2014

Pan Pacific Bank Announces Six Consecutive Profitable Quarters

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  Months


As of and For the Three Months


Ended June 30,


Ended June 30,

Income (Rounded to thousand)

2013


2012


2013


2012

















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 losses

-


128


-


-

Net interest income after provision for loan losses

2,081


2,050


1,033


1,090

Noninterest income

148


751


74


42

Noninterest expense

2,096


2,377


1,064


1,057

Income (loss) before income tax expense (benefit)

133


424


43


75

Income tax expense (benefit)

6


1


4


-

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 Average

4,892,523


4,229,608


4,894,071


4,290,958

     Diluted Weighted Average

4,911,872


4,239,006


4,921,392


4,304,991










As of and For the Six  Months


As of and For the Three Months


Ended June 30,


Ended March 31,

Selected Balance Sheet Data: (Rounded to thousand)

2013


2012


2013











Total assets

$           106,298


$             117,203


$           104,520



Investment securities

2,424


282


146











Gross loans (1)

80,634


89,179


82,431



Allowance for loan losses

(1,536)


(1,797)


(1,743)



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 assets (3)

0.24%


0.73%





Return on average shareholders' equity (3)

1.78%


6.77%





Net interest margin (3)

4.17%


3.87%





Efficiency ratio (2)

94.03%


81.15%





Gross loans to deposit

88.10%


85.79%













Asset Quality: (Rounded to thousand)








Restructured loans

$                  686


$                 1,382





Nonperforming loans

1,219


1,855





Other real estate owned

-


-





Total nonperforming assets

1,219


1,855





Allowance for loan losses: 








     Percentage of nonperforming loans

126.00%


96.87%





     Percentage of gross loans

1.90%


2.02%













Net charge offs (recoveries) to average gross loans

0.27%


0.06%





Capital Ratios: 








Bank: 








     Total risk-based capital ratio

18.30%


14.91%





     Tier 1 risk-based capital ratio

17.05%


13.65%





     Leverage ratio

13.65%


10.87%





     Average equity to average assets

13.64%


10.83%





















(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



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