Presidio Bank (OTCBB: PDOB), a Bay Area business bank, today reported unaudited results for the fourth quarter and year ended December 31, 2013 with net income for the year of $2.4 million, an 89 % increase over the $1.3 million achieved in 2012. For the fourth quarter, net income totaled $739 thousand, up $11 thousand from the third quarter 2013 and up $735 thousand over the fourth quarter of 2012. The Bank also ended the year with record high levels of loans, deposits and total assets.

"Presidio Bank enjoyed a breakout year in 2013 with solid growth in loans and deposits, which combined with good expense control and strong credit quality resulted in a disproportionate increase in profitability," said Steve Heitel, Presidio Bank President & CEO. "We are entering 2014 with good growth momentum, which we plan to augment with our recently announced San Mateo expansion."

Financial Highlights

  • Total Loans outstanding grew by $22 million or 6% over the quarter ended September 30, 2013 and by $59 million or 19% over the year ended December 31, 2012.
  • Total Deposits increased by $23 million or 6% from the quarter ended September 30, 2013 and by $40 million from the year ended December 31, 2012. At year end 2013, non-interest bearing demand deposits represented a healthy 34% of total deposits.
  • Net interest income of $4.2 million in the fourth quarter was up 2% over the third quarter of 2013. For the year, net interest income totaled $16 million, up 14% from 2012.
  • Operating Expenses increased 2% from the third quarter of 2013 but decreased 13% from the fourth quarter of 2012. As disclosed at the time, the Bank incurred approximately $350 thousand in non-recurring expenses in the fourth quarter of 2012. For the full year 2013, operating expenses increased 1.5% from 2013 as compared to growth in total revenue of 14% in the same period.
  • Net Income applicable to common shareholders was $622 thousand for the fourth quarter of 2013, an increase of 6% over the third quarter of 2013. For the full year, net income applicable to common shareholders totaled $1.9 million, an increase of 160% over 2012.
  • Diluted earnings per common share were $0.15 for the quarter compared to $0.14 in the third quarter of 2013. Diluted earnings per common share were 0.45 for 2013 compared to $0.18 for 2012.
  • Book value per share increased to $8.99 per share as of December 31, 2013 from $8.74 per share at September 30, 2013 and $8.46 per share at December 31, 2012.

"I am extremely pleased with the franchise we are building," said Presidio Bank Chairman and Founder, Jim Woolwine. "With successful offices in four key business hubs and now plans for a fifth in San Mateo, we continue to execute our original plan to be a service driven business bank that works with high quality clients throughout the Bay Area."

 

4th Quarter 2013 Financial Results

(Dollars in thousands, except per share amounts, unaudited)

 

 

Condensed Balance Sheet

                      
 
12/31/2013 9/30/2013 Change 12/31/2012 Change
 
 
Cash and due from banks 5,694 5,557 2.5 % 5,105 11.5 %
Interest bearing due from banks   49,545         51,284       -3.4 %       71,489       -30.7 %
Total cash and equivalents 55,239 56,841 -2.8 % 76,594 -27.9 %
Investment securities 14,230 14,218 0.1 % 13,445 5.8 %
Loans, net of fees 373,421 351,470 6.2 % 313,992 18.9 %
Allowance for loan losses   (4,867 )       (4,865 )     0.0 %       (4,945 )     -1.6 %
Net loans 368,554 346,605 6.3 % 309,047 19.3 %
Premises and equipment, net 932 909 2.6 % 1,221 -23.6 %
Other assets and interest receivable   4,863         4,628       5.1 %       5,164       -5.8 %
Total assets 443,818 423,202 4.9 % 405,471 9.5 %
 
Non-interest-bearing demand 132,546 125,452 5.7 % 131,438 0.8 %
Interest bearing transaction 71,760 65,749 9.1 % 53,780 33.4 %
Money market and savings accounts 153,180 141,198 8.5 % 129,238 18.5 %
Time deposits   39,672         41,108       -3.5 %       42,918       -7.6 %
Total deposits 397,158 373,507 6.3 % 357,374 11.1 %
Other liabilities   2,376         2,202       7.9 %       2,209       7.5 %
Total liabilities 399,534 375,709 6.3 % 359,583 11.1 %
 
Preferred stock 6,811 11,051 -38.4 % 11,002 -38.1 %
Common stock 43,540 43,333 0.5 % 42,809 1.7 %
Retained earnings (5,898 ) (6,683 ) 11.7 % (7,905 ) 25.4 %
Other comprehensive income (169 ) (208 ) 18.8 % (18 )
Total shareholder's equity   44,284         47,493       -6.8 %       45,889       -3.5 %
Total liabilities and equity   443,818         423,202       4.9 %       405,471       9.5 %
 
Book value per share
Book value per share $ 8.99 $ 8.74 $ 8.46
Common shares outstanding 4,170 4,170 4,123
 
Capital Ratios
Tier 1 leverage ratio 9.9 % 11.1 % 10.8 %
Tier 1 risk-based capital ratio 10.3 % 11.9 % 13.7 %
Total risk-based capital ratio 11.6 % 13.2 % 15.0 %
Tangible common risk-based ratio 10.4 % 11.8 % 12.8 %
 
 
   

Condensed Statement of Income

 
For the three months ended   For the twelve months ended
  12/31/2013     9/30/2013    

Change

Fav./ (Unfav.)

     12/31/2012    

Change

Fav./ (Unfav.)

       12/31/2013     12/31/2012    

Change

Fav./ (Unfav.)

       
Interest income 4,388 4,317 1.6 % 3,683 19.1 % 16,753 14,834 12.9 %
Interest expense   200     209     4.3 %     210     4.8 %   807     880     8.3 %
Net interest income 4,188 4,108 1.9 % 3,473 20.6 % 15,946 13,954 14.3 %
Provision for loan loss   -     -     NM       -     NM     -     -     NM  
Net interest income after provision 4,188 4,108 1.9 % 3,473 20.6 % 15,946 13,954 14.3 %
 
Other income 151 146 3.7 % 161 (6.2 %) 571 527 8.3 %
 
Compensation and benefit expenses 1,887 1,794 (5.2 %) 2,186 13.7 % 7,349 7,516 2.2 %
Occupancy and equipment expenses 382 383 0.2 % 457 16.4 % 1,535 1,662 7.6 %
Data processing 258 249 (3.7 %) 216 (19.4 %) 1,006 860 (17.0 %)
Professional and legal 107 105 (2.3 %) 118 9.3 % 556 381 (45.9 %)
Other operating expenses   452     491     7.9 %     576     21.5 %   1,941     1,788     (8.6 %)
Total operating expenses   3,086     3,021     (2.2 %)     3,553     13.1 %   12,387     12,207     (1.5 %)
Net income before taxes 1,253 1,233 1.6 % 81 1446.9 % 4,130 2,274 81.6 %
Income taxes   514     506     (1.7 %)     77     (567.5 %)   1,693     981     (72.6 %)
Net income 739 728 1.6 % 4 NM 2,437 1,293 88.5 %
Preferred dividends   117     142     17.8 %     142     17.8 %   547     569     3.9 %
Net income to common 622 585 6.3 % (138 ) (549.7 %) 1,890 724 161.0 %
 
Earnings Per Share
Basic earnings per share $ 0.15 $ 0.14 $ (0.03 ) $ 0.46 $ 0.18
Diluted earnings per share $ 0.15 $ 0.14 $ (0.03 ) $ 0.45 $ 0.18
Average shares outstanding 4,137 4,133 4,124 4,119 4,118
Average diluted shares 4,182 4,157 4,128 4,156 4,120
 
Performance Ratios
Return on average assets 0.66 % 0.68 % 0.00 % 0.58 % 0.33 %
Return on average common equity 6.63 % 6.40 % -1.56 % 5.22 % 2.09 %
Net interest margin 3.80 % 3.88 % 3.70 % 3.86 % 3.62 %
Cost of funds 0.20 % 0.22 % 0.24 % 0.22 % 0.26 %
Efficiency ratio 71.1 % 71.0 % 97.8 % 75.0 % 84.3 %
 
Average Balances
Total assets 444,664 427,409 413,648 419,865 391,344
Earning assets 437,002 420,255 406,666 412,817 384,464
Total loans 356,992 342,378 285,432 335,535 263,347
Total deposits 395,489 377,918 365,550 370,914 344,101
Common equity 37,239 36,291 35,200 36,174 34,694
 

NM = Not Meaningful

 

About Presidio Bank

Presidio Bank provides business banking services to small and mid-size businesses, including professional service firms, real estate developers and investors, and not-for-profit organizations, and to their owners who desire personalized, responsive service with access to local decision makers. Presidio Bank offers clients the resources of a large bank combined with the personalized services of a neighborhood bank. Presidio Bank is headquartered in San Francisco, California and currently operates four banking offices in San Francisco, Walnut Creek, San Rafael 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.

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