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Western Liberty Bancorp Reports 2010 Financial Results

Stocks in this article: WLBC

Classified assets, which include nonperforming loans as well as loans that continue to perform but have some identified weakness totaled $22.8 million, or 21% of the loan portfolio. "We continue to work with borrowers to reduce our level of classified assets and are exploring a number of financial alternatives. We believe with the classified and nonperforming assets marked-to-market, we have flexibility in resolving the performance of these assets," Rosenbaum noted. 

About Western Liberty Bancorp

Western Liberty Bancorp is a Nevada bank holding company which conducts operations through Service1st Bank of Nevada, its wholly owned banking subsidiary. Service1st Bank operates as a traditional community bank and provides a full range of deposit, lending and other banking services to locally-owned businesses, professional firms, individuals and other customers from its headquarters and two retail banking facilities located in the greater Las Vegas area. Services provided include basic commercial and consumer depository services, commercial working capital and equipment loans, commercial real estate loans, and other traditional commercial banking services. Primarily all of the bank's business is generated in the Nevada market.

www.westernlibertybank.com

Sources: Nevada economy  http://cber.unlv.edu/cond.html

SNL US Bank index

http://www.snl.com/InteractiveX/indexFinancials.aspx?Form_Name=UserInputs&Refreshed=1&SelectedIndex2=IID:25&Industry=0%2c18%2c1%2c2%2c39%2c8%2c7%2c22%2c10%2c21

FORWARD LOOKING STATEMENTS

This release may contain "forward-looking statements" that are subject to risks and uncertainties. Readers should not place undue reliance on forward-looking statements, which reflect management's views only as of the date hereof. All statements, other than statements of historical fact, regarding our financial position, business strategy and management's plans and objectives for future operations are forward-looking statements. When used in this report, the words "anticipate," "believe," "estimate," "expect," and "intend" and words or phrases of similar meaning, as they relate to Western Liberty or management, are intended to help identify forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Although we believe that management's expectations as reflected in forward-looking statements are reasonable, we cannot assure readers that those expectations will prove to be correct. Forward-looking statements are subject to various risks and uncertainties that may cause our actual results to differ materially and adversely from our expectations as indicated in the forward-looking statements. These risks and uncertainties include our ability to maintain or expand our market share or net interest margins, and to implement our marketing and growth strategies. Further, actual results may be affected by our ability to compete on price and other factors with other financial institutions; customer acceptance of new products and services; the regulatory environment in which we operate; and general trends in the local, regional and national banking industry and economy as those factors relate to our cost of funds and return on assets. In addition, there are risks inherent in the banking industry relating to collectability of loans and changes in interest rates. Many of these risks, as well as other risks that may have a material adverse impact on our operations and business, are identified in our other filings with the SEC. However, you should be aware that these factors are not an exhaustive list, and you should not assume these are the only factors that may cause our actual results to differ from our expectations.

     
     
Balance Sheet    
(Dollars in thousands, except per share data)    
(Unaudited) December 31, December 31,
  2010 2009
     
Assets:    
Cash and due from banks  $ 11,675  $ 971
Money market funds  52,206  86,998
Interest-bearing deposits in banks  39,346  -- 
Cash and cash equivalents  103,227  87,969
Certificates of deposits  26,889  -- 
Securities, available for sale  1,819  -- 
Securities, held to maturity  5,314  -- 
Loans:    
Construction, land development and other land  5,923  --
Commercial real estate  54,975  --
Residential real estate  9,247  --
Commercial and industrial  35,946  --
Consumer 131  --
Plus: net deferred loan costs  37  --
Total loans  106,259  --
Less: allowance for loan losses  (36)  --
Net loans  106,223  --
Premises and equipment, net  1,228  --
Other real estate owned, net  3,406  -- 
Goodwill, net  5,633  -- 
Other intangibles, net  768  -- 
Accrued interest receivable and other assets  3,039  551
Total assets  $ 257,546  $ 88,520
     
Liabilities:    
Demand deposits, noninterest bearing  $ 67,087  $ --
NOW and money market  56,509  -- 
Savings deposits  1,273  -- 
Time deposits $100,000 or more  30,498  -- 
Other time deposits  4,919  -- 
Total deposits  160,286  -- 
Accrued interest and other liabilities  3,431  628
Total liabilities  163,717  628
     
Shareholders' Equity:    
Common stock  1  1
Additional paid-in capital  117,317  103,730
Accumulated deficit  (23,489)  (15,839)
Total shareholders' equity  93,829  87,892
 Total liabilities and stockholders' equity  $ 257,546  $ 88,520
   
   
Income Statement  
(Dollars in thousands, except per share data) Year Ended December 31,
(Unaudited)    
  2010 2009
Interest Income:    
Interest and fees on loans  $ 1,403  $ --
Interest on securities, taxable  47  --
Interest on Federal funds sold and other  80  139
Total interest income  1,530  139
Interest Expense:    
Interest expense on deposits 115  --
Net interest income 1,415 139
Provision for loan losses 36  --
Net interest income after provision for loan losses 1,379 139
     
Other Operating Income:    
Service charges 57  --
Loan and late fees 3  --
Other  48  --
Total other operating income 108  --
     
Other Operating Expense:    
Salaries and employee benefits 1,461 72
Occupancy, equipment and depreciation 269  --
Computer service charges 51  --
Federal deposit insurance 90  --
Legal and professional fees 3,851 12,612
Advertising and business development 7 1
Insurance 825 301
Telephone 19  --
Printing and supplies 314 748
Stock-based compensation 1,770 869
Other 480 434
Total other operating expense 9,137 15,037
Net loss  $ (7,650)  $ (14,898)
     
Basic EPS  $ (0.65)  $ (0.45)
Diluted EPS  $ (0.65)  $ (0.45)
Average basic shares    
Average diluted shares    
     
Note: 2010 financial results reflect operations of Service1st Bank from October 28, 2010, to December 31, 2010, only. 
     
     
Selected Financial Highlights     
(Dollars in thousands, except per share data) December 31, 
(Unaudited) 2010 2009
Per Share data:    
Book Value  $ 6.22 $ 8.02
Tangible Book Value  $ 5.79 N/A
     
Selected Balance Sheet Data:    
Total Assets $ 257,546 $ 88,520
Cash and cash equivalents 103,227 87,969
Gross loans, including net deferred loan costs 106,259 --
Allowance for loan losses 36 --
Deposits 160,286 --
Stockholders' equity 93,829 87,891
     
Asset Quality:    
Nonperforming loans $ 10,426 $ N/A
Allowance for loan losses as a percentage of nonperforming loans 0.35% N/A
Allowance for loan losses as a percentage of portfolio loans 0.03% N/A
Nonperforming loans as a percentage of total portfolio loans 9.81% N/A
Nonperforming assets as a percentage of total assets 5.37% N/A
Net charge-offs to average portfolio loans  0.00% N/A
     
Capital Ratios:    
Average equity to average assets 44.11% 68.73%
Tier 1 equity to average assets 35.90% N/A
Tier 1 Risk-Based Capital ratio  35.90% N/A
Total Risk-Based Capital ratio  36.30% N/A
CONTACT: George Rosenbaum
         Chief Financial Officer
         (702) 966-7400

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