Pan Pacific Bank Announces Five Consecutive Profitable Quarters

FREMONT, Calif., May 23, 2013 /PRNewswire/ -- Pan Pacific Bank (OTCBB:PPFC) today announced its unaudited financial results at and for the quarter ended March 31, 2013, including Net income for the quarter of $88,392, total assets of $104.5 million, loans of $82.4 million, and deposits of $89.7 million.  Chief Executive Officer Wayne Doiguchi commented, "Pan Pacific Bank is pleased to report another profitable quarter for the first quarter of 2013.  This marks five consecutive profitable quarters."

CEO Wayne Doiguchi added, "The bank has enjoyed significant improvement in its overall asset quality and experienced only 2 basis points in Net Charge Offs during the first quarter of 2013."

Net income for the three months ended March 31, 2013, was $88,392 or $.018 per diluted share compared with net income of $348,312, or $.084 per diluted share for the three months ended March 31, 2012. The primary reason for the decrease in net income on a year over year basis was the absence in 2013 of any gain on sale of loans which amounted to $658,578 in 2012. Offsetting that lack of income in the first quarter of 2013, overall expense was down by approximately $415,000 compared to the same period in 2012. Included in the decrease was $53,566 in interest expense, $127,550 in provision for loan loss, $34,470 in regulatory expense and $264,052 in salary and related nearly all of which is associated with the sale of loans.

Total assets decreased $11.0 million, or 9.5%, to $104.5 million at March 31, 2013 compared with $115.5 million at March 31, 2012.  Net loans decreased $5.8 million, or 6.7%, to $80.7 million at March 31, 2013, compared with $86.5 million at March 31, 2012.  The decrease was due to normal principal reductions, and reduced relationship balances caused by rate sensitivity. Total deposits decreased $12.6 million, or 12.3%, to $89.7 million at March 31, 2013, compared with $102.3 million at March 31, 2012.  Money Market and time deposit accounts decreased by approximately $6.3 million and $3.7 million, respectively, from March 31, 2012 compared to the same period in 2013. The Bank has experienced some disintermediation of interest bearing deposits due to the renewed confidence in outside investment opportunities.

Stockholders' equity increased $1.7 million, or 13.4%, to $14.4 million at March 31, 2013 compared with $12.7 million at Mach 31, 2012.  This increase was due primarily to the additional capital raise (rights offering) of $1.0 million and earnings for 2012 of $922,527.  Tangible book value was $2.94 at March 31, 2013 and $2.95 at March 31, 2012.

CEO Wayne Doiguchi also announced the retirement of CFO Dale McKinney. "The Board and I thank Mr. McKinney for his contributions to the Bank."  Mr. Doiguchi added "I am happy to announce that Margaret Torres has joined the Bank as Executive Vice President and Chief Financial Officer.  Margaret has had a distinguished banking career, most notably with Heritage Oaks Bank where she was part of the management team that took the bank from approximately $135 million to $1billion in asset size.  That expertise is very important in Pan Pacific Bank's strategic growth plan."

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.

SOURCE Pan Pacific Bank