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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
Date of Report (Date of earliest event reported) March 4, 1997
REGENCY BANCORP
(Exact name of registrant as specified in its charter)
California 33-82150 77-0378956
(State or other jurisdiction (Commission File Number) (IRS Employer
of incorporation) Identification No.)
7060 N. Fresno, Fresno, California 93720
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (209) 438-2600
Not Applicable
(Former name or former address, if changed since last report).
Page 1 of 8
The Exhibit Index is on Page 4.
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Item 5. OTHER EVENTS.
Item 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) FINANCIAL STATEMENTS.
Not Applicable.
(b) PRO FORMA FINANCIAL INFORMATION.
Not Applicable.
(c) EXHIBITS.
(99.1) Press Release dated March 4, 1997.
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SIGNATURES
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 hereunto duly authorized.
REGENCY BANCORP
Date: March 6, 1997 Steven F. Hertel
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Steven F. Hertel
President
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EXHIBIT INDEX
Sequential
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Exhibit No. Description Page No.
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Press Release dated
99.1 March 4, 1997 5
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EXHIBIT 99.1 FOR IMMEDIATE RELEASE
Contact: Wil Goodrich, Vice President-Director of marketing (209) 438-600
REGENCY BANCORP POSTS SUBSTANTIAL GAIN FOR 1996
FRESNO, March 4 -- Regency Bancorp, parent company of Fresno's Regency
Bank, today reported net 1996 annual income of $1.01 million, a $2.78 million
improvement over the holding company's financial performance the previous year.
Total assets for the company also grew 10.6%, ending 1996 with $181.1 million,
the highest since the bank was formed in 1980.
Regency's President and CEO, Steve Hertel, in announcing the earnings,
stated that, "This substantial improvement is a direct result of two major
efforts throughout the year. The staff and management of our real estate
investment subsidiary, Regency Service Corporation (RSC) have worked tirelessly
to comply with the federal mandate to divest the company's residential
properties.
"While the investment remains substantial," Hertel continued, "the number
of residential lots has declined over the past three years from 941 in 94 and
766 in 95 to 310 in 1996, with 22 of the latter already in escrow. Late in the
year, the FDIC acknowledged our efforts and extended the deadline to be fully
divested for up to two years. Though it was an expensive effort, it will allow
us to accelerate this process and perhaps be fully divested over the next 18
months."
"Equally important," he said, "was the continued growth and excellent
performance of Regency Bank. Not only did the bank increase its deposit base
11.2 % from the end of 1995, its total bottom line financial performance allowed
the holding
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company to realize substantial net income, sufficient to compensate for RSC's
continued divestiture expenses."
Robert Longatti, the bank's executive vice president and chief credit
officer, reported that the bank's outstanding loan quality was another reason
for its success. "For the last few years, our staff has achieved an enviable
record in growing our total loans, net of reserves and other deferred expenses,
to $99.8 million, an increase of 5.6% from last year, and a growth of almost 56%
in the last five years.
"Though this is a substantial growth," Longatti continued, "its importance,
perhaps, is exceeded by the quality of loans we've been able to make in the
Fresno-Clovis-Madera areas. In 1996, bank-only, non accrual loans (exclusive of
loans RSC has made) was only 0.05%. We actually ended 1996 with a bank-only,
non-accrual loan balance of just $51,000. In 1996, we had to charge off less
than $170,000."
Within its total loan portfolio of $102.5 million at year end, the bank had
approximately 55% in commercial credits; 23% in real estate construction loans;
13% in term real estate loans; and 9% in consumer credits from Visa cards, to
auto, equity, and medical procedure loans.
In 1996, Regency Bancorp earned $0.54 per share of common stock as compared
to a loss of $0.98 per share in 1995. Its total capital rose to $13.5 million,
up 10.8% from $12.9 million a year ago. The company continues to significantly
exceed all federal and state capital requirements.
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The bank's subsidiary, Regency Investment Advisors, Inc. (RIA), an
SEC-registered money management and financial consulting firm, had a similarly
successful year, growing their total income almost 45%.
Hertel, who was appointed by the board to be the holding company and bank's
chairman in addition to his other duties, also noted that the board declared,
"four quarterly cash dividends during 1996 totaling $0.24 per share, up 20% from
1995's dividends.
"For the fourth year in a row," he continued, "our SBA Department led the
15-county central California area in the total number of Small Business
Administration guaranteed loans approved as well as the dollars provided to fund
local businesses. In addition, the bank was California's leader in number of
loans guaranteed by the U.S. Department of Agriculture along with two other
community banks. These special credits encourage rural area development and are
known as Business and Industry loans."
During the year, Regency Bank was named the financial industry
representative to receive the first annual "Excellence in Business Award for
1996." Hertel, himself, was named the "1996 Central California Financial
Services Advocate of the Year" by the Fresno District Office of the U.S. SBA
last July.
Regency Bancorp is an Employee Stock Ownership Plan (ESOP) company, and in
the last year, the ESOP Trust, along with the employees' 401k plan, became the
company's largest share-holder with almost 11% of the holding company's common
stock. Primarily central valley families and investors own the remainder of the
stock which is traded over the counter by four national market makers.
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The holding company's Regency Bank, in mid-August, opened its fourth
banking office. The Madera branch, the bank's first full service branch outside
of Fresno, quickly grew and completed 1996 with more than $10 million in
deposits, far exceeding the company's projections. It's courier service also
continued to grow during the year, and now serves nearly 800 local businesses on
a weekly basis.
Its subsidiary, RIA, in addition to its excellent earnings trend, exceeded
its $75 million annual growth goal by managing $77.2 million in local investment
portfolios on the last day of 1996. At the end of February this year, the
growth had continued with over $80 million under management.
In 1997's second quarter, Regency Bank will be introducing a new Visa Cash
Access card which will provide its checking customers access to their funds
three ways rather than writing checks. This new product will be followed,
perhaps as soon as the end of the second quarter, with a full selection of
electronic services such as home or office access to accounts by personal
computer (PC). Available seven days a week, 24 hours a day, these new services
will allow touch tone access to account balances, receipt of checks written,
fund transfers, bill paying, and other banking services by phone as well as PC.
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March 4, 1997
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