MIAMI--()--Pacific National Bank today reported net income of $440,000 for the three months ended September 30, 2012, compared with net income of $313,000 for the three months ended September 30, 2011, President and CEO Carlos Fernandez-Guzman announced.
“Our efforts to grow the bank by focusing on credit worthy small to mid size business borrowers while making a concerted effort to work through our problem legacy credits have yielded a marked improvement in the quality of our loan portfolio.”
Year to date new loan originations grew by 159% when compared to the same prior year period resulting in net performing loans growth of $31 million to $139 million for the 12 months ended September 30, 2012, an increase of 29 percent from $108 million on September 30, 2011. Total assets grew by 5.25% and deposits grew by 6 percent over the same period.
“New loan originations continue to grow at a nice pace as a result of our relationship-based business development initiatives,” said Carlos Fernandez-Guzman, President and CEO. “Our efforts to grow the bank by focusing on credit worthy small to mid size business borrowers while making a concerted effort to work through our problem legacy credits have yielded a marked improvement in the quality of our loan portfolio.”
The Bank’s third quarter net income of $440,000 is 40.6% higher than the same prior year period and was primarily due to core operating earnings of $227,000, gains on sale of securities of $35,000, and a reduction of the valuation allowance for deferred tax assets of $340,000. This was partially offset by provision for loan and lease losses associated with the growth in the loan portfolio of $162,000. That compares with net income of $313,000 in the third quarter of 2011, which included core operating earnings of $74,000, gains on sale of investment securities of $239,000, a reduction of the valuation allowance for deferred tax assets of $300,000, and a release of the provision for loan losses of $190,000, partially offset by extraordinary regulatory costs of $490,000.
For the nine months ended September 30, 2012, the Bank posted net income of $201,000 compared with a net loss of ($416,000) for the same period in 2011. The provision for loan losses in 2012 was $371,000 compared to $237,000 in 2011. Core operating earnings for 2012, which exclude extraordinary regulatory costs, provision for loan losses, gains on sale of securities, and taxes, came to a profit of $221,000, compared with core operating losses of $902,000 in 2011.
Pacific’s capital levels and ratios are among the highest in the community bank sector for the State of Florida. Tier 1 capital at September 30, 2012 was 11.37 percent, while total risk-based capital was 22.51 percent. Non-performing assets at the end of the third quarter were $13.2 million or 3.7 percent of total assets.
The allowance for loan losses now stands at 2.01 percent of gross loans. The Bank’s ratio of non-performing assets today stands at 30.28 percent of Tier 1 capital and loan loss reserves.
Pacific National Bank, headquartered at 1390 Brickell Avenue, was established as a national bank in 1985 and has $358 million in assets.