SAN FRANCISCO–(BUSINESS WIRE)–#earnings–Presidio Bank (OTCBB: PDOB), a Bay Area business bank, today reported unaudited results for the second quarter ended June 30, 2019 with Net Income of $2.7 million, down from $3.1 million in the first quarter of 2019 and down from $2.8 million in the second quarter of 2018. During the second quarter of 2019, the Bank incurred $726 thousand in pretax costs related to its recently announced merger with Heritage Bank of Commerce. Net of these costs, Net Income would have increased over the first quarter of 2019 and the second quarter of 2018. Diluted Earnings per Share were $0.41 for the second quarter of 2019 versus $0.47 for the first quarter of 2019 and $0.44 for the second quarter of 2018. Total Assets were $840 million at June 30, 2019, down $66 million from March 31, 2019 and down $13 million from June 30, 2018.
“The Bank had another solid quarter of core operating results with strong net interest margin and good expense control,” said Presidio Bank CEO Steve Heitel. “We are excited about our upcoming merger with Heritage Bank of Commerce and the ability to expand our geographic reach and product offerings.”
Financial Highlights
- Total Loans Outstanding were down $7 million from the quarter ending March 31, 2019 and up $45 million from the quarter ending June 30, 2018 or 7%. Growth in Commercial Real Estate Loans was offset by declines in Construction Loans, Personal Loans and Residential Real Estate Loans. A number of bridge loans paid off during the quarter as real estate sales activity remains strong. Line of Credit utilization was 39%, up from 37% in the first quarter of 2019. Loan Originations for the second quarter of 2019 were $47 million, up from $24 million in the first quarter of 2019. Loan pipeline activity remains solid, although loan payoffs are expected to remain elevated.
- Total Deposits decreased by $71 million from the quarter ended March 31, 2019. $54 million of decline was centered in three client relationships. One client brought in a large temporary deposit at the end of the first quarter that was distributed in the second quarter. A large deposit client was sold and balances transferred to the acquiror’s bank. A third client had a seasonal reduction in balances with a rebound expected in the third quarter. In addition, the Bank reduced brokered deposits by $10 million during the quarter. Despite a $59 million reduction during the quarter, Demand Deposits still account for 43% of Total Deposits.
- Net Interest Income of $9.7 million in the second quarter of 2019 was up from $9.5 million in the first quarter. Net Interest Income was up 16% from the second quarter of 2018. Net Interest Margin declined slightly during the second quarter of 2019 to 4.61% from 4.64% in the first quarter of 2019. Loan Yields for the quarter increased to 5.54% from 5.50% in the first quarter of 2019. Cost of Deposits was up to 0.44% in the quarter from 0.41% in the first quarter of 2019.
- Gross Operating Expenses were up 6% from the first quarter of 2019 and 17% from the second quarter of 2018. Adjusted for merger related expenses, Operating Expenses declined by 7% from the first quarter of 2019 and increased by 2% from the second quarter of 2018. The decline from the first quarter of 2019 was largely due to the seasonal decline in Compensation and Benefit Expense.
- Year-to-date June 30, 2019 Total Revenue grew 16% over year-to-date June 30, 2018 Total Revenue while Total Expenses grew 12% for the same period. Adjusted for merger related expenses, Total Expenses grew only 5%. The Bank’s efficiency ratio was 59.9% in the second quarter of 2019 versus 57.3% in the first quarter of 2019 and 59.1% in the second quarter of 2018.
- Credit quality deteriorated modestly during the quarter as classified loans increased by $3.4 million. The Classified to Capital Ratio increased to 11.8% from 8.8% due to two newly classified relationships. Total Criticized and Classified Loans still only represent 3% of Loan Commitments and 4% of Loans Outstanding. The Bank still has one non-performing loan totaling $3.7 million.
- Book Value per Share increased to $15.16 per share at June 30, 2019 from $14.67 per share at March 31, 2019 and $13.06 at June 30, 2018.
“I am pleased to report that the Bank has maintained its Outstanding Rating for Community Reinvestment in a recent Federal Reserve Examination,” said Presidio Bank Chairman Jim Woolwine. “In addition, Presidio has once again been named to the San Francisco Business Times list of Top Corporate Philanthropists.”
|
2nd Quarter 2019 Financial Results |
||||||||||||||||||
|
(Dollars in thousands, except per share amounts, unaudited) |
||||||||||||||||||
|
Condensed Balance Sheet |
||||||||||||||||||
|
6/30/2019 |
3/31/2019 |
Change |
6/30/2018 |
Change |
12/31/2018 |
Change |
||||||||||||
|
Cash and due from banks |
|
13,389 |
|
|
18,021 |
|
-25.7 |
% |
|
8,842 |
|
51.4 |
% |
|
7,804 |
|
71.6 |
% |
|
Interest bearing due from banks |
|
48,013 |
|
|
102,859 |
|
-53.3 |
% |
|
130,412 |
|
-63.2 |
% |
|
67,877 |
|
-29.3 |
% |
|
Total cash and equivalents |
|
61,402 |
|
|
120,880 |
|
-49.2 |
% |
|
139,254 |
|
-55.9 |
% |
|
75,681 |
|
-18.9 |
% |
|
Investment securities |
|
54,743 |
|
|
56,255 |
|
-2.7 |
% |
|
41,326 |
|
32.5 |
% |
|
57,925 |
|
-5.5 |
% |
|
Loans, net of fees |
|
698,073 |
|
|
705,114 |
|
-1.0 |
% |
|
653,226 |
|
6.9 |
% |
|
710,939 |
|
-1.8 |
% |
|
Allowance for loan losses |
|
(7,463 |
) |
|
(7,463 |
) |
0.0 |
% |
|
(7,325 |
) |
1.9 |
% |
|
(7,439 |
) |
0.3 |
% |
|
Net loans |
|
690,610 |
|
|
697,651 |
|
-1.0 |
% |
|
645,901 |
|
6.9 |
% |
|
703,500 |
|
-1.8 |
% |
|
Premises and equipment, net |
|
2,063 |
|
|
2,175 |
|
-5.2 |
% |
|
2,464 |
|
-16.3 |
% |
|
2,287 |
|
-9.8 |
% |
|
Other assets and interest receivable |
|
31,669 |
|
|
29,098 |
|
8.8 |
% |
|
24,373 |
|
29.9 |
% |
|
23,042 |
|
37.4 |
% |
|
Total assets |
|
840,487 |
|
|
906,059 |
|
-7.2 |
% |
|
853,318 |
|
-1.5 |
% |
|
862,435 |
|
-2.5 |
% |
|
Non-interest-bearing demand |
|
307,648 |
|
|
366,381 |
|
-16.0 |
% |
|
298,354 |
|
3.1 |
% |
|
319,358 |
|
-3.7 |
% |
|
Interest bearing transaction |
|
94,385 |
|
|
119,282 |
|
-20.9 |
% |
|
108,338 |
|
-12.9 |
% |
|
116,120 |
|
-18.7 |
% |
|
Money market and savings accounts |
|
268,411 |
|
|
243,680 |
|
10.1 |
% |
|
302,077 |
|
-11.1 |
% |
|
285,245 |
|
-5.9 |
% |
|
Time deposits |
|
51,916 |
|
|
64,363 |
|
-19.3 |
% |
|
48,698 |
|
6.6 |
% |
|
37,995 |
|
36.6 |
% |
|
Total deposits |
|
722,360 |
|
|
793,706 |
|
-9.0 |
% |
|
757,467 |
|
-4.6 |
% |
|
758,718 |
|
-4.8 |
% |
|
Borrowings |
|
10,007 |
|
|
9,875 |
|
1.3 |
% |
|
9,961 |
|
0.5 |
% |
|
9,865 |
|
1.4 |
% |
|
Other liabilities |
|
12,155 |
|
|
9,859 |
|
23.3 |
% |
|
5,152 |
|
135.9 |
% |
|
5,182 |
|
134.6 |
% |
|
Total liabilities |
|
744,522 |
|
|
813,440 |
|
-8.5 |
% |
|
772,580 |
|
-3.6 |
% |
|
773,765 |
|
-3.8 |
% |
|
Common stock |
|
69,109 |
|
|
68,728 |
|
0.6 |
% |
|
66,995 |
|
3.2 |
% |
|
67,978 |
|
1.7 |
% |
|
Retained earnings |
|
26,447 |
|
|
23,752 |
|
11.3 |
% |
|
13,908 |
|
90.1 |
% |
|
20,693 |
|
27.8 |
% |
|
Other comprehensive income |
|
409 |
|
|
139 |
|
194.0 |
% |
|
(165 |
) |
NM |
|
(1 |
) |
NM |
||
|
Total shareholder’s equity |
|
95,965 |
|
|
92,619 |
|
3.6 |
% |
|
80,738 |
|
18.9 |
% |
|
88,670 |
|
8.2 |
% |
|
Total liabilities and equity |
|
840,487 |
|
|
906,059 |
|
-7.2 |
% |
|
853,318 |
|
-1.5 |
% |
|
862,435 |
|
-2.5 |
% |
|
Book value per share |
||||||||||||||||||
|
Book value per share |
$ |
15.16 |
|
$ |
14.67 |
|
$ |
13.06 |
|
$ |
14.21 |
|
||||||
|
Total shares outstanding EOP |
|
6,331 |
|
|
6,311 |
|
|
6,184 |
|
|
6,241 |
|
||||||
|
Capital Ratios |
||||||||||||||||||
|
Tier 1 leverage ratio |
|
10.9 |
% |
|
10.7 |
% |
|
9.8 |
% |
|
10.3 |
% |
||||||
|
Tier 1 risk-based capital ratio |
|
10.9 |
% |
|
10.5 |
% |
|
9.9 |
% |
|
10.0 |
% |
||||||
|
Tangible common risk-based ratio |
|
10.9 |
% |
|
10.5 |
% |
|
9.9 |
% |
|
10.0 |
% |
||||||
|
Total risk-based capital ratio |
|
13.0 |
% |
|
12.5 |
% |
|
12.1 |
% |
|
12.1 |
% |
||||||
|
NM = Not Meaningful |
|
Condensed Statement of Income |
||||||||||||||||||||||
|
For the three months ended |
For the six months ended |
|||||||||||||||||||||
|
6/30/2019 |
3/31/2019 |
Change |
6/30/2018 |
Change |
6/30/2019 |
6/30/2018 |
Change |
|||||||||||||||
|
Interest income |
|
10,698 |
|
|
10,495 |
|
1.9 |
% |
|
9,042 |
|
18.3 |
% |
|
21,193 |
|
|
17,612 |
|
20.3 |
% |
|
|
Interest expense |
|
1,037 |
|
|
985 |
|
(5.4 |
%) |
|
707 |
|
(46.8 |
%) |
|
2,022 |
|
|
1,194 |
|
(69.3 |
%) |
|
|
Net interest income |
|
9,661 |
|
|
9,510 |
|
1.6 |
% |
|
8,335 |
|
15.9 |
% |
|
19,171 |
|
|
16,418 |
|
16.8 |
% |
|
|
Provision for loan loss |
|
– |
|
|
24 |
|
NM |
|
|
– |
|
NM |
|
|
24 |
|
|
159 |
|
84.7 |
% |
|
|
Net interest income after provision |
|
9,661 |
|
|
9,486 |
|
1.8 |
% |
|
8,335 |
|
15.9 |
% |
|
19,147 |
|
|
16,259 |
|
17.8 |
% |
|
|
Other income |
|
278 |
|
|
311 |
|
(10.5 |
%) |
|
309 |
|
(9.8 |
%) |
|
589 |
|
|
629 |
|
(6.4 |
%) |
|
|
Compensation and benefit expenses |
|
3,274 |
|
|
3,678 |
|
11.0 |
% |
|
3,254 |
|
(0.6 |
%) |
|
6,952 |
|
|
6,537 |
|
(6.4 |
%) |
|
|
Occupancy and equipment expenses |
|
665 |
|
|
628 |
|
(5.9 |
%) |
|
602 |
|
(10.6 |
%) |
|
1,293 |
|
|
1,218 |
|
(6.1 |
%) |
|
|
Data processing |
|
438 |
|
|
445 |
|
1.5 |
% |
|
400 |
|
(9.5 |
%) |
|
883 |
|
|
785 |
|
(12.6 |
%) |
|
|
Merger expense |
|
726 |
|
|
33 |
|
(2104.8 |
%) |
|
– |
|
NM |
|
|
759 |
|
|
– |
|
NM |
|
|
|
Professional and legal |
|
265 |
|
|
176 |
|
(51.2 |
%) |
|
278 |
|
4.5 |
% |
|
441 |
|
|
425 |
|
(3.7 |
%) |
|
|
Other operating expenses |
|
583 |
|
|
665 |
|
12.4 |
% |
|
571 |
|
(2.1 |
%) |
|
1,248 |
|
|
1,348 |
|
7.4 |
% |
|
|
Total operating expenses |
|
5,951 |
|
|
5,625 |
|
(5.8 |
%) |
|
5,105 |
|
(16.6 |
%) |
|
11,576 |
|
|
10,313 |
|
(12.2 |
%) |
|
|
Net income before taxes |
|
3,988 |
|
|
4,172 |
|
(4.4 |
%) |
|
3,539 |
|
12.7 |
% |
|
8,160 |
|
|
6,575 |
|
24.1 |
% |
|
|
Income taxes |
|
1,283 |
|
|
1,113 |
|
(15.3 |
%) |
|
710 |
|
(80.7 |
%) |
|
2,396 |
|
|
1,521 |
|
(57.5 |
%) |
|
|
Net income |
|
2,705 |
|
|
3,059 |
|
(11.6 |
%) |
|
2,829 |
|
(4.4 |
%) |
|
5,764 |
|
|
5,054 |
|
14.0 |
% |
|
|
Earnings Per Share |
||||||||||||||||||||||
|
Basic earnings per share |
$ |
0.43 |
|
$ |
0.49 |
|
(12.2 |
%) |
$ |
0.46 |
|
(7.3 |
%) |
$ |
0.91 |
|
$ |
0.83 |
|
10.6 |
% |
|
|
Diluted earnings per share |
$ |
0.41 |
|
$ |
0.47 |
|
(12.2 |
%) |
$ |
0.44 |
|
(5.9 |
%) |
$ |
0.88 |
|
$ |
0.78 |
|
12.4 |
% |
|
|
Average shares outstanding |
|
6,244 |
|
|
6,198 |
|
|
6,053 |
|
|
6,227 |
|
|
6,038 |
|
|||||||
|
Average diluted shares |
|
6,522 |
|
|
6,473 |
|
|
6,419 |
|
|
6,505 |
|
|
6,409 |
|
|||||||
|
Performance Ratios |
||||||||||||||||||||||
|
Return on average assets |
|
1.24 |
% |
|
1.44 |
% |
|
1.38 |
% |
|
1.34 |
% |
|
1.26 |
% |
|||||||
|
Return on average common equity |
|
11.45 |
% |
|
13.58 |
% |
|
14.31 |
% |
|
12.51 |
% |
|
13.06 |
% |
|||||||
|
Net interest margin |
|
4.61 |
% |
|
4.64 |
% |
|
4.20 |
% |
|
4.63 |
% |
|
4.23 |
% |
|||||||
|
Cost of funds |
|
0.54 |
% |
|
0.52 |
% |
|
0.38 |
% |
|
0.53 |
% |
|
0.33 |
% |
|||||||
|
Efficiency ratio |
|
59.9 |
% |
|
57.3 |
% |
|
59.1 |
% |
|
58.6 |
% |
|
60.6 |
% |
|||||||
|
Average Balances |
||||||||||||||||||||||
|
Total assets |
|
873,108 |
|
|
864,060 |
|
|
822,750 |
|
|
868,609 |
|
|
808,674 |
|
|||||||
|
Earning assets |
|
839,730 |
|
|
831,305 |
|
|
795,498 |
|
|
835,541 |
|
|
781,899 |
|
|||||||
|
Total loans |
|
703,845 |
|
|
709,283 |
|
|
642,855 |
|
|
706,549 |
|
|
638,968 |
|
|||||||
|
Total deposits |
|
758,192 |
|
|
749,334 |
|
|
728,532 |
|
|
753,788 |
|
|
715,877 |
|
|||||||
|
Common equity |
|
94,880 |
|
|
91,346 |
|
|
79,177 |
|
|
93,123 |
|
|
77,891 |
|
|||||||
|
NM = Not Meaningful |
|
Condensed Balance Sheet (5 Quarter Data) |
|||||||||||||||
|
(Dollars in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
|
6/30/2019 |
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
||||||||||
|
|
|
|
|
|
|
||||||||||
|
Cash and due from banks |
|
13,389 |
|
|
18,021 |
|
|
7,804 |
|
|
9,041 |
|
|
8,842 |
|
|
Interest bearing due from banks |
|
48,013 |
|
|
102,859 |
|
|
67,877 |
|
|
78,598 |
|
|
130,412 |
|
|
Total cash and equivalents |
|
61,402 |
|
|
120,880 |
|
|
75,681 |
|
|
87,639 |
|
|
139,254 |
|
|
Investment securities |
|
54,743 |
|
|
56,255 |
|
|
57,925 |
|
|
59,282 |
|
|
41,326 |
|
|
Loans, net of fees |
|
698,073 |
|
|
705,114 |
|
|
710,939 |
|
|
668,934 |
|
|
653,226 |
|
|
Allowance for loan losses |
|
(7,463 |
) |
|
(7,463 |
) |
|
(7,439 |
) |
|
(7,423 |
) |
|
(7,325 |
) |
|
Net loans |
|
690,610 |
|
|
697,651 |
|
|
703,500 |
|
|
661,511 |
|
|
645,901 |
|
|
Premises and equipment, net |
|
2,063 |
|
|
2,175 |
|
|
2,287 |
|
|
2,371 |
|
|
2,464 |
|
|
Other assets and interest receivable |
|
31,669 |
|
|
29,098 |
|
|
23,042 |
|
|
23,366 |
|
|
24,373 |
|
|
Total assets |
|
840,487 |
|
|
906,059 |
|
|
862,435 |
|
|
834,169 |
|
|
853,318 |
|
|
|
|
|
|
|
|
||||||||||
|
Non-interest-bearing demand |
|
307,648 |
|
|
366,381 |
|
|
319,358 |
|
|
315,493 |
|
|
298,354 |
|
|
Interest bearing transaction |
|
94,385 |
|
|
119,282 |
|
|
116,120 |
|
|
101,712 |
|
|
108,338 |
|
|
Money market and savings accounts |
|
268,411 |
|
|
243,680 |
|
|
285,245 |
|
|
278,867 |
|
|
302,077 |
|
|
Time deposits |
|
51,916 |
|
|
64,363 |
|
|
37,995 |
|
|
38,400 |
|
|
48,698 |
|
|
Total deposits |
|
722,360 |
|
|
793,706 |
|
|
758,718 |
|
|
734,472 |
|
|
757,467 |
|
|
Borrowings |
|
10,007 |
|
|
9,875 |
|
|
9,865 |
|
|
9,928 |
|
|
9,961 |
|
|
Other liabilities |
|
12,155 |
|
|
9,859 |
|
|
5,182 |
|
|
5,014 |
|
|
5,152 |
|
|
Total liabilities |
|
744,522 |
|
|
813,440 |
|
|
773,765 |
|
|
749,414 |
|
|
772,580 |
|
|
|
|
|
|
|
|
||||||||||
|
Common stock |
|
69,109 |
|
|
68,728 |
|
|
67,978 |
|
|
67,783 |
|
|
66,995 |
|
|
Retained earnings |
|
26,447 |
|
|
23,752 |
|
|
20,693 |
|
|
17,401 |
|
|
13,908 |
|
|
Other comprehensive income |
|
409 |
|
|
139 |
|
|
(1 |
) |
|
(429 |
) |
|
(165 |
) |
|
Total shareholder’s equity |
|
95,965 |
|
|
92,619 |
|
|
88,670 |
|
|
84,755 |
|
|
80,738 |
|
|
Total liabilities and equity |
|
840,487 |
|
|
906,059 |
|
|
862,435 |
|
|
834,169 |
|
|
853,318 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
Book value per share |
|
|
|
|
|
||||||||||
|
Book value per share |
$ |
15.16 |
|
$ |
14.67 |
|
$ |
14.21 |
|
$ |
13.59 |
|
$ |
13.06 |
|
|
Total shares outstanding EOP |
|
6,331 |
|
|
6,311 |
|
|
6,241 |
|
|
6,238 |
|
|
6,184 |
|
|
|
|
|
|
|
|
||||||||||
|
Capital Ratios |
|
|
|
|
|
||||||||||
|
Tier 1 leverage ratio |
|
10.9 |
% |
|
10.7 |
% |
|
10.3 |
% |
|
9.9 |
% |
|
9.8 |
% |
|
Common equity tier 1 capital ratio |
|
10.9 |
% |
|
10.5 |
% |
|
10.0 |
% |
|
10.2 |
% |
|
9.9 |
% |
|
Tier 1 risk-based capital ratio |
|
10.9 |
% |
|
10.5 |
% |
|
10.0 |
% |
|
10.2 |
% |
|
9.9 |
% |
|
Total risk-based capital ratio |
|
13.0 |
% |
|
12.5 |
% |
|
12.1 |
% |
|
12.3 |
% |
|
12.1 |
% |
|
Condensed Statement of Income (5 Quarter Data) |
|||||||||||||||
|
(Dollars in thousands, except per share amounts, unaudited) |
|||||||||||||||
|
For the three months ended |
|||||||||||||||
|
6/30/2019 |
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
|||||||||||
|
Interest income |
|
10,698 |
|
|
10,495 |
|
|
10,323 |
|
|
9,866 |
|
|
9,042 |
|
|
Interest expense |
|
1,037 |
|
|
985 |
|
|
812 |
|
|
752 |
|
|
707 |
|
|
Net interest income |
|
9,661 |
|
|
9,510 |
|
|
9,511 |
|
|
9,114 |
|
|
8,335 |
|
|
Provision for loan loss |
|
– |
|
|
24 |
|
|
16 |
|
|
98 |
|
|
– |
|
|
Net interest income after provision |
|
9,661 |
|
|
9,486 |
|
|
9,495 |
|
|
9,016 |
|
|
8,335 |
|
|
Other income |
|
278 |
|
|
311 |
|
|
315 |
|
|
279 |
|
|
309 |
|
|
Compensation and benefit expenses |
|
3,274 |
|
|
3,678 |
|
|
3,335 |
|
|
3,301 |
|
|
3,254 |
|
|
Occupancy and equipment expenses |
|
665 |
|
|
628 |
|
|
606 |
|
|
625 |
|
|
602 |
|
|
Data processing |
|
438 |
|
|
445 |
|
|
420 |
|
|
388 |
|
|
400 |
|
|
Merger expense |
|
726 |
|
|
33 |
|
|
– |
|
|
– |
|
|
– |
|
|
Professional and legal |
|
265 |
|
|
176 |
|
|
161 |
|
|
145 |
|
|
278 |
|
|
Other operating expenses |
|
583 |
|
|
665 |
|
|
503 |
|
|
473 |
|
|
571 |
|
|
Total operating expenses |
|
5,951 |
|
|
5,625 |
|
|
5,025 |
|
|
4,932 |
|
|
5,105 |
|
|
Net income before taxes |
|
3,988 |
|
|
4,172 |
|
|
4,785 |
|
|
4,363 |
|
|
3,539 |
|
|
Income taxes |
|
1,283 |
|
|
1,113 |
|
|
1,503 |
|
|
870 |
|
|
710 |
|
|
Net income |
|
2,705 |
|
|
3,059 |
|
|
3,282 |
|
|
3,493 |
|
|
2,829 |
|
|
Earnings Per Share |
|||||||||||||||
|
Basic earnings per share |
$ |
0.43 |
|
$ |
0.49 |
|
$ |
0.53 |
|
$ |
0.56 |
|
$ |
0.46 |
|
|
Diluted earnings per share |
$ |
0.41 |
|
$ |
0.47 |
|
$ |
0.50 |
|
$ |
0.53 |
|
$ |
0.44 |
|
|
Average shares outstanding |
|
6,244 |
|
|
6,198 |
|
|
6,160 |
|
|
6,132 |
|
|
6,053 |
|
|
Average diluted shares |
|
6,522 |
|
|
6,473 |
|
|
6,458 |
|
|
6,454 |
|
|
6,419 |
|
|
Performance Ratios |
|||||||||||||||
|
Return on average assets |
|
1.24 |
% |
|
1.44 |
% |
|
1.52 |
% |
|
1.60 |
% |
|
1.38 |
% |
|
Return on average common equity |
|
11.45 |
% |
|
13.58 |
% |
|
14.95 |
% |
|
16.64 |
% |
|
14.31 |
% |
|
Net interest margin |
|
4.61 |
% |
|
4.64 |
% |
|
4.55 |
% |
|
4.32 |
% |
|
4.20 |
% |
|
Cost of funds |
|
0.54 |
% |
|
0.52 |
% |
|
0.42 |
% |
|
0.39 |
% |
|
0.38 |
% |
|
Efficiency ratio |
|
59.9 |
% |
|
57.3 |
% |
|
51.2 |
% |
|
52.5 |
% |
|
59.1 |
% |
|
Average Balances |
|||||||||||||||
|
Total assets |
|
873,108 |
|
|
864,060 |
|
|
857,104 |
|
|
864,605 |
|
|
822,750 |
|
|
Earning assets |
|
839,730 |
|
|
831,305 |
|
|
829,811 |
|
|
836,348 |
|
|
795,498 |
|
|
Total loans |
|
703,845 |
|
|
709,283 |
|
|
675,569 |
|
|
665,655 |
|
|
642,855 |
|
|
Total deposits |
|
758,192 |
|
|
749,334 |
|
|
754,400 |
|
|
763,647 |
|
|
728,532 |
|
|
Common equity |
94,880 |
91,346 |
|
|
87,084 |
|
|
83,346 |
|
79,177 |
|||||
|
Loans (5 Quarter Data) (Dollars in Thousands, unaudited) |
||||||||||
|
6/30/2019 |
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
||||||
|
Commercial real estate |
330,747 |
|
321,407 |
|
328,667 |
|
304,123 |
|
303,444 |
|
|
Land and construction |
41,403 |
|
44,188 |
|
56,179 |
|
55,185 |
|
53,771 |
|
|
Commercial |
190,626 |
|
190,307 |
|
176,179 |
|
177,747 |
|
180,783 |
|
|
Personal |
20,723 |
|
31,429 |
|
34,738 |
|
22,505 |
|
13,709 |
|
|
Residential |
34,003 |
|
39,507 |
|
38,357 |
|
36,552 |
|
31,011 |
|
|
Multifamily |
81,557 |
|
79,260 |
|
77,928 |
|
73,839 |
|
71,505 |
|
|
Deferred loan fees |
(986 |
) |
(984 |
) |
(1,109 |
) |
(1,017 |
) |
(997 |
) |
|
Loans |
698,073 |
|
705,114 |
|
710,939 |
|
668,934 |
|
653,226 |
|
|
Allowance for loan losses |
(7,463 |
) |
(7,463 |
) |
(7,439 |
) |
(7,423 |
) |
(7,325 |
) |
|
Net loans |
690,610 |
|
697,651 |
|
703,500 |
|
661,511 |
|
645,901 |
|
|
Non-Performing Assets (5 Quarter Data) (Dollars in Thousands, unaudited) |
||||||||||
|
|
6/30/2019 |
3/31/2019 |
12/31/2018 |
9/30/2018 |
6/30/2018 |
|||||
|
|
|
|
|
|
|
|||||
|
Non-Accrual Loans |
3,746 |
|
3,746 |
|
3,746 |
|
– |
|
– |
|
|
Non-Performing Loans (NPL) |
3,746 |
|
3,746 |
|
3,746 |
|
– |
|
– |
|
|
Other Real Estate Owned |
– |
|
– |
|
– |
|
– |
|
– |
|
|
Non-Performing Assets (NPA) |
3,746 |
|
3,746 |
|
3,746 |
|
– |
|
– |
|
|
90+ Days Delinquent |
– |
|
– |
|
– |
|
– |
|
– |
|
|
NPAs & 90 Day Delinquent |
3,746 |
|
3,746 |
|
3,746 |
|
– |
|
– |
|
|
Quarterly Net Charge-off’s |
– |
|
– |
|
– |
|
– |
|
– |
|
|
NPAs / Assets % |
0.45 |
% |
0.41 |
% |
0.43 |
% |
0.00 |
% |
0.00 |
% |
|
NPAs & 90 Day / Assets % |
0.45 |
% |
0.41 |
% |
0.43 |
% |
0.00 |
% |
0.00 |
% |
|
NPAs / Actual Loans and OREO % |
0.45 |
% |
0.41 |
% |
0.43 |
% |
0.00 |
% |
0.00 |
% |
|
Loan Loss Reserves / Loans (%) |
1.07 |
% |
1.06 |
% |
1.05 |
% |
1.11 |
% |
1.12 |
% |
| Net Interest Income (Quarterly Data) (Dollars in Thousands, unaudited) |
||||||||||||||||
|
|
|
For the Three Months Ended |
|
|||||||||||||
|
|
6/30/2019 |
|
3/31/2019 |
|
||||||||||||
|
|
|
|
|
Interest |
|
|
|
|
|
|
Interest |
|
|
|
||
|
|
Average |
|
Income / |
|
Average |
|
|
Average |
|
Income / |
|
Average |
|
|||
|
|
|
Balance |
|
Expense |
|
Rate |
|
|
Balance |
|
Expense |
|
Rate |
|
||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest-bearing deposits |
$ |
80,113 |
|
$ |
483 |
|
2.42 |
% |
$ |
64,868 |
|
$ |
389 |
|
2.43 |
% |
|
Federal Reserve and Federal Home Loan Bank stock |
5,560 |
|
|
80 |
|
5.79 |
|
|
4,897 |
|
|
81 |
|
6.71 |
|
|
|
Investment Securities |
|
50,212 |
|
|
408 |
|
3.26 |
|
|
52,257 |
|
|
409 |
|
3.18 |
|
|
Loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commercial |
|
195,386 |
|
|
2,989 |
|
6.14 |
|
|
180,631 |
|
|
2,739 |
|
6.15 |
|
|
Land and Construction |
|
42,537 |
|
|
715 |
|
6.74 |
|
|
53,729 |
|
|
889 |
|
6.71 |
|
|
Commercial Real Estate |
|
325,544 |
|
|
4,181 |
|
5.15 |
|
|
325,034 |
|
|
4,027 |
|
5.03 |
|
|
Residential |
|
34,456 |
|
|
530 |
|
6.16 |
|
|
38,349 |
|
|
586 |
|
6.20 |
|
|
Multifamily |
|
80,984 |
|
|
998 |
|
4.94 |
|
|
78,281 |
|
|
951 |
|
4.93 |
|
|
Personal |
|
24,938 |
|
|
314 |
|
5.06 |
|
|
33,259 |
|
|
424 |
|
5.16 |
|
|
Total Loans |
|
703,845 |
|
|
9,727 |
|
5.54 |
|
|
709,283 |
|
|
9,616 |
|
5.50 |
|
|
Total Earning Assets |
|
839,730 |
|
|
10,698 |
|
5.11 |
|
|
831,305 |
|
|
10,495 |
|
5.12 |
|
|
Allowance for loan losses |
|
(7,463 |
) |
|
|
|
|
|
|
(7,463 |
) |
|
|
|
|
|
|
Cash and cash equivalents |
|
10,766 |
|
|
|
|
|
|
|
10,760 |
|
|
|
|
|
|
|
Other assets |
|
30,075 |
|
|
|
|
|
|
|
29,458 |
|
|
|
|
|
|
|
Total Assets |
$ |
873,108 |
|
|
|
|
|
|
$ |
864,060 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest-bearing NOW deposits |
$ |
104,364 |
|
$ |
117 |
|
0.45 |
% |
$ |
110,416 |
|
$ |
105 |
|
0.38 |
% |
|
Money market deposits |
|
259,619 |
|
|
477 |
|
0.74 |
|
|
254,365 |
|
|
438 |
|
0.70 |
|
|
Savings deposits |
|
3,484 |
|
|
2 |
|
0.28 |
|
|
3,506 |
|
|
2 |
|
0.26 |
|
|
Certificates and other time deposits |
|
59,318 |
|
|
230 |
|
1.55 |
|
|
57,877 |
|
|
211 |
|
1.48 |
|
|
Total Interest-bearing Deposits |
|
426,785 |
|
|
826 |
|
0.78 |
|
|
426,164 |
|
|
756 |
|
0.72 |
|
|
Borrowings |
|
9,893 |
|
|
211 |
|
8.55 |
|
|
12,641 |
|
|
229 |
|
7.33 |
|
|
Total Interest-bearing Liabilities |
|
436,678 |
|
|
1,037 |
|
0.95 |
|
|
438,805 |
|
|
985 |
|
0.91 |
|
|
Noninterest-bearing deposits |
|
331,407 |
|
|
|
|
|
|
|
323,170 |
|
|
|
|
|
|
|
Other liabilities |
|
10,143 |
|
|
|
|
|
|
|
10,739 |
|
|
|
|
|
|
|
Total Liabilities |
|
778,228 |
|
|
|
|
|
|
|
772,714 |
|
|
|
|
|
|
|
Stockholders’ Equity |
|
94,880 |
|
|
|
|
|
|
|
91,346 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
873,108 |
|
|
|
|
|
|
$ |
864,060 |
|
|
|
|
|
|
|
Net Interest Income |
|
|
$ |
9,661 |
|
|
|
|
|
$ |
9,510 |
|
|
|
||
|
Net Interest Margin |
|
|
|
|
|
4.61 |
% |
|
|
|
|
|
4.64 |
% |
||
|
Cost of Funds |
|
|
|
|
|
0.54 |
% |
|
|
|
|
|
0.52 |
% |
||
|
Cost of Deposits |
|
|
|
|
|
0.44 |
% |
0.41 |
% |
|||||||
|
Net Interest Income (Annual Data) |
||||||||||||||||
|
For the Six Months Ended |
|
|||||||||||||||
|
6/30/2019 |
6/30/2018 |
|
||||||||||||||
|
Interest |
Interest |
|
||||||||||||||
|
Average |
Income / |
Average |
Average |
Income / |
Average |
|
||||||||||
|
Balance |
Expense |
Rate |
Balance |
Expense |
Rate |
|
||||||||||
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest-bearing deposits |
$ |
72,533 |
|
$ |
872 |
|
2.42 |
% |
$ |
128,478 |
|
$ |
1,071 |
|
1.68 |
% |
|
Federal Reserve and Federal Home Loan Bank stock |
5,230 |
|
|
161 |
|
6.22 |
|
|
4,731 |
|
|
153 |
|
6.52 |
|
|
|
Investment Securities |
|
51,229 |
|
|
817 |
|
3.22 |
|
|
9,722 |
|
|
108 |
|
2.25 |
|
|
Loans: (2) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Commercial |
|
188,049 |
|
|
5,729 |
|
6.14 |
|
|
194,728 |
|
|
5,189 |
|
5.37 |
|
|
Land and Construction |
|
48,102 |
|
|
1,603 |
|
6.72 |
|
|
49,329 |
|
|
1,588 |
|
6.49 |
|
|
Commercial Real Estate |
|
325,291 |
|
|
8,209 |
|
5.09 |
|
|
283,420 |
|
|
6,862 |
|
4.88 |
|
|
Residential |
|
36,392 |
|
|
1,115 |
|
6.18 |
|
|
31,941 |
|
|
838 |
|
5.29 |
|
|
Multifamily |
|
79,640 |
|
|
1,949 |
|
4.94 |
|
|
64,993 |
|
|
1,484 |
|
4.60 |
|
|
Personal |
|
29,075 |
|
|
738 |
|
5.12 |
|
|
14,557 |
|
|
319 |
|
4.41 |
|
|
Total Loans |
|
706,549 |
|
|
19,343 |
|
5.52 |
|
|
638,968 |
|
|
16,280 |
|
5.14 |
|
|
Total Earning Assets |
|
835,541 |
|
|
21,193 |
|
5.12 |
|
|
781,899 |
|
|
17,612 |
|
4.54 |
|
|
Allowance for loan losses |
|
(7,463 |
) |
|
|
|
|
|
|
(7,272 |
) |
|
|
|
|
|
|
Cash and cash equivalents |
|
10,763 |
|
|
|
|
|
|
|
9,418 |
|
|
|
|
|
|
|
Other assets |
|
29,768 |
|
|
|
|
|
|
|
24,629 |
|
|
|
|
|
|
|
Total Assets |
$ |
868,609 |
|
|
|
|
|
|
$ |
808,674 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest-bearing deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Interest-bearing NOW deposits |
$ |
107,373 |
|
$ |
222 |
|
0.42 |
% |
$ |
109,885 |
|
$ |
108 |
|
0.20 |
% |
|
Money market deposits |
|
257,006 |
|
|
915 |
|
0.72 |
|
|
247,683 |
|
|
444 |
|
0.36 |
|
|
Savings deposits |
|
3,495 |
|
|
5 |
|
0.27 |
|
|
3,829 |
|
|
4 |
|
0.20 |
|
|
Certificates and other time deposits |
|
58,602 |
|
|
441 |
|
1.52 |
|
|
49,978 |
|
|
216 |
|
0.88 |
|
|
Total Interest-bearing Deposits |
|
426,476 |
|
|
1,583 |
|
0.75 |
|
|
411,375 |
|
|
772 |
|
0.38 |
|
|
Borrowings |
|
11,260 |
|
|
439 |
|
7.85 |
|
|
10,074 |
|
|
422 |
|
8.45 |
|
|
Total Interest-bearing Liabilities |
|
437,736 |
|
|
2,022 |
|
0.93 |
|
|
421,449 |
|
|
1,194 |
|
0.57 |
|
|
Noninterest-bearing deposits |
|
327,312 |
|
|
|
|
|
|
|
304,502 |
|
|
|
|
|
|
|
Other liabilities |
|
10,438 |
|
|
|
|
|
|
|
4,832 |
|
|
|
|
|
|
|
Total Liabilities |
|
775,486 |
|
|
|
|
|
|
|
730,783 |
|
|
|
|
|
|
|
Stockholders’ Equity |
|
93,123 |
|
|
|
|
|
|
|
77,891 |
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity |
$ |
868,609 |
|
|
|
|
|
|
$ |
808,674 |
|
|
|
|
|
|
|
Net Interest Income |
|
|
$ |
19,171 |
|
|
|
|
|
$ |
16,418 |
|
|
|
||
|
Net Interest Margin |
|
|
|
|
|
4.63 |
% |
|
|
|
|
|
4.23 |
% |
||
|
Cost of Funds |
|
|
|
|
|
0.53 |
% |
|
|
|
|
|
0.33 |
% |
||
|
Cost of Deposits |
|
|
|
|
|
0.42 |
% |
0.22 |
% |
|||||||
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
Steve Heitel, Chief Executive Officer
415.229.8428
Ed Murphy, EVP/CFO
415.229.8403
MEDIA:
Annette Gelinas
SVP/Marketing Director
925.287.7881 (o) / 925.787.2956 (c)
[email protected]
