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Pacific City Financial Corporation Reports Earnings of $6.6 million for Q1 2019 and Increased Cash Dividend
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 |
||
(3) |
The ratios are calculated by dividing noninterest expense by |
||
(4) |
The ratios are calculated by dividing total shareholders’ |
||
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 |
Weighted- |
% to Total |
Weighted- |
% to Total |
Weighted- |
|||||||||||||||||||||||||
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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Cannabis
Cannabis Capsule Global Analysis Report 2024: Market to Reach $79.2 Billion in 2028 – Forecast to 2033 Featuring GW Pharmaceuticals, Trulieve Cannabis, Green Thumb Industries, Tilray, Columbia Care
Innocan
Innocan Pharma Initiates FDA Approval Process for Liposome Injection Therapy for Chronic Pain
With its submission of a Pre-IND Meeting Request Letter, Innocan initiates the regulatory process with the U.S. Food and Drug Administration (FDA) for the approval of its prolonged CBD release technology for human use
HERZLIYA, Israel and CALGARY, AB, April 22, 2024 /PRNewswire/ — Innocan Pharma Corporation (CSE: INNO) (FSE: IP4) (OTCQB: INNPF) (“Innocan” or the “Company”), is pleased to announce that is has reached a key milestone: the Company submitted its letter of application for a Pre-IND meeting, the first phase in the FDA approval process in the United States for Innocan’s Liposome-Cannabidiol (LPT-CBD) injectable treatment of chronic pain.
With the global market for pain therapeutics widely expected to exceed US$100 billion by 2032[1], LPT therapy which requires only one single monthly subcutaneous injection, is positioned as a highly attractive alternative to opioid-based approaches. Opioids have and continue to take a significant human toll in recent years, with more than three-quarters of drug overdose deaths in the United States involving opioids, according to the United States Center for Disease Control and Prevention[2].
Innocan’s therapy has shown consistent efficacy in multiple pre-clinical trials in recent years of it’s LPT-CBD injectable treatment through prolonged and controlled release of CBD in animals with chronic pain conditions. Innocan’s Pre-IND Meeting Request Letter to the FDA is a key milestone and important first step in seeking approval of its LPT-CBD therapy for use in humans. At the Pre-IND meeting, the objective will be to obtain guidance from the FDA on the preclinical and clinical development plan, enabling the initiation of an Investigational New Drug (IND) program in the United States.
Iris Bincovich, CEO of Innocan, commented: “We are extremely excited to embark on this next stage in the development of LPT-CBD injectables, this is a major Milestone for Innocan Pharma. We have invested significant effort and many thousands of person-hours in its research and development, accumulating a wealth of preclinical data that will serve as the foundation for our participation in the FDA process. This is a key milestone for Innocan and marks our first step towards the FDA’s recognition of our technology. We see significant potential for our therapy, with an addressable market for pain management therapeutics expected to exceed US $100 billion by 2032, and we look forward to tapping that.“
Dr. Joseph Pergolizzi, Innocan’s FDA Advisory Board Member, added:
“We have worked hard to catalogue the data collected as part of our animal LPT therapy testing program and prepare it for the FDA. We look forward to working under FDA guidance, with the goal of completing the review process as quickly and efficiently as possible. We believe that Innocan’s unique treatment method, if and when it should become FDA-approved has the potential of being a highly valuable non-opioid addition in the medical arsenal of the management of chronic pain.”
About Innocan
Innocan is a pharmaceutical tech company that operates under two main segments: Pharmaceuticals and Consumer Wellness. In the Pharmaceuticals segment, Innocan focuses on developing innovative drug delivery platform technologies based on advanced cannabinoids science, to treat various conditions to improve patients’ quality of life. This segment involves two drug delivery technologies: (i) LPT CBD- loaded liposome platform facilitating exact dosing and the prolonged and controlled release of CBD into the blood stream. The LPT delivery platform research is in the preclinical trial phase for: Pain Management. In the Consumer Wellness segment, Innocan develops and markets a wide portfolio of innovative and high-performance self-care products to promote a healthier lifestyle. Under this segment, Innocan has established a joint venture by the name of BI Sky Global Ltd. that focuses on advanced targeted online sales. https://innocanpharma.com/
For further information, please contact:
For Innocan Pharma Corporation:
Iris Bincovich, CEO
+1-516-210-4025
+972-54-3012842
+442037699377
[email protected]
NEITHER THE CANADIAN SECURITIES EXCHANGE NOR ITS REGULATION SERVICES PROVIDER HAVE REVIEWED OR ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
Cautionary note regarding forward-looking information
Certain information set forth in this news release, including, without limitation, information regarding research and development, collaborations, the filing of potential applications with the FDA and other regulatory authorities, the potential achievement of future regulatory milestones, the potential for treatment of conditions and other therapeutic effects resulting from research activities and/or the Company’s products, requisite regulatory approvals and the timing for market entry, is forward-looking information within the meaning of applicable securities laws. By its nature, forward-looking information is subject to numerous risks and uncertainties, some of which are beyond Innocan’s control. The forward-looking information contained in this news release is based on certain key expectations and assumptions made by Innocan, including expectations and assumptions concerning the anticipated benefits of the products, satisfaction of regulatory requirements in various jurisdictions and satisfactory completion of requisite production and distribution arrangements.
Forward-looking information is subject to various risks and uncertainties which could cause actual results and experience to differ materially from the anticipated results or expectations expressed in this news release. The key risks and uncertainties include but are not limited to: general global and local (national) economic, market and business conditions; governmental and regulatory requirements and actions by governmental authorities; and relationships with suppliers, manufacturers, customers, business partners and competitors. There are also risks that are inherent in the nature of product distribution, including import / export matters and the failure to obtain any required regulatory and other approvals (or to do so in a timely manner) and availability in each market of product inputs and finished products. The anticipated timeline for entry to markets may change for a number of reasons, including the inability to secure necessary regulatory requirements, or the need for additional time to conclude and/or satisfy the manufacturing and distribution arrangements. As a result of the foregoing, readers should not place undue reliance on the forward-looking information contained in this news release concerning the timing of launch of product distribution. A comprehensive discussion of other risks that impact Innocan can also be found in Innocan’s public reports and filings which are available under Innocan’s profile at www.sedar.com.
Readers are cautioned that undue reliance should not be placed on forward-looking information as actual results may vary materially from the forward-looking information. Innocan does not undertake to update, correct or revise any forward looking information as a result of any new information, future events or otherwise, except as may be required by applicable law.
[1] https://www.gminsights.com/industry-analysis/pain-management-drugs-market
[2] https://www.cdc.gov/opioids/data/index.html
Logo – https://mma.prnewswire.com/media/2046271/3968398/Innocan_Pharma_Corporation_Logo.jpg
View original content:https://www.prnewswire.co.uk/news-releases/innocan-pharma-initiates-fda-approval-process-for-liposome-injection-therapy-for-chronic-pain-302122779.html
Curaleaf
Curaleaf Completes Acquisition of Northern Green Canada
Bolsters Company’s Advantage in Several Key Emerging Markets, including Australia, New Zealand, Germany, Poland and the United Kingdom
NEW YORK, April 22, 2024 /PRNewswire/ — Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf” or the “Company”), a leading international provider of consumer cannabis products, announced today the closing of its acquisition of Northern Green Canada (“NGC”), a vertically integrated Canadian licensed cannabis producer focused primarily on expanding in the international market through its EU-GMP certification. The accretive acquisition amplifies the Company’s strategic advantage in established European markets including Germany, Poland and the United Kingdom and provides a foothold in the emerging markets of Australia and New Zealand.
Integrating NGC’s international operation will equip Curaleaf with a secure and consistent high quality, non-irradiated, indoor EU-GMP flower supply, essential to maintaining its leading positions in Germany, the United Kingdom and Poland.
“We are thrilled to welcome NGC formally to the Curaleaf family of global brands,” said Boris Jordan, Founder and Executive Chairman of Curaleaf. “This is an incredibly important deal for our international expansion strategy, as we’ll be able to bolster our supply of high quality EU-GMP certified flower immediately to key European markets as well as enter the fast-growing markets of Australia and New Zealand.”
The global cannabis market is projected to generate $55 billion in sales by 2027. Emerging markets beyond the United States and Canada, including Germany, Australia and New Zealand are expected to contribute $6.3 billion of the $55 billion projection.
Terms of the acquisition of NGC include an initial payment at closing of the Company’s Subordinate Voting Shares valued at approximately US $16 million, subject to a typical post-closing adjustment. An earnout may also be paid in 2025 based upon 2024 performance of NGC’s operations, up to 50% of which will be cash and the rest paid in additional Subordinate Voting Shares. The issuance of Subordinate Voting Shares in connection with the acquisition of NGC has been conditionally approved by the Toronto Stock Exchange, subject to fulfilling customary listing conditions.
About Curaleaf Holdings
Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, JAMS, Find and Zero Proof provide industry-leading service, product selection and accessibility across the medical and adult use markets. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.
Forward Looking Statements
This media advisory contains forward-looking statements and forward-looking information within the meaning of applicable securities laws. These statements relate to future events or future performance. All statements other than statements of historical fact may be forward–looking statements or information. Generally, forward-looking statements and information may be identified by the use of forward-looking terminology such as “plans”, “expects” or, “proposed”, “is expected”, “intends”, “anticipates”, or “believes”, or variations of such words and phrases, or by the use of words or phrases which state that certain actions, events or results may, could, would, or might occur or be achieved. More particularly and without limitation, this news release contains forward-looking statements and information concerning the expected benefits of the acquisition of NGC, and the Company’s planned expansion on internal markets, the Company’s anticipated strategic advantages in European markets and emerging markets, the integration of NGC’s internal operations, the anticipated global cannabis market, and the listing of shares issuable in connection with the acquisition on the Toronto Stock Exchange. Such forward-looking statements and information reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company with respect to the matters described in this new release, including the Company’s ability to successfully realize the expected benefits of the acquisition, and the Company’s ability to fulfil the listing conditions imposed by the Toronto Stock Exchange. Forward-looking statements involve risks and uncertainties, which are based on current expectations as of the date of this release and subject to known and unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such statements, including the failure to realize the expected benefits of the acquisition, or the Company’s failure to fulfil the listing conditions imposed by the Toronto Stock Exchange. Additional information about these assumptions and risks and uncertainties is contained under “Risk Factors and Uncertainties” in the Company’s latest annual information form filed on March 6, 2024, which is available under the Company’s SEDAR profile at http://www.sedar.com, and in other filings that the Company has made and may make with applicable securities authorities in the future. Forward-looking statements contained herein are made only as to the date of this press release and we undertake no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law. We caution investors not to place considerable reliance on the forward-looking statements contained in this press release. The Toronto Stock Exchange has not reviewed, approved or disapproved the content of this news release.
INVESTOR CONTACT
Curaleaf Holdings, Inc.
Camilo Lyon, Chief Investment Officer
[email protected]
MEDIA CONTACT
Curaleaf Holdings, Inc.
Tracy Brady, SVP Corporate Communications
[email protected]
View original content:https://www.prnewswire.co.uk/news-releases/curaleaf-completes-acquisition-of-northern-green-canada-302123010.html
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