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Pacific City Financial Corporation Reports Continued Strong 2016 First Quarter Financial Results

Pacific City Financial Corporation (the “Company”) (OTC Pink: PFCF), the
holding company of Pacific City Bank, today reported net income of $3.0
million, or $0.27 per diluted common share, compared with $2.9 million,
or $0.27 per diluted common share, for the fourth quarter 2015 and $2.9
million, or $0.27 per diluted common share, for the first quarter 2015.

2016 First Quarter Highlights

  • Net income totaled $3.0 million, or $0.27 per diluted common share
  • Loan origination during the first quarter increased $60.5 million to
    $156.7 million compared with $96.2 million in the year-ago quarter
  • Total assets increased $180.9 million, or 19.8%, to $1.1 billion at
    March 31, 2016 from $911.4 million at March 31, 2015
  • Gross loans, net of unearned fee/cost, increased $119.5 million, or
    15.7%, to $878.7 million at March 31, 2016 from $759.2 million at
    March 31, 2015
  • Total deposits increased $164.5 million, or 20.1%, to $982.4 million
    at March 31, 2016 from $817.9 million at March 31, 2015
  • Non-performing assets decreased $2.9 million, or 52.3%, to $2.7
    million at March 31, 2016 from $5.6 million at March 31, 2015
  • Declared quarterly cash dividend of $0.03 per common share

“We are excited to report another solid quarterly financial performance.
Our strong net income was complemented by solid growth in loan and
deposit balances during the 2016 first quarter. We are pleased with our
58% efficiency ratios during the current environment of heightened
regulatory expenses,” said Haeyoung Cho, President and CEO. “We are
starting the year strong and we continue to execute our commitment to
increase shareholders’ value through solid growth, strategic expansion,
and prudent capital management.”

 
2016 First Quarter Financial Highlights
(dollars in thousands, except per share data)
           
At or for the Three Months Ended
Mar. 31,

2016

Dec. 31,

2015

%

change

Mar. 31,

2015

%

change

Net income $ 2,987 $ 2,904 2.9 % $ 2,928 2.0 %
Earnings per common share (diluted)* $ 0.27 $ 0.27 0.0 % $ 0.27 0.0 %
 
Net interest income $ 10,698 $ 9,856 8.5 % $ 8,533 25.4 %
Provision (negative provision) for loan loss $ 491 $ 432 13.7 % $ (283 ) -273.5 %
Non-interest income $ 2,968 $ 3,137 -5.4 % $ 2,936 1.1 %
Non-interest expense $ 7,982 $ 7,546 5.8 % $ 6,766 18.0 %
 
Total assets $ 1,092,320 $ 1,042,517 4.8 % $ 911,427 19.8 %
Loans receivable, net of allowance and loan fee/cost $ 868,772 $ 835,024 4.0 % $ 749,843 15.9 %
Total deposits $ 982,381 $ 939,439 4.6 % $ 817,911 20.1 %
 
Return on average assets 1.14 % 1.10 % 1.32 %
Return on average stockholders’ equity 11.96 % 11.83 % 13.44 %
Net interest margin 4.19 % 3.82 % 3.93 %
Efficiency ratio 58.41 % 58.08 % 59.00 %
Tangible common equity to tangible assets 9.33 % 9.40 % 9.84 %
Tangible common equity per common share * $ 9.38 $ 9.09 $ 8.34
 
Tier 1 leverage ratio (consolidated) 9.62 % 9.40 % 10.09 %
 
* 10% stock dividend effected on January 29, 2016 reflected
retroactively.
 

OPERATING RESULTS FOR THE 2016 FIRST QUARTER

Net Income Summary

Net income in the first quarter of 2016 increased $0.1 million to $3.0
million compared with $2.9 million in the previous quarter and a
year-ago quarter. Diluted earnings per share was $0.27 for the first
quarter of 2016 which was the same compared with previous and a year-ago
quarters.

Net Interest Income and Net Interest Margin

Net interest income before provision for loan losses in the first
quarter of 2016 increased $842,000, or 8.5%, to $10.7 million compared
with the previous quarter, and increased $2.2 million, or 25.4%,
compared with the year-ago quarter. The increase was primarily due to a
steady growth on the balance of loan portfolio.

The interest income on loans increased $808,000, or 7.5%, to $11.6
million for the first quarter of 2016 compared with the previous quarter
and increased $2.0 million, or 20.9%, compared with the year-ago quarter
primarily due to an increase in average loan balance. The average gross
loan balance was $900.0 million in the first quarter of 2016 compared
with $825.9 million in the previous quarter, and $765.2 million in the
year-ago quarter. The Bank originated $156.7 million in new loans during
the first quarter of 2016 compared with $144.8 million for the previous
quarter, and $96.2 million for the year-ago quarter.

The loan yield for the first quarter of 2016 at 5.20% did not change
compared with the previous quarter. However, it increased 10 bps
compared with 5.10% for the year-ago quarter.

Below is a table of fixed and variable interest rate loans accompanied
with weighted average contractual rates:

             
March 31, 2016 December 31, 2015 March 31, 2015
% to Gross

Loans *

WAVG

Contractual Rate

% to Gross

Loans *

WAVG

Contractual Rate

% to Gross

Loans *

WAVG

Contractual Rate

Fixed rate loans 35.2 % 5.12 % 37.8 % 5.10 % 45.6 % 5.11 %
Variable rate loans 64.8 % 4.49 % 62.2 % 4.53 % 54.4 % 4.41 %
* Including LHFS
 

The interest income on investment securities increased $31,000, or 6.5%,
to $506,000 compared with $475,000 of the previous quarter and increased
$219,000, or 75.7%, compared with $288,000 for the year-ago quarter. The
increase was primarily due to an increase in investment portfolio
balance resulting from deployment of cash to investment securities.

Total interest expense for the first quarter of 2016 decreased $51,000,
or 3.2%, to $1.6 million compared with the previous quarter. However, it
increased $85,000, or 5.7%, compared with $1.5 million for the year-ago
quarter. Interest expense increase was primarily due to an increase of
$67.5 million in average balance of interest bearing deposits to $676.1
million compared with $610.4 million in the year-ago quarter. The cost
of interest-bearing deposits remained at 0.93% compared with the
previous quarter, and decreased 5 bps compared with 0.98% in the
year-ago quarter.

The cost of total deposit including non-interest bearing deposits was
0.67% for the first quarter of 2016 compared with 0.68% for the fourth
quarter of 2015 and 0.74% for the first quarter of 2015.

Net interest margin increased 37 bps to 4.19% in the first quarter of
2016 compared with 3.82% in the previous quarter and increased 26 bps
compared with 3.93% in the year-ago quarter. The increase in net
interest margin during the 2016 first quarter was primarily due to a
$72.2 million decrease to $16.1 million in average cash Fed Funds sold
compared with $88.3 million average balance in the 2015 fourth quarter
and a decrease of $27.6 million compared with 2015 first quarter.

Loan Loss Provision

The provision for loan losses in the first quarter of 2016 was $491,000
compared with $432,000 in the previous quarter and a negative provision
of $283,000 in the year-ago quarter. The increase in provision expenses
compared with the previous quarter was primarily due to an increase in
gross loan balance. The allowance for loan losses to gross loan ratios
was 1.13% at March 31, 2016 compared with 1.11% at December 31, 2015 and
1.24% at March 31, 2015.

During the first quarter of 2016, the Company recognized a net recovery
of $107,000 in loans compared with a net charge-off of $285,000 in the
fourth quarter 2015 and a net recovery of $232,000 in the first quarter
of 2015.

Non-interest Income

Non-interest income for the first quarter of 2016 decreased $169,000 to
$3.0 million compared with $3.1 million in the previous quarter and
increased $32,000 compared with the year-ago quarter. The decrease
compared with the previous quarter was primarily due to a decrease of
$239,000 in gain on sale of SBA loans.

The Bank originated $39.1 million in SBA loans and sold $26.1 million of
guaranteed portion during the first quarter of 2016 compared with $41.9
million in origination and $33.7 million sold during the previous
quarter, and $27.0 million in origination and sold $19.8 million during
the year-ago quarter. The Bank sold $4.0 million in residential mortgage
loans in the first quarter of 2016 compared with $1.8 million during the
previous quarter and $16.3 million during first quarter of 2015.

Non-interest Expenses

Non-interest expenses for the first quarter of 2016 increased $435,000,
or 5.8%, to $8.0 million compared with $7.5 million for the previous
quarter and increased $1.2 million, or 18.0%, compared with $6.8 million
for the year-ago quarter. The increase in non-interest expenses compared
with the previous quarter was primarily due to an increase of $444,000
in salary and benefits expenses stemming from an increase in the number
of employees and seasonal increase in the recognition of unused vacation
accrual expenses.

The increase in non-interest expenses compared with the year-ago quarter
was primarily due to an increase of $749,000 in salary and benefits
expenses, an increase of $200,000 in occupancies and fixed assets
expenses, and an increase of $138,000 in professional services. The
increase in salary and benefits expenses was primarily due to an
increase in headcount in conjunction with asset growth.

The Company’s efficiency ratio was 58.41% in the first quarter of 2016
compared with 58.08% for the fourth quarter 2015, and 59.00% for the
first quarter 2015.

Income Tax Provision

The Company’s effective income tax rate was 42.5% for the first quarter
of 2016 compared with 42.1% for the fourth quarter of 2015 and 41.3% for
the first quarter of 2015.

BALANCE SHEET SUMMARY

Total Assets

Total assets at March 31, 2016 increased $49.8 million, or 4.8%, to
$1,092.3 million compared with $1,042.5 million at December 31, 2015,
and increased $180.9 million, or 19.8%, compared with $911.4 million at
March 31, 2015.

Loans

Gross loan receivable, net of deferred costs and fees, increased $34.3
million, or 4.1%, to $878.7 million at March 31, 2016 compared with
$844.4 million at December 31, 2015, and increased $119.5 million, or
15.7%, compared with $759.2 million at March 31, 2015.

During the first quarter of 2016, the Company originated $156.7 million
in loans and sold $26.1 million in SBA and $4.0 million in residential
mortgage loans. During the quarter, loan principal reduction was $65.9
million and principal charge-off was $20,000.

The following table illustrates details of gross loan balance by type:

Loan type (in thousands)          
  Mar. 31,

2016

Dec. 31,

2015

Percentage

Change

Mar. 31,

2015

Percentage

Change

Real estate loans $ 522,776 $ 487,545 7.2 % $ 443,253 17.9 %
Residential mortgage loans 116,214 129,508 -10.3 % 111,562 4.2 %
SBA loans 117,952 112,397 4.9 % 99,916 18.1 %
Commercial industrial loans 91,779 85,692 7.1 % 75,039 22.3 %
Consumer loans 29,791 29,134 2.3 % 29,324 1.6 %
Deferred loan fees/costs   203   93 118.3 %   130 56.2 %
Gross loans receivables 878,715 844,369 4.1 % 759,224 15.7 %
Loans held for sale   27,974   1,941 1341.2 %   18,426 51.8 %
Total loans $ 906,689 $ 846,310 7.1 % $ 777,650 16.6 %
 

Investment Securities

Total investment securities portfolio balance at March 31, 2016
decreased $1.9 million, or 1.9%, to $100.3 million compared with $102.2
million at December 31, 2015, and increased $32.3 million, or 47.5%,
compared with $68.0 million at March 31, 2015. The decrease in
investment securities portfolio compared with the previous quarter was
primarily due to $2.9 million in normal principal pay-downs, partially
offset by an increase of $1.2 million in fair market value. The
portfolio balance increase compared with a year-ago quarter was
primarily due to purchases of $45.0 million in investment securities,
partially offset by principal pay-downs of $12.6 million.

Deposits

Total deposit balance increased $42.9 million, or 4.6%, to $982.4
million at March 31, 2016 compared with $939.4 million at December 31,
2015, and increased $164.5 million, or 20.1%, compared with $817.9
million at March 31, 2015. The demand deposit to total deposit ratio was
29.6% at March 31, 2016 compared with 28.5% at December 31, 2015, and
25.5% at March 31, 2015.

The table below consists of deposit mix by period:

Deposit mix (in thousands)          
    March 31, 2016 December 31, 2015 March 31, 2015
Amount Percentage Amount Percentage Amount Percentage
Demand deposits $ 290,956 29.6 % $ 267,934 28.5 % $ 208,850 25.5 %
Now accounts 8,951 0.9 % 7,945 0.8 % 7,713 0.9 %
Money market accounts 213,177 21.7 % 223,471 23.8 % 177,162 21.7 %
Savings 8,434 0.9 % 8,263 0.9 % 6,680 0.8 %
Time deposits under $250K 229,573 23.4 % 232,034 24.7 % 230,984 28.2 %
Time deposits of $250K and over 108,434 11.0 % 108,791 11.6 % 97,722 11.9 %
State & Broker CDs   122,856 12.5 %   91,001 9.7 %   88,800 10.9 %
Total deposits $ 982,381 100.0 % $ 939,439 100.0 % $ 817,911 100.0 %
 

Stockholders’ Equity

Stockholders’ equity increased $3.9 million to $101.9 million at March
31, 2016 compared with $98.0 million at December 31, 2015 and increased
$12.3 million compared with $89.7 million at March 31, 2015. On March
17, 2016, the Company paid quarterly cash dividend of $0.03 per common
share.

CREDIT QUALITY

Non-performing Assets

Non-performing loans (“NPL”) balance decreased $0.2 million to $2.2
million at March 31, 2016 compared with $2.4 million at December 31,
2015, and decreased $3.4 million compared with $5.6 million at March 31,
2015. Non-performing loans to gross loans ratios were 0.25% at March 31,
2016 compared with 0.28% at December 31, 2015 and 0.74% at March 31,
2015.

The OREO balance at March 31, 2016 was $506,000 compared with none at
December 31, 2015 and March 31, 2015.

The following tables summarize composition of non-performing loans and
non-performing assets:

Non-performing loans composition (Dollars in thousands)      
     
Mar. 31,

2016

Dec. 31,

2015

Percentage

Change

  Mar. 31,

2015

  Percentage

Change

Real estate loans $ 74 $ 79 -6.3 % $ 91 -18.7 %
Commercial and industrial loans 636 706 -9.9 % 3,732 -83.0 %
SBA loans 1,447 1,552 -6.8 % 1,730 -16.4 %
Consumer loans & others   11   36 -69.4 %   51 -78.4 %
$ 2,168 $ 2,373 -8.6 % $ 5,604 -61.3 %
 
Non-performing assets (Dollars in thousands)        
   
Mar. 31,

2016

Dec. 31,

2015

%

Change

Mar. 31,

2015

%

Change

Non-performing loans (NPL) $ 2,168 $ 2,373 -8.6 % $ 5,604 -61.3 %
Non-performing TDR (included in NPL) $ 1,414 $ 1,562 -9.5 % $ 4,971 -71.6 %
Gross loans including deferred loan fees/cost $ 878,715 $ 844,369 4.1 % $ 759,224 15.7 %
NPL/Gross loans 0.25 % 0.28 % 0.74 %
OREO $ 506 $ N/A $ N/A
Performing TDR $ 2,449 $ 2,524 -3.0 % $ 2,981 -17.8 %
NPA (NPL+OREO) $ 2,674 $ 2,373 12.7 % $ 5,604 -52.3 %
Total assets $ 1,092,320 $ 1,042,517 4.8 % $ 911,427 19.8 %
 
NPA (NPL+OREO)/Gross loans 0.30 % 0.28 % 0.74 %
NPA (NPL+OREO)/Total assets 0.24 % 0.23 % 0.61 %
 

Classified Assets

Classified loans at March 31, 2016 decreased $439,000 to $6.1 million
compared with $6.5 million at December 31, 2015, and decreased $3.4
million compared with $9.5 million at March 31, 2015. Classified assets
to total assets ratio were 0.60% at March 31, 2016 compared with 0.63%
at December 31, 2015 and 1.05% at March 31, 2015.

The following tables provide some detail on classified loans and
classified assets.

Classified loans (Dollars in thousands)        
 
  Mar. 31

2016

Dec. 31,

2015

Percentage

Change

Mar. 31,

2015

Percentage

Change

Substandard (Classified) $ 6,098 $ 6,537 -6.7 % $ 9,536 -36.1 %
Special mention   6,122   6,158 -0.6 %   2,239 173.4 %
Total criticized 12,220 12,695 -3.7 % 11,775 3.8 %
 
Watch   17,383   17,493 -0.6 %   19,424 -10.5 %
Total problem loans $ 29,603 $ 30,188 -1.9 % $ 31,199 -5.1 %
       
Classified assets (Dollars in thousands)
 
Mar. 31,

2016

Dec. 31,

2015

%

Change

Mar. 31,

2015

%

Change

Classified assets $ 6,604 $ 6,537 1.0 % $ 9,536 -30.7 %
Classified loans/Gross loans 0.69 % 0.77 % 1.26 %
Tier 1 + ALLL $ 110,927 $ 107,345 3.3 % $ 97,901 13.3 %
Classified assets/Tier 1 + ALLL 5.95 % 6.09 % 9.74 %
Classified assets/Total assets 0.60 % 0.63 % 1.05 %
 

Capital

The following table illustrates Pacific City Bank capital ratios:

Capital Ratios        
 
March 31, 2016 December 31, 2015 March 31, 2015
Tier 1 Leverage Capital Ratio (Bank) 9.48 % 9.25 % 9.56 %
Common Equity Tier 1 Capital Ratio (Bank) 11.63 % 12.07 % 11.79 %
Tier 1 Risk-Based Capital Ratio (Bank) 11.63 % 12.07 % 11.79 %
Total Risk-Based Capital Ratio (Bank) 12.80 % 13.25 % 13.04 %
 

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 ten branch offices and seven loan production
offices in Lynwood and Bellevue, Washington; Denver, Colorado, Chicago,
Illinois; Annandale, Virginia; Atlanta, Georgia; and Orange County,
California. 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 and Fort Lee, New Jersey and its Loan Production Offices in
six 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.”

 
Pacific City Financial Corporation
Consolidated Balance Sheets (Unaudited)
(Dollars In thousands)
             
March 31,

2016

December 31,

2015

%

change

March 31,

2015

%

change

Assets
Cash and due from banks $ 13,173 $ 13,511 -2.5 % $ 12,632 4.3 %
Interest-bearing deposits in financial institutions   51,651     63,439   -18.6 %   37,900   36.3 %
Total cash and cash equivalents   64,824     76,950   -15.8 %   50,532   28.3 %
 
Investment securities, available-for-sale 83,171 84,847 -2.0 % 51,618 61.1 %
Investment securities, held-to-maturity   17,080     17,338   -1.5 %   16,347   4.5 %
Total investment securities   100,251     102,185   -1.9 %   67,965   47.5 %
 
Loans held for sale 27,974 1,941 1341.2 % 18,426 51.8 %
 
Loans receivable, net of deferred loan costs (fees) 878,715 844,369 4.1 % 759,224 15.7 %
Less: allowance for loan losses   (9,943 )   (9,345 ) 6.4 %   (9,381 ) 6.0 %
Net loans receivables   868,772     835,024   4.0 %   749,843   15.9 %
 
Premises and equipment, net 3,608 3,613 -0.1 % 1,881 91.8 %
Other real estate owned, net 506 NA NA
Federal Home Loan Bank and other bank stock 4,922 4,922 0.0 % 4,036 22.0 %
Deferred tax assets, net 5,660 5,195 9.0 % 5,931 -4.6 %
Servicing assets 7,609 7,405 2.8 % 6,989 8.9 %
Accrued interest receivables 2,685 2,590 3.7 % 2,133 25.9 %
Others   5,509     2,692   104.6 %   3,691   49.3 %
Total assets $ 1,092,320   $ 1,042,517   4.8 % $ 911,427  

 

19.8 %
 
Liabilities
Deposits
Noninterest-bearing demand $ 290,956 $ 267,934 8.6 % $ 208,850 39.3 %
Savings, NOW, and money market accounts 230,562 239,679 -3.8 % 191,555 20.4 %
Time deposits under $250,000 275,229 256,235 7.4 % 252,984 8.8 %
Time deposits of $250,000 and over   185,634     175,591   5.7 %   164,522   12.8 %
Total deposits   982,381     939,439   4.6 %   817,911   20.1 %
Accrued interest payable 1,471 1,417 3.8 % 1,109 32.6 %
Other liabilities   6,548     3,621   80.8 %   2,753   137.8 %
Total liabilities $ 990,400   $ 944,477   4.9 % $ 821,773   20.5 %
 
Capital
Common stock 96,801 96,074 0.8 % 87,272 10.9 %
Additional paid in capital 2,179 2,362 -7.7 % 2,387 -8.7 %
Retained earnings 2,664 NA NA
Other comprehensive income (loss)   276     (396 ) -169.7 %   (5 ) -5620.0 %
Total capital   101,920     98,040   4.0 %   89,654   13.7 %
 
Total liabilities & capital $ 1,092,320   $ 1,042,517   4.8 % $ 911,427   19.8 %
 

Pacific City Financial Corporation

Consolidated Income Statements (Unaudited)

(Dollars in thousands, except share and per share data)
           
Three Months Ended
March 31,

2016

December 31,

2015

 

Percentage

Change

March 31,

2015

Percentage

Change

Interest income
Interest and fees on loans $ 11,639 $ 10,831 7.5 % $ 9,626 20.9 %
Interest on investments 506 475 6.5 % 288 75.7 %
Interest on others   120   168 -28.6 %   101   18.8 %
Total interest income   12,265   11,474

6.9

%   10,015   22.5 %
 
Interest expense
Interest on deposits 1,565 1,618 -3.3 % 1,482 5.6 %
Interest on borrowings   2   NA     NA
Total interest expenses   1,567   1,618 -3.2 %   1,482   5.7 %
 
Net interest income 10,698 9,856 8.5 % 8,533 25.4 %
 
Provision (negative provision) for loan losses 491 432 13.7 % (283 ) -273.5 %
 
Net interest income after PLL   10,207   9,424 8.3 %   8,816   15.8 %
 
Non-interest income
Gain on sale of SBA loans 1,779 2,018 -11.8 % 1,515 17.4 %
Gain on sale of residential mortgage loans 44 12 266.7 % 300 -85.3 %
Service charges on deposits 367 345 6.4 % 358 2.5 %
Loan servicing fees 545 408 33.6 % 558 -2.3 %
Other   233   354 -34.2 %   205   13.7 %
Total non-interest income   2,968   3,137 -5.4 %   2,936   1.1 %
 
Non-interest expense
Employee salaries & benefits 4,764 4,321 10.3 % 4,016 18.6 %
Occupancies and fixed assets 1,047 964 8.6 % 848 23.5 %
Legal & professional 820 820 0.0 % 682 20.2 %
FDIC assessment 139 134 3.7 % 122 13.9 %
Marketing expenses 346 316 9.5 % 275 25.8 %
Data and item processing expenses 229 220 4.1 % 219 4.6 %
Loan related expenses 46 117 -60.7 % 134 -65.7 %
Others   591   654 -9.6 %   470   25.7 %
Total non-interest expenses   7,982   7,546 5.8 %   6,766   18.0 %
 
Net income before taxes 5,193 5,015 3.5 % 4,986 4.2 %
 
Income tax provision   2,206   2,111 4.5 %   2,058   7.2 %
 
Net income $ 2,987 $ 2,904 2.9 % $ 2,928   2.0 %
 
 
Earnings per common shares
 
Basic $ 0.28 $ 0.27 $ 0.27
Diluted $ 0.27 $ 0.27 $ 0.27
 
Average shares outstanding
 
Basic 10,799,817 10,780,474 10,748,039
Diluted 10,880,324 10,864,367 10,809,444
 
Pacific City Financial Corporation
Average Balance, Average Yield, and Average Rate
(Dollars in thousands)
                   
Three Months Ended
March 31, 2016 December 31, 2015 March 31, 2015
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 $ 899,753 $ 11,639 5.20 % $ 825,871 $ 10,831 5.20 % $ 765,181 $ 9,626 5.10 %
US government agencies 23,579 131 2.23 % 21,350 115 2.16 % 7,102 18 1.02 %
Mortgage backed securities 47,413 246 2.08 % 47,334 239 2.02 % 35,876 185 2.06 %
Collateralized mortgage obligation 22,922 93 1.63 % 22,358 87 1.55 % 20,650 79 1.52 %
Muni bonds 7,506 36 1.90 % 7,256 34 1.89 % 1,144 6 2.17 %
Interest bearing deposit & others   16,113     20 0.49 %   88,300     62 0.28 %   43,673     27 0.25 %
Total interest-earning assets $ 1,017,286   $ 12,165 4.81 % $ 1,012,469   $ 11,368 4.45 % $ 873,626   $ 9,941 4.61 %
Noninterest-earning assets:
Cash and cash equivalents $ 14,911 $ 14,755 $ 14,233
Allowances for loan losses (9,628 ) (9,233 ) (9,607 )
Other assets   27,259     25,050     23,205  
$ 32,542   $ 30,572   $ 27,831  
 
Total assets $ 1,049,828   $ 1,043,041   $ 901,457  
 
Liabilities and Stockholders’ Equity
Interest-bearing liabilities:
Deposits:
Money market & NOW accounts $ 228,609 $ 491 0.86 % $ 233,850 $ 504 0.86 % $ 184,783 $ 385 0.85 %
Savings 8,260 6 0.28 % 7,675 6 0.29 % 6,408 5 0.30 %
Time deposits   439,201     1,068 0.98 %   448,029     1,108 0.98 %   419,204     1,092 1.06 %
$ 676,070   $ 1,565 0.93 % $ 689,554   $ 1,618 0.93 % $ 610,395   $ 1,482 0.98 %
Borrowings:
Subordinated debentures   2,040     2 0.45 %       NA       NA
$ 2,040   $ 2 0.45 % $   $ NA $   $ NA
 
Total interest-bearing liabilities $ 678,110   $ 1,567 0.93 % $ 689,554   $ 1,618 0.93 % $ 610,395     1,482 0.98 %
Noninterest-bearing liabilities:
Demand deposits $ 265,507 $ 250,760 $ 197,614
Other liabilities   5,780     5,310     5,129  
$ 271,287   $ 256,070   $ 202,743  
 
Total liabilities $ 949,397   $ 945,624   $ 813,138  
 
Stockholders’ equity $ 100,431   $ 97,417   $ 88,319  
 
Total liabilities and stockholders’ equity $ 1,049,828   $ 1,043,041   $ 901,457  
 
Net interest income $ 10,598 $ 9,751 $ 8,459
 
Cost of funds 0.67 % 0.68 % 0.74 %
 
Net interest spread 3.88 % 3.52 % 3.63 %
 
Net interest margin 4.19 % 3.82 % 3.93 %

Pacific City Financial Corporation
Timothy Chang
Executive
Vice President & Chief Financial Officer
213-210-2000



Updated: April 26, 2016 — 11:34 pm
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