Pacific Crest Capital, Inc. Reports Third Quarter 2001 Diluted EPS of $0.50, No Non-Performing Assets at Quarter-End, and Award of SBA ``Preferred Lender'' Status in Oregon.Business Editors AGOURA HILLS, Calif.--(BUSINESS WIRE)--Oct. 16, 2001 Pacific Crest Capital, Inc. (Nasdaq:PCCI PCCI Philippine Chamber of Commerce and Industry PCCI Pinkerton Computer Consultants, Inc. PCCI Process Capability, Control and Improvement (US DoD contract) PCCI Premixed Charge Compression Ignition ) today reported that net income for the third quarter ended September September: see month. 30, 2001, was $1,320,000, or $0.50 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis, compared to $1,337,000, or $0.51 per share for the third quarter of 2000. For the nine-month period ended September 30, 2001, net income was $4,019,000, or $1.51 per share on a diluted basis, compared to $3,961,000, or $1.51 per share for the comparable nine-month period in 2000. The annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average common equity was 14.29% for the three-month period ended September 30, 2001, and 14.82% for the nine-month period ended September 30, 2001. The Company noted that as of September 30, 2001, the Company had no non-accrual loans and no assets classified as non-performing. Lyle Lyle may refer to:
A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. . On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, loan recoveries exceeded loan charge-offs and the Company has reported no non-performing assets at quarter-end for five of the last six quarters. While the regional economy has weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. somewhat, many of the Company's borrowers have
variable rate loans and the year-to-date drop in the prime interest rate
has strengthened the debt service capabilities of many of our
borrowers."The Company reported that new loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. for the third quarter of 2001 were $35.9 million and that total loans, net of deferred fees, increased by $25.8 million to $424.8 million during the quarter. Gonzalo Gonzalo Prospero’s “true preserver and a loyal sir.” [Br. Lit.: The Tempest] See : Loyalty Fernandez, Executive Vice President, stated, "New loan volume was strong in the third quarter and remains strong as we enter the fourth quarter." He added, "A significant factor in the strong loan demand in the current period is the steep yield curve, which makes it more attractive for borrowers to utilize Pacific Crest Bank's flexible variable rate loan programs versus the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. fixed rate programs of life insurance companies and loan conduits." Commenting on the Company's SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government lending program, Kirsten Kirsten may refer to: This name may be spelled: Kirsten, Kiersten, Kearston, and Kearsten. People with the surname Kirsten:
Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. during the third quarter 2001. `Preferred Lender' status is the highest lender LENDER, contracts. He from whom a thing is borrowed. 2. The contract of loan confers rights, and imposes duties on the lender. 1. The lender has the right to revoke the loan at his mere pleasure; 9 Cowen, R. 687; 8 Johns. Rep. 432; 1 T. R. 480; 2 Campb. Rep. designation DESIGNATION, wills. The expression used by a testator, instead of the name of the person or the thing he is desirous to name; for example, a legacy to. the eldest son of such a person, would be a designation of the legatee. Vide 1 Rop. Leg. ch. 2. 2. awarded by the SBA. Pacific Crest Bank was already a `Preferred Lender' in all of the Southern California Southern California, also colloquially known as SoCal, is the southern portion of the U.S. state of California. Centered on the cities of Los Angeles and San Diego, Southern California is home to nearly 24 million people and is the nation's second most populated region, geographic geographic /geo·graph·ic/ (je?o-graf´ik) in pathology, of or referring to a pattern that is well demarcated, resembling outlines on a map. geographic pertaining to geography. areas from Santa Barbara Santa Barbara (săn'tə bär`brə, –bərə), city (1990 pop. 85,571), seat of Santa Barbara co., S Calif., on the Pacific Ocean; inc. 1850. to San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , so we are very pleased to receive this recognition in Oregon." Ms. Hakes added, "In the third quarter of 2001, SBA 7(a) and 504 new loan originations totaled $7.9 million, another strong quarter for SBA lending following Pacific Crest Bank's record second quarter of $8.9 million. Also, for the San Diego, Riverside Riverside. 1 City (1990 pop. 226,505), seat of Riverside co., S Calif.; inc. 1883. One of the fastest growing U.S. cities in the late 20th cent., it is famous for its orange industry. , San Bernardino San Bernardino, city, United States San Bernardino (săn bûr'nədē`nō), city (1990 pop. 164,164), seat of San Bernardino co., S Calif., at the foot of the San Bernardino Mts.; inc. 1854. and Orange County areas, Pacific Crest Bank's SBA 504 loan Purpose The Small Business Administration (SBA) 504 loan program was created to help small to mid-sized business owners acquire commercial property without the financial hassles. volume ranked fourth among all lenders in these areas for the SBA for the fiscal year ended September 30, 2001, just behind Wells Fargo Wells Fargo armored carriers of bullion. [Am. Hist.: Brewer Dictionary, 1147] See : Protectiveness Wells Fargo company that handled express service to western states; often robbed. [Am. Hist. Bank and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. ." Discussing financial results, Robert Robert, Henry Martyn 1837-1923. American army engineer and parliamentary authority. He designed the defenses for Washington, D.C., during the Civil War and later wrote Robert's Rules of Order (1876). Noun 1. J. Dennen, Chief Financial Officer, stated, "Pacific Crest Bank's Tier I risk-based capital ratio Risk-based capital ratio Bank requirement that there be a minimum ratio of estimated total capital to estimated risk-weighted asset. was 11.89% at September 30, 2001, or almost double the 6.00% level necessary to be `well capitalized' under federal banking regulations." He added, "The Company's net interest margin rose to 3.48% for the third quarter of 2001, compared to 2.73% for the same quarter a year ago and 3.27% for the immediately preceding quarter. Much of this increase is attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to the exercised calls of the Company's U.S. agency callable bond Callable Bond A bond that can be redeemed by the issuer prior to its maturity. Usually a premium is paid to the bond owner when the bond is called. Also known as a "redeemable bond". Notes: The main cause of a call is a decline in interest rates. portfolio, which had a lower yield than the Company's loan portfolio." Mr. Dennen added, "During the third quarter of 2001, the Company's remaining $79.2 million in U.S. agency callable bonds yielding an average of 6.55% were called. The proceeds from these called securities were primarily used to reduce $30.0 million in State of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). borrowings costing 3.62%, fund loan growth, and invest in short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. securities purchased under resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. agreements (`repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. agreements'). The $33.3 million balance of these repurchase agreements Repurchase agreement An agreement with a commitment by the seller (dealer) to buy a security back from the purchaser (customer) at a specified price at a designated future date. at September 30, 2001 have a yield similar to the Fed Funds fed funds See federal funds. target rate, which is currently 2.50%. The use of $79.2 million in cash proceeds from callable bonds yielding 6.55% to reduce low cost debt and fund lower yielding repurchase agreements will have a negative effect on fourth quarter 2001 net interest income. However, that negative effect should become positive in early 2002 as these repurchase agreements are deployed to fund anticipated loan growth during the fourth quarter of 2001 and reduce high cost liabilities that mature in 2002." The Company also reported that it repurchased 20,000 shares of its common stock during the third quarter of 2001 and 74,500 shares during the nine months ended September 30, 2001. Tangible Possessing a physical form that can be touched or felt. Tangible refers to that which can be seen, weighed, measured, or apprehended by the senses. A tangible object is something that is real and substantial. An automobile is an example of tangible Personal Property. book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: rose to $15.41 at September 30, 2001, compared to $14.81 at June June: see month. 30, 2001 and $13.49 at December December: see month. 31, 2000. The Company previously reported that it declared de·clare v. de·clared, de·clar·ing, de·clares v.tr. 1. To make known formally or officially. See Synonyms at announce. 2. To state emphatically or authoritatively; affirm. 3. a third quarter cash dividend of $0.08 per common share to shareholders of record as of September 4, 2001 (paid on September 17, 2001). Discussing the Company's current opportunities to improve profitability, Gary Gary, city (1990 pop. 116,646), Lake co., NW Ind., a port of entry on Lake Michigan; inc. 1909. Gary was founded by the U.S. Steel Corporation, which purchased the land in 1905 and landscaped it for a city. Wehrle, Chief Executive Officer, commented, "The planned major reduction in the securities portfolio during 2001 and the sharpest drop in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. in many years has resulted in flat year-to-date diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , but postures the Company very well to increase earnings next year if short-term interest rates stay low. The major reasons for our optimism Optimism See also Hope. Bontemps, Roger personification of cheery contentment. [Fr. Lit.: “Roger Bontemps” in Walsh Modern, 66] Candide beset by inconceivable misfortunes, hero indifferently shrugs them off. [Fr. about 2002 earnings growth is the strong current loan growth, the potential to sharply downward reprice a large amount of maturing liabilities maturing liability A debt that is to be paid within a short period of time. throughout 2002 if interest rates stay low, our strong capital position, and excellent asset quality. We are also encouraged by the progress of our SBA program." Mr. Wehrle added, "The Company has $100 million in unused borrowing availability with the Federal Home Loan Bank, and this new funding source will enable us to borrow Borrow To obtain or receive money on loan with the promise or understanding that it will be repaid. two to five year term funds at what will probably be very low interest rates, should short-term rates stay low for the next two quarters. This term borrowing would also result in a balance sheet that is less interest rate sensitive." Commenting on the 2001 earnings guidance provided last quarter, Mr. Wehrle stated, "Despite the fact that federal agencies exercised calls on $79.2 million of our U.S. agency callable bonds during the third quarter of 2001, we remain very comfortable with the previously announced earnings guidance of diluted earnings per share of $1.85 to $2.00 for the full year of 2001." The estimated diluted earning per share Noun 1. earning per share - the portion of a company's profit allocated to each outstanding share of common stock net income, net profit, profit, profits, earnings, lucre, net - the excess of revenues over outlays in a given period of time (including depreciation range is based on core earnings and does not account for any contingent Fortuitous; dependent upon the possible occurrence of a future event, the existence of which is not assured. The word contingent denotes that there is no present interest or right but only a conditional one which will become effective upon the happening of the or non-recurring expense items that could occur and are incidental Contingent upon or pertaining to something that is more important; that which is necessary, appertaining to, or depending upon another known as the principal. Under Workers' Compensation statutes, a risk is deemed incidental to employment when it is related to whatever a to the Company's business. Mr. Wehrle added, "Over the five-year period from 1996 through 2000, the Company's compounded annual growth rate for diluted earnings per share was 23.1% (exclusive of tax credits in 1995). We look forward to a good year in 2002." Mr. Wehrle discussed the recent tragedies in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Washington Washington, town, England Washington, town (1991 pop. 48,856), Sunderland metropolitan district, NE England. Washington was designated one of the new towns in 1964 to alleviate overpopulation in the Tyneside-Wearside area. D.C. and Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . "Two investment banking firms that follow Pacific Crest and make a market in Pacific Crest's common stock, Sandler Sandler is the surname of:
Grief Adonais Shelley’s elegy for John Keats. [Br. Lit.: “Adonais” in Benét, 10] Aedon changed to nightingale for murdering son; her song funereal. [Gk. , helping families of co-workers and dedicating themselves to rebuilding their firms. We will continue our relationship with these two great companies and will never forget the wonderful friends we have lost." Pacific Crest Capital, Inc. is a bank holding Company regulated reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. by the Federal Reserve Board that offers specialized spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. lending and deposit programs through its FDIC-insured California state chartered commercial bank, Pacific Crest Bank. For over 25 years, Pacific Crest Bank has specialized as a business bank providing fast and flexible financing to California's small businesses, entrepreneurs, and investors. Products offered include customized commercial real estate loans, Small Business Administration 7(a) and 504 loan programs, and specialized FDIC-insured savings and checking account programs. Pacific Crest Bank is an SBA "Preferred Lender" in the entire Southern California region from Santa Barbara to San Diego and in the state of Oregon. Pacific Crest Bank is headquartered in Agoura Hills, California For the unincorporated community, see . Agoura Hills is a city (incorporated in 1982) in Los Angeles County, California, and has the ZIP code 91301. The population was 20,537 at the 2000 census. This city on the Ventura Freeway (U.S. , and operates three California full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. branches located in Beverly Hills Beverly Hills, city (1990 pop. 31,971), Los Angeles co., S Calif., completely surrounded by the city of Los Angeles; inc. 1914. The largely residential city is home to many motion-picture and television personalities. , Encino, and San Diego, and loan production offices throughout Southern California and in Oregon. Previously released Company press releases, reports filed with the Securities and Exchange Commission, and other information is on the Company's Web page on the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://paccrest.com. Certain matters discussed in this news release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. under Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These forward-looking statements relate to, among other things, the estimated diluted earnings per share range for 2001 and prospects for 2002. Forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by the forward-looking statements. These risks include, but are not limited to, general economic conditions nationally and in California, unanticipated credit losses in the Company's loan portfolio, the impact of the California energy shortage and related energy price escalation es·ca·late v. es·ca·lat·ed, es·ca·lat·ing, es·ca·lates v.tr. To increase, enlarge, or intensify: escalated the hostilities in the Persian Gulf. v.intr. and possible blackouts, changes in interest rates, and other risks discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2000, which has been filed with the Securities and Exchange Commission.
PACIFIC CREST CAPITAL, INC.
SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
2001 2000 % Change
Earnings and
dividends:
Net income $ 1,320 $ 1,337 (1.27%)
Diluted earnings
per common
share 0.50 0.51 (1.96%)
Dividends
declared and
paid per
common share 0.08 0.07 14.29%
Performance
ratios:
Return on
average
shareholders'
equity (1) (2) 14.29% 16.02% --
Return on
average total
assets (1) 0.96% 0.82% --
Net interest
rate spread (3) 3.11% 2.40% --
Net interest
margin (4) 3.48% 2.73% --
Operating expense
to average
total assets (5) 2.06% 1.56% --
Efficiency
ratio (6) 54.76% 52.86% --
Average balances:
Average
shareholders'
equity $ 36,840 $ 28,222 30.54%
Average realized
shareholders'
equity (2) 36,956 33,387 10.69%
Average total
assets 552,589 652,309 (15.29%)
Loan activity:
Loan originations $ 35,891 $ 24,737 45.09%
Loan sales - SBA 2,249 2,601 (13.53%)
Allowance for
loan losses
activity:
Allowance
at beginning
of period $ 7,414 $ 7,082
Provision for
loan losses 150 125
Net (charge-offs)
recoveries:
Charge-offs (25) --
Recoveries 20 7
Total net
(charge-offs)
recoveries (5) 7
Allowance
at end of
period $ 7,559 $ 7,214
Annualized
net charge-offs
(recoveries)
to average
loans 0.00% (0.01%)
Nine Months Ended
September 30,
2001 2000 % Change
Earnings and
dividends:
Net income $ 4,019 $ 3,961 1.46%
Diluted earnings
per common
share 1.51 1.51 0.00%
Dividends
declared and
paid per
common share 0.24 0.21 14.29%
Performance
ratios:
Return on
average
shareholders'
equity (1) (2) 14.82% 16.27% --
Return on
average total
assets (1) 0.93% 0.83% --
Net interest
rate spread (3) 2.85% 2.55% --
Net interest
margin (4) 3.23% 2.86% --
Operating expense
to average
total assets (5) 1.90% 1.55% --
Efficiency
ratio (6) 53.54% 51.27% --
Average balances:
Average
shareholders'
equity $ 35,743 $ 25,982 37.57%
Average realized
shareholders'
equity (2) 36,161 32,469 11.37%
Average total
assets 573,432 637,604 (10.06%)
Loan activity:
Loan originations $ 71,143 $ 65,559 8.52%
Loan sales - SBA 10,019 2,601 285.20%
Allowance for
loan losses
activity:
Allowance
at beginning
of period $ 7,240 $ 6,450
Provision for
loan losses 230 500
Net (charge-offs)
recoveries:
Charge-offs (59) --
Recoveries 148 264
Total net
(charge-offs)
recoveries 89 264
Allowance
at end of
period $ 7,559 $ 7,214
Annualized
net charge-offs
(recoveries)
to average
loans (0.03%) (0.09%)
September 30, June 30, %
2001 2001 Change
Balance sheet
data:
Investment
securities $ 65,767 $ 141,353 (53.47%)
Loans, net of
deferred
loan fees 424,758 398,939 6.47%
Assets 531,162 555,925 (4.45%)
Deposits 426,549 424,283 0.53%
Borrowings 57,250 87,250 (34.38%)
Shareholders'
equity 37,744 36,554 3.26%
September 30, September 30, %
2001 2000 Change
Balance sheet
data:
Investment
securities $ 65,767 $ 243,211 (72.96%)
Loans, net of
deferred
loan fees 424,758 397,307 6.91%
Assets 531,162 654,858 (18.89%)
Deposits 426,549 511,182 (16.56%)
Borrowings 57,250 104,250 (45.08%)
Shareholders'
equity 37,744 29,468 28.08%
(1) Calculation is based on annualized net income.
(2) Calculation excludes average accumulated other comprehensive gain
(loss) from average shareholders' equity.
(3) Net interest rate spread is defined as the yield earned on average
total interest-earning assets less the rate paid on average total
interest-bearing liabilities.
(4) Net interest margin is defined as annualized net interest income
divided by average total interest-earning assets.
(5) Operating expense is defined as total non-interest expense less
other real estate owned and collection expenses. Calculation is
based on annualized operating expense.
(6) Efficiency ratio is defined as operating expense divided by the
sum of net interest income, loan prepayment and late fee income,
gain on sale of SBA loans and other income.
PACIFIC CREST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2001 2000 2001 2000
Interest income:
Loans $ 9,428 $ 9,605 $28,194 $27,412
Securities
purchased
under resale
agreements 135 47 352 77
Investment
securities -
available for
sale:
U.S. agency
callable bonds 842 3,948 4,853 11,850
U.S. agency
mortgage-backed
securities 856 67 2,181 207
Corporate debt
securities 62 93 217 268
Total interest
on investment
securities 1,760 4,108 7,251 12,325
Total interest
income 11,323 13,760 35,797 39,814
Interest expense:
Money market
checking 107 155 327 515
Savings accounts 1,182 2,074 4,039 6,381
Certificates of
deposit 3,960 5,371 13,692 13,793
Total interest
on deposits 5,249 7,600 18,058 20,689
Securities sold
under
repurchase
agreements 29 338 211 1,634
Borrowings from
State of
California 193 497 609 1,288
Term borrowings 677 450 2,009 1,343
Trust
preferred
securities 404 405 1,213 1,213
Total interest
on borrowings 1,303 1,690 4,042 5,478
Total interest
expense 6,552 9,290 22,100 26,167
Net interest
income 4,771 4,470 13,697 13,647
Provision for
loan losses 150 125 230 500
Net interest
income after
provision for
loan losses 4,621 4,345 13,467 13,147
Non-interest
income:
Loan prepayment
and late fee
income 47 87 257 238
Gain on sale of
SBA 7(a) loans 95 114 405 114
Gain on sale of
SBA 504 loans
and broker fee
income 69 -- 298 --
Gain (loss) on
sale of
investment
securities 106 -- 95 --
Gain on sale of
commercial real
estate loan -- -- -- --
Gain on sale of
other real
estate owned -- -- -- 115
Other income 219 157 579 438
Total
non-interest
income 536 358 1,634 905
Non-interest
expense:
Salaries and
employee
benefits 1,718 1,611 4,973 4,523
Net occupancy
expenses 397 332 1,199 1,078
Communication
and data
processing 247 202 762 644
Legal, audit,
and other
professional
fees 261 159 507 430
Advertising and
promotion 48 56 170 175
Other real
estate owned
and collection
expenses -- (142) -- (144)
Other expenses 177 192 547 552
Total
non-interest
expense 2,848 2,410 8,158 7,258
Income before
income taxes 2,309 2,293 6,943 6,794
Income tax
provision 989 956 2,924 2,833
Net income $ 1,320 $ 1,337 $ 4,019 $ 3,961
Earnings per
common share:
Basic $ 0.54 $ 0.53 $ 1.62 $ 1.57
Diluted $ 0.50 $ 0.51 $ 1.51 $ 1.51
Weighted average
common shares:
Basic 2,463 2,512 2,483 2,529
Diluted 2,657 2,616 2,659 2,621
PACIFIC CREST CAPITAL, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share data)
(Unaudited)
Three Months Ended
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2001 2001 2001 2000 2000
Interest income:
Loans $ 9,428 $ 9,338 $ 9,428 $ 9,770 $ 9,605
Securities
purchased
under resale
agreements 135 85 132 55 47
Investment
securities -
available for
sale:
U.S. agency
callable bonds 842 1,318 2,693 3,918 3,948
U.S. agency
mortgage-backed
securities 856 933 392 67 67
Corporate debt
securities 62 72 83 95 93
Total interest
on investment
securities 1,760 2,323 3,168 4,080 4,108
Total interest
income 11,323 11,746 12,728 13,905 13,760
Interest expense:
Money market
checking 107 107 113 143 155
Savings accounts 1,182 1,288 1,569 1,974 2,074
Certificates of
deposit 3,960 4,593 5,139 5,491 5,371
Total interest
on deposits 5,249 5,988 6,821 7,608 7,600
Securities sold
under
repurchase
agreements 29 28 154 388 338
Borrowings from
State of
California 193 134 282 517 497
Term borrowings 677 670 662 656 450
Trust
preferred
securities 404 405 404 404 405
Total interest
on borrowings 1,303 1,237 1,502 1,965 1,690
Total interest
expense 6,552 7,225 8,323 9,573 9,290
Net interest
income 4,771 4,521 4,405 4,332 4,470
Provision for
loan losses 150 40 40 104 125
Net interest
income after
provision for
loan losses 4,621 4,481 4,365 4,228 4,345
Non-interest
income:
Loan prepayment
and late fee
income 47 78 132 108 87
Gain on sale of
SBA 7(a) loans 95 149 161 (2) 114
Gain on sale of
SBA 504 loans
and broker fee
income 69 131 98 -- --
Gain (loss) on
sale of
investment
securities 106 1 (12) (2) --
Gain on sale of
commercial real
estate loan -- -- -- 561 --
Gain on sale of
other real
estate owned -- -- -- -- --
Other income 219 200 160 143 157
Total
non-interest
income 536 559 539 808 358
Non-interest
expense:
Salaries and
employee
benefits 1,718 1,654 1,601 1,884 1,611
Net occupancy
expenses 397 411 391 344 332
Communication
and data
processing 247 262 253 236 202
Legal, audit,
and other
professional
fees 261 133 113 134 159
Advertising and
promotion 48 52 70 48 56
Other real
estate owned
and collection
expenses -- -- -- -- (142)
Other expenses 177 204 166 142 192
Total
non-interest
expense 2,848 2,716 2,594 2,788 2,410
Income before
income taxes 2,309 2,324 2,310 2,248 2,293
Income tax
provision 989 971 964 939 956
Net income $ 1,320 $ 1,353 $ 1,346 $ 1,309 $ 1,337
Earnings per
common share:
Basic $ 0.54 $ 0.55 $ 0.54 $ 0.52 $ 0.53
Diluted $ 0.50 $ 0.51 $ 0.51 $ 0.50 $ 0.51
Weighted average
common shares:
Basic 2,463 2,478 2,507 2,514 2,512
Diluted 2,657 2,658 2,662 2,627 2,616
PACIFIC CREST CAPITAL, INC.
CONSOLIDATED BALANCE SHEETS
(In thousands)
Sep 30, June 30, Mar 31, Dec 31, Sep 30,
2001 2001 2001 2000 2000
Unaudited Unaudited Unaudited Audited Unaudited
Assets
Cash $ 3,298 $ 4,943 $ 2,185 $ 2,319 $ 3,271
Securities
purchased
under resale
agreements 33,312 4,990 33,706 3,017 --
Cash and
cash
equivalents 36,610 9,933 35,891 5,336 3,271
Investment
securities
available for
sale - at
market:
U.S. agency
callable
bonds -- 79,191 84,009 227,106 235,636
U.S. agency
mortgage-backed
securities 62,337 58,580 64,071 3,799 3,731
Corporate debt
securities 3,430 3,582 3,570 3,543 3,844
Total investment
securities 65,767 141,353 151,650 234,448 243,211
Loans, net of
deferred loan
fees 424,758 398,939 390,700 400,285 397,307
Less: allowance
for loan
losses (7,559) (7,414) (7,397) (7,240) (7,214)
Net loans 417,199 391,525 383,303 393,045 390,093
Deferred income
taxes, net 4,917 5,300 5,331 6,235 8,729
Accrued interest
receivable 2,573 4,064 3,923 6,582 6,889
Prepaid
expenses and
other assets 2,845 2,506 1,610 1,702 1,452
Premises and
equipment 1,251 1,244 1,295 1,312 1,213
Other real
estate owned -- -- -- -- --
Total assets $531,162 $555,925 $583,003 $648,660 $654,858
Liabilities
Money market
checking $17,296 $13,826 $13,257 $14,414 $14,360
Savings accounts 143,551 138,541 142,145 148,347 157,371
Certificates of
deposit 265,702 271,916 315,188 336,076 339,451
Total deposits 426,549 424,283 470,590 498,837 511,182
Securities sold
under
repurchase
agreements -- -- -- 23,500 24,000
Borrowings from
State of
California -- 30,000 13,000 28,000 33,000
Term borrowings 40,000 40,000 40,000 40,000 30,000
Trust preferred
securities 17,250 17,250 17,250 17,250 17,250
Total borrowings 57,250 87,250 70,250 108,750 104,250
Total interest-
bearing
liabilities 483,799 511,533 540,840 607,587 615,432
Accrued interest
payable and
other
liabilities 9,619 7,838 6,444 7,143 9,958
Total
liabilities 493,418 519,371 547,284 614,730 625,390
Shareholders'
Equity
Common stock,
at par 30 30 30 30 30
Additional
paid-in
capital 27,778 27,779 27,777 27,790 27,809
Beginning
retained
earnings 14,542 14,542 14,542 9,978 9,978
Year-to-date
earnings 4,019 2,699 1,346 5,270 3,961
Year-to-date
dividends (594) (398) (199) (706) (530)
Accumulated
other
comprehensive
gain (loss) -
unrealized
gain (loss)
on securities,
net of tax 164 (286) (252) (1,532) (4,837)
Common stock in
treasury, at
cost (8,195) (7,812) (7,525) (6,900) (6,943)
Total
shareholders'
equity 37,744 36,554 35,719 33,930 29,468
Total
liabilities and
shareholders'
equity $531,162 $555,925 $583,003 $648,660 $654,858
PACIFIC CREST CAPITAL, INC.
CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES
(Dollars in thousands)
(Unaudited)
Three Months Ended
Sep 30, June 30, Mar 31, Dec 31, Sep 30,
2001 2001 2001 2000 2000
Average Interest-
Earning Assets:
Loans, net of
deferred loan
fees $413,909 $400,013 $396,319 $399,885 $395,935
Securities
purchased
under resale
agreements 15,719 7,655 10,237 3,392 2,879
Investment
securities
available for
sale - at
amortized cost:
U.S. agency
callable
bonds 51,714 80,410 167,388 241,906 243,634
U.S. agency
mortgage-backed
securities 58,951 61,770 24,708 3,806 3,841
Corporate debt
securities 4,119 4,115 4,111 4,108 4,104
Total investment
securities 114,784 146,295 196,207 249,820 251,579
Total interest-
earning assets $544,412 $553,963 $602,763 $653,097 $650,393
Average Interest-
Bearing
Liabilities:
Money market
checking $15,276 $13,789 $13,377 $13,545 $14,528
Savings accounts 141,308 139,438 145,051 152,970 160,336
Certificates of
deposit 268,154 291,460 321,878 337,714 339,594
Total deposits 424,738 444,687 480,306 504,229 514,458
Securities sold
under
repurchase
agreements 2,918 2,536 9,889 22,918 19,698
Borrowings from
State of
California 20,946 12,077 17,833 32,783 33,000
Term borrowings 40,000 40,000 40,000 38,913 30,000
Trust preferred
securities 17,250 17,250 17,250 17,250 17,250
Total borrowings 81,114 71,863 84,972 111,864 99,948
Total interest-
bearing
liabilities $505,852 $516,550 $565,278 $616,093 $614,406
Yields on
Average
Interest-
Earning Assets:
Loans, net of
deferred loan
fees 9.04% 9.36% 9.65% 9.72% 9.65%
Securities
purchased
under resale
agreements 3.41% 4.45% 5.23% 6.45% 6.49%
Investment
securities
available for
sale:
U.S. agency
callable
bonds 6.51% 6.56% 6.44% 6.48% 6.48%
U.S. agency
mortgage-backed
securities 5.81% 6.04% 6.35% 7.04% 6.98%
Corporate debt
securities 6.02% 7.00% 8.08% 9.25% 9.06%
Total investment
securities 6.13% 6.35% 6.46% 6.53% 6.53%
Total interest-
earning assets 8.25% 8.50% 8.56% 8.47% 8.42%
Rates on
Average
Interest-
Bearing
Liabilities:
Money market
checking 2.78% 3.11% 3.43% 4.20% 4.24%
Savings accounts 3.32% 3.70% 4.39% 5.13% 5.15%
Certificates of
deposit 5.86% 6.32% 6.47% 6.47% 6.29%
Total deposits 4.90% 5.40% 5.76% 6.00% 5.88%
Securities sold
under
repurchase
agreements 3.94% 4.43% 6.32% 6.74% 6.83%
Borrowings from
State of
California 3.61% 4.39% 6.33% 6.17% 5.89%
Term borrowings 6.62% 6.63% 6.62% 6.60% 5.87%
Trust preferred
securities 9.37% 9.39% 9.37% 9.37% 9.39%
Total borrowings 6.33% 6.84% 7.08% 6.93% 6.67%
Total interest-
bearing
liabilities 5.14% 5.61% 5.97% 6.18% 6.02%
Net Interest
Rate Spread 3.11% 2.89% 2.59% 2.29% 2.40%
Net Interest
Margin 3.48% 3.27% 2.96% 2.64% 2.73%
PACIFIC CREST CAPITAL, INC.
SELECTED FINANCIAL DATA
(Dollars in thousands except per share data)
(Unaudited)
At or For the Three Months Ended
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2001 2001 2001 2000 2000
Loan
originations:
Commercial real
estate loans $ 28,013 $ 19,397 $ 5,400 $ 10,303 $ 20,173
SBA business
loans:
7(a) loans -
guaranteed
portion 4,316 3,271 354 1,495 3,437
7(a) loans -
unguaranteed
portion 1,382 1,060 72 491 1,127
Total 7(a) loans 5,698 4,331 426 1,986 4,564
Total 504 loans 2,180 4,590 1,108 2,414 --
Total SBA loans 7,878 8,921 1,534 4,400 4,564
Total loan
originations $ 35,891 $ 28,318 $ 6,934 $ 14,703 $ 24,737
Loan sales:
SBA guaranteed
7(a) loans $ 1,950 $ 2,760 $ 2,589 $ -- $ 2,601
SBA 504 first
lien loans $ 299 $ 1,238 $ 1,183 $ -- $ --
Performance
ratios:
Return on
average
shareholders'
equity (1) (2) 14.29% 15.00% 15.20% 15.18% 16.02%
Return on
average total
assets (1) 0.96% 0.97% 0.88% 0.80% 0.82%
Net interest
rate spread (3) 3.11% 2.89% 2.59% 2.29% 2.40%
Net interest
margin (4) 3.48% 3.27% 2.96% 2.64% 2.73%
Operating expense
to average
total
assets (5) 2.06% 1.94% 1.71% 1.70% 1.56%
Efficiency
ratio (6) 54.76% 53.48% 52.34% 60.86% 52.86%
Average balances:
Average
shareholders'
equity $ 36,840 $ 35,775 $ 34,589 $ 31,188 $ 28,222
Average realized
shareholders'
equity (2) 36,956 36,081 35,428 34,495 33,387
Average total
assets 552,589 559,864 608,456 656,612 652,309
Per share data:
Dividends
declared and
paid per
common share $ 0.08 $ 0.08 $ 0.08 $ 0.07 $ 0.07
Tangible book
value per
common share $ 15.41 $ 14.81 $ 14.38 $ 13.49 $ 11.73
Common stock
analysis:
Common stock
issued at end
of quarter 2,986,530 2,986,530 2,986,530 2,986,530 2,986,530
Treasury
stock held
at end
of quarter (537,061) (518,213) (503,413) (471,110) (474,070)
Common stock
outstanding at
end of quarter 2,449,469 2,468,317 2,483,117 2,515,420 2,512,460
Loans held for
sale:
SBA guaranteed
7(a) loans $ 8,823 $ 6,093 $ 5,982 $ 8,771 $ 6,966
SBA 504 loans 1,495 1,000 1,826 2,133 --
Total loans held
for sale at
end of quarter $ 10,318 $ 7,093 $ 7,808 $ 10,904 $ 6,966
(1) Calculation is based on annualized net income.
(2) Calculation excludes average accumulated other comprehensive gain
(loss) from average shareholders' equity.
(3) Net interest rate spread is defined as the yield earned on average
total interest-earning assets less the rate paid on average total
interest-bearing liabilities.
(4) Net interest margin is defined as annualized net interest income
divided by average total interest-earning assets.
(5) Operating expense is defined as total non-interest expense less
other real estate owned and collection expenses. Calculation is
based on annualized operating expense.
(6) Efficiency ratio is defined as operating expense divided by the
sum of net interest income, loan prepayment and late fee income,
gain on sale of SBA loans and other income.
PACIFIC CREST CAPITAL, INC.
SELECTED FINANCIAL DATA
(Dollars in thousands)
(Unaudited)
At or For the Three Months Ended
Sep 30, Jun 30, Mar 31, Dec 31, Sep 30,
2001 2001 2001 2000 2000
Non-performing
assets:
Non-accrual
loans $ -- $ -- $ 889 $ -- $ --
Other real
estate owned
(OREO) -- -- -- -- --
Total
non-performing
assets $ -- $ -- $ 889 $ -- $ --
Non-accrual loans
to total loans -- -- 0.23% -- --
Total
non-performing
assets to
total assets -- -- 0.15% -- --
Allowance for
loan losses
activity:
Allowance
at beginning
of quarter $ 7,414 $ 7,397 $ 7,240 $ 7,214 $ 7,082
Provision for
loan losses 150 40 40 104 125
Net (charge-offs)
recoveries:
Charge-offs (25) (34) -- (123) --
Recoveries 20 11 117 45 7
Total net
(charge-offs)
recoveries (5) (23) 117 (78) 7
Allowance
at end of
quarter $ 7,559 $ 7,414 $ 7,397 $ 7,240 $ 7,214
Asset quality
ratios:
Allowance for
loan losses
to total loans 1.78% 1.86% 1.89% 1.81% 1.82%
Allowance for
loan losses
to non-accrual
loans -- -- 832.06% -- --
Annualized
net charge-offs
(recoveries)
to average
loans 0.00% 0.02% (0.12%) 0.08% (0.01%)
Regulatory
capital ratios:
Pacific Crest
Capital, Inc.
Leverage ratio 9.06% 8.77% 7.87% 7.16% 6.96%
Tier 1 risk-based
capital ratio 11.77% 11.74% 11.36% 10.63% 10.28%
Total risk-based
capital ratio 14.14% 14.18% 13.87% 13.11% 12.84%
Pacific Crest
Bank
Leverage ratio 9.17% 8.91% 8.12% 7.36% 7.24%
Tier 1 risk-based
capital ratio 11.89% 11.90% 11.61% 10.82% 10.59%
Total risk-based
capital ratio 13.15% 13.16% 12.87% 12.07% 11.84%
Regulatory
capital data:
Pacific Crest
Capital, Inc.
Tier 1 capital $ 50,076 $ 49,103 $ 47,961 $ 47,263 $ 45,740
Total risk-based
capital 60,145 59,330 58,523 58,270 57,137
Average total
assets 552,675 560,153 609,295 659,899 657,474
Risk-weighted
assets 425,425 418,364 422,049 444,524 444,917
Pacific Crest
Bank
Tier 1 capital $ 50,340 $ 49,549 $ 48,736 $ 47,704 $ 46,749
Total risk-based
capital 55,659 54,781 54,010 53,238 52,290
Average total
assets 548,779 556,130 600,411 648,488 646,115
Risk-weighted
assets 423,296 416,393 419,803 441,009 441,598
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