005 2004
Interest and fees on loans $20,454 $10,663
Interest on funds sold 102 33
Interest on securities 37 16
Revenue from earning assets 20,593 10,712
Interest on deposits 2,231 992
Interest on subordinated debentures 525 375
Interest on FHLB advances 694 145
Interest on funds purchased 0 1
Cost of funds 3,450 1,513
17,143 9,199
Provision for loan losses 1,200 887
Net revenue from earning assets 15,943 8,312
Other revenue 1,481 1,319
Salaries and related benefits 5,317 4,534
Occupancy expense 796 425
Other operating expenses 2,209 1,882
Total operating expenses 8,322 6,841
Income before provision for
Taxes 9,102 2,790
Provision for income taxes 3,860 1,128
Net income 5,242 $1,662
CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(000's omitted)
Three Months Ended
March 31
2005 2004
Net income per share
Basic $1.31 $0.59
Diluted $1.12 $0.50
Average shares outstanding 4,001,010 2,828,975
Diluted average shares 4,666,451 3,573,958
Average Equity $80,528 $37,170
Average Assets $1,283,563 $819,845
Return on Average Equity (%) 26.40 17.93
Return on Average Assets (%) 1.66 0.81
Efficiency Ratio (%) 44.68 65.04
Number of Employees 188 166
Assets per Employee (000s) $7,269 $5,167
CREDIT QUALITY
Beginning Reserve for Loan Losses (000s) $11,825 $7,660
Loan Loss Provisions 1,200 887
Loan Recoveries 130 113
Loan Chargeoffs 0 0
Net Change in Allowance for Unfunded Loan
Commitments 200 -1
Ending Reserve for Loan Losses (000s) $13,355 $8,659
Nonperforming Assets (000s) $603 $651
Nonperforming Assets /
Gross Loans (%) 0.05 0.08
Reserve for Loan Losses /
Nonperforming Assets (%) 2214.76 1330.11
Reserve for Loan Losses /
Gross Loans (%) 1.07 1.08
(000's Omitted)
For the Three Months Ended March 31,
2005 2004
Average Average Average Average
Balance Interest Yield/ Balance Interest Yield/
Cost (%) Cost (%)
Gross Loans $1,181,306 $20,454 7.02 $746,457 $10,663 5.73
Funds Sold 17,572 102 2.35 13,898 33 0.95
Investment
Securities 7,671 37 1.96 6,580 16 0.98
Total
Earning
Assets $1,206,549 $20,593 6.92 $766,935 $10,712 5.66
Deposits $1,044,486 $2,231 0.87 $694,903 $992 0.57
Federal Home
Loan Bank
Advances 111,821 694 2.52 53,489 145 1.09
Subordinated
Debentures 41,238 525 5.16 29,204 375 5.15
Funds Purchased 91 0 0.00 397 1 1.01
Total Bearing
Liabilities $1,197,636 $3,450 1.17 $777,993 $1,513 0.79
Net Interest Spread (1) 5.75 4.88
Net Interest Margin (2) 5.70 4.81
(1) Net interest spread represents the average yield earned on Earning
Assets less the average cost of Bearing Liabilities.
(2) Net interest margin represents Net Interest Income divided by
average Earning Assets.
This report includes "forward-looking statements" within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. All statements, other than
statements of historical fact, included herein may constitute forward-looking
statements. Although First Regional believes that the expectations reflected
in such forward-looking statements are reasonable, it can give no assurance
that such expectations will prove to be correct. Important factors that could
cause actual results to differ materially from First Regional's expectations
include fluctuations in interest rates, inflation, government regulations, and
economic conditions and competition in the geographic and business areas in
which First Regional conducts its operations.
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SOURCE First Regional Bancorp
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CONTACT:
Jack A. Sweeney, Chairman/CEO of First
Regional Bancorp, +1-310-552-1776
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