Pacific City Financial Corporation Reports Earnings of $6.6 million for Q1 2019 and Increased Cash Dividend

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    LOS ANGELES–(BUSINESS WIRE)–Pacific City Financial Corporation (the “Company”) (NASDAQ: PCB), the
    holding company of Pacific City Bank (the “Bank”), today reported net
    income of $6.6 million, or $0.40 per diluted common share for the first
    quarter of 2019, compared with $6.7 million, or $0.41 per diluted common
    share, in the previous quarter and $6.3 million, or $0.46 per diluted
    common share, in the year-ago quarter.

    Q1 2019 Financial Highlights

    • Net income totaled $6.6 million or $0.40 per diluted common share;
    • Total assets were $1.72 billion at March 31, 2019, an increase of
      $20.7 million, or 1.2%, from $1.70 billion at December 31, 2018 and an
      increase of $138.8 million, or 8.8%, from $1.58 billion at March 31,
      2018;
    • Loans held-for-investment, net of deferred costs (fees), were $1.34
      billion at March 31, 2019, an increase of $4.5 million, or 0.3%, from
      $1.34 billion at December 31, 2018 and an increase of $119.9 million,
      or 9.8%, from $1.22 billion at March 31, 2018;
    • Total deposits were $1.45 billion at March 31, 2019, an increase of
      $4.0 million, or 0.3%, from $1.44 billion at December 31, 2018, and an
      increase of $65.8 million, or 4.8%, from $1.38 billion at March 31,
      2018;
    • The board of directors approved a $6.5 million share repurchase
      program to begin in the second quarter of 2019; and
    • Reflecting the Company’s continued earnings performance in the first
      quarter of 2019, the Company declared an increased cash dividend of
      $0.06 per common share for shareholders of record on May 31, 2019, and
      payable on June 14, 2019.

    “I am pleased with another strong financial performance for the quarter
    that is highlighted by earnings of $6.6 million, or $0.40 per diluted
    common share. I am also pleased with board’s declaration of quarterly
    cash dividend of $0.06 per common share, or an increase of 20% from
    first quarter cash dividend of $0.05, that will be paid in June,” stated
    Henry Kim, President and Chief Executive Officer. “Although our loan and
    deposit growth moderated during the quarter, we maintained net interest
    margin of 4.22% and efficiency ratio of 52.60%. Since the tail end of
    the first quarter, we are experiencing an increase in loan demand and
    stabilization in deposit costs, which lead us to be optimistic on our
    ability to deliver a continued strong financial performance for the
    remainder of 2019.”

    Financial Highlights (Unaudited)

          Three Months Ended
    ($ in thousands, except per share data) 3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Net income $ 6,564 $ 6,732 (2.5 )% $ 6,264 4.8 %
    Diluted earnings per common share $ 0.40 $ 0.41 (2.4 )% $ 0.46 (13.0 )%
     
    Net interest income $ 17,153 $ 17,856 (3.9 )% $ 15,294 12.2 %
    Provision (reversal) for loan losses (85 ) 294 (128.9 )% 95 (189.5 )%
    Noninterest income 2,409 2,239 7.6 % 3,362 (28.3 )%
    Noninterest expense 10,289 10,135 1.5 % 9,631 6.8 %
     
    Return on average assets (1) 1.57 % 1.60 % 1.73 %
    Return on average shareholders’ equity (1), (2) 12.43 % 12.92 % 17.50 %
    Net interest margin (1) 4.22 % 4.33 % 4.33 %
    Efficiency ratio (3) 52.60 % 50.44 % 51.62 %
                                                   
    ($ in thousands, except per share data)       3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Total assets $ 1,717,774 $ 1,697,028 1.2 % $ 1,578,970 8.8 %
    Net loans held-for-investment 1,330,035 1,325,515 0.3 % 1,210,901 9.8 %
    Total deposits 1,447,758 1,443,753 0.3 % 1,381,925 4.8 %
    Book value per common share (2), (4) $ 13.57 $ 13.16 3.1 % $ 10.97 23.7 %
    Tier 1 leverage ratio (consolidated) 12.83 % 12.60 % 10.09 %
    Total shareholders’ equity to total assets (2) 12.64 % 12.39 % 9.32 %
                                                   

    (1)

       

    Ratios are presented on an annualized basis.

    (2)

    The Company did not have any intangible equity components for
    the presented periods.

    (3)

    The ratios are calculated by dividing noninterest expense by
    the sum of net interest income and noninterest income.

    (4)

    The ratios are calculated by dividing total shareholders’
    equity by the number of outstanding common shares.

     

    Result of Operations (Unaudited)

    Net Interest Income and Net Interest Margin

    The following table presents the components of net interest income for
    the periods indicated:

          Three Months Ended
    ($ in thousands) 3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Interest income:
    Interest and fees on loans $ 20,934 $ 21,088 (0.7 )% $ 17,440 20.0 %
    Interest on investment securities 1,093 1,076 1.6 % 848 28.9 %
    Interest and dividend on other interest-earning assets 925   1,067   (13.3 )% 340   172.1 %
    Total interest income 22,952 23,231 (1.2 )% 18,628 23.2 %
    Interest expense:
    Interest on deposits 5,665 5,239 8.1 % 3,166 78.9 %
    Interest on other borrowings 134   136   (1.5 )% 168   (20.2 )%
    Total interest expense 5,799   5,375   7.9 % 3,334   73.9 %
    Net interest income $ 17,153   $ 17,856   (3.9 )% $ 15,294   12.2 %
                                                             

    The decrease in net interest income compared with the previous quarter
    was primarily due to decreases in number of days and dividend on Federal
    Home Loan Bank (“FHLB”) stock, and an increase in deposit cost in the
    current quarter. The increase compared with the year-ago quarter was
    primarily due to increases in average balance and average yield of
    interest-earning assets, partially offset by increases in average
    balance and average cost of interest-bearing liabilities.

    The decrease in interest and fees on loans compared with the previous
    quarter was primarily due to a decrease in number of days, partially
    offset by an increase in average loan balance. The increase compared
    with the year-ago quarter was primarily due to increases in both average
    balance and average yield of loans. The increase in average yield on
    loans was primarily due to the Company’s high proportion of variable
    rate loans that had repriced along with the rising interest rate
    environment in 2018. The following table presents a composition of total
    loans by interest rate type accompanied with the weighted-average
    contractual rates as of the dates indicated:

          3/31/2019       12/31/2018       3/31/2018

    % to Total
    Loans

         

    Weighted-
    Average
    Contractual
    Rate

    % to Total
    Loans

         

    Weighted-
    Average
    Contractual
    Rate

    % to Total
    Loans

         

    Weighted-
    Average
    Contractual
    Rate

    Fixed rate loans 34.6 % 5.17 % 34.4 % 5.13 % 26.8 % 5.07 %
    Variable rate loans 65.4 % 6.29 % 65.6 % 6.30 % 73.2 % 5.62 %
                                                                 

    The increases in interest on investment securities were primarily due to
    increases in both average balance and average yield of investment
    securities. The increase in average yield on investment securities was
    primarily due to additional purchases of investment securities during
    the rising rate environment. The Company purchased investment securities
    of $4.1 million and $44.1 million, respectively, during the current
    quarter and last 12-month period.

    The decrease in interest and dividend on other interest-earning assets
    compared with the previous quarter was primarily due to decreases in
    dividend on FHLB stock and average balance of interest-bearing deposits
    in other financial institutions. The increase compared with the year-ago
    quarter was primarily due to an increase in average balance of
    interest-bearing deposits in other financial institutions from excess
    cash generated from deposit growth and initial public offering (“IPO”)
    completed in 2018, and higher interest rates earned on these deposits
    during the rising rate environment.

    The increases in total interest expense were primarily due to increases
    in average balance and average cost of interest-bearing deposits. The
    increase in average cost on interest-bearing deposits was primarily due
    to the rising interest rate environment in 2018 and high competition in
    the Company’s deposit target markets.

    Provision (Reversal) for Loan Losses

    Provision (reversal) for loan losses was $(85) thousand for the current
    quarter compared with $294 thousand for the previous quarter and $95
    thousand for the year-ago quarter. The Company recognized reversal for
    loan losses primarily due to a decrease in historical loss rates,
    changes in qualitative adjustment factors and a net recovery during the
    current quarter. The Company recorded a net recovery of $55 thousand
    during the current quarter compared with a net charge-off of $223
    thousand for the previous quarter and a net recovery of $52 thousand for
    the year-ago quarter. Allowance for loan losses to total loans
    held-for-investment ratio was 0.98% at March 31, 2019, 0.98% at
    December 31, 2018, and 1.01% at March 31, 2018.

    Noninterest Income

    The following table presents the components of noninterest income for
    the periods indicated:

          Three Months Ended
    ($ in thousands) 3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Gain on sale of SBA loans $ 1,104 $ 1,059 4.2 % $ 2,049 (46.1 )%
    Gain on sale of residential property loans 16 6 166.7 % 22 (27.3 )%
    Gain on sale of other loans   18   (100.0 )% 45   (100.0 )%
    Total gain on sale of loans 1,120 1,083 3.4 % 2,116 (47.1 )%
    Service charges and fees on deposits 364 398 (8.5 )% 349 4.3 %
    Loan servicing income 631 371 70.1 % 626 0.8 %
    Other income 294   387   (24.0 )% 271   8.5 %

    Total noninterest income

    $ 2,409   $ 2,239   7.6 % $ 3,362   (28.3 )%
                                                             

    The increase in total noninterest income compared with the previous
    quarter was primarily due to increases in gain on sale of loans and loan
    servicing income, partially offset by decreases in other income and
    service charges and fees on deposits. The decrease compared with the
    year-ago quarter was primarily due to a decrease in gain on sale of
    loans, partially offset by increases in the other noninterest income
    components.

    The decreases in gain on sale of SBA loans in the current and previous
    quarters compared with the year-ago quarter were primarily due to
    decreases in sales volume and premium rates due to the conditions in the
    secondary market. The Company sold the guaranteed portion of SBA loans
    of $21.2 million, $26.2 million and $29.9 million, respectively, for the
    three months ended March 31, 2019, December 31, 2018 and March 31, 2018.
    The Company also sold residential property loans of $2.4 million, $702
    thousand and $1.2 million, respectively, and other real estate loans of
    none, $1.0 million and $1.1 million, respectively, for the three months
    ended March 31, 2019, December 31, 2018 and March 31, 2018.

    The increase in loan servicing income compared with the previous quarter
    was primarily due to lower loan servicing income during the previous
    quarter from an increase in servicing asset amortization from a higher
    prepayment trend.

    The decrease in other income compared with previous quarter was
    primarily due to decreases in wire fees and a non-recurring loan
    referral fee income of $33 thousand during the previous quarter.

    Noninterest Expense

    The following table presents the components of noninterest expense for
    the periods indicated:

          Three Months Ended
    ($ in thousands) 3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Salaries and employee benefits $ 6,622 $ 6,234 6.2 % $ 6,246 6.0 %
    Occupancy and equipment 1,313 1,358 (3.3 )% 1,144 14.8 %
    Professional fees 758 452 67.7 % 523 44.9 %
    Marketing and business promotion 228 526 (56.7 )% 388 (41.2 )%
    Data processing 318 309 2.9 % 302 5.3 %
    Director fees and expenses 189 281 (32.7 )% 230 (17.8 )%
    Regulatory assessments 116 75 54.7 % 132 (12.1 )%
    Other expenses 745   900   (17.2 )% 666   11.9 %
    Total noninterest expense $ 10,289   $ 10,135   1.5 % $ 9,631   6.8 %
                                                             

    The increase in salaries and employee benefits compared with the
    previous quarter was primarily due to an increase in vacation accrual
    and a decrease in direct loan origination cost, which reduces salaries
    and benefits at origination, from a lower loan production during the
    current quarter. The increase compared with the year-ago quarter was
    primarily due to increases in number of employees, partially offset by a
    decrease in bonus accruals and a retirement bonus paid to the former
    chief executive officer of $192 thousand in the year-ago quarter.

    The increases in occupancy and equipment in the current and previous
    quarters compared with the year-ago quarter was primarily due to
    increases in depreciation, occupancy lease, and maintenance expenses.

    The increases in professional fees were primarily due to increased audit
    fees for the year-end process as the Company became a public company and
    increased professional fees for enhancement of the Bank’s controls and
    processes on Bank Secrecy Act and Anti-Money Laundering compliance
    programs.

    The decrease in market and business promotion compared with the previous
    quarter was primarily due to an additional expense incurred during the
    previous quarter for the year-end promotions and gifts for customers.
    The decrease compared with the year-ago quarter was due to a decrease in
    advertising expense.

    The decreases in director fees and expenses was primarily due to a fewer
    number of directors during the current quarter as well as a severance
    payment of $68 thousand paid to the estate of former director and
    chairman, Kwang Jin Chung, who passed away during the previous quarter.

    The increase in regulatory assessments compared with the previous
    quarter was due to an adjustment made for the assessment rate reduction
    in previous quarter. The decrease compared with the year-ago quarter was
    primarily due to a decrease in assessment rate, partially offset by
    balance sheet growth.

    The decrease in other expenses compared with the previous quarter was
    primarily due to decreases in other loan related legal and office
    expenses. The increase compared with the year-ago period was primarily
    due to growth in operations.

    Balance Sheet (Unaudited)

    Loans

    The following table presents a composition of total loans (includes both
    loans held-for-sale and loans held-for-investment, net of deferred costs
    (fees)) as of the dates indicated:

    ($ in thousands)       3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Real estate loans:
    Commercial property $ 715,488 $ 709,409 0.9 % $ 674,958 6.0 %
    Residential property 237,115 233,816 1.4 % 184,396 28.6 %
    SBA property 124,751 120,939 3.2 % 135,581 (8.0 )%
    Construction 19,983 27,323 (26.9 )% 25,969 (23.1 )%
    Commercial and industrial loans:
    Commercial term 103,866 102,133 1.7 % 79,707 30.3 %
    Commercial lines of credit 77,022 80,473 (4.3 )% 58,184 32.4 %
    SBA commercial term 26,347 27,147 (2.9 )% 29,508 (10.7 )%
    Trade finance 14,046 11,521 21.9 % 2,124 561.3 %
    Other consumer loans 24,554   25,921   (5.3 )% 32,845   (25.2 )%
    Loans held-for-investment 1,343,172 1,338,682 0.3 % 1,223,272 9.8 %
    Loans held-for-sale 3,915   5,781   (32.3 )% 6,182   (36.7 )%
    Total loans $ 1,347,087   $ 1,344,463   0.2 % $ 1,229,454   9.6 %
                                                             

    The increase in loans held-for-investment for the current quarter was
    primarily due to new funding of $73.2 million and advances on lines of
    credit of $23.5 million, partially offset by pay-downs and pay-offs of
    $91.8 million.

    The decrease in loans held-for-sale for the current quarter was
    primarily due to sales of $23.6 million, partially offset by new funding
    of $21.5 million and a loan transferred from loans held-for-investment
    of $303 thousand.

    Credit Quality

    The following table presents compositions of non-performing loans and
    non-performing assets as of the dates indicated:

    ($ in thousands)     3/31/2019       12/31/2018       % Change       3/31/2018       % Change
    Nonaccrual loans:
    Real estate loans:
    Commercial property $ $ % $ 311 (100.0 )%
    Residential property 302 (100.0 )% 730 (100.0 )%
    SBA property 1,011 540 87.2 % 1,022 (1.1 )%
    Commercial and industrial loans:
    SBA commercial term 186 203 (8.4 )% 318 (41.5 )%
    Consumer loans 74   16   362.5 % 16   362.5 %
    Total nonaccrual loans held-for-investment 1,271 1,061 19.8 % 2,397 (47.0 )%
    Loans past due 90 days or more and still accruing     %   %
    Non-performing loans (“NPLs”) 1,271 1,061 19.8 % 2,397 (47.0 )%
    Other real estate owned 395     %   %
    Non-performing assets (“NPAs”) $ 1,666   $ 1,061   57.0 % $ 2,397   (30.5 )%
    Loans past due and still accruing:
    Loans past due 30 to 59 days and still accruing $ 950 $ 368 158.2 % $ 864 10.0 %
    Loans past due 60 to 89 days and still accruing 12 9 33.3 % 128 (90.6 )%
    Loans past due 90 days or more and still accruing     %   %
    Total loans past due and still accruing $ 962   $ 377   155.2 % $ 992   (3.0 )%
    Troubled debt restructurings (“TDRs”):
    Accruing TDRs $ 412 $ 432 (4.6 )% $ 554 (25.6 )%
    Nonaccrual TDRs 127   131   (3.1 )% 595   (78.7 )%
    Total TDRs $ 539   $ 563   (4.3 )% $ 1,149   (53.1 )%
    NPLs to loans held-for-investment 0.09 % 0.08 % 0.20 %
    NPAs to total assets 0.10 % 0.06 % 0.15 %
                                                   

    Classified Assets

    Classified loans were $7.0 million at March 31, 2019, an increase of
    $814 thousand, or 13.1%, from $6.2 million at December 31, 2018, and an
    increase of $2.1 million, or 41.5%, from $5.0 million at March 31, 2018.
    Classified assets, which consist of classified loans and OREO, and the
    classified assets to total assets ratios were $7.4 million and 0.43%,
    respectively, at March 31, 2019, $6.2 million and 0.37%, respectively,
    at December 31, 2018, and $5.0 million and 0.32%, respectively, at
    March 31, 2018.

    Investment Securities

    Total investment securities were $167.7 million at March 31, 2019, a
    decrease of $1.1 million, or 0.6%, from $168.8 million at December 31,
    2018, and an increase of $20.9 million, or 14.2%, from $146.8 million at
    March 31, 2018. The decrease for the current quarter was primarily due
    to principal pay-downs and calls of $6.2 million and net premium
    amortization of $188 thousand, partially offset by purchases of $4.1
    million and an increase in fair value of securities available-for-sale
    of $1.2 million.

    Deposits

    The following table presents deposit mix as of the dates indicated:

          3/31/2019       12/31/2018       3/31/2018
    ($ in thousands) Amount       % to Total Amount       % to Total Amount       % to Total
    Noninterest-bearing demand deposits $ 330,645 22.8 % $ 329,270 22.8 % $ 321,109 23.2 %
    Interest-bearing deposits:
    NOW 13,045 0.9 % 24,683 1.7 % 9,716 0.7 %
    Money market accounts 272,085 18.8 % 280,733 19.4 % 272,208 19.7 %
    Savings 9,510 0.7 % 8,194 0.6 % 8,181 0.6 %
    Time deposits of $250,000 or less 455,270 31.4 % 477,134 33.0 % 477,575 34.6 %
    Time deposits of more than $250,000 209,693 14.5 % 181,239 12.6 % 140,636 10.2 %
    State and brokered deposits 157,510   10.9 % 142,500   9.9 % 152,500   11.0 %
    Total interest-bearing deposits 1,117,113   77.2 % 1,114,483   77.2 % 1,060,816   76.8 %
    Total deposits $ 1,447,758   100.0 % $ 1,443,753   100.0 % $ 1,381,925   100.0 %
                                                                       

    The increase for the current quarter was primarily due to new accounts
    of $133.1 million, partially offset by closed accounts of $95.4 million
    and net balance decreases of $33.6 million on existing accounts.

    Operating Lease Assets and Liabilities

    During the current quarter, the Company adopted Accounting Standard
    Update (“ASU”) 2016-02, “Leases (Topic 842),” and all subsequent
    ASUs that are related to Topic 842. The Company adopted this ASU using
    the optional transition method with a cumulative effect adjustment to
    retained earnings without restating prior financial statements for
    comparable amounts. As a result, the Company recognized right-of-use
    assets and liabilities of $9.6 million and $10.6 million, respectively,
    with a cumulative effect adjustment of $53 thousand to retained earnings
    at the date of adoption.

    Shareholders’ Equity

    Shareholders’ equity was $217.2 million at March 31, 2019, an increase
    of $6.9 million, or 3.3%, from $210.3 million at December 31, 2018, and
    an increase of $70.0 million, or 47.5%, from $147.2 million at March 31,
    2018. The increase for the current quarter was primarily due to
    retention of earnings, partially offset by cash dividends paid on common
    stock. The year-over-year increase was primarily due to the IPO
    completed in August 2018 and retention of earnings, partially offset by
    cash dividends paid on common stock.

    On March 28, 2019, the Company’s Board of Directors approved the
    repurchase of up to $6.5 million of the Company’s common stock through
    March 27, 2020.

    Capital Ratios

    The following table presents capital ratios for the Company and the Bank
    as of dates indicated:

          3/31/2019       12/31/2018       3/31/2018
    Pacific City Financial Corporation
    Common tier 1 capital (to risk-weighted assets) 16.52 % 16.28 % 12.32 %
    Total capital (to risk-weighted assets) 17.53 % 17.31 % 13.36 %
    Tier 1 capital (to risk-weighted assets) 16.52 % 16.28 % 12.32 %
    Tier 1 capital (to average assets) 12.83 % 12.60 % 10.09 %
    Pacific City Bank
    Common tier 1 capital (to risk-weighted assets) 16.41 % 16.19 % 12.25 %
    Total capital (to risk-weighted assets) 17.42 % 17.21 % 13.29 %
    Tier 1 capital (to risk-weighted assets) 16.41 % 16.19 % 12.25 %
    Tier 1 capital (to average assets) 12.74 % 12.53 % 10.03 %
                                   

    Declaration of Increased Cash Dividend

    On April 25, 2019, the Company’s Board of Directors declared a quarterly
    cash dividend of $0.06 per common share, an increase of 20% from $0.05
    per share in the prior quarter. The dividend will be paid on or about
    June 14, 2019, to shareholders of record as of the close of business on
    May 31, 2019.

    “I am pleased to announce our seventeenth consecutive quarterly cash
    dividend and an increase in that cash dividend to $0.06 per share,” said
    Henry Kim, President and Chief Executive Officer. “The decision is based
    on our strong financial performance and the Board of Directors’
    continuing confidence in our anticipated growth in 2019 and beyond.”

    About Pacific City Financial Corporation

    Pacific City Financial Corporation is the bank holding company for
    Pacific City Bank, a California state chartered bank, offering a full
    suite of commercial banking services to small to medium-sized
    businesses, individuals and professionals, primarily in Southern
    California, and predominantly in Korean-American and other minority
    communities.

    Cautionary Note Regarding Forward-Looking
    Statements

    This press release contains forward-looking statements. These
    forward-looking statements represent plans, estimates, objectives,
    goals, guidelines, expectations, intentions, projections and statements
    of our beliefs concerning future events, business plans, objectives,
    expected operating results and the assumptions upon which those
    statements are based. Forward-looking statements include without
    limitation, any statement that may predict, forecast, indicate or imply
    future results, performance or achievements, and are typically
    identified with words such as ‘‘may,’’ “could,” “should,” “will,”
    “would,” “believe,” “anticipate,” “estimate,” “expect,” “aim,” “intend,”
    “plan,” or words or phases of similar meaning. We caution that the
    forward-looking statements are based largely on our expectations and are
    subject to a number of known and unknown risks and uncertainties that
    are subject to change based on factors which are, in many instances,
    beyond our control. These and other important factors are detailed in
    various securities law filings made periodically by the Company, copies
    of which are available from the Company without charge. Actual results,
    performance or achievements could differ materially from those
    contemplated, expressed, or implied by the forward-looking statements.
    Any forward-looking statements presented herein are made only as of the
    date of this press release, and we do not undertake any obligation to
    update or revise any forward-looking statements to reflect changes in
    assumptions, the occurrence of unanticipated events, or otherwise,
    except as required by law.

    Pacific City Financial Corporation and Subsidiary
    Consolidated Balance Sheets (Unaudited)

    ($ in thousands, except share and per share data)

                                 
    3/31/2019 12/31/2018 % Change 3/31/2018 % Change
    Assets
    Cash and due from banks $ 22,106 $ 24,121 (8.4 )% $ 16,765 31.9 %
    Interest-bearing deposits in financial institutions 151,481   138,152   9.6 % 164,788   (8.1 )%
    Total cash and cash equivalents 173,587   162,273   7.0 % 181,553   (4.4 )%
    Securities available-for-sale, at fair value 144,353 146,991 (1.8 )% 125,940 14.6 %
    Securities held-to-maturity 23,311   21,760   7.1 % 20,826   11.9 %
    Total investment securities 167,664   168,751   (0.6 )% 146,766   14.2 %
    Loans held-for-sale 3,915 5,781 (32.3 )% 6,182 (36.7 )%
    Loans held-for-investment, net of deferred loan costs (fees) 1,343,172 1,338,682 0.3 % 1,223,272 9.8 %
    Allowance for loan losses (13,137 ) (13,167 ) (0.2 )% (12,371 ) 6.2 %
    Net loans held-for-investments 1,330,035   1,325,515   0.3 % 1,210,901   9.8 %
    Premises and equipment, net 4,259 4,588 (7.2 )% 5,069 (16.0 )%
    Federal Home Loan Bank and other bank stock 7,433 7,433 % 6,589 12.8 %
    Other real estate owned, net 395 % %
    Deferred tax assets, net 3,251 3,377 (3.7 )% 4,239 (23.3 )%
    Servicing assets 7,485 7,666 (2.4 )% 8,890 (15.8 )%
    Operating lease assets 9,132 % %
    Accrued interest receivable and other assets 10,618   11,644   (8.8 )% 8,781   20.9 %
    Total assets $ 1,717,774   $ 1,697,028   1.2 % $ 1,578,970   8.8 %
    Liabilities
    Deposits:
    Noninterest-bearing demand $ 330,645 $ 329,270 0.4 % $ 321,109 3.0 %
    Savings, NOW and money market accounts 294,650 313,610 (6.0 )% 290,105 1.6 %
    Time deposits of $250,000 or less 492,770 519,634 (5.2 )% 530,075 (7.0 )%
    Time deposits of more than $250,000 329,693   281,239   17.2 % 240,636   37.0 %
    Total deposits 1,447,758 1,443,753 0.3 % 1,381,925 4.8 %
    Federal Home Loan Bank advances 30,000 30,000 % 40,000 (25.0 )%
    Operating lease liabilities 10,133 % %
    Accrued interest payable and other liabilities 12,672   12,979   (2.4 )% 9,812   29.1 %
    Total liabilities 1,500,563   1,486,732   0.9 % 1,431,737   4.8 %
    Commitments and contingent liabilities
    Shareholders’ equity
    Common stock 171,407 171,067 0.2 % 125,511 36.6 %
    Additional paid-in capital 3,336 3,299 1.1 % 3,072 8.6 %
    Retained earnings 43,288 37,577 15.2 % 20,898 107.1 %
    Accumulated other comprehensive loss, net (820 ) (1,647 ) (50.2 )% (2,248 ) (63.5 )%
    Total shareholders’ equity 217,211   210,296   3.3 % 147,233   47.5 %
    Total liabilities and shareholders’ equity $ 1,717,774   $ 1,697,028   1.2 % $ 1,578,970   8.8 %
     
    Outstanding common shares 16,011,151 15,977,754 13,424,777
    Book value per common share (1) $ 13.57 $ 13.16 $ 10.97
    Total loan to total deposit ratio 93.05 % 93.12 % 88.97 %
    Noninterest-bearing deposits to total deposits 22.84 % 22.81 % 23.24 %
                                                   

    Contacts

    Timothy Chang
    Executive Vice President & Chief Financial Officer
    213-210-2000

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