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Pacific Commerce Bancorp Reports First Quarter ResultsPacific Commerce Bancorp (OTC Pink: PCBC) (the "Company"), parent company of Pacific Commerce Bank (the "Bank"), today reported results for the first quarter ending March 31, 2018. On February 26, 2018, the Company announced that it entered into a merger agreement with First Choice Bank (OTCQX: FCBP). The transaction is subject to regulatory and shareholder approval and is expected to close in the third quarter of 2018. FINANCIAL HIGHLIGHTS
Net income totaled $1,449,000, or $0.15 per diluted share, for the first quarter, compared to $437,000, or $0.05 per diluted share in the fourth quarter of 2017. Adjusting for a total of $242,000 tax effected merger related expenses incurred in Q1-2018 and the DTA impairment charge of $930,000, caused by the Tax Cuts and Jobs Act, in Q4-2017, core earnings in Q1-2018 equaled $1,691,000, or $0.18 per diluted share, compared to core earnings of $1,367,000, or $0.15 per diluted share in Q4-2017. Average interest earning assets equaled $525.8 million in Q1-2018, while average interest bearing liabilities equaled $233.8 million. This compares to $514.3 million and $231.6 million, in Q4-2017, respectively. Total loans averaged $430.7 million in the most recent quarter, compared to $426.8 million in Q4-2017. Total deposits averaged $478.7 million in Q1-2018, compared to $468.3 million in Q4-2017. Total non-maturity deposits averaged $396.1 million in Q1-2018, compare to $381.5 million in Q4-2017. The ROAA for the first three months of 2018 was 1.07%, compared with 0.32% in Q4-2017. Adjusting for tax effected merger related expenses incurred in Q1-2018 and the DTA impairment charge in Q4-2017, core ROAA was 1.24% and 1.00% respectively. The ROAE for the first three months of 2018 equaled 9.02%, compared with 2.68% in Q4-2017. Adjusting for tax effected merger related expenses incurred in Q1-2018 and the DTA impairment charge in Q4-2017, core ROAE equaled 10.53% and 8.39% respectively. The Company recorded a provision for loan and lease losses of $725,000 in Q1-2018, compared to $200,000 in Q4-2017. The increased provision reflects the payoff of a heavily discounted purchased loan. The discount is reflected in total interest income and was offset with an increase in the loan and lease provision. Excluding $130.7 million in loans carried under purchase accounting rules, which are held at a discount of 0.93% as of March 31, 2018, the allowance for loan and lease losses to total loans held for investment equaled 1.39% of loans outstanding. Shareholders' equity at the Company as of March 31, 2018, equaled $65.6 million. Both the Company and Bank remained "Well-Capitalized" by regulatory definition at March 31, 2018, with capital ratios as follows:
About Pacific Commerce Bancorp Pacific Commerce Bancorp is the parent company for Pacific Commerce Bank. Pacific Commerce Bank operates six full-service branches in Los Angeles and San Diego Counties, including its wholly owned division, ProAmérica Bank, in Downtown Los Angeles. The Bank provides a complete array of deposit, treasury, cash management and loan banking solutions to small businesses, professionals and high net worth individuals from Los Angeles to the Mexico border. As a Preferred SBA Lender, the Bank provides a full complement of lending solutions to small businesses throughout Southern California. Pacific Commerce Bancorp's common stock is publicly traded on the Over the Counter Market under the ticker symbol "PCBC". For more information please visit our website at www.pacificcommercebank.com. Forward-Looking Information The financial information in this press release is based on unaudited financial results. Certain statements in this press release are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements are subject to risks and uncertainties and therefore the Company's actual results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that the Company is subject to include, but are not limited to, risks related to the local and national economy, including fluctuations in interest rates and costs and changes in economic policy; the ability of the Company to perform in accordance with its plans; competition; regulatory matters; demand for loan products; deposit flows; its ability to develop and implement new technologies; and other factors. The Company cautions readers not to place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements. Additional Information about the Merger and Where to Find It This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval. In connection with the proposed transaction, First Choice Bancorp has filed with the Securities and Exchange Commission a registration statement on Form S-4 containing, among other things, a joint proxy statement/prospectus and other documents with respect to the proposed merger of Pacific Commerce Bancorp and First Choice Bancorp. INVESTORS ARE URGED TO READ THE JOINT PROXY STATEMENT/PROSPECTUS (INCLUDING ALL AMENDMENTS AND SUPPLEMENTS THERETO) AND OTHER RELEVANT DOCUMENTS PROVIDED BY FIRST CHOICE BANCORP AND PACIFIC COMMERCE BANCORP IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and shareholders may obtain free copies of the S-4 and the joint proxy statement/prospectus and other relevant documents prepared by First Choice Bancorp and Pacific Commerce Bancorp (if and when they become available) free of charge by contacting First Choice Bancorp or Pacific Commerce Bancorp. Investors and shareholders also may obtain free copies of these documents through the website maintained by the SEC (News - Alert) at www.sec.gov.
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