Exhibit 99.1
Pacific State Bancorp 1899 West March Lane
Stockton, CA 95207
209/870-3214 Telephone
209/870-3255 Fax
Press Release
- --------------------------------------------------------------------------------
For Immediate Release February 10, 2006
Pacific State Bancorp Reports Record Annual Profits
For the Ninth Consecutive year
2005 Net Income up 35.2%
Stockton, California - February 10, 2006
Steven A. Rosso, President and CEO of Pacific State Bancorp, (NASDAQ/PSBC), the
parent company of Pacific State Bank, announced record annual earnings for the
9th consecutive year. The Company also reported double digit growth in assets
for the 4th consecutive year. PSBC has experienced a five year growth rate in
earnings of 314%% representing an average annual growth rate of 36% over that
period. Assets have also seen strong growth over the same period with a
cumulative growth of 172% since 12/31/01. This represents an average annual
growth rate during the period of 23%. This combined growth in assets and
earnings has provided the foundation for PSBC's continued exceptional financial
performance in 2005.
Pacific State Bancorp also announced record 4th quarter net income of $1,083,000
for the Stockton, California based financial institution. For the year ended
December 31, 2005 net income was $4,286,000. PSBC reported Total Assets as of
December 31, 2005 of $309,611,000. Rosso noted that the financial performance
increases reflect continued annual and quarter over quarter improvement.
PSBC annual financial performance statistics compared to the prior year are as
follows:
Balance Sheet:
o Total Fed Funds, Interest Bearing deposits in banks and Investment
Securities as of 12/31/05: $34,435,000, an increase of $10,853,000 or
46.02%
o Net Loans as of 12/31/05: $241,556,000, an increase of $42,021,000 or
21.06%
o Total Assets as of 12/31/05: $309,611,000, an increase of $55,250,000
or 21.72%
o Non-Interest Deposits as of 12/31/05: $68,657,000, an increase of
$16,677,000 or 32.08%
o Total Deposits as of 12/31/05: $273,674,000, an increase of
$49,313,000 or 22.04%
o Total Shareholders Equity as of 12/31/05: $21,373,000, an increase of
$4,543,000 or 26.99%
Income Statement
o Total Interest Income for the year ended 12/31/05: $18,782,000, an
increase of $5,273,000 or 39.03%
o Total Interest Expense for the year ended 12/31/05: $5,216,000, an
increase of $2,188,000 or 71.55%
o Net Interest Income for the year ended 12/31/05: $13,536,000, an
increase of $3,085,000 or 29.52%
o Non-Interest Income for the year ended 12/31/05: $2,481,000, a
decrease of $44,000 or (1.74%)
o Total Non-Interest Expense for the year ended 12/31/05: $9,110,000, an
increase of $1,681,000 or 22.63%
o Net Income for the year ended 12/31/05: $4,286,000, an increase of
$1,117,000 or 35.25%
o Return on Average Assets for the year ended 12/31/05: 1.52% up from
1.37%
o Return on Equity for the year ended 12/31/05: 22.44% up from 21.65%
o Efficiency Ratio for the year ended 12/31/05: 56.88% improving from
57.25%
o Basic Earnings per share for the year ended 12/31/05: $1.23, an
increase of $0.31 per share or 33.70%
o Diluted Earnings per share for the year ended 12/31/05: $1.10, an
increase of $0.26 per share or 30.95%
PSBC 4th quarter December 31, 2005 financial statistics compared to the same
quarter in the prior year are as follows:
Income Statement:
o Total Interest Income for the quarter ended 12/31/05: $5,208,000, an
increase of $1,207,000 or 30.17 %
o Total Interest Expense for the quarter ended 12/31/05: $1,602,000, an
increase of $638,000 or 66.18%
o Net Interest Income for the quarter ended 12/31/05: $3,605,000, an
increase of $569,000 or 18.74%
o Non-Interest Income for the quarter ended 12/31/05: $538,000, an
increase of $2,000 or .3%
o Total Non-Interest Expense for the quarter ended 12/31/05: $2,522,000,
an increase of $412,000 or 19.53%. The primary reason for the increase
in non-interest expense was the cost associated with a small salary
expense increase as compared to the 4th quarter of 2004. One major
reason for increases in non-interest expense was an accrual for
litigation expense of $200,000.
o Net Income for the quarter ended 12/31/05: $1,083,000, an increase of
$242,000 or 28.78%
o Return on Average Assets for the quarter ended 12/31/05: 1.52% up from
1.31% as of 12/31/04
o Return on Equity for the quarter ending 12/31/05: 20.10% up from
20.21% as of 12/31/04
o Efficiency Ratio for the quarter ending 12/31/05: 60.86% Marginally
upward movement from 59.05% as of 12/31/04
o Basic Earnings per share for the quarter ending 12/31/05: $0.31, an
increase of $0.01 per share or 3.33%
o Diluted Earnings per share for the quarter ending 12/31/05: $0.28, an
increase of $0.14 per share or 100.00%
Attached are certain additional unaudited financial statements supporting the
above financial information. Requests for further information is required
inquires should be directed to Steven A. Rosso, President and C.E.O. of Pacific
State Bancorp: telephone 209-870-3214, or mail all request for further
information to P.O. Box 1649, Stockton, California 95201. Additional information
can also be obtained by visiting the Company website -www.pacificstatebank.com.
PACIFIC STATE BANCORP
CONSOLIDATED CONDENSED BALANCE SHEET
(unaudited)
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
(in thousands, except share amounts) December 31, December 31,
- ----------------------------------------------------------------------------------------------------------------
Assets 2005 2004
- ------
- ----------------------------------------------------------------------------------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Cash and due from banks $ 14,453 $ 12,108
- ----------------------------------------------------------------------------------------------------------------
Federal funds sold 4,667 0
- ----------------------------------------------------------------------------------------------------------------
Interest -bearing deposits in banks 0 6,100
- ----------------------------------------------------------------------------------------------------------------
Investment securities - available for sale (carrying value of $29,925 in 2005 29,768 17,482
and $17,407 in 2004)
- ----------------------------------------------------------------------------------------------------------------
Loans, less allowance for loan losses of $2,357 in 2005 and $2,214 in 2004 241,556 199,535
- ----------------------------------------------------------------------------------------------------------------
Bank premises and equipment, net 9,512 9,748
- ----------------------------------------------------------------------------------------------------------------
Company owned life insurance 4,411 4,246
- ----------------------------------------------------------------------------------------------------------------
Accrued interest receivable and other assets 5,244 5,142
------------ ------------
- ----------------------------------------------------------------------------------------------------------------
Total assets $ 309,611 $ 254,361
============ ============
- ----------------------------------------------------------------------------------------------------------------
Liabilities and Shareholders' Equity
- ------------------------------------
- ----------------------------------------------------------------------------------------------------------------
Deposits:
- ----------------------------------------------------------------------------------------------------------------
Non-interest bearing $ 68,657 $ 51,980
- ----------------------------------------------------------------------------------------------------------------
Interest bearing 204,417 171,781
- ----------------------------------------------------------------------------------------------------------------
Total deposits 273,074 223,761
- ----------------------------------------------------------------------------------------------------------------
Other borrowings 4,000 4,000
- ----------------------------------------------------------------------------------------------------------------
Subordinated debentures 8,764 8,764
- ----------------------------------------------------------------------------------------------------------------
Accrued interest payable and other liabilities 2,400 1,006
------------ ------------
- ----------------------------------------------------------------------------------------------------------------
Total liabilities 288,238 237,531
- ----------------------------------------------------------------------------------------------------------------
Shareholders' equity:
Preferred stock - no par value; 2,000,000 shares authorized;
Common stock - no par value; 24,000,000 shares authorized;
shares issued and outstanding 3,514,982 in 2005 and 3,448,042 in 2004 7,556 7,159
----------------------------
Retained earnings 13,912 9,626
- ----------------------------------------------------------------------------------------------------------------
Accumulated other comprehensive (loss) income, net of tax (95) 45
- ----------------------------------------------------------------------------------------------------------------
Total shareholders' equity 21,373 16,830
- ----------------------------------------------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 309,611 $ 254,361
============ ============
- ----------------------------------------------------------------------------------------------------------------
PACIFIC STATE BANCORP
CONSOLIDATED CONDENSED INCOME STATEMENT
(unaudited)
(Unaudited) December 31, 2005
Three months ended Twelve months ended
-------------------------------------------------
(in thousands, except share amounts) 2005 2004 2005 2004
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Interest income:
- --------------------------------------------------------------------------------------------------------
Interest and fees on loans $ 4,849 $ 3,752 $ 17,565 $ 12,846
- --------------------------------------------------------------------------------------------------------
Interest on federal funds sold 145 51 354 93
- --------------------------------------------------------------------------------------------------------
Interest on investment securities 214 198 863 570
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Total interest income 5,208 4,001 18,782 13,509
- --------------------------------------------------------------------------------------------------------
Interest expense:
- --------------------------------------------------------------------------------------------------------
Interest on deposits 1,405 816 4,610 2,564
- --------------------------------------------------------------------------------------------------------
Trust preferred securities 155 115 527 366
- --------------------------------------------------------------------------------------------------------
Interest on borrowings 42 33 109 128
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Total interest expense 1,602 964 5,246 3,058
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Net interest income 3,606 3,037 13,536 10,451
- --------------------------------------------------------------------------------------------------------
Provision for loan losses -175 138 35 504
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Net interest income after
provision for loan losses 3,781 2,899 13,501 9,947
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Non-interest income:
- --------------------------------------------------------------------------------------------------------
Service charges 191 184 758 1,075
- --------------------------------------------------------------------------------------------------------
Other fee income 266 220 914 1,005
- --------------------------------------------------------------------------------------------------------
Gain from sale of loans 81 132 809 445
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Total non-interest income 538 536 2,481 2,525
- --------------------------------------------------------------------------------------------------------
Non-interest expenses:
- --------------------------------------------------------------------------------------------------------
Salaries and employee benefits 1,179 1,234 4,742 3,814
- --------------------------------------------------------------------------------------------------------
Occupancy 164 214 782 750
- --------------------------------------------------------------------------------------------------------
Furniture and equipment 228 114 664 468
- --------------------------------------------------------------------------------------------------------
Other 951 548 2,922 2,397
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Total other expenses 2,522 2,110 9,110 7,429
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Income before income taxes 1,797 1,325 6,872 5,043
- --------------------------------------------------------------------------------------------------------
Income tax expense 714 484 2,586 1,874
---------- ---------- ---------- ----------
- --------------------------------------------------------------------------------------------------------
Net income $ 1,083 $ 841 $ 4,286 $ 3,169
========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------
Basic earnings per share $ 0.31 $ 0.24 $ 1.23 $ 0.92
========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------
Diluted earnings per share $ 0.28 $ 0.21 $ 1.10 $ 0.84
========== ========== ========== ==========
- --------------------------------------------------------------------------------------------------------
Weighted average common shares outstanding 3,470,800 3,447,507 3,460,208 3,432,023
- --------------------------------------------------------------------------------------------------------
Weighted average common and common equivalent
shares outstanding
3,899,880 3,926,155 3,886,410 3,773,173
- --------------------------------------------------------------------------------------------------------
Yield Analysis
For Year Ended December 31, 2005
For the Twelve Months Ended For the Twelve Months Ended
December 31, 2005 December 31, 2004
----------------------------------------------------------------------------
Interest Average Interest Average
Average Income or Yield or Average Income or Yield or
Assets: Balance Expense Cost Balance Expense Cost
----------------------------------------------------------------------------
Interest-earning assets:
Loans 215,907 17,565 8.14% 179,063 12,846 7.17%
Investment securities 19,694 712 3.62% 14,533 535 3.68%
Federal funds sold 11,169 354 3.17% 6,775 93 1.37%
Interest bearing deposits in banks 3,299 151 4.58% 3,396 35 1.03%
Total average earning assets 250,069 18,782 7.51% 203,766 13,509 6.63%
Non-earning assets:
Cash and due from banks 14,474 11,814
Other assets 15,746 15,573
---------- ----------
Total average assets 280,289 231,153
========== ==========
Liabilities and Shareholders' Equity:
Interest-bearing liabilities:
Deposits
Interest-bearing demand 104,922 2,384 2.27% 64,859 945 1.46%
Savings 6,307 36 0.57% 6,652 20 0.30%
Time deposits 77,567 2,190 2.82% 84,360 1,599 1.90%
Other borrowing 12,845 636 4.95% 12,968 494 3.81%
Total average interest-bearing liabilities 201,641 5,246 2.60% 168,838 3,058 1.81%
========== ==========
Noninterest-bearing liabilities:
Demand deposits 59,009 46,941
Other liabilities 986 579
--------- ----------
Total liabilities 261,636 216,358
Shareholders' equity: 18,653 14,795
--------- ----------
Total average liabilities and shareholders' equity 280,289 231,153
========== ==========
---------- ----------
Net interest income 13,536 10,451
========== ==========
Yield on interest-earning assets 7.51% 6.63%
Cost of funding interest-earning assets 2.10% 1.50%
---------- ----------
Net interest margin 5.41% 5.13%
========== ==========
SAFE HARBOR: Except for historical information contained herein, the statements
contained in this press release are forward-looking statements within the
meaning of the "safe harbor" provisions of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. These forward-looking statements are subject to risks and
uncertainties. Actual results may differ materially from those set forth in or
implied by forward-looking statements. These risks are described from time to
time in Pacific State Bancorp's Securities and Exchange Commission filings,
including its Annual Reports on Form 10-K and quarterly reports on Form 10-Q.
Pacific State Bancorp disclaims any intent or obligation to update these
forward-looking statements.