Add
FRGB to Portfolio
Set Alert
Email to a
Friend
| |||
|
|
Quotes & Info
|
| FRGB > SEC Filings for FRGB > Form 8-K on 4-May-2009 | All Recent SEC Filings |
4-May-2009
Results of Operations and Financial Condition, Regulation FD Disclosure, F
(a) First Regional Bancorp issued a press release on April 30, 2009 announcing its financial results for the quarter ended March 31, 2009. The press release is furnished as Exhibit 99 and is hereby incorporated by reference in its entirety.
Executive management of First Regional Bancorp has provided the following information in response to questions received from securities analysts and others.
First Regional has stated that it meets all financial ratio requirements for "Well Capitalized" status. What are those standards, and how do First Regional's capital ratios compare to the standards?
Under the Prompt Corrective Action program, banking regulators have established different levels of capital adequacy based on the capital ratios of financial institutions. The highest capital level under this program is "Well Capitalized." As First Regional has no material intangible assets, all of First Regional's equity capital, and its equity capital ratios, are tangible. The computation of the March 31, 2009 capital ratios of First Regional Bancorp and its subsidiary, First Regional Bank, along with the Well Capitalized ratio standards are as follows:
Well First First
Capitalized Regional Regional
Standard Bancorp Bank
Equity Capital 147,380,000 239,624,000
Less: Unrealized Gains -628,000 -628,000
Plus: Trust Preferred Securities
Qualifying as Tier I Capital 48,917,000 0
Line 1 Tier I Capital 195,669,000 238,996,000
Plus: Trust Preferred Securities
Qualifying as Tier II Capital 48,583,000 0
Plus: Portion of Loan Loss
Reserve Qualifying as Tier II
Capital 30,784,000 30,770,000
Line 2 Total Capital 275,036,000 269,766,000
Line 3 Average Total Assets 2,470,065,000 2,490,199,000
Line 4 Average Risk-weighted Assets 2,425,003,000 2,423,083,000
Tier I Leverage Ratio
(Line 1 / Line 3) 5.00 % 7.92 % 9.60 %
Tier I Capital Ratio
(Line 1 / Line 4) 6.00 % 8.07 % 9.86 %
Total Capital Ratio
(Line 2 / Line 4) 10.00 % 11.34 % 11.13 %
|
First Regional has reported its total "non-performing assets" and loans past due 30 to 89 days. Can you provide an update on the composition and status of these items?
Per banking industry convention, non-performing assets consist of loans past due 90 or more days and still accruing interest, loans on non-accrual status, and other real estate owned ("OREO"). As of March 31, 2009 First Regional's non-performing assets were as follows:
Amount Status Asset Type Collateral
105 acres of residential land in Homeland
3,734,400 OREO (Riverside County), California
18 acres of residential land in Menifee
5,290,400 OREO (Riverside County), California
Residential land (for 34 units) in
3,445,000 Nonaccrual Land Loan Glendale (Los Angeles County), California
Condominium project in Spring Valley (San
20,744,204 OREO Diego County) California
Construction Luxury residence in Tarzana (Los Angeles
3,930,467 Nonaccrual Loan County) California
23 acres of residential land in
3,050,000 OREO Silverdale (Kitsap County), Washington
Apartment building in El Cajon (San Diego
3,647,800 OREO County), California
Loan to
1,990,000 Nonaccrual Individual Unsecured
Construction Condominium project in Bakersfield (Kern
3,118,500 Nonaccrual Loan County), California
Retail center in Phoenix (Maricopa
832,780 Nonaccrual CRE Loan County), Arizona
Retail center in Chandler (Maricopa
1,006,877 Nonaccrual CRE Loan County), Arizona
Retail center in Chandler (Maricopa
1,036,765 Nonaccrual CRE Loan County), Arizona
Retail center in Mesa (Maricopa County),
1,016,190 Nonaccrual CRE Loan Arizona
9 acres of residential land in Palos
16,575,000 Nonaccrual Land Loan Verdes (Los Angeles County), California
Loan to
1,500,000 Nonaccrual Company Unsecured
11.62 acres of residential land in San
Bernardino (San Bernardino County),
1,741,265 Nonaccrual Land Loan California
1.95 acres of residential land in Corona
845,000 Nonaccrual Land Loan (Riverside County), California
13.74 Acres of industrial land in
1,100,000 Nonaccrual CRE Loan Bellingham (Whatcom County), Washington
Loan to
1,968,037 Nonaccrual Individual Unsecured
Loan to
1,609,617 Nonaccrual Company Unsecured
110,000 s.f. warehouse in Bellingham
1,284,636 Nonaccrual CRE Loan (Whatcom County), Washington
Construction Apartment building in Carpenteria (Santa
23,599,400 Nonaccrual Loan Barbara County), California
Construction 3 single family residences in Carpenteria
2,233,572 Nonaccrual Loan (Santa Barbara County), California
Retail center in Phoenix (Maricopa
898,363 Nonaccrual CRE Loan County), Arizona
29 Acre Commercial Property in Murray
9,180,000 Nonaccrual CRE Loan (Salt Lake County), Utah
|
18,000 s.f. of residential land in
Sherman Oaks (Los Angeles County),
2,125,000 Nonaccrual Land Loan California
Construction Condominium Project in Sparks (Washoe
14,282,842 Nonaccrual Loan County), Nevada
Construction Condominium project in Oceanside (San
12,442,772 Nonaccrual Loan Diego County), California
Construction Luxury residence in Palm Springs
2,377,750 Nonaccrual Loan (Riverside County), California
16,000 s.f. of residential land in Santa
1,642,000 Nonaccrual Land Loan Monica (Los Angeles County), California
100,000 s.f. of residential land in
Valley Village (Los Angeles County),
9,375,000 Nonaccrual Land Loan California
62,000 s.f. of residential land in Valley
7,068,259 Nonaccrual Land Loan Village (Los Angeles County), California
4.76 acres of residential land in Sunland
800,000 Nonaccrual Land Loan (Los Angeles County), California
5.5 acres of residential land in
2,898,600 Nonaccrual Land Loan Henderson (Clark County), California
29,000 s.f. of residential land in North
Hollywood (Los Angeles County),
3,450,000 Nonaccrual Land Loan California
24 acres of commercial and residential
Land land in Ontario (San Bernardino County),
4,852,852 Nonaccrual Development California
Construction 22 unit condominium project in Los
4,165,924 Nonaccrual Loan Angeles (Los Angeles County), California
30,000 s.f. residential land in Thousand
735,000 Nonaccrual Land Loan Oaks, (Ventura County), California
Construction 26 Unit condominium project in Sherman
8,521,286 Nonaccrual Loan Oaks (Los Angeles County), California
Loan to
528,124 Nonaccrual Individual Unsecured
180 Unit Apartment in North Hollywood
9,193,419 Nonaccrual CRE Loan (Los Angeles County), California
98 Unit Apartment in Las Vegas (Clark
33,725 Nonaccrual CRE Loan County), Nevada
98 Unit Apartment in Las Vegas (Clark
530,225 Nonaccrual CRE Loan County), Nevada
6 Unit Apartment in Valley Village (Los
1,217,250 Nonaccrual Land Loan Angeles County), California
6 Unit Apartment in Valley Village (Los
1,217,250 Nonaccrual Land Loan Angeles County), California
6 Unit Apartment in Valley Village (Los
1,217,250 Nonaccrual Land Loan Angeles County), California
14,000 s.f. of residential land in Los
1,565,000 Nonaccrual Land Loan Angeles (Los Angeles County), California
128 Unit Apartment in Daphne (Baldwin
1,086,950 Nonaccrual CRE Loan County), Alabama
Restaurant in Summerland (Santa Barbara
3,508,093 Nonaccrual CRE Loan County), California
Loan to
24,220,912 Nonaccrual Company Unsecured
82,000 s.f. of residential land in Valley
8,512,500 Nonaccrual Land Loan Village (Los Angeles County), California
29,000 s.f. of residential land in Valley
3,562,024 Nonaccrual Land Loan Village (Los Angeles County), California
Construction 29 Unit condominium project in Beverly
14,476,201 90+ days past due Loan Hills (Los Angeles County), California
Loan to
199,829 90+ days past due Individual Unsecured
Construction 7 Unit condominium project in Los Angeles
3,469,308 90+ days past due Loan (Los Angeles County), California
264,653,618 Gross Non-performing Assets
23,790,271 Less: prior writedowns
25,000 Less: writedowns this period
240,838,347 Reported Non-performing Assets
41,946,213 Less: specific reserves
198,892,134 Net Book Value of Non-performing Assets
|
As indicated above, most of First Regional's nonperforming assets at March 31, 2009 were secured by or consisted of real property. The value of that real property serves to mitigate potential losses that may otherwise result from a nonperforming asset. In addition, applicable accounting standards require the Company to evaluate property values periodically relative to their carrying value on the Company's books or the loans which that property secures. Accordingly, based on current estimates of property values discounted for anticipated costs of sale and other qualitative factors, the loss potential associated with the Company's nonperforming assets has already been recognized and is reserved for in the Company's financial statements.
First Regional's loans which were 30 to 89 days past due as of March 31, 2009 were as follows:
Amount Status Asset Type Collateral
Past Due Condominium project in Los Angeles
6,993,646 30-89 days Construction Loan County, California
Past Due 22 unit condominium project in Thousand
8,149,789 30-89 days Construction Loan Oaks (Ventura County), California
Past Due 32 unit condominium project in Santa
9,708,340 30-89 days Construction Loan Monica (Los Angeles County), California
. . .
|
(d) Exhibits
99 Press Release of First Regional Bancorp, dated April 30, 2009, announcing financial results for the quarter ended March 31, 2009.
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.
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.
Statements made herein are made as of the date hereof only. The Company shall have no obligation to update information and forward-looking statements presented herein.
|
|