Strong Growth in Core Earnings, Net Income, Loan Originations and Performing Loans Highlight Fourth
Strong Growth in Core Earnings, Net Income, Loan Originations and Performing Loans Highlight Fourth Quarter and Year-End Result for Pacific National Bank
MIAMI--(BUSINESS WIRE)-- Pacific National Bank today reported net income of $797,000 for the three months ended December 31, 2012, compared with a net loss of ($2,941,000) for the three months ended December 31, 2011, President and CEO Carlos Fernandez-Guzman announced.
Year to date new loan originations grew by 48% when compared to the same prior year period resulting in net performing loans growth of $26 million to $148 million for the 12 months ended December 31, 2012, an increase of 21% from $122 million on December 31, 2011.
The Bank's fourth quarter net income of $797,000 was primarily due to core operating earnings of $557,000, gains on sale of securities of $12,000, and the release of a FIN 48 reserve associated with the settlement of an IRS audit of $1,179,000. This was partially offset by provision for loan and lease losses associated a single impaired loan and the growth in the loan portfolio, collectively $512,000, and change of control expenses of $439,000. That compares with a net loss of ($2,941,000) in the fourth quarter of 2011, which included core operating losses of ($196,000), a FIN 48 reserve of $2,581,000 associated with a prior year tax return, provision for loan and lease losses of $221,000, and extraordinary regulatory costs of $82,000, partially offset by gains on the sale of investment securities of $139,000.
For the twelve months ended December 31, 2012, the Bank posted net income of $998,000 compared with a net loss of ($3,357,000) for the same period in 2011. Core operating earnings for 2012, which exclude extraordinary regulatory and change of control costs of $894,000, provision for loan losses of $884,000, gains on sale of securities of $334,000, and tax recoveries of $1,663,000, came to $779,000. Core operating losses of ($1,098,000) in 2011 exclude extraordinary regulatory costs of $572,000, provision for loan losses of $458,000, gains on sale of securities of $842,000, and tax provision of $2,071,000.
Pacific's capital levels and ratios are among the highest in the community bank sector for the State of Florida. Tier 1 capital at December 31, 2012 was 11.67%, while total risk-based capital was 21.71%. Non-performing assets at the end of the fourth quarter were $13.8 million or 3.9% of total assets.
The allowance for loan losses now stands at 2.39 percent of gross loans. The Bank's ratio of non-performing assets today stands at 30.59 percent of Tier 1 capital and loan loss reserves.
Pacific National Bank, headquartered at 1390 Brickell Avenue, was established as a national bank in 1985 and has $355 million in assets.
KEYWORDS: United States North America Florida
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