First Pacific Bancorp Reports First Quarter 2024 Results

WHITTIER, Calif., May 01, 2024 (GLOBE NEWSWIRE) -- First Pacific Bancorp (the “Company”) (OTC Pink: FPBC), the holding company for First Pacific Bank (the “Bank”), today reported consolidated results for the first quarter ending March 31, 2024, underscored by four consecutive quarters of profitability.

Highlights for the first quarter of 2024 include:

• Total assets ended Q1 2024 at $441 million, up $21 million from $420 million at year end 2023.
• Total deposits ended the first quarter 2024 at $350 million, up $16 million since year end 2023.
• Total loans ended the first quarter 2024 at $275 million, similar to year end 2023.
• Asset quality remains excellent, and we have experienced no significant changes in classified assets or non-performing assets.
• The Bank ended the first quarter with a strong capital position, with a leverage capital ratio of 8.6% and a total risk-based capital ratio was 12.2%.
• As of March 31, 2024, cash and cash equivalents totaled $45 million, including funds invested overnight, up $23 million since year end 2023.
• Unused borrowing capacity from credit facilities in place on March 31, 2023, totaled over $146 million.
  

For the first quarter ended March 31, 2024, the Company realized a pre-tax, pre-provision profit of $222 thousand, compared to a pre-tax, pre-provision profit of $125 thousand in Q4 2024. Net income for the first quarter of 2024 was $162 thousand, up from $55 thousand in Q4 2023.   

Asset quality remains excellent with minimal non-performing assets and the allowance for credit losses is 1.13% of total loans.  

“We are pleased that we have been able to reposition the Bank’s strategic direction over the last two years and that is reflected in turning the corner on profitability,” said Joe Matranga, Chairman of the Board of Directors, commenting on the fourth consecutive quarter of positive earnings. “We continue to maintain a sound capital, liquidity, and financial position, reinforced by excellent asset quality, and a well-diversified portfolio.”

“Our first quarter results demonstrate another successful period of profitability, including strong core deposit growth, stable credit quality, and prudent expense management. We continue to grow our customer base by adding key talent, enhancing our operational processes, and adopting new technologies aimed at improving the customer experience," remarked Nathan Rogge, President and Chief Executive Officer. "We are encouraged by our strong start to the year and remain confident that the Bank is well positioned to achieve continued growth during the remainder of 2024.”

ABOUT FIRST PACIFIC BANK

First Pacific Bank is a wholly owned subsidiary of First Pacific Bancorp (OTC Pink: FPBC) and is a growing community bank catering to individuals, professionals, and small-to-medium sized businesses throughout Southern California. With a history that spans 17 years, the Bank offers a personalized approach, access to decision makers, a broad range of solutions, and a commitment to delivering an exceptional customer experience. First Pacific Bank operates locations in Los Angeles County, Orange County, San Diego County, and the Inland Empire. For more information, visit firstpacbank.com or call 888.BNK.AT.FPB.

FORWARD-LOOKING STATEMENTS

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and First Pacific Bancorp intends for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely. Forward-looking statements relate to, among other things, our business plan, and strategies, and can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could,” or “may” and similar expressions. These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. Factors that might cause such differences include, but are not limited to: successfully realizing the benefits of our business strategy and plans,; changes in general economic and financial market conditions, either nationally or locally, in areas in which First Pacific Bank conducts its operations; effects of inflation and changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; impact of any natural disasters, including earthquakes; effect of governmental supervision and regulation, including any regulatory or other enforcement actions; legislation or regulatory changes which adversely affect First Pacific Bank’s operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company does not undertake, and specifically disclaims any obligation to update any forward-looking statements to reflect occurrences or unanticipated events, or circumstances after the date of such statements except as required by law.  

Contacts
Investor Relations Contact	Media Relations Contact
Jim Burgess	Amanda Conover
858.461.7302	562.501.9062
[e-mail]	[e-mail]

--- Summary Financial Table Follows ---

First Pacific Bancorp and Subsidiary
Consolidated Balance Sheets (Unaudited)
	Mar 2024				Dec 2023				Mar 2023
ASSETS
Total Cash & Due From	$7,317,500				$4,308,149				$4,833,123
Total FFS & EBA		37,575,000				18,060,000				14,190,000
Total cash, due from banks and cash equivalents		44,892,500				22,368,149				19,023,123
Debt securities		108,613,089				109,600,182				115,539,408
Loans		274,752,802				275,198,411				245,636,965
Allowance for credit losses		(3,109,975)				(3,109,975)				(2,699,021)
Loans, net		271,642,827				272,088,436				242,937,944
Restricted stock and equity securities		4,134,150				4,128,350				3,639,550
Premises, equipment, and right of use asset, net		1,992,588				2,268,671				2,036,772
Bank owned life insurance		5,198,654				5,170,521				5,086,329
Goodwill and core deposit intangible		1,313,367				1,328,651				1,321,593
Accrued interest receivable and other assets		3,281,459				3,263,951				3,216,257
Total Assets	$441,068,634				$420,216,911				$392,800,976
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Noninterest-bearing deposits	$133,945,262				$121,348,095				$133,976,178
Interest-bearing deposits		215,560,664				211,963,425				170,885,702
Total deposits		349,505,926				333,311,520				304,861,880
Borrowings		50,000,000				45,000,000				52,000,000
Accrued interest payable and other liabilities		3,936,909				4,530,208				3,023,714
Total Liabilities		403,442,835				382,841,728				359,885,594
Total Shareholders' Equity		37,625,799				37,375,183				32,915,382
Total Liabilities and Shareholders' Equity	$441,068,634				$420,216,911				$392,800,976
Common Shares Outstanding		4,283,351				4,231,841				3,776,622
Book Value Per Share	$8.78				$8.83				$8.72
First Pacific Bancorp and Subsidiary
Consolidated Statements of Operations (Unaudited)
	For the three				For the three				For the three
	months ended				months ended				months ended
	Mar 2024				Dec 2023				Mar 2023
Interest Income	$5,655,077				$5,455,811				$4,283,716
Interest Expense		2,253,422				2,247,865				1,185,068
Net Interest Income		3,401,655				3,207,946				3,098,648
Provision for credit losses		0				101,538				463,000
Net Interest Income After Provision for Credit Losses		3,401,655				3,106,408				2,635,648
Noninterest income		162,237				149,658				158,229
Noninterest expense		3,341,460				3,232,556				3,209,121
Income (Loss) before Provision for Income Taxes		222,432				23,510				(415,244)
Provision for (benefit from) income taxes		60,524				(31,955)				(125,228)
Net Income (Loss)	$161,908				$55,465				($290,016)
Earnings Per Share - Basic	$0.04				$0.01				($0.08)