SAN FRANCISCO--(BUSINESS WIRE)--Presidio Bank (OTCBB: PDOB), a Bay Area business bank, today reported unaudited results for the second quarter ended June 30, 2015 with net income for the quarter of $696 thousand, an increase of $213 thousand from the quarter ended March 31, 2015. In addition, Total Deposits, Total Loans and Total Assets all ended the quarter at record high levels.
“We are pleased to report a solid growth quarter,” said Presidio Bank President and CEO Steve Heitel. “All five of our Banking Offices made strong contributions towards making the quarter a success.”
Financial Highlights
- Total Loans outstanding were up $30 million, 7% from the quarter ended March 31, 2015, and increased $37 million or 9% over the second quarter of 2014. Loans outstanding now total a record high of $446 million. Despite significant loan fundings during the quarter, the loan pipeline remains strong.
- Total Deposits increased by $33 million or 7% from the quarter ended March 31, 2015 and increased by $107 million, 26% over the second quarter of 2014. Non-Interest Bearing Demand Deposits were up 17% for the quarter and up 44% from the same quarter in 2014 and now account for 37% of Total Deposits.
- Net Interest Income of $4.7 million in the second quarter was up 3.3% over the first quarter of 2015 and 2.1% over the quarter ended June 30, 2014. The second quarter of 2015 included $70 thousand in interest expense on subordinated debt that was not incurred in the second quarter of 2014.
- Operating Expenses decreased 5.2% from the quarter ended March 31, 2015 as seasonal declines in compensation and benefits expense more than offset an increase in professional fees driven by one-time recruitment expenses and seasonally high legal expenses associated with the Bank’s annual meeting and proxy statement. Operating Expenses were up 12% from the quarter ended June 30, 2014 primarily due to increased personnel and rent expense associated with the Bank’s San Mateo Office which opened in November 2014.
- Net Income applicable to Common Shareholders was $541 thousand for the quarter, an increase of $180 thousand, 50% over the first quarter 2015; however this is down $200 thousand from the second quarter of 2014 due to interest on subordinated debt that originated late in the third quarter of 2014, increased expenses associated with the San Mateo office, and increased Dividends on the Bank’s Perpetual Preferred Stock, which increased from 5% to 9% on February 15, 2015.
- Credit quality remains strong with a classified Loan to Capital Ratio less than 5%. Non-performing Loans totaled $1.2 million at June 30, 2015 or 0.3% of total loans. The Allowance for Loan Losses of $5.2 million covers Non-Performing Loans by more than four times.
- Diluted Earnings per Common Share were $0.12 for the quarter compared to $0.08 in the first quarter of 2015 and $0.17 in the second quarter of 2014.
- Book Value per Share increased to $10.27 per share as of June 30 2015 from $9.83 per share at March 31, 2015 and $9.31 per share at June 30, 2014. This increase was primarily due to the Bank’s recently completed one million share Common Stock Rights Offering which was oversubscribed at $12.00 per share.
“I am pleased by the strong show of shareholder support for the Bank with our Common Stock Rights Offering being 60% oversubscribed,” said Presidio Bank Chairman and Founder, Jim Woolwine. “We are putting that new capital to work by continuing to grow the Bank.”
| Presidio Bank | ||||||||||||||||||||||||||
| (dollars in thousands, except per share amounts, unaudited) | ||||||||||||||||||||||||||
| Condensed Balance Sheet | ||||||||||||||||||||||||||
| 6/30/2015 | 3/31/2015 | Change | 6/30/2014 | Change | 12/31/2014 | Change | ||||||||||||||||||||
| Cash and due from banks | 501 | 7,094 | -92.9 | % | 2,517 | -80.1 | % | 5,621 | -91.1 | % | ||||||||||||||||
| Interest bearing due from banks | 126,275 | 102,700 | 23.0 | % | 56,366 | 124.0 | % | 104,642 | 20.7 | % | ||||||||||||||||
| Total cash and equivalents | 126,776 | 109,794 | 15.5 | % | 58,883 | 115.3 | % | 110,263 | 15.0 | % | ||||||||||||||||
| Investment securities | 14,191 | 14,235 | -0.3 | % | 14,492 | -2.1 | % | 14,392 | -1.4 | % | ||||||||||||||||
| Loans, net of fees | 446,068 | 416,492 | 7.1 | % | 408,752 | 9.1 | % | 415,741 | 7.3 | % | ||||||||||||||||
| Allowance for loan losses | (5,172 | ) | (5,172 | ) | 0.0 | % | (4,952 | ) | 4.4 | % | (5,172 | ) | 0.0 | % | ||||||||||||
| Net loans | 440,896 | 411,320 | 7.2 | % | 403,800 | 9.2 | % | 410,569 | 7.4 | % | ||||||||||||||||
| Premises and equipment, net | 1,381 | 1,433 | -3.6 | % | 1,032 | 33.8 | % | 1,477 | -6.5 | % | ||||||||||||||||
| Other assets and interest receivable | 11,064 | 11,754 | -5.9 | % | 5,386 | 105.4 | % | 6,052 | 82.8 | % | ||||||||||||||||
| Total assets | 594,308 | 548,536 | 8.3 | % | 483,593 | 22.9 | % | 542,753 | 9.5 | % | ||||||||||||||||
| Non-interest-bearing demand | 190,129 | 162,424 | 17.1 | % | 132,538 | 43.5 | % | 164,353 | 15.7 | % | ||||||||||||||||
| Interest bearing transaction | 67,403 | 80,246 | -16.0 | % | 61,222 | 10.1 | % | 69,646 | -3.2 | % | ||||||||||||||||
| Money market and savings accounts | 207,446 | 188,849 | 9.8 | % | 169,909 | 22.1 | % | 196,050 | 5.8 | % | ||||||||||||||||
| Time deposits | 51,046 | 51,029 | 0.0 | % | 45,736 | 11.6 | % | 51,643 | -1.2 | % | ||||||||||||||||
| Total deposits | 516,024 | 482,548 | 6.9 | % | 409,405 | 26.0 | % | 481,692 | 7.1 | % | ||||||||||||||||
| Borrowings | 10,284 | 10,326 | -0.4 | % | 26,147 | -60.7 | % | 10,360 | -0.7 | % | ||||||||||||||||
| Other liabilities | 7,079 | 7,190 | -1.5 | % | 2,095 | 237.9 | % | 2,884 | 145.5 | % | ||||||||||||||||
| Total liabilities | 533,387 | 500,064 | 6.7 | % | 437,647 | 21.9 | % | 494,936 | 7.8 | % | ||||||||||||||||
| Preferred stock | 6,869 | 6,869 | 0.0 | % | 6,844 | 0.4 | % | 6,869 | 0.0 | % | ||||||||||||||||
| Common stock | 56,375 | 44,466 | 26.8 | % | 43,798 | 28.7 | % | 44,207 | 27.5 | % | ||||||||||||||||
| Retained earnings | (2,264 | ) | (2,806 | ) | 19.3 | % | (4,588 | ) | 50.7 | % | (3,167 | ) | 28.5 | % | ||||||||||||
| Other comprehensive income | (59 | ) | (57 | ) | -3.5 | % | (108 | ) | 45.4 | % | (92 | ) | 35.9 | % | ||||||||||||
| Total shareholder’s equity | 60,921 | 48,472 | 25.7 | % | 45,946 | 32.6 | % | 47,817 | 27.4 | % | ||||||||||||||||
| Total liabilities and equity | 594,308 | 548,536 | 8.3 | % | 483,593 | 22.9 | % | 542,753 | 9.5 | % | ||||||||||||||||
| Book value per share | ||||||||||||||||||||||||||
| Book value per share | $ | 10.27 | $ | 9.83 | $ | 9.31 | $ | 9.74 | ||||||||||||||||||
| Total shares outstanding EOP | 5,261 | 4,231 | 4,199 | 4,203 | ||||||||||||||||||||||
| Capital Ratios | ||||||||||||||||||||||||||
| Tier 1 leverage ratio | 10.6 | % | 9.3 | % | 9.6 | % | 8.8 | % | ||||||||||||||||||
| Tier 1 risk-based capital ratio | 11.7 | % | 10.0 | % | 10.0 | % | 10.0 | % | ||||||||||||||||||
| Total risk-based capital ratio | 14.7 | % | 13.2 | % | 11.2 | % | 13.3 | % | ||||||||||||||||||
| Tangible common risk-based ratio | 10.4 | % | 8.6 | % | 8.5 | % | 8.5 | % | ||||||||||||||||||
| Condensed Statement of Income | ||||||||||||||||||||||||||||||
| For the three months ended | For the six months ended | |||||||||||||||||||||||||||||
| 6/30/2015 | 3/31/2015 |
Change |
6/30/2014 |
Change |
6/30/2015 | 6/30/2014 |
Change |
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| Interest income | 5,171 | 4,995 | 3.5 | % | 4,841 | 6.8 | % | 10,167 | 9,414 | 8.0 | % | |||||||||||||||||||
| Interest expense | 428 | 404 | (5.9 | %) | 195 | (119.5 | %) | 833 | 389 | (114.1 | %) | |||||||||||||||||||
| Net interest income | 4,743 | 4,591 | 3.3 | % | 4,646 | 2.1 | % | 9,334 | 9,025 | 3.4 | % | |||||||||||||||||||
| Provision for loan loss | - | - | NM | 81 | NM | - | 81 | NM | ||||||||||||||||||||||
| Net interest income after provision | 4,743 | 4,591 | 3.3 | % | 4,565 | 3.9 | % | 9,334 | 8,944 | 4.4 | % | |||||||||||||||||||
| Other income | 183 | 169 | 8.3 | % | 182 | 0.5 | % | 352 | 352 | 0.0 | % | |||||||||||||||||||
| Compensation and benefit expenses | 2,301 | 2,595 | 11.3 | % | 2,064 | (11.5 | %) | 4,896 | 4,251 | (15.2 | %) | |||||||||||||||||||
| Occupancy and equipment expenses | 432 | 446 | 3.1 | % | 373 | (15.8 | %) | 878 | 746 | (17.7 | %) | |||||||||||||||||||
| Data processing | 277 | 287 | 3.5 | % | 261 | (6.1 | %) | 564 | 517 | (9.1 | %) | |||||||||||||||||||
| Professional and legal | 191 | 110 | (73.6 | %) | 118 | (61.9 | %) | 301 | 213 | (41.3 | %) | |||||||||||||||||||
| Other operating expenses | 542 | 511 | (6.1 | %) | 525 | (3.2 | %) | 1,053 | 989 | (6.5 | %) | |||||||||||||||||||
| Total operating expenses | 3,743 | 3,949 | 5.2 | % | 3,341 | (12.0 | %) | 7,692 | 6,716 | (14.5 | %) | |||||||||||||||||||
| Net income before taxes | 1,183 | 811 | 45.9 | % | 1,406 | (15.9 | %) | 1,994 | 2,580 | (22.7 | %) | |||||||||||||||||||
| Income taxes | 487 | 328 | (48.5 | %) | 576 | 15.5 | % | 815 | 1,058 | 23.0 | % | |||||||||||||||||||
| Net income | 696 | 483 | 44.1 | % | 830 | (16.1 | %) | 1,179 | 1,522 | (22.5 | %) | |||||||||||||||||||
| Preferred dividends | 155 | 122 | (27.0 | %) | 89 | (74.2 | %) | 276 | 178 | (55.1 | %) | |||||||||||||||||||
| Net income to common | 541 | 361 | 49.9 | % | 741 | (27.0 | %) | 903 | 1,344 | (32.8 | %) | |||||||||||||||||||
| Earnings Per Share | ||||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.13 | $ | 0.09 | $ | 0.17 | $ | 0.21 | $ | 0.31 | ||||||||||||||||||||
| Diluted earnings per share | $ | 0.12 | $ | 0.08 | $ | 0.17 | $ | 0.20 | $ | 0.30 | ||||||||||||||||||||
| Average shares outstanding | 4,315 | 4,221 | 4,187 | 4,268 | 4,179 | |||||||||||||||||||||||||
| Average diluted shares | 4,546 | 4,462 | 4,373 | 4,504 | 4,332 | |||||||||||||||||||||||||
| Performance Ratios | ||||||||||||||||||||||||||||||
| Return on average assets | 0.48 | % | 0.38 | % | 0.69 | % | 0.43 | % | 0.66 | % | ||||||||||||||||||||
| Return on average common equity | 5.00 | % | 3.52 | % | 7.64 | % | 4.28 | % | 7.03 | % | ||||||||||||||||||||
| Net interest margin | 3.40 | % | 3.65 | % | 3.95 | % | 3.51 | % | 3.97 | % | ||||||||||||||||||||
| Cost of funds | 0.32 | % | 0.34 | % | 0.18 | % | 0.33 | % | 0.19 | % | ||||||||||||||||||||
| Efficiency ratio | 76.1 | % | 83.0 | % | 69.2 | % | 79.5 | % | 71.6 | % | ||||||||||||||||||||
| Average Balances | ||||||||||||||||||||||||||||||
| Total assets | 576,058 | 519,565 | 479,221 | 547,966 | 465,317 | |||||||||||||||||||||||||
| Earning assets | 561,247 | 509,764 | 471,872 | 535,648 | 458,230 | |||||||||||||||||||||||||
| Total loans | 424,455 | 413,932 | 399,895 | 419,222 | 391,074 | |||||||||||||||||||||||||
| Total deposits | 508,336 | 458,016 | 419,923 | 483,315 | 408,006 | |||||||||||||||||||||||||
| Common equity | 43,205 | 41,603 | 38,925 | 42,406 | 38,530 | |||||||||||||||||||||||||
| 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 five banking offices in San Francisco, Walnut Creek, San Rafael, San Mateo 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.