First PacTrust Bancorp, Inc. Announces 3rd Quarter 2012 Results

First PacTrust Bancorp, Inc. Announces 3 rd Quarter 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

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