LOS ANGELES--(BUSINESS WIRE)--Pacific City Financial Corporation (the “Company”) (PFCF.OB) today reported financial results for its 2013 third quarter, with consolidated net income of $11.9 million, or $0.47 per diluted earnings per share and net income available to common shareholders of $11.6 million, or $0.46 per diluted earnings per common share. Net income included pretax net income of $3.8 million, a 16.9% increase from $3.3 million in the second quarter of 2013, and a net tax benefit of $8.0 million resulting from the reversal of deferred tax assets (DTA) valuation allowance. Based primarily on multiple years of consecutive profits and continued credit improvements, the Company reversed the valuation allowance recorded against its DTA.
"We are extremely pleased to announce our record 2013 third quarter result, which was highlighted by the recognition of $8.0 million in reversal of Deferred Tax Valuation allowance, continued stabilization of credit quality, enhanced economy of scale and solid asset growth. Our core earnings continue to expand and going forward we are very optimistic on our capacity to continue to improve efficiency and take advantage of our growing economy of scale," said Haeyoung Cho, president and chief executive officer.
| 2013 Third Quarter Financial Highlights | |||||||||||||||||||||||
| (In thousands, except per share data) | |||||||||||||||||||||||
| As of or For the Three Months Ended | |||||||||||||||||||||||
| Sept 30, | June 30, | % | Sept. 30, | % | |||||||||||||||||||
| 2013 | 2013 | Change | 2012 | Change | |||||||||||||||||||
| Net Income | $ | 11,868 | $ | 3,279 | 262.0 | % | $ | 1,569 | 656.2 | % | |||||||||||||
| Net income w/o DTA | 3,868 | 3,279 | 18.0 | % | 1,569 | 146.5 | % | ||||||||||||||||
| Net income available to common shareholders | 11,560 | 2,978 | 288.1 | % | 1,266 | 812.8 | % | ||||||||||||||||
| Earnings per common share (basic) | 0.46 | 0.12 | 283.3 | % | 0.05 | 820.0 | % | ||||||||||||||||
| Net interest income | 6,893 | 6,548 | 5.3 | % | 5,701 | 20.9 | % | ||||||||||||||||
| Provision for loan loss | 271 | 556 | -51.3 | % | 3,009 | -91.0 | % | ||||||||||||||||
| Non-interest income | 2,617 | 2,689 | -2.7 | % | 3,293 | -20.5 | % | ||||||||||||||||
| Non-interest expense | 5,405 | 5,402 | 0.1 | % | 4,415 | 22.4 | % | ||||||||||||||||
| Total assets | 730,739 | 680,841 | 7.3 | % | 607,063 | 20.4 | % | ||||||||||||||||
| Loans receivable, net | 582,846 | 552,250 | 5.5 | % | 478,500 | 21.8 | % | ||||||||||||||||
| Total deposits | 639,942 | 602,887 | 6.1 | % | 536,518 | 19.3 | % | ||||||||||||||||
| Non-performing loans | 9,597 | 7,668 | 25.2 | % | 11,573 | -17.1 | % | ||||||||||||||||
| Return on average assets (ROA) | 6.85 | % | 1.97 | % | 247.7 | % | 1.07 | % | 540.2 | % | |||||||||||||
| ROA w/o DTA | 2.23 | % | 1.97 | % | 13.2 | % | 1.07 | % | 108.4 | % | |||||||||||||
| Return on average stockholders' equity (ROE) | 63.20 | % | 18.85 | % | 235.3 | % | 9.82 | % | 543.6 | % | |||||||||||||
| ROE w/o DTA | 20.60 | % | 18.85 | % | 9.3 | % | 9.82 | % | 109.8 | % | |||||||||||||
| Net interest margin | 4.09 | % | 4.02 | % | 1.7 | % | 3.94 | % | 3.8 | % | |||||||||||||
| Efficiency ratio | 56.84 | % | 58.48 | % | -2.8 | % | 49.09 | % | 15.8 | % | |||||||||||||
| Tangible common equity to tangible assets | 8.92 | % | 7.83 | % | 13.9 | % | 7.78 | % | 14.7 | % | |||||||||||||
| Tangible common equity per common share | $ | 2.59 | $ | 2.12 | 22.2 | % | $ | 1.88 | 37.8 | % | |||||||||||||
| Tier 1 leverage ratio | 11.93 | % | 10.70 | % | 11.5 | % | 10.88 | % | 9.7 | % | |||||||||||||
2013 THIRD QUARTER RESULTS OF OPERATION
Net interest income before provision for loan losses increased to $6.9 million for the third quarter of 2013 compared with $6.5 million for the second quarter of 2013. The increase was primarily due to the increase of $32.1 million in average balance of interest earning assets. Total interest expense of $1.1 million in the third quarter 2013 did not change from the second quarter 2013 despite an increase of $3.7 million in the balance of average interest bearing liabilities to $439.8 million from $436.1 million. Net interest margin increased 7 bps to 4.09% for the third quarter of 2013 compared with 4.02% for the second quarter of 2013.
Noninterest income for the third quarter 2013 was $2.6 million compared with $2.7 million for the second quarter 2013. The decrease was primarily due to the decreases of $267,000 in gain on sale of SBA loans, $44,000 in gain on sale of home mortgage loans, and $32,000 in loans servicing fees income.
Total noninterest expense for the third quarter 2013 remained at $5.4 million compared with the second quarter 2013. However, a decrease of $171,000 in our FDIC assessment expenses during the third quarter was offset by the increases of $52,000 in occupancy and fixed assets expenses, $61,000 in OREO related expenses, and $21,000 in employee salaries and benefit expenses.
Efficiency ratio improved to 56.84% in third quarter 2013 compared with 58.48% in the second quarter 2013 primarily due to an increase in net interest income.
The Company had reserved $4.9 million and $10.0 million in valuation allowance on deferred tax assets in 2009 and 2010, respectively. During the third quarter 2013, the Company reversed the remaining $8.0 million of DTA valuation allowance and recognized as income.
Net of TARP preferred stocks dividend and accretion expenses of $309,000 for the third quarter of 2013, net income available to common shareholders was $11.6 million.
ASSET QUALITY
At September 30, 2013, total nonperforming assets increased $2.0 million to $9.7 million compared with $7.7 million at June 30, 2013 primarily due to an increase of $2.0 million in non-performing loan and decreased $3.2 million compared with $12.9 million at September 30, 2012. During the third quarter 2013, the new inflow to non-accrual loans were $4.1 million, charged-off $1.5 million, sold $1.1 million with a net proceed of $700,000, and $52,000 were paid-off. As a result, the nonperforming assets to total assets ratio increased to 1.32% at September 30, 2013 from 1.14% at June 30, 2013 and decreased from 2.13% at September 30, 2012. The net value of OREO portfolio at September 30, 2013 remained at $85,000 compared with 2013 second quarter, but declined from $1.4 million at September 30, 2012.
LOAN AND DEPOSITS
Net loans receivable increased $30.5 million to $582.8 million at September 30, 2013 compared with $552.3 million at June 30, 2013 and increased $104.3 million compared with $478.5 million at September 30, 2012. During the third quarter we funded $107.8 million in new loans and recognized $38.7 million in paid-downs and paid-offs, sold $37.5 million, and charged-off $1.5 million. Of the $107.8 million new loans we funded during the 2013 third quarter, $25.1 million were SBA loans. Of the $25.1 million SBA loans we funded, $19.0 million were sold at net premium of $1.4 million, or 7.2%. We also funded $33.4 million in home mortgage loans, and sold $17.9 million of them at a net premium of $316,000.
Total deposit balance at September 30, 2013 increased $37.0 million to $639.9 million compared with $602.9 million at June 30, 2013. Demand deposits to total deposits ratio was 27.1% at September 30, 2013 compared with 27.3% at June 30, 2013. The Company's net loan-to-deposit ratio was 91.1% at September 30, 2013.
BALANCE SHEET SUMMARY & CAPITAL
Total assets at September 30, 2013 increased $49.9 million, or 7.33%, to $730.7 million compared with $680.8 million at June 30, 2013. The increase was primarily due to the increases of $30.6 million in net loans, $6.2 million in cash, $2.8 million in investment securities, the restoration of $8.8 million in net deferred tax assets,.
Total deposits at September 30, 2013 increased $37.1 million, or 6.15%, to $639.9 million compared with $602.9 million at June 30, 2013. The deposit mix is detailed in the table below.
| September 30, 2013 | June 30, 2013 | September 30, 2012 | |||||||||||||
| Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||
| Demand deposits | $ | 173,246 | 27.1 | % | $ | 164,727 | 27.3 | % | $ | 123,341 | 23.0 | % | |||
| Now accounts | 6,137 | 1.0 | % | 6,035 | 1.0 | % | 3,588 | 0.7 | % | ||||||
| Money market accounts | 111,298 | 17.4 | % | 102,471 | 17.0 | % | 106,182 | 19.8 | % | ||||||
| Savings | 29,316 | 4.6 | % | 27,259 | 4.5 | % | 23,404 | 4.4 | % | ||||||
| CD less than $100K | 92,387 | 14.4 | % | 87,292 | 14.5 | % | 104,064 | 19.4 | % | ||||||
| CD over $100K | 227,558 | 35.6 | % | 215,104 | 35.7 | % | 175,940 | 32.8 | % | ||||||
| Total deposits | $ | 639,942 | 100.0 | % | $ | 602,887 | 100.0 | % | $ | 536,518 | 100.0 | % | |||
Total shareholders' equity at September 30, 2013 increased to $82.1 million from $70.2 million at June 30, 2013. The increase was primarily due to the recognition of $11.9 million in net income during the third quarter offset by the TARP dividend accrual of $0.3 million.
The Company’s Tier 1 Leverage ratio improved to 11.93% at September 30, 2013 from 10.70% at June 30, 2013 and it continues to exceed the minimum regulatory guidelines for a "well-capitalized" institution.
REDEMPTION OF TARP CPP PREFERRED STOCKS
In December 2008, the Company participated in Troubled Asset Relief Program (TARP) and The United States Treasury (“UST”) purchased $16.2 million in Company’s preferred stock Series A of and immediately exercised the Series B Warrants of $810,000. The preferred stocks require quarterly dividend at an annual rate of 5.0% for Series A and 9.0% for Series B or approximately $883,000 per year for the first five years. The quarterly dividend payments have been in deferral since the August 2009. However, all unpaid dividend and the interest on the unpaid dividend has been fully accrued and reflected in our financial statements.
On November 19, 2013, the Company redeemed $8.7 million of the $16.2 million outstanding Series A shares along with its $2.2 million in unpaid dividend by participating and winning at an auction held by the UST. The preferred stocks were redeemed at a 2.9% discount to the liquidation value of $10.8 million. The redemption was financed entirely from the Company’s retained earnings. As a result of the auction, the remaining par value of $7.5 million in Series A and $810,000 in Series B preferred stocks along with $2.0 million in total unpaid dividends and interest on the unpaid dividend were transferred to private investors.
About Pacific City Financial Corporation
Headquartered in Los Angeles, California, Pacific City Financial Corporation is the parent company of Pacific City Bank, a full-service commercial bank with nine branches offices and six loan production offices in Lynwood and Bellevue, Washington, Chicago, Illinois, Annandale, Virginia, Atlanta, Georgia, and San Francisco, California. Pacific City Bank specializes in commercial banking for small to medium-size businesses by providing commercial real estate loans, small business loans and line of credit, trade finance loans, auto loans, residential mortgage loans, and SBA loans. Pacific City Bank serves a diverse customer base through its branches in the Greater Los Angeles Area and its Loan Production Offices in four States.
Safe Harbor Statement
This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.”
| Pacific City Financial Corporation | ||||||||||||||||||||||||
| Consolidated Balance Sheets (Unaudited) | ||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | ||||||||||||||||||||
| 2013 | 2013 | Change | 2012 | Change | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||||
| Cash & due from banks | $ | 59,309 | $ | 53,085 | 11.7 | % | $ | 81,353 | -27.1 | % | ||||||||||||||
| Investment Securities | 63,266 | 60,514 | 4.5 | % | 34,911 | 81.2 | % | |||||||||||||||||
| Loans receivable | ||||||||||||||||||||||||
| Real estate loans | 420,400 | 389,185 | 8.0 | % | 319,361 | 31.6 | % | |||||||||||||||||
| Commercial & industrial loans | 59,872 | 62,716 | -4.5 | % | 65,206 | -8.2 | % | |||||||||||||||||
| SBA loans | 76,559 | 74,003 | 3.5 | % | 64,863 | 18.0 | % | |||||||||||||||||
| Consumer & other | 40,263 | 41,476 | -2.9 | % | 42,770 | -5.9 | % | |||||||||||||||||
| Unearned fee/cost | 451 | 552 | -18.3 | % | 729 | -38.1 | % | |||||||||||||||||
|
Allowance for loans loss |
(14,700 | ) | (15,682 | ) | -6.3 | % | (14,430 | ) | 1.9 | % | ||||||||||||||
| Total net loans receivable | 582,846 | 552,250 | 5.5 | % | 478,500 | 21.8 | % | |||||||||||||||||
| Furnitures, equip & leasehold | 2,035 | 1,590 | 28.0 | % | 1,069 | 90.4 | % | |||||||||||||||||
| Net OREO | 85 | 85 | 0.0 | % | 1,374 | -93.8 | % | |||||||||||||||||
| Accrued interest receivables | 1,715 | 1,857 | -7.6 | % | 1,644 | 4.3 | % | |||||||||||||||||
| FHLB stock | 3,000 | 3,000 | 0.0 | % | 2,092 | 43.4 | % | |||||||||||||||||
| Deferred tax assets, net | 8,826 | 9 | 98318.7 | % | 9 | 98318.7 | % | |||||||||||||||||
| Excess service assets | 5,220 | 4,862 | 7.4 | % | 3,908 | 33.6 | % | |||||||||||||||||
| Others | 4,435 | 3,588 | 23.6 | % | 2,204 | 101.2 | % | |||||||||||||||||
| Total assets | $ | 730,739 | $ | 680,841 | 7.3 | % | $ | 607,063 | 20.4 | % | ||||||||||||||
| Liabilities | ||||||||||||||||||||||||
| Deposits | ||||||||||||||||||||||||
| Demand deposits | $ | 179,383 | $ | 170,761 | 5.0 | % | $ | 126,929 | 41.3 | % | ||||||||||||||
| Savings & MMDA | 140,614 | 129,730 | 8.4 | % | 129,585 | 8.5 | % | |||||||||||||||||
| Time deposits | 319,945 | 302,396 | 5.8 | % | 280,004 | 14.3 | % | |||||||||||||||||
| Total deposits | 639,942 | 602,887 | 6.1 | % | 536,518 | 19.3 | % | |||||||||||||||||
| Borrowings | 853 | 863 | -1.2 | % | 853 | 0.0 | % | |||||||||||||||||
| Accrued interest payable | 1,145 | 1,055 | 8.6 | % | 1,051 | 9.0 | % | |||||||||||||||||
| Other liabilities | 6,701 | 5,842 | 14.7 | % | 4,611 | 45.3 | % | |||||||||||||||||
| Total liabilities | 648,641 | 610,646 | 6.2 | % | 543,034 | 19.4 | % | |||||||||||||||||
| Capital | ||||||||||||||||||||||||
| Preferred stock & warrant | 16,947 | 16,913 | 0.2 | % | 16,802 | 0.9 | % | |||||||||||||||||
| Common stock | 68,702 | 68,702 | 0.0 | % | 68,702 | 0.0 | % | |||||||||||||||||
| Additional paid in capital | 2,247 | 2,206 | 1.9 | % | 2,147 | 4.7 | % | |||||||||||||||||
| Retained earnings | (5,016 | ) | (16,576 | ) | -69.7 | % | (24,016 | ) | -79.1 | % | ||||||||||||||
| OCI | (782 | ) | (1,051 | ) | -25.5 | % | 394 | -298.6 | % | |||||||||||||||
| Total capital | 82,098 | 70,195 | 17.0 | % | 64,029 | 28.2 | % | |||||||||||||||||
| Total liabilities & capital | $ | 730,739 | $ | 680,841 | 7.3 | % | $ | 607,063 | 20.4 | % | ||||||||||||||
| Pacific City Financial Corporation | ||||||||||||||||
| Consolidated Income Statements (Unaudited) | ||||||||||||||||
| (In thousands) | ||||||||||||||||
| Three Months Ended | ||||||||||||||||
| September 30 | June 30, | Percentage | September 30, | Percentage | ||||||||||||
| 2013 | 2013 | Change | 2012 | Change | ||||||||||||
| Interest income | ||||||||||||||||
| Interest and fees on loans | $ 7,703 | $ 7,380 | 4.4% | $ 6,566 | 17.3% | |||||||||||
| Interest on investments | 238 | 206 | 15.4% | 159 | 49.6% | |||||||||||
| Interest on others | 49 | 49 | -1.5% | 43 | 12.7% | |||||||||||
| Total interest income | 7,990 | 7,635 | 4.6% | 6,768 | 18.0% | |||||||||||
| Interest expenses | ||||||||||||||||
| Interest on deposits | 1,083 | 1,073 | 0.9% | 1,054 | 2.8% | |||||||||||
| Interest on borrowings | 13 | 13 | 1.1% | 13 | 0.0% | |||||||||||
| Total interest expenses | 1,097 | 1,087 | 0.9% | 1,067 | 2.7% | |||||||||||
| Net interest income | 6,893 | 6,548 | 5.3% | 5,701 | 20.9% | |||||||||||
| Provision for loan losses (PLL) | 271 | 556 | -51.3% | 3,009 | -91.0% | |||||||||||
| Net interest income after PLL | 6,622 | 5,992 | 10.5% | 2,691 | 146.0% | |||||||||||
| Non-interest income | ||||||||||||||||
| Gain on sale of SBA loans | 1,363 | 1,630 | -16.4% | 1,842 | -26.0% | |||||||||||
| Gain on sale of HM loans | 316 | 359 | -12.2% | 414 | -23.7% | |||||||||||
| Service charges on deposits | 356 | 335 | 6.2% | 396 | -10.1% | |||||||||||
| Loans servicing fees | 402 | 434 | -7.4% | 411 | -2.2% | |||||||||||
| Net gain (loss) on OREO | - | - | NA | (156) | -100.0% | |||||||||||
| Other | 181 | (69) | -361.9% | 386 | -53.1% | |||||||||||
| Total non-interest income | 2,617 | 2,689 | -2.7% | 3,293 | -20.5% | |||||||||||
| Non-interest expenses | ||||||||||||||||
| Employee salaries & benefits | 3,204 | 3,183 | 0.7% | 2,595 | 23.5% | |||||||||||
| Occupancies and fixed assets | 772 | 720 | 7.3% | 596 | 29.5% | |||||||||||
| Legal & professional | 341 | 337 | 1.3% | 249 | 36.9% | |||||||||||
| FDIC assessment | 49 | 221 | -77.6% | 187 | -73.5% | |||||||||||
| OREO expenses | 62 | 0 | 12296.7% | 38 | 62.1% | |||||||||||
| Loan related expenses | 161 | 106 | 51.5% | 84 | 92.7% | |||||||||||
| Others | 815 | 835 | -2.4% | 667 | 22.3% | |||||||||||
| Total non-interest expenses | 5,405 | 5,402 | 0.1% | 4,415 | 22.4% | |||||||||||
| Net income before tax | 3,834 | 3,279 | 16.9% | 1,569 | 144.3% | |||||||||||
| Income tax provision | (8,035) | - | NA | - | NA | |||||||||||
| Net income after tax | $ 11,868 | $ 3,279 | 261.96% | $ 1,569 | 656.25% | |||||||||||
| Dividend, accretion of disc, & int. on dividend | (309) | (301) | 2.8% | (303) | 1.95% | |||||||||||
| Net income available for common shareholders | $ 11,560 | $ 2,978 | 288.12% | $ 1,266 | 812.80% | |||||||||||
| Earnings (loss) per common shares | ||||||||||||||||
| Basic | $ 0.46 | $ 0.12 | 288% | $ 0.05 | 812% | |||||||||||
| Diluted | $ 0.46 | $ 0.12 | 288% | $ 0.05 | 809% | |||||||||||
| Average shares outstanding | ||||||||||||||||
| Basic | 25,119,003 | 25,119,003 | 25,119,003 | |||||||||||||
| Diluted | 25,162,214 | 25,150,412 | 25,119,003 | |||||||||||||
| Pacific City Financial Corporation | ||||||||||||||||||||
| Consolidated Income Statements (Unaudited) | ||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||
| Nine Months Ended | ||||||||||||||||||||
| September 30 | September 30, | Amount | Percentage | |||||||||||||||||
| 2013 | 2012 | Change | Change | |||||||||||||||||
| Interest income | ||||||||||||||||||||
| Interest and fees on loans | $ | 21,999 | $ | 19,373 | $ | 2,626 | 13.6 | % | ||||||||||||
| Interest on investments | 647 | 315 | 333 | 105.8 | % | |||||||||||||||
| Interest on others | 144 | 166 | (22 | ) | -13.2 | % | ||||||||||||||
| Total interest income | 22,790 | 19,854 | $ | 2,937 | 14.8 | % | ||||||||||||||
| Interest expenses | ||||||||||||||||||||
| Interest on deposits | 3,208 | 3,172 | 36 | 1.1 | % | |||||||||||||||
| Interest on borrowings | 40 | 205 | (165 | ) | -80.5 | % | ||||||||||||||
| Total interest expenses | 3,248 | 3,377 | (129 | ) | -3.8 | % | ||||||||||||||
| Net interest income | 19,542 | 16,477 | 3,065 | 18.6 | % | |||||||||||||||
| Provision for loan losses (PLL) | 1,400 | 5,507 | (4,108 | ) | -74.6 | % | ||||||||||||||
| Net interest income after PLL | 18,143 | 10,970 | 7,173 | 65.4 | % | |||||||||||||||
| Non-interest income | ||||||||||||||||||||
| Gain on sale of SBA loans | 4,277 | 4,528 | (251 | ) | -5.5 | % | ||||||||||||||
| Gain on sale of HM loans | 981 | 746 | 236 | 31.6 | % | |||||||||||||||
| Service charges on deposits | 1,031 | 1,181 | (150 | ) | -12.7 | % | ||||||||||||||
| Loans servicing fees | 1,213 | 1,107 | 106 | 9.6 | % | |||||||||||||||
| Net gain (loss) on OREO | (72 | ) | (165 | ) | 93 | |||||||||||||||
| Other | 460 | 1,051 | (592 | ) | -56.3 | % | ||||||||||||||
| Total non-interest income | 7,890 | 8,448 | (557 | ) | -6.6 | % | ||||||||||||||
| Non-interest expenses | ||||||||||||||||||||
| Employee salaries & benefits | 9,386 | 7,499 | 1,887 | 25.2 | % | |||||||||||||||
| Occupancies and fixed assets | 2,115 | 1,785 | 331 | 18.5 | % | |||||||||||||||
| Legal & professional | 891 | 745 | 147 | 19.7 | % | |||||||||||||||
| FDIC assessment | 497 | 549 | (52 | ) | -9.5 | % | ||||||||||||||
| OREO expenses | 116 | 266 | (149 | ) | -56.2 | % | ||||||||||||||
| Loan related expenses | 394 | 435 | (40 | ) | -9.3 | % | ||||||||||||||
| Others | 2,310 | 1,966 | 344 | 17.5 | % | |||||||||||||||
| Total non-interest expenses | 15,709 | 13,244 | 2,465 | 18.6 | % | |||||||||||||||
| Net income before tax | 10,324 | 6,173 | 4,151 | 67.2 | % | |||||||||||||||
| Income tax provision | (8,035 | ) | - | (8,035 | ) | NA | ||||||||||||||
| Net income after tax | $ | 18,359 | $ | 6,173 | $ | 12,186 | 197.40 | % | ||||||||||||
| Dividend, accretion of disc, & interest on dividend | (916 | ) | (899 | ) | (17 | ) | 1.9 | % | ||||||||||||
| Net income available for common shareholders | $ | 17,443 | $ | 5,274 | $ | 12,169 | 230.72 | % | ||||||||||||
| Earnings (loss) per common shares | ||||||||||||||||||||
| Basic | $ | 0.69 | $ | 0.21 | $ | 0.48 | 231 | % | ||||||||||||
| Diluted | $ | 0.69 | $ | 0.21 | $ | 0.48 | 231 | % | ||||||||||||
| Average shares outstanding | ||||||||||||||||||||
| Basic | 25,119,003 | 25,119,003 | ||||||||||||||||||
| Diluted | 25,162,214 | 25,119,003 | ||||||||||||||||||
| Non-performing loans (in thousands) | |||||||||||||||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | |||||||||||||||||||
| 2013 | 2013 | Change | 2012 | Change | |||||||||||||||||||
| Real estate loans | $ | 118 | $ | 1,429 | -91.8 | % | $ | 3,990 | -97.0 | % | |||||||||||||
| Commercial and industrial loans | 4,007 | 2,937 | 36.4 | % | 3,754 | 6.7 | % | ||||||||||||||||
| SBA loans | 3,593 | 3,262 | 10.1 | % | 3,788 | -5.1 | % | ||||||||||||||||
| Consumer loans & others | 1,879 | 40 | 4648.5 | % | 41 | 4482.8 | % | ||||||||||||||||
| $ | 9,597 | $ | 7,668 | 25.2 | % | $ | 11,573 | -17.1 | % | ||||||||||||||
| Non-performing assets (in thousands) | |||||||||||||||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | |||||||||||||||||||
| 2013 | 2013 | Change | 2012 | Change | |||||||||||||||||||
| Non-performing loans (NPL) | $ | 9,597 | $ | 7,668 | 25.2 | % | $ | 11,573 | -17.1 | % | |||||||||||||
| Non-performing TDR (included in NPL) | $ | 4,165 | $ | 4,350 | -4.3 | % | $ | 9,615 | -56.7 | % | |||||||||||||
| Gross loans | $ | 597,546 | $ | 567,932 | 5.2 | % | $ | 492,930 | 21.2 | % | |||||||||||||
| NPL/Gross loans | 1.61 | % | 1.35 | % | 19.0 | % | 2.35 | % | -31.6 | % | |||||||||||||
| OREO | $ | 85 | $ | 85 | 0.0 | % | $ | 1,374 | -93.8 | % | |||||||||||||
| Performing TDR | $ | 7,951 | $ | 7,534 | 5.5 | % | $ | 9,279 | -14.3 | % | |||||||||||||
| NPA (NPL+OREO) | $ | 9,682 | $ | 7,753 | 24.9 | % | $ | 12,947 | -25.2 | % | |||||||||||||
| Total assets | $ | 730,739 | $ | 680,841 | 7.3 | % | $ | 607,063 | 20.4 | % | |||||||||||||
| NPA (NPL+OREO)/Gross loans | 1.62 | % | 1.37 | % | 18.7 | % | 2.63 | % | -38.3 | % | |||||||||||||
| NPA (NPL+OREO)/Total assets | 1.32 | % | 1.14 | % | 16.4 | % | 2.13 | % | -37.9 | % | |||||||||||||
| Classified loans (in thousands) | |||||||||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | |||||||||||||
| 2013 | 2013 | Change | 2012 | Change | |||||||||||||
| Substandard (classified) | $ | 20,597 | $ | 21,225 | -3.0 | % | $ | 28,191 | -26.9 | % | |||||||
| Special mention | 8,879 | 5,662 | 56.8 | % | 5,839 | 52.1 | % | ||||||||||
| Total criticized | $ | 29,475 | $ | 26,886 | 9.6 | % | $ | 34,029 | -13.4 | % | |||||||
| Watch | $ | 7,194 | $ | 4,261 | 68.8 | % | $ | 8,549 | -15.8 | % | |||||||
| Total problem loans | $ | 36,670 | $ | 31,147 | 17.7 | % | $ | 42,578 | -13.9 | % | |||||||
| Classified assets (in thousands) | |||||||||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | |||||||||||||
| 2013 | 2013 | Change | 2012 | Change | |||||||||||||
| Classified assets | $ | 20,682 | $ | 21,310 | -2.9 | % | $ | 29,564 | -30.0 | % | |||||||
| Classified loans/Gross loans | 3.45 | % | 3.74 | % | -7.8 | % | 5.72 | % | -39.7 | % | |||||||
| Classified + Mention/Gross loans | 4.93 | % | 4.73 | % | 4.2 | % | 6.90 | % | -28.5 | % | |||||||
| Classified + Mention + Watch/Gross loans | 6.14 | % | 5.48 | % | 11.9 | % | 8.64 | % | -29.0 | % | |||||||
| Tier 1 + ALLL | $ | 96,736 | $ | 86,927 | 11.3 | % | $ | 78,065 | 23.9 | % | |||||||
| Classified loan/Tier 1 + ALLL | 21.29 | % | 24.42 | % | -12.8 | % | 36.11 | % | -41.0 | % | |||||||
| Classified assets/Tier 1 + ALLL | 21.38 | % | 24.51 | % | -12.8 | % | 37.87 | % | -43.5 | % | |||||||
|
Capital ratios |
|||||||||||
| September 30, | June 30, | Percentage | September 30, | Percentage | |||||||
| 2013 | 2013 | Change | 2012 | Change | |||||||
| Tier 1 leverage ratio | 11.93% | 10.70% | 11.5% | 10.88% | 9.7% | ||||||
| Tier 1 risk-based ratio | 14.37% | 13.31% | 8.0% | 13.60% | 5.7% | ||||||
| Total risk-based ratio | 15.64% | 14.58% | 7.3% | 14.91% | 4.9% | ||||||
| Common equity for common shares | $ 2.59 | $ 2.12 | 22.2% | $ 1.88 | 37.8% | ||||||
| Pacific City Financial Corporation | ||||||||||||||||||||||||||||
| Average Balance, Average Yield, and Average Rate | ||||||||||||||||||||||||||||
| (In thousands) | ||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||
| September 30, 2013 | June 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||
| Interest | Average | Interest | Average | Interest | Average | |||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||
| Assets | ||||||||||||||||||||||||||||
| Interest-earning assets: | ||||||||||||||||||||||||||||
| Gross loans, net of deferred loan fees | $ 581,215 | $ 7,703 | 5.26% | $ 558,127 | $ 7,379 | 5.30% | $ 481,320 | $ 6,566 | 5.43% | |||||||||||||||||||
| US government agencies | 2,764 | 16 | 2.28% | 2,525 | 14 | 2.21% | 2,023 | 11 | 2.26% | |||||||||||||||||||
| Mortgage backed securities | 29,585 | 108 | 1.46% | 24,266 | 91 | 1.50% | 13,115 | 79 | 2.40% | |||||||||||||||||||
| Collaterized mortgage obligation | 30,634 | 112 | 1.47% | 27,201 | 99 | 1.45% | 14,160 | 67 | 1.88% | |||||||||||||||||||
| Muni bonds | 246 | 2 | 3.66% | 251 | 2 | 3.58% | 255 | 2 | 3.53% | |||||||||||||||||||
| Interest bearing deposit & others | 21,379 | 13 | 0.25% | 38,344 | 24 | 0.25% | 64,276 | 41 | 0.25% | |||||||||||||||||||
| Total interest earning assets | $ 665,823 | $ 7,954 | 4.79% | $ 650,714 | $ 7,609 | 4.69% | $ 575,149 | $ 6,766 | 4.68% | |||||||||||||||||||
| Noninterest-earning assets: | ||||||||||||||||||||||||||||
| Cash and cash equivalents | $ 18,608 | $ 18,108 | $ 14,046 | |||||||||||||||||||||||||
| Allowances for loan losses | (15,454) | (15,569) | (15,561) | |||||||||||||||||||||||||
| Other assets | 18,003 | 12,722 | 11,686 | |||||||||||||||||||||||||
| Total noninterest-earning assets | $ 21,157 | $ 15,261 | $ 10,171 | |||||||||||||||||||||||||
| Total assets | $686,980 | $665,975 | $ 585,320 | |||||||||||||||||||||||||
| Liabilities and Stockholders' Equity | ||||||||||||||||||||||||||||
| Interest-bearing liabilities: | ||||||||||||||||||||||||||||
| Deposits: | ||||||||||||||||||||||||||||
| Money market & NOW accounts | $ 110,492 | $ 205 | 0.74% | $ 109,198 | $ 204 | 0.75% | $ 102,317 | $ 208 | 0.82% | |||||||||||||||||||
| Savings | 27,924 | 204 | 2.90% | 26,231 | 193 | 2.95% | 22,686 | 171 | 3.04% | |||||||||||||||||||
| Time deposits less than $100K | 85,181 | 232 | 1.08% | 89,608 | 227 | 1.02% | 105,738 | 308 | 1.17% | |||||||||||||||||||
| Time deposits $100K or more | 216,194 | 442 | 0.81% | 211,032 | 450 | 0.85% | 164,146 | 367 | 0.90% | |||||||||||||||||||
| Total interest-bearing deposits | $ 439,791 | $ 1,083 | 0.98% | $ 436,069 | $ 1,073 | 0.99% | 394,887 | 1,054 | 1.07% | |||||||||||||||||||
| Borrowings: | ||||||||||||||||||||||||||||
| Fed fund purchases | $ - | $ - | NA | $ - | $ - | NA | $ - | $ - | NA | |||||||||||||||||||
| FHLB & FRB borrowings | - | - | NA | - | - | NA | - | - | NA | |||||||||||||||||||
| Other borrowings-loan sold with recorse | - | - | NA | - | - | NA | - | - | NA | |||||||||||||||||||
| Subordinated debentures | 853 | 13 | 6.25% | 853 | 13 | 6.04% | 853 | 13 | 6.27% | |||||||||||||||||||
| Total borrowings: | $ 853 | $ 13 | 6.25% | $ 853 | $ 13 | 6.04% | $ 853 | $ 13 | 6.27% | |||||||||||||||||||
| Total interest-bearing liabilities | $ 440,644 | $ 1,097 | 0.99% | $ 436,922 | $ 1,086 | 1.00% | $ 395,740 | 1,067 | 1.07% | |||||||||||||||||||
| Noninterest-bearing liabilities: | ||||||||||||||||||||||||||||
| Demand deposits | $ 164,377 | $ 152,842 | $ 120,423 | |||||||||||||||||||||||||
| Other liabilities | 7,452 | 6,453 | 5,579 | |||||||||||||||||||||||||
| Total noninterest-bearing liabilities | $ 171,830 | $ 159,295 | $ 126,002 | |||||||||||||||||||||||||
| Total liabilities | $ 612,474 | $ 596,217 | $ 521,742 | |||||||||||||||||||||||||
| Stockholders' equity | $ 74,506 | $ 69,758 | $ 63,578 | |||||||||||||||||||||||||
| Total liabilities and stockholders' | ||||||||||||||||||||||||||||
| Equity | $686,980 | $665,975 | $ 585,320 | |||||||||||||||||||||||||
| Net interest income | $ 6,858 | $ 6,523 | $ 5,698 | |||||||||||||||||||||||||
| Cost of deposits | 0.72% | 0.74% | 0.82% | |||||||||||||||||||||||||
| Net interest spread | 3.81% | 3.70% | 3.61% | |||||||||||||||||||||||||
| Net interest margin | 4.09% | 4.02% | 3.94% | |||||||||||||||||||||||||
| Pacific City Financial Corporation | |||||||||||||||||||||||||||
| Average Balance, Average Yield, and Average Rate | |||||||||||||||||||||||||||
| (In thousands) | |||||||||||||||||||||||||||
| Nine Month Ended | |||||||||||||||||||||||||||
| September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||
| Interest | Average | Interest | Average | ||||||||||||||||||||||||
| Average | Income/ | Yield/ | Average | Income/ | Yield/ | ||||||||||||||||||||||
| Balance | Expense | Rate | Balance | Expense | Rate | ||||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||
| Interest-earning assets: | |||||||||||||||||||||||||||
| Gross loans, net of deferred loan fees | $ | 550,722 | $ | 21,998 | 5.34 | % | $ | 463,633 | $ | 19,373 | 5.58 | % | |||||||||||||||
| US government agencies | 2,431 | 41 | 3.36 | % | 1,017 | 17 | 3.38 | % | |||||||||||||||||||
| Mortgage backed securities | 24,278 | 281 | 2.31 | % | 8,168 | 161 | 3.95 | % | |||||||||||||||||||
| Collaterized mortgage obligation | 28,996 | 319 | 2.20 | % | 9,213 | 130 | 2.81 | % | |||||||||||||||||||
| Muni bonds | 250 | 7 | 5.41 | % | 255 | 7 | 5.29 | % | |||||||||||||||||||
| Interest bearing deposit & others | 38,265 | 71 | 0.37 | % | 84,999 | 155 | 0.36 | % | |||||||||||||||||||
| Total interest earning assets | $ | 644,941 | $ | 22,717 | 4.71 | % | $ | 567,284 | $ | 19,842 | 4.67 | % | |||||||||||||||
| Noninterest-earning assets: | |||||||||||||||||||||||||||
| Cash and cash equivalents | $ | 17,482 | $ | 13,382 | |||||||||||||||||||||||
| Allowances for loan losses | (15,284 | ) | (15,266 | ) | |||||||||||||||||||||||
| Other assets | $ | 14,086 | 11,340 | ||||||||||||||||||||||||
| Total noninterest-earning assets | $ | 16,284 | $ | 9,456 | |||||||||||||||||||||||
| Total assets | $ | 661,225 | $ | 576,740 | |||||||||||||||||||||||
| Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||
| Interest-bearing liabilities: | |||||||||||||||||||||||||||
| Deposits: | |||||||||||||||||||||||||||
| Money market & NOW accounts | $ | 107,795 | $ | 606 | 0.75 | % | $ | 95,044 | $ | 592 | 0.83 | % | |||||||||||||||
| Savings | 26,441 | 585 | 2.96 | % | 20,943 | 494 | 3.14 | % | |||||||||||||||||||
| Time deposits less than $100K | 90,018 | 718 | 1.07 | % | 112,400 | 974 | 1.15 | % | |||||||||||||||||||
| Time deposits $100K or more | 207,178 | 1,300 | 0.84 | % | 163,789 | 1,112 | 0.90 | % | |||||||||||||||||||
| Total interest-bearing deposits | $ | 431,432 | $ | 3,208 | 0.99 | % | $ | 392,176 | $ | 3,172 | 1.08 | % | |||||||||||||||
| Borrowings: | |||||||||||||||||||||||||||
| Fed fund purchases | $ | - | $ | - | NA | $ | - | $ | - | NA | |||||||||||||||||
| FHLB & FRB borrowings | - | - | NA | - | - | NA | |||||||||||||||||||||
| Other borrowings-loan sold with recorse | - | - | NA | 3,915 | 165 | 5.63 | % | ||||||||||||||||||||
| Subordinated debentures | 853 | 40 | 6.27 | % | 853 | 40 | 6.26 | % | |||||||||||||||||||
| Total borrowings: | $ | 853 | $ | 40 | 6.27 | % | $ | 4,768 | $ | 205 | 5.74 | % | |||||||||||||||
| Total interest-bearing liabilities | $ | 432,285 | $ | 3,248 | 1.00 | % | $ | 396,944 | $ | 3,377 | 1.14 | % | |||||||||||||||
| Noninterest-bearing liabilities: | |||||||||||||||||||||||||||
| Demand deposits | $ | 151,713 | $ | 113,061 | |||||||||||||||||||||||
| Other liabilities | 7,567 | 10,032 | |||||||||||||||||||||||||
| Total noninterest-bearing liabilities | $ | 159,280 | $ | 123,093 | |||||||||||||||||||||||
| Total liabilities | $ | 591,565 | $ | 520,036 | |||||||||||||||||||||||
| Stockholders' equity | $ | 70,554 | $ | 61,472 | |||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 662,119 | $ | 581,509 | |||||||||||||||||||||||
| Net interest income | $ | 19,469 | $ | 16,465 | |||||||||||||||||||||||
| Cost of deposits | 0.74 | % | 0.88 | % | |||||||||||||||||||||||
| Net interest spread | 3.72 | % | 3.59 | % | |||||||||||||||||||||||
| Net interest margin | 4.04 | % | 3.88 | % | |||||||||||||||||||||||
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