Pan Pacific Bank Announces Six Consecutive Profitable Quarters

        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
 
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