Los Angeles Business Journal

Shares Soar as Manhattan Bancorp Moves to Profit

By Deborah Crowe Wednesday, November 7, 2012

Shares of Manhattan Bancorp soared 43 percent on Wednesday after the company reported that it had moved from a loss to a profit in the third quarter, boosted by a recent acquisition.

The El Segundo holding company for Bank of Manhattan late Tuesday reported net income of $2.6 million (21 cents a share), compared with a net loss of $967,000 in the same period a year earlier. Interest income rose 36 percent to $4.7 million. Non-interest income jumped 579 percent to $12.7 million.

The third quarter was the first full quarter since Manhattan in June completed its stock acquisition of Professional Business Bank, creating a bank with combined assets of more than $406 million. The merged bank ended the quarter with total assets of more than $469 million.

“These robust earnings are a result of realizing economies of scale from merging two sound but over-burdened community business banks,” Chief Executive Terry Robinson said in a statement.

Shares closed up $1.09, or 43 percent, to $3.64 on the Over-the-Counter Bulletin Board.