SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
April 9, 1997
Date of Report (Date of Earliest Event Reported)
MONARCH BANCORP
(Exact Name of Registrant As Specified In Its Charter)
CALIFORNIA
(State or Other Jurisdiction of Incorporation)
0-13551 95-3863296
(Commission File Number) (IRS Employer Identification No.)
30000 Town Center Drive
Laguna Niguel, California 92677
(Address of Principal Executive Offices)(Zip Code)
(714) 495-3300
(Registrant's Telephone Number, including Area Code)
NOT APPLICABLE
(Former Name or Former Address, If Changed Since Last Report)
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Item 5. Other Events.
On April 9, 1997, Monarch Bancorp ("Monarch") announced its First
Quarter Earnings. A copy of the press release issued by Monarch in connection
with the announcement is attached hereto as Exhibit 99.6 and is incorporated by
reference in its entirety.
Item 7. Financial Statements, Pro forma Financial Statements and Exhibits.
(c) Exhibits.
The following exhibits are filed with this Current Report on Form 8-K:
Exhibit
Number Description
99.6 Press Release of Monarch Bancorp, dated April 9, 1997.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunder duly authorized.
Dated: April 10, 1997
MONARCH BANCORP
By: ________________________
Name: Arnold C. Hahn
Title: Executive Vice President and
Chief Financial Officer
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EXHIBIT INDEX
Exhibit
Number Description
99.6 Press Release of Monarch Bancorp, dated April 9, 1997.
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EXHIBIT 99.6
[Monarch Bancorp Letterhead]
FOR IMMEDIATE RELEASE CONTACTS: Hugh Smith
April 9, 1997 Chairman & CEO
(310) 477-2401
Arnold Hahn
Chief Financial Officer
(714) 249-4272
MONARCH BANCORP ANNOUNCES FIRST-QUARTER EARNINGS
Laguna Niguel, California . . . Monarch Bancorp today announced that its
consolidated net income for the quarter ended March 31, 1997 was $893,000, or
$0.03 per share. This compares with earnings of $79,000 and $0.01 per share for
the quarter ended March 31, 1996. Without the amortization of goodwill of
$499,000, net income for the quarter would have been $1,392,000, or $0.04 per
share.
Earnings for the first quarter of 1997 included the earnings of Western Bank
which was acquired on September 30, 1996. The acquisition was accounted for as a
purchase and, therefore, the earnings of Western Bank were not included in the
first quarter of 1996.
Return on average assets increased to 0.73% for the first quarter of 1997 versus
0.47% for the first quarter of 1996. Without goodwill amortization, return on
average assets for the first quarter of 1997 would have been 1.21%. Return on
average equity increased from 2.89% to 6.59% for the first quarter of 1997
versus the first quarter of 1996. Without goodwill amortization, return on
average equity would have been 10.27% for the quarter. The efficiency ratio in
the quarter was 69.0% with goodwill amortization and 61.2% without goodwill
amortization. For the first quarter of 1996, the efficiency ratio was 83.1%.
Hugh Smith, Chairman and Chief Executive Officer of Monarch Bancorp, stated "We
are beginning to demonstrate the results that we anticipated when Western was
acquired at the beginning of the fourth quarter of 1996. We expect continued
improvement in the operations and earnings at Monarch, especially once the
pending acquisition of California Commercial Bankshares is completed."
It is still anticipated that the previously announced merger with California
Commercial Bankshares will be consummated by the end of the second quarter upon
obtaining shareholder and regulatory approval. At the same time it is expected
that Monarch will have its common stock listed on the NASDAQ National Market
System.
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MONARCH BANCORP
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(000's omitted, except share data)
ASSETS 31-MAR-97 31-DEC-96
- ---------------------------------------- -------------- ---------------
Cash and due from banks $ 3,763 $ 37,385
Federal funds sold 17,618 4,217
------ ------
Total cash and cash equivalents 53,381 41,602
Investment securities
Held to maturity 6,928 7,270
Available for sale, at fair value 134,807 157,454
Loans and leases (net) 245,331 254,723
Premises and equipment 5,748 5,780
Other real estate owned 7,121 3,889
Goodwill 28,843 29,342
Other assets 11,883 12,301
------- ------
TOTAL ASSETS $ 494,042 $ 512,361
=============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
- ----------------------------------------
Deposits $ 427,837 $ 442,984
Other borrowings 8,000 11,000
Accrued interest payable
and other liabilities 3,573 4,249
------- -------
TOTAL LIABILITIES 439,410 458,233
Common stock, no par value,
authorized 100,000,000 shares and
34,373,021 outstanding 58,709 58,709
Accumulated deficit (3,823) (4,716)
Unrealized gain on investment
securities available for sale,
net of taxes (254) 135
------ ------
TOTAL SHAREHOLDERS' EQUITY 54,632 54,128
------ ------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 494,042 $ 512,361
=============== =============
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MONARCH BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(000's omitted, except per share data)
For the three month period ended
----------------------------------
31-MAR-97 31-MAR-96
--------------- ---------------
INTEREST AND LOAN FEE INCOME:
Investment securities $ 2,269 $ 403
Federal funds sold 81 71
Loans and leases 6,090 786
----- -----
TOTAL INTEREST INCOME 8,440 1,260
INTEREST EXPENSE:
Deposits 2,336 325
Notes payable 233 -
----- ---
TOTAL INTEREST EXPENSE 2,569 325
----- ---
NET INTEREST INCOME 5,871 935
Less: provision for loan losses 225 50
--- ---
NET INTEREST INCOME AFTER PROVISION
FOR LOAN LOSSES 5,646 885
NON-INTEREST INCOME
Service charges on deposits accounts 346 131
Other service charge and fee income 144 12
Data processing income 39 14
Rental income - 17
Gains on sale of securities
available for sale 107 -
Other income 44 8
--- ---
TOTAL NON-INTEREST INCOME 680 182
NON-INTEREST EXPENSE
Salaries and benefits 2,199 425
Occupancy 502 158
Advertising and business development 110 32
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Other real estate owned (21) 6
Professional services 480 150
Telephone, stationery and supplies 192 48
Data processing 159 -
Goodwill amortization 499 -
--- ---
Other 325 109
----- ---
TOTAL NON-INTEREST EXPENSE 4,445 928
Income before provision for taxes 1,881 139
Provision for taxes 988 60
--- --
NET INCOME $ 893 $ 79
================ =============
PER SHARE INFORMATION
Number of shares and equivalents
(weighted average) 35,514.4 8,228.4
Income per share (dollars) $ 0.03 $ 0.01
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