Pan Pacific Bank (fka PPFC)

[Enterprising Investor]

Pan Pacific BankAnnounces Financial Results for June
30, 2015, StrongGrowth with Improved Core Earnings (7/23/15)

FREMONT, Calif.--(BUSINESS WIRE)--Pan Pacific Bank (OTCBB:PPFC) today announced its unaudited financial results for the period ended June 30, 2015, including total assets of $147.1 million, net loans of $111.9 million and deposits of $124.7 million. Pre tax earnings for the three and six months ended June 30, 2015 were $206 thousand and $388 thousand, respectively, compared to $114 thousand and $191 thousand, respectively, for the same periods in 2014.

“We planned for continued growth in 2015 and are excited to see that strategy producing results,” said Wayne Doiguchi, Chief Executive Officer of Pan Pacific Bank, “Growing into our expanded infrastructure has been instrumental in achieving improved core earnings while maintaining excellent asset quality and strong capital levels. Our presence and relationship building in the San Jose market has combined with the continued success in Fremont and Alameda County to make this a promising year for the Bank.”

The following are Bank highlights for the Quarter ended June 30, 2015:

• Year over year total assets increased $36.8 million or 33.4% and $27.0 million or 22.5% from year end 2014.

• Year over year net loans increased $29.2 million or 34.6% and $25.2 million or 28.5% from year end 2014.

• Year over year total deposits increased $36.4 million or 41.3% and $25.2 million or 25.3% from year end 2014.

• Year-to-Date charge offs, net of (recoveries) were ($10.4) thousand, which represents (0.01%) of average loans.

• Year over year non-performing loans decreased from $415 thousand to $358 thousand. At June 30, 2015, non-performing loans were 0.32% as a percent of total gross loans and 0.24% as a percent of total assets.

• Regulatory capital ratios remain strong at 13.83%, 12.57%, 12.57% and 11.90% for Total Risked Based, Tier 1 Risk Based, Common Equity Tier I and Tier 1 Leverage, respectively.

• Pre tax earnings for the three months ended June 30, 2015 were $206 thousand compared to $114 thousand in the same period for 2014. For the six months ended June 30, 2015, pre-tax earnings were $388 thousand compared to $191 thousand in the same period for 2014. That’s an improvement of 80.7% and 103.1%, respectively, for the three and six months ended June 30, 2015 compared to the same periods in 2014.

• After tax earnings for the three months ended June 30, 2015 were $123 thousand compared to $2.9 million in the same period for 2014. For the six months ended June 30, 2015, after tax earnings were $228 thousand compared to $2.9 million in the same period for 2014. During the second quarter of 2014, Bank management determined that it was more likely than not that the deferred tax asset (DTA) would be realized. Therefore, the second quarter tax expense in 2014 included a benefit or income of $2,740,245 related to the reversal of the valuation allowance for deferred tax assets.

• Maintained a very favorable YTD and QTD Net Interest Margin of 4.15% and 4.11%, respectively.

Stockholders’ equity increased $236 thousand, or 1.3%, to $18.1 million at June 30, 2015 compared with $17.9 million at December 31, 2014. This increase was due to net earnings of $228 thousand, $57 thousand in stock option related items, minus $49 thousand net change in other comprehensive income. Tangible book value was $3.63 at June 30, 2015 and $3.58 at December 31, 2014.

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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