Pan Pacific Bank Announces Six Consecutive Profitable Quarters PR Newswire FREMONT, Calif., Aug. 14, 2013 FREMONT, Calif., Aug. 14, 2013 /PRNewswire/ --Pan Pacific Bank (OTCBB:PPFC) today announced its unaudited financial results for the quarter ended June 30, 2013, including total assets of $106.3 million, loans of $80.6 million, and deposits of $91.5 million. Chief Executive Officer Wayne Doiguchi commented, "Pan Pacific Bank is pleased to report net after-tax earnings of $39 thousand and $127 thousand for the three and six months ended June 30, 2013, respectively.The results for the quarter ended June 30, 2013 marks six consecutive profitable quarters." CEO Wayne Doiguchi added, "The bank has enjoyed significant improvement in its overall asset quality and experienced a 34% reduction in total non-performing loans on a year over year basis." Net after-tax income for the three months ended June 30, 2013, was $39 thousand or $.008 per diluted share compared with net after-tax income of $75 thousand, or $.017 per diluted share for the same period in 2012. The primary reason for this $36 variance is a decrease in interest income of $57 thousand offset by increases in non-interest income. Net after-tax income for the six months ended June 30, 2013, was $127 thousand or $.026 per diluted share compared with net after-tax income of $423 thousand, or $.10 per diluted share for the same period in 2012. For the six month period, the primary reason for the decrease in net after-tax income on a year over year basis was the absence in 2013 of any gain on sale of loans which amounted to approximately $659 thousand in 2012. Offsetting that lack of income in the first six months of 2013, overall expense was down by approximately $519 thousand compared to the same period in 2012. Included in the decrease was $110 thousand in interest expense, $128 thousand in provision for loan loss, and $190 thousand in employment expense related to incentives on loan sales. Total assets decreased $10.9 million, or 9.3%, to $106.3 million at June 30, 2013 compared with $117.2 million at June 30, 2012. On a linked quarter basis, total assets increased by $1.8 million or 1.7%. Gross loans decreased $8.5 million, or 9.6%, to $80.6 million at June 30, 2013, compared with $89.2 million at June 30, 2012. The decrease was due to normal principal reductions, borrowers reducing debt as the result of property sales and other injections of cash flow and to a lesser extent, reduced relationship balances caused by rate sensitivity. Total deposits decreased $12.4 million, or 12.0%, to $91.5 million at June 30, 2013, compared with $103.9 million at June 30, 2012. On a linked quarter basis, total deposits increased by $1.8 million and have stabilized during the first six months of 2013. On a linked quarter basis, demand deposits increased $2.6 million while interest bearing deposits decreased by $803 thousand. The Bank has experienced some disintermediation of interest bearing deposits due to the renewed confidence in outside investment opportunities. Stockholders' equity increased $1.6 million, or 12.9%, to $14.4 million at June 30, 2013 compared with $12.8 million at June 30, 2012. This increase was due to the additional capital raise (rights offering) in July 2012 of $1.0 million, earnings for the last six months of 2012 of $500 thousand and the $127 thousand in earnings for the first six months of 2013. Tangible book value was $2.94 at June 30, 2013 and $2.97 at June 30, 2012. 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 Margaret A. Torres, 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 Margaret A. Torres, CFO at 510-809-8888. June 30 Financial Data The following summary presents unaudited selected consolidated financial data as of and for the 6 months ended June 30, 2013 and 2012 and income for the 2nd quarter ending June 30, 2013 and 2012 As of and For the Six As of and For the Three Months Months Ended June 30, Ended June 30, Income (Rounded to 2013 2012 2013 2012 thousand) Interest income $ $ $ $ 2,387 2,594 1,183 1,297 Interest expense 306 416 150 207 Net interest income 2,081 2,178 1,033 1,090 Provision for loan - 128 - - losses Net interest income after provision for 2,081 2,050 1,033 1,090 loan losses Noninterest income 148 751 74 42 Noninterest expense 2,096 2,377 1,064 1,057 Income (loss) before income tax expense 133 424 43 75 (benefit) Income tax expense 6 1 4 - (benefit) Net income (loss) $ $ $ $ 127 423 39 75 Per Share Data: Net Income (loss) per common share: Basic $ $ $ $ 0.026 0.100 0.008 0.017 Diluted 0.026 0.100 0.008 0.017 Shares Outstanding Basic 4,902,760 4,290,958 4,902,760 4,290,958 Diluted 4,922,109 4,300,356 4,930,081 4,304,991 Basic Weighted 4,892,523 4,229,608 4,894,071 4,290,958 Average Diluted 4,911,872 4,239,006 4,921,392 4,304,991 Weighted Average As of and For the Six As of and For the Three Months Months Ended June 30, Ended March 31, Selected Balance Sheet Data: (Rounded 2013 2012 2013 to thousand) Total assets $ $ $ 106,298 117,203 104,520 Investment 2,424 282 146 securities Gross loans (1) 80,634 89,179 82,431 Allowance for loan (1,536) (1,797) (1,743) losses Net loans 79,098 87,382 80,688 Deposits 91,521 103,947 89,708 Total borrowings - - Shareholders' equity 14,404 12,759 Performance Ratios: Return on average 0.24% 0.73% assets (3) Return on average shareholders' equity 1.78% 6.77% (3) Net interest margin 4.17% 3.87% (3) Efficiency ratio (2) 94.03% 81.15% Gross loans to 88.10% 85.79% deposit Asset Quality: (Rounded to thousand) Restructured loans $ $ 686 1,382 Nonperforming loans 1,219 1,855 Other real estate - - owned Total nonperforming 1,219 1,855 assets Allowance for loan losses: Percentage of 126.00% 96.87% nonperforming loans Percentage of 1.90% 2.02% gross loans Net charge offs (recoveries) to 0.27% 0.06% average gross loans Capital Ratios: Bank: Total risk-based capital 18.30% 14.91% ratio Tier 1 risk-based capital 17.05% 13.65% ratio Leverage ratio 13.65% 10.87% Average equity 13.64% 10.83% to average assets (1) Gross loans include net deferred loan fees and costs of $(99) and $(196) at June 30, 2013 and 2012, respectively. (2) The efficiency ratio is noninterest expense divided by the sum of net interest income and noninterest income. (3) Annualized SOURCE Pan Pacific Bank Website: http://www.panpacificbank.com
Pan Pacific Bank Announces Six Consecutive Profitable Quarters
Press spacebar to pause and continue. Press esc to stop.