Presidio Bank Reports Results for Second Quarter 2015

SAN FRANCISCO--()--Presidio Bank (OTCBB: PDOB), a Bay Area business bank, today reported unaudited results for the second quarter ended June 30, 2015 with net income for the quarter of $696 thousand, an increase of $213 thousand from the quarter ended March 31, 2015. In addition, Total Deposits, Total Loans and Total Assets all ended the quarter at record high levels.

“All five of our Banking Offices made strong contributions towards making the quarter a success.”

“We are pleased to report a solid growth quarter,” said Presidio Bank President and CEO Steve Heitel. “All five of our Banking Offices made strong contributions towards making the quarter a success.”

Financial Highlights

  • Total Loans outstanding were up $30 million, 7% from the quarter ended March 31, 2015, and increased $37 million or 9% over the second quarter of 2014. Loans outstanding now total a record high of $446 million. Despite significant loan fundings during the quarter, the loan pipeline remains strong.
  • Total Deposits increased by $33 million or 7% from the quarter ended March 31, 2015 and increased by $107 million, 26% over the second quarter of 2014. Non-Interest Bearing Demand Deposits were up 17% for the quarter and up 44% from the same quarter in 2014 and now account for 37% of Total Deposits.
  • Net Interest Income of $4.7 million in the second quarter was up 3.3% over the first quarter of 2015 and 2.1% over the quarter ended June 30, 2014. The second quarter of 2015 included $70 thousand in interest expense on subordinated debt that was not incurred in the second quarter of 2014.
  • Operating Expenses decreased 5.2% from the quarter ended March 31, 2015 as seasonal declines in compensation and benefits expense more than offset an increase in professional fees driven by one-time recruitment expenses and seasonally high legal expenses associated with the Bank’s annual meeting and proxy statement. Operating Expenses were up 12% from the quarter ended June 30, 2014 primarily due to increased personnel and rent expense associated with the Bank’s San Mateo Office which opened in November 2014.
  • Net Income applicable to Common Shareholders was $541 thousand for the quarter, an increase of $180 thousand, 50% over the first quarter 2015; however this is down $200 thousand from the second quarter of 2014 due to interest on subordinated debt that originated late in the third quarter of 2014, increased expenses associated with the San Mateo office, and increased Dividends on the Bank’s Perpetual Preferred Stock, which increased from 5% to 9% on February 15, 2015.
  • Credit quality remains strong with a classified Loan to Capital Ratio less than 5%. Non-performing Loans totaled $1.2 million at June 30, 2015 or 0.3% of total loans. The Allowance for Loan Losses of $5.2 million covers Non-Performing Loans by more than four times.
  • Diluted Earnings per Common Share were $0.12 for the quarter compared to $0.08 in the first quarter of 2015 and $0.17 in the second quarter of 2014.
  • Book Value per Share increased to $10.27 per share as of June 30 2015 from $9.83 per share at March 31, 2015 and $9.31 per share at June 30, 2014. This increase was primarily due to the Bank’s recently completed one million share Common Stock Rights Offering which was oversubscribed at $12.00 per share.

“I am pleased by the strong show of shareholder support for the Bank with our Common Stock Rights Offering being 60% oversubscribed,” said Presidio Bank Chairman and Founder, Jim Woolwine. “We are putting that new capital to work by continuing to grow the Bank.”

 
Presidio Bank
(dollars in thousands, except per share amounts, unaudited)
               
Condensed Balance Sheet
                       
6/30/2015   3/31/2015   Change   6/30/2014   Change 12/31/2014   Change
 
Cash and due from banks 501 7,094 -92.9 % 2,517 -80.1 % 5,621 -91.1 %
Interest bearing due from banks   126,275       102,700     23.0 %     56,366     124.0 %   104,642     20.7 %
Total cash and equivalents 126,776 109,794 15.5 % 58,883 115.3 % 110,263 15.0 %
Investment securities 14,191 14,235 -0.3 % 14,492 -2.1 % 14,392 -1.4 %
Loans, net of fees 446,068 416,492 7.1 % 408,752 9.1 % 415,741 7.3 %
Allowance for loan losses   (5,172 )     (5,172 )   0.0 %     (4,952 )   4.4 %   (5,172 )   0.0 %
Net loans 440,896 411,320 7.2 % 403,800 9.2 % 410,569 7.4 %
Premises and equipment, net 1,381 1,433 -3.6 % 1,032 33.8 % 1,477 -6.5 %
Other assets and interest receivable   11,064       11,754     -5.9 %     5,386     105.4 %   6,052     82.8 %
Total assets 594,308 548,536 8.3 % 483,593 22.9 % 542,753 9.5 %
 
Non-interest-bearing demand 190,129 162,424 17.1 % 132,538 43.5 % 164,353 15.7 %
Interest bearing transaction 67,403 80,246 -16.0 % 61,222 10.1 % 69,646 -3.2 %
Money market and savings accounts 207,446 188,849 9.8 % 169,909 22.1 % 196,050 5.8 %
Time deposits   51,046       51,029     0.0 %     45,736     11.6 %   51,643     -1.2 %
Total deposits 516,024 482,548 6.9 % 409,405 26.0 % 481,692 7.1 %
Borrowings 10,284 10,326 -0.4 % 26,147 -60.7 % 10,360 -0.7 %
Other liabilities   7,079       7,190     -1.5 %     2,095     237.9 %   2,884     145.5 %
Total liabilities 533,387 500,064 6.7 % 437,647 21.9 % 494,936 7.8 %
 
Preferred stock 6,869 6,869 0.0 % 6,844 0.4 % 6,869 0.0 %
Common stock 56,375 44,466 26.8 % 43,798 28.7 % 44,207 27.5 %
Retained earnings (2,264 ) (2,806 ) 19.3 % (4,588 ) 50.7 % (3,167 ) 28.5 %
Other comprehensive income   (59 )     (57 )   -3.5 %     (108 )   45.4 %   (92 )   35.9 %
Total shareholder’s equity   60,921       48,472     25.7 %     45,946     32.6 %   47,817     27.4 %
Total liabilities and equity 594,308 548,536 8.3 % 483,593 22.9 % 542,753 9.5 %
 
Book value per share
Book value per share $ 10.27 $ 9.83 $ 9.31 $ 9.74
Total shares outstanding EOP 5,261 4,231 4,199 4,203
 
Capital Ratios
Tier 1 leverage ratio 10.6 % 9.3 % 9.6 % 8.8 %
Tier 1 risk-based capital ratio 11.7 % 10.0 % 10.0 % 10.0 %
Total risk-based capital ratio 14.7 % 13.2 % 11.2 % 13.3 %
Tangible common risk-based ratio 10.4 % 8.6 % 8.5 % 8.5 %
 
                 
Condensed Statement of Income
For the three months ended For the six months ended
6/30/2015   3/31/2015  

Change
Fav./
(Unfav.)

  6/30/2014  

Change
Fav./
(Unfav.)

6/30/2015   6/30/2014  

Change
Fav./
(Unfav.)

 
Interest income 5,171 4,995 3.5 % 4,841 6.8 % 10,167 9,414 8.0 %
Interest expense   428       404     (5.9 %)     195     (119.5 %)   833       389     (114.1 %)
Net interest income 4,743 4,591 3.3 % 4,646 2.1 % 9,334 9,025 3.4 %
Provision for loan loss   -       -     NM       81     NM     -       81     NM  
Net interest income after provision 4,743 4,591 3.3 % 4,565 3.9 % 9,334 8,944 4.4 %
 
Other income 183 169 8.3 % 182 0.5 % 352 352 0.0 %
 
Compensation and benefit expenses 2,301 2,595 11.3 % 2,064 (11.5 %) 4,896 4,251 (15.2 %)
Occupancy and equipment expenses 432 446 3.1 % 373 (15.8 %) 878 746 (17.7 %)
Data processing 277 287 3.5 % 261 (6.1 %) 564 517 (9.1 %)
Professional and legal 191 110 (73.6 %) 118 (61.9 %) 301 213 (41.3 %)
Other operating expenses   542       511     (6.1 %)     525     (3.2 %)   1,053       989     (6.5 %)
Total operating expenses   3,743       3,949     5.2 %     3,341     (12.0 %)   7,692       6,716     (14.5 %)
Net income before taxes 1,183 811 45.9 % 1,406 (15.9 %) 1,994 2,580 (22.7 %)
Income taxes   487       328     (48.5 %)     576     15.5 %   815       1,058     23.0 %
Net income 696 483 44.1 % 830 (16.1 %) 1,179 1,522 (22.5 %)
Preferred dividends   155       122     (27.0 %)     89     (74.2 %)   276       178     (55.1 %)
Net income to common 541 361 49.9 % 741 (27.0 %) 903 1,344 (32.8 %)
 
Earnings Per Share
Basic earnings per share $ 0.13 $ 0.09 $ 0.17 $ 0.21 $ 0.31
Diluted earnings per share $ 0.12 $ 0.08 $ 0.17 $ 0.20 $ 0.30
Average shares outstanding 4,315 4,221 4,187 4,268 4,179
Average diluted shares 4,546 4,462 4,373 4,504 4,332
 
Performance Ratios
Return on average assets 0.48 % 0.38 % 0.69 % 0.43 % 0.66 %
Return on average common equity 5.00 % 3.52 % 7.64 % 4.28 % 7.03 %
Net interest margin 3.40 % 3.65 % 3.95 % 3.51 % 3.97 %
Cost of funds 0.32 % 0.34 % 0.18 % 0.33 % 0.19 %
Efficiency ratio 76.1 % 83.0 % 69.2 % 79.5 % 71.6 %
 
Average Balances
Total assets 576,058 519,565 479,221 547,966 465,317
Earning assets 561,247 509,764 471,872 535,648 458,230
Total loans 424,455 413,932 399,895 419,222 391,074
Total deposits 508,336 458,016 419,923 483,315 408,006
Common equity 43,205 41,603 38,925 42,406 38,530
 
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.

Contacts

Presidio Bank
Steve Heitel, 415-229-8428
President & CEO
or
Ed Murphy, 415-229-8403
EVP/CFO
or
MEDIA
Annette Gelinas, 415-229-8415 (o) / 925-787-2956 (c)
SVP/Marketing Director
agelinas@presidiobank.com

Recent Stories

RSS feed for Presidio Bank

Presidio Bank