Pacific National Bank Reports Positive Third-Quarter Results

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MIAMI--(BUSINESS WIRE)-- Pacific National Bank today reported net income of $312,000 for the three months ended September 30, 2011, compared with net income of $375,000 for the three months ended September 30, 2010.

The bank’s third-quarter net income of $312,000 was primarily due to a net recovery of the allowance for loan and lease losses of $190,000, gains on sale of investment securities of $239,000, and a reduction of the valuation allowance for deferred tax assets of $300,000, partially offset by core operating losses of $149,000, an allowance for unfunded loan commitments of $238,000, and extraordinary regulatory costs of $30,000. That compares with net income of $375,000 in the third quarter of 2010, which included a provision for loan losses of $817,000 and core operating losses of $28,000, which were more than offset by a tax recovery of $1,220,000.

“We continue to make progress in reducing the level of classified and non-performing assets, down 8.65 percent and 16.46 percent respectively, quarter over quarter,” said Carlos Fernandez-Guzman, President and C.E.O. “This continued improvement in loan quality, complimented by our growing pipeline of new loan relationships, as well as one of the strongest Tier One capital ratios in Florida provide the right foundation on which to grow the franchise and restore sustainable core earnings.”

For the nine months ended September 30, 2011, the bank's net loss was $416,000, compared with a net loss of $1,309,000 for the same period in 2010. The provision for loan and lease losses for the nine months ended September 30, 2011, was $237,000, compared with $2,982,000 for the same period in 2010.

Tier 1 capital increased to 12.74 percent, while total risk-based capital grew to 26.71 percent from the previous quarter. Non-performing assets at the end of the third quarter were $15.4 million, or 4.5 percent of total assets.

The allowance for loan losses now stands at 2.46 percent of gross loans. The bank’s ratio of non-performing assets today stands at 34.06 percent of regulatory capital and reserves.

Pacific National Bank, headquartered at 1390 Brickell Avenue, was established as a national bank in 1985 and has $341 million in assets.