Pan Pacific Bank Announces Seven Consecutive Profitable Quarters

       Pan Pacific Bank Announces Seven Consecutive Profitable Quarters

PR Newswire

FREMONT, Calif., Oct. 22, 2013

FREMONT, Calif., Oct. 22, 2013 /PRNewswire/ --Pan Pacific Bank (OTCBB:PPFC)
today announced its unaudited financial results for the quarter ended
September 30, 2013, including total assets of $107.2 million, loans of $77.2
million, and deposits of $92.4 million. Chief Executive Officer Wayne
Doiguchi commented, "Pan Pacific Bank is pleased to report net after-tax
earnings of $27 thousand and $154 thousand for the three and nine months ended
September 30, 2013, respectively.The results for the quarter ended September
30, 2013 marks seven consecutive profitable quarters."

CEO Doiguchi added, "The bank has enjoyed significant improvement in its
overall asset quality and experienced a 35% reduction in total non-performing
loans on a year over year basis. In addition, our charged off loans net of
recoveries is less than $18 thousand year to date or 0.02% of average loans."

Net after-tax income for the three months ended September 30, 2013 was $27
thousand or $.005 per diluted share compared with net after-tax income of $169
thousand, or $.035 per diluted share for the same period in 2012. The primary
reason for this $142 variance is a decrease in interest income of $164
thousand, a decrease of $49 thousand in non-interest income offset by a
decrease in non-interest expense of $71 thousand. Net after-tax income for the
nine months ended September 30, 2013, was $154 thousand or $.031 per diluted
share compared with net after-tax income of $592 thousand, or $.133 per
diluted share for the same period in 2012. For the nine 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 $727.5 thousand in 2012. Offsetting that lack of income in the
first nine months of 2013, overall expense was down by approximately $507
thousand compared to the same period in 2012. Included in the decrease was
$154 thousand in interest expense, $128 thousand in provision for loan loss,
and $225 thousand in employment expense related to incentives on loan sales.

Total assets decreased $6.9 million, or 6.1%, to $107.2 million at September
30, 2013 compared with $114.1 million at September 30, 2012. On a linked
quarter basis, total assets increased by $919 thousand or .86%. Gross loans
decreased $16.2 million, or 17.3%, to $77.2 million at September 30, 2013,
compared with $93.4 million at September 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
$7.2 million, or 7.3%, to $92.4 million at September 30, 2013, compared with
$99.6 million at September 30, 2012. On a linked quarter basis at September
30, 2013, total deposits increased by $890 thousand from June 30, 2013. In
addition, at September 30, 2013, total deposits increased $2.7 million from
March 31, 2013. 

Stockholders' equity increased $483 thousand, or 3.5%, to $14.4 million at
September 30, 2013 compared with $13.9 million at September 30, 2012. This
increase was due to earnings for the last three months of 2012 of $331
thousand, earnings for the first nine months of 2013 of $154 thousand, $61
thousand in stock option related items, less $63 thousand net change in other
comprehensive income. Tangible book value was $2.93 at September 30, 2013 and
$2.85 at September 30, 2012.

CEO Doiguchi also announced, "On September 1, 2013, Natalie Taaffe,
Relationship Manager/Construction Lending, joined the team and will be working
along side Relationship Manager Bill Walters in the Bank's market area of
Santa Clara and San Mateo counties." CEO Doiguchi went on to say "With a
strong balance sheet including ample capital, the Bank is poised for growth.
Both Mr. Walters and Ms. Taaffe are highly respected and well known in the
South Bay and we anticipate a robust response to their presence."

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.



September 30 Financial Data
The following summary presents unaudited selected consolidated financial
data as of and for the 9 months ended September 30, 2013 and 2012
and income for the 3rd quarter ending September 30, 2013 and 2012
                      As of and For the Nine        As of and For the Three
                      Months                        Months
                      Ended Sept 30,                Ended Sept 30,
Income (Rounded to    2013           2012           2013           2012
thousand)
Interest income       $        $        $        $     
                       3,548          3,962       1,160          1,368
Interest expense      449            603            142            186
Net interest income   3,099          3,359          1,018          1,182
Provision for loan    -              128            -              -
losses
Net interest income
after provision for   3,099          3,231          1,018          1,182
loan losses
Noninterest income    226            878            78             127
Noninterest expense   3,163          3,516          1,067          1,140
Income (loss) before
income tax expense    162            593            29             169
(benefit)
Income tax expense    8              1              2              -
(benefit)
Net income (loss)     $        $        $        $     
                        154          592        27          169
Per Share Data:
Net Income (loss) per
common share:
 Basic            $        $        $        $     
                       0.031          0.134       0.005          0.035
Diluted          0.031          0.133          0.005          0.035
Shares Outstanding
 Basic            4,924,834      4,890,958      4,924,834      4,890,958
 Diluted          4,947,509      4,899,371      4,960,315      4,897,402
 Basic Weighted   4,898,237      4,434,149      4,909,478      4,838,784
Average
 Diluted Weighted 4,920,912      4,442,562      4,944,959      4,845,228
Average
                      As of and For the Nine        As of and For the Six
                      Months                        Months
                      Ended Sept 30,                Ended June 30,
Selected Balance
Sheet Data: (Rounded  2013           2012           2013
to thousand)
Total assets          $         $        $     
                      107,217        114,124        106,298
Investment securities 12,673         234            2,424
Gross loans (1)       77,242         93,378         80,634
Allowance for loan    (1,741)        (1,801)        (1,536)
losses
Net loans             75,701         91,577         79,098
Deposits              92,411         99,632         91,521
Total borrowings      -              -
Shareholders' equity  14,428         13,945
Performance Ratios:
Return on average     0.19%          0.68%
assets (3)
Return on average
shareholders' equity  1.43%          6.10%
(3)
Net interest margin   4.10%          3.97%
(3)
Efficiency ratio (2)  95.13%         82.98%
Gross loans to        83.59%         93.72%
deposit
Asset Quality:
(Rounded to thousand)
Restructured loans    $        $      
                       1,205          1,365
Nonperforming loans   1,205          1,842
Other real estate     -              -
owned
Total nonperforming   1,205          1,842
assets
Allowance for loan
losses:
 Percentage of    144.48%        97.77%
nonperforming loans
 Percentage of    2.25%          1.93%
gross loans
Net charge offs
(recoveries) to       0.02%          0.05%
average gross loans
Capital Ratios:
Bank:
 Total risk-based 18.49%         15.68%
capital ratio
 Tier 1
risk-based capital    17.23%         14.43%
ratio
 Leverage ratio   13.57%         11.96%
 Average equity   13.58%         11.17%
to average assets
(1) Gross loans include net deferred loan fees and costs of $(91) and $(203)
at September 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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