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8-K - FORM 8-K - WESTERN LIBERTY BANCORP | y91817e8vk.htm |
EXHIBIT 99.1
Contact: | George Rosenbaum, Chief Financial Officer (702) 966-7400 |
NEWS RELEASE
Western Liberty Bancorp Announces Strategic Moves to Enhance Shareholder Value and Boost Reserves
Las Vegas, NV June 22, 2011Western Liberty Bancorp, Inc. (NASDAQ: WLBC), the holding
company for Service1st Bank of Nevada (Service1st Bank), today reported it
has taken a number of steps to improve shareholder value by exploring potential business changes,
initiating a share repurchase program in accordance with current SEC guidance, and also boosting
reserves for possible loan losses.
Enhanced Valuation Engaged Sandler ONeill + Partners, L.P.
Western Liberty has engaged Sandler ONeill + Partners, L.P. as its financial advisor on strategic
alternatives for maximizing shareholder value, which could include a sale or other business
combinations. We have an abundance of capital at the holding company level and more than adequate
liquidity and strong capital at the bank. We believe neither of these strengths are reflected in
our current market value, said Michel B. Frankel, Chairman of the Board. We believe there are
many ways we can improve our value with the help of the professionals at Sandler ONeill +
Partners, L.P., which include sale transactions, merger possibilities, and share repurchases. We
are exploring these alternatives and will work to accomplish a mutually beneficial outcome for our
shareholders, employees and customers.
Additions to Loan Loss Reserves
While we made progress in several areas during the quarter in managing asset quality, our problem
assets remain a primary focus, said William Martin, Chief Executive Officer. The deterioration
of a few large loans in the second quarter will require us to add a substantial provision for loan
losses, which we currently estimate to be between $4 million and $5 million, based on the
information we have as of June 21, 2011. Even with this substantial increase in provision expense,
we continue to have strong capital ratios, and our tangible book value is expected to remain well
above $5 per share.
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 banks business is generated in the Nevada market.
www.westernlibertybank.com
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
managements views only as of the date hereof. All statements, other than statements of historical
fact, regarding our financial position, business strategy and managements 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 managements 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.
Note Transmitted on GlobeNewswire on June 22, 2011, at 5:30 a.m. Pacific Daylight Time