Pan Pacific Bank Announces Financial Results for June 30, 2015, Strong Growth with Improved Core Earnings

FREMONT, Calif.--()--Pan Pacific Bank (OTCBB:PPFC) today announced its unaudited financial results for the period ended June 30, 2015, including total assets of $147.1 million, net loans of $111.9 million and deposits of $124.7 million. Pre tax earnings for the three and six months ended June 30, 2015 were $206 thousand and $388 thousand, respectively, compared to $114 thousand and $191 thousand, respectively, for the same periods in 2014.

“We planned for continued growth in 2015 and are excited to see that strategy producing results,” said Wayne Doiguchi, Chief Executive Officer of Pan Pacific Bank, “Growing into our expanded infrastructure has been instrumental in achieving improved core earnings while maintaining excellent asset quality and strong capital levels. Our presence and relationship building in the San Jose market has combined with the continued success in Fremont and Alameda County to make this a promising year for the Bank.”

The following are Bank highlights for the Quarter ended June 30, 2015:

  • Year over year total assets increased $36.8 million or 33.4% and $27.0 million or 22.5% from year end 2014.
  • Year over year net loans increased $29.2 million or 34.6% and $25.2 million or 28.5% from year end 2014.
  • Year over year total deposits increased $36.4 million or 41.3% and $25.2 million or 25.3% from year end 2014.
  • Year-to-Date charge offs, net of (recoveries) were ($10.4) thousand, which represents (0.01%) of average loans.
  • Year over year non-performing loans decreased from $415 thousand to $358 thousand. At June 30, 2015, non-performing loans were 0.32% as a percent of total gross loans and 0.24% as a percent of total assets.
  • Regulatory capital ratios remain strong at 13.83%, 12.57%, 12.57% and 11.90% for Total Risked Based, Tier 1 Risk Based, Common Equity Tier I and Tier 1 Leverage, respectively.
  • Pre tax earnings for the three months ended June 30, 2015 were $206 thousand compared to $114 thousand in the same period for 2014. For the six months ended June 30, 2015, pre-tax earnings were $388 thousand compared to $191 thousand in the same period for 2014. That’s an improvement of 80.7% and 103.1%, respectively, for the three and six months ended June 30, 2015 compared to the same periods in 2014.
  • After tax earnings for the three months ended June 30, 2015 were $123 thousand compared to $2.9 million in the same period for 2014. For the six months ended June 30, 2015, after tax earnings were $228 thousand compared to $2.9 million in the same period for 2014. During the second quarter of 2014, Bank management determined that it was more likely than not that the deferred tax asset (DTA) would be realized. Therefore, the second quarter tax expense in 2014 included a benefit or income of $2,740,245 related to the reversal of the valuation allowance for deferred tax assets.
  • Maintained a very favorable YTD and QTD Net Interest Margin of 4.15% and 4.11%, respectively.

Stockholders’ equity increased $236 thousand, or 1.3%, to $18.1 million at June 30, 2015 compared with $17.9 million at December 31, 2014. This increase was due to net earnings of $228 thousand, $57 thousand in stock option related items, minus $49 thousand net change in other comprehensive income. Tangible book value was $3.63 at June 30, 2015 and $3.58 at December 31, 2014.

About Pan Pacific Bank

Pan Pacific Bank is focused on meeting the banking needs of business and individuals in Alameda and Santa Clara counties, its primary service areas. The Bank was founded in 2005 and is headquartered at 47065 Warm Springs Blvd, Fremont, California. The Bank has one branch office in San Jose, 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.

       

June 30 Financial Data

 

The following summary presents unaudited selected consolidated financial data as of and for the nine months ended June 30, 2015 and 2014 and income for the three and six months ended June 30, 2015 and 2014

 
As of and For the Six Months As of and For the Three Months
Ended June 30, Ended June 30,
Income (Rounded to thousand)   2015     2014     2015     2014  
 
 
Interest income $ 2,794 $ 2,303 $ 1,439 $ 1,168
Interest expense   225     211     117     104  
Net interest income 2,569 2,092 1,322 1,064
Provision for loan losses   -     -     -     -  
Net interest income after provision for loan losses 2,569 2,092 1,322 1,064
Noninterest income 184 179 97 88
Noninterest expense   2,365     2,080     1,213     1,038  
Income (loss) before income tax expense (benefit) 388 191 206 114
Income tax expense (benefit)   160     (2,736 )   83     (2,738 )
Net income (loss) $ 228   $ 2,927   $ 123   $ 2,852  
 
Per Share Data:
Net Income (loss) per common share:
Basic $ 0.046 $ 0.592 $ 0.025 $ 0.576
Diluted 0.045 0.583 0.024 0.567
 
Shares Outstanding
Basic 4,984,861 4,956,193 4,984,861 4,956,193
Diluted 5,045,375 5,031,901 5,049,591 5,033,912
Basic Weighted Average 4,984,861 4,941,318 4,984,861 4,948,183
Diluted Weighted Average 5,045,375 5,017,026 5,049,591 5,025,902
 
 
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)   2015     2014     2015  
 
Total assets $ 147,139 $ 110,337 $ 139,148
Investment securities 7,857 11,576 10,351
 
Gross loans (1) 113,551 84,381 99,451
Allowance for loan losses   (1,667 )   (1,651 )   (1,662 )
Net loans 111,884 82,730 97,789
 
Deposits 124,731 88,290 118,419
Total borrowings 3,500 4,000
Shareholders’ equity 18,085 17,628
Performance Ratios:
Return on average assets (3) 0.35 % 5.39 %
Return on average shareholders’ equity (3) 2.55 % 39.66 %
Net interest margin (3) 4.15 % 4.01 %
Efficiency ratio (2) 85.91 % 91.59 %
Gross loans to deposit 91.04 % 95.57 %
 
Asset Quality: (Rounded to thousand)
Restructured loans $ 358 $ 368
Nonperforming loans 358 415
Other real estate owned - -
Total nonperforming assets 358 415
Allowance for loan losses:
Percentage of nonperforming loans 465.64 % 397.83 %
Percentage of gross loans 1.47 % 1.96 %
 
Net charge offs (recoveries) to average gross loans -0.01 % -0.01 %

Capital Ratios:

Bank:
Leverage ratio 11.90 % 14.03 %
Average equity to average assets 13.59 %
Common Equity Tier 1 Capital Ratio 12.57 %
Tier 1 risk-based capital ratio 12.57 % 16.34 %
Total risk-based capital ratio 13.83 % 17.60 %
 
(1) Gross loans include net deferred loan fees and costs of ($60) and ($47) at June 30, 2015 and 2014, respectively.
(2) The efficiency ratio is noninterest expense divided by the sum of net interest income and noninterest income.
(3) Annualized

Contacts

Pan Pacific Bank
Wayne Doiguchi, CEO
or
Margaret A. Torres, CFO
510-809-8888

Contacts

Pan Pacific Bank
Wayne Doiguchi, CEO
or
Margaret A. Torres, CFO
510-809-8888