Welcome!

News Feed Item

ProAmerica Bank Reports Record 2013 Fourth Quarter and Full-Year Net Income

LOS ANGELES, CA -- (Marketwired) -- 02/25/14 -- ProAmérica Bank (OTCQB: PMRA) today reported Net Income for the fourth quarter of 2013 of $3.7 million, or $1.32 per diluted common share. Net Income was $4.5 million, or $1.62 per diluted common share for the year ended December 31, 2013. Net Income for both periods includes $2.9 million from the full recognition of its deferred tax asset. "We are pleased to report strong earnings, loan growth and significantly improved asset quality in 2013," stated L. Bruce Mills, Jr., President and CEO. "We have a dedicated team at ProAmérica Bank, solid market alignment, and have accomplished much in a slowly recovering economy," continued Mills.

"ProAmérica Bank has continued to build on its solid reputation in emerging and local markets with strong financial results," stated Executive Chairwoman Maria Contreras-Sweet. "This is a reflection of our team's ability to perform in an environment with intense competitive and economic pressures. We have grown our client base while improving credit quality and maintaining profitability. This growth is thanks in part to our dedicated employees who remain committed to a customer-centric approach to the business of banking, always ready with the personal touch that sets us apart."

"As I look forward to the prospect of serving in the public sector and expanding my commitment to small businesses on a national scale as the nominee to be Administrator of the SBA, I know that the Bank is in excellent hands. ProAmérica Bank has a strong infrastructure in place to continue the mission that the Board and shareholders envisioned when the Bank was first formed," Contreras-Sweet concluded.

2013 Fourth Quarter/Annual Highlights

  • Three-month Net Income of $3,721,000, compared to Net Income of $314,000 in the prior year fourth quarter. Net Income for the year ended December 31, 2013 was $4,520,000, compared to $1,037,000 in 2012.

  • Total Assets at December 31, 2013 were $152.9 million, a decrease of $1.2 million or 1% from December 31, 2012.

  • Total Loans at December 31, 2013 increased to $112.0 million, an increase of $15.5 million or 16% from December 31, 2012.

  • Total Deposits at December 31, 2013 decreased to $124.4 million, a decline of $5.9 million or 5% from December 31, 2012.

  • Nonperforming assets were reduced to $213,000 at December 31, 2013, a 98% decrease from December 31, 2012.

Capital ratios were in excess of all minimums required to be "Well Capitalized" by regulatory agencies, with a Tier 1 Leverage Ratio of 16.7% and a Total Risk-Based Capital Ratio of 21.0% at December 31, 2013. Regulatory "Well Capitalized" definitions are 5% for the Tier 1 Leverage Ratio and 10% for the Total Risk-Based Capital Ratio.

Financial Results
Net Income for the three months ended December 31, 2013 was $3,721,000, compared to $314,000 in 2012. Net Income for the year ended December 31, 2013 was $4,520,000, compared to $1,037,000 in 2012. Net Income for both periods in 2013 includes the impact of reversing the Bank's $2,949,000 valuation allowance against its deferred tax asset that arose from prior years' net operating losses. The reversal was made as a result of Management's belief that it is more likely than not that the Bank will be able to use the net operating losses to offset Federal and State income taxes due in future periods. The Bank has achieved profitability in 12 of the past 13 quarters.

Adjusted income from operations (income before provisions for loan losses and income taxes) was $772,000 for the fourth quarter of 2013, as compared to a $315,000 for the same period in 2012. Adjusted income from operations was $1,172,000 for the year ended December 31, 2013, as compared to $1,038,000 in the previous year. Management believes adjusted income from operations is a better measure of core earnings performance.

For the 2013 fourth quarter, Net Interest Income before the Provision for Loan Losses increased $145,000 compared to the 2012 fourth quarter. The Net Interest Margin increased to 4.24% for the quarter ended December 31, 2013, up from 3.89% for the 2012 fourth quarter. The increase was due to a higher level of average loans as a percentage of average assets in the fourth quarter of 2013. For the year ended December 31, 2013, Net Interest Income before the Provision for Loan Losses increased $260,000 compared to 2012. The Net Interest Margin declined to 4.04% for the year ended December 31, 2013, down from 4.27% for 2012. The decrease was due to a lower level of average loans as a percentage of average assets in 2013 as compared to 2012.

There was no Provision for Loan Losses required in the fourth quarters of 2013 or 2012. For the year ended December 31, 2013, a negative Provision for Loan Losses of $400,000 was recorded due to improved asset quality. There was no Provision for Loan Losses required in 2012.

Non-interest Income increased $292,000, or 97% in the fourth quarter 2013 versus 2012 due to the receipt of a $323,000 Bank Enterprise Award. The award resulted from the Bank's lending performance in lower income census tracts in 2013. Non-interest Income increased $443,000, or 58% for the year ended December 31, 2013 versus 2012 as a result of the receipt of a $323,000 Bank Enterprise Award and recoveries of $448,000 of interest income from prior periods upon the payoff of loans previously on nonaccrual. These amounts were partly offset by a reduction in gains on the sales of SBA loans compared to 2012. Gains on sales of SBA loans were $183,000 in 2013 and $510,000 in 2012.

Non-interest Expense for the 2013 fourth quarter was $1,386,000, compared with $1,406,000 for the 2012 fourth quarter. Increases in Salaries and Employee Benefits expense and Occupancy Expense were offset by lower Operating Expense. Non-interest Expense for the year ended December 31, 2013 was $6,053,000, compared with $5,484,000 for the 2012 fourth quarter. Salaries and Employee Benefits increased as a result of hiring additional staff and the addition of a 401(k) plan in 2013. Company contributions to the plan totaled $66,000 for the year. Stock Based Compensation Expense increased $199,000 for 2013 primarily as a result of a shareholder approved stock option program.

The efficiency ratio was 64% for the 2013 fourth quarter, compared with 82% for the same period in 2012. The efficiency ratio was 84% for the years ended December 31, 2013 and 2012.

Loans, before the allowance for loan losses, increased 16% to $112.0 million at December 31, 2013, compared to $96.5 million at December 31, 2012.

Total Deposits decreased 5% to $124.5 million at December 31 2013, down from $130.3 million at December 31, 2012. The decline was a result of the Bank reducing certain concentrations and focusing on core deposits.

Asset Quality
Nonperforming Assets (the sum of loans past due 90 days and accruing, nonaccrual loans and other real estate owned) decreased to $213,000, or 0.1% of total assets at December 31, 2013, compared with $9,531,000, or 6.2% of total assets at December 31, 2012. All of the nonaccrual loans are current in their payments. The Bank sold its only other real estate owned in February 2013 at a small loss.

The Allowance for Loan Losses was $2.5 million, or 2.2% of loans, at December 31, 2013, compared with $2.9 million, or 3.0% of loans, at December 31, 2012.

The Bank had net recoveries to average loans outstanding of .02% in 2013 and net charge-offs to average loans outstanding of .20% for the year ended December 31, 2012. Nonaccrual loans declined 96% to $213,000 as of December 31, 2013, compared to the prior year end.

Capital Resources
Total Shareholders' Equity increased to $27.4 million at December 31, 2013 from $22.6 million at December 31, 2012. The Bank's book value available to common shareholders per common share increased to $8.54 at December 31, 2013 from $6.86 at December 31, 2012.

At December 31, 2013, the Bank's Tier 1 Leverage Capital Ratio was 16.7% versus 14.9% at December 31, 2012. The Total Risk-based Capital Ratio was 21.0% as of December 31, 2013 and 2012.

ProAmérica Bank provides a full range of financial services, including credit and deposit products, SBA loan products, cash management, and internet banking for businesses, professionals, nonprofits and high net worth individuals from its headquarters office at 888 West Sixth Street, Second Floor, Los Angeles, CA 90017-2728. Information on products and services may be obtained by calling (213) 613-5000 or visiting the Bank's website at www.PROAMERICABANK.com.

NOTE:
This news release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about ProAmérica Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: ProAmérica Bank's timely implementation of new products and services, technological changes, changes in consumer spending and savings habits and other risks discussed from time to time in ProAmérica Bank's reports and filings with banking regulatory agencies. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and ProAmérica Bank does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.


                     PROAMÉRICA BANK BALANCE SHEETS
                         (Dollars in thousands)

                                   December 31,  December 31,        %
                                       2013          2012         Change
                                   ------------  ------------  ------------
                                     Unaudited     Unaudited

Assets:
  Cash and Due From Banks          $      1,678  $      2,440         -31.2%
  Federal Funds Sold                     28,440        43,390         -34.5%
  Interest-bearing Balances at
   Other Financial Institutions           7,008         7,701          -9.0%
                                   ------------  ------------  ------------
    Total Cash and Cash
     Equivalents                         37,126        53,531         -30.6%
                                   ------------  ------------  ------------

  Loans Net of Deferred Loan
   Fees/Costs                           111,955        96,467          16.1%
  Allowance for Loan Losses               2,491         2,869         -13.2%
                                   ------------  ------------  ------------
    Loans Net of Allowance for
     Loan Losses                        109,464        93,598          17.0%
  Premises and Equipment, net               939         1,034          -9.2%
  Federal Home Loan Bank Stock              482           515          -6.4%
  Other Real Estate Owned                     0         3,920        -100.0%
  Accrued Interest Receivable and
   Other Assets                           4,915         1,497         228.3%
                                   ------------  ------------  ------------

    Total Assets                   $    152,926  $    154,095          -0.8%
                                   ------------  ------------  ------------

Liabilities:
  Non-Interest-Bearing Demand
   Deposits                        $     24,352  $     26,443          -7.9%

  Interest-Bearing Demand Deposits
   (NOW Deposits)                         3,113         2,262          37.6%
  Savings and Money Market               31,460        46,686         -32.6%
  Certificates of Deposit                65,533        54,953          19.3%
                                   ------------  ------------  ------------
    Total Interest-bearing
     Deposits                           100,106       103,901          -3.7%
                                   ------------  ------------  ------------
    Total Deposits                      124,458       130,344          -4.5%

  Other Borrowings                            0             0           0.0%
  Accrued Interest Payable and
   Other Liabilities                      1,065         1,121          -5.0%
                                   ------------  ------------  ------------

Total Liabilities                       125,523       131,465          -4.5%

Shareholders' Equity:
  Common Stock                           27,308        27,248           0.2%
  Additional Paid in Capital              1,910         1,717          11.2%
  Accumulated Deficit                    (5,565)      (10,085)        -44.8%
  SBLF Preferred Stock                    3,750         3,750           0.0%
                                   ------------  ------------  ------------
    Total Shareholders' Equity           27,403        22,630          21.1%
                                   ------------  ------------  ------------

    Total Liabilities and
     Shareholders' Equity          $    152,926  $    154,095          -0.8%
                                   ------------  ------------  ------------

    Tier 1 leverage                       16.68%        14.88%
    Tier 1 risk-based capital             19.76%        19.71%
    Total risk-based capital              21.02%        20.97%



                  PROAMÉRICA BANK STATEMENT OF OPERATIONS
                         For the Periods Indicated
               (Dollars in thousands except per share data)

                        Three Months                  Twelve Months
                ----------------------------  -----------------------------
For The Periods
 Ended December                          %                              %
 31,               2013       2012    Change     2013        2012    Change
--------------- ---------- ---------- ------  ----------  ---------- ------
                 Unaudited  Unaudited          Unaudited   Unaudited

Interest
 Income:
  Interest and
   Fees on
   Loans        $    1,637 $    1,492    9.7% $    6,343  $    6,072    4.5%
  Interest on
   Federal
   Funds Sold           18         23  -21.7%         85          57   49.1%
  Interest on
   Balances at
   Other
   Financial
   Institutions         10         12  -16.7%         44          45   -2.2%
  Dividends on
   FHLB and
   PCBB Stock           20          8  150.0%         34          14  142.9%
                ---------- ---------- ------  ----------  ---------- ------
    Total
     Interest
     Income          1,685      1,535    9.8%      6,506       6,188    5.1%

Interest
 Expense:
  Interest on
   Deposit
   Accounts            120        115    4.3%        482         424   13.7%
                ---------- ---------- ------  ----------  ---------- ------

  Net Interest
   Income            1,565      1,420   10.2%      6,024       5,764    4.5%

Provision /
 (Reversal) for
 Loan Losses             0          0     NA        (400)          0     NA
                ---------- ---------- ------  ----------  ---------- ------

  Net Interest
   Income After
   Provision         1,565      1,420   10.2%      6,424       5,764   11.5%
    (Reversal)
     for Loan
     Losses

Non-Interest
 Income:
  Non-Interest
   Income              593        301   97.0%      1,201         758   58.4%

Non-Interest
 Expense:
  Salaries and
   Employee
   Benefits            872        855    2.0%      3,712       3,364   10.3%
  Stock Based
   Compensation
   Expense              26         12  116.7%        240          41  485.4%
  Occupancy
   Expense             161        150    7.3%        618         566    9.2%
  Operating
   Expense             327        389  -15.9%      1,483       1,513   -2.0%
                ---------- ---------- ------  ----------  ---------- ------
    Total Non-
     Interest
     Expense         1,386      1,406   -1.4%      6,053       5,484   10.4%

  Pre-tax
   Income              772        315  145.1%      1,572       1,038   51.4%

Provision for
 Income Taxes       (2,949)         1     NA      (2,948)          1     NA

  Net Income    $    3,721 $      314 1085.0% $    4,520  $    1,037  335.9%
                ---------- ---------- ------  ----------  ---------- ------

  Earnings per
   share -
   basic        $     1.34 $     0.11 1076.5% $     1.64  $     0.38  334.6%
                ---------- ---------- ------  ----------  ---------- ------

  Earnings per
   share -
   diluted      $     1.32 $     0.11 1066.1% $     1.62  $     0.37  332.0%
                ---------- ---------- ------  ----------  ---------- ------



                    PROAMÉRICA BANK FINANCIAL HIGHLIGHTS
                         For the Periods Indicated
         (Dollars in thousands except share and per share data)

                          Three Months                 Twelve Months
                  ---------------------------  ----------------------------
For The Period
 Ended December                           %                             %
 31,                 2013      2012    Change     2013       2012    Change
----------------- --------- ---------  ------  ---------  ---------  ------
                  Unaudited Unaudited          Unaudited  Unaudited
Per Share:
  Net income,
   basic and
   diluted        $    1.34 $    0.11  1076.5% $    1.64  $    0.38   334.6%
  Net income,
   diluted        $    1.32 $    0.11  1066.1% $    1.62  $    0.37   332.0%
  Book value -
   Common         $    8.54 $    6.86    24.5%

Common Shares
 Outstanding
  End of period   2,771,000 2,751,000     0.7% 2,771,000  2,751,000     0.7%
  Average for
   period         2,771,000 2,751,000     0.7% 2,758,880  2,750,604     0.3%

Financial Ratios:
  Performance
   Ratios:
   Return on
    average
    assets             9.90%     0.83% 1092.8%      2.99%      0.74%  304.1%
   Return on
    average
    common equity     70.00%     6.65%  952.6%     22.91%      5.61%  308.4%
   Net interest
    margin             4.24%     3.89%    9.0%      4.04%      4.27%   -5.4%
   Efficiency
    ratio             64.23%    81.70%  -21.4%     83.78%     84.08%   -0.4%

  Capital
   Adequacy
   Ratios
   (Period-end):
   Tier 1
    leverage          16.68%    14.88%   12.1%
   Tier 1 risk-
    based capital     19.76%    19.71%    0.3%
   Total risk-
    based capital     21.02%    20.97%    0.2%

Asset Quality
 Ratios:
  Allowance for
   loan and lease
   losses to:
   Total loans         2.22%     2.97%  -25.3%
   Nonaccrual
    loans           1171.73%    51.14% 2191.2%
  Nonperforming
   assets to:
   Total loans
    and other
    real estate
    owned              0.19%     9.49%  -98.0%
   Total assets        0.14%     6.19%  -97.7%
  Net charge-offs
   (recoveries)
   to average
   loans
   (annualized)       -0.01%    -0.02%  -50.0%     -0.02%      0.20% -110.0%

Asset Quality
 Measures:
  Nonaccrual
   loans (1)      $     213 $   5,611   -96.2%
  Other real
   estate owned           0     3,920  -100.0%
                  --------- ---------  ------
   Total
    nonperforming
    assets              213     9,531   -97.8%

(1) Nonaccrual
 loans less than
 30 days past due $     213 $   5,611   -96.2%

Contact:

ProAmerica Bank
Maria Contreras-Sweet
Chairwoman
213.787.2802

L. Bruce Mills, Jr.
CEO / President
213.787.2803

Frank E. Smith
CFO
213.787.2804

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes how...
WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web communications world. The 6th WebRTC Summit continues our tradition of delivering the latest and greatest presentations within the world of WebRTC. Topics include voice calling, video chat, P2P file sharing, and use cases that have already leveraged the power and convenience of WebRTC.
Without lifecycle traceability and visibility across the tool chain, stakeholders from Planning-to-Ops have limited insight and answers to who, what, when, why and how across the DevOps lifecycle. This impacts the ability to deliver high quality software at the needed velocity to drive positive business outcomes. In his general session at @DevOpsSummit at 19th Cloud Expo, Phil Hombledal, Solution Architect at CollabNet, discussed how customers are able to achieve a level of transparency that e...
Amazon has gradually rolled out parts of its IoT offerings, but these are just the tip of the iceberg. In addition to optimizing their backend AWS offerings, Amazon is laying the ground work to be a major force in IoT - especially in the connected home and office. In his session at @ThingsExpo, Chris Kocher, founder and managing director of Grey Heron, explained how Amazon is extending its reach to become a major force in IoT by building on its dominant cloud IoT platform, its Dash Button strat...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, discussed how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved efficienc...
Internet-of-Things discussions can end up either going down the consumer gadget rabbit hole or focused on the sort of data logging that industrial manufacturers have been doing forever. However, in fact, companies today are already using IoT data both to optimize their operational technology and to improve the experience of customer interactions in novel ways. In his session at @ThingsExpo, Gordon Haff, Red Hat Technology Evangelist, will share examples from a wide range of industries – includin...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busin...
Between 2005 and 2020, data volumes will grow by a factor of 300 – enough data to stack CDs from the earth to the moon 162 times. This has come to be known as the ‘big data’ phenomenon. Unfortunately, traditional approaches to handling, storing and analyzing data aren’t adequate at this scale: they’re too costly, slow and physically cumbersome to keep up. Fortunately, in response a new breed of technology has emerged that is cheaper, faster and more scalable. Yet, in meeting these new needs they...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...