Pan Pacific Bank
(PublicWire.com Press Release) — FREMONT, Calif., Oct. 22, 2013 /PRNewswire/ — Pan Pacific Bank (OTCBB:PPFC) today announced its unaudited financial results for the quarter ended September 30, 2013, including total assets of $107.2 million, loans of $77.2 million, and deposits of $92.4 million. Chief Executive Officer Wayne Doiguchi commented, “Pan Pacific Bank is pleased to report net after-tax earnings of $27 thousand and $154 thousand for the three and nine months ended September 30, 2013, respectively. The results for the quarter ended September 30, 2013 marks seven consecutive profitable quarters.”
CEO Doiguchi added, “The bank has enjoyed significant improvement in its overall asset quality and experienced a 35% reduction in total non-performing loans on a year over year basis. In addition, our charged off loans net of recoveries is less than $18 thousand year to date or 0.02% of average loans.”
Net after-tax income for the three months ended September 30, 2013 was $27 thousand or $.005 per diluted share compared with net after-tax income of $169 thousand, or $.035 per diluted share for the same period in 2012. The primary reason for this $142 variance is a decrease in interest income of $164 thousand, a decrease of $49 thousand in non-interest income offset by a decrease in non-interest expense of $71 thousand. Net after-tax income for the nine months ended September 30, 2013, was $154 thousand or $.031 per diluted share compared with net after-tax income of $592 thousand, or $.133 per diluted share for the same period in 2012. For the nine month period, the primary reason for the decrease in net after-tax income on a year over year basis was the absence in 2013 of any gain on sale of loans which amounted to approximately $727.5 thousand in 2012. Offsetting that lack of income in the first nine months of 2013, overall expense was down by approximately $507 thousand compared to the same period in 2012. Included in the decrease was $154 thousand in interest expense, $128 thousand in provision for loan loss, and $225 thousand in employment expense related to incentives on loan sales.
Total assets decreased $6.9 million, or 6.1%, to $107.2 million at September 30, 2013 compared with $114.1 million at September 30, 2012. On a linked quarter basis, total assets increased by $919 thousand or .86%. Gross loans decreased $16.2 million, or 17.3%, to $77.2 million at September 30, 2013, compared with $93.4 million at September 30, 2012. The decrease was due to normal principal reductions, borrowers reducing debt as the result of property sales and other injections of cash flow and to a lesser extent, reduced relationship balances caused by rate sensitivity. Total deposits decreased $7.2 million, or 7.3%, to $92.4 million at September 30, 2013, compared with $99.6 million at September 30, 2012. On a linked quarter basis at September 30, 2013, total deposits increased by $890 thousand from June 30, 2013. In addition, at September 30, 2013, total deposits increased $2.7 million from March 31, 2013.
Stockholders’ equity increased $483 thousand, or 3.5%, to $14.4 million at September 30, 2013 compared with $13.9 million at September 30, 2012. This increase was due to earnings for the last three months of 2012 of $331 thousand, earnings for the first nine months of 2013 of $154 thousand, $61 thousand in stock option related items, less $63 thousand net change in other comprehensive income. Tangible book value was $2.93 at September 30, 2013 and $2.85 at September 30, 2012.
CEO Doiguchi also announced, “On September 1, 2013, Natalie Taaffe, Relationship Manager/Construction Lending, joined the team and will be working along side Relationship Manager Bill Walters in the Bank’s market area of Santa Clara and San Mateo counties.” CEO Doiguchi went on to say “With a strong balance sheet including ample capital, the Bank is poised for growth. Both Mr. Walters and Ms. Taaffe are highly respected and well known in the South Bay and we anticipate a robust response to their presence.”
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.
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.