Stockton , California – April 19, 2007 Steve n A. Rosso, President and C.E.O. of Pacific State Bancorp (NASDAQ Global Market/PSBC), the parent company of Pacific State Bank, today reported 1st quarter profits and continued asset growth for the Stockton, California based financial institution:
- Net income for the first quarter of 2007 of $1,326,000
- Total Assets as of March 31, 2007 of $404,195,000.
PSBC quarter over quarter March 31 2007 compared to March 31, 2006 financial performance information is as follows:
Balance Sheet:
- Total Federal Funds, Interest Bearing Deposits in Banks and Investment Securities: $74,959,000 , an increase of $48,581,000 or 184.17%.
- Net Loans: $287,474,000 , an increase of $33,665,000 or 13.26%.
- Total Assets: $404,195,000 , an increase of $86,551 or 27.25%.
- Non-Interest Bearing Deposits: $66,559,000 , an increase of $6,375,000 or 10.5%.
- Total Deposits: $356,061,000 , an increase of $90,498,000 or 34.08%.
- Total Share holders Equity: $30,466,000 , an increase of $7,785,000 or 34.62%.
Income Statement:
- Total Interest Income: $7,506,000, an increase of $1,714,000 or 29.59%.
- Total Interest Expense: $3,175,000, an increase of $1,455,000 or 84.59%.
- Net Interest Income: $4,331,000, an increase of $259,000 or 6.36%.
- Non-Interest Income: $686,000, an increase of $87,000 or 14.52%.
- Non-Interest Expense: $2,700,000, an increase of $113,000 or 4.37%. As of March 31, the Company had 86 full-time employees as compared to 76 as of March 31, 2006.
- Net Income: $1,326,000, an increase of $119,000 or 9.87%.
- Net Interest Margin: 5.10%, down 80 basis points. The decrease is due primarily to increases in the rates paid on time deposits and the change in mix of deposits with more time deposits offset by the increases in the overall yields on earning assets and the change in mix of earning assets with more loans and Federal funds sold.
- Annualized Return on Average Assets: 1.41% down from 1.59%.
- Annualized Return on Average Equity: 18.25% down from 22.67%. The decrease in ROE is primarily attributable to an increase in shareholders equity from the net income and the proceeds from the sale of common stock to a new member of the Board of Directors and the exercise of options.
- Efficiency Ratio: 53.80% improving slightly from 55.38%.
- Basic Earnings Per Share: $0.36, an increase of $0.01 per share or 2.86%.
- Diluted Earnings Per Share: $0.33, an increase of $0.02 per share or 6.45%.
Balance Sheet – March 31, 2007 as compared to December 31, 2006
- Total Fed Funds, Interest Bearing Deposits in Banks and Investment Securities: $74,959,000 , a increase of $20,222,000 or 36.94%.
- Net Loans: $287,474,000 , an increase of $156,000 or 0.05%.
- Total Assets: $404,195,000 , an increase of $17,443,000 or 4.51%.
- Non-Interest Bearing Deposits: $66,559,000 a decrease of $6,638,000 or 9.07%.
- Total Deposits: $356,061,000 , an increase of $15,065,000 or 4.42%.
- Total Share holders Equity: $30,466,000 , an increase of $1,407,000 or 4.84%.
The Company’s net income decreased by $191,000 compared to the 4 th quarter of 2006. This was primarily the result of a reduction in net interest income of $234,000, a decline in non interest income of $88,000 and an increase in the provision for loan losses of $75,000, offset by a decrease in the provision for income taxes of $197,000. The decline in net interest income is primarily due to the increased level of and rates paid on certificates of deposit and a decline in non-interest bearing deposits, offset by an increase in interest income primarily from the increase in the level of and yields earned on loans. At March 31, 2007, credit quality continues to be strong. The Company had no non-accrual loans, no impaired loans, no loans over 60 days past due and only one loan, in the amount of $120,000, over thirty days past due.
Management continues to evaluate and assess the procedures for the accounting of loan fee and cost deferrals under SFAS 91. Prepayment trends on loans have caused both income and expense to increase at times. Management has assessed the true average life of loans on the books and matching deferred gains, fees and expense to such history.
Attached are certain unaudited financial statements supporting the financial information summarized above. Further inquiries should be directed to Mr. Steven Rosso at 209-870-3214, or by mail to P.O. Box 1649, Stockton, California 95201. Additional information also can be obtained by visiting the Company website –www.pacificstatebank.com.
PACIFIC STATE BANCORP AND SUBSIDIARY |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
|
|
(in thousands, except share amounts) |
March
31, |
December 31, |
Assets |
2007 |
2006 |
|
Cash and due from banks |
$15,309 |
$18,985 |
Federal funds sold |
47,190 |
31,630 |
Investment securities – (carrying value of $27,882 in 2007 and $23,186 in 2006) |
27,769 |
23,108 |
Loans, less allowance for loan losses of $2,646 in 2007 and $2,478 in 2006 |
287,474 |
287,318 |
Bank premises and equipment, net |
12,072 |
11,957 |
Company owned life insurance |
6,139 |
6,079 |
Accrued interest receivable and other assets |
8,242 |
7,676 |
Total assets |
$404,195 |
$386,753 |
|
|
|
Liabilities and Shareholders’ Equity |
|
Deposits: |
|
|
Non-interest bearing |
$66,559 |
$73,197 |
Interest bearing |
289,502 |
267,799 |
Total deposits |
356,061 |
340,996 |
Other borrowings |
4,900 |
4,900 |
Subordinated debentures |
8,764 |
8,764 |
Accrued interest payable and other liabilities |
4,004 |
3,034 |
Total liabilities |
373,729 |
357,694 |
Shareholders’ equity: |
|
|
Preferred stock – no par value; 2,000,000 shares authorized; |
|
|
Common stock – no par value; 24,000,000 shares authorized; |
|
|
shares issued and outstanding 3,678,857 in 2007 and
3,661,477 in 2006 |
9,753 |
9,651 |
Retained earnings |
20,781 |
19,455 |
Accumulated other comprehensive (loss) income, net of tax |
(68) |
(47) |
Total shareholders’ equity |
30,466 |
29,059 |
Total liabilities and shareholders’ equity |
$404,195 |
$386,753 |
|
|
|
PACIFIC STATE BANCORP |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
Three months ended
March 31, 2007 |
(in thousands, except share amounts) |
2007 |
2006 |
Interest income: |
|
|
Interest and fees on loans |
$6,842 |
$5,461 |
Interest on Federal funds sold |
321 |
11 |
Interest on investment securities |
343 |
320 |
Total interest income |
7,506 |
5,792 |
Interest expense: |
|
|
Interest on deposits |
2,917 |
1,485 |
Subordinated debentures |
192 |
164 |
Interest on borrowings |
66 |
71 |
Total interest expense |
3,175 |
1,720 |
Net interest income |
4,331 |
4,072 |
Provision for loan losses |
165 |
90 |
Net interest income after |
|
|
provision for loan losses |
4,166 |
3,982 |
Non-interest income: |
|
|
Service charges |
221 |
208 |
Other fee income |
456 |
231 |
Gain from sale of loans |
9 |
160 |
Total non-interest income |
686 |
599 |
Non-interest expenses: |
|
|
Salaries and employee benefits |
1,482 |
1,349 |
Occupancy |
286 |
199 |
Furniture and equipment |
167 |
178 |
Other |
775 |
861 |
Total other expenses |
2,710 |
2,587 |
Income before income taxes |
2,142 |
1,994 |
Provision for income taxes |
816 |
787 |
Net income |
$1,326 |
$1,207 |
Basic earnings per share |
$0.36 |
$0.35 |
Diluted earnings per share |
$0.33 |
$0.31 |
|
|
|
Weighted average common shares outstanding |
3,664,822 |
3,477,314 |
Weighted average common and common equivalent shares outstanding |
|
|
4,034,901 |
3,895,844 |
|
|
|
PACIFIC STATE BANCORP |
Yield Analysis |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
Three Months Ended |
|
|
|
March 31, 2007 |
March 31, 2006 |
|
|
|
|
Interest |
Average |
|
Interest |
Average |
|
|
|
Average |
Income or |
Yield or |
Average |
Income or |
Yield or |
Assets: |
Balance |
Expense |
Cost |
Balance |
Expense |
Cost |
Interest-earning assets: |
|
|
|
|
|
|
Loans |
$292,410 |
$6,842 |
9.49% |
$251,153 |
$5,461 |
8.82% |
Investment securities |
25,554 |
343 |
5.44% |
27,692 |
320 |
4.69% |
Federal funds sold |
26,149 |
321 |
4.98% |
928 |
11 |
4.81% |
|
|
Total average earning assets |
344,113 |
7,506 |
8.85% |
279,773 |
5,792 |
8.40% |
|
|
|
|
|
|
|
|
|
Non-earning assets: |
|
|
|
|
|
|
Cash and due from banks |
16,107 |
|
|
12,277 |
|
|
Other assets |
22,379 |
|
|
15,086 |
|
|
|
|
Total average assets |
$382,599 |
|
|
$307,136 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders' Equity: |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
|
|
Deposits |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing Demand |
$87,840 |
608 |
2.81% |
$102,033 |
610 |
2.42% |
|
Savings |
5,595 |
14 |
1.01% |
6,534 |
10 |
0.62% |
|
Time Deposits |
179,076 |
2,295 |
5.20% |
97,369 |
865 |
3.60% |
|
Other borrowing |
13,787 |
258 |
7.59% |
16,724 |
235 |
5.70% |
|
|
|
|
|
|
|
|
|
|
|
Total average interest-bearing liabilities |
286,298 |
3,175 |
4.50% |
222,660 |
1,720 |
3.13% |
|
|
|
|
|
|
|
|
|
Noninterest-bearing liabilities: |
|
|
|
|
|
|
|
Demand deposits |
65,347 |
|
|
61,347 |
|
|
|
Other liabilities |
1,488 |
|
|
1,537 |
|
|
|
|
Total liabilities |
353,133 |
|
|
285,544 |
|
|
Shareholders' equity: |
29,466 |
|
|
21,592 |
|
|
Total average liabilities and shareholders' equity |
$382,599 |
|
|
$307,136 |
|
|
|
|
|
|
|
|
|
|
|
Net interest income |
|
$4,331 |
|
|
$4,072 |
|
|
|
|
|
|
|
|
|
|
Yield on interest-earning assets |
|
|
8.85% |
|
|
8.40% |
Cost of funding interest-earning assets |
|
3.75% |
|
|
2.50% |
Net interest margin |
|
|
5.10% |
|
|
5.90% |
|
|
|
|
|
|
|
|
|
|
