First PacTrust Bancorp, Inc. Announces 3rd Quarter 2012 Results
First PacTrust Bancorp, Inc. Announces 3rdQuarter 2012 Results
IRVINE, Calif.--(BUSINESS WIRE)-- First PacTrust Bancorp (NAS: BANC) ("First PacTrust" or the "Company"), the holding company for Pacific Trust Bank and Beach Business Bank, today announced results for the quarter and the nine months ended September 30, 2012. For the quarter, the Company reported net income of $9.5 million and net income available to common shareholders of $9.2 million, or $0.79 per share. For the nine months ended September 30, 2012, the Company reported net income of $9.2 million and net income available to common shareholders of $8.1 million, or $0.70 per share.
During the third quarter, the Company completed its acquisitions of Beach Business Bank and Gateway Business Bank. Transaction-related costs and severance payments related to executive management departures during the period resulted in approximately $4.2 million in expense recognized during the third quarter of 2012. The Company recognized a preliminary bargain purchase gain of $12.1 million related to the Gateway Business Bank acquisition and recorded goodwill of $7.1 million related to the Beach Business Bank acquisition during the third quarter of 2012. In conjunction with these acquisitions, the Company also recorded other intangible assets carried at $5.8 million at September 30, 2012, after third quarter 2012 amortization of $0.3 million. These other intangible assets included core deposit intangibles of $4.5 million for Beach and $0.7 million for Gateway and trade name intangibles of $1.0 million.
Steven Sugarman, Chief Executive Officer, commented: "We are pleased to have closed the acquisitions of Beach Business Bank and Gateway Business Bank. This quarter demonstrates First PacTrust's increased core earnings power as it passes $1.6 billion in assets. We seek to further enhance core earnings by closing on the acquisition of The Private Bank of California, targeted to occur in the second quarter of 2013, and by completing the integration of our current two banking subsidiaries into a single, fully integrated commercial bank."
The Company's total assets increased by $555 million from $1.1 billion at June 30, 2012 to finish the third quarter of 2012 at $1.7 billion. The Company's net interest margin for the third quarter of 2012 was 4.02% and its cost of interest-bearing deposits was 0.53%. Non-interest income for the quarter climbed to $19.5 million including the bargain purchase gain. Growth in non-interest income was enhanced by the acquisition of Mission Hills Mortgage Bankers on August 18, 2012, as a part of the Gateway acquisition. Mission Hills Mortgage originated approximately $110 million in single-family residential loans per month during the third quarter.
After consolidation of the net deferred tax assets of Beach Business Bank and Gateway Business Bank, the Company has recorded a net deferred tax asset of $7.4 million, net of a valuation allowance of $7.0 million as of September 30, 2012. The Company will continue to evaluate this valuation allowance each quarter.
During the third quarter of 2012, the Company announced the planned acquisition of The Private Bank of California, a $600 million (assets) bank headquartered in Century City, CA. During the third quarter of 2012, the Company also reported a quarterly dividend of $0.12 per common share, paid on October 1, 2012.
The Company plans to discuss its third quarter earnings, among other items, at its Investor Day on November 9, 2012, from 9:00 a.m. to 1:00 p.m., Pacific Time. All interested parties are welcome to attend the event at the Riviera Country Club in Los Angeles, CA or via live audio at www.firstpactrust.com or conference call at 866-503-8728, event code 68806439.
Excerpts from the Investor Day Presentation relating to third quarter earnings are available on the www.firstpactrust.com website.
About First PacTrust Bancorp
Based in Irvine, CA, First PacTrust Bancorp, Inc. is the $1.6-billion multi-bank holding company of Pacific Trust Bank and Beach Business Bank, which together operate 19 banking offices in Los Angeles, Orange, San Diego and Riverside counties, and 23 loan production offices in California, Arizona, Oregon and Washington. PacTrust Bank gives customers convenient account access choices through 30,000 surcharge-free ATM locations nationwide, as well as mobile, online and telephone banking. PacTrust Bank and Beach Business Bank provide a full range of deposit and loan services tailored to meet the needs of small-to-mid-sized businesses, professionals and individuals.
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 the Company 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.
First PacTrust Bancorp, Inc. | ||||||||||
Consolidated Statements of Financial Condition | ||||||||||
(In thousands of dollars except share and per share data) | ||||||||||
(Unaudited) | ||||||||||
September 30, | December 31, | |||||||||
2012 | 2011 | |||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 8,867 | $ | 6,755 | ||||||
Interest-bearing deposits | 104,638 | 37,720 | ||||||||
Federal funds sold | 8,555 | — | ||||||||
Total cash and cash equivalents | 122,060 | 44,475 | ||||||||
Time deposits in financial institutions | 5,621 | — | ||||||||
Securities available for sale | 122,271 | 101,616 | ||||||||
Federal Home Loan Bank and Other Bank stock, at cost | 8,842 | 6,972 | ||||||||
Loans receivable, net of allowance of $12,379 at September 30, 2012 and $12,780 at December 31, 2011 | 1,202,995 | 775,609 | ||||||||
Loans held for sale | 110,291 | — | ||||||||
Servicing rights, net | 2,170 | — | ||||||||
Accrued interest receivable | 5,312 | 3,569 | ||||||||
Other real estate owned (OREO), net | 8,704 | 14,692 | ||||||||
Premises and equipment, net | 15,492 | 10,585 | ||||||||
Bank owned life insurance investment | 18,649 | 18,451 | ||||||||
Prepaid FDIC assessment | 1,622 | 2,405 | ||||||||
Deferred income tax | 7,441 | 7,643 | ||||||||
Goodwill | 7,039 | — | ||||||||
Other intangible assets, net | 5,841 | — | ||||||||
Other assets | 25,382 | 13,024 | ||||||||
Total assets | $ | 1,669,732 | $ | 999,041 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Deposits | ||||||||||
Noninterest-bearing demand | $ | 88,616 | $ | 20,039 | ||||||
Interest-bearing demand | 183,516 | 68,578 | ||||||||
Money market accounts | 253,557 | 188,658 | ||||||||
Savings accounts | 162,979 | 39,176 | ||||||||
Certificates of deposit | 639,553 | 469,883 | ||||||||
Total deposits | 1,328,221 | 786,334 | ||||||||
Advances from Federal Home Loan Bank | 86,000 | 20,000 | ||||||||
Notes payable, net | 34,018 | — | ||||||||
Reserve for loss reimbursements on sold loans | 2,665 | — | ||||||||
Accrued expenses and other liabilities | 27,089 | 8,212 | ||||||||
Total liabilities | 1,477,993 | 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 September 30, 2012 and December 31, 2011 | 31,925 | 31,934 | ||||||||
Common stock, $.01 par value per share, 196,863,844 shares authorized; 0 shares issued and 0 shares outstanding at September 30, 2012; 11,756,636 shares issued and 10,581,704 shares outstanding at December 31, 2011 | 119 | 117 | ||||||||
Class B non-voting non-convertible Common stock, $.01 par value per share, 3,136,156 shares authorized; 0 shares issued and outstanding at September 30, 2012 and 1,054,991 shares issued and outstanding at December 31, 2011 | 11 | 11 | ||||||||
Additional paid-in capital | 153,467 | 150,786 | ||||||||
Retained earnings | 31,477 | 27,623 | ||||||||
Treasury stock, at cost (September 30, 2012-0 shares, December 31, 2011-1,174,932 shares) | (25,638 | ) | (25,037 | ) | ||||||
Accumulated other comprehensive income/(loss), net | 378 | (939 | ) | |||||||
Total shareholders' equity | 191,739 | 184,495 | ||||||||
Total liabilities and shareholders' equity | $ | 1,669,732 | $ | 999,041 | ||||||
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 | Nine months ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2012 | 2011 | 2012 | 2011 | |||||||||||||||||
Interest and dividend income | ||||||||||||||||||||
Loans, including fees | $ | 15,928 | $ | 7,757 | $ | 35,060 | $ | 22,936 | ||||||||||||
Securities | 708 | 1,017 | 2,139 | 3,263 | ||||||||||||||||
Dividends and other interest-earning assets | 86 | 49 | 226 | 155 | ||||||||||||||||
Federal funds sold | — | — | — | — | ||||||||||||||||
Total interest and dividend income | 16,722 | 8,823 | 37,425 | 26,354 | ||||||||||||||||
Interest expense | ||||||||||||||||||||
Savings | 211 | 95 | 233 | 283 | ||||||||||||||||
NOW | 102 | 18 | 162 | 50 | ||||||||||||||||
Money market | 166 | 62 | 557 | 189 | ||||||||||||||||
Certificates of deposit | 1,099 | 1,072 | 3,333 | 3,225 | ||||||||||||||||
Federal Home Loan Bank advances | 74 | 92 | 266 | 960 | ||||||||||||||||
Capital leases | 2 | — | 4 | — | ||||||||||||||||
Notes payable | 660 | — | 1,155 | — | ||||||||||||||||
Total interest expense | 2,314 | 1,339 | 5,710 | 4,707 | ||||||||||||||||
Net interest income | 14,408 | 7,484 | 31,715 | 21,647 | ||||||||||||||||
Provision for loan and lease losses | 1,031 | 823 | 2,001 | 1,274 | ||||||||||||||||
Net interest income after provision for loan and lease losses | 13,377 | 6,661 | 29,714 | 20,373 | ||||||||||||||||
Noninterest income | ||||||||||||||||||||
Customer service fees | 543 | 396 | 1,282 | 1,107 | ||||||||||||||||
Mortgage loan prepayment penalties | 46 | 54 | 62 | 80 | ||||||||||||||||
Loan servicing income | 146 | — | 146 | — | ||||||||||||||||
Income from bank owned life insurance | 69 | 77 | 198 | 221 | ||||||||||||||||
Net gain/(loss) on sales of securities available for sale | (12 | ) | 1,450 | (83 | ) | 2,887 | ||||||||||||||
Net gains on mortgage banking activities | 5,546 | — | 5,546 | — | ||||||||||||||||
Net gain on sales of loans | 59 | — | 204 | — | ||||||||||||||||
Bargain purchase gain | 12,055 | — | 12,055 | — | ||||||||||||||||
Other | 1,060 | 35 | 1,244 | 119 | ||||||||||||||||
Total noninterest income | 19,512 | 2,012 | 20,654 | 4,414 | ||||||||||||||||
Noninterest expense | ||||||||||||||||||||
Salaries and employee benefits | 13,613 | 3,251 | 23,657 | 9,488 | ||||||||||||||||
Occupancy and equipment | 2,473 | 730 | 4,793 | 1,926 | ||||||||||||||||
Advertising | 395 | 71 | 848 | 182 | ||||||||||||||||
Professional fees | 3,788 | 667 | 5,318 | 1,416 | ||||||||||||||||
Stationery paper, supplies, and postage | 286 | 105 | 582 | 336 | ||||||||||||||||
Data processing | 1,037 | 356 | 1,946 | 972 | ||||||||||||||||
ATM costs | 93 | 81 | 277 | |||||||||||||||||
