SAN FRANCISCO--(BUSINESS WIRE)--Presidio Bank (OTCBB: PDOB), a Bay Area business bank, today reported unaudited results for the first quarter ended March 31, 2014 with net income for the quarter of $693 thousand, a 58 % increase over the $439 thousand achieved in the first quarter of 2013. Loans, deposits and total assets all grew to record levels during the quarter.
“We are pleased that our growth momentum continued even in the traditionally soft first quarter,” said Presidio Bank President and CEO Steve Heitel. “While the Bank is still attracting new clients and gaining market share, it is pleasing to now see growth coming from our existing clients as well—another sign of improved economic conditions.”
- Total Loans outstanding grew by $17 million or 4% over the quarter ended December 31, 2013 and by $71 million or 22% over the quarter ended March 31, 2013.
- Total Deposits increased by $27 million or 7% from the quarter ended December 31, 2013 and by $90 million or 27% from the quarter ended March 31, 2013. A number of depositors were holding higher than usual balances at quarters end which somewhat exaggerates the deposit growth in the quarter. We expect these balance levels to normalize in the second quarter.
- Net interest income of $4.4 million in the first quarter was up 5% over the fourth quarter of 2013 despite two fewer days in the first quarter. Net interest income was up 18% over the same quarter last year.
- Operating Expenses increased 9% from the fourth quarter as the first quarter has seasonally high employer payroll taxes and employee benefit expense. In addition, the Bank started to incur expenses related to its previously announced new office in San Mateo, projected to open in the second half of the year.
- Net Income applicable to common shareholders was $604 thousand for the quarter, an increase of 104% over the first quarter of 2013. Net Income was down slightly from the December quarter, primarily due to the aforementioned expense and day-count impacts.
- Diluted earnings per common share were $0.14 for the quarter compared to $0.19 in the fourth quarter of 2013 and $0.07 in the first quarter of 2013. EPS in the fourth quarter of 2013 included $0.03 in non-recurrring gain on redemption of Perpetual Preferred Stock.
- Book value per share increased to $9.15 per share as of March 31, 2014 from $8.99 per share at December 31, 2013 and $8.50 per share at March 31, 2013.
“It’s great to be off to a strong start in 2014,” said Presidio Bank Chairman and Founder, Jim Woolwine. “I am honored that high quality clients are continuing to choose Presidio Bank as their financial partner.”
1st Quarter 2014 Financial Results
(Dollars in thousands, except per share amounts, unaudited)
|Condensed Balance Sheet|
|Cash and due from banks||5,103||5,694||-10.4%||3,769||35.4%|
|Interest bearing due from banks||66,188||49,545||33.6%||46,153||43.4%|
|Total cash and equivalents||71,291||55,239||29.1%||49,922||42.8%|
|Loans, net of fees||389,749||373,421||4.4%||318,766||22.3%|
|Allowance for loan losses||(4,871)||(4,867)||0.1%||(4,945)||-1.5%|
|Premises and equipment, net||1,033||932||10.8%||1,019||1.4%|
|Other assets and interest receivable||5,086||4,863||4.6%||5,101||-0.3%|
|Interest bearing transaction||62,994||71,760||-12.2%||58,479||7.7%|
|Money market and savings accounts||178,869||153,180||16.8%||119,996||49.1%|
|Other comprehensive income||(156)||(169)||7.7%||(38)|
|Total shareholder’s equity||45,027||44,284||1.7%||46,297||-2.7%|
|Total liabilities and equity||476,412||443,818||7.3%||383,241||24.3%|
|Book value per share|
|Book value per share||$||9.15||$||8.99||$||8.50|
|Total shares outstanding EOP||4,174||4,170||4,152|
|Tier 1 leverage ratio||10.0%||10.0%||11.5%|
|Tier 1 risk-based capital ratio||10.3%||10.5%||12.4%|
|Total risk-based capital ratio||11.6%||11.7%||13.7%|
|Tangible common risk-based ratio||8.7%||8.8%||9.7%|
Condensed Statement of Income
|For the three months ended|
|Net interest income||4,379||4,188||4.6%||3,705||18.2%|
|Provision for loan loss||-||-||NM||-||NM|
|Net interest income after provision||4,379||4,188||4.6%||3,705||18.2%|
|Compensation and benefit expenses||2,186||1,887||(15.8%)||1,873||(16.7%)|
|Occupancy and equipment expenses||373||382||2.4%||385||3.1%|
|Professional and legal||95||107||11.2%||132||28.0%|
|Other operating expenses||465||452||(2.9%)||456||(2.0%)|
|Total operating expenses||3,375||3,086||(9.4%)||3,090||(9.2%)|
|Net income before taxes||1,174||1,253||(6.3%)||744||57.8%|
|Net income to common||604||622||(2.9%)||297||103.6%|
|Earnings Per Share|
|Diluted earnings per share||$||0.14||$||0.19||$||0.07|
|Return on average assets||0.62%||0.66%||0.45%|
|Return on average common equity||6.42%||6.63%||3.40%|
|Net interest margin||4.00%||3.80%||3.88%|
|Cost of funds||0.19%||0.20%||0.23%|
NM = Not Meaningful
About Presidio Bank
Presidio Bank provides business banking services to small and mid-size businesses, including professional service firms, real estate developers and investors, and not-for-profit organizations, and to their owners who desire personalized, responsive service with access to local decision makers. Presidio Bank offers clients the resources of a large bank combined with the personalized services of a neighborhood bank. Presidio Bank is headquartered in San Francisco, California and currently operates four banking offices in San Francisco, Walnut Creek, San Rafael and Palo Alto. More information is available at www.presidiobank.com. Presidio Bank is a member of FDIC and an Equal Housing Lender.
This press release contains certain forward-looking statements that involve risk and uncertainties. These statements are identifiable by use of the words “believe,” “expect,” “intend,” “anticipate,” “plan,” “estimate,” “project,” or similar expressions. The risks and uncertainties that may affect the operations, performance, development, growth projections and results of Presidio Bank’s business include, but are not limited to, the growth of the economy, interest rate movements, timely development by Presidio Bank of technology enhancements for its products and operating systems, the impact of competitive products, services and pricing, client-based requirements, Congressional legislation, changes in regulatory or generally accepted accounting principles and similar matters. Readers are cautioned not to place undue reliance on forward-looking statements which are subject to influence by the named risk factors and unanticipated future events. Actual results, accordingly, may differ materially from management expectations.