- GAAP annualized return on average assets (ROAA) was 0.63%.
- GAAP annualized return on average shareholder equity (ROAE) was 5.61%.
- The net interest margin for the quarter was 4.41%.
- Annualized growth in core, non-wholesale deposits was 21%.
- Annualized growth in total loans other than warehouse lines was 9.5%.
- Non-performing assets remain at $0.
- Capital ratios exceed levels required to be considered "well capitalized."
Non-interest income increased in the first quarter of 2016 by 226% to $684,000 from $210,000 in the first quarter of 2015, with the largest increases coming from gain on sale of SBA loans and SBA loan servicing income. In the fourth quarter of 2015, non-interest income equaled $990,000, which included gain on sale of SBA loans of $500,000.Non-interest expenses increased in the first quarter by 72% to $3.4 million from $2.0 million in the first quarter of 2015. Net of merger related expenses, non-interest expenses increased $1.5 million to $3.2 million from $1.8 million a year earlier with increases in salaries and benefits, occupancy expenses, legal and consulting, data processing, and network expenses representing the largest components of the increase. BALANCE SHEET Total assets at March 31, 2016, increased 1.7% to $359.5 million from $353.4 million at December 31, 2015. Total loans increased 0.3% to $307.6 million from $306.7 million at December 31, 2015. Excluding mortgage warehouse loans, total other loans increased by $7.0 million during the quarter for an annualized growth rate of 9.5%. Mortgage warehouse lines decreased $6.1 million during the current quarter, while commercial real estate loans increased $8.2 million. Total non-interest bearing demand deposits increased $19.3 million, or 17.2%, to $131.2 million at March 31, 2016, from $112.0 million at December 31, 2015. The strong increase in demand deposits helped to reduce the Bank's wholesale time deposits by $7.0 million in the quarter. Total deposits at March 31, 2016, were up by $2.8 million to $286.3 million from $283.5 million at December 31, 2015. CREDIT QUALITY The Bank had no nonaccrual loans as of March 31, 2016, compared to $2,000 as of December 31, 2015. Overall credit quality remained strong during the quarter, resulting in the determination by management that no provision for the allowance for loan and lease loss was required.
Excluding loans acquired in the Vibra Bank merger, and loans held for sale, the allowance for loan and lease losses to total loans as of March 31, 2016, was 1.43%, versus 1.51% as of December 31, 2015. In addition, loans acquired in the Vibra Bank merger totaling $74.6 million at the end of the quarter are carried at a discount of $595,000 as required by GAAP. Total loans held for sale equaled $12.6 million at the end of the quarter, of which mortgage loans held for sale was $3.2 million which were held at a discount of 2.00% to the face value of the note.REGULATORY CAPITAL Both the Company and Bank remained "well capitalized" by regulatory definition with capital ratios, as of March 31, 2016, as follows:
|Tier 1 Leverage Ratio:||10.25%||11.22%|
|Common Equity Tier 1 Capital Ratio:||11.55%||12.64%|
|Tier 1 Capital Ratio:||11.55%||12.64%|
|Total Capital Ratio:||12.58%||13.67%|
Additional Information about the Proposed Transaction and Where to Find ItThis communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction, Pacific Commerce Bancorp prepared and filed with the California Department of Business Oversight certain applications containing, among other things, a joint proxy statement/prospectus and other documents with respect to the proposed Merger. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS PROVIDED BY PACIFIC COMMERCE BANCORP, PACIFIC COMMERCE BANK, AND PROAMÉRICA BANK IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors may obtain free copies of the joint proxy statement/prospectus and other relevant documents prepared by Pacific Commerce Bancorp and ProAmérica Bank free of charge by contacting Pacific Commerce Bancorp at 213-417-0164 or ProAmérica Bank at 213-613-5000.
|Pacific Commerce Bancorp Consolidated Selected Financial Data - Unaudited (Amounts are in thousands, except for book value per share and shares outstanding data)|
|BALANCE SHEET||March 31, 2016||March 31, 2015||% Change||December 31, 2015|
|Cash and due from banks||$||29,829||$||2,292||1201.4||%||$||23,293|
|Federal funds sold||8,584||16,240||-47.1||%||9,592|
|Mortgage warehouse loans held for sale||3,205||0||100.0||%||9,288|
|Other loans held for sale||9,399||5,051||86.1||%||8,389|
|Loans, net of unearned income||295,042||188,368||56.6||%||289,020|
|Less: Allowance for loan losses||(3,156||)||(2,914||)||8.3||%||(3,066||)|
|Non-interest bearing deposits||$||131,230||$||41,547||215.9||%||$||111,963|
|Accrued interest and other liabilities||1,306||799||63.5||%||1,310|
|Other comprehensive income||3||12||-75.0||%||4|
|Total Shareholders' Equity||39,933||25,756||55.0||%||39,118|
|Total Liabilities & Shareholders' Equity||$||359,469||$||220,337||119.3||%||$||353,393|
|Book value per share at end of period||$||6.08||$||5.77||5.4||%||$||5.98|
|Tangible Book value per share at end of period||$||5.53||$||5.77||-4.2||%||$||5.41|
|Pacific Commerce Bancorp Consolidated Selected Financial Data - Unaudited (Amounts are in thousands, except for earnings per share data)|
|For the Three Months Ended March 31,||For the Three Months Ended December 31,|
|2016||2015||% Change||2015||% Change|
|STATEMENT OF OPERATIONS|
|Total interest income||$||3,955||$||2,194||80||%||$||3,624||9||%|
|Total interest expense||256||127||102||%||203||26||%|
|Net interest income||3,699||2,067||79||%||3,421||8||%|
|Provision for loan losses||0||(500||)||0||%||0||0||%|
|Non-interest expense (non-merger related)||3,234||1,772||83||%||3,210||1||%|
|Income before merger related expenses and income taxes||1,149||1,005||14||%||1,201||-4||%|
|Non-recurring merger related expenses||133||187||-29||%||83||60||%|
|Income tax expenses||460||284||62||%||487||-6||%|
|Basic earnings per share||$||0.08||$||0.12||-33||%||$||0.10||-20||%|
|Diluted earnings per share||$||0.08||$||0.12||-33||%||$||0.09||-11||%|
|Average shares outstanding||6,557,723||4,461,255||6,543,701|