Strong Growth in Core Earnings, Net Income, Loan Originations and Performing Loans Highlight Fourth Quarter and Year-End Result for Pacific National Bank

MIAMI--(BUSINESS WIRE)--Pacific National Bank today reported net income of $797,000 for the three months ended December 31, 2012, compared with a net loss of ($2,941,000) for the three months ended December 31, 2011, President and CEO Carlos Fernandez-Guzman announced.

Year to date new loan originations grew by 48% when compared to the same prior year period resulting in net performing loans growth of $26 million to $148 million for the 12 months ended December 31, 2012, an increase of 21% from $122 million on December 31, 2011.

The Bank’s fourth quarter net income of $797,000 was primarily due to core operating earnings of $557,000, gains on sale of securities of $12,000, and the release of a FIN 48 reserve associated with the settlement of an IRS audit of $1,179,000. This was partially offset by provision for loan and lease losses associated a single impaired loan and the growth in the loan portfolio, collectively $512,000, and change of control expenses of $439,000. That compares with a net loss of ($2,941,000) in the fourth quarter of 2011, which included core operating losses of ($196,000), a FIN 48 reserve of $2,581,000 associated with a prior year tax return, provision for loan and lease losses of $221,000, and extraordinary regulatory costs of $82,000, partially offset by gains on the sale of investment securities of $139,000.

For the twelve months ended December 31, 2012, the Bank posted net income of $998,000 compared with a net loss of ($3,357,000) for the same period in 2011. Core operating earnings for 2012, which exclude extraordinary regulatory and change of control costs of $894,000, provision for loan losses of $884,000, gains on sale of securities of $334,000, and tax recoveries of $1,663,000, came to $779,000. Core operating losses of ($1,098,000) in 2011 exclude extraordinary regulatory costs of $572,000, provision for loan losses of $458,000, gains on sale of securities of $842,000, and tax provision of $2,071,000.

Pacific’s capital levels and ratios are among the highest in the community bank sector for the State of Florida. Tier 1 capital at December 31, 2012 was 11.67%, while total risk-based capital was 21.71%. Non-performing assets at the end of the fourth quarter were $13.8 million or 3.9% of total assets.

The allowance for loan losses now stands at 2.39 percent of gross loans. The Bank’s ratio of non-performing assets today stands at 30.59 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 $355 million in assets.