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Manhattan Bancorp Reports Solid Balance Sheet at September 30, 2010

^{Published on 2010-11-02 03:20:45 - 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, and Manhattan Capital Markets, LLC, announced today its third-quarter results and the strong financial position of its balance sheets as of September 30, 2010.

"The Company has made solid progress in 2010. During September of 2010, the Bank launched its mortgage operations. The prospects appear favorable that, by providing this service to our expanding customer base, it will contribute towards the Companya™s profitability as we move forward"

FINANCIAL HIGHLIGHTS
(as of, or for the nine-month period ended September 30, 2010, compared to September 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 27.7%, Tier 1 Risk-Based Capital Ratio of 26.5% and Tier 1 Leverage Ratio of 19.2%.
• Total gross loans grew 14% to $83 million.
• Deposits increased 49% to $102 million, with non-interest bearing deposits at $30 million, or 29% 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 50% to $4.9 million. Non-interest income, attributable largely to growth in our capital markets business, was up significantly from $98,000 to $5.9 million.
• The quarterly net interest margin grew to 4.46% from 4.26%.

aThe Company has made solid progress in 2010. During September of 2010, the Bank launched its mortgage operations. The prospects appear favorable that, by providing this service to our expanding customer base, it will contribute towards the Companya™s profitability as we move forward,a said Kyle Ransford, the Companya™s Chairman of the Board. aWe are also pleased that the Companya™s balance sheet remains solid as the Bank continues to report no non-performing assets, despite the challenges that exist within the economy.a

At September 30, 2010, the Company had $135 million in assets and $26 million in shareholdersa™ equity, while reporting a net loss of $864,000 for the quarter. The Bank continues to take a conservative approach by growing the loan loss reserve in these continued uncertain times. During the third quarter of 2010, the Company increased its loan loss reserves to 2.24% by adding $150,000 to the provision for loan losses.

The Bank, which opened for business on August15, 2007, is a full service bank headquartered in the South Bay area of Los Angeles, California. The Banka™s primary focus is relationship banking and residential mortgages to entrepreneurs, family-owned and closely-held middle market businesses, real estate investors and professional service firms. Additional information may be found 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 the Companya™s operating results, ability to attract deposit and loan customers and the quality of the Companya™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.