First PacTrust Bancorp, Inc. Announces Fourth Quarter And Year End Financial Results

First PacTrust Bancorp (NASDAQ: BANC) (“First PacTrust” or the “Company”), the holding company for Pacific Trust Bank (“PacTrust Bank”) and Beach Business Bank, today announced financial results for the fourth quarter and the twelve months ended December 31, 2012. For the quarter, the Company reported a net loss of $3.2 million, or ($0.30) per common share outstanding, compared with a net loss of $5.6 million, or ($0.52) per common share outstanding, for the fourth quarter of 2011. For the twelve months ended December 31, 2012, the Company reported net income of $6.0 million and net income available to common shareholders of $4.6 million, or $0.40 per common share outstanding, compared with a net loss of $2.7 million and a net loss available to common shareholders of $3.3 million, or ($0.28) per common share outstanding, for the twelve months ended December 31, 2011.

The Company’s total assets increased by $18 million over September 30, 2012 to $1.7 billion at December 31, 2012. For the year, total assets grew by $688 million, or 69%, including $488 million from the acquisitions of Beach Business Bank and Gateway Business Bank. Although total deposits declined by $22 million for the fourth quarter, year-over-year deposits grew by $520 million, or 66%, to $1.3 billion at December 31, 2012. The Company’s net interest margin for the fourth quarter of 2012 was 3.77% and its cost of interest-bearing deposits was 0.50%. Year-over-year, net interest margin expanded by 39 bps due to a higher average yield on loans and a lower average cost of deposits. Non-interest income for the quarter was at $16.0 million, including $14.4 million of mortgage banking revenues generated by the Mission Hills Mortgage Bankers Division of PacTrust Bank, which originated $351 million in single-family residential loans in the fourth quarter. Also for the fourth quarter, non-interest expense was higher as a result of merger related costs associated with the Company’s third quarter acquisitions, as well as expenses related to expansion of PacTrust Bank’s residential mortgage lending business.

Steven Sugarman, Chief Executive Officer, commented: “First PacTrust Bancorp is well positioned for 2013 in terms of its team, capital and strategy. We continue to focus on the closing of the acquisition of The Private Bank of California, the realization of operating synergies relating to our recently closed acquisitions, and the continued expansion of our Commercial Banking and Residential Lending platforms. We remain confident in our ability to execute these key initiatives and demonstrate the considerable earnings power of our franchise.”

During the fourth quarter of 2012, the Company: accelerated payment to December 30th of the $0.12 dividend per common share, in addition to making payment on October 1st of the $0.12 dividend; increased its provision for loan and lease losses to $3.5 million, resulting in ALLL of $14.4 million, or 1.51% of total loans (excluding loans acquired at a discount), at December 31, 2012; reduced its bargain purchase gain relating to the acquisition of Gateway Business Bank by $429 thousand; and issued an additional $52 million of its 7.5% Senior Notes due April 15, 2020 (NASDAQ: BANCL).

The Company plans to discuss its fourth quarter earnings, among other items, on March 1, 2013, at 8:00 a.m., Pacific Time. All interested parties are welcome to attend the conference call at 866-503-8728, event code 68806439.

About First PacTrust Bancorp

Based in Irvine, CA, First PacTrust Bancorp, Inc. is the $1.7 billion multi-bank holding company of Pacific Trust Bank and Beach Business Bank, which together operate banking offices in Los Angeles, Orange, San Diego and Riverside counties, and loan production offices in California, Arizona, Oregon and Washington.

Forward-Looking Statements

This press release includes forward-looking statements within the meaning of the “Safe-Harbor” provisions of the Private Securities Litigation Reform Act of 1995. These statements are necessarily subject to risk and uncertainty and actual results could differ materially from those anticipated due to various factors, including those set forth from time to time in the documents filed or furnished by First PacTrust with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements and First PacTrust undertakes no obligation to update any such statements to reflect circumstances or events that occur after the date on which the forward-looking statement is made.
ITEM 1 – FINANCIAL STATEMENTS
First PacTrust Bancorp, Inc.
Consolidated Statements of Financial Condition
(In thousands of dollars except share and per share data)
(Unaudited)    
 
   
December 31, December 31,
2012 2011
   
ASSETS
Cash and due from banks $ 8,254 $ 6,755
Interest-bearing deposits   100,389     37,720  
Total cash and cash equivalents 108,643 44,475
Time deposits in financial institutions 5,027
Securities available for sale 121,419 101,616
Federal Home Loan Bank and Other Bank stock, at cost 8,842 6,972
Loans receivable, net of allowance of $14,448 at December 31, 2012 and $12,780 at December 31, 2011 1,234,023 775,609
Loans held for sale 113,158
Servicing rights, net 2,278
Accrued interest receivable 5,003 3,569
Other real estate owned (OREO), net 4,527 14,692
Premises and equipment, net 16,147 10,585
Bank owned life insurance investment 18,704 18,451
Prepaid FDIC assessment 1,385 2,405
Deferred income tax 7,572 7,643
Goodwill 7,048
Other intangible assets, net 5,474
Other assets   28,544     13,024  
Total assets $ 1,687,792   $ 999,041  
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits
Noninterest-bearing demand $ 120,291 $ 20,039
Interest-bearing Deposits
Interest-bearing demand 89,481 68,578
Money market accounts 294,804 188,658
Savings accounts 159,055 39,176
Certificates of deposit   642,710     469,883  
Total deposits 1,306,341 786,334
Advances from Federal Home Loan Bank 75,000 20,000
Notes payable, net 84,892
Reserve for loss reimbursements on sold loans 4,932
Accrued expenses and other liabilities   27,869     8,212  
Total liabilities 1,499,034 814,546
Commitments and contingent liabilities
 
SHAREHOLDERS’ EQUITY
Preferred stock, $.01 par value per share, $1,000 per share liquidation preference for a total of $32,000; 50,000,000 shares authorized, 32,000 shares issued and outstanding at December 31, 2012; 32,000 shares issued and outstanding at December 31, 2011 31,935 31,934
Common stock, $.01 par value per share, 196,863,844 shares authorized; 12,013,717 shares issued and 10,780,427 shares outstanding at December 31, 2012; 11,756,636 shares issued and 10,581,704 shares outstanding at December 31, 2011 120 117
Class B non-voting non-convertible Common stock, $.01 par value per share, 3,136,156 shares authorized; 1,112,188 shares issued and outstanding at December 31, 2012 and 1,054,991 shares issued and outstanding at December 31, 2011 11 11
Additional paid-in capital 154,563 150,786
Retained earnings 26,550 27,623
Treasury stock, at cost (December 31, 2012-1,233,290 shares, December 31, 2011-1,174,932 shares) (25,818 ) (25,037 )
Accumulated other comprehensive income/(loss), net   1,397     (939 )
Total shareholders’ equity   188,758     184,495  
Total liabilities and shareholders’ equity $ 1,687,792   $ 999,041  
 
ITEM 1 – FINANCIAL STATEMENTS
First PacTrust Bancorp, Inc.
Consolidated Statements of Income and Comprehensive Income/(Loss)
(In thousands of dollars except share and per share data)
(Unaudited)        
 
 
Three months ended Twelve months ended
December 31, December 31,
 
  2012     2011     2012     2011  
Interest and dividend income
Loans, including fees $ 16,883 $ 8,061 $ 51,942 $ 30,997
Securities 597 700 2,736 3,963
Dividends and other interest-earning assets   126     62     353   217  
Total interest and dividend income 17,606 8,823 55,031 35,177
Interest expense
Savings 177 37 410 319
NOW 168 31 330 81
Money market 168 116 726 306
Certificates of deposit 1,161 1,058 4,494 4,283
Federal Home Loan Bank advances 82 88 348 1,048
Capital leases 5 9
Notes payable   1,007         2,162    
Total interest expense   2,768     1,330     8,479   6,037  
Net interest income 14,838 7,493 46,552 29,140
Provision for loan and lease losses   3,499     4,114     5,500   5,388  
Net interest income after provision for loan and lease losses 11,339 3,379 41,052 23,752
Noninterest income
Customer service fees 602 366 1,883 1,473
Mortgage banking revenue 14,409 20,886
All other noninterest income   954     133     13,850   3,440  
Total noninterest income 15,965 499 36,619 4,913
Noninterest expense
Salaries and employee benefits 18,234 4,426 41,891 13,914
Occupancy and equipment 3,109 922 7,902 2,848
All other operating expenses   7,601     5,865     21,768   14,927  
Total noninterest expense   28,944     11,213     71,561   31,689  
Income/(loss) before income taxes (1,640 ) (7,335 ) 6,110 (3,024 )
Income tax expense/(benefit)   1,545     (1,721 )   115   (296 )
Net income/(loss)   (3,185 )   (5,614 )   5,995   (2,728 )
Preferred stock dividends   317     396     1,359   534  
Net income/(loss) available to common shareholders $ (3,502 ) $ (6,010 ) $ 4,636 $ (3,262 )
Basic earnings per common share $ (0.30 ) $ (0.52 ) $ 0.40 $ (0.28 )
Diluted earnings per common share $ (0.30 ) $ (0.52 ) $ 0.40 $ (0.28 )
Other comprehensive income/(loss), before tax:
Change in net unrealized gains on securities:
Net unrealized holding gains arising during the period 98 (715 ) 2,253 (3,123 )
Less: reclassification adjustment for (gains)/losses included in net income       (1 )   83   (2,888 )
Net unrealized gains, net of reclassification adjustments 98 (716 ) 2,336 (6,011 )
Income tax expense/(benefit) related to items of other comprehensive income   (921 )   (294 )   -   (2,473 )
Total other comprehensive income/(loss), net of tax   1,019     (422 )   2,336   (3,538 )
Comprehensive income/(loss) $ (2,166 ) $ (6,036 ) $ 8,331 $ (6,266 )
 
FIRST PACTRUST BANCORP, INC.
SELECTED QUARTERLY FINANCIAL DATA
(Amounts in thousands, except share and per share data)
                     
December September June March December September
 

2012(1)

 
 

2012(1)

 
  2012     2012     2011     2011  
 
Balance sheet data, at quarter end:
Total assets $ 1,687,792 $ 1,669,732 $ 1,115,120 $ 1,083,082 $ 999,041 $ 928,977
Total gross loans 1,248,471 1,215,374 839,931 838,409 787,280 703,454
Total loans held for sale 113,158 110,291 - - - -
Allowance for loan losses (14,448 ) (12,379 ) (11,448 ) (11,173 ) (12,780 ) (8,993 )
Securities available for sale 121,419 122,271 117,008 101,452 101,616 64,926
Noninterest-bearing deposits 120,291 88,616 26,594 24,961 20,039 20,934
Total deposits 1,306,342 1,328,221 852,331 853,843 786,334 711,609
FHLB advances and other borrowings 159,892 120,018 66,883 35,000 20,000 20,000
Total shareholders’ equity 188,758 191,739 182,295 184,002 184,495 191,488
 
Balance sheet data, quarterly averages:
Total assets $ 1,687,501 $ 1,533,497 $ 1,108,120 $ 1,048,033 $ 964,321 $ 904,738
Total gross loans 1,235,548 1,141,426 829,592 806,648 708,598 679,199
Total loans held for sale 111,763 43,851 - - - -
Securities available for sale 127,297 136,307 107,910 105,254 92,231 90,454
Total interest earning assets 1,574,154 1,432,443 1,030,259 973,400 887,799 829,000
Total deposits 1,339,460 1,207,610 857,856 814,115 743,610 702,780
Advances from FHLB and other borrowings 126,096 99,002 60,163 37,802 20,000 20,326
Total shareholders’ equity 195,305 192,575 182,260 186,041 191,824 173,495
Statement of operations data, for the three months ended:
Interest income $ 17,606 $ 16,722 $ 10,378 $ 10,325 $ 8,823 $ 8,823
Interest expense   2,768     2,314     1,947     1,449     1,330     1,339  
Net interest income 14,838 14,408 8,431 8,876 7,493 7,484
Provision for loan losses   3,499     1,031     279     691     4,114     823  
Net interest income after provision for loan losses 11,339 13,377 8,152 8,185 3,379 6,661
Noninterest income 15,965 19,512 639 503 499 2,012
Noninterest expense   28,944     24,456     9,943     8,218     11,213     7,661  
Income/(loss) before income taxes (1,640 ) 8,433 (1,152 ) 470 (7,335 ) 1,012
Income tax expense/(benefit) 1,545 (1,110 ) (413 ) 93 (1,721 ) 368
Preferred stock dividends   317     328     314     400     396     138  
Net income/(loss) available to common stockholders $ (3,502 ) $ 9,215   $ (1,053 ) $ (23 ) $ (6,010 ) $ 506  
 
Profitability and other ratios:
Return on avg. assets (2) (0.75 %) 2.49 % (0.27 %) 0.14 % (2.33 %) 0.28 %
Return on avg. equity (2) (6.52 ) 18.59 (1.61 ) 0.81 (11.71 ) 1.48
Net interest margin (2) 3.77 4.02 3.27 3.65 3.38 3.61
Noninterest income to total revenue (3) 51.83 57.52 5.88 5.36 6.24 21.19
Noninterest income to avg. assets (2) 3.78 5.09 0.19 0.19 0.21 0.89
Noninterest exp. to avg. assets (2) 6.86 6.38 3.59 3.14 4.65 3.39
Efficiency ratio (4) 93.96 72.08 111.01 87.62 140.30 80.68
Avg. loans to average deposits 100.59 98.15 96.71 98.08 95.29 96.64
Securities available for sale to total assets 7.19 7.32 10.49 9.37 10.17 6.99
Average interest-earning assets to average interest-bearing liabilities 108.16 % 110.21 % 112.72 % 114.26 % 116.26 % 114.64 %
 
Asset quality information and ratios:
Nonaccrual Loans $ 22,993 $ 16,181 $ 16,878 $ 18,343 $ 19,254 $ 0.00
90+ delinquent loans and OREO:
90+ delinquent loans 9,176 1,479 1,985 2,557 7,790 9,151
Other real estate owned (OREO)   4,527     8,704     9,239     12,843     14,692     20,551  
Totals $ 13,703   $ 10,183   $ 11,224   $ 15,400   $ 22,482   $ 29,702  
 
Net loan charge-offs $ 1,429 $ 226 $ 0 $ 2,298 $ 327 $ 261
Allowance for loan losses to nonaccrual loans, net 66.42 % 84.41 % 74.80 % 65.24 % 78.43 % 82.38 %
Allowance for loan losses to total loans 1.16 1.02 1.36 1.33 1.62 1.28
Allowance for loan losses to total loans (5)(excluding purchased & PCI loans) 1.51 1.35 1.40 1.37 1.62 1.28
90+ delinquent loans and OREO to total loans and OREO 1.09 0.83 1.42 1.81 2.80 4.10
90+ delinquent loans and OREO to total assets 0.81 % 0.61 % 1.07 % 1.42 % 2.25 % 3.20 %
 

(1) Includes impact of Beach Business Bank and Gateway Business Bank acquisition

(2) Ratios are presented on an annualized basis

(3) Total revenue is equal to the sum of net interest income before provision and noninterest income

(4) Efficiency ratios are calculated by dividing noninterest expense by the sum of net interest income before provision for loan losses and noninterest income

(5) Purchased loans that have been marked to market at acquisition

Copyright Business Wire 2010

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