Exhibit 99.1
FIRST PACTRUST BANCORP, INC. ANNOUNCES
3rd QUARTER RESULTS
NOVEMBER 10, 2011
November 10, 2011 — Chula Vista, California —First PacTrust Bancorp, Inc. (“Bancorp” or the “Company”) (Nasdaq: BANC), the holding company for Pacific Trust Bank (“the Bank”), announced today results for the third quarter of 2011. The Company earned net income of $0.6 million and net income to common of $0.5 million for the quarter ending September 31, 2011. Core earnings1 for the quarter stood $1.1 million or $0.10 per share of common stock, which excludes $0.5 million of non-core transaction related expenses, on an after tax basis, including change of control payments and professional fees related to acquisition activity. The Company experienced a reduction in the level of non-performing loans, net of specific valuation allowances, of $5.9 million or 41.4%, to $8.3 million or 1.19% of total gross loans at September 30, 2011. Classified loans fell to $29.8 million, a decline of 16.2%. Meanwhile, third quarter 2011 pre-tax pre-provision income, adjusted for OREO charges1, increased to $3.3 million from $2.8 million, linked quarters, driven primarily by a $24 million increase the Bank’s loan portfolio, a $26 million increase in the Bank’s total deposits and a five basis point expansion in the Bank’s net interest margin.
“I am proud of the tremendous steps we have made to grow the business while continuing to deliver positive net income and a secure, growing dividend. We continue to make solid progress in building a high quality community banking franchise and producing sustainable core earnings. I am particularly proud of the significant progress we have made cleaning up our existing loan portfolio while increasing our origination volumes and deposit franchise,” said Greg Mitchell, Bancorp President and CEO.
THIRD QUARTER 2011 HIGHLIGHTS:
Earnings Fundamentals
Bancorp reported net income of $0.6 million and net income available to common shareholders of $0.5 million for the quarter ending September 30, 2011. Earnings per common share was $0.04. Pre-tax-pre-provision profit1 of $3.3 million, compared to linked quarter profit of $2.8 million, adjusted for OREO valuation allowances and losses on sale of OREO.
Bancorp’s subsidiary, Pacific Trust Bank, earned net income of $1.6 million for the third quarter, or 0.72% of average assets on an annualized basis. The Bank remained well-capitalized reporting third quarter Tier-1, Tier-1 Risk Based and Total Risk-Based capital ratios of 14.33%, 19.68% and 20.73% as of September 30, 2011, respectively.
Bancorp’s net interest margin increased five basis points from 3.56% for the quarter ending June 30, 2011, to 3.61% for the quarter ended September 30, 2011. The Bank’s cost of funds fell twelve basis points from 0.88% for the quarter ending June 30, 2011 to 0.76% for the quarter ending September 30, 2011. The cost of deposits improved by three basis points (4.1%) falling from 0.74% for the quarter ending June 30, 2011 to 0.71% for the quarter ending September 30, 2011. The improvement in cost of funds was offset by a twelve basis point reduction in the average yield on the Bank’s earnings assets principally due to the decline of 0.87% in the yield on securities from 5.37% during the second quarter 2011 to 4.50% during the third quarter 2011. Notably, the Company experienced a five basis point increase in loan yields from 4.52% for the quarter ending June 30, 2011 to 4.57% for the quarter ending September 30, 2011. This expansion was due largely to higher levels of interest income from new lending initiatives which began funding during the second quarter 2011, as well as the conversion of non-earning assets and recovery of previously reversed interest income on loans that were delinquent more than 90 days. During the quarter, the Bank added $824 thousand to its provision for loan losses largely related to increased volume of loans and the establishment of additional specific allowance allocations for performing TDRs and other impaired loans.
Third quarter 2011 earnings were impacted by (1) $244 thousand in change-in-control payments related to the 2010 Private Placement, (2) $475 thousand in professional fees associated with acquisitions and other non-core activities; and (3) $1,434 thousand in OREO related charges and valuation allowances.
Asset Quality:
| | • | | Non-performing loans decreased by $5.9 million or 41.4%, to $8.3 million as of September 30, 2011 from $14.2 million as of June 30, 2011, or 1.2% and 2.1% of gross loans, respectively. |
| 1 | - See Section on Non-GAAP Financial Information |
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| | • | | Total classified loans, defined as loans rated Loss, Doubtful or Substandard, decreased by $5.7 million, or 16.1%, from $35.5 million as of June 30, 2011, to $29.8 million as of September 30, 2011. |
| | • | | Loans delinquent 60 - 89 days decreased $1.4 million during the three months ended September 30, 2011, and declined by $7.3 million, or 73.6%, from $9.9 million as of December 31, 2010 to $2.6 million as of September 30, 2011. |
| | • | | OREO increased $5.5 million to $20.6 million as of September 30, 2011 when compared to $15.0 million as of June 30, 2011, or 2.2% and 1.7% of total assets, respectively. |
| | • | | Total nonperforming assets remained at 3.1% of total assets as of September 30, 2011. |
| | • | | The allowance for loan losses increased from $8.4 million, or 1.2% of loans as of June 30, 2011, to $9.0 million, or 1.3% of loans, as of September 30, 2011. The increase in the allowance resulted largely from increased loan production and the establishment of additional specific allowance allocations for performing TDRs and other impaired loans. |
Balance sheet and liquidity:
| | • | | Total assets increased by $46.7 million (5.3%) for the three month period ended September 30, 2011. |
| | • | | Loans, net of allowance, totaled $696 million at September 30, 2011, compared to $672 million at June 30, 2011. Loan originations during the third quarter of 2011 increased to $68.7 million compared to $31.9 million in the second quarter of 2011 as the Bank saw increased production volume from its commercial real estate and residential lending programs during the third quarter. The average note rate on loans funded in the third quarter was 5.14%. |
| | • | | Securities available-for-sale at September 30, 2011 totaled $64.9 million compared to $74.6 million at June 30, 2011. |
| | • | | Total deposits were $711.6 million as of September 30, 2011. Total deposit balances grew by $25.7 million (3.7%) for the three month period ended September 30, 2011. The opening of the La Jolla and San Marcos branches accounted for approximately $15 million of growth during the third quarter. |
| | • | | The Bank opened its newest branch in Century City, CA on October 20, 2011. The Bank expects to open a Santa Monica, CA branch in early 2012. The Bank also signed a lease for a branch in Tustin, CA, which is anticipated to open in early 2012. |
Dividend:
| | • | | Bancorp increased its quarterly dividend to $0.115 per share, its fourth consecutive quarterly dividend increase. |
Other Events
| | • | | On July 27, 2011, the Company announced that the underwriters of the registrant’s public offering of voting common stock partially exercised their overallotment option, resulting in the issuance of an additional 35,000 shares. |
| | • | | On August 30, 2011, Bancorp announced that it received an investment of $32.0 million in its preferred stock from the U.S. Treasury Department under the Small Business Lending Fund. |
| | • | | On August 30, 2011, the Company announced that it has entered into an agreement to acquire Beach Business Bank. |
| | • | | On September 28, 2011, the Company announced a change in its NASDAQ ticker symbol to “BANC” effective October 3, 2011. |
| | • | | On September 28, 2011, the Company announced the retirement of James Sheehy triggering a change in control payment of $244,534 and the appointment of Richard Herrin as successor Corporate Secretary. |
CONFERENCE CALL INFORMATION
First PacTrust Bancorp, Inc. will host an earnings conference call at 10:00 a.m. PST (1:00 p.m. EST) on November 10, 2011, to discuss third quarter 2011 results as well as other matters. To access the conference call, please dial (866) 509-2785. The related presentation slides in PDF format will be available in the Annual Reports & Presentations section of the Company’s Investor Relations Web site atwww.firstpactrustbancorp.com.
For those unable to participate in the conference call, a recording of the call will be archived on the investor relations page of First PacTrust Bancorp’s website atwww.firstpactrustbancorp.com for 90 days following the presentation.
First PacTrust Bancorp, Inc. is the parent holding company of Pacific Trust Bank and is headquartered in Chula Vista, California. Pacific Trust Bank provides a full range of banking products and services designed for small- to mid-sized businesses and their owners, real estate professionals and individuals interested in a comprehensive relationship with their financial institution.
Pacific Trust Bank began operations in 1941 and has since grown to $909 million assets as of September 30, 2011. The financial institution is now the largest federally chartered community bank headquartered in San Diego County, currently with 12 offices primarily serving San Diego, Riverside and Los Angeles counties. The Bank provides customers with the convenience of banking at more than 4,400 branch locations throughout the United States as part of the CU Services Network and 28,000 fee-free ATM locations through the CO-OP ATM Network
Additional information concerning First PacTrust Bancorp, Inc. can be accessed atwww.firstpactrustbancorp.com.
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Non-GAAP Financial Information:
This presentation contains certain financial information determined by methods other than in accordance with accounting principles generally accepted in the United States (“GAAP”). These non-GAAP financial measures include pre-tax pre-provision income and core earnings.
Pre-tax pre-provision profit is total revenue less non-interest expense and pre-tax pre-provision profit , adjusted for OREO charges, is total revenue less non-interest expense plus OREO-valuation allowance plus loss on sale of OREO. Management believes that these two additional non-GAAP financial measures are useful because it enables investors and other to assess the Company’s ability to generate capital to cover losses through a credit cycle. Management also believes that core earnings is a useful measure of assessing our operating performance.
Reconciliations of the non-GAAP measures to the comparable GAAP measures are provided below.
The following table presents a reconciliation of core earnings to net income (dollars in thousands):
| | | | |
| | | 9/30/11 | |
Net income | | $ | 644 | |
Add: Non-core change of control payment (net of tax) | | | 155 | |
Add: Non-core professional service & other expense (net of tax) | | | 302 | |
| | | | |
Core earnings | | $ | 1,101 | |
Less: Preferred dividend | | | 138 | |
| | | | |
Core earnings to common | | $ | 963 | |
| | | | |
The following table presents a reconciliation of pre-tax pre-provision income to net income (dollars in thousands):
| | | | | | | | |
| | | 6/30/2011 | | | 9/30/2011 | |
Net income | | $ | 1,549 | | | $ | 644 | |
Add: Income tax expense (benefit) | | | 644 | | | | 368 | |
Add: Provision for loan losses | | | 451 | | | | 823 | |
| | | | | | | | |
Pre-tax pre-provision income | | $ | 2,644 | | | $ | 1,835 | |
Add: OREO-valuation allowance | | | 137 | | | | 1,329 | |
Add: Loss on sale of OREO | | | 51 | | | | 105 | |
| | | | | | | | |
Pre-tax pre-provision income, adjusted for OREO charges | | $ | 2,832 | | | $ | 3,269 | |
| | | | | | | | |
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Statements contained in this news release that are not historical facts may constitute forward-looking statements (within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended), which involve significant risks and uncertainties. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of invoking these safe harbor provisions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on the operations and future prospects of the Company and the subsidiaries include, but are not limited to, changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. Government, including the U.S. Treasury and the Federal Reserve Board, the quality or composition of the Company’s loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, the possible short-term dilutive effect of potential acquisitions and accounting principles, policies and guidelines. These risks and uncertainties should be considered in evaluating forward looking statements and undue reliance should not be placed on such statements.
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SELECTED DETAIL ON CHANGES IN LOAN QUALITY AND RISK
Non-performing Loans. The following table is a summary of our nonperforming assets, net of specific valuation allowances. This table does not include all loans on nonaccrual or loans past due over 90 days that are on accrual. The information presented is for September 30, 2011 and December 31, 2010 (dollars in thousands):
| | | | | | | | | | | | | | | | |
| | | At December 31,
2010 | | | Increases(2) | | | Decreases(3) | | | At Sept 30,
2011 | |
Nonperforming loans(1) | | | | | | | | | | | | | | | | |
Commercial: | | | | | | | | | | | | | | | | |
Commercial and industrial | | $ | — | | | $ | 485 | | | $ | (485 | ) | | $ | — | |
Real estate mortgage | | | — | | | | — | | | | — | | | | — | |
Multi-family | | | — | | | | 3,677 | | | | (3,677 | ) | | | — | |
Real estate construction | | | — | | | | — | | | | — | | | | — | |
Land | | | 7,581 | | | | 2,876 | | | | (8,550 | ) | | | 1,907 | |
Consumer: | | | | | | | | | | | | | | | | |
Real estate 1-4 family first mortgage and green | | | 12,330 | | | | 19,065 | | | | (24,965 | ) | | | 6,430 | |
Real estate 1-4 family junior lien mortgage and green | | | — | | | | 66 | | | | (66 | ) | | | — | |
Other revolving credit and installment | | | 2 | | | | 1,112 | | | | (1,109 | ) | | | 5 | |
| | | | | | | | | | | | | | | | |
Total nonperforming loans | | $ | 19,913 | | | $ | 27,281 | | | $ | (38,852 | ) | | $ | 8,342 | |
Other real estate owned | | $ | 6,562 | | | $ | 20,808 | | | $ | (6,819 | ) | | $ | 20,551 | |
| | | | | | | | | | | | | | | | |
Total nonperforming assets | | $ | 26,475 | | | $ | 48,089 | | | $ | (45,671 | ) | | $ | 28,893 | |
| | | | | | | | | | | | | | | | |
Ratios | | | | | | | | | | | | | | | | |
Nonperforming loans, net of specific valuation allowances, to total gross loans | | | 2.88 | % | | | | | | | | | | | 1.19 | % |
Nonperforming assets, net of specific valuation allowances, to total assets | | | 3.07 | % | | | | | | | | | | | 3.11 | % |
| (1) | The Company ceases accruing interest, and therefore classifies as nonperforming, any loan as to which principal or interest has been in default for a period of greater than 90 days, or if repayment in full of interest or principal is not expected. Nonperforming loans exclude loans that have been restructured and remain on accruing status. At September 30, 2011, net nonperforming loans totaled $8.3 million, net of specific valuation allowances of $808 thousand. At December 31, 2010, net nonperforming loans totaled $19.9 million, net of specific valuation allowances of $1.2 million. |
| (2) | Increases in nonperforming loans are attributable to loans where we have discontinued the accrual of interest at some point during the period ended September 30, 2011. Increases in other real estate owned represent the value of properties that have been foreclosed upon during the period ended September 30, 2011. |
| (3) | Decreases in nonperforming loans are primarily attributable to payments we have collected from borrowers, charge-offs of recorded balances and transfers of balances to real estate owned during the nine months ended September 30, 2011. Decreases in other real estate owned represent either the sale, disposition or valuation adjustment on properties which had previously been foreclosed upon. |
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Troubled Debt Restructured Loans (TDRs).As of September 30, 2011, the Company had 27 loans with an aggregate balance of $17.0 million, net of specific valuation allowances, classified as TDR compared to $23.1 million at December 31, 2010. Specific valuation allowances totaling $1 million (net of $201 thousand previously charged off) have been established for these loans as of September 30, 2011 compared to $3.1 million at December 31, 2010. When a loan becomes a TDR the Company ceases accruing interest, recognizes principal and interest payments on a cash basis and classifies it as non-accrual until the borrower has made at least six consecutive payments and in certain instances twelve consecutive payments under the modified terms. Of the 27 loans classified as TDR, 19 loans totaling $10.6 million are performing under their modified terms (defined as less than 30 days delinquent). Of the performing TDRs, $10 million have been paying as agreed for more than six months and are on accrual status while $489 thousand are performing and earning interest on a cash basis but are classified non-accrual because the borrower has yet to make six consecutive payments under the modified agreement. Six TDR loans with an aggregate balance of $2.4 million are past due (defined as over 90 days delinquent). Past due TDR loans consist of one land loan with an aggregate balance of $333 thousand and four real estate one-to four- family first mortgage loans totaling $2.1 million. These loans will either return to a performing TDR status or move through the Bank’s normal collection process for non-performing loans. In addition, the Bank has two TDR with an aggregate balance of $3.8 million that were recently modified and have yet to make a payment under their restructure.
The following table presents the seasoning of the Bank’s performing restructured loans, their effective balance (principal balance minus specific valuation allowances charged-off), and their weighted average interest rates (dollars in thousands):
| | | | | | | | | | | | | | | | |
Performing Restructured Loans As of September 30, 2011 | |
Payments | | # of
Loans | | | Book
Value | | | Average
Loan Size | | | Weighted Average
Interest Rate | |
| | | (Dollars in Thousands) | |
1 Payment | | | — | | | $ | — | | | $ | — | | | | — | |
2 Payments | | | — | | | | — | | | | — | | | | — | |
3 Payments | | | 1 | | | | 489 | | | | 489 | | | | 4.35 | % |
4 Payments | | | — | | | | — | | | | — | | | | — | |
5 Payments | | | — | | | | — | | | | — | | | | — | |
6 Payments | | | — | | | | — | | | | — | | | | — | |
7 Payments | | | — | | | | — | | | | — | | | | — | |
8 Payments | | | — | | | | — | | | | — | | | | — | |
9 Payments | | | — | | | | — | | | | — | | | | — | |
10 Payments | | | 1 | | | | 2,134 | | | | 2,134 | | | | 4.50 | |
11 Payments | | | 1 | | | | 278 | | | | 278 | | | | 5.12 | |
12 Payments | | | 16 | | | | 7,676 | | | | 479 | | | | 5.57 | |
| | | | | | | | | | | | | | | | |
Total | | | 19 | | | $ | 10,577 | | | $ | 557 | | | | 5.20 | % |
| | | | | | | | | | | | | | | | |
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FIRST PACTRUST BANCORP, INC.
CONSOLIDATED BALANCE SHEETS
(Amounts in thousands except share and per share data)
(unaudited)
| | | | | | | | |
| | | September 30, 2011 | | | December 31, 2010 | |
ASSETS | | | | | | | | |
Cash and due from banks | | $ | 5,556 | | | $ | 5,371 | |
Interest-bearing deposits | | | 69,544 | | | | 53,729 | |
| | | | | | | | |
Total cash and cash equivalents | | | 75,100 | | | | 59,100 | |
Securities available-for sale | | | 64,926 | | | | 64,790 | |
Federal Home Loan Bank stock, at cost | | | 7,310 | | | | 8,323 | |
Loans, net of allowance of $8,993 at September 30, 2011 and $14,637 at December 31, 2010 | | | 695,740 | | | | 678,175 | |
Accrued interest receivable | | | 3,220 | | | | 3,531 | |
Real estate owned, net | | | 20,551 | | | | 6,562 | |
Premises and equipment, net | | | 9,385 | | | | 6,344 | |
Bank owned life insurance investment | | | 18,372 | | | | 18,151 | |
Prepaid FDIC assessment | | | 2,603 | | | | 3,521 | |
Other assets | | | 31,770 | | | | 13,124 | |
| | | | | | | | |
Total assets | | $ | 928,977 | | | $ | 861,621 | |
| | | | | | | | |
| | |
LIABILITIES | | | | | | | | |
Deposits: | | | | | | | | |
Noninterest-bearing | | $ | 20,934 | | | $ | 15,171 | |
Interest-bearing | | | 49,242 | | | | 44,860 | |
Money market accounts | | | 87,029 | | | | 89,708 | |
Savings accounts | | | 135,836 | | | | 124,620 | |
Certificate of deposit | | | 418,568 | | | | 371,949 | |
| | | | | | | | |
Total deposits | | | 711,609 | | | | 646,308 | |
Advances from Federal Home Loan Bank | | | 20,000 | | | | 75,000 | |
Accrued expenses and other liabilities | | | 5,880 | | | | 4,304 | |
| | | | | | | | |
Total liabilities | | | 737,489 | | | | 725,612 | |
Commitments and contingent liabilities | | | — | | | | — | |
| | |
SHAREHOLDERS’ EQUITY | | | | | | | | |
Preferred stock, $.01 par value per share, $1,000 per share liquidation preference, 50,000,000 shares authorized; 32,000 shares issued and outstanding at September 30, 2011; None issued or outstanding at December 31, 2010 | | | — | | | | — | |
Common stock, $0.1 per value per share, 196,863,844 shares authorized; 11,715,595 shares issued and 10,552,205 shares outstanding at September 30, 2011; 9,863,390 shares issued and 8,693,228 shares outstanding at December 31, 2010 outstanding at December 31, 2010 | | | 117 | | | | 99 | |
Class B non-voting, non-convertible Common stock, $.01 par value per share, 3,136,156 shares authorized; 1,044,065 shares issued and outstanding at September 30, 2011 and 1,036,156 shares issued and outstanding at December 31, 2010 | | | 10 | | | | 10 | |
Additional paid-in capital | | | 178,754 | | | | 119,998 | |
Additional paid-in-capital warrants | | | 3,172 | | | | 3,172 | |
Retained earnings | | | 35,065 | | | | 35,773 | |
Treasury stock, at cost (September 30, 2011 – 1,163,390 shares, December 31, 2010 – 1,170,162 shares) | | | (24,986 | ) | | | (25,135 | ) |
Unearned Employee Stock Ownership Plan (ESOP) shares (September 30, 2011 – 10,580 shares, December 31, 2010 – 42,320 shares) | | | (127 | ) | | | (507 | ) |
Accumulated other comprehensive income (loss) | | | (517 | ) | | | 2,599 | |
| | | | | | | | |
Total shareholders’ equity | | | 191,488 | | | | 136,009 | |
| | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 928,977 | | | $ | 861,621 | |
| | | | | | | | |
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FIRST PACTRUST BANCORP, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except share and per share data)
(unaudited)
| | | | | | | | | | | | | | | | |
| | | Three Months Ended
September 30, 2011 | | | Nine Months Ended
September 30, 2010 | |
| | | 2011 | | | 2010 | | | 2011 | | | 2010 | |
Interest and dividend income: | | | | | | | | | | | | | | | | |
Loans, including fees | | $ | 7,757 | | | $ | 9,164 | | | $ | 22,936 | | | $ | 26,967 | |
Securities: | | | 1,017 | | | | 1,410 | | | | 3,263 | | | | 4,026 | |
Dividends and other interest-earning assets | | | 49 | | | | 64 | | | | 155 | | | | 153 | |
| | | | | | | | | | | | | | | | |
Total interest and dividend income | | | 8,823 | | | | 10,638 | | | | 26,354 | | | | 31,146 | |
| | | | |
Interest expense: | | | | | | | | | | | | | | | | |
Savings | | | 95 | | | | 186 | | | | 283 | | | | 673 | |
NOW | | | 18 | | | | 24 | | | | 50 | | | | 87 | |
Money Market | | | 62 | | | | 138 | | | | 189 | | | | 482 | |
Certificates of deposit | | | 1,072 | | | | 1,559 | | | | 3,225 | | | | 5,116 | |
Federal Home Loan Bank advances | | | 92 | | | | 592 | | | | 960 | | | | 2,285 | |
| | | | | | | | | | | | | | | | |
Total interest expense | | | 1,339 | | | | 2,499 | | | | 4,707 | | | | 8,643 | |
| | | | | | | | | | | | | | | | |
Net interest income | | | 7,484 | | | | 8,139 | | | | 21,647 | | | | 22,503 | |
Provision for loans losses | | | 823 | | | | 781 | | | | 1,274 | | | | 8,629 | |
| | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 6 ,661 | | | | 7,358 | | | | 20,373 | | | | 13,874 | |
Noninterest income: | | | | | | | | | | | | | | | | |
Customer services fees | | | 396 | | | | 336 | | | | 1,107 | | | | 995 | |
Mortgage loan prepayment penalties | | | 54 | | | | — | | | | 80 | | | | — | |
Income from bank owned life insurance | | | 77 | | | | 57 | | | | 221 | | | | 165 | |
Net gain on sale of securities | | | 1,450 | | | | — | | | | 2,887 | | | | — | |
Other | | | 35 | | | | 61 | | | | 119 | | | | 25 | |
| | | | | | | | | | | | | | | | |
Total noninterest income | | | 2,012 | | | | 454 | | | | 4,414 | | | | 1,185 | |
| | | | | | | | | | | | | | | | |
Noninterest expense: | | | | | | | | | | | | | | | | |
Salaries and employee benefits | | | 3,251 | | | | 1,614 | | | | 9,488 | | | | 4,778 | |
Occupancy and equipment | | | 730 | | | | 437 | | | | 1,926 | | | | 1,386 | |
Advertising | | | 71 | | | | 67 | | | | 182 | | | | 227 | |
Professional fees | | | 667 | | | | 238 | | | | 1,416 | | | | 547 | |
Stationary paper, supplies, and postage | | | 105 | | | | 86 | | | | 336 | | | | 266 | |
Data processing | | | 356 | | | | 289 | | | | 972 | | | | 858 | |
ATM costs | | | 81 | | | | 74 | | | | 223 | | | | 224 | |
FDIC expense | | | 222 | | | | 391 | | | | 997 | | | | 1,172 | |
Loan serving and foreclosure | | | 327 | | | | 150 | | | | 783 | | | | 916 | |
Operating loss on equity and investment | | | 79 | | | | 82 | | | | 235 | | | | 254 | |
OREO-valuation allowance | | | 1,329 | | | | 386 | | | | 1,887 | | | | 1,414 | |
Loss on sale of OREO | | | 105 | | | | (259 | ) | | | 924 | | | | 61 | |
Other general and administrative | | | 338 | | | | 291 | | | | 1,107 | | | | 927 | |
| | | | | | | | | | | | | | | | |
Total noninterest expense | | | 7,661 | | | | 3,846 | | | | 20,476 | | | | 13,030 | |
| | | | | | | | | | | | | | | | |
Income before income taxes | | | 1,012 | | | | 3,966 | | | | 4,311 | | | | 2,029 | |
Income tax expense/(benefit) | | | 368 | | | | 934 | | | | 1,425 | | | | 580 | |
| | | | | | | | | | | | | | | | |
Income | | $ | 644 | | | $ | 3,032 | | | $ | 2 ,886 | | | $ | 1,449 | |
| | | | | | | | | | | | | | | | |
Preferred stock dividends | | $ | 138 | | | $ | 251 | | | $ | 138 | | | $ | 753 | |
| | | | | | | | | | | | | | | | |
Net income available to common stockholders | | $ | 506 | | | $ | 2,781 | | | $ | 2 ,748 | | | $ | 696 | |
| | | | | | | | | | | | | | | | |
Basic earnings per share | | $ | 0.04 | | | $ | 0.66 | | | $ | 0.27 | | | $ | 0.17 | |
| | | | | | | | | | | | | | | | |
Diluted earnings per share | | $ | 0.04 | | | $ | 0.66 | | | $ | 0.27 | | | $ | 0.17 | |
| | | | | | | | | | | | | | | | |
8
FIRST PACTRUST BANCORP, INC.
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 3 months ended
September 30, 2011 | | | 3 months ended
September 30, 2010 | |
(dollars in thousands) | | Average
Balances | | | Interest | | | Annualized
Average
Rates/
Yields | | | Average
Balances | | | Interest | | | Annualized
Average
Rates/
Yields | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loans receivable (1) | | $ | 679,199 | | | $ | 7,757 | | | | 4.57 | % | | | 695,302 | | | $ | 9,164 | | | | 5.27 | % |
Securities | | | 90,454 | | | | 1,017 | | | | 4.50 | % | | | 67,577 | | | | 1,410 | | | | 8.35 | % |
Other interest-earning assets | | | 59,347 | | | | 49 | | | | 0.33 | % | | | 44,715 | | | | 64 | | | | 0.57 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 829,000 | | | | 8,823 | | | | 4.24 | % | | | 807,594 | | | | 10,638 | | | | 5.28 | % |
Non-interest earning assets | | | 75,738 | | | | | | | | | | | | 64,613 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 904,738 | | | | | | | | | | | $ | 872,207 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
NOW | | $ | 65,582 | | | | 18 | | | | 0.11 | % | | $ | 58,044 | | | | 24 | | | | 0.17 | % |
Money Market | | | 86,722 | | | | 62 | | | | 0.29 | % | | | 89,337 | | | | 138 | | | | 0.62 | % |
Savings | | | 134,589 | | | | 95 | | | | 0.28 | % | | | 128,481 | | | | 186 | | | | 0.58 | % |
Certificate of deposit | | | 415,887 | | | | 1,072 | | | | 1.03 | % | | | 410,394 | | | | 1,559 | | | | 1.52 | % |
FHLB advances | | | 20,326 | | | | 92 | | | | 1.81 | % | | | 81,848 | | | | 592 | | | | 2.89 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 723,106 | | | | 1,339 | | | | 0.76 | % | | | 768,104 | | | | 2,499 | | | | 1.32 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities | | | 8,137 | | | | | | | | | | | | 5,833 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 731,243 | | | | | | | | | | | | 773,937 | | | | | | | | | |
Equity | | | 173,495 | | | | | | | | | | | | 98,270 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 904,738 | | | | | | | | | | | $ | 872,207 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest/spread | | | | | | $ | 7,484 | | | | 3.48 | % | | | | | | $ | 8,139 | | | | 3.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Margin | | | | | | | | | | | 3.61 | % | | | | | | | | | | | 4.03 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | | 114.64 | % | | | | | | | | | | | 105.14 | % | | | | | | | | |
| (1) | Average balances of nonperforming loans are included in the above amounts. |
9
FIRST PACTRUST BANCORP, INC.
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS
(Dollars in thousands)
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | 9 months ended
September 30, 2011 | | | 9 months ended
September 30, 2010 | |
(dollars in thousands) | | Average
Balances | | | Interest | | | Annualized
Average
Rates/
Yields | | | Average
Balances | | | Interest | | | Annualized
Average
Rates/
Yields | |
Interest-earning assets: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Loans receivable (1) | | $ | 672,977 | | | $ | 22,936 | | | | 4.54 | % | | $ | 716,945 | | | $ | 26,967 | | | | 5.02 | % |
Securities | | | 78,963 | | | | 3,263 | | | | 5.51 | % | | | 63,500 | | | | 4,026 | | | | 8.45 | % |
Other interest-earning assets | | | 51,085 | | | | 155 | | | | 0.40 | % | | | 42,179 | | | | 153 | | | | 0.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-earning assets | | | 803,025 | | | | 26,354 | | | | 4.37 | % | | | 822,624 | | | | 31,146 | | | | 5.05 | % |
Non-interest earning assets | | | 67,474 | | | | | | | | | | | | 62,065 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 870,499 | | | | | | | | | | | $ | 884,689 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
NOW | | $ | 63,699 | | | | 50 | | | | 0.10 | % | | $ | 56,755 | | | | 87 | | | | 0.20 | % |
Money Market | | | 88,085 | | | | 189 | | | | 0.29 | % | | | 86,977 | | | | 482 | | | | 0.74 | % |
Savings | | | 132,682 | | | | 283 | | | | 0.28 | % | | | 125,244 | | | | 673 | | | | 0.72 | % |
Certificate of deposit | | | 382,560 | | | | 3,225 | | | | 1.12 | % | | | 410,773 | | | | 5,116 | | | | 1.66 | % |
FHLB advances | | | 46,630 | | | | 960 | | | | 2.75 | % | | | 101,136 | | | | 2,285 | | | | 3.01 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total interest-bearing liabilities | | | 713,656 | | | | 4,707 | | | | 0.88 | % | | | 780,885 | | | | 8,643 | | | | 1.48 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Non-interest-bearing liabilities | | | 7,483 | | | | | | | | | | | | 5,219 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities | | | 721,139 | | | | | | | | | | | | 786,104 | | | | | | | | | |
Equity | | | 149,360 | | | | | | | | | | | | 98,585 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Total liabilities and equity | | $ | 870,499 | | | | | | | | | | | $ | 884,689 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
Net interest/spread | | | | | | $ | 21,647 | | | | 3.49 | % | | | | | | $ | 22,503 | | | | 3.57 | % |
| | | | | | | | | | | | | | | | | | | | | | | | |
Margin | | | | | | | | | | | 3.59 | % | | | | | | | | | | | 3.65 | % |
Ratio of average interest-earning assets to average interest-bearing liabilities | | | 112.52 | % | | | | | | | | | | | 105.35 | % | | | | | | | | |
| (1) | Average balances of nonperforming loans are included in the above amounts. |
10
FIRST PACTRUST BANCORP, INC.
SELECTED QUARTERLY FINANCIAL DATA
(Amounts in thousands, except share and per share data)
| | | | | | | | | | | | | | | | | | | | |
| | | September
2011 | | | June
2011 | | | March
2011 | | | December
2010 | | | September
2010 | |
Balance sheet data, at quarter end: | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 928,977 | | | $ | 882,266 | | | $ | 834,983 | | | $ | 861,621 | | | $ | 862,713 | |
Total gross loans | | | 703,454 | | | | 678,777 | | | | 680,720 | | | | 690,988 | | | | 704,701 | |
Allowance for loan losses | | | (8,993 | ) | | | (8,431 | ) | | | (11,905 | ) | | | (14,637 | ) | | | (17,560 | ) |
Securities available for sale | | | 64,926 | | | | 74,613 | | | | 73,689 | | | | 64,790 | | | | 71,194 | |
Noninterest-bearing deposits | | | 20,934 | | | | 21,702 | | | | 18,066 | | | | 15,171 | | | | 15,599 | |
Total deposits | | | 711,609 | | | | 685,934 | | | | 634,410 | | | | 646,308 | | | | 684,788 | |
FHLB advances and other borrowings | | | 20,000 | | | | 30,000 | | | | 60,000 | | | | 75,000 | | | | 75,000 | |
Total shareholders’ equity | | | 191,488 | | | | 160,475 | | | | 135,650 | | | | 136,009 | | | | 98,867 | |
| | | | | |
Balance sheet data, quarterly averages: | | | | | | | | | | | | | | | | | | | | |
Total assets | | $ | 904,738 | | | $ | 851,038 | | | $ | 851,254 | | | $ | 872,567 | | | $ | 872,207 | |
Total loans | | | 679,199 | | | | 665,516 | | | | 672,491 | | | | 685,890 | | | | 695,302 | |
Securities available for sale | | | 90,454 | | | | 74,585 | | | | 70,073 | | | | 63,830 | | | | 67,577 | |
Total interest earning assets | | | 829,000 | | | | 786,960 | | | | 788,934 | | | | 809,180 | | | | 807,594 | |
Total deposits | | | 702,780 | | | | 660,645 | | | | 639,388 | | | | 668,165 | | | | 686,256 | |
Advances from FHLB and other borrowings | | | 20,326 | | | | 48,737 | | | | 68,750 | | | | 75,000 | | | | 81,848 | |
Total shareholders’ equity | | | 173,495 | | | | 137,149 | | | | 135,957 | | | | 122,530 | | | | 98,270 | |
| | | | | |
Statement of operations data, for the three months ended: | | | | | | | | | | | | | | | | | | | | |
Interest income | | $ | 8,823 | | | $ | 8,582 | | | $ | 8,949 | | | $ | 9,798 | | | $ | 10,638 | |
Interest expense | | | 1,339 | | | | 1,574 | | | | 1,794 | | | | 2,145 | | | | 2,499 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income | | | 7,484 | | | | 7,008 | | | | 7,155 | | | | 7,653 | | | | 8,139 | |
Provision for loan losses | | | 823 | | | | 451 | | | | — | | | | 328 | | | | 781 | |
| | | | | | | | | | | | | | | | | | | | |
Net interest income after provision for loan losses | | | 6,661 | | | | 6,557 | | | | 7,155 | | | | 7,325 | | | | 7,358 | |
Noninterest income | | | 2,012 | | | | 1,635 | | | | 767 | | | | 3,694 | | | | 454 | |
Noninterest expense | | | 7,661 | | | | 5,999 | | | | 6,816 | | | | 9,187 | | | | 3,846 | |
| | | | | | | | | | | | | | | | | | | | |
Income before income taxes | | | 1,012 | | | | 2,193 | | | | 1,106 | | | | 1,832 | | | | 3,966 | |
Income tax expense | | | 368 | | | | 644 | | | | 413 | | | | 456 | | | | 934 | |
Preferred dividends and accretion | | | 138 | | | | — | | | | — | | | | 207 | | | | 251 | |
| | | | | | | | | | | | | | | | | | | | |
Net income available to common stockholders | | $ | 506 | | | $ | 1,549 | | | $ | 693 | | | $ | 1,169 | | | $ | 2,781 | |
| | | | | | | | | | | | | | | | | | | | |
| | | | | |
Profitability and other ratios: | | | | | | | | | | | | | | | | | | | | |
Return on avg. assets (1) | | | 0.28 | % | | | 0.73 | % | | | 0.33 | % | | | 0.63 | % | | | 1.39 | % |
Return on avg. equity (1) | | | 1.48 | | | | 4.52 | | | | 2.04 | | | | 4.49 | | | | 12.34 | |
Net interest margin (1) | | | 3.61 | | | | 3.56 | | | | 3.63 | | | | 3.78 | | | | 4.03 | |
Noninterest income to total revenue (2) | | | 21.19 | | | | 18.92 | | | | 9.68 | | | | 32.55 | | | | 5.28 | |
Noninterest income to avg. assets (1) | | | 0.89 | | | | 0.77 | | | | 0.36 | | | | 1.69 | | | | 0.21 | |
Noninterest exp. to avg. assets (1) | | | 3.39 | | | | 2.82 | | | | 3.20 | | | | 4.21 | | | | 1.76 | |
Efficiency ratio (3) | | | 80.68 | | | | 69.41 | | | | 86.04 | | | | 80.96 | | | | 44.76 | |
Avg. loans to average deposits | | | 96.64 | | | | 100.74 | | | | 105.18 | | | | 102.65 | | | | 101.32 | |
Securities available for sale to total assets | | | 6.99 | | | | 8.46 | | | | 8.83 | | | | 7.52 | | | | 8.25 | |
Average interest-earning assets to average interest-bearing liabilities | | | 114.64 | % | | | 110.94 | % | | | 111.41 | % | | | 108.88 | % | | | 105.14 | % |
| | | | | |
Asset quality information and ratios: | | | | | | | | | | | | | | | | | | | | |
Nonperforming assets (4): | | | | | | | | | | | | | | | | | | | | |
Nonperforming loans | | $ | 8,342 | | | $ | 14,240 | | | $ | 27,618 | | | $ | 19,913 | | | $ | 21,972 | |
Other real estate owned (OREO) | | | 20,551 | | | | 15,018 | | | | 6,433 | | | | 6,562 | | | | 7,790 | |
| | | | | | | | | | | | | | | | | | | | |
Totals | | $ | 28,893 | | | $ | 29,258 | | | $ | 34,051 | | | $ | 26,475 | | | $ | 29,762 | |
| | | | | | | | | | | | | | | | | | | | |
Net loan charge-offs | | $ | 261 | | | $ | 3,924 | | | $ | 2,733 | | | $ | 3,251 | | | $ | 917 | |
Allowance for loan losses to nonaccrual loans, net | | | 82.38 | % | | | 38.21 | % | | | 38.75 | % | | | 41.34 | % | | | 46.03 | % |
11
| | | | | | | | | | | | | | | | | | | | |
As a percentage of total loans: | | | | | | | | | | | | | | | | | | | | |
Allowance for loan losses | | | 1.28 | | | | 1.24 | | | | 1.75 | | | | 2.12 | | | | 2.49 | |
Nonperforming assets to total loans and OREO | | | 3.99 | | | | 4.22 | | | | 4.96 | | | | 3.80 | | | | 4.18 | |
Nonperforming assets to total assets | | | 3.11 | % | | | 3.32 | % | | | 4.08 | % | | | 3.07 | % | | | 3.45 | % |
12
FIRST PACTRUST BANCORP, INC.
ANALYSIS OF INTEREST INCOME AND EXPENSE, RATES AND YIELDS
(Amounts in thousands, except share and per share data)
| | | | | | | | | | | | | | | | | | | | |
Interest rates and yields: | | | | | | | | | | | | | | | | | | | | |
Loans | | | 4.57 | % | | | 4.52 | % | | | 4.56 | % | | | 4.94 | % | | | 5.27 | % |
Securities available for sale | | | 4.50 | | | | 5.37 | | | | 7.10 | | | | 7.12 | | | | 8.35 | |
Total earning assets | | | 4.24 | | | | 4.36 | | | | 4.52 | | | | 4.84 | | | | 5.28 | |
Total deposits, including non-interest bearing | | | 0.71 | | | | 0.74 | | | | 0.80 | | | | 0.94 | | | | 1.12 | |
FHLB advances and other borrowings | | | 1.81 | | | | 2.88 | | | | 3.01 | | | | 3.04 | | | | 2.89 | |
Total deposits and interest-bearing liabilities | | | 0.76 | | | | 0.88 | | | | 1.00 | | | | 1.16 | | | | 1.32 | |
Capital ratios: | | | | | | | | | | | | | | | | | | | | |
Stockholders’ equity to total assets | | | 20.6 | | | | 18.2 | | | | 16.3 | | | | 15.8 | | | | 11.5 | |
Tier one risk-based (5) | | | 19.7 | | | | 16.0 | | | | 16.0 | | | | 14.9 | | | | 12.9 | |
Total risk-based (5) | | | 20.7 | % | | | 17.2 | % | | | 17.3 | % | | | 16.2 | % | | | 14.2 | % |
| | | | | | | | | | | | | | | | | | | | |
(dollars in thousands, except per share data) | | September
2011 | | | June
2011 | | | March
2011 | | | December
2010 | | | September
2010 | |
Per share data: | | | | | | | | | | | | | | | | | | | | |
Basic earnings per common share | | $ | 0.04 | | | $ | 0.16 | | | $ | 0.07 | | | $ | 0.15 | | | $ | 0.66 | |
Diluted earnings per common share | | | 0.04 | | | | 0.16 | | | | 0.07 | | | | 0.15 | | | | 0.66 | |
Book value per common share at quarter end (6) | | | 13.76 | | | | 13.93 | | | | 13.94 | | | | 13.98 | | | | 18.79 | |
Weighted avg. common shares — basic | | | 11,542,752 | | | | 9,753,153 | | | | 9,661,447 | | | | 7,826,916 | | | | 4,202,533 | |
Weighted avg. common shares — diluted | | | 11,544,142 | | | | 9,785,203 | | | | 9,665,273 | | | | 7,827,164 | | | | 4,202,533 | |
Common shares outstanding | | | 11,596,270 | | | | 11,520,067 | | | | 9,729,066 | | | | 9,729,384 | | | | 4,243,884 | |
Investor information: | | | | | | | | | | | | | | | | | | | | |
Closing sales price | | $ | 11.33 | | | $ | 14.86 | | | $ | 15.91 | | | $ | 13.27 | | | $ | 10.70 | |
High closing sales price during quarter | | | 15.52 | | | | 16.61 | | | | 16.59 | | | | 13.27 | | | | 10.70 | |
Low closing sales price during quarter | | $ | 10.37 | | | $ | 13.93 | | | $ | 13.53 | | | $ | 10.45 | | | $ | 7.21 | |
Risk-weighted assets | | | 662,472 | | | | 621,339 | | | | 613,827 | | | | 641,205 | | | | 651,918 | |
Total assets per full-time equivalent employee | | | 7,432 | | | | 7,173 | | | | 7,180 | | | | 9,070 | | | | 8,714 | |
Annualized revenues per full-time equivalent employee | | | 303.9 | | | | 281.1 | | | | 272.5 | | | | 477.8 | | | | 347.2 | |
Number of employees (full-time equivalent) | | | 125.0 | | | | 123.0 | | | | 116.3 | | | | 95.0 | | | | 99.0 | |
| (1) | Ratios are presented on an annualized basis. |
| (2) | Total revenue is equal to the sum of net interest income and noninterest income. |
| (3) | Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income and noninterest income |
| (4) | Balances are net of specific valuation allowances, and do not include all loans or nonaccrual or past due over 90 days and still on accrual. |
| (5) | Capital ratios are for Pacific Trust Bank and are defined as follows: |
| | a. | Tier one risk-based — Tier one capital (pursuant to risk-based capital guidelines) as a percentage of total risk- weighted assets. |
| | b. | Total risk-based — Total capital (pursuant to risk-based capital guidelines) as a percentage of total risk-weighted assets. |
| (6) | Book value per share computed by dividing total stockholders’ equity less TARP and/or SBLF related equity (if applicable) by common shares outstanding, net of treasury shares. |
13
