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Manhattan Bancorp Reports a Healthy Capital Base and Balance Sheet at June 30, 2010

^{Published on 2010-08-03 14:15:55 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Manhattan Bancorp (aCompanya) (OTCBB:MNHN), the holding company of Bank of Manhattan, N. A. (aBanka), a national bank, and MBFS Holdings, Inc., which owns a majority interest in Banc of Manhattan Capital, LLC, announced today a strong balance sheet, along with an improvement in its net interest income for the period ended June 30, 2010.

"The salient features of the plan focus on strategies to grow the commercial business, develop our consumer platform, (including the possibility of introducing a mortgage product) and clearly outline a path to future profitability."

FINANCIAL HIGHLIGHTS
(as of, or for the six month period ended June 30, 2010, compared to June 30, 2009)

• Capital ratios exceed the levels required to be considered awell-capitalizeda under generally applicable regulatory guidelines (the highest level determined by the regulatory agencies), with a Total Risk-Based Capital Ratio of 23.6%, Tier 1 Risk-Based Capital Ratio of 22.3% and Tier 1 Leverage Ratio of 17.7%.
• Total gross loans grew 19% to $86 million.
• Deposits increased 45% to $87 million, with non-interest bearing deposits reaching $30 million, or 34% of total deposits.
• Credit quality remains strong with no past-due loans, no non-performing loans and no Other Real Estate Owned.
• The business continues to grow its top line. Interest income was up 57% to $3.2 million. Non-interest income, attributable largely to growth in our capital markets business, was up significantly from $51,000 to $3.4 million.
• The quarterly net interest margin grew to 4.83% from 4.42%.

aThe Company continues to grow in 2010. We spent a good part of the second quarter right-sizing the business and building platforms and controls necessary to support our future growth. Management has developed a three-year strategic plan which demonstrates clarity in vision and purpose. We are actively moving forward with its execution,a said Deepak Kumar, the Company President and Chief Executive Officer. aThe salient features of the plan focus on strategies to grow the commercial business, develop our consumer platform, (including the possibility of introducing a mortgage product) and clearly outline a path to future profitability.a

At June 30, 2010, the Company had $119 million in assets and $26 million in shareholdersa™ equity, while reporting $1.3 million in losses for the quarter. The Bank continues to take a conservative approach by growing the loan loss reserve in these continued uncertain times. During the second quarter of 2010, the Company increased its loan loss reserves to 1.96% by adding $207,000 to the provision for loan losses.

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 Manhattana™s primary focus is relationship banking to entrepreneurs, family-owned and closely-held middle market businesses, real estate investors and professional service firms. At October 1, 2009, Manhattan Bancorp, through its wholly owned subsidiary, MBFS Holdings, Inc., acquired a 70% interest in Banc of Manhattan Capital, LLC, a full service mortgage-centric broker/dealer. 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 Companya™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 Manhattana™s operating results, ability to attract deposit and loan customers and the quality of Bank of Manhattana™s earning assets; (2) government regulation; and (3) the other risks set forth in the Companya™s December 31, 2009 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.