Manhattan Bancorp Reports Balance Sheet Strength and Growth at March 31, 2009
May 15, 2009 5:00:00 PM
Copyright Business Wire 2009
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View Additional ProfilesLOS ANGELES--(BUSINESS WIRE)-- Manhattan Bancorp ("Company") (OTCBB:MNHN), the holding company of Bank of Manhattan, N. A. ("Bank"), a national bank, announced that total assets increased to $97.2 million at March 31, 2009, growth in excess of 100% since March 31, 2008. Net loans outstanding grew to $60.8 million, representing an annual increase of 91%. Funding for the loan growth came primarily from an increase in deposits which totaled $51.9 million at March 31, 2009, representing an increase of 86% from the March 31, 2008 level.
"We are very pleased with our ability to continue our organic growth in these challenging times," stated Jeffrey M. Watson, President and Chief Executive Officer. "With our solid capital base and strong balance sheet, we are in a good position to capitalize on current market uncertainties and further accelerate our business plan."
At March 31, 2009, the Company's shareholder equity was $33,244,000 and the total risk-based capital ratio of 50% stands well above the regulatory definition of "Well Capitalized" level of 10%. Additionally, the loan portfolio continues to perform in a solid manner with no past dues, no non-performing loans and no Other Real Estate Owned. While no single loan category represents over 51% of the outstanding portfolio, the largest component, real estate related loans (consisting of multi-family, owner user and investor commercial and industrial real estate) is conservatively underwritten with a weighted average loan to value ratio of under 50% and a debt service coverage ratio of 1.75%.
As is anticipated for a company in the initial operating stages, Manhattan Bancorp reported a net loss of $1,233,000 for the quarter ended March 31, 2009. Included in the first quarter expenses are $196,000 in non-cash compensation expense and $174,000 provision to the allowance for loan losses. In spite of the challenging interest rate environment, net interest income before provision for loan loss improved 11% over the prior quarter due to a lower cost of deposits combined with increased interest income as a result of loan growth experienced in the quarter. At March 31, 2009, the loan loss reserve represented 1.85% of gross outstanding loans. As previously stated, the Bank had no non-performing assets or loans over 30 days past due at March 31, 2009.
Bank of Manhattan, which opened for business on August 15, 2007, is a full service bank headquartered in the South Bay area of Los Angeles, California. Bank of Manhattan's primary focus is relationship banking to entrepreneurs, family-owned and closely-held middle market businesses, real estate investors and professional service firms. Additional information is available at www.BankManhattan.com.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to the Company's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on Bank of Manhattan's operating results, ability to attract deposit and loan customers and the quality of Bank of Manhattan's earning assets; (2) government regulation; and (3) the other risks set forth in the Company's December 31, 2008 10-K, ITEM 1A. Risk Factors filed with the Securities and Exchange Commission. The Company does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
Financial
Data-Manhattan
Bancorp and
Subsidiary
(Unaudited)
Quarter Quarter Quarter Quarter Quarter
Ended Ended Ended Ended Ended
(In thousands) Mar. 31, Dec. 31, Sep. 30, Jun. 30, Mar. 31,
_____ 2009 2008 2008 2008 2008
Balance Sheet - At
Period End
Cash and due from $ 15,848 $ 19,710 $ 764 $ 1,432 $ 749
banks
Investments and fed 17,085 12,603 19,898 13,760 12,915
funds sold
Net loans 60,810 56,467 47,994 41,769 31,758
Other assets 3,478 3,260 3,150 3,106 3,104
Total Assets $ 97,221 $ 92,040 $ 71,806 $ 60,067 $ 48,526
Non-interest-bearing $ 15,423 $ 15,379 $ 13,124 $ 12,290 $ 8,582
deposits
Interest-bearing 36,468 32,612 33,951 22,437 19,279
deposits
Other borrowings 11,500 9,500 4,500 4,500 -
Other liabilities 586 261 564 447 351
Stockholders' equity 33,244 34,288 19,667 20,393 20,314
Total Liabilities
and Shareholders' $ 97,221 $ 92,040 $ 71,806 $ 60,067 $ 48,526
Equity
Income Statement
Interest income (not $ 951 $ 909 $ 909 $ 696 $ 560
tax-equivalent)
Interest expense 216 248 310 140 130
Net interest income 735 661 599 556 430
Provision for loan 174 275 102 163 166
losses
Net interest income
after provision
for loan losses 561 386 497 393 264
Non-interest income 17 11 18 11 13
Non-interest expense 1,811 1,498 1,513 1,557 1,444
Net Loss $ (1,233 ) $ (1,101 ) $ (998 ) $ (1,153 ) $ (1,167 )
Return on average -5.71 % -5.98 % -5.07 % -8.92 % -10.73 %
assets
Return on average -14.75 % -21.73 % -19.85 % -22.84 % -22.54 %
equity
_____
Per share:
Net loss - basic $ (0.31 ) $ (0.42 ) $ (0.38 ) $ (0.46 ) $ (0.47 )
Weighted average 3,988 2,646 2,616 2,528 2,487
shares used
Book value per
common share at $ 7.94 $ 8.21 $ 7.52 $ 7.80 $ 8.17
period end
Ending shares 3,988 3,988 2,616 2,616 2,487
Assets Quality &
Capital - At
Period-End
Non-accrual loans $ - $ - $ - $ - $ -
Loans past due 90 - - - - -
days or more
Other real estate - - - - -
owned
Total non-performing $ - $ - $ - $ - $ -
loans
Allowance for loan
loss/total gross 1.85 % 1.70 % 1.44 % 1.41 % 1.35 %
loans
Non-accrual
loans/total gross N/A N/A N/A N/A N/A
loans
Non-performing
assets to total N/A N/A N/A N/A N/A
assets
Source: Manhattan Bancorp
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Manhattan Bancorp
Jeffrey M. Watson
President/Chief Executive Officer
Phone: 310-606-8000
Fax: 310-606-8090
or
Dean Fletcher
Executive Vice President/Chief Financial Officer
Phone: 310-606-8000
Fax: 310-606-8090
