Pacific City Financial Corporation Reports 2014 First Quarter Financial Results

LOS ANGELES--()--Pacific City Financial Corporation (the “Company”) (OTCBB:PFCF), the holding company of Pacific City Bank, today reported net income available to common shareholders of $2.3 million, or $0.28 per diluted common share, for the first quarter 2014. This compares with net income available to common shareholders of $3.0 million, or $0.36 per diluted common share, for the fourth quarter of 2013, and net income available to common shareholders of $2.9 million, or $0.35 per diluted common share, for the first quarter of 2013. Net income available to common shareholders for the first quarter of 2014 decreased mainly due to the decrease of $926,000 in gain on sale of loans resulted from less sale of loans compared with the fourth quarter of 2014 and decreased mainly due to the increase of $1.6 million in income tax provision compared with the first quarter of 2013.

“We are very pleased to report another strong quarterly performance. We continue to experience a nice loan growth and healthy net interest margin,” said Haeyoung Cho, President and CEO. “Improvements in our credit quality provided us with two consecutive quarters of negative loan loss provision. Our core earnings remain robust and we clearly see more business opportunities in our marketplace.”

                         
2014 First Quarter Financial Highlights

(Dollars in thousands, except per share data)

 
As of or For the Three Months Ended
March 31,

2014

December 31,

2013

%

Change

March 31,

2013

%

Change

Net Income $ 2,485 $ 3,024 -17.8 % $ 3,212 -22.6 %
Net income available to common shareholders $ 2,329 $ 3,048 -23.6 % $ 2,905 -19.8 %
Earnings per common share (basic) $ 0.28 $ 0.36 -23.6 % $ 0.35 -19.8 %
 
Net interest income $ 7,292 $ 7,377 -1.2 % $ 6,101 19.5 %
(Reversal) Provision for loan loss $ (386 ) $ (693 ) -44.3 % $ 572 -167.4 %
Non-interest income $ 2,190 $ 3,320 -34.0 % $ 2,585 -15.3 %
Non-interest expense $ 5,758 $ 5,880 -2.1 % $ 4,902 17.4 %
 
Total assets $ 762,454 $ 755,910 0.9 % $ 652,511 16.8 %
Loans receivable, net $ 619,875 $ 593,871 4.4 % $ 518,702 19.5 %
Total deposits $ 678,377 $ 674,038 0.6 % $ 577,275 17.5 %
ALLL to gross loans ratio 1.88 % 2.08 % -9.6 % 2.87 % -34.5 %
 
Non-performing loans $ 7,856 $ 8,858 -11.3 % $ 7,239 8.5 %
Return on average assets 1.34 % 1.63 % -17.8 % 2.07 % -35.4 %
Return on average stockholder' equity 12.91 % 15.09 % -14.5 % 19.35 % -33.3 %
Net interest margin 4.04 % 4.10 % -1.5 % 4.00 % 1.0 %
Efficiency ratio 60.72 % 54.96 % 10.5 % 56.44 % 7.6 %
Tangible common equity to tangible assets 9.28 % 9.02 % 2.9 %

*

7.89 % * 17.7 %
Tangible common equity per common share $ 8.45 $ 8.14 3.8 % * $ 6.15 * 37.5 %
 
Tier 1 leverage ratio (Company) 10.55 % 10.39 % 1.5 % 10.83 % -2.6 %
 
* retroactively reflected the 1 for 3 reverse stock split effective on 2/28/2014
 

2014 FIRST QUARTER RESULTS OF OPERATION

Net Interest Income and Net Interest Margin

The following table summarizes the interest income before provision for loan losses and net interest margin.

                 

As of or For the Three Months Ended (Dollars in thousands)

March 31,

2014

      December 31,

2013

      %

Change

March 31,

2013

%

Change

Net Interest Income $ 7,292 $ 7,377 -1.2 % $ 6,101 19.5 %
Net interest margin 4.04 % 4.10 % -1.5 % 4.00 % 1.0 %
 

Net interest income before provision for loan losses decreased $85,000, or 1.2%, to $7.3 million for the first quarter of 2014 compared with $7.4 million for the fourth quarter of 2013, and increased $1.2 million, or 19.5%, compared with $6.1 million for the first quarter of 2013. The decrease compared with the fourth quarter of 2013 was primarily due to two less interest accruing calendar days in the first quarter of 2014, partially offset by an increase of $79,000 in prepayment penalty fees. The $1.2 million increase compared with the first quarter of 2013 was mainly due to the increase of $108.1 million in average balance of interest earning assets to $725.8 million from $617.8 million.

Total interest expense on deposit increased $12,000, or 1.7%, to $1.2 million for the first quarter of 2014 compared with the fourth quarter of 2013. The slight increase in interest expense despite an average interest bearing deposit volume increase of $26.3 million was mainly due to a decrease of deposit costs on interest bearing deposit accounts. Compared with $1.1 million for the first quarter of 2013, total interest expense on deposit increased $134,000, or 12.7%, for the first quarter of 2014. The increase was mainly due to the increase of $91.1 million in average balance of interest bearing deposits.

The net interest margin for the first quarter of 2014 decreased 6 basis points to 4.04% compared with 4.10% for the fourth quarter of 2013 mainly due to the increase of cash balance in Federal Reserve Bank which has relatively low yielding interest income, and increased 4 basis points compared with 4.00% for the first quarter of 2013 primarily due to the decrease in deposit cost on interest bearing deposit accounts.

Noninterest Income

Noninterest income for the first quarter of 2014 decreased $1.1 million, or 34.0%, to $2.2 million compared with $3.3 million in the fourth quarter of 2013, and decreased $395,000, or 15.3%, compared with $2.6 million in the first quarter of 2013. The decrease compared to the fourth quarter of 2013 was primarily due to a decrease of $677,000 in gain on sale of mortgage loans to $45,000 from $721,000, a decrease of $249,000 in gain on sale of SBA loans to $1.2 million from $1.5 million, and a decrease of $197,000 in gain on sale of commercial loans to zero from $197,000. During the first quarter of 2014, the Company sold $15.1 million and $3.2 million of SBA loans and mortgage loans, respectively, compared with $21.2 million and $33.4 million of SBA loans and mortgage loans, respectively, during the fourth quarter of 2013.

Compared with the first quarter of 2013, noninterest income decreased mainly due to the decrease of $262,000 in gain on sale of mortgage loans to $45,000 from $306,000 and a decrease of $203,000 in miscellaneous income to $144,000 from $348,000. During the first quarter of 2013, $36.7 million of mortgage loans and $13.6 million of SBA loans were sold.

Noninterest Expense

Noninterest expense for the first quarter of 2014 decreased $122,000 to $5.8 million compared with $5.9 million in the fourth quarter 2013, and increased $856,000 compared with $4.9 million in the first quarter of 2013. The decrease compared with the fourth quarter of 2013 was mainly due to a decrease of $190,000 in loan related expenses to $163,000 from $354,000 and a decrease of $165,000 in other operating expenses to $801,000 from $998,000, partially offset by an increase of $252,000 in employee salary and benefit to $3.6 million from $3.4 million.

Compared with the first quarter of 2013, noninterest expenses for the first quarter of 2014 increased primarily due to an increase of $618,000 in employee salary and benefit expenses to $3.6 million from $3.0 million, an increase of $142,000 in other noninterest expenses to $801,000 from $659,000, an increase of $130,000 in occupancies and fixed assets expenses to $754,000 from $624,000, and $117,000 in legal and professional expenses to $331,000 from $213,000, partially offset by a decrease of $136,000 in FDIC assessment to $91,000 from $227,000. The FDIC assessment rate had been reduced due to the improvements of contributable financial ratios. Of the $618,000 in employee salary and benefit expenses increases, $329,000 was due to an increase in headcount, $86,000 was due to an increase in employee group insurance premium, and $76,000 was due to an increase in employer payroll taxes.

Income Tax Provision

The effective tax rate for the first quarter of 2014 was 39.6%, or $1.6 million, compared with 45.1%, or $2.5 million, for the fourth quarter of 2013. The effective tax rate for the fourth quarter of 2013 was higher than the first quarter of 2014 primarily due to the true-up of various factors that determined the tax benefit for the first three quarters in 2013. For the first quarter of 2013, the Company did not recognize any tax expenses in anticipation of future tax benefit resulting from the reversal of $11.3 million in valuation allowance provided against the deferred tax assets.

BALANCE SHEET SUMMARY

Total assets at March 31, 2014 increased $6.5 million, or 0.9%, to $762.5 million compared with $755.9 million at December 31, 2013, and increased $109.9 million, or 16.8%, compared with $652.5 million at March 31, 2013. The increase compared with the previous fourth quarter of 2013 was mainly due to the increase of $26.0 million in net loan receivables and an increase of $1.1 million in investment securities, partially offset by the decrease of $20.1 million in cash and due from banks. Compared with the first quarter of 2013, the increase was primarily due to the increase of $101.2 million in net loan receivables, an increase of $10.1 million in investment securities, an increase of $8.0 million in deferred tax assets due to a reversal of valuation allowance against deferred tax assets during the third quarter of 2013, an increase of $1.5 million in service assets, and an increase of $1.1 million in OREO, partially offset by a decrease of $13.9 million in cash and due from banks.

Total new loan originations during the first quarter of 2014 amounted to $78.2 million. Of the $78.2 million, home mortgage loan origination was $24.1 million and SBA loan origination was $21.1 million. Total new loan originations during the fourth quarter of 2013 amounted $113.3 million. Of the $113.3 million, home mortgage loan origination was $35.0 million and SBA loan origination was $30.3 million.

During the first quarter of 2014, the Company sold $15.1 million of SBA and $3.2 million of home mortgage loans with a gain on sale of $1.2 million and $45,000, respectively. During the same quarter, we recognized $33.7 million in paid-downs and paid-offs and charged-off $545,000. This compares with the sale of $21.2 million of SBA and $33.4 million of mortgage loans with a gain on sale of $1.5 million and $721,000, respectively, during the fourth quarter of 2013. During the same quarter, we recognized $46.4 million of paid-downs and paid-offs and $1.6 million in charge-offs.

The following table lists gross loan balance excluding unearned loan fees and allowance for loan losses by loan type:

                             

Loan categories (Dollars in thousands)

 
March 31,

2014

December 31,

2013

%

Change

March 31,

2013

%

Change

Construction $ 2,128 $ 2,101 1.3 % $ 2,532 -15.9 %
Real Estate Loans 407,911 397,566 2.6 % 341,530 19.4 %
Home Mortgage Loans 100,807 84,044 19.9 % 63,446 58.9 %
Commercial Industrial Loans 86,113 88,824 -3.1 % 92,112 -6.5 %
Consumer Loans   30,196   30,244 -0.2 %   29,985 0.7 %
627,155 602,779 4.0 % 529,605 18.4 %
Held for sale loans   4,315   3,356 28.6 %   3,598 19.9 %

$

631,470

$

606,135

4.2 %

$

533,203

18.4 %
 

Total deposit balance at March 31, 2014 increased $4.3 million to $678.4 million compared with $674.0 million at December 31, 2013 and increased $101.1 million compared with $577.3 million at March 31, 2013. Demand deposits to total deposits ratio was 24.9% at March 31, 2014, 24.2% at December 31, 2013, and 25.7% at March 31, 2013. The Company's net loan-to-deposit ratios were 91.4%, 88.1%, and 89.9% at March 31, 2014, December 31, 2013, and March 31, 2013, respectively.

The following table lists deposit type by category:

                             

Deposit mix (Dollars in thousands)

 
March 31, 2014 December 31, 2013 March 31, 2013
Amount Percentage Amount Percentage Amount Percentage
Demand deposits $ 168,741 24.9 % $ 162,830 24.2 % $ 148,533 25.7 %
Now accounts 6,807 1.0 % 5,773 0.9 % 6,593 1.1 %
Money market accounts 129,925 19.2 % 131,855 19.6 % 101,319 17.6 %
Savings 32,988 4.9 % 34,041 5.1 % 25,671 4.4 %
CD less than $100K 78,187 11.5 % 80,291 11.9 % 91,169 15.8 %
CD over $100K 176,748 26.1 % 174,267 25.9 % 159,259 27.6 %
State & Broker CDs   84,981 12.5 %   84,981 12.6 %   44,731 7.7 %
Total deposits

$

678,377

100.0

%

$

674,038

100.0 %

$

577,275

100.0 %
 

CAPITAL

Total shareholders' equity at March 31, 2014 increased $2.6 million to $79.1 million from $76.5 million at December 31, 2013, and increased $10.8 million from $68.4 million at March 31, 2013. The equity increase compared to the fourth quarter of 2013 was primarily due to the $2.3 million in net earnings, and the equity increase compared to the first quarter of 2013 was mainly due to the $19.9 million in net earnings, partially offset by the redemption of $8.7 million in TARP preferred stocks.

The Company’s Tier 1 leverage ratio increased to 10.55% at March 31, 2014 from 10.39% at December 31, 2013 and decreased from 10.83% at March 31, 2013 primarily due to the redemption of $8.7 million in TARP preferred stock. The ratio continues to exceed the minimum regulatory guidelines for a "well-capitalized" institution.

The following table illustrates capital ratio for Pacific City Bank and per share information for Pacific City Financial Corporation:

                         

Capital Ratios

 
March 31,

2014

Capitalized

Regulatory

Requirements

Above Well

Capitalized

Requirements

Tier 1 Leverage Capital Ratio (Bank) 10.79 % 4.00 % 5.00 %
Tier 1 Risk-Based Capital Ratio (Bank) 13.71 % 4.00 % 6.00 %
Total Risk-Based Capital Ratio (Bank) 14.97 % 8.00 % 10.00 %
Tangible Common Equity to Tangible Assets (Consolidate) 9.28 % NA NA
Tangible Common Equity per Common Share (Consolidate) $ 8.45 NA NA
 

REDEMPTION OF TARP CPP PREFERRED STOCKS

In December 2008, the Company participated in Troubled Asset Relief Program (TARP) and The United States Treasury (“UST”) purchased $16.2 million in Company’s preferred stock Series A and immediately exercised the Series B Warrants of $810,000. The preferred stocks require quarterly dividend at an annual rate of 5.0% for Series A and 9.0% for Series B for the first five years.

On November 19, 2013, the Company redeemed $8.7 million of the $16.2 million outstanding Series A shares along with its $2.2 million in unpaid dividend by participating and winning at an auction held by the UST. The preferred stocks were redeemed at a 2.9% discount to the liquidation value of $10.8 million. The redemption was financed entirely from the Company’s retained earnings. As a result of the auction, the remaining par value of $7.5 million in Series A and $810,000 in Series B preferred stocks along with $2.0 million in total unpaid dividends and interest on the unpaid dividend were transferred to private investors.

In April 2014, the Company received regulatory approvals for additional $7.0 million to make payments on TARP preferred stocks unpaid dividend and its interest on unpaid dividend, repurchase shares, and make next quarterly dividend payment that is due. Subsequent to the approval, the Company made dividend and interest payments totaling $940,000 on the Series A and Series B preferred shares. The remaining $6.1 million will be used to repurchase 5,853 Series A shares and make $201,000 quarterly dividend payment due on May 15, 2014. After May 15, 2014 the outstanding number of Series A and Series B preferred stock will be 1,691 shares and 810 shares, respectively.

ASSET QUALITY

The provision for loan losses for the first quarter of 2014 was a reversal of $386,000 compared with the reversal of $693,000 in the fourth quarter 2013. The reversal of provision for loan losses for the first quarter 2014 was primarily due to the improvements in Company’s asset quality. The provision for loan losses for the first quarter of 2013 was $572,000.

The allowance for loan losses to total gross loans ratios was 1.88% for the first quarter of 2014 compared to 2.08% for the fourth quarter of 2013 and compared to 2.87% for the first quarter of 2013.

Nonperforming loans at March 31, 2014 decreased $1.0 million to $7.9 million compared with $8.9 million at December 31, 2013 mainly due to $545,000 in charge-offs, $289,000 in pay-offs, and transfer of $217,000 to OREO through foreclosure, partially offset by the addition of $260,000 to nonperforming loans.

The nonperforming assets to total assets ratio decreased 11 bps to 1.18% at March 31, 2014 from 1.29% at December 31, 2013, but increased 6 bps from 1.12% at March 31, 2013. The net value of OREO portfolio at March 31, 2014 increased to $1.2 million compared with $891,000 in the fourth quarter of 2013 and increased $1.1 million compared with $85,000 in the first quarter of 2013.

The following tables provide details of nonperforming assets, nonperforming loans, classified assets and classified loans.

                             

Nonperforming assets (Dollars in thousands)

 
  March 31,

2014

December 31,

2013

Percentage

Change

March 31,

2013

Percentage

Change

Nonperforming loans (NPL)

$ 7,856 $ 8,858 -11.3 % $ 7,239 8.5 %

Nonperforming TDR (included in NPL)

$ 4,339 $ 4,386 -1.1 % $ 4,404 -1.5 %
Gross loans included deferred loan fees/cost $ 631,749 $ 606,477 4.2 % $ 534,018 18.3 %
NPL/Gross loans 1.24 % 1.46 % -14.9 % 1.36 % -8.3 %
OREO $ 1,170 $ 891 31.3 % $ 85 1276.5 %
Performing TDR $ 7,541 $ 7,671 -1.7 % $ 8,669 -13.0 %
NPA (NPL+OREO) $ 9,026 $ 9,749 -7.4 % $ 7,324 23.2 %
Total assets $ 762,454 $ 755,910 0.9 % $ 652,511 16.8 %
 
NPA (NPL+OREO)/Gross loans 1.43 % 1.61 % -11.1 % 1.37 % 4.2 %
NPA (NPL+OREO)/Total assets 1.18 % 1.29 % -8.2 % 1.12 % 5.5 %
 
                       

Nonperforming loans composition (Dollars in thousands)

     
March 31,

2014

December 31,

2013

Percentage

Change

March 31,

2013

Percentage

Change

Real estate loans $ 1,408 $ 1,431 -1.6 % $ 1,253 12.3 %
Commercial and industrial loans 4,054 4,455 -9.0 % 2,953 37.3 %
SBA loans 2,357 2,922 -19.3 % 3,000 -21.4 %
Consumer loans & others   37   50 -27.3 %   33 9.9 %

$

7,856

$

8,858

-11.3 %

$

7,239

8.5 %
 
                             

Classified loans (Dollars in thousands)

 
March 31,

2014

December 31,

2013

Percentage

Change

March 31,

2013

Percentage

Change

Substandard (classified) $ 16,015 $ 17,297 -7.4 % $ 21,269 -24.7 %
Special mention   6,812   6,925 -1.6 %   6,805 0.1 %
Total criticized $ 22,827 $ 24,222 -5.8 % $ 28,074 -18.7 %
 
Watch   17,743 $ 7,152 148.1 %   4,254 317.1 %
Total Problem loans

$

40,570

$

31,374

29.3 %

$

32,328

25.5 %
 
                             

Classified assets (Dollars in thousands)

 
March 31,

2014

December 31,

2013

Percentage

Change

March 31,

2013

Percentage

Change

Classified assets $ 17,185 $ 18,188 -5.5 % $ 21,354 -19.5 %
Classified loans/Gross loans 2.54 % 2.85 % -11.1 % 3.98 % -36.4 %
Classified + Mention/Gross loans 3.61 % 3.99 % -9.5 % 5.26 % -31.3 %
Classified + Mention + Watch/Gross loans 6.42 % 5.17 % 24.1 % 6.05 % 6.1 %
Tier 1 + ALLL $ 91,613 $ 89,399 2.5 % $ 83,508 9.7 %
Classified loan/Tier 1 + ALLL 17.48 % 19.35 % -9.6 % 25.47 % -31.4 %
Classified assets/Tier 1 + ALLL 18.76 % 20.34 % -7.8 % 25.57 % -26.6 %
 

About Pacific City Financial Corporation

Headquartered in Los Angeles, California, Pacific City Financial Corporation is the parent company of Pacific City Bank, a full-service commercial bank with nine branch offices and seven loan production offices in Lynwood and Bellevue, Washington; Chicago, Illinois; Annandale, Virginia; Atlanta, Georgia; San Francisco, California; and Palisades Park, New Jersey. Pacific City Bank specializes in commercial banking for small to medium-size businesses by providing commercial real estate loans, small business loans and line of credit, trade finance loans, auto loans, residential mortgage loans, and SBA loans. Pacific City Bank serves a diverse customer base through its branches in the Greater Los Angeles Area and its Loan Production Offices in six states.

Safe Harbor Statement

This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”

                           
Pacific City Financial Corporation
Consolidated Balance Sheets (Unaudited)

(Dollars in thousands)

     
March 31,

2014

December 31,

2013

Percentage

Change

March 31,

2013

Percentage

Change

Assets
Cash & due from banks $ 50,930 $ 71,518 -28.8 % $ 64,862 -21.5 %
Investment Securities 67,114 66,033 1.6 % 56,996 17.8 %
Loans receivable
Real estate loans 449,294 423,553 6.1 % 358,103 25.5 %
Commercial & industrial loans 58,703 61,181 -4.0 % 65,528 -10.4 %
SBA loans 84,494 81,510 3.7 % 68,904 22.6 %
Consumer & other 38,980 39,890 -2.3 % 40,668 -4.1 %
Unearned fee/cost 279 343 -18.7 % 815 -65.8 %

Allowance for loans loss

  (11,875 )   (12,606 ) -5.8 %   (15,316 ) -22.5 %
Total net loans receivable   619,875     593,871   4.4 %   518,702   19.5 %

Furniture, equip & leasehold

1,997 2,083 -4.1 % 1,620 23.3 %
Net OREO 1,170 891 31.3 % 85 1276.5 %
Accrued interest receivables 1,831 1,851 -1.1 % 1,766 3.7 %
FHLB stock 3,000 3,000 0.0 % 2,092 43.4 %
Deferred tax assets, net 7,965 8,474 -6.0 % 9 88713.2 %
Excess service assets 5,961 5,793 2.9 % 4,420 34.9 %
Others   2,611     2,396   9.0 %   1,959   33.2 %
Total assets $ 762,454   $ 755,910   0.9 % $ 652,511  

 

16.8

%

 
Liabilities
Deposits
Demand deposits $ 175,548 $ 168,603 4.1 % $ 155,126 13.2 %
Savings & MMDA 162,913 165,896 -1.8 % 126,990 28.3 %
Time deposits   339,916     339,539   0.1 %   295,159   15.2 %
Total deposits   678,377     674,038   0.6 %   577,275   17.5 %
Borrowings 853 853 0.0 % 853 0.0 %
Accrued interest payable 1,071 1,187 -9.7 % 930 15.2 %
Other liabilities   3,028     3,286   -7.9 %   5,100   -40.6 %
Total liabilities   683,329     679,364   0.6 %   584,158   17.0 %
 
Capital
Preferred stock & warrant 8,354 8,354 0.0 % 16,879 -50.5 %
Common stock 68,700 68,702 0.0 % 68,702 0.0 %
Additional paid in capital 2,324 2,283 1.8 % 2,165 7.3 %
Retained earnings 361 (1,968 ) -118.3 % (19,554 ) -101.8 %
OCI   (614 )   (825 ) -25.6 %   161   -481.7 %
Total capital   79,125     76,546   3.4 %   68,353   15.8 %
 
Total liabilities & capital $ 762,454   $ 755,910   0.9 % $ 652,511   16.8 %
 
 
                             
Pacific City Financial Corporation
Consolidated Income Statements (Unaudited)

(Dollars in thousands, except share and per share data)

 
Three Months Ended
March 31,

2014

December 31,

2013

Percentage

Change

March 31,

2013

Percentage

Change

Interest income
Interest and fees on loans $ 8,116 $ 8,212 -1.2 % $ 6,916 17.4 %
Interest on investments 296 285 3.8 % 204 45.0 %
Interest on others   78     59   33.1 %   46   69.0 %
Total interest income   8,490     8,556   -0.8 %   7,166   18.5 %
 
Interest expense
Interest on deposits 1,185 1,165 1.7 % 1,052 12.7 %
Interest on borrowings   13     14   -6.1 %   13   1.2 %
Total interest expenses   1,198     1,179   1.6 %   1,065   12.6 %
 
Net interest income 7,292 7,377 -1.1 % 6,101 19.5 %
 
(Reversal) Provision for loans loss (386 ) (693 ) -44.3 % 572 -167.4 %
 
Net interest income after PLL   7,678     8,070   -4.9 %   5,529   38.9 %
 

Noninterest income

Gain on sale of SBA loans 1,227 1,477 -16.9 % 1,285 -4.5 %
Gain on sale of HM loans 45 721 -93.8 % 306 -85.4 %
Service charges on deposits 307 358 -14.2 % 340 -9.7 %
Loans servicing fees 457 446 2.4 % 378 20.9 %
Net gain (loss) on OREO 10 (36 ) (72 ) -114.0 %
Other   144     354   -59.3 %   348   -58.5 %

Total noninterest income

  2,190     3,320   -34.0 %   2,585   -15.3 %
 

Noninterest expense

Employee salaries & benefits 3,617 3,365 7.5 % 2,999 20.6 %
Occupancies and fixed assets 754 760 -0.9 % 624 20.8 %
Legal & professional 331 283 16.8 % 213 55.2 %
FDIC assessment 91 120 -24.3 % 227 -59.9 %
OREO expenses 1 0 170.8 % 54 -98.2 %
Loan related expenses 163 354 -53.8 % 126 29.3 %
Others   801     998   -19.7 %   659   21.6 %

Total noninterest expenses

  5,758     5,880   -2.1 %   4,902   17.5 %
 
Net income before tax 4,110 5,510 -25.4 % 3,212 28.0 %
 
Income tax provision   1,625     2,486   -34.6 %   -   0.0 %
 
Net income after tax

$

2,485

 

$

3,024

  -17.8 %

$

3,212

  -22.6 %
 
Dividend, accretion of disc, & interest on dividend   (156 )   24   -750.0 %   (306 ) -49.0 %
 
Net income available for common shareholders $ 2,329   $ 3,048   -23.6 % $ 2,906   -19.9 %
 
Earnings (loss) per common shares
Basic $ 0.28 $ 0.36 -23.6 % $ 0.35 -19.8 %
Diluted $ 0.28 $ 0.36 -23.9 % $ 0.35 -20.2 %
 
Average shares outstanding
Basic 8,373,001 8,373,001 8,373,001
Diluted 8,420,464 8,387,008 8,378,157
 
 
                                     
Pacific City Financial Corporation
Average Balance, Average Yield, and Average Rate

(Dollars in thousands)

 
Three Months Ended
March 31, 2014 December 31, 2013 March 31, 2013
Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Average

Balance

Interest

Income/

Expense

Average

Yield/

Rate

Assets
Interest-earning assets:
Gross loans, net of deferred loan fees $ 621,359 $ 8,117 5.30 % $ 618,620 $ 8,212 5.27 % $ 512,069 $ 6,916 5.48 %
US government agencies 3,050 13 1.75 % 2,687 16 2.32 % 1,998 11 2.23 %
Mortgage backed securities 35,163 165 1.88 % 31,585 152 1.93 % 18,864 82 1.74 %
Collaterized mortgage obligation 29,119 115 1.58 % 30,026 115 1.53 % 29,135 108 1.48 %
Muni bonds 247 2 3.64 % 247 2 3.64 % 252 2 3.17 %
Interest bearing deposit & others   36,883     23 0.25 %   25,927     16 0.25 %   55,446     34 0.25 %
Total interest-earning assets $ 725,821   $ 8,435 4.71 % $ 709,092   $ 8,513 4.76 % $ 617,764   $ 7,153 4.70 %
Noninterest-earning assets:
Cash and cash equivalents $ 17,537 $ 18,913 $ 15,696
Allowances for loan losses (12,465 ) (14,595 ) (14,823 )
Other assets   23,626     24,919     11,551  
$ 28,698   $ 29,237   $ 12,424  
 
Total assets

$

754,519   $ 738,329   $ 630,188  
 
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
Deposits:
Money market & NOW accounts $ 133,606 $ 251 0.76 % $ 129,795 $ 247 0.75 % $ 103,618 $ 198 0.77 %
Savings 34,738 260 3.04 % 30,932 239 3.07 % 25,136 188 3.03 %
Time deposits less than $100K 104,572 231 0.89 % 93,087 238 1.01 % 95,379 258 1.10 %
Time deposits $100K or more   236,398     443 0.76 %   229,242     442 0.76 %   194,065     408 0.85 %
$ 509,314   $ 1,185 0.94 % $ 483,056   $ 1,166 0.96 %   418,198     1,052 1.02 %
Borrowings:
Subordinated debentures   853     13 6.25 %   853     13 6.25 %   853     13 6.25 %
$ 853   $ 13 6.25 % $ 853   $ 13 6.25 % $ 853   $ 13 6.25 %
 
Total interest-bearing liabilities $ 510,167   $ 1,198 0.95 % $ 483,909   $ 1,179 0.97 % $ 419,051     1,065 1.03 %
Noninterest-bearing liabilities:
Demand deposits $ 162,235 $ 167,846 $ 137,625
Other liabilities   4,033     7,075     6,192  
$ 166,268   $ 174,921   $ 143,817  
 
Total liabilities $ 676,435   $ 658,830   $ 562,868  
 
Stockholders' equity $ 78,084   $ 79,499   $ 67,319  
 
Total liabilities and stockholders' equity $ 754,519   $ 738,329   $ 630,187  
 
Net interest income $ 7,237 $ 7,334 $ 6,089
 
Cost of funds 0.72 % 0.72 % 0.78 %
 
Net interest spread 3.76 % 3.80 % 3.67 %
 
Net interest margin 4.04 % 4.10 % 4.00 %
 

Contacts

Pacific City Financial Corporation
Timothy Chang
Senior Vice President & Chief Financial Officer
213-210-2000

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Contacts

Pacific City Financial Corporation
Timothy Chang
Senior Vice President & Chief Financial Officer
213-210-2000