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Press Release

Presidio Bank Reports Results for the Second Quarter 2019

Company Release - 7/25/2019 5:00 PM ET

SAN FRANCISCO--(BUSINESS WIRE)-- 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
(Dollars in thousands, except per share amounts, unaudited)

 

For the three months ended

For the six months ended

6/30/2019

3/31/2019

Change
Fav./
(Unfav.)

6/30/2018

Change
Fav./
(Unfav.)

6/30/2019

6/30/2018

Change
Fav./
(Unfav.)

 

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)
(Dollars in Thousands, unaudited)

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.

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)
agelinas@presidiobank.com

Source: Presidio Bank