Pan Pacific Bank Announces Four Consecutive Profitable Quarters

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 the 12 months and 4th quarter ended December 31, 2012 and 2011 











As of and For the Twelve Months


As of and For the Three Months


Ended Dec. 31


Ended Dec. 31

Income (Rounded to thousand)

2012


2011


2012


2011

















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 losses

128


837


-


383

Net interest income after provision for loan losses

4,334


2,730


1,103


575

Noninterest income

1,376


168


498


38

Noninterest expense

4,781


4,160


1,265


1,157

Income (loss) before income tax expense (benefit)

929


(1,262)


336


(544)

Income tax expense (benefit)

6


1


5


-

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 Average

4,548,975


2,080,545


4,890,958


3,553,989

     Diluted Weighted Average

4,557,688


2,087,269


4,900,570


3,556,374









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 losses

(1,758)


(1,721)





Net loans

80,514


84,055













Deposits

98,338


99,875





Total borrowings

-


-





Shareholders' equity

14,287


12,001





Performance Ratios:








Return on average assets

0.80%


-1.26%





Return on average shareholders' equity

6.96%


-13.78%





Net interest margin

3.97%


3.66%





Efficiency ratio (2)

81.89%


111.38%





Gross loans to deposit

83.66%


85.88%













Asset Quality: (Rounded to thousand)








Restructured loans

$      1,348


$         634





Nonperforming loans

1,796


1,945





Other real estate owned

-


-





Total nonperforming assets

1,796


1,945





Allowance for loan losses: 








     Percentage of nonperforming loans

97.88%


88.48%





     Percentage of gross loans

2.14%


2.01%













Net charge offs (recoveries) to average gross loans

0.10%


1.22%





Capital Ratios: 








Bank: 








     Total risk-based capital ratio

17.69%


14.53%





     Tier 1 risk-based capital ratio

16.43%


13.27%





     Leverage ratio

12.42%


10.84%





     Average equity to average assets

11.46%


9.17%





 

(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



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http://www.panpacificbank.com

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