Fifteen Consecutive Quarters of Profit Announced by First American Bank

Apr 20, 2001, 01:00 ET from First American Bank

    ROSEMEAD, Calif., April 20 /PRNewswire Interactive News Release/ --
 First American Bank (OTC Bulletin Board:   FTAB) reported another strong quarter
 in 2001 with net earnings of $597,000.  Despite not having realized any income
 tax "benefits" for the first quarter as occurred in the same period in 2000
 (and in fact incurring income tax expenses for financial reporting purposes of
 $433,000), earnings per share were a solid $0.26 at March 31, 2001.  With a
 decline in marketplace interest rates tightening interest spreads for many
 financial institutions, net interest income ("gross profit") for the Bank,
 nonetheless, rose 10% over the previous year due to a greater volume of loans
 outstanding.  Income also benefited from Statement of Financial Accounting
 Standards (S.F.A.S. No. 133 -- required recognition of $279,000 first quarter
 gain in the market value of an interest rate floor contract.  Earnings before
 income taxes exceeded $1 million, a $563,000 (or 120%) increase from the same
 period in 2000.
     Total assets grew 8.5% from a year ago to $156.5 million.  Loans, net of
 deferred fees and allowance for loan losses, were $92 million at March 31,
 2001, increasing $16.7 million (or 22.1%) from  $75.3 million at March 31,
 2000.  Deposits expanded $6.5 million (or 4.9%) over the previous year to
 $138.3 million.
     "In spite of the uncertainty facing today's financial markets, First
 American Bank has shown its ability to thrive and excel while continually
 providing exceptional quality service to its business clients," commented
 Chief Executive Larry Frampton, adding "customers not only desire personalized
 service from our Bank but also the assurance of sustainability as evidenced by
 solid growth and profitability during such volatile economic conditions.
 Through our unwavering strategic efforts, we are providing both."
     Stockholders' equity grew $4.4 million (38.9%) over the prior year
 resulting in a $1.90 (or 37.6%) increase in book value per share to $6.95 at
 March 31, 2001.  This was due not only to $2.4 million in increased retained
 earnings but also a $1.9 million improvement in "accumulated other
 comprehensive income" at quarter-end versus a year ago.  The preponderance of
 the latter, $1.75 million, arose from a rise in value of available-for-sale
 investment securities and the rest from a $224,000 deferred gain through
 December 31, 2000 (pre-S.F.A.S. No. 133) on an interest rate floor contract
 purchased in the third quarter of 2000.
     At March 31, 2001, First American Bank had 2,257,756 shares outstanding,
 with approximately 800 shareholders, and conducted business through four full-
 service banking branches in Rosemead, South Pasadena, San Fernando, and the
 downtown Los Angeles business district.
 
     Certain matters discussed in this press release may constitute forward-
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995 and as such may involve risks and uncertainties.  The
 Bank's actual results, performance, or achievements may differ significantly
 from the results, performance, or achievements expressed or implied in such
 forward-looking statements.
 
 
     FIRST AMERICAN BANK
     BALANCE SHEETS MARCH 31, 2001 AND 2000
                    Unaudited
                                                      3/31/01        3/31/00
     ASSETS                                         (in 000's)     (in 000's)
     Federal Funds Sold                                $8,408         $9,785
     Time Certificates of Deposit Owned                    --            198
     Investment Securities available-for-sale          36,639         40,597
     Investment Securities held-to-maturity             1,311          1,456
     Federal Reserve Bank &
      Federal Home Loan Bank Stock                        647            286
     Net Loans                                         91,955         75,310
         Total Earning Assets                         138,960        127,632
     Cash and Due From Banks                           11,644         10,395
     Other Assets                                       5,919          6,173
         TOTAL ASSETS                                $156,523       $144,200
 
     LIABILITIES AND EQUITY
     Deposits                                        $138,319       $131,838
     Other Liabilities                                  2,501          1,054
     Stockholders' Equity
       Common Stock                                    10,433         10,354
      Accumulated Other Comprehensive Gain (Loss)         525         (1,353)
       Retained Earnings                                4,745          2,307
         Total Stockholders' Equity *                  15,703         11,308
       TOTAL LIABILITIES AND EQUITY                  $156,523       $144,200
 
     * Book Value Per Share                             $6.95          $5.05
 
 
     STATEMENTS OF INCOME
     FOR QUARTERS ENDED MARCH 31, 2001 AND 2000
                      Unaudited
                                                       3/31/01        3/31/00
                                                     (in 000's)     (in 000's)
     Interest Income                                   $3,150         $2,801
     Interest Expense                                     882            744
     Net Interest Income                                2,268          2,057
 
     (Reversal) Provision for Loan Losses                  --           (100)
     Noninterest Income                                   295            238
     Derivative Gains                                     279             --
     Realized Losses on Available-for-Sale Securities      --            193
     Noninterest Expense                                1,812          1,735
     Earnings Before Income Taxes                       1,030            467
 
     Income Taxes (Benefit)                               433           (289)
     NET EARNINGS                                        $597           $756
 
     Earnings Per Share                                 $0.26          $0.34
 
 
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SOURCE First American Bank
    ROSEMEAD, Calif., April 20 /PRNewswire Interactive News Release/ --
 First American Bank (OTC Bulletin Board:   FTAB) reported another strong quarter
 in 2001 with net earnings of $597,000.  Despite not having realized any income
 tax "benefits" for the first quarter as occurred in the same period in 2000
 (and in fact incurring income tax expenses for financial reporting purposes of
 $433,000), earnings per share were a solid $0.26 at March 31, 2001.  With a
 decline in marketplace interest rates tightening interest spreads for many
 financial institutions, net interest income ("gross profit") for the Bank,
 nonetheless, rose 10% over the previous year due to a greater volume of loans
 outstanding.  Income also benefited from Statement of Financial Accounting
 Standards (S.F.A.S. No. 133 -- required recognition of $279,000 first quarter
 gain in the market value of an interest rate floor contract.  Earnings before
 income taxes exceeded $1 million, a $563,000 (or 120%) increase from the same
 period in 2000.
     Total assets grew 8.5% from a year ago to $156.5 million.  Loans, net of
 deferred fees and allowance for loan losses, were $92 million at March 31,
 2001, increasing $16.7 million (or 22.1%) from  $75.3 million at March 31,
 2000.  Deposits expanded $6.5 million (or 4.9%) over the previous year to
 $138.3 million.
     "In spite of the uncertainty facing today's financial markets, First
 American Bank has shown its ability to thrive and excel while continually
 providing exceptional quality service to its business clients," commented
 Chief Executive Larry Frampton, adding "customers not only desire personalized
 service from our Bank but also the assurance of sustainability as evidenced by
 solid growth and profitability during such volatile economic conditions.
 Through our unwavering strategic efforts, we are providing both."
     Stockholders' equity grew $4.4 million (38.9%) over the prior year
 resulting in a $1.90 (or 37.6%) increase in book value per share to $6.95 at
 March 31, 2001.  This was due not only to $2.4 million in increased retained
 earnings but also a $1.9 million improvement in "accumulated other
 comprehensive income" at quarter-end versus a year ago.  The preponderance of
 the latter, $1.75 million, arose from a rise in value of available-for-sale
 investment securities and the rest from a $224,000 deferred gain through
 December 31, 2000 (pre-S.F.A.S. No. 133) on an interest rate floor contract
 purchased in the third quarter of 2000.
     At March 31, 2001, First American Bank had 2,257,756 shares outstanding,
 with approximately 800 shareholders, and conducted business through four full-
 service banking branches in Rosemead, South Pasadena, San Fernando, and the
 downtown Los Angeles business district.
 
     Certain matters discussed in this press release may constitute forward-
 looking statements within the meaning of the Private Securities Litigation
 Reform Act of 1995 and as such may involve risks and uncertainties.  The
 Bank's actual results, performance, or achievements may differ significantly
 from the results, performance, or achievements expressed or implied in such
 forward-looking statements.
 
 
     FIRST AMERICAN BANK
     BALANCE SHEETS MARCH 31, 2001 AND 2000
                    Unaudited
                                                      3/31/01        3/31/00
     ASSETS                                         (in 000's)     (in 000's)
     Federal Funds Sold                                $8,408         $9,785
     Time Certificates of Deposit Owned                    --            198
     Investment Securities available-for-sale          36,639         40,597
     Investment Securities held-to-maturity             1,311          1,456
     Federal Reserve Bank &
      Federal Home Loan Bank Stock                        647            286
     Net Loans                                         91,955         75,310
         Total Earning Assets                         138,960        127,632
     Cash and Due From Banks                           11,644         10,395
     Other Assets                                       5,919          6,173
         TOTAL ASSETS                                $156,523       $144,200
 
     LIABILITIES AND EQUITY
     Deposits                                        $138,319       $131,838
     Other Liabilities                                  2,501          1,054
     Stockholders' Equity
       Common Stock                                    10,433         10,354
      Accumulated Other Comprehensive Gain (Loss)         525         (1,353)
       Retained Earnings                                4,745          2,307
         Total Stockholders' Equity *                  15,703         11,308
       TOTAL LIABILITIES AND EQUITY                  $156,523       $144,200
 
     * Book Value Per Share                             $6.95          $5.05
 
 
     STATEMENTS OF INCOME
     FOR QUARTERS ENDED MARCH 31, 2001 AND 2000
                      Unaudited
                                                       3/31/01        3/31/00
                                                     (in 000's)     (in 000's)
     Interest Income                                   $3,150         $2,801
     Interest Expense                                     882            744
     Net Interest Income                                2,268          2,057
 
     (Reversal) Provision for Loan Losses                  --           (100)
     Noninterest Income                                   295            238
     Derivative Gains                                     279             --
     Realized Losses on Available-for-Sale Securities      --            193
     Noninterest Expense                                1,812          1,735
     Earnings Before Income Taxes                       1,030            467
 
     Income Taxes (Benefit)                               433           (289)
     NET EARNINGS                                        $597           $756
 
     Earnings Per Share                                 $0.26          $0.34
 
 
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 SOURCE  First American Bank