Loans, Deposits and Total Assets end year at
record levels
Presidio Bank (OTCBB:PDOB), a Bay Area business bank, today
reported unaudited results for the fourth quarter and full year
ended December 31, 2014 with net income for the year of $3.1
million, up 29% from 2013. The fourth quarter was highlighted by
$31 million in core deposit growth and $14 million in loan growth
resulting in record levels in both categories. Total assets
increased $32 million for the quarter and just under $100 million
for the year.
“2014 was another solid year for the Bank,” said Presidio Bank
President and CEO Steve Heitel. “The Bank continued to grow loans,
deposits, net income and new relationships while successfully
executing a shareholder-friendly capital raise and launching our
fifth office.”
Financial Highlights
- Total Loans outstanding increased by
$14 million or 3.6% over the quarter ended September 30, 2014 and
increased $42 million or 11.3% for the full year.
- Total Deposits increased by $31 million
or 6.9% from the quarter ended September 30, 2014 and increased by
$85 million or 21% for 2014. A number of Bank depositors are
holding balances that are temporarily inflated. We had anticipated
that some of these balances would run-off in the fourth quarter of
2014. Instead these temporary balances increased during the
quarter. We now expect these balances to decline to more normal
levels in the first quarter of 2015.
- Net interest income of $4.9 million in
the fourth quarter was up 3% over the third quarter of 2014. This
increase resulted from loan growth and the recognition of interest
income on a classified loan which paid off during the quarter which
more than offset $210 thousand in interest expense incurred during
the quarter on the Bank’s newly issued subordinated notes. Net
Interest Income was up 17% for the year.
- Operating Expenses increased 6% from
the third quarter primarily due to a full quarter’s lease expense
on our new San Mateo Office, and higher professional fees due to
recruitment expense for our new East Bay Market President.
Operating Expenses were up 11% for the year.
- Net Income was $3.1 million, up 29% in
2014. Net income applicable to common shareholders was $2.8 million
for the year, an increase of 47.6% over 2013 as dividends on
preferred stock declined; a result of the partial repurchase of
preferred shares executed in 2013.
- Credit quality remains strong with a
classified loan to capital ratio of less than 5%. The Bank added
$220 thousand to the Allowance For Loan Losses during the fourth
quarter due to growth in the loan portfolio. No loan loss provision
was recorded in 2013 or the third quarter of 2014. The Bank’s
largest classified loan paid off in full during the quarter.
Non-performing loans totaled $1.3 million at December 31, 2014 or
0.3% of total loans. The Allowance for Loan Losses of $5.2 million
covers non-performing loans by almost four times.
- Diluted earnings per common share were
$0.14 for the quarter compared to $0.18 in the third quarter of
2014 and $0.19 in the fourth quarter of 2013. EPS for the fourth
quarter of 2013 included a $152,000 gain on the retirement of
preferred stock.
- Book value per share increased to $9.74
per share as of December 31, 2014 from $9.53 per share at September
30, 2014 and $8.99 per share at December 31, 2013.
“The Bank continued to successfully execute its organic growth
strategy in 2014,” said Presidio Bank Chairman and Founder, Jim
Woolwine. “The addition of new capital, improvement in our already
strong credit quality and successful opening of our San Mateo
Office positions the Bank well for continued growth in 2015.”
4th Quarter 2014 Financial
Results(Dollars in thousands, except per share amounts,
unaudited)
Condensed Balance Sheet
For the period
ended
12/31/2014 9/30/2014
Change 12/31/2013 Change
Cash and due from banks 5,621 7,972 -29.5 %
5,694 -1.3 % Interest bearing due from banks 104,642
84,612 23.7 % 49,545
111.2 % Total cash and equivalents 110,263 92,584
19.1 % 55,239 99.6 % Investment securities 14,392 14,419 -0.2 %
14,230 1.1 % Loans, net of fees 415,741 401,421 3.6 % 373,421 11.3
% Allowance for loan losses (5,172 ) (4,952 )
4.4 % (4,867 ) 6.3 % Net loans 410,569
396,469 3.6 % 368,554 11.4 % Premises and equipment, net 1,477
1,090 35.5 % 932 58.5 % Other assets and interest receivable
6,052 5,773 4.8 %
4,863 24.4 % Total assets 542,753 510,335 6.4 %
443,818 22.3 % Non-interest-bearing demand 164,353 167,411
-1.8 % 132,546 24.0 % Interest bearing transaction 69,646 63,260
10.1 % 71,760 -2.9 % Money market and savings accounts 196,050
166,866 17.5 % 153,180 28.0 % Time deposits 51,643
52,967 -2.5 % 39,672
30.2 % Total deposits 481,692 450,504 6.9 % 397,158
21.3 % Borrowings 10,360 10,048 3.1 % - Other liabilities
2,884 2,913 -1.0 %
2,376 21.4 % Total liabilities 494,936 463,465 6.8 %
399,534 23.9 % Preferred stock 6,869 6,860 0.1 % 6,811 0.9 %
Common stock 44,207 43,949 0.6 % 43,540 1.5 % Retained earnings
(3,167 ) (3,797 ) 16.6 % (5,898 ) 46.3 % Other comprehensive income
(92 ) (142 ) 35.2 % (169
) Total shareholder’s equity 47,817
46,870 2.0 % 44,284
8.0 % Total liabilities and equity 542,753 510,335
6.4 % 443,818 22.3 %
Book value per share
Book value per share $ 9.74 $ 9.53 $ 8.99 Total shares outstanding
EOP 4,203 4,199 4,170
Capital Ratios
Tier 1 leverage ratio 8.8 % 9.7 % 9.9 % Tier 1 risk-based capital
ratio 10.0 % 10.1 % 10.3 % Total risk-based capital ratio 13.3 %
13.5 % 11.6 % Tangible common risk-based ratio 8.5 % 8.6 % 8.8 %
Condensed Statement of Income
For the three months ended
For the twelve months ended Change
Change Change
Fav./ Fav./ Fav./ 12/31/2014
9/30/2014 (Unfav.)
12/31/2013 (Unfav.)
12/31/2014 12/31/2013
(Unfav.) Interest income 5,342 4,963
7.6 % 4,388 21.7 % 19,719 16,753 17.7 % Interest expense 424
197 (115.2 %) 200
(112.0 %) 1,010 807
(25.2 %) Net interest income 4,918 4,766 3.2 % 4,188
17.4 % 18,709 15,946 17.3 % Provision for loan loss 220
- NM -
NM 301 -
NM Net interest income after provision 4,698 4,766
(1.4 %) 4,188 12.2 % 18,408 15,946 15.4 % Other income 167 182 (8.2
%) 151 10.6 % 701 571 22.8 % Compensation and benefit expenses
2,134 2,165 1.4 % 1,887 (13.1 %) 8,550 7,349 (16.3 %) Occupancy and
equipment expenses 447 393 (13.7 %) 382 (17.0 %) 1,586 1,535 (3.3
%) Data processing 286 261 (9.6 %) 258 (10.9 %) 1,064 1,006 (5.8 %)
Professional and legal 123 88 (39.8 %) 107 (15.0 %) 429 556 22.8 %
Other operating expenses 618 498
(24.1 %) 452 (36.7 %)
2,100 1,941 (8.2 %) Total
operating expenses 3,608 3,405
(6.0 %) 3,086 (16.9 %)
13,729 12,387 (10.8 %) Net
income before taxes 1,257 1,543 (18.5 %) 1,253 0.3 % 5,380 4,130
30.3 % Income taxes 528 648
18.5 % 514 (2.7 %) 2,234
1,693 (32.0 %) Net income 729
895 (18.5 %) 739 1.4 % 3,146 2,437 29.1 % Preferred dividends
89 89 0.0 %
117 23.9 % 356 547
34.9 % Net income to common 640
806 (20.6 %) 622 2.9 %
2,790 1,890 47.6 %
Basic earnings per share $ 0.15 $ 0.19 $ 0.19 $ 0.65 $ 0.49 Diluted
earnings per share $ 0.14 $ 0.18 $ 0.19 $ 0.62 $ 0.48 Average
shares outstanding 4,194 4,187 4,137 4,178 4,119 Average diluted
shares 4,412 4,390 4,208 4,365 4,156
Performance
Ratios Return on average assets 0.53 % 0.73 % 0.66 % 0.64 %
0.58 % Return on average common equity 6.20 % 8.02 % 6.63 % 7.07 %
5.22 % Net interest margin 3.67 % 3.96 % 3.80 % 3.88 % 3.86 % Cost
of funds 0.33 % 0.18 % 0.20 % 0.23 % 0.22 % Efficiency ratio 71.0 %
68.8 % 71.1 % 70.7 % 75.0 %
Average Balances Total
assets 543,885 484,699 444,672 490,032 419,865 Earning assets
535,387 476,849 437,002 482,371 412,817 Total loans 403,479 403,372
356,992 397,300 335,535 Total deposits 482,904 426,552 395,489
431,559 370,914 Common equity 40,943 39,892 37,239 39,482 36,174
NM = Not Meaningful
About Presidio Bank
Presidio Bank provides business banking services to small and
mid-size businesses, including professional service firms, real
estate developers and investors, and not-for-profit organizations,
and to their owners who desire personalized, responsive service
with access to local decision makers. Presidio Bank offers clients
the resources of a large bank combined with the personalized
services of a neighborhood bank. Presidio Bank is headquartered in
San Francisco, California and currently operates five banking
offices in San Francisco, Walnut Creek, San Rafael, San Mateo and
Palo Alto. More information is available at www.presidiobank.com.
Presidio Bank is a member of FDIC and an Equal Housing Lender.
This press release contains certain forward-looking statements
that involve risk and uncertainties. These statements are
identifiable by use of the words “believe,” “expect,” “intend,”
“anticipate,” “plan,” “estimate,” “project,” or similar
expressions. The risks and uncertainties that may affect the
operations, performance, development, growth projections and
results of Presidio Bank’s business include, but are not limited
to, the growth of the economy, interest rate movements, timely
development by Presidio Bank of technology enhancements for its
products and operating systems, the impact of competitive products,
services and pricing, client-based requirements, Congressional
legislation, changes in regulatory or generally accepted accounting
principles and similar matters. Readers are cautioned not to place
undue reliance on forward-looking statements which are subject to
influence by the named risk factors and unanticipated future
events. Actual results, accordingly, may differ materially from
management expectations.
Presidio BankSteve Heitel, 415-229-8428President & CEOEd
Murphy, 415-229-8403EVP/CFOorMEDIA:Annette Gelinas,
415-229-8415 (office) / 925-787-2956 (mobile)SVP/Marketing
Directoragelinas@presidiobank.com