CHULA VISTA, Calif.--(BUSINESS WIRE)--First PacTrust Bancorp, Inc. (Nasdaq: FPTB - News), the holding company for Pacific Trust Bank, announced second quarter results for 2008.First PacTrust Bancorp reported a net loss of $1.8 million and $630 thousand for the three and six month periods ended June 30, 2008 compared to net income of $800 thousand and $1.8 million for the three and six month periods of the prior year. The Company reported a net loss per share of $.43 and $.15 for the three and six month periods ended June 30, 2008, respectively, compared to diluted earnings per share of $.19 and $.43 for the three and six month periods ended June 30, 2007, respectively. On August 7, 2008, the Board of Directors declared a quarterly cash dividend of $.185 per share which will be paid on October 3, 2008 to stockholders of record on September 12, 2008.
The net losses reported for the quarter and six month period ended June 30, 2008 reflect loan loss provisions in light of deteriorated local housing markets. Hans Ganz, President and Chief Executive Officer, stated that “although the Company continues to operate in a challenging environment, as evidenced by the increase in non-performing assets, the Company has focused on identifying and addressing delinquent and non-performing loans and enhanced loan loss reserves to absorb probable incurred losses. As a result, the Company recorded a provision for loan losses of $5.9 million during the first six months of the current year, which increased the ratio of our allowance for loan loss to total loans to 1.46% compared to .87% and .65% at December 31, 2007 and June 30, 2007, respectively.” Mr. Ganz went on to say that “while the Company’s results for the second quarter were not acceptable, the Bank’s capital ratios continue to exceed the regulatory ‘well capitalized’ thresholds. Mr. Ganz went on to say that “in addition, with rates decreasing, liability costs have gone down, positioning the Company for improved interest rate spreads and margins going forward.”
Non-performing loans increased $21.2 million to $35.3 million at June 30, 2008 compared to $14.1 million at December 31, 2007. The increase in non-performing loans for the six month period ended June 30, 2008 was primarily related to three construction and land development loans totaling $27.2 million. Loan loss reserves totaling $6.6 million were established for these loans and included an allowance allocation of $1.5 million that was established in the prior year. The Company’s construction and land loan portfolio at June 30, 2008 totaled $39.7 million, representing 5.1% of the Company’s total loan portfolio. The remaining non-performing loan balance of $7.2 million primarily consists of residential real estate loans. Loan loss reserves totaling $376 thousand were established for these loans. The Company utilizes estimated current market values when assessing loan loss provisions for collateral dependent loans. At June 30, 2008, real estate acquired in settlement of loans totaled $436 thousand, based on the fair value of the collateral, and consisted of one single family property currently held for sale. Year-to-date charge-offs totaled $743 thousand compared to $13 thousand for the six months ended June 30, 2007. The current year net charge-offs consisted primarily of one commercial non-real estate loan totaling $653 thousand which was the only loan of this type in the Company’s portfolio. The allowance for loan losses as a percentage of loans outstanding was 1.46% at June 30, 2008 compared to 0.65% at June 30, 2007.
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