Pan Pacific Bank (fka PPFC)

[Enterprising Investor]

Pan Pacific Bank Announces Year-To-Date Growth in Net Loans 15.5% (10/22/14)

FREMONT, Calif.--(BUSINESS WIRE)--Pan Pacific Bank (OTCBB: PPFC) today announced its unaudited financial results for the quarter ended September 30, 2014, including total assets of $119.1 million, net loans of $88.1 million and deposits of $99.0 million. “Pan Pacific Bank is pleased to report continued positive earnings with net after-tax earnings for the three and nine months ending September 30, 2014, of $56,468 and $2,983,071, respectively,” said Wayne Doiguchi, Pan Pacific Bank’s CEO. “During the second quarter, Bank management determined that it is more likely than not that the deferred tax asset (DTA) will be realized. Therefore, the second quarter tax expense includes a benefit or income of $2,740,245 related to the reversal of the valuation allowance for deferred tax assets.”

Doiguchi added: “The Bank has now been profitable for 11 consecutive quarters with core pre-tax earnings of $56,468 and $247,026 for the three and nine months ended September 30, 2014, respectively. We are also very pleased to announce growth in net loans and deposits from year-end 2013 of 15.5% and 8.8%, respectively, while maintaining very strong asset quality and capital levels.”

The following are Bank highlights for the quarter ended September 30, 2014:

• Year-over-year Book Value increased from $2.93 to $3.55 per share.

• Year-over-year total assets increased $11.9 million or 11.1%.

• Year-over-year net loans increased $12.6 million or 16.7% and increased $11.8 million or 15.5% from year end.

• Year-over-year total deposits increased $6.6 million or 7.1% and increased $8.0 million or 8.8% from year end.

• For the nine months ending September 30, 2014, recoveries, net of charge offs were $6.9 thousand.

• At September 30, 2014, non-performing loans were $398 thousand or 0.44% as a percent of total gross loans and 0.33% as a percent of total assets.

• Regulatory capital ratios remained strong at 16.49%, 15.24% and 13.13% for Total Risked Based, Tier 1 Risk Based and Tier 1 Leverage, respectively.

• Positive net earnings of $56 thousand and $3.0 million or $0.011 and $.597 per diluted share for the three and nine months ended September 30, 2014, respectively, compared to $27 thousand and $154 thousand or $0.005 and $0.031 per diluted share for the same respective periods in 2013.

• Year-over-year, reduced the cost of interest bearing deposits and cost of funds by 20 basis points and 19 basis points, respectively.

• For the quarter ended September 30, 2014, maintained a very favorable Net Interest Margin of 3.99%.

Stockholders’ equity increased $3.2 million, or 22.2%, to $17.7 million at September 30, 2014, compared with $14.5 million at December 31, 2013. This increase was due to earnings of $2,983 thousand, $94 thousand in stock option related items, plus $138 thousand net change in other comprehensive income. Book value was $3.55 at September 30, 2014, and $2.94 at December 31, 2013.

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.

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