Pacific City Financial Corporation (the “Company”) (OTC Pink: PFCF), the holding company of Pacific City Bank, today reported net income of $16.4 million, or $1.21 per diluted common share compared with $14.0 million, or $1.11 per diluted common shares for the 2016 year. For the fourth quarter of 2017, net income was $2.3 million, or $0.17 per diluted common share, compared with $4.8 million, or $0.35 per diluted common share, in the previous quarter and $4.3 million, or $0.32 per diluted common share, in the year-ago quarter.
2017 Highlights
- Net income totaled $16.4 million or $1.21 per diluted common share;
- Total assets increased $215.4 million, or 17.6%, to $1,442.0 million at December 31, 2017 compared with $1,226.6 million at December 31, 2016;
- Total loans, including loans held-for-sale and net of unearned fee/cost, increased $162.0 million, or 15.7%, to $1,195.3 million at December 31, 2017 compared with $1,033.3 million at December 31, 2016;
- Total deposits increased $159.5 million, or 14.6%, to $1,251.3 million at December 31, 2017 compared with $1,091.8 million at December 31, 2016;
- Classified loans decreased $4.1 million, or 45.0%, to $5.0 million at December 31, 2017 compared with $9.1 million at December 31, 2016; and
- Loans originated totaled $591.5 million in 2017 year compared with $588.2 million in 2016 year.
- Net interest margin for 2017 increased 7 bps to 4.21% compared with 4.14% for 2016.
"We are pleased to report a strong quarter that was highlighted by the expansion in net interest income and a consistent growth in loan portfolio and deposits,” stated by Henry Kim, President and CEO. “Our net interest income in the fourth quarter of 2017 increased 3.8% to $14.9 million compared with $14.4 million in the previous quarter and increased 18.7% compared with $12.6 million in the year-ago quarter. Net interest income for 2017 increased 21.0% to $55.2 million compared with $45.6 million in 2006.”
Mr. Kim continued, “As evidenced by our loan portfolio increase of 3.8% to $1,177.8 million compared with $1,135.1 million in the third quarter of 2017 and increase of 15.5% compared with $1,019.8 million in the year-ago quarter, we are heading into 2018 with a solid momentum. Although accumulating low cost deposit continues to be a challenge in our marketplace, we managed to increase our deposits 3.1% to $1,251.3 million compared with $1,213.3 million in the third quarter of 2017 and increase 14.6% compared with $1,091.8 million in the year-ago quarter.
2017 Fourth Quarter Financial Highlights | |||||||||||||||||||||||
(dollars in thousands, except per share data) | |||||||||||||||||||||||
At or for the Three Months Ended | |||||||||||||||||||||||
Dec. 31,
2017 |
Sept. 30,
2017 |
%
change |
Dec. 31,
2016 |
%
change | |||||||||||||||||||
Net income | $ | 2,339 | $ | 4,806 | -51.3 | % | $ | 4,312 | -45.8 | % | |||||||||||||
Earnings per common share (diluted)* | 0.17 | 0.35 | -51.4 | % | 0.32 | -46.9 | % | ||||||||||||||||
Net interest income | $ | 14,933 | $ | 14,383 | 3.8 | % | $ | 12,579 | 18.7 | % | |||||||||||||
Provision for loan loss | 1,713 | 586 | 192.3 | % | 621 | 175.8 | % | ||||||||||||||||
Non-interest income | 3,362 | 3,461 | -2.9 | % | 3,645 | -7.8 | % | ||||||||||||||||
Non-interest expense | 9,620 | 8,959 | 7.4 | % | 8,071 | 19.2 | % | ||||||||||||||||
Total assets | $ | 1,441,998 | $ | 1,403,816 | 2.7 | % | $ | 1,226,642 | 17.6 | % | |||||||||||||
Net loans receivable, net of allowance and loan fee/cost | 1,177,775 | 1,135,093 | 3.8 | % | 1,019,792 | 15.5 | % | ||||||||||||||||
Total deposits | 1,251,289 | 1,213,274 | 3.1 | % | 1,091,812 | 14.6 | % | ||||||||||||||||
Return on average assets | 0.65 | % | 1.38 | % | 1.42 | % | |||||||||||||||||
Return on average stockholders' equity | 6.47 | % | 13.69 | % | 13.59 | % | |||||||||||||||||
Net interest margin | 4.26 | % | 4.23 | % | 4.16 | % | |||||||||||||||||
Efficiency ratio | 52.58 | % | 50.20 | % | 49.75 | % | |||||||||||||||||
Tangible common equity to tangible assets | 9.86 | % | 10.01 | % | 10.35 | % | |||||||||||||||||
Tangible common equity per common share * | $ | 10.60 | $ | 10.48 | $ | 9.48 | |||||||||||||||||
Tier 1 leverage ratio (consolidated) | 10.01 | % | 10.15 | % | 10.48 | % | |||||||||||||||||
* 10% stock dividend declared in January 2017 reflected retroactively as of December 31, 2016. | |||||||||||||||||||||||
RESULTS OF OPERATIONS
Net Income
Net income for 2017 increased $2.4 million, or 17.1%, to $16.4 million compared with $14.0 million in the previous year. Diluted earnings per share for 2017 was $1.21 compared with $1.11 in 2016 year. The increase in net income compared with 2016 year was primarily due to an increase of $9.6 million in net interest income, an increase of $275,000 in noninterest income, and a decrease of $456,000 in provision for loan losses, partially offset by an increase of $4.5 million in provision for income tax and an increase of $3.4 million in noninterest expense.
Comparing quarterly results, net income in the fourth quarter of 2017 decreased $2.5 million, or 51.3%, to $2.3 million compared with $4.8 million in the previous quarter and decreased $2.0 million, or 45.8%, compared with $4.3 million in the year-ago quarter. Diluted earnings per share were $0.17 in the fourth quarter of 2017 compared with $0.35 in the previous quarter and $0.32 in the year-ago quarter. The decrease of $2.5 million in net income compared with the previous quarter is primarily due to the recognition of $1.6 million in additional tax expense attributed to a re-measurement of our deferred tax assets and liabilities, an increase of $1.1 million in provision for loan losses, and an increase of $661,000 in non-interest expense, partially offset by an increase of $550,000 in net interest income.
Net Interest Income and Net Interest Margin
Net interest income before provision for loan losses for 2017 increased $9.6 million, or 21.0%, to $55.2 million compared with $45.6 million in 2016 year. Net interest income before provision for loan losses in the fourth quarter of 2017 increased $550,000, or 3.8%, to $14.9 million compared with $14.4 million in the previous quarter, and increased $2.4 million, or 18.7%, compared with $12.6 million in the year-ago quarter. The increase in net interest income compared with the previous year and the previous quarters was primarily due to an increase in interest-earning assets and multiple increases in market interest rates since December 2016.
Interest income on loans in 2017 increased $11.5 million, or 22.9%, to $61.5 million compared with $50.1 million in the previous year. The increase on interest income on loans compared with the 2016 year was primarily due to an increase in loan balance and an increase in loan yield. The average total loan balance, including loans held for sale (“LHFS”), was $1,111.2 million in 2017 compared with $961.5 million in 2016. Loan yield was 5.54% in 2017 and 5.21% in 2016.
Interest income on loans increased $832,000, or 5.2%, to $16.8 million in the fourth quarter of 2017 compared with $16.0 million in the previous quarter and increased $3.0 million, or 22.0%, compared with $13.8 million in the year-ago quarter. The increase on interest income on loans compared with the previous quarters was primarily due to an increase in loan balance. The average total loan balance, including LHFS, was $1,186.0 million in the fourth quarter of 2017 compared with $1,123.7 million in the previous quarter, and $1,040.8 million in the year-ago quarter. Loan yield was 5.63% in 2017 fourth quarter, 5.65% in 2017 third quarter, and 5.27% in 2016 fourth quarter.
Below is a table of fixed and variable interest rate loan mix accompanied by weighted average contractual rates:
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||||||
% to Gross
Loans * | WAVG
Contractual |
% to Gross
Loans * | WAVG
Contractual |
% to Gross
Loans * | WAVG
Contractual | |||||||
Fixed rate loans | 26.6% | 5.09% | 26.5% | 5.09% | 30.9% | 5.10% | ||||||
Variable rate loans | 73.4% | 5.38% | 73.5% | 5.14% | 69.1% | 4.68% | ||||||
* Includes LHFS of $5.3 million, $2.5 million, and $2.2 million at December, 31, 2107, September 30, 2017, and December 31, 2016, respectively. | ||||||||||||
Interest income on investment securities for 2017 increased $873,000, or 50.1%, to $2.6 million compared with $1.7 million in the previous year. Interest income on investment securities in the fourth quarter of 2017 increased $25,000, or 3.3%, to $772,000 compared with $747,000 in the previous quarter and increased $344,000, or 80.4% compared with $428,000 in the year-ago quarter. The increases compared with the previous year and quarters were primarily due to an increase in the size of the investment portfolio. The average balance of investment securities in 2017 was $126.9 million, compared to $95.4 million for 2016, while the yield for 2017 was 2.06% compared to 1.83% for 2016.
The average balance of investment securities was $147.5 million in the fourth quarter of 2017 compared with $140.0 million in the previous quarter, and $95.7 million in the year-ago quarter. Investment yield was 2.07% in the fourth quarter 2017 compared with 2.13% in the previous quarter, and 1.79% in the year-ago quarter.
Total interest expense in 2017 increased $3.1 million, or 44.0%, to $10.1 million compared with $7.0 million in 2016 primarily due to an increase in the average balance of interest bearing liabilities and an increase in cost of funds. The average balance of interest bearing liabilities was $868.6 million in 2017 compared with $729.2 million for 2016. The cost of funds increased primarily due to multiple increases in short term market interest rates since December 2016 combined with continuing competition for deposit customers. The cost of interest-bearing liabilities was 1.14% in 2017 compared with 0.96% in 2016. The cost of funds including non-interest bearing deposits was 0.85% in 2017 compared with 0.70% in 2016.
Total interest expense in the fourth quarter of 2017 increased $231,000, or 8.5%, to $2.9 million compared with $2.7 million in the previous quarter and increased $928,000, or 46.2%, compared with $2.0 million in the year-ago quarter. The increase was primarily due to an increase in the balance of interest bearing liabilities and an increase in the cost of interest bearing deposits. The average balance of interest bearing liabilities was $948.3 million in the fourth quarter of 2017 compared with $910.2 million in the previous quarter, and $798.4 million in the year-ago quarter. The cost of interest-bearing liabilities was 1.23% in the fourth quarter of 2017 compared with 1.18% in the previous quarter, and 1.00% in the year-ago quarter. The cost of funds including non-interest bearing deposits was 0.92% in the fourth quarter of 2017 compared with 0.87% in the previous quarter, and 0.74% in the year-ago quarter.
Net interest margin for 2017 increased 7 basis points to 4.21% compared with 4.14% in 2016 primarily due to an increase in yield on interest earning assets attributable to the several increases in prime rates since December 2016.
Net interest margin was 4.26% in the fourth quarter of 2017 compared with 4.23% in the previous quarter, and 4.16% in the year-ago quarter.
Loan Loss Provision
In 2017, the Company recognized a provision for loan losses of $1.8 million compared with $2.3 million in 2016. The provision for loan losses in the fourth quarter of 2017 increased $1.1 million to $1.7 million compared with $585,000 in the previous quarter, and increased $1.1 million compared with $621,000 in the year-ago quarter. The provision in the fourth quarter of 2017 was primarily due to an increase in charged-off loans and an increase in the size of the loan portfolio. The allowance for loan losses to gross loan ratio was 1.03% at December 31, 2017, 1.02% at September 30, 2017, and 1.10% at December 31, 2016.
In 2017, the Company recognized a net charge-off of $923,000 compared with a net charge-off of $309,000 in 2016. During the fourth quarter of 2017, the Company recognized a net charge-off of $1.1 million compared with a net recovery of $37,000 in the previous quarter, and a net charge-off of $293,000 in the year ago-quarter.
Non-interest Income
Non-interest income in 2017 increased $275,000, or 2.0%, to $13.9 million compared with $13.6 million in 2016 primarily due to an increase of $790,000 in gain on sale of SBA loans and an increase of $287,000 in servicing fees, partially offset by a decrease of $702,000 in gain on sale of home mortgage loans.
Non-interest income in the fourth quarter of 2017 decreased $99,000, or 2.9%, to $3.4 million compared with $3.5 million in the previous quarter, and decreased $283,000, or 7.8%, compared with $3.6 million in the year-ago quarter. The decrease compared with the year-ago quarter was primarily due to a decrease of $352,000 in gain on sale of SBA and residential home mortgage loans to $2.1 million compared with $2.5 million, partially offset by an increase of $99,000 in loan servicing fees.
The Bank originated $185.9 million of SBA loans and sold $127.3 million of guaranteed portion of SBA loans in 2017 compared with $153.8 million in origination and $119.3 million sold in 2016. The Bank originated $81.0 million in residential mortgage loans and sold $13.2 million of them in 2017 compared with $91.0 million in origination and $45.3 million sold in 2016.
The Bank originated $43.8 million in SBA loans and sold $29.2 million of guaranteed portion of SBA loans in the fourth quarter of 2017 compared with $39.0 million in origination and $29.5 million sold during the previous quarter, and $28.3 million in origination and $38.9 million sold during the year-ago quarter. The Bank originated $24.0 million in residential mortgage loans and sold $2.1 million of them in the fourth quarter of 2017 compared with $26.2 million in origination and $4.6 million sold in the previous quarter and $18.4 million in origination and $4.4 million sold in the year-ago quarter.
Non-interest Expenses
Non-interest expenses in 2017 increased $3.4 million, or 10.3%, to $35.9 million compared with $32.5 million in 2016, primarily due to an increase of $2.9 million in salary and employee benefits expenses, an increase of $166,000 in marketing expenses, and an increase of $131,000 in data and item processing expenses, partially offset by a decrease of $108,000 in legal and professional fees. The $2.9 million increase in salary and employee benefit expenses consisted of $728,000 due to an increase in employee headcount, $499,000 in annual salary adjustments, $973,000 in employee bonus and incentive expenses, $280,000 in employee payroll taxes, and $252,000 in employee group insurance expenses.
Non-interest expenses in the fourth quarter of 2017 increased $661,000, or 7.4%, to $9.6 million compared with $9.0 million in the previous quarter and increased $1.5 million, or 19.2%, compared with $8.1 million in the year-ago quarter. The increase compared with the previous quarter was primarily due to an increase of $546,000 in employee benefits and bonus expenses, partially offset by a decrease of $133,000 in advertisement expense. The increase compared with the year-ago quarter was primarily due to an increase of $1.2 million in salary and employee benefit expenses. The increase in salary and employee benefit expenses compared with a year ago quarter consisted of $354,000 in an increase in employee headcount and annual salary adjustments and $846,000 in employee bonuses and incentive compensation.
The Company’s efficiency ratio in 2017 was 51.97% compared with 54.92% in 2016. The Company’s efficiency ratio was 52.58% in the fourth quarter of 2017 compared with 50.20% in the previous quarter, and 49.75% in the year-ago quarter.
Income Tax Provision
The Company’s effective income tax rate was 66.41% in the fourth quarter of 2017 compared with 42.09% in the previous quarter and 42.75% in the year-ago quarter. The Company’s effective income tax rate in 2017 was 47.66% compared with 42.62% in 2016. The effective income tax rate for the fourth quarter of 2017 and full year 2017 increased compared with the previous quarters and full year 2016 primarily due to a re-measurement of deferred tax assets and liability related to the enactment of the Tax Cuts and Jobs Act (the “Tax Reform Act”) on December 22, 2017. Beginning in 2018, the Tax Reform Act reduces the Federal tax rate for corporations from 35% to 21% and changes or limits certain tax deductions. As a result of the lower corporate tax rate, during the fourth quarter of 2017, the Company recorded a onetime revaluation adjustment of $1.6 million to reduce its deferred tax assets, which incurred income tax expense and reduced fourth quarter and full year earnings.
BALANCE SHEET SUMMARY
Total Assets
Total assets increased $38.2 million, or 2.7%, to $1,442.0 million at December 31, 2017 compared with $1,403.8 million at September 30, 2017, and increased $215.4 million, or 17.6%, compared with $1,226.6 million at December 31, 2016.
Loans
Total loans receivable including loans held-for-sale, net of deferred costs and fees, increased $46.1 million, or 4.0%, to $1,195.3 million at December 31, 2017 compared with $1,149.2 million at September 30, 2017, and increased $162.0 million, or 15.7%, compared with $1,033.3 million at December 31, 2016.
During the fourth quarter of 2017, the Company originated $154.3 million in loans, sold $29.2 million of SBA guaranteed portion of the loans and $2.1 million in residential mortgage loans, recognized $75.7 million in loan principal paydown/payoff, and charged-off $1.2 million. During the previous quarter, the Company originated $160.2 million in loans, sold $29.5 million of SBA guaranteed portion of the loans and $4.6 million in residential mortgage loans, recognized $65.7 million in loan principal paydown/payoff, and charged-off $93,000.
The table below consists of gross loan balance by type:
Loan type (dollars in thousands) | |||||||||||||||||
Dec. 31,
2017 |
Sept. 30,
2017 |
Percentage
Change | Dec. 31, 2016 |
Percentage
Change | |||||||||||||
Real estate loans | $ | 686,863 | $ | 668,657 | 2.7 | % | $ | 612,301 | 12.2 | % | |||||||
Residential mortgage loans | 168,091 | 154,812 | 8.6 | % | 140,688 | 19.5 | % | ||||||||||
SBA loans | 160,637 | 156,293 | 2.8 | % | 130,577 | 23.0 | % | ||||||||||
Commercial industrial loans | 140,208 | 134,564 | 4.2 | % | 113,642 | 23.4 | % | ||||||||||
Consumer loans | 33,869 | 32,053 | 5.7 | % | 33,723 | 0.4 | % | ||||||||||
Deferred loan fees/costs | 331 | 365 | -9.3 | % | 181 | 82.9 | % | ||||||||||
Gross loans receivables | 1,189,999 | 1,146,744 | 3.8 | % | 1,031,112 | 15.4 | % | ||||||||||
Loans held for sale | 5,297 | 2,501 | 111.8 | % | 2,150 | 146.4 | % | ||||||||||
Total loans | $ | 1,195,296 | $ | 1,149,245 | 4.0 | % | $ | 1,033,262 | 15.7 | % | |||||||
Investment Securities
Total investment securities increased $7.9 million, or 5.5%, to $150.8 million at December 31, 2017 compared with $142.9 million at September 30, 2017, and increased $50.3 million, or 50.1%, compared with $100.4 million at December 31, 2016. The increase in investment securities portfolio compared with the previous quarter was primarily due to the purchase of $15.4 million in investment securities, partially offset by $6.4 million in principal pay-downs, $248,000 in net premium amortization, and $899,000 in decline-in fair market value. The increase in investment securities portfolio compared with the year-ago quarter was primarily due to the purchase of $73.0 million in investment securities, partially offset by $21.0 million in principal pay-downs or called securities, $818,000 in net premium amortization, and $778,000 in decline-in fair market value. $73.0 million in investment securities purchased consisted of $6.9 million US government agency securities, $32.5 million in Mortgage-backed securities, and $33.6 million in Collateralized mortgage obligations.
Deposits
Total deposits increased $38.0 million, or 3.1%, to $1,251.3 million at December 31, 2017 compared with $1,213.3 million at September 30, 2017, and increased $159.5 million, or 14.6%, compared with $1,091.8 million at December 31, 2016. The demand deposit to total deposit ratio was 25.5% at December 31, 2017 compared with 26.8% at September 30, 2017, and 25.1% at December 31, 2016.
The table below consists of deposit mix by period:
Deposit mix (Dollars in thousands) | |||||||||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||||||||||||
Amount | Percentage | Amount | Percentage | Amount | Percentage | ||||||||||||||
Demand deposits | $ | 319,025 | 25.5 | % | $ | 324,690 | 26.8 | % | $ | 274,003 | 25.1 | % | |||||||
Now accounts | 10,324 | 0.8 | % | 8,908 | 0.7 | % | 7,837 | 0.7 | % | ||||||||||
Money market accounts | 299,390 | 23.9 | % | 307,046 | 25.3 | % | 303,234 | 27.8 | % | ||||||||||
Savings | 8,164 | 0.7 | % | 9,250 | 0.8 | % | 8,858 | 0.8 | % | ||||||||||
Time deposits under $250K | 295,274 | 23.6 | % | 288,830 | 23.8 | % | 252,491 | 23.1 | % | ||||||||||
Time deposits of $250K and over | 166,612 | 13.3 | % | 157,044 | 12.9 | % | 127,623 | 11.7 | % | ||||||||||
State & Broker CDs | 152,500 | 12.2 | % | 117,506 | 9.7 | % | 117,766 | 10.8 | % | ||||||||||
Total deposits | $ | 1,251,289 | 100.0 | % | $ | 1,213,274 | 100.0 | % | $ | 1,091,812 | 100.0 | % | |||||||
Borrowings
The balance of borrowings from the Federal Home Loan Bank of San Francisco (FHLBSF) at December 31, 2017 and at September 30, 2017 was $40.0 million and none at December 31, 2016. The FHLBSF borrowings consist of fixed interest rates with original maturity terms ranging from one to five years.
Stockholders’ Equity
Stockholders’ equity increased $1.6 million, or 1.2% to $142.2 million at December 31, 2017 compared with $140.5 million at September 30, 2017, and increased $15.2 million, or 11.9% compared with $127.0 million at December 31, 2016. On November 13, 2017, the Company declared a cash dividend of $0.03 per common share that was paid on December 15, 2017.
CREDIT QUALITY
Non-performing Assets
Non-performing loans (“NPL”) increased $1.7 million at December 31, 2017 to $3.2 million compared with $1.5 million at September 30, 2017, and increased $1.4 million compared with $1.8 million at December 31, 2016. The increase of $1.7 million compared with the previous quarter was primarily due to the placement of $3.0 million of loans on nonaccrual status, partially offset by a charge-off of $984,000 and pay-down and pay-off of $265,000 in non-accrual loans. The NPL to gross loans ratios was 0.27% at December 31, 2017, 0.13% at September 30, 2017, and 0.18% at December 31, 2016.
OREO decreased $42,000 to $99,000 at December 31, 2017 compared with $141,000 at September 30, 2017 and decreased $407,000 compared with $506,000 at December 31, 2016. The decreases compared with the previous quarters was due to the recognition of valuation allowance and the sale of one OREO during the second quarter of 2017.
The tables below summarize composition of non-performing loans and non-performing assets:
Non-performing loans composition (Dollars in thousands) | ||||||||||||||||||||
Dec. 31,
2017 |
Sept. 30,
2017 |
Percentage
Change |
Dec. 31,
2016 |
Percentage
Change | ||||||||||||||||
Real estate loans | $ | 318 | $ | 330 | -3.6 | % | $ | 57 | 457.9 | % | ||||||||||
Commercial and industrial loans | 14 | 149 | -90.6 | % | 284 | -95.1 | % | |||||||||||||
SBA loans | 2,148 | 1,006 | 113.5 | % | 1,468 | 46.3 | % | |||||||||||||
Home mortgage loans | 730 | - | 0.0 | % | - | 0.0 | % | |||||||||||||
Consumer loans & others | 24 | 26 | -7.7 | % | 39 | -38.5 | % | |||||||||||||
$ | 3,234 | $ | 1,511 | 114.0 | % | $ | 1,848 | 75.0 | % | |||||||||||
Non-performing assets (Dollars in thousands) | |||||||||||||||||||||||
Dec. 31,
2017 |
Sept. 30,
2017 |
%
Change |
Dec. 31,
2016 |
%
Change | |||||||||||||||||||
Non-performing loans (NPL) | $ | 3,234 | $ | 1,511 | 114.0 | % | $ | 1,848 | 75.0 | % | |||||||||||||
Non-performing TDR (included in NPL) | 1,675 | 609 | 175.0 | % | 663 | 152.6 | % | ||||||||||||||||
Gross loans including deferred loan fees/cost | 1,189,999 | 1,146,744 | 3.8 | % | 1,031,112 | 15.4 | % | ||||||||||||||||
NPL/Gross loans | 0.27 | % | 0.13 | % | 0.18 | % | |||||||||||||||||
OREO | $ | 99 | $ | 141 | -29.8 | % | $ | 506 | -80.4 | % | |||||||||||||
Performing TDR | 592 | 1,676 | -64.7 | % | 2,196 | -73.0 | % | ||||||||||||||||
NPA (NPL+OREO) | 3,333 | 1,652 | 101.8 | % | 2,353 | 41.6 | % | ||||||||||||||||
Total assets | $ | 1,441,998 | $ | 1,403,816 | 2.7 | % | $ | 1,226,642 | 17.6 | % | |||||||||||||
NPA (NPL+OREO)/Gross loans | 0.28 | % | 0.14 | % | 0.23 | % | |||||||||||||||||
NPA (NPL+OREO)/Total assets | 0.23 | % | 0.12 | % | 0.19 | % | |||||||||||||||||
Classified Assets
Classified loans decreased $835,000, or 14.4%, to $5.0 million compared with $5.8 million at September 30, 2017 and decreased $4.1 million, or 45.0%, compared with $9.1 million at December 31, 2016. Classified assets to total assets ratio was 0.35% at December 31, 2017 compared with 0.42% at September 30, 2017 and 0.78% at December 31, 2016.
The tables below provide certain details on classified assets.
Classified assets (Dollars in thousands) | |||||||||||||||||||||
Dec. 31,
2017 |
Sept. 30,
2017 |
%
Change |
Dec. 31,
2016 |
%
Change | |||||||||||||||||
Classified loans | $ | 4,982 | $ | 5,817 | -14.4 | % | $ | 9,066 | -45.0 | % | |||||||||||
OREO | 99 | 141 | -29.8 | % | 506 | -80.4 | % | ||||||||||||||
Classified assets | 5,081 | 5,958 | -14.7 | % | 9,572 | -46.9 | % | ||||||||||||||
Classified loans/Gross loans | 0.42 | % | 0.51 | % | 0.88 | % | |||||||||||||||
Tier 1 + ALLL | $ | 154,594 | $ | 151,583 | 2.0 | % | $ | 138,136 | 11.9 | % | |||||||||||
Classified assets/Tier 1 + ALLL | 3.29 | % | 3.93 | % | 6.93 | % | |||||||||||||||
Classified assets/Total assets | 0.35 | % | 0.42 | % | 0.78 | % | |||||||||||||||
Capital Ratios
December 31, 2017 | September 30, 2017 | December 31, 2016 | ||||||
Tier 1 Leverage Capital Ratio (Consolidate) | 10.01% | 10.15% | 10.48% | |||||
Common Equity Tier 1 Capital Ratio (Consolidate) | 12.15% | 12.36% | 12.47% | |||||
Tier 1 Risk-Based Capital Ratio (Consolidate) | 12.15% | 12.36% | 12.47% | |||||
Total Risk-Based Capital Ratio (Consolidate) | 13.20% | 13.40% | 13.59% | |||||
The table below illustrates Pacific City Bank capital ratios:
December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||
Tier 1 Leverage Capital Ratio (Bank) | 9.94% | 10.08% | 10.38% | ||||
Common Equity Tier 1 Capital Ratio (Bank) | 12.06% | 12.28% | 12.35% | ||||
Tier 1 Risk-Based Capital Ratio (Bank) | 12.06% | 12.28% | 12.35% | ||||
Total Risk-Based Capital Ratio (Bank) | 13.12% | 13.32% | 13.48% |
About Pacific City Financial Corporation
Headquartered in Los Angeles, California, Pacific City Financial Corporation is the parent company of Pacific City Bank, a full-service commercial bank with thirteen branch offices and nine loan production offices in Lynwood and Bellevue, Washington; Denver, Colorado, Chicago, Illinois; Annandale, Virginia; Atlanta, Georgia; Orange County, California; Los Angeles, California; and Carrollton, Texas. Pacific City Bank specializes in commercial banking for small to medium-size businesses by providing commercial real estate loans, small business loans and lines of credit, trade finance loans, auto loans, residential mortgage loans, and SBA loans. Pacific City Bank serves a diverse customer base through its branches in the Greater Los Angeles Area, Fort Lee, New Jersey, and Bayside, New York and its Loan Production Offices in eight States.
Safe Harbor Statement
This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may.” Factors that could cause future results to vary materially from current management expectations include, but are not limited to, general economic conditions, economic uncertainty in the United States and abroad, changes in interest rates, deposit flows, real estate values, competition, changes in accounting principles, policies or guidelines, legislation or regulation (including the Tax Cuts & Jobs Act of 2017), and other economic, competitive, governmental, regulatory and technological factors (including external fraud and cyber-security threats) affecting Company’s operations, pricing, products and services. Company undertakes no obligation to release publicly the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date of this press release or to reflect the occurrence of unanticipated events.
Pacific City Financial Corporation | ||||||||||||||||||||
Consolidated Balance Sheets | ||||||||||||||||||||
(Dollars In thousands) | ||||||||||||||||||||
December 31,
2017 (Unaudited) |
September 30,
2017 (Unaudited) |
%
change |
December 31,
2016 |
%
change | ||||||||||||||||
Assets | ||||||||||||||||||||
Cash and due from banks | $ | 16,662 | $ | 18,182 | -8.4 | % | $ | 18,488 | -9.9 | % | ||||||||||
Interest-bearing deposits in financial institutions | 56,996 | 69,684 | -18.2 | % | 51,463 | 10.8 | % | |||||||||||||
Total cash and cash equivalents | 73,658 | 87,866 | -16.2 | % | 69,951 | 5.3 | % | |||||||||||||
Investment securities, available-for-sale | 129,689 | 123,170 | 5.3 | % | 82,838 | 56.6 | % | |||||||||||||
Investment securities, held-to-maturity | 21,070 | 19,720 | 6.8 | % | 17,584 | 19.8 | % | |||||||||||||
Total investment securities | 150,759 | 142,890 | 5.5 | % | 100,422 | 50.1 | % | |||||||||||||
Loans held for sale | 5,297 | 2,501 | 111.8 | % | 2,150 | 146.4 | % | |||||||||||||
Loans receivable, net of deferred loan costs (fees) | 1,189,999 | 1,146,744 | 3.8 | % | 1,031,112 | 15.4 | % | |||||||||||||
Less: allowance for loan losses | (12,224 | ) | (11,651 | ) | 4.9 | % | (11,320 | ) | 8.0 | % | ||||||||||
Net loans receivables | 1,177,775 | 1,135,093 | 3.8 | % | 1,019,792 | 15.5 | % | |||||||||||||
Premises and equipment, net | 4,723 | 4,734 | -0.2 | % | 4,562 | 3.5 | % | |||||||||||||
Other real estate owned, net | 99 | 141 | -29.8 | % | 506 | -80.4 | % | |||||||||||||
Federal Home Loan Bank and other bank stock | 6,589 | 6,589 | 0.0 | % | 5,686 | 15.9 | % | |||||||||||||
Deferred tax assets, net | 3,847 | 6,540 | -41.2 | % | 5,254 | -26.8 | % | |||||||||||||
Servicing assets | 8,973 | 8,939 | 0.4 | % | 8,302 | 8.1 | % | |||||||||||||
Accrued interest receivables | 4,251 | 3,670 | 15.8 | % | 3,150 | 35.0 | % | |||||||||||||
Others | 6,027 | 4,853 | 24.2 | % | 6,867 | -12.2 | % | |||||||||||||
Total assets | $ | 1,441,998 | $ | 1,403,816 | 2.7 | % | $ | 1,226,642 |
| 17.6 | % | |||||||||
Liabilities | ||||||||||||||||||||
Deposits | ||||||||||||||||||||
Noninterest-bearing demand | $ | 319,025 | $ | 324,690 | -1.7 | % | $ | 274,003 | 16.4 | % | ||||||||||
Savings, NOW, and money market accounts | 317,878 | 325,204 | -2.3 | % | 319,929 | -0.6 | % | |||||||||||||
Time deposits under $250,000 | 347,774 | 306,337 | 13.5 | % | 291,557 | 19.3 | % | |||||||||||||
Time deposits of $250,000 and over | 266,612 | 257,043 | 3.7 | % | 206,323 | 29.2 | % | |||||||||||||
Total deposits | 1,251,289 | 1,213,274 | 3.1 | % | 1,091,812 | 14.6 | % | |||||||||||||
Borrowings | 40,000 | 40,000 | 0.0 | % | - | NA | ||||||||||||||
Accrued interest payable | 2,251 | 1,741 | 29.3 | % | 1,559 | 44.4 | % | |||||||||||||
Other liabilities | 6,274 | 8,260 | -24.0 | % | 6,264 | 0.2 | % | |||||||||||||
Total liabilities | $ | 1,299,814 | $ | 1,263,275 | 2.9 | % | $ | 1,099,635 | 18.2 | % | ||||||||||
Capital | ||||||||||||||||||||
Common stock | 125,430 | 125,359 | 0.1 | % | 125,094 | 0.3 | % | |||||||||||||
Additional paid in capital | 2,941 | 2,785 | 5.6 | % | 2,443 | 20.4 | % | |||||||||||||
Retained earnings | 15,036 | 12,857 | 16.9 | % | - | NA | ||||||||||||||
Other comprehensive (loss) income | (1,223 | ) | (460 | ) | 165.9 | % | (530 | ) | 130.8 | % | ||||||||||
Total capital | 142,184 | 140,541 | 1.2 | % | 127,007 | 11.9 | % | |||||||||||||
Total liabilities & capital | $ | 1,441,998 | $ | 1,403,816 | 2.7 | % | $ | 1,226,642 | 17.6 | % | ||||||||||
Pacific City Financial Corporation | |||||||||||||||||||
Consolidated Income Statements (Unaudited) | |||||||||||||||||||
(Dollars in thousands, except share and per share data) | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
Dec. 31,
2017 |
Sept. 30,
2017 |
Percentage
Change |
Dec. 31,
2016 |
Percentage
Change | |||||||||||||||
Interest income | |||||||||||||||||||
Interest and fees on loans | $ | 16,832 | $ | 16,000 | 5.2 | % | $ | 13,793 | 22.0 | % | |||||||||
Interest on investments | 772 | 747 | 3.3 | % | 428 | 80.4 | % | ||||||||||||
Interest on others | 267 | 343 | -22.2 | % | 368 | -27.4 | % | ||||||||||||
Total interest income | 17,871 | 17,090 | 4.6 | % | 14,589 | 22.5 | % | ||||||||||||
Interest expense | |||||||||||||||||||
Interest on deposits | 2,766 | 2,535 | 9.1 | % | 2,010 | 37.6 | % | ||||||||||||
Interest on borrowings | 172 | 172 | 0.0 | % | - | NA | |||||||||||||
Total interest expenses | 2,938 | 2,707 | 8.5 | % | 2,010 | 46.2 | % | ||||||||||||
Net interest income | 14,933 | 14,383 | 3.8 | % | 12,579 | 18.7 | % | ||||||||||||
Provision for loan losses (PLL) | 1,713 | 586 | 192.3 | % | 621 | 175.8 | % | ||||||||||||
Net interest income after PLL | 13,220 | 13,797 | -4.2 | % | 11,958 | 10.6 | % | ||||||||||||
Non-interest income | |||||||||||||||||||
Gain on sale of SBA loans | 2,109 | 2,124 | -0.7 | % | 2,427 | -13.1 | % | ||||||||||||
Gain on sale of residential mortgage loans | 18 | 34 | -47.1 | % | 52 | -65.4 | % | ||||||||||||
Service charges on deposits | 357 | 334 | 6.9 | % | 369 | -3.3 | % | ||||||||||||
Loan servicing fees | 605 | 674 | -10.2 | % | 505 | 19.8 | % | ||||||||||||
Other | 273 | 295 | -7.5 | % | 292 | -6.5 | % | ||||||||||||
Total non-interest income | 3,362 | 3,461 | -2.9 | % | 3,645 | -7.8 | % | ||||||||||||
Non-interest expense | |||||||||||||||||||
Employee salaries & benefits | 6,140 | 5,594 | 9.8 | % | 4,901 | 25.3 | % | ||||||||||||
Occupancies and fixed assets | 1,167 | 1,074 | 8.7 | % | 1,150 | 1.5 | % | ||||||||||||
Legal & professional | 716 | 644 | 11.2 | % | 651 | 10.0 | % | ||||||||||||
FDIC assessment | 114 | 108 | 5.6 | % | 50 | 128.0 | % | ||||||||||||
Marketing expenses | 321 | 454 | -29.3 | % | 269 | 19.3 | % | ||||||||||||
Data and item processing expenses | 288 | 276 | 4.3 | % | 241 | 19.5 | % | ||||||||||||
Loan related expenses | 128 | 93 | 37.6 | % | 70 | 82.9 | % | ||||||||||||
Net loss on sale of OREO | 11 | 4 | 175.0 | % | - | NA | |||||||||||||
Others | 735 | 712 | 3.2 | % | 739 | -0.5 | % | ||||||||||||
Total non-interest expenses | 9,620 | 8,959 | 7.4 | % | 8,071 | 19.2 | % | ||||||||||||
Net income before taxes | 6,962 | 8,299 | -16.1 | % | 7,532 | -7.6 | % | ||||||||||||
Income tax provision | 4,623 | 3,493 | 32.4 | % | 3,220 | 43.6 | % | ||||||||||||
Net income | $ | 2,339 | $ | 4,806 | -51.3 | % | $ | 4,312 | -45.8 | % | |||||||||
Earnings per common shares | |||||||||||||||||||
Basic | $ | 0.17 | $ | 0.36 | $ | 0.32 | |||||||||||||
Diluted | $ | 0.17 | $ | 0.35 | $ | 0.32 | |||||||||||||
Average shares outstanding | |||||||||||||||||||
Basic | 13,415,795 | 13,412,407 | 13,386,503 | ||||||||||||||||
Diluted | 13,569,503 | 13,544,855 | 13,461,259 | ||||||||||||||||
Return on average assets | 0.65 | % | 1.38 | % | 1.42 | % | |||||||||||||
Return on average stockholders' equity | 6.47 | % | 13.69 | % | 13.59 | % | |||||||||||||
Net interest margin | 4.26 | % | 4.23 | % | 4.16 | % | |||||||||||||
Efficiency ratio | 52.58 | % | 50.20 | % | 49.75 | % | |||||||||||||
Pacific City Financial Corporation | |||||||||||||||
Consolidated Income Statements | |||||||||||||||
(Dollars in thousands) | |||||||||||||||
Twelve Months Ended | |||||||||||||||
December 31, 2017
(Unaudited) | December 31, 2016 | Amount Change | % Change | ||||||||||||
Interest income | |||||||||||||||
Interest and fees on loans | $ | 61,516 | $ | 50,058 | 11,458 | 22.9 | % | ||||||||
Interest on investments | 2,614 | 1,741 | 873 | 50.1 | % | ||||||||||
Interest on others | 1,137 | 796 | 341 | 42.8 | % | ||||||||||
Total interest income | 65,267 | 52,595 | 12,672 | 24.1 | % | ||||||||||
Interest expenses | |||||||||||||||
Interest on deposits | 9,749 | 7,009 | 2,740 | 39.1 | % | ||||||||||
Interest on borrowings | 348 | 5 | 343 | 6860.0 | % | ||||||||||
Total interest expenses | 10,097 | 7,014 | 3,083 | 44.0 | % | ||||||||||
Net interest income | 55,170 | 45,581 | 9,589 | 21.0 | % | ||||||||||
Provision for loan losses (PLL) | 1,827 | 2,283 | (456 | ) | -20.0 | % | |||||||||
Net interest income after PLL | 53,343 | 43,298 | 10,045 | 23.2 | % | ||||||||||
Non-interest income | |||||||||||||||
Gain on sale of SBA loans | 8,869 | 8,079 | 790 | 9.8 | % | ||||||||||
Gain on sale of HM loans | 131 | 833 | (702 | ) | -84.3 | % | |||||||||
Service charges on deposits | 1,377 | 1,457 | (80 | ) | -5.5 | % | |||||||||
Loans servicing fees | 2,446 | 2,159 | 287 | 13.3 | % | ||||||||||
Other | 1,071 | 1,091 | (20 | ) | -1.8 | % | |||||||||
Total non-interest income | 13,894 | 13,619 | 275 | 2.0 | % | ||||||||||
Non-interest expenses | |||||||||||||||
Employee salaries & benefits | 22,829 | 19,944 | 2,885 | 14.5 | % | ||||||||||
Occupancies and fixed assets | 4,426 | 4,337 | 89 | 2.1 | % | ||||||||||
Legal & professional | 2,598 | 2,706 | (108 | ) | -4.0 | % | |||||||||
FDIC assessment | 423 | 460 | (37 | ) | -8.0 | % | |||||||||
Marketing expenses | 1,412 | 1,246 | 166 | 13.3 | % | ||||||||||
Data and item processing expenses | 1,074 | 943 | 131 | 13.9 | % | ||||||||||
Loan related expenses | 444 | 344 | 100 | 29.1 | % | ||||||||||
Net loss on OREO | 20 | - | (10 | ) | NA | ||||||||||
Others | 2,669 | 2,534 | 135 | 5.3 | % | ||||||||||
Total non-interest expenses | 35,895 | 32,514 | 3,351 | 10.3 | % | ||||||||||
Net income before tax | 31,342 | 24,403 | 6,939 | 28.4 | % | ||||||||||
Income tax provision | 14,939 | 10,401 | 4,538 | 43.6 | % | ||||||||||
Net income after tax | $ | 16,403 | $ | 14,002 | 2,401 | 17.1 | % | ||||||||
Earnings per common shares | |||||||||||||||
Basic | $ | 1.22 | $ | 1.12 | |||||||||||
Diluted | $ | 1.21 | $ | 1.11 | |||||||||||
Average shares outstanding | |||||||||||||||
Basic | 13,408,030 | 12,532,807 | |||||||||||||
Diluted | 13,540,293 | 12,607,990 | |||||||||||||
Return on average assets | 1.22 | % | 1.25 | % | |||||||||||
Return on average stockholders' equity | 12.00 | % | 12.47 | % | |||||||||||
Net interest margin | 4.21 | % | 4.14 | % | |||||||||||
Efficiency ratio | 51.97 | % | 54.92 | % | |||||||||||
Pacific City Financial Corporation | |||||||||||||||||||||||||||||||||||
Average Balance, Average Yield, and Average Rate | |||||||||||||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||
December 31, 2017 | September 30, 2017 | December 31, 2016 | |||||||||||||||||||||||||||||||||
Average
Balance |
Interest
Income/ Expense |
Average
Yield/ Rate |
Average
Balance |
Interest
Income/ Expense |
Average
Yield/ Rate |
Average
Balance |
Interest
Income/ Expense |
Average
Yield/ Rate | |||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Gross loans, net of deferred loan fees | $ | 1,186,020 | $ | 16,832 | 5.63 | % | $ | 1,123,725 | $ | 16,000 | 5.65 | % | $ | 1,040,783 | $ | 13,793 | 5.27 | % | |||||||||||||||||
US government agencies | 25,333 | 144 | 2.28 | % | 26,214 | 153 | 2.33 | % | 20,298 | 112 | 2.21 | % | |||||||||||||||||||||||
Mortgage backed securities | 66,594 | 332 | 1.99 | % | 60,922 | 313 | 2.06 | % | 46,629 | 187 | 1.60 | % | |||||||||||||||||||||||
Collateralized mortgage obligation | 47,878 | 251 | 2.10 | % | 44,771 | 236 | 2.11 | % | 20,775 | 89 | 1.71 | % | |||||||||||||||||||||||
Muni bonds | 7,666 | 44 | 2.31 | % | 8,057 | 46 | 2.28 | % | 8,037 | 41 | 2.06 | % | |||||||||||||||||||||||
Interest bearing deposit & others | 47,283 | 154 | 1.30 | % | 74,633 | 235 | 1.26 | % | 35,561 | 49 | 0.56 | % | |||||||||||||||||||||||
Total interest-earning assets | $ | 1,380,774 | $ | 17,757 | 5.10 | % | $ | 1,338,322 | $ | 16,983 | 5.03 | % | $ | 1,172,083 | $ | 14,271 | 4.84 | % | |||||||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 17,440 | $ | 17,413 | $ | 16,479 | |||||||||||||||||||||||||||||
Allowances for loan losses | (11,665 | ) | (11,327 | ) | (11,212 | ) | |||||||||||||||||||||||||||||
Other assets | 35,426 | 34,609 | 33,864 | ||||||||||||||||||||||||||||||||
$ | 41,201 | $ | 40,695 | $ | 39,131 | ||||||||||||||||||||||||||||||
Total assets | $ | 1,421,975 | $ | 1,379,017 | $ | 1,211,214 | |||||||||||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||||||||
Money market & NOW accounts | $ | 314,237 | $ | 813 | 1.03 | % | $ | 322,714 | $ | 842 | 1.04 | % | $ | 296,593 | $ | 712 | 0.95 | % | |||||||||||||||||
Savings | 8,870 | 6 | 0.27 | % | 9,094 | 6 | 0.26 | % | 8,880 | 6 | 0.27 | % | |||||||||||||||||||||||
Time deposits | 585,163 | 1,946 | 1.32 | % | 538,359 | 1,687 | 1.24 | % | 492,909 | 1,292 | 1.04 | % | |||||||||||||||||||||||
Total interest-bearing deposits | $ | 908,270 | $ | 2,765 | 1.21 | % | $ | 870,167 | $ | 2,535 | 1.16 | % | $ | 798,382 | $ | 2,010 | 1.00 | % | |||||||||||||||||
Borrowings: | |||||||||||||||||||||||||||||||||||
Other borrowings | 40,000 | 172 | 1.71 | % | 40,000 | 172 | 1.71 | % | - | - | NA | ||||||||||||||||||||||||
$ | 40,000 | $ | 172 | 1.71 | % | $ | 40,000 | $ | 172 | 1.71 | % | $ | - | $ | - | NA | |||||||||||||||||||
Total interest-bearing liabilities | $ | 948,270 | $ | 2,937 | 1.23 | % | $ | 910,167 | $ | 2,707 | 1.18 | % | $ | 798,382 | 2,010 | 1.00 | % | ||||||||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Demand deposits | $ | 320,174 | $ | 320,167 | $ | 278,001 | |||||||||||||||||||||||||||||
Other liabilities | 10,131 | 9,418 | 8,646 | ||||||||||||||||||||||||||||||||
$ | 330,305 | $ | 329,585 | $ | 286,647 | ||||||||||||||||||||||||||||||
Total liabilities | $ | 1,278,575 | $ | 1,239,752 | $ | 1,085,029 | |||||||||||||||||||||||||||||
Stockholders' equity | $ | 143,400 | $ | 139,265 | $ | 126,185 | |||||||||||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,421,975 | $ | 1,379,017 | $ | 1,211,214 | |||||||||||||||||||||||||||||
Net interest income | $ | 14,820 | $ | 14,276 | $ | 12,261 | |||||||||||||||||||||||||||||
Cost of funds | 0.92 | % | 0.87 | % | 0.74 | % | |||||||||||||||||||||||||||||
Net interest spread | 3.87 | % | 3.85 | % | 3.84 | % | |||||||||||||||||||||||||||||
Net interest margin | 4.26 | % | 4.23 | % | 4.16 | % | |||||||||||||||||||||||||||||
Pacific City Financial Corporation | |||||||||||||||||||||||||
Average Balance, Average Yield, and Average Rate | |||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Twelve Months Ended | |||||||||||||||||||||||||
December 31, 2017 | December 31, 2016 | ||||||||||||||||||||||||
Average
Balance |
Interest
Income/ Expense |
Average
Yield Rate |
Average
Balance |
Interest
Income/ Expense |
Average
Yield Rate | ||||||||||||||||||||
Assets | |||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||
Gross loans, net of deferred loan fees | $ | 1,111,248 | $ | 61,518 | 5.54 | % | $ | 961,482 | $ | 50,058 | 5.21 | % | |||||||||||||
US government agencies | 24,762 | 571 | 3.08 | % | 20,928 | 460 | 2.93 | % | |||||||||||||||||
Mortgage backed securities | 57,171 | 1,110 | 2.59 | % | 45,822 | 797 | 2.32 | % | |||||||||||||||||
Collateralized mortgage obligation | 36,660 | 746 | 2.71 | % | 21,032 | 338 | 2.14 | % | |||||||||||||||||
Muni bonds | 8,319 | 186 | 2.99 | % | 7,613 | 147 | 2.58 | % | |||||||||||||||||
Interest bearing deposit & others | 62,327 | 690 | 1.11 | % | 28,413 | 145 | 0.68 | % | |||||||||||||||||
Total interest earning assets | $ | 1,300,487 | $ | 64,821 | 4.98 | % | $ | 1,085,290 | $ | 51,945 | 4.79 | % | |||||||||||||
Noninterest-earning assets: | |||||||||||||||||||||||||
Cash and cash equivalents | $ | 16,973 | $ | 15,848 | |||||||||||||||||||||
Allowances for loan losses | (11,435 | ) | (10,170 | ) | |||||||||||||||||||||
Other assets | 34,124 | 31,442 | |||||||||||||||||||||||
Total noninterest-earning assets | $ | 39,662 | $ | 37,120 | |||||||||||||||||||||
Total assets | $ | 1,340,149 | $ | 1,122,410 | |||||||||||||||||||||
Liabilities and Stockholders' Equity | |||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||
Money market & NOW accounts | $ | 320,701 | $ | 3,244 | 1.01 | % | $ | 250,736 | $ | 2,264 | 0.90 | % | |||||||||||||
Savings | 8,873 | 25 | 0.28 | % | 9,500 | 26 | 0.27 | % | |||||||||||||||||
Time deposits | 539,068 | 6,480 | 1.20 | % | 468,953 | 4,719 | 1.01 | % | |||||||||||||||||
Total interest-bearing deposits | $ | 868,642 | $ | 9,749 | 1.12 | % | $ | 729,189 | $ | 7,009 | 0.96 | % | |||||||||||||
Borrowings: | |||||||||||||||||||||||||
Other borrowings | 20,384 | 348 | 1.71 | % | 1,194 | 5 | 0.42 | % | |||||||||||||||||
Total borrowings: | $ | 20,384 | $ | 348 | 1.71 | % | $ | 1,194 | $ | 5 | 0.42 | % | |||||||||||||
Total interest-bearing liabilities | $ | 889,026 | $ | 10,097 | 1.14 | % | $ | 730,383 | $ | 7,014 | 0.96 | % | |||||||||||||
Noninterest-bearing liabilities: | |||||||||||||||||||||||||
Demand deposits | $ | 305,354 | $ | 271,628 | |||||||||||||||||||||
Other liabilities | 9,027 | 8,092 | |||||||||||||||||||||||
Total noninterest-bearing liabilities | $ | 314,381 | $ | 279,720 | |||||||||||||||||||||
Total liabilities | $ | 1,203,407 | $ | 1,010,103 | |||||||||||||||||||||
Stockholders' equity | $ | 136,742 | $ | 112,307 | |||||||||||||||||||||
Total liabilities and stockholders' equity | $ | 1,340,149 | $ | 1,122,410 | |||||||||||||||||||||
Net interest income | $ | 54,724 | $ | 44,931 | |||||||||||||||||||||
Cost of deposits | 0.85 | % | 0.70 | % | |||||||||||||||||||||
Net interest spread | 3.86 | % | 3.83 | % | |||||||||||||||||||||
Net interest margin | 4.21 | % | 4.14 | % |
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