Presidio Bank (fka PDOB)

[56Chevy]

Presidio Bank Reports Results for the Third Quarter 2014

Date : 10/28/2014 @ 4:40PM
Source : Business Wire
Stock : Presidio Bank (san Francisco, Ca) (QB) (PDOB)
Quote : $11.95 -0.05 (-0.42%) @ 4:00PM

Net Income up 23% over Third Quarter 2013

Total Assets exceed $500 million for the first time

Presidio Bank (OTCBB: PDOB), a Bay Area business bank, today reported unaudited results for the third quarter ended September 30, 2014 with net income for the quarter of $895 thousand, a 23% increase over the $728 thousand achieved in the third quarter of 2013. Deposits and total assets also grew to record levels during the quarter.

“We are pleased to have passed the $500 million in total assets milestone,” said Presidio Bank President and CEO Steve Heitel. “The Bank had solid deposit and income growth during the quarter. While loans declined modestly due to some construction loan payoffs, we expect resumption of loan growth in the fourth quarter, which is traditionally our strongest.”

Financial Highlights

• Total Loans Outstanding declined by $8 million or 2% over the quarter ended June 30, 2014 but increased by $50 million or 14% over the quarter ended September 30, 2013. A number of construction loans paid off earlier than anticipated as a reflection of the robust real estate market in the San Francisco Bay Area. Prior to the modest decline this quarter, the Bank had enjoyed six consecutive quarters of loan growth.

• Total Deposits increased by $41 million or 10% from the quarter ended June 30, 2014 and by $77 million or 20% from the quarter ended September 30, 2013. As has happened in the past, a number of depositors had significant inflows towards the end of the quarter. It is likely these balances will normalize during the fourth quarter. The trend line for Deposit Growth remains positive.

• Net Interest Income of $4.8 million in the third quarter was up 4% over the second quarter of 2014. This growth was inflated somewhat by lack of Loan Loss Provision Expense in the third quarter versus $81 thousand taken in the second quarter. After normalizing this impact, Net Interest Income still grew by 2.6% during the quarter and was up by 16% over the same quarter in 2013.

• Operating Expenses increased 2% from the second quarter primarily due to increased Compensation Expense and the commencement of lease expense in September for the Bank’s new San Mateo Office.

• Net Income Applicable to Common Shareholders was $806 thousand for the quarter, an increase of 38% over the third quarter of 2013. Net Income Applicable to Common Shareholders was up 9% over the second quarter of 2014.

• As previously announced, the Bank completed a capital raise during the quarter, which consisted of $10 million of 8%, 10-year maturity, subordinated notes which it expects will count as Tier II capital. The debt is reflected on the September 30 balance sheet however, since it closed at the end of September, interest expense related to this debt was nominal for third quarter.

• Credit Quality remains strong. The Bank has just two borrowers classified as non-performing totaling $1.4 million. This represents just 0.34% of total loans outstanding. Loan Loss Reserves of $4.9 million cover non-performing loans 3.5 times. At September 30, 2014, the Bank had one past due loan totaling $2.1 million. That loan subsequently paid off in early October.

• Diluted Earnings per Common Share were $0.18 for the quarter compared to $0.17 in the second quarter of 2014 and $0.14 in the third quarter of 2013.

• Book Value per Share increased to $9.53 per share as of September 30, 2014 from $9.31 per share at June 30, 2014 and $8.74 per share at September 30, 2013.

“I am pleased that the Bank successfully raised $10 million in Tier II capital to help fund our next stage of growth as we continue to expand in the San Francisco Bay Area,” said Presidio Bank Chairman and Founder, Jim Woolwine. “As part of our growth strategy and capital planning, our Board of Directors conducts an ongoing review of our capital position and capital needs. As part of that review, we will continue to assess additional capital options, including a common equity capital raise in 2015 to enhance our Tier 1 capital.”

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*This bank may be too small ($500MM in assets) for Ford & Co. ?? never-the-less this bank is out looking to acquire other banks.

Marker:
Presidio Bank (san F (PDOB)
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