Presidio Bank (fka PDOB)

[56Chevy]

Presidio Bank Reports Net Income Growth of 29% for 2014

Date : 02/04/2015 @ 8:00AM
Source : Business Wire
Stock : Presidio Bank (san Francisco, Ca) (QB) (PDOB)
Quote : $12.30 0.0005 (0.00%) @ 4:37PM

Presidio Bank (OTCBB:PDOB), a Bay Area business bank, today reported unaudited results for the fourth quarter and full year ended December 31, 2014 with net income for the year of $3.1 million, up 29% from 2013. The fourth quarter was highlighted by $31 million in core deposit growth and $14 million in loan growth resulting in record levels in both categories. Total assets increased $32 million for the quarter and just under $100 million for the year.

“2014 was another solid year for the Bank,” said Presidio Bank President and CEO Steve Heitel. “The Bank continued to grow loans, deposits, net income and new relationships while successfully executing a shareholder-friendly capital raise and launching our fifth office.”

Financial Highlights

• Total Loans outstanding increased by $14 million or 3.6% over the quarter ended September 30, 2014 and increased $42 million or 11.3% for the full year.
• Total Deposits increased by $31 million or 6.9% from the quarter ended September 30, 2014 and increased by $85 million or 21% for 2014. A number of Bank depositors are holding balances that are temporarily inflated. We had anticipated that some of these balances would run-off in the fourth quarter of 2014. Instead these temporary balances increased during the quarter. We now expect these balances to decline to more normal levels in the first quarter of 2015.
• Net interest income of $4.9 million in the fourth quarter was up 3% over the third quarter of 2014. This increase resulted from loan growth and the recognition of interest income on a classified loan which paid off during the quarter which more than offset $210 thousand in interest expense incurred during the quarter on the Bank’s newly issued subordinated notes. Net Interest Income was up 17% for the year.
• Operating Expenses increased 6% from the third quarter primarily due to a full quarter’s lease expense on our new San Mateo Office, and higher professional fees due to recruitment expense for our new East Bay Market President. Operating Expenses were up 11% for the year.
• Net Income was $3.1 million, up 29% in 2014. Net income applicable to common shareholders was $2.8 million for the year, an increase of 47.6% over 2013 as dividends on preferred stock declined; a result of the partial repurchase of preferred shares executed in 2013.
• Credit quality remains strong with a classified loan to capital ratio of less than 5%. The Bank added $220 thousand to the Allowance For Loan Losses during the fourth quarter due to growth in the loan portfolio. No loan loss provision was recorded in 2013 or the third quarter of 2014. The Bank’s largest classified loan paid off in full during the quarter. Non-performing loans totaled $1.3 million at December 31, 2014 or 0.3% of total loans. The Allowance for Loan Losses of $5.2 million covers non-performing loans by almost four times.
• Diluted earnings per common share were $0.14 for the quarter compared to $0.18 in the third quarter of 2014 and $0.19 in the fourth quarter of 2013. EPS for the fourth quarter of 2013 included a $152,000 gain on the retirement of preferred stock.
• Book value per share increased to $9.74 per share as of December 31, 2014 from $9.53 per share at September 30, 2014 and $8.99 per share at December 31, 2013.

“The Bank continued to successfully execute its organic growth strategy in 2014,” said Presidio Bank Chairman and Founder, Jim Woolwine. “The addition of new capital, improvement in our already strong credit quality and successful opening of our San Mateo Office positions the Bank well for continued growth in 2015.”

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