Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,591.89 75.62 0.52%
TOPIX 1,178.34 4.97 0.42%
HANG SENG 22,760.24 64.23 0.28%

Premier Service Bank Announces Financial Results for the First Quarter of 2013



  Premier Service Bank Announces Financial Results for the First Quarter of
  2013

Business Wire

RIVERSIDE, Calif. -- April 18, 2013

Premier Service Bank, Riverside, California (OTCBB:PSBK), today announced its
unaudited financial results for the first quarter of 2013.

For the quarter ended March 31, 2013, the bank reported net income of $347
thousand, or $0.27 per diluted share, compared to net loss of $190 thousand,
or <$0.16> per diluted share for the quarter ended March 31, 2012. The
improvement in earnings between the respective periods is attributed to the
decrease in the provision for loan losses and the non-recurring noninterest
income that was received during the first quarter of 2013. There was no
additional provision to the allowance for loan losses required for the first
quarter of 2013, compared to $225 thousand for the same period in 2012.

At March 31, 2013, the Bank had $3.4 million of non-performing loans,
representing 4.58% of the Bank’s total loans, compared to $5.5 million of
non-performing loans, or 5.53% of total loans, at March 31, 2012. The Bank had
foreclosed real estate of $1.2 million at March 31, 2013, compared to
foreclosed real estate of $3.0 million at March 31, 2012. At March 31, 2013,
non-accrual loans totaled $3.4 million, representing 4.58% of total loans at
that date, compared to non-accrual loans of $5.5 million at March 31, 2012,
representing 5.53% of total loans at that date. The allowance for loan losses
totaled $2.5 million at March 31, 2013, or 3.38% of total loans as of that
date, compared to $2.75 million at March 31, 2012, or 2.77% of total loans as
of that date.

At March 31, 2013, the Bank had total assets of $131 million, representing a
decrease of $7.6 million or 5.48% compared to total assets of $139 million at
March 31, 2012. The Bank had $11 million in FHLB borrowings at March 31, 2013,
representing a decrease of $5 million or 31.25% from the FHLB borrowings of
$16 million at March 31, 2012. Total deposits at March 31, 2013 were $108.3
million, representing a decrease of 3.02% compared to total deposits of $111.7
million at March 31, 2012. Non-interest bearing demand deposits totaled $40.3
million at March 31, 2013, representing 37.18% of total deposits at that date,
compared to $44.2 million of non-interest bearing demand deposits at March 31,
2012, which represented 39.62% of total deposits at that date.

The Bank’s gross loan portfolio decreased to $73.9 million at March 31, 2013,
representing a 25.34% decrease compared to gross loans of $99 million at March
31, 2012. Unfunded credit commitments stood at $7 million at March 31, 2013,
representing a 6.67% decrease compared to unfunded commitments of $7.5 million
at March 31, 2012.

The Bank’s net interest margin for the quarter ended March 31, 2013 was 4.13%,
a decrease of 81 basis points as compared to the net interest margin of 4.94%
for the first quarter of 2012.

Total shareholders’ equity at March 31, 2013 was $11.1 million, representing
an increase of $650 thousand, or 6.2% compared to total shareholders’ equity
of $10.5 million at March 31, 2012. On December 1, 2010, the Bank entered into
a Consent Order with the Federal Deposit Insurance Corporation and the
California Department of Financial Institutions. The Consent Order requires
the Bank, within 90 days from the effective date of the Order (by February 28,
2011), to increase and thereafter maintain its Tier I capital in such an
amount to ensure that the Bank’s leverage ratio equals or exceeds 9.50% and
its total risk-based capital ratio equals or exceeds 12%. As of March 31,
2013, these capital ratios were 8.4% and 15.35%, respectively. As a result,
the Bank was not in compliance, as of March 31, 2013, with the leverage
capital ratio, but was in compliance with the total risk based capital ratio
requirement as of that date. Although not in full compliance with the capital
ratios required by the Consent Order as of March 31, 2013, the Bank was
adequately capitalized as of that date under applicable regulatory guidelines.

The Bank attempted to comply with the capital requirements of the Order during
2011 with a capital offering that was not successful. During 2012, the Bank
directed its efforts to a merger transaction to satisfy its capital
requirements. On February 27, 2012, the Bank entered into an Agreement and
Plan of Merger (the “Merger Agreement”) with First California Bank, a state
chartered commercial bank (“FCB”), and its holding company, First California
Financial Group, Inc. (“FCAL”) (Nasdaq: FCAL), pursuant to which the Bank was
to merge into FCB (the “Merger”). On January 30, 2013, FCB, FCAL and the Bank
issued a joint press release announcing that they jointly agreed to terminate
the Merger Agreement and the proposed Merger, effective January 30, 2013.

Now that it has been determined that the Merger is not going forward, in order
to comply with the capital requirements of the Consent Order, the Bank will
need to complete a new capital offering or find another solution which
improves its capital ratios, such as finding a new merger partner, arranging
for the possible sale of the Bank or a transfer of control of the Bank, or
taking steps to decrease the asset size of the Bank until the ratios are in
compliance with the Consent Order. The Bank presently intends to commence a
common stock offering, subject to regulatory approval, by the end of the
second quarter of 2013 to effect compliance with the capital ratios. The Bank
believes that its improved condition over the last two quarters of 2012 and
the first quarter of 2013, compared to 2011, will allow the Bank to raise
sufficient capital to resolve the requirements of the Consent Order.

The Bank’s President and Chief Executive Officer, Kerry L. Pendergast, stated,
“The positive trends exhibited and commented on in the fourth quarter of 2012
extended into the first quarter of 2013. For the first quarter of 2013, there
was no provision expense to the Bank’s allowance for loan losses, as compared
to the $225 thousand provision expense required for the same period in 2012;
this represented the fourth quarter in a row where there was no required
provision expense. Notwithstanding the significant reduction in the provision
expense, when compared to the quarter ended March 31, 2012, the Bank’s
allowance for loan losses totaled $2.5 million at March 31, 2013 or 3.38% of
total loans as of that date, compared to $2.75 million at March 31, 2012 or
2.77% of total loans as of that date.”

Pendergast went on to say, “We have continued to make meaningful progress in
disposing of real estate acquired through foreclosure; we closed the quarter
ended March 31, 2013 with $1.2 million of OREO, as compared to $2.6 million at
the quarter and year-ended December 31, 2012. We are continuing to make
incremental progress on reducing the level of non-performing loans, reporting
non-performing loans of $3.4 million or 4.58% of total loans at March 31,
2013, as compared to non-performing loans of $5.5 million or 5.53% of total
loans at March 31, 2012. We believe that our strategy of working with our
borrowers through what has admittedly been a very difficult period in our
national, state and regional economies has been the right thing to do. The
outlook for an improving regional economy has signaled improving trends for
our individual business owners and has served to further strengthen our
customer relationships.”

Pendergast said in closing, “We continue to see improvement in the local
economy, with the improving business outlook and climate having a direct
impact on our business clients and ultimately on the Bank’s overall
performance. Working to ensure that the Bank continues to build on the
quarter-over-quarter progress that has been reported is our number one
objective moving into the second quarter of 2013.”

Premier Service Bank is a California state-chartered bank with two offices,
its headquarters office in Riverside and a full-service banking office in
Corona. The Bank provides commercial banking services, including a wide
variety of checking accounts, investment services with competitive deposit
rates, on-line banking products, and real estate, construction, commercial and
consumer loans, to small and medium-sized businesses, professionals and
individuals. Additional information about Premier Service Bank is available at
its website at www.premierservicebank.com.

Forward-looking Statements

This news release contains statements that are forward-looking statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are based on current expectations, estimates and projections
about Premier Service Bank’s business based, in part, on assumptions made by
management. These statements are not guarantees of future performance and
involve risks, uncertainties and assumptions that are difficult to predict.
Therefore, actual outcomes and results may differ materially from what is
expressed or forecasted in such forward-looking statements due to numerous
factors, including those described above and in the following: Premier Service
Bank’s ability to increase its assets, deposits and total loans, control
expenses, retain critical personnel, manage interest rate risk, manage
technological changes, address regulatory requirements, and other risks
discussed from time to time in Premier Service Bank’s filings and reports with
the Federal Deposit Insurance Corporation. In addition, such statements could
be affected by general industry and market conditions and growth rates, and
general domestic and international economic conditions. Such forward-looking
statements speak only as of the date on which they are made, and Premier
Service Bank does not undertake any obligation to update any forward-looking
statement to reflect events or circumstances after the date of this release.

See the unaudited Financial Data:

Financial Data - Premier Service Bank
(Unaudited)
                       Quarter Ended
(In Thousands)         Mar. 31,      Dec. 31,      Sept 30,      June 30,      Mar. 31,
                       2013          2012          2012          2012          2012
                                                                                
Interest income(not    $ 1,347       $ 1,531       $ 1,622       $ 1,675       $ 1,768
taxable equivalent)
Interest expense         126           142           185           197           208      
Net interest income      1,221         1,389         1,437         1,478         1,560
Provision for loan       -             -             -             -             225      
losses
Net interest income
after provision for      1,221         1,389         1,437         1,478         1,335
loan losses
Non-interest income      442           178           163           154           174
Non-interest expense     1,316         1,220         1,439         1,797         1,699    
Income before income     347           347           161           (165    )     (190    )
taxes
(Benefit)/Provision      -             -             -             1             -        
for income taxes
Net income             $ 347         $ 347         $ 161         $ (166    )   $ (190    )
                                                                                
                       Quarter Ended
(In Thousands)         Mar. 31,      Dec. 31,      Sept 30,      June 30,      Mar. 31,
                       2013          2012          2012          2012          2012
Per share:
Net income - basic     $ 0.27        $ 0.27        $ 0.12        $ (0.14   )   $ (0.16   )
Weighted average         1,261         1,261         1,261         1,261         1,261
shares used in basic
Net income - diluted   $ 0.27        $ 0.27        $ 0.12        $ (0.14   )   $ (0.16   )
Weighted average
shares used in           1,261         1,261         1,261         1,261         1,261
diluted
Book value at period   $ 5.53        $ 5.27        $ 5.01        $ 4.90        $ 5.05
end
Ending shares            1,261         1,261         1,261         1,261         1,261
                                                                                
                                                                                
Balance Sheet - At
Period-End
Cash and due from      $ 47,568      $ 40,023      $ 37,414      $ 28,600      $ 25,021
banks
Investments and Fed      5,884         4,046         6,727         6,935         9,272
fund sold
Gross Loans              73,940        82,945        89,669        96,082        99,041
Deferred fees            (122    )     (134    )     (144    )     (181    )     (195    )
Allowance for loan       (2,502  )     (2,733  )     (2,891  )     (2,907  )     (2,748  )
losses
Net Loans                71,316        80,078        86,634        92,994        96,098
Other assets             6,603         7,874         7,627         8,640         8,592    
Total Assets           $ 131,371     $ 132,021     $ 138,402     $ 137,169     $ 138,983  
                                                                                
Non-interest-bearing   $ 40,260      $ 38,702      $ 44,711      $ 42,382      $ 44,245
deposits
Interest-bearing         68,038        70,576        71,214        67,589        67,420
deposits
Other liabilities        11,932        11,943        12,013        16,890        16,827
Shareholders' equity     11,141        10,800        10,464        10,308        10,491   
                                                                                
Total Liabilities
and Shareholders'      $ 131,371     $ 132,021     $ 138,402     $ 137,169     $ 138,983  
equity
                                                                                
Asset Quality &
Capital - At
Period-End
Non-accrual loans      $ 3,386       $ 3,485       $ 5,314       $ 5,472       $ 5,476
Loans past due 90        -             -             -             -             -
days or more
Other real estate        1,233         2,595         2,223         3,189         2,974
owned
Other bank owned         -             -             -             -             -        
assets
Total non-performing   $ 4,619       $ 6,080       $ 7,537       $ 8,661       $ 8,450    
assets
                                                                                
Allowance for losses     3.38    %     3.29    %     3.22    %     3.03    %     2.77    %
to loans, gross
Non-accrual loans to     4.58    %     4.20    %     5.93    %     5.70    %     5.53    %
total loans, gross
Non-performing loans
to total loans,          4.58    %     4.20    %     5.93    %     5.70    %     5.53    %
gross
Non-performing asset     3.52    %     4.61    %     5.45    %     6.31    %     6.08    %
to total assets
Allowance for losses
to non-performing        73.89   %     78.42   %     54.40   %     53.13   %     50.18   %
loans
                                                                                
Total risk-based         15.35   %     13.42   %     12.15   %     11.27   %     11.09   %
capital ratio
Tier 1 risk-based        14.08   %     12.15   %     10.88   %     10.00   %     9.82    %
capital ratio
Tier 1 leverage          8.40    %     7.69    %     7.48    %     7.39    %     7.42    %
ratio

Contact:

Premier Service Bank
Kerry L. Pendergast, President and CEO
Jessica Lee, Executive Vice President and CFO
951-274-2400
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement