Pan Pacific Bank Announces Four Consecutive Profitable Quarters

       Pan Pacific Bank Announces Four Consecutive Profitable Quarters

PR Newswire

FREMONT, Calif., Jan. 17, 2013

FREMONT, Calif., Jan. 17, 2013 /PRNewswire/ -- Pan Pacific Bank (OTCBB:PPFC)
announced unaudited financial results for the quarter ended December 31,
2012. Total assets of $113.3 million, loans of $82.3 million, and deposits of
$98.3 million, at December 31, 2012. Chief Executive Officer Wayne Doiguchi
commented, "Pan Pacific Bank is pleased to report $330,468 in profits for the
fourth quarter of 2012, bringing our total 2012 year profits to $922,527.
This is four consecutive profitable quarters."

CEO Wayne Doiguchi added, "The bank has enjoyed significant improvement in its
overall asset quality and experienced only 10 basis points in Net Charge Offs
during the 2012 year. Our strong 2012 earnings were in part due to the sale
of $14.5 million in Government Guaranteed Loans at a premium. Had the bank
retained these loans, our year end loan balances would have been $96.8 million
or a 12.8% growth over year end 2011."

Net income for the twelve months ended December 31, 2012, was $922,527 or
$.203 per diluted share compared with a net loss of $(1,262,976), or $(.605)
per diluted share for the twelve months ended December 31, 2011. Net income
for the quarter ended December 31, 2012, was $330,468 or $.068 per diluted
share compared with a net loss of $(543,748), or $(.153) per diluted share,
for the quarter ended December 31, 2011. Net income improved in the twelve
months of 2012 primarily due to an increase in net interest income of
$895,337, an increase in non-interest income of $1,207,712 driven by a
$1,175,914 gain on sale of loans, offset by an increase in non-interest
expense of $621,661 and a decrease in the provision for loan loss of $709,117,
compared with the twelve months of 2011.

Total assets increased $1.0 million, or 0.9%, to $113.3 million at December
31, 2012 compared with $112.3 million at December 31, 2011. Net loans
decreased $3.5 million, or -4.2%, to $80.5 million at December 31, 2012,
compared with $84.1 million at December 31, 2011. Total deposits decreased
$1.5 million, or -1.5%, to $98.3 million at December 31, 2012, compared with
$99.9 million at December 31, 2011.

Stockholders' equity increased $2.3 million, or 19.1%, to $14.3 million at
December 31, 2012 compared with $12.0 million at December 31, 2011. This
increase was due primarily to the recent successful capital raise and rights
offering of $1.3 million and earnings for 2012 of $922,527. Tangible book
value remained at $2.92 for period ending December 31, 2012 and 2011.

Pan Pacific Bank

Pan Pacific Bank is focused on meeting the banking needs of business and
individuals in Alameda and Santa Clara counties, that are its primary service
areas. The Bank was founded July 2005 and is located at 47065 Warm Springs
Blvd, Fremont, California. The bank is an SBA / USDA lender and offers a
variety of banking products to include loans, deposits, remote capture, and
other cash management services. For information concerning this press release
please contact Wayne Doiguchi CEO or Dale McKinney CFO at 510 809 8888.
Our web address is www.panpacificbank.com.

Forward-Looking Statements

This release may contain forward-looking statements, such as, among others,
statements about plans, expectations and goals concerning growth and
improvement. Forward-looking statements are subject to risks and
uncertainties. Such risks and uncertainties may include, but are not
necessarily limited to fluctuations in interest rates, inflation, government
regulations and general economic conditions, including the real estate market
in our primary service area and more generally in California and other factors
beyond the Bank's control. Such risks and uncertainties could cause results
for subsequent interim periods or for the entire year to differ materially
from those indicated. Readers should not place undue reliance on the
forward-looking statements, which reflect management's view only as of the
date hereof. Pan Pacific Bank undertakes no obligation to publicly revise
these forward-looking statements to reflect subsequent events or
circumstances.

For information concerning this press release,
please contact Wayne Doiguchi CEO or
Dale McKinney CFO at 510 809 8888.



December 31 Financial Data
The following summary presents unaudited selected consolidated financial data
as of and for the12 months and 4th quarter ended December 31, 2012 and 2011
                      As of and For the Twelve        As of and For the Three
                      Months                          Months
                      Ended Dec. 31                   Ended Dec. 31
Income (Rounded to    2012            2011            2012          2011
thousand)
Interest income       $   5,237    $   4,435    $           $  
                                                      1,275        1,185
Interest expense      775             868             172           227
Net interest income   4,462           3,567           1,103         958
Provision for loan    128             837             -             383
losses
Net interest income
after provision for   4,334           2,730           1,103         575
loan losses
Noninterest income    1,376           168             498           38
Noninterest expense   4,781           4,160           1,265         1,157
Income (loss) before
income tax expense    929             (1,262)         336           (544)
(benefit)
Income tax expense    6               1               5             -
(benefit)
Net income (loss)     $     923   $  (1,263)    $         $   
                                                      330           (544)
Per Share Data:
Net Income (loss) per
common share:
 Basic            $   0.203    $  (0.607)    $           $ 
                                                      0.068        (0.153)
 Diluted          0.203           (0.605)         0.068         (0.153)
Shares Outstanding
 Basic            4,890,958       4,101,708       4,890,958     4,101,708
 Diluted          4,899,671       4,108,432       4,899,671     4,108,432
 Basic Weighted   4,548,975       2,080,545       4,890,958     3,553,989
Average
 Diluted Weighted 4,557,688       2,087,269       4,900,570     3,556,374
Average
Selected Balance
Sheet Data: (Rounded
to thousand)
Total assets          $ 113,339      $ 112,331
Investment securities 190             591
Gross loans (1)       82,272          85,776
Allowance for loan    (1,758)         (1,721)
losses
Net loans             80,514          84,055
Deposits              98,338          99,875
Total borrowings      -               -
Shareholders' equity  14,287          12,001
Performance Ratios:
Return on average     0.80%           -1.26%
assets
Return on average     6.96%           -13.78%
shareholders' equity
Net interest margin   3.97%           3.66%
Efficiency ratio (2)  81.89%          111.38%
Gross loans to        83.66%          85.88%
deposit
Asset Quality:
(Rounded to thousand)
Restructured loans    $   1,348    $     634
Nonperforming loans   1,796           1,945
Other real estate     -               -
owned
Total nonperforming   1,796           1,945
assets
Allowance for loan
losses:
 Percentage of    97.88%          88.48%
nonperforming loans
 Percentage of    2.14%           2.01%
gross loans
Net charge offs
(recoveries) to       0.10%           1.22%
average gross loans
Capital Ratios:
Bank:
 Total risk-based 17.69%          14.53%
capital ratio
 Tier 1
risk-based capital    16.43%          13.27%
ratio
 Leverage ratio   12.42%          10.84%
 Average equity   11.46%          9.17%
to average assets



(1) Gross loans include net deferred loan fees and costs of $(167) and $(203)
at December 31, 2012 and 2011, respectively.
(2) The efficiency ratio is calculated by dividing noninterest expense by the
sum of net interest income and noninterest income.

SOURCE Pan Pacific Bank

Website: http://www.panpacificbank.com