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 OCTOBER 21, 2005
PACIFIC STATE BANCORP REPORTS RECORD PROFITS
AND ASSET GROWTH
Stockton, California - October 21, 2005 -
Steven A. Rosso, President and C.E.O. of Pacific State Bancorp (NASDAQ/PSBC),
reported record profits for the Stockton, California based financial
institution. PSBC reported 3rd quarter net income of $1,198,000 and year-to-date
net income of $3,203,000 for the period ending September 30, 2005. PSBC reported
Total Assets as of September 30, 2005 of $293,650,000. Rosso noted that the
financial performance increases reflected strong annual and quarter over quarter
improvement.
PSBC quarter over quarter for September 30, 2005 compared to September 30, 2004
financial performance statistics are as follows:
Balance Sheet:
o Total Fed Funds, Interest Bearing deposits in banks and Investment
Securities as of 9/30/05: $37,851,000, an increase of $5,523,000 or
17.08%
o Net Loans as of 9/30/05: $219,002,000, an increase of $30,813,000 or
16.37%
o Total Assets as of 9/30/05: $293,650,000, an increase of $42,965,000
or 17.14%
o Non-Interest Deposits as of 9/30/05: $61,509,000, an increase of
$10,009,000 or 19.43%
o Total Deposits as of 9/30/05: $258,950,000, an increase of $39,938,000
or 18.24%
o Total Shareholders Equity as of 9/30/05: $20,131,000, an increase of
$4,195,000 or 26.32%
Income Statement:
o Total Interest Income for the quarter ended 9/30/05: $5,117,000, an
increase of $1,746,000 or 51.79%
o Total Interest Expense for the quarter ended 9/30/05: $1,365,000, an
increase of $562,000 or 70.00%
o Net Interest Income for the quarter ended 9/30/05: $3,752,000, an
increase of $1,184,000 or 46.11%
o Non-Interest Income for the quarter ended 9/30/05: $577,000, a
decrease of $240,000 or (29.38%). The decline in non-interest income
was due to a reduction in Service Charges, Mortgage Fees, and Gain on
Sale of loan Income as compared to the 3rd quarter of 2004.
o Total Non-Interest Expense for the quarter ended 9/30/05: $2,361,000,
an increase of $521,000 or 28.32%. The primary reason for the increase
in non-interest expense was the cost associated with the Castro Valley
LPO and company wide salary expense increases as compared to the 3rd
quarter of 2004.
o Net Income for the quarter ended 9/30/05: $1,198,000, an increase of
$304,000 or 34.00%
o Return on Average Assets for the quarter ended 9/30/05: 1.69% up from
1.46% as of 9/30/04
o Return on Equity for the quarter ending 9/30/05: 24.76% up from 23.53%
as of 9/30/04
o Efficiency Ratio for the quarter ending 9/30/05: 54.54% improving from
54.36% as of 9/30/04
o Basic Earnings per share for the quarter ending 9/30/05: $0.35, an
increase of $0.09 per share or 34.62%
o Diluted Earnings per share for the quarter ending 9/30/05: $0.31, an
increase of $0.07 per share or 29.17%
PSBC Year-To-Date financial performance for the Nine Month period ending
September 30, 2005 is as follows:
Balance Sheet
o Fed Funds as of 9/30/05: $16,763,000, an increase of 100% from year
end 2004. Interest Bearing Deposits in other banks as of 9/30/05:
$100,000, a decline of $6,000,000 or (98.36%) from year end 2004.
Investment securities as of 9/30/05: $20,988,000, an increase of
$3,506,000 or 20.05% from year end 2004
o Net Loans as of 9/30/05: $219,202,000, an increase of $19,667,000 or
9.86% from year end 2004
o Total Assets as of 9/30/05: $293,650,000, an increase of $39,289,000
or 15.45% from year end 2004
o Non-Interest Bearing Deposits as of 9/30/05: $61,509,000, an increase
of $9,529,000 or 18.33% from year end 2004
o Total Deposits as of 9/30/05: $258,950,000, an increase of $35,189,000
or 15.73% from year end 2004
o Total Shareholders Equity as of 9/30/05: $20,131,000, an increase of
$3,301,000 or 19.61% from year end 2004
Income Statement
o Total Interest Income year-to-date 9/30/05: $13,574,000, an increase
of $4,066,000 or 42.76% compared to 9/30/04
o Total Interest Expense year-to-date 9/30/05: $3,644,000, an increase
of $1,550,000 or 74.02% compared to 9/30/04
o Net Interest Income year-to-date 9/30/05: $9,930,000, an increase of
$2,516,000 or 33.94% compared to 9/30/04
o Non-Interest Income year-to-date 9/30/05: $1,943,000, a decrease of
$46,000 or (2.31%) compared to 9/30/04
o Total Non-Interest Expense year-to-date 9/30/05: $6,588,000, an
increase of $1,269,000 or 23.86% compared to 9/30/04
o Net Income year-to-date 9/30/05: $3,203,000, an increase of $875,000
or 37.59% compared to 9/30/04
o Return on Average Assets year-to-date 9/30/05 1.57% up from 1.39% as
of 9/30/04
o Return on Equity year-to-date 9/30/05 23.65% up from 21.72% as of
9/30/04
o Efficiency Ratio year-to-date 9/30/05 55.49% improving from 56.57% as
of 9/30/04
o Basic Earnings per share year-to-date 9/30/05 $0.93, an increase of
$0.30 per share or 47.62%
o Diluted Earnings per share year-to-date 9/30/05 $0.82, an increase of
$0.14 per share or 20.59%
Attached is certain additional unaudited financial data supporting the above
financial information. If 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 be obtained by
visiting the Company website -www.pacificstatebank.com.
PACIFIC STATE BANCORP
CONSOLIDATED CONDENSED BALANCE SHEET
Unaudited
(unaudited) 10K
September 30, December 31,
(in thousands, except share amounts) 2005 2004
- --------------------------------------------------------------------------- ------------- -------------
Assets
- ------
Cash and due from banks $ 16,580 $ 12,108
Federal funds sold 16,763 0
Interest -bearing deposits in banks 100 6,100
Investment securities - available for sale (carrying value of $22,215 in
2005 and $17,407 in 2004) 20,988 17,482
Loans, less allowance for loan losses of $2,214 in 2005 and $2,214 in 2004 219,002 199,535
Bank premises and equipment, net 9,479 9,748
Company owned Life Insurance 4,806 4,246
Accrued interest receivable and other assets 5,932 5,142
------------- -------------
Total assets $ 293,650 $ 254,361
============= =============
Liabilities and Shareholders' Equity
- ------------------------------------
Deposits:
Non-interest bearing $ 61,509 $ 51,980
Interest bearing 197,441 171,781
------------- -------------
Total deposits 258,950 223,761
Other Borrowings 4,000 4,000
Subordinated debentures 8,764 8,764
Accrued interest payable and other liabilities 1,805 1,006
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Total liabilities 273,519 237,531
Commitments and contingencies
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 3,489,982 in 2005 and 3,448,042 in 2004 7,291 7,159
Retained earnings 12,829 9,626
Accumulated other comprehensive (loss) income, net of tax 11 45
------------- -------------
Total shareholders' equity 20,131 16,830
Total liabilities and shareholders' equity $ 293,650 $ 254,361
============= =============
PACIFIC STATE BANCORP
INCOME STATEMENT
September 30, September 30,
Three Months Ended Nine Months Ended
--------------------------- ---------------------------
(in thousands, except share amounts) 2005 2004 2005 2004
- ------------------------------------------------ ------------ ------------ ------------ ------------
Interest income:
Interest and fees on loans $ 4,836 $ 3,200 $ 12,716 $ 9,094
Interest on federal funds sold 84 27 209 42
Interest on investment securities 197 144 649 372
------------ ------------ ------------ ------------
Total interest income 5,117 3,371 13,574 9,508
Interest expense:
Interest on deposits 1,199 671 3,205 1,748
Trust preferred securities 145 101 372 251
Interest on borrowings 21 31 67 95
------------ ------------ ------------ ------------
Total interest expense 1,365 803 3,644 2,094
------------ ------------ ------------ ------------
Net interest income 3,752 2,568 9,930 7,414
Provision for loan losses 90 138 210 366
------------ ------------ ------------ ------------
Net interest income after
provision for loan losses 3,662 2,430 9,720 7,048
------------ ------------ ------------ ------------
Non-interest income:
Service charges 197 286 567 891
Other fee income 238 291 648 785
Gain from sale of loans 142 240 728 313
------------ ------------ ------------ ------------
Total non-interest income 577 817 1,943 1,989
Non-Interest expenses:
Salaries and employee benefits 1,255 853 3,563 2,580
Occupancy 224 200 618 536
Furniture and equipment 156 125 436 354
Other 726 662 1,971 1,849
------------ ------------ ------------ ------------
Total Non-Interest expenses 2,361 1,840 6,588 5,319
------------ ------------ ------------ ------------
Income before income taxes 1,878 1,407 5,075 3,718
Income tax expense 680 513 1,872 1,390
------------ ------------ ------------ ------------
Net income $ 1,198 $ 894 $ 3,203 $ 2,328
============ ============ ============ ============
Basic earnings per share $ 0.35 $ 0.26 $ 0.93 $ 0.63
============ ============ ============ ============
Diluted earnings per share $ 0.31 $ 0.24 $ 0.82 $ 0.68
============ ============ ============ ============
Weighted average common shares outstanding 3,467,819 3,437,575 3,459,428 3,407,185
Weighted average common and common equivalent
shares outstanding 3,926,957 3,784,982 3,890,905 3,710,882
PACIFIC STATE BANCORP
YIELD ANALYSIS
FOR QUARTER-TO-DATE ENDED SEPTEMBER 30, 2005
FOR THE THREE MONTHS ENDED FOR THE THREE MONTHS ENDED
ENDED SEPT 30, 2005 ENDED SEPTEMBER 30, 2004
-------------------------------------- ------------------------------------
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME OR YIELD OR AVERAGE INCOME OR YIELD OR
BALANCE EXPENSE COST BALANCE EXPENSE COST
---------- ---------- ---------- ---------- ---------- ----------
ASSETS:
- -------
Interest-earning assets:
Loans 220,066 4,836 8.72% 184,900 3,200 6.87%
Investment securities 18,835 192 4.04% 16,076 139 3.36%
Federal funds sold 11,531 84 2.89% 25,493 27 0.42%
Interest Bearing Deposits in Banks 546 5 3.64% 2,000 5 0.99%
---------- ---------- ---------- ---------- ----------
Total average earning assets 250,977 5,117 8.09% 228,469 3,371 5.85%
Non-earning assets:
Cash and due from banks 14,281 12,769
Other assets 15,918 2,488
---------- ----------
Total average assets 281,177 243,726
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities:
Deposits
Interest-bearing Demand 103,358 595 2.29% 58,941 257 1.73%
Savings 6,691 9 0.51% 6,936 5 0.27%
Time Deposits 77,217 595 3.06% 91,215 409 1.78%
Other borrowing 4,217 166 15.62% 13,775 132 3.80%
Total average interest-bearing
liabilities 191,484 1,365 2.83% 170,867 803 1.86%
Noninterest-bearing liabilities:
Demand deposits 61,156 50,231
Other liabilities 169 7,557
---------- ----------
Total liabilities 252,809 228,655
SHAREHOLDERS' EQUITY: 19,215 15,072
---------- ----------
Total average liabilities and
shareholders' equity 272,024 243,726
========== ==========
---------- ----------
Net interest income 3,752 2,565
========== ==========
Yield on interest-earning assets 8.09% 5.85%
Cost of funding interest-earning assets 2.16% 1.39%
---------- ----------
Net interest margin 5.93% 4.45%
========== ==========
PACIFIC STATE BANCORP
YIELD ANALYSIS
FOR YEAR-TO-DATE ENDED SEPTEMBER 30, 2005
FOR THE NINE MONTHS ENDED FOR THE NINE MONTHS ENDED
ENDED SEPT 30, 2005 ENDED SEPTEMBER 30, 2004
-------------------------------------- ------------------------------------
INTEREST AVERAGE INTEREST AVERAGE
AVERAGE INCOME OR YIELD OR AVERAGE INCOME OR YIELD OR
BALANCE EXPENSE COST BALANCE EXPENSE COST
---------- ---------- ---------- ---------- ---------- ----------
ASSETS:
- -------
Interest-earning assets:
Loans 210,847 12,717 8.06% 173,780 9,094 7.00%
Investment securities 17,977 482 3.58% 13,741 357 3.47%
Federal funds sold 9,946 209 2.81% 5,264 42 1.07%
Interest Bearing Deposits in Banks 4,392 166 5.05% 3,111 15 0.64%
---------- ---------- ---------- ---------- ----------
Total average earning assets 243,162 13,574 7.46% 195,896 9,508 6.49%
Non-earning assets:
Cash and due from banks 14,044 11,222
Other assets 15,571 16,311
---------- ----------
Total average assets 272,777 223,429
========== ==========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Interest-bearing liabilities:
Deposits
Interest-bearing Demand 103,122 1,733 2.25% 55,706 494 1.19%
Savings 6,968 27 0.52% 6,478 11 0.23%
Time Deposits 74,139 1,445 2.61% 88,516 1,243 1.88%
Other borrowing 12,873 439 4.56% 13,964 346 3.31%
Total average interest-bearing
liabilities 197,102 3,644 2.47% 164,664 2,094 1.70%
========== ==========
Noninterest-bearing liabilities:
Demand deposits 54,022 44,154
Other liabilities 3,547 278
---------- ----------
Total liabilities 254,671 209,096
Shareholders' equity: 18,106 14,333
---------- ----------
Total average liabilities and
shareholders' equity 272,777 223,429
========== ==========
---------- ----------
Net interest income 9,930 7,414
========== ==========
Yield on interest-earning assets 7.46% 6.49%
Cost of funding interest-earning assets 2.00% 1.43%
---------- ----------
Net interest margin 5.46% 5.06%
========== ==========
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.
While the Company intends to trade on NASDAQ, there are no assurances of the
effect, if any, that listing with NASDAQ may have upon trading in the Company's
shares. Pacific State Bancorp disclaims any intent or obligation to update these
forward-looking statements.