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First Pacific Bancorp Reports Third Quarter 2024 Results

WHITTIER, Calif., Nov. 04, 2024 (GLOBE NEWSWIRE) — First Pacific Bancorp (the “Company”) (OTC Pink: FPBC), the holding company for First Pacific Bank (the “Bank”), today reported consolidated results for the third quarter ending September 30, 2024, underscored by the sixth consecutive quarter of profitability.

Highlights for the third quarter of 2024 include:

  • Total assets ended Q3 2024 at $434 million, up $14 million from $420 million at year end 2023.
  • Total deposits ended the third quarter of 2024 at $342 million, up $9 million since year end 2023.
  • Total loans ended the third quarter of 2024 at $268 million, down $7 million from year end 2023.
  • Asset quality remains excellent with minimal levels of classified or non-performing assets.
  • The Bank ended the third quarter with a strong capital position, with a leverage capital ratio of 8.8% and a total risk-based capital ratio of 12.8%.
  • As of September 30, 2024, cash and cash equivalents totaled $49 million, including funds invested overnight, up $27 million since year end 2023.
  • Unused borrowing capacity from credit facilities in place on September 30, 2024, totaled $143 million.

For the third quarter ending September 30, 2024, the Company realized a pre-tax, pre-provision profit of $345 thousand, compared to a pre-tax, pre-provision profit of $272 thousand in Q2 2024. Net income for the third quarter of 2024 was $249 thousand, up from $198 thousand in Q2 2024. For the nine months ending September 30, 2024, the Company reported $608 thousand in net income, up from a net loss of $219 thousand reported for the nine months ending September 30, 2023.     

Asset quality remains excellent with minimal non-performing assets and the allowance for credit losses is 1.16% of total loans.  

“We are encouraged by our results, as evidenced by six consecutive quarters of profitability,” said Joe Matranga, Chairman of the Board of Directors. “We continue to maintain a solid capital, liquidity, and financial standing and are well-positioned to execute our strategy and deliver sustainable, long-term value for our stakeholders.”

“Our third-quarter results reflect a strong and consistent period of profitability, driven by increased core deposit growth, stable credit quality, and a disciplined approach to expense management,” said Nathan Rogge, President and Chief Executive Officer. “We are pleased with our performance and continue to look for opportunities to expand our customer base through strategic investments in technology and innovation that aim to enhance the customer experience.”

ABOUT FIRST PACIFIC BANK

First Pacific Bank is a wholly owned subsidiary of First Pacific Bancorp (OTC Pink: FPBC) and is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. Since opening in 2006, the Bank has offered a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. First Pacific Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit firstpacbank.com or call 888.BNK.AT.FPB.

FORWARD-LOOKING STATEMENTS

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and First Pacific Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements relate to, among other things, our business plan, and strategies, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause such differences include, but are not limited to: successfully realizing the benefits of our business strategy and plans,; changes in general economic and financial market conditions, either nationally or locally, in areas in which First Pacific Bank conducts its operations; effects of inflation and changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; impact of any natural disasters, including earthquakes; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect First Pacific Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.  

Contacts

Investor Relations Contact Media Relations Contact
Jim Burgess Amanda Conover
858.461.7302 562.501.9062
jburgess@firstpacbank.com aconover@firstpacbank.com

— Summary Financial Tables Follow —

First Pacific Bancorp          
Consolidated Balance Sheets          
(Unaudited)          
  Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
ASSETS          
Cash and due from banks $ 23,584,084   $ 4,671,483   $ 7,317,500   $ 4,308,149   $ 4,240,871  
Fed funds sold & int-bearing balances   25,520,000     37,860,000     37,575,000     18,060,000     20,410,000  
Total cash and cash equivalents   49,104,084     42,531,483     44,892,500     22,368,149     24,650,871  
           
Debt securities (AFS)   3,041,852     3,077,666     5,138,340     5,257,049     5,266,653  
Debt securities (HTM)   101,260,391     102,202,926     103,474,749     104,343,133     105,447,814  
Total debt securities   104,302,243     105,280,592     108,613,089     109,600,182     110,714,467  
           
Construction & land development   23,067,204     24,651,513     25,480,398     27,070,749     24,721,763  
1-4 Family residential   58,082,570     68,588,393     68,521,663     66,567,165     64,925,441  
Multifamily residential   28,966,811     26,800,829     26,947,419     27,128,177     28,484,194  
Nonfarm, nonresidential real estate   99,715,860     94,643,169     97,893,840     99,627,812     99,859,450  
Commercial & industrial   57,342,017     53,504,969     54,785,564     53,938,659     55,374,111  
Consumer & Other   780,639     1,831,036     1,123,918     865,849     569,736  
Total loans   267,955,101     270,019,909     274,752,802     275,198,411     273,934,695  
Allowance for loan losses   (3,109,975 )   (3,109,975 )   (3,109,975 )   (3,109,975 )   (2,974,427 )
Total loans, net   264,845,126     266,909,934     271,642,827     272,088,436     270,960,268  
           
Premises, equipment, and ROU net   1,452,886     1,714,833     1,992,588     2,268,671     1,850,187  
Goodwill, core deposit & other intangibles   1,287,129     1,298,084     1,313,367     1,328,651     1,343,934  
Bank owned life insurance   5,257,550     5,227,763     5,198,654     5,170,521     5,142,322  
Accrued interest and other assets   7,505,380     7,476,554     7,415,609     7,392,301     7,616,948  
           
Total Assets $ 433,754,398   $ 430,439,243   $ 441,068,634   $ 420,216,911   $ 422,278,997  
           
LIABILITIES AND SHAREHOLDERS’ EQUITY          
Deposits:          
Noninterest-bearing demand $ 129,473,091   $ 144,240,187   $ 133,945,262   $ 121,348,095   $ 130,982,957  
Interest-bearing transaction accounts   24,660,000     24,797,108     28,166,207     34,716,150     47,304,776  
Money market and savings   143,270,628     143,497,864     148,732,230     139,011,862     131,505,430  
Time deposits   44,388,137     41,060,590     38,662,227     38,235,413     22,504,646  
Total deposits   341,791,856     353,595,749     349,505,926     333,311,520     332,297,809  
           
Borrowings   50,000,000     35,000,000     50,000,000     45,000,000     50,000,000  
Accrued interest and other liabilities   3,430,132     3,781,444     3,936,909     4,530,208     2,934,831  
Total liabilities   395,221,988     392,377,193     403,442,835     382,841,728     385,232,640  
           
Shareholders’ Equity:          
Capital stock and APIC   37,117,627     36,970,386     36,788,606     36,699,786     36,508,987  
Retained earnings   2,151,305     1,902,788     1,705,174     1,543,264     1,487,800  
Accum other comprehensive income   (736,522 )   (811,124 )   (867,981 )   (867,867 )   (950,430 )
Total shareholders’ equity   38,532,410     38,062,050     37,625,799     37,375,183     37,046,357  
           
Total Liabilities and Shareholders’ Equity $ 433,754,398   $ 430,439,243   $ 441,068,634   $ 420,216,911   $ 422,278,997  
           

First Pacific Bancorp          
Consolidated Income Statements – Quarterly          
(Unaudited)          
           
  Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023
INTEREST INCOME          
Loans, including fees $4,817,174 $4,655,844 $4,700,535 $4,653,303   $4,458,616  
Debt securities 499,268 514,613 543,857 544,330   585,047  
Fed funds & int-bearing balances 450,166 573,022 410,685 258,178   271,266  
Total interest income 5,766,608 5,743,479 5,655,077 5,455,811   5,314,929  
           
INTEREST EXPENSE          
Deposits 1,790,578 1,687,121 1,746,032 1,542,541   1,408,092  
Borrowings 444,250 524,599 507,390 705,324   567,115  
Total interest expense 2,234,828 2,211,720 2,253,422 2,247,865   1,975,207  
           
Net interest income 3,531,780 3,531,759 3,401,655 3,207,946   3,339,722  
           
Provision for credit losses 101,538   191,428  
           
Net interest income after provision 3,531,780 3,531,759 3,401,655 3,106,408   3,148,294  
           
NONINTEREST INCOME          
Service charges, fees and other income 106,628 96,460 108,365 108,769   122,367  
Sublease income 53,975 52,970 53,872 53,872   53,384  
Gains (losses) on sale of assets 15,335 (12,982 ) 101,844  
Gains on early payoff of debt 144,325   123,077  
Total noninterest income 175,938 293,755 162,237 149,659   400,672  
           
NONINTEREST EXPENSE          
Salaries and benefits 2,154,290 2,182,674 2,178,486 1,954,029   2,311,113  
Occupancy and equipment 374,069 363,695 368,816 384,088   377,795  
Other expense 834,281 1,007,247 794,158 894,440   823,677  
Total noninterest expense 3,362,640 3,553,616 3,341,460 3,232,557   3,512,585  
           
Income before income tax expense 345,078 271,898 222,432 23,510   36,381  
           
Income tax expense (benefit) 96,563 74,281 60,524 (31,955 ) (15,550 )
           
Net Income (Loss) $248,515 $197,617 $161,908 $55,465   $51,931  
           
Earnings per share basic (QTR) $0.06 $0.05 $0.04 $0.01   $0.01  
Weighted average shares outstanding (QTR) 4,288,851 4,283,351 4,281,653 4,231,841   4,174,529  
           

First Pacific Bancorp    
Consolidated Income Statements – Year-to-Date    
(Unaudited)    
     
  Sep 30, 2024 Sep 30, 2023
INTEREST INCOME    
Loans, including fees $14,173,553 $12,051,909  
Investment securities 1,557,738 1,735,019  
Fed funds & int-bearing balances 1,433,873 742,649  
Total interest income 17,165,164 14,529,577  
     
INTEREST EXPENSE    
Deposits 5,223,731 3,201,945  
Borrowings 1,476,239 1,735,403  
Total interest expense 6,699,970 4,937,348  
     
Net interest income 10,465,194 9,592,229  
     
Provision for credit losses 804,428  
     
Net interest income after provision 10,465,194 8,787,801  
     
NONINTEREST INCOME    
Service charges, fees and other income 311,453 347,054  
Sublease income 160,817 158,202  
Gains (losses) on sale of assets 15,335 142,075  
Gains on early payoff of debt 144,325 123,077  
Total noninterest income 631,930 770,408  
     
NON INTEREST EXPENSE    
Salaries and benefits 6,515,450 6,604,574  
Occupancy and equipment 1,106,580 1,086,189  
Other expense 2,635,686 2,230,137  
Total noninterest expense 10,257,716 9,920,900  
     
Income before income tax expense 839,408 (362,691 )
     
Income tax expense (benefit) 231,368 (143,307 )
     
Net Income (loss) $608,040 ($219,384 )
     
Earnings (loss) per share basic (YTD) $0.14 ($0.06 )
Weighted average shares outstanding (YTD) 4,284,634 3,912,161  

First Pacific Bancorp            
Quarterly Financial Highlights            
(Unaudited)            
    Quarterly
    2024 2024 2024 2023 2023
($$ in thousands except per share data)   3rd Qtr 2nd Qtr 1st Qtr 4th Qtr 3rd Qtr
EARNINGS            
Net interest income $ 3,532   3,532   3,402   3,208   3,340  
Provision for loan losses $ 0   0   0   102   191  
Noninterest income $ 176   294   162   150   401  
Noninterest expense $ 3,363   3,554   3,341   3,233   3,513  
Income tax expense $ 97   74   61   (32 ) (16 )
Net income $ 249   198   162   55   52  
             
Basic earnings per share $ 0.06   0.05   0.04   0.01   0.01  
Weighted average shares outstanding   4,288,851   4,283,351   4,281,653   4,231,841   4,174,529  
Ending shares outstanding   4,291,927   4,283,351   4,283,351   4,231,841   4,231,841  
             
PERFORMANCE RATIOS            
Return on average assets   0.23 % 0.18 % 0.15 % 0.05 % 0.05 %
Return on average common equity   2.58 % 2.10 % 1.73 % 0.59 % 0.56 %
Yield on loans   6.98 % 6.97 % 6.84 % 6.69 % 6.60 %
Yield on earning assets   5.58 % 5.52 % 5.49 % 5.35 % 5.26 %
Cost of deposits   2.05 % 1.96 % 2.05 % 1.89 % 1.70 %
Cost of funding   2.32 % 2.28 % 2.35 % 2.37 % 2.09 %
Net interest margin   3.42 % 3.40 % 3.31 % 3.15 % 3.30 %
Efficiency ratio   90.7 % 92.9 % 93.8 % 96.3 % 93.9 %
             
CAPITAL            
Tangible equity to tangible assets   8.61 % 8.57 % 8.26 % 8.61 % 8.48 %
Book value (BV) per common share $ 8.98   8.89   8.78   8.83   8.75  
Tangible BV per common share $ 8.68   8.58   8.48   8.52   8.44  
             
ASSET QUALITY            
Net loan charge-offs (recoveries) $ 0   0   0   0   0  
Allowance for loan losses (ALLL) $ 3,110   3,110   3,110   3,110   2,974  
ALLL to total loans   1.16 % 1.15 % 1.13 % 1.13 % 1.09 %
Nonperforming loans $ 991   77   160   61   0  
             
END OF PERIOD BALANCES            
Total loans $ 267,955   270,020   274,753   275,198   273,935  
Total assets $ 433,754   430,439   441,069   420,217   422,279  
Deposits $ 341,792   353,596   349,506   333,312   332,298  
Loans to deposits   78.4 % 76.4 % 78.6 % 82.6 % 82.4 %
Shareholders’ equity $ 38,532   38,062   37,626   37,375   37,046  
Full-time equivalent employees   44   44   46   45   44  
             
AVERAGE BALANCES (QTRLY)            
Total loans $ 273,960   267,766   275,578   276,016   268,186  
Earning assets $ 410,298   416,965   412,791   404,210   400,993  
Total assets $ 424,199   430,830   426,592   417,595   414,457  
Deposits $ 346,142   346,032   341,226   323,300   329,121  
Shareholders’ equity $ 38,267   37,788   37,443   37,179   36,469  

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