Pan Pacific Bank (fka PPFC)

[Enterprising Investor]

Pan Pacific Bank Announces 2014 as Year of Growth, Continued Profitability (2/05/15)

FREMONT, Calif.--(BUSINESS WIRE)--Pan Pacific Bank (OTCBB: PPFC) today announced its unaudited financial results for the year ended December 31, 2014, including total assets of $120.1 million, net loans of $86.7 million and deposits of $99.5 million. “Pan Pacific Bank is pleased to report a year of progress and profitability. Total assets, net loans and total deposits grew 9.3%, 13.7% and 9.3%, respectively, on a year over year basis,” said Wayne Doiguchi, Pan Pacific Bank’s CEO. “For the quarter ended December 31, 2014 and the same period in 2013, net after tax earnings were $63 thousand and $99 thousand, respectively. For the years ended 2014 and 2013, net after tax earnings were $3,049 thousand and $254 thousand, respectively. During 2014, Bank management determined that it is more likely than not that the deferred tax asset (DTA) will be realized. Therefore, the second quarter and fourth quarter tax expense includes a benefit or income of $2,740 thousand and $117 thousand, respectively related to the reversal of the valuation allowance for deferred tax assets.”

Doiguchi added: “The Bank has now been profitable for three consecutive years. We have had a very busy year and experienced notable growth while maintaining very strong asset quality and capital levels. Even with the significant increase we’ve experienced in loans, we continue to have a robust loan pipeline.” He went on to say, “We also had our first franchise expansion with the opening of our San Jose office in October 2014. We look forward to building our base of business in this dynamic market with the support of our new local Director Sally Pera and Chief Credit Officer Dick Hagarty. With this expansion we have also strengthened our management team by adding Genelle Wrzesinski as Operations Administrator. The Bank is poised to grow within the new infrastructure.”

The following are Bank highlights for the quarter ended December 31, 2014:

• Year-over-year Book Value increased from $2.94 to $3.58 per share.

• Year-over-year total assets increased $10.2 million or 9.3%.

• Year-over-year net loans increased $10.4 million or 13.7%.

• Year-over-year total deposits increased $8.5 million or 9.3%.

• For the twelve months ending December 31, 2014, recoveries, net of charge offs were $11.7 thousand.

• At December 31, 2014, non-performing loans were $384 thousand or 0.43% as a percent of total gross loans and 0.32% as a percent of total assets.

• Regulatory capital ratios remained strong at 17.15%, 15.89% and 12.67% for Total Risk Based, Tier 1 Risk Based and Tier 1 Leverage, respectively.

• Positive net earnings of $3,049 thousand or $0.61 per diluted share for the year ended December 31, 2014, compared to $254 thousand or $0.05 per diluted share for the same period in 2013.

• Year-over-year reduced the cost of interest bearing deposits and cost of funds by 7 basis points and 9 basis points, respectively.

• For the quarter and year ended December 31, 2014, maintained a very favorable Net Interest Margin of 3.94% and 3.99%, respectively.

Stockholders’ equity increased $3,369 thousand, or 23.3%, to $17.8 million at December 31, 2014, compared with $14.5 million at December 31, 2013. This increase was due to earnings of $3,049 thousand, $120 thousand in stock option related items, plus $200 thousand net change in other comprehensive income. Book value was $3.58 at December 31, 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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