UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 17, 2007
RAINIER PACIFIC FINANCIAL GROUP, INC.
(Exact name of registrant as specified in its charter)
Washington | 000-50362 | 87-0700148 |
(State or other jurisdiction | (Commission | (I.R.S. Employer |
1498 Pacific Avenue, Tacoma, Washington | 98402 |
(Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code:(253) 926-4000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions. |
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act |
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act |
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Item 2.02 Results of Operations and Financial Condition
On October 17, 2007, Rainier Pacific Financial Group, Inc. issued its earnings release for the quarter ended September 30, 2007. A copy of the press release is attached as Exhibit 99.1 and incorporated by reference herein.
Item 9.01 Financial Statements and Exhibits
(c) Exhibits
99.1 Press Release of Rainier Pacific Financial Group, Inc. dated October 17, 2007.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| RAINIER PACIFIC FINANCIAL GROUP, INC. | |
| Date: October 17, 2007 | /s/John A. Hall |
| John A. Hall | |
| President and Chief Executive Officer | |
| (Principal Executive Officer) |
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EXHIBIT 99.1
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| For more information, contact: | |
| John Hall: (253) 926-4007 | |
| jhall@rainierpac.com | |
| **For Immediate Release** | or |
| Vic Toy: (253) 926-4038 | |
| vtoy@rainierpac.com |
Rainier Pacific Financial Group, Inc.
Reports Third Quarter Earnings
Tacoma, Washington - October 17, 2007 - Rainier Pacific Financial Group, Inc. (the "Company") (NASDAQ GM: RPFG) announced today its third quarter results. Net income for the quarter ended September 30, 2007 increased 42.7% to $1.1 million, or $0.18 per diluted share, compared to net income of $751,000, or $0.13 per diluted share, for the same period in 2006. For the nine months ended September 30, 2007, the Company's net income was $2.9 million, or $0.49 per diluted share, compared to net income of $2.1 million, or $0.35 per diluted share, for the same nine month period in 2006.
The Company's revenue (i.e., net interest income before provision for loan losses plus non-interest income) for the quarter ended September 30, 2007 was $9.1 million, compared to $8.6 million for the same period a year ago. Net interest income before the provision for loan losses for the quarter was $6.7 million, or 6.3% higher than the $6.3 million during the same period a year ago. For the quarter ended September 30, 2007, the Company's net interest margin improved to 3.20%, compared to 3.01% for the quarter ended June 30, 2007, and 2.96% for the quarter ended September 30, 2006. The yield on the Company's interest-earning assets was 6.94% for the quarter ended September 30,
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2007, compared to 6.71% and 6.60% for the quarters ended June 30, 2007 and September 30, 2006, respectively. For the quarter ended September 30, 2007, the Company's cost of interest-bearing liabilities was 4.15%, compared to 4.11% and 4.01% for the quarters ended June 30, 2007 and September 30, 2006, respectively.
Non-interest income increased 4.3% to $2.4 million for the quarter ended September 30, 2007, compared to $2.3 million for the same quarter in 2006, as the Company continued to benefit from increased revenue derived from loan servicing fees and its property and casualty insurance agency. "We continue to seek ways to diversify and grow the Company's recurring non-interest income sources. This is particularly evident in the insurance service fees generated by Rainier Pacific Insurance Services during 2007, for which we remain focused on growing through both organic means and by acquiring smaller independent agencies," said John A. Hall, President and CEO.
Non-interest expenses were $7.3 million for the quarter ended September 30, 2007, unchanged compared to $7.3 million for the quarter ended September 30, 2006 and slightly higher compared to the $7.1 million for the quarter ended June 30, 2007.
High prepayments of multi-family and commercial real estate loans, reductions from the investment securities portfolio, sales of single-family mortgage loans, and slower loan originations contributed to a decline in the Company's total assets to $882.3 million at September 30, 2007, or $20.4 million less than the $902.7 million at December 31, 2006. Total shareholders' equity at September 30, 2007 was $89.6 million, compared to $87.8 million at December 31, 2006.
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Total loans were $633.3 million at September 30, 2007, compared to $647.4 million at June 30, 2007 and $639.4 million at December 31, 2006, respectively. The decline in loan balances was primarily attributable to a high level of multi-family and commercial real estate loan prepayments, sales of single-family mortgage loans, and slower loan originations, as the Company focused on originating higher credit quality loans during the quarter ended September 30, 2007. For the quarter and nine months ended September 30, 2007, the Company experienced $26.3 million and $36.4 million in multi-family and commercial real estate loan prepayments, respectively.
Total loan originations were $46.1 million during the quarter ended September 30, 2007, compared to $61.1 million and $70.8 million for the quarters ended June 30, 2007 and September 30, 2006, respectively. For the nine months ended September 30, 2007, total loan originations were $147.5 million, compared to $174.9 million for the same period in 2006.
For the quarter ended September 30, 2007, the yield on loans was 7.53%, compared to 7.27% and 7.22% for the quarters ended June 30, 2007 and September 30, 2006, respectively. The third quarter improvement in the yield on loans was partially attributable to the income the Company received from prepayments of multi-family and commercial real estate loans during the quarter. At September 30, 2007, the loan portfolio consisted of 33.8% commercial real estate loans, 23.6% multi-family real estate loans, 12.4% single-family real estate loans, 11.8% real estate construction loans, 8.5% consumer loans (excluding home equity loans), 7.0% home equity loans, and 2.9% commercial business loans.
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The Company sold $5.1 million of single-family fixed-rate real estate loans which generated $60,000 in net gains during the quarter ended September 30, 2007, compared to $5.0 million in loan sales and $23,000 in net gains during the same period in 2006. The portfolio of loans serviced for others increased to $113.3 million at September 30, 2007, compared to $107.1 million atSeptember30, 2006.
The credit quality of the loan portfolio remained very good during the third quarter. Net charge-offs were $242,000 for the quarter ended September 30, 2007, compared to $191,000 for the quarter ended June 30, 2007, and $145,000 for the quarter ended September 30, 2006. Loans more than 30 days delinquent as a percentage of total loans were 0.28% at September 30, 2007, compared to 0.26% at June 30, 2007, and 0.28% at December 31, 2006. Non-performing loans (i.e., loans 90 days or more past due or non-accrual loans) were $197,000, or 0.03% of total loans, at September 30, 2007, compared to $217,000, or 0.03% of total loans, at June 30, 2007, and $241,000, or 0.04% of total loans, at December 31, 2006. Non-performing assets were $220,000, or 0.02% of total assets, at September 30, 2007, compared to $233,000, or 0.03% of total assets, at June 30, 2007, and $274,000, or 0.03% of total assets, at December 31, 2006. The Company's provision for loan losses was $150,000 for the quarter ended September 30, 2007, unchanged from the provision made for the previous quarters ended June 30, 2007 and September 30, 2006. The allowance for loan losses of $8.1 million at September 30, 2007, representing an allowance to total loans ratio of 1.29%, was modestly lower compared to the $8.2 million at June 30, 2007 and the $8.3 million at December 31, 2006.
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The investment securities portfolio at September 30, 2007 of $185.7 million (excluding $13.7 million in Federal Home Loan Bank of Seattle stock holdings) was less than the $190.7 million at June 30, 2007, and the $197.8 million at December 31, 2006.
Total deposits were $460.9 million at September 30, 2007, compared to $460.3 million at June 30, 2007 and $457.4 million at December 31, 2006. Core deposits (comprised of checking, savings, money market, and individual retirement accounts) increased $16.0 million to $236.4 million, or 51.3% of total deposits, as of September 30, 2007, compared to $220.4 million as of December 31, 2006. Brokered deposit balances were $51.0 million at September 30, 2007, compared to $50.6 million at June 30, 2007 and $50.9 million at December 31, 2006. For the quarter ended September 30, 2007, the average cost of interest-bearing deposits was 3.81%, compared to 3.83% for the quarter ended June 30, 2007 and 3.67% for the quarter ended September 30, 2006.
During the quarter ended September 30, 2007, the Company purchased and retired 50,000 shares of its outstanding shares of common stock at an average price of $17.07 per share. At September 30, 2007, the Company had the authority to purchase an additional 163,920 shares of common stock under its currently approved stock repurchase program.
The Company's book value and tangible book value per share as of September 30, 2007 were $14.67 and $14.15 per share, respectively, based upon 6,109,633 outstanding shares of common stock. The number of outstanding shares includes 115,108 restricted shares granted to participants under the Company's 2004 Management Recognition Plan that have not yet vested or were not ratably earned,
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and excludes 407,237 of unallocated shares held by the Rainier Pacific 401(k) Employee Stock Ownership Plan.
"We are pleased with our continued improvement in earnings during the first nine months of the year and the strong credit quality of our loan portfolio. However, we anticipate economic conditions will be less favorable in our primary market area, and we will continue to be selective in our loan pricing and underwriting. Going forward, we will remain focused on achieving better operating profitability and efficiency during the fourth quarter of 2007," said John A. Hall, President and CEO.
Rainier Pacific Financial Group, Inc. is the bank holding company for Rainier Pacific Bank, a Tacoma, Washington-based state-chartered savings bank operating 14 full-service locations in the Tacoma-Pierce County and City of Federal Way market areas.
For additional information, visit Rainier Pacific's website atwww.rainierpac.com.
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors including, but not limited to, interest rate fluctuations; economic conditions in the Company's primary market area; demand for residential, commercial real estate, consumer, and other types of loans; success of new products; competitive conditions between banks and non-bank financial service providers; regulatory and accounting changes; technological factors affecting operations; pricing of products and services; and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2006. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company undertakes no responsibility to update or revise any forward-looking statement.
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Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Condition
(Dollars in Thousands)
| ASSETS | ||||||
| At September 30, | At June 30, | At December 31, | ||||
| 2007 | 2007 | 2006 | ||||
| Cash and cash equivalents | $ 9,192 | $ 12,626 | $ 11,847 | |||
| Interest-bearing deposits with banks | 732 | 625 | 57 | |||
| Securities available-for-sale | 138,345 | 141,543 | 145,110 | |||
| Securities held-to-maturity (fair value of $46,337 at September 30, 2007; $47,453 at June 30, 2007; and $51,589 at December 31, 2006) | 47,346 | 49,110 | 52,652 | |||
| Federal Home Loan Bank of Seattle ("FHLB") stock, at cost | 13,712 | 13,712 | 13,712 | |||
| Loans | 633,319 | 647,385 | 639,378 | |||
| Less: allowance for loan losses | (8,142) | (8,235) | (8,283) | |||
| Loans, net | 625,177 | 639,150 | 631,095 | |||
| Premises and equipment, net | 33,731 | 33,858 | 34,383 | |||
| Accrued interest receivable | 4,075 | 4,035 | 4,177 | |||
| Other assets | 9,951 | 10,184 | 9,664 | |||
| TOTAL ASSETS | $ 882,261 | $ 904,843 | $ 902,697 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| LIABILITIES: | ||||||
| Deposits | ||||||
| Non-interest bearing | $ 34,603 | $ 36,941 | $ 33,722 | |||
| Interest-bearing | 426,314 | 423,375 | 423,703 | |||
| Total deposits | 460,917 | 460,316 | 457,425 | |||
| Borrowed funds | 321,574 | 343,615 | 345,395 | |||
| Corporate drafts payable | 2,992 | 4,200 | 3,537 | |||
| Accrued compensation and benefits | 1,759 | 1,415 | 2,111 | |||
| Other liabilities | 5,381 | 5,387 | 6,399 | |||
| TOTAL LIABILITIES | 792,623 | 814,933 | 814,867 | |||
| SHAREHOLDERS' EQUITY: | ||||||
| Common stock, no par value: 49,000,000 shares authorized; 6,516,870 shares issued and 5,994,525 shares outstanding at September 30, 2007; 6,568,470 shares issued and 6,011,777 shares outstanding at June 30, 2007; and 6,587,670 shares issued and 5,971,913 shares outstanding at December 31, 2006 | 49,972 | 50,434 | 50,038 | |||
| Unearned Employee Stock Ownership Plan ("ESOP") shares | (4,072) | (4,242) | (4,582) | |||
| Accumulated other comprehensive loss, net of tax | (1,108) | (480) | (806) | |||
| Retained earnings | 44,846 | 44,198 | 43,180 | |||
| TOTAL SHAREHOLDERS' EQUITY | 89,638 | 89,910 | 87,830 | |||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 882,261 | $ 904,843 | $ 902,697 | |||
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Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Income
(Dollars in Thousands, except per share data)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2007 | 2006 | 2007 | 2006 | |||||
| INTEREST INCOME | ||||||||
| Loans | $ 12,127 | $ 11,206 | $ 35,371 | $ 31,613 | ||||
| Securities available-for-sale | 2,015 | 2,187 | 6,099 | 6,117 | ||||
| Securities held-to-maturity | 527 | 617 | 1,638 | 2,082 | ||||
| Interest-bearing deposits | 28 | 168 | 108 | 284 | ||||
| FHLB dividends | 21 | - | 55 | - | ||||
| Total interest income | 14,718 | 14,178 | 43,271 | 40,096 | ||||
| INTEREST EXPENSE | ||||||||
| Deposits | 4,104 | 3,879 | 12,268 | 10,155 | ||||
| Borrowed funds | 3,881 | 3,986 | 11,465 | 11,132 | ||||
| Total interest expense | 7,985 | 7,865 | 23,733 | 21,287 | ||||
| Net interest income | 6,733 | 6,313 | 19,538 | 18,809 | ||||
| PROVISION FOR LOAN LOSSES | 150 | 150 | 450 | 450 | ||||
| Net interest income after provision for loan losses | 6,583 | 6,163 | 19,088 | 18,359 | ||||
| NON-INTEREST INCOME | ||||||||
| Deposit service fees | 906 | 932 | 2,611 | 2,633 | ||||
| Loan service fees | 381 | 308 | 1,019 | 858 | ||||
| Insurance service fees | 552 | 545 | 1,717 | 1,579 | ||||
| Investment service fees | 189 | 179 | 446 | 463 | ||||
| Real estate lease income | 298 | 277 | 863 | 841 | ||||
| Gain on sale of securities, net | - | 3 | - | 3 | ||||
| Gain on sale of loans, net | 60 | 23 | 262 | 75 | ||||
| Gain on sale of premises and equipment, net | 1 | 7 | 11 | 7 | ||||
| Other operating income | 25 | 29 | 69 | 86 | ||||
| Total non-interest income | 2,412 | 2,303 | 6,998 | 6,545 | ||||
| NON-INTEREST EXPENSE | ||||||||
| Compensation and benefits | 4,237 | 3,935 | 12,298 | 11,999 | ||||
| Office operations | 1,006 | 1,385 | 2,948 | 3,991 | ||||
| Occupancy | 649 | 666 | 1,908 | 1,941 | ||||
| Loan servicing | 130 | 125 | 369 | 386 | ||||
| Outside and professional services | 250 | 291 | 940 | 947 | ||||
| Marketing | 278 | 276 | 810 | 727 | ||||
| Other operating expenses | 799 | 633 | 2,287 | 1,704 | ||||
| Total non-interest expense | 7,349 | 7,311 | 21,560 | 21,695 | ||||
| INCOME BEFORE PROVISION FOR FEDERAL INCOME TAX | 1,646 | 1,155 | 4,526 | 3,209 | ||||
| PROVISION FOR FEDERAL INCOME TAX | 574 | 404 | 1,582 | 1,123 | ||||
| NET INCOME | $ 1,072 | $ 751 | $ 2,944 | $ 2,086 | ||||
| EARNINGS PER COMMON SHARE | ||||||||
| Basic | $ 0.18 | $ 0.13 | $ 0.49 | $ 0.35 | ||||
| Diluted | $ 0.18 | $ 0.13 | $ 0.49 | $ 0.35 | ||||
| Weighted average shares outstanding - Basic | 5,983,586(1) | 5,951,363(2) | 5,985,043(1) | 5,935,680(2) | ||||
| Weighted average shares outstanding - Diluted | 5,983,586 | 5,993,987 | 6,027,478 | 5,941,717 | ||||
| (1) | Weighted average shares outstanding - Basic includes 212,593 vested and ratably earned shares of the 327,700 restricted shares granted and issued under the 2004 Management Recognition Plan ("MRP"), net of forfeited shares. |
| (2) | Weighted average shares outstanding - Basic includes 149,313 vested and ratably earned shares of the 322,800 restricted shares granted and issued under the MRP, net of forfeited shares. |
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Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Income
(Dollars in Thousands, except per share data)
| Three Months Ended | ||||||||
| September 30, 2007 | June 30, 2007 | March 31, 2007 | December 31, 2006 | |||||
| INTEREST INCOME | ||||||||
| Loans | $ 12,127 | $ 11,645 | $ 11,599 | $ 11,427 | ||||
| Securities available-for-sale | 2,015 | 2,032 | 2,052 | 2,095 | ||||
| Securities held-to-maturity | 527 | 546 | 565 | 581 | ||||
| Interest-bearing deposits | 28 | 70 | 10 | 11 | ||||
| FHLB dividends | 21 | 20 | 14 | 14 | ||||
| Total interest income | 14,718 | 14,313 | 14,240 | 14,128 | ||||
| INTEREST EXPENSE | ||||||||
| Deposits | 4,104 | 4,053 | 4,111 | 4,065 | ||||
| Borrowed funds | 3,881 | 3,841 | 3,743 | 3,888 | ||||
| Total interest expense | 7,985 | 7,894 | 7,854 | 7,953 | ||||
| Net interest income | 6,733 | 6,419 | 6,386 | 6,175 | ||||
| PROVISION FOR LOAN LOSSES | 150 | 150 | 150 | 150 | ||||
| Net interest income after provision for loan loss | 6,583 | 6,269 | 6,236 | 6,025 | ||||
| NON-INTEREST INCOME | ||||||||
| Deposit service fees | 906 | 879 | 826 | 887 | ||||
| Loan service fees | 381 | 346 | 292 | 330 | ||||
| Insurance service fees | 552 | 622 | 543 | 499 | ||||
| Investment service fees | 189 | 144 | 113 | 94 | ||||
| Real estate lease income | 298 | 271 | 294 | 298 | ||||
| Gain on sale of securities, net | - | - | - | - | ||||
| Gain on sale of loans, net | 60 | 66 | 136 | 203 | ||||
| Gain on sale of premises and equipment, net | 1 | - | 10 | - | ||||
| Other operating income | 25 | 16 | 28 | 24 | ||||
| Total non-interest income | 2,412 | 2,344 | 2,242 | 2,335 | ||||
| NON-INTEREST EXPENSE | ||||||||
| Compensation and benefits | 4,237 | 4,068 | 3,993 | 3,785 | ||||
| Office operations | 1,006 | 956 | 986 | 1,164 | ||||
| Occupancy | 649 | 624 | 635 | 687 | ||||
| Loan servicing | 130 | 129 | 110 | 143 | ||||
| Outside and professional services | 250 | 258 | 432 | 354 | ||||
| Marketing | 278 | 289 | 243 | 219 | ||||
| Other operating expenses | 799 | 778 | 710 | 663 | ||||
| Total non-interest expense | 7,349 | 7,102 | 7,109 | 7,015 | ||||
| INCOME BEFORE PROVISION FOR FEDERAL INCOME TAX | 1,646 | 1,511 | 1,369 | 1,345 | ||||
| PROVISION FOR FEDERAL INCOME TAX | 574 | 529 | 479 | 471 | ||||
| NET INCOME | $ 1,072 | $ 982 | $ 890 | $ 874 | ||||
| EARNINGS PER COMMON SHARE | ||||||||
| Basic | $ 0.18 | $ 0.16 | $ 0.15 | $ 0.15 | ||||
| Diluted | $ 0.18 | $ 0.16 | $ 0.15 | $ 0.15 | ||||
| Weighted average shares outstanding - Basic | 5,983,586(1) | 5,995,114(2) | 5,976,430(3) | 5,958,304(4) | ||||
| Weighted average shares outstanding - Diluted | 5,983,586 | 6,073,991 | 6,094,582 | 6,022,936 | ||||
| (1) | Weighted average shares outstanding - Basic includes 212,593 vested and ratably earned shares of the 327,700 restricted shares granted and issued under the MRP, net of forfeited shares. |
| (2) | Weighted average shares outstanding - Basic includes 196,818 vested and ratably earned shares of the 329,300 restricted shares granted and issued under the MRP, net of forfeited shares. |
| (3) | Weighted average shares outstanding - Basic includes 180,708 vested and ratably earned shares of the 321,300 restricted shares granted and issued under the MRP, net of forfeited shares. |
| (4) | Weighted average shares outstanding - Basic includes 165,203 vested and ratably earned shares of the 322,800 restricted shares granted and issued under the MRP, net of forfeited shares. |
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Rainier Pacific Financial Group, Inc. & Subsidiary
Selected Information and Ratios
(Dollars in Thousands)
| As of | ||||||||||
| September 30, 2007 | June 30, 2007 | March 31, 2007 | December 31, 2006 | September 30, 2006 | ||||||
| Loan portfolio composition: | ||||||||||
| Real estate: | ||||||||||
| One- to four-family residential | $ 78,621 | $ 79,018 | $ 80,324 | $ 81,542 | $ 85,387 | |||||
| Five or more family residential | 149,474 | 159,137 | 161,273 | 163,060 | 162,741 | |||||
| Commercial | 214,130 | 215,442 | 203,732 | 195,854 | 190,563 | |||||
| Total real estate | 442,225 | 453,597 | 445,329 | 440,456 | 438,691 | |||||
| Real estate construction: | ||||||||||
| One- to four-family residential | 70,867 | 72,838 | 75,060 | 75,508 | 67,115 | |||||
| Five or more family residential | 2,019 | 3,187 | 3,640 | 4,180 | 4,875 | |||||
| Commercial | 1,834 | - | - | - | - | |||||
| Total real estate construction | 74,720 | 76,025 | 78,700 | 79,688 | 71,990 | |||||
| Consumer: | ||||||||||
| Automobile | 23,711 | 26,623 | 29,298 | 31,888 | 33,656 | |||||
| Home equity | 44,537 | 44,610 | 42,738 | 42,718 | 41,571 | |||||
| Credit cards | 22,601 | 22,018 | 21,936 | 23,327 | 21,965 | |||||
| Other | 7,383 | 7,310 | 7,494 | 8,179 | 8,593 | |||||
| Total consumer | 98,232 | 100,561 | 101,466 | 106,112 | 105,785 | |||||
| Commercial/business | 18,142 | 17,202 | 13,005 | 13,122 | 12,241 | |||||
| Subtotal | 633,319 | 647,385 | 638,500 | 639,378 | 628,707 | |||||
| Less: Allowance for loan losses | (8,142) | (8,235) | (8,276) | (8,283) | (8,414) | |||||
| Total loans, net | $ 625,177 | $ 639,150 | $ 630,224 | $ 631,095 | $ 620,293 | |||||
| Sold loans, serviced for others | $ 113,306 | $ 113,434 | $ 112,669 | $ 110,297 | $ 107,100 | |||||
| Non-performing assets: | ||||||||||
| Loans 90 days or more past due | $ 197 | $ 217 | $ 224 | $ 241 | $ 194 | |||||
| Repossessed assets | 23 | 16 | 21 | 33 | 8 | |||||
| Other real estate owned | - | - | - | - | - | |||||
| Total non-performing assets | $ 220 | $ 233 | $ 245 | $ 274 | $ 202 | |||||
| Loans greater than 30 days delinquent | $ 1,762 | $ 1,651 | $ 1,684 | $ 1,776 | $ 1,516 | |||||
| Loans greater than 30 days delinquent as a percentage of loans | 0.28% | 0.26% | 0.26% | 0.28% | 0.24% | |||||
| Non-performing loans as a percentage of loans | 0.03% | 0.03% | 0.04% | 0.04% | 0.03% | |||||
| Non-performing assets as a percentage of assets | 0.02% | 0.03% | 0.03% | 0.03% | 0.02% | |||||
| Allowance for loan loss as a percentage of non- performing loans | 4,132.99% | 3,794.93% | 3,694.64% | 3,436.93% | 4,337.11% | |||||
| Allowance for loan loss as a percentage of non- performing assets | 3,700.91% | 3,534.33% | 3,377.96% | 3,022.99% | 4,165.35% | |||||
| Allowance for loan loss as a percentage of total loans | 1.29% | 1.27% | 1.30% | 1.30% | 1.34% | |||||
| Core deposits (all deposits, excluding CDs) | $ 236,411 | $ 242,446 | $ 242,442 | $ 220,352 | $ 224,267 | |||||
| Non-core deposits (CDs) | 224,506 | 217,870 | 224,293 | 237,073 | 234,227 | |||||
| Total deposits | $ 460,917 | $ 460,316 | $ 466,735 | $ 457,425 | $ 458,494 | |||||
| Loans/Deposits | 137.40% | 140.64% | 136.80% | 139.78% | 137.12% | |||||
| Equity/Assets | 10.16% | 9.94% | 9.79% | 9.73% | 9.63% | |||||
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Rainier Pacific Financial Group, Inc. & Subsidiary
Selected Information and Ratios
(Dollars in Thousands)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||
| 2007 | 2006 | 2007 | 2006 | |||||
| Loan growth (decline) | (2.17%) | 3.34% | (0.95%) | 7.86% | ||||
| Deposit growth | 0.13% | 2.02% | 0.76% | 4.67% | ||||
| Equity growth (decline) | (0.30%) | 1.73% | 2.06% | 2.40% | ||||
| Asset growth (decline) | (2.50%) | (1.97%) | (2.26%) | 3.47% | ||||
| Loans originated | $ 46,053 | $ 70,829 | $ 147,490 | $ 174,869 | ||||
| Loans sold | $ 5,127 | $ 4,970 | $ 17,504 | $ 11,987 | ||||
| Loans charged-off, net | $ 242 | $ 145 | $ 590 | $ 632 | ||||
| Increase in non-interest income | 4.73% | 25.57% | 6.92% | 19.11% | ||||
| Increase (decrease) in non-interest expense | 0.52% | 8.68% | (0.62%) | 7.57% | ||||
| Net charge-offs to average loans | 0.15% | 0.09% | 0.12% | 0.14% | ||||
| Efficiency ratio | 80.36% | 84.85% | 81.25% | 85.57% | ||||
| Return on assets | 0.48% | 0.33% | 0.44% | 0.31% | ||||
| Return on equity | 4.78% | 3.49% | 4.40% | 3.26% | ||||
| Interest-earning assets: | ||||||||
| Yield on loans | 7.53% | 7.22% | 7.35% | 6.99% | ||||
| Yield on investments | 5.41% | 5.28% | 5.36% | 4.88% | ||||
| Yield on FHLB stock | 0.60% | 0.00% | 0.53% | 0.00% | ||||
| Yield on interest-earning assets | 6.94% | 6.60% | 6.78% | 6.30% | ||||
| Interest-bearing liabilities: | ||||||||
| Cost of deposits | 3.81% | 3.67% | 3.84% | 3.29% | ||||
| Cost of borrowed funds | 4.58% | 4.41% | 4.49% | 4.15% | ||||
| Cost of interest-bearing liabilities | 4.15% | 4.01% | 4.13% | 3.69% | ||||
| Net interest rate spread | 2.79% | 2.59% | 2.65% | 2.61% | ||||
| Net interest margin | 3.20% | 2.96% | 3.06% | 2.95% | ||||
| Net interest margin-quarter ended 09/30/2007 | 3.20% | |||||||
| Net interest margin-quarter ended 06/30/2007 | 3.01% | |||||||
| Net interest margin-quarter ended 03/31/2007 | 2.96% | |||||||
| Net interest margin-quarter ended 12/31/2006 | 2.92% | |||||||
| Net interest margin-quarter ended 09/30/2006 | 2.96% | |||||||
| As of | ||||||||||
| September 30, | June 30, | March 31, | December 31, | September 30, | ||||||
| 2007 | 2007 | 2007 | 2006 | 2006 | ||||||
| Shares outstanding at end of period | 6,109,633(1) | 6,144,259(2) | 6,128,485(3) | 6,129,511(4) | 6,142,537(5) | |||||
| Book value per share | $ 14.67 | $ 14.63 | $ 14.49 | $ 14.33 | $ 14.12 | |||||
| Tangible book value per share | $ 14.15 | $ 14.11 | $ 13.96 | $ 13.79 | $ 13.57 | |||||
| (1) | Shares outstanding represent 6,516,870 shares issued (including 115,108 unvested restricted shares granted under the MRP), less 407,237 unallocated shares under the ESOP. |
| (2) | Shares outstanding represent 6,568,470 shares issued (including 132,482 unvested restricted shares granted under the MRP), less 424,211 unallocated shares under the ESOP. |
| (3) | Shares outstanding represent 6,569,670 shares issued (including 140,592 unvested restricted shares granted under the MRP), less 441,185 unallocated shares under the ESOP. |
| (4) | Shares outstanding represent 6,587,670 shares issued (including 157,597 unvested restricted shares granted under the MRP), less 458,159 unallocated shares under the ESOP. |
| (5) | Shares outstanding represent 6,617,670 shares issued (including 173,488 unvested restricted shares granted under the MRP), less 475,133 unallocated shares under the ESOP. |
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