Pacific City Financial Corporation Declares Cash Dividend and Reports Strong 2015 First Quarter Financial Results

Pacific City Financial Corporation (the “Company”) (OTCBB: PFCF), the holding company of Pacific City Bank, today reported net income available to common shareholders of $2.9 million, or $0.30 per diluted common share, for the first quarter of 2015. The 2015 first quarter net income increased $570,000 compared with the 2014 fourth quarter net income of $2.4 million, and increased $599,000 compared with the 2014 first quarter net income of $2.3 million.

2015 First Quarter Highlights

• Net income available to common shareholders totaled $2.9 million, or $0.30 per diluted common share
• Gross loans, net of unearned fee/cost, increased $131.8 million, or 21.0%, to $759.2 million from $627.4 million at March 31, 2014
• Total deposit increased $139.5 million, or 20.6%, to $817.9 million from $678.4 million at March 31, 2014
• Total assets increased $149.0 million, or 19.5%, to $911.4 million from $762.5 million at March 31, 2014
• Classified assets to tier 1 and ALLL ratio was 9.74%, down 902 bps from 18.76% at March 31, 2014
• Paid 10% stock dividend to shareholders in the first quarter of 2015

"We are very pleased to report another strong quarterly performance. We experienced a balanced organic loan and deposit growth that resulted in a stable net interest income,” said Haeyoung Cho, President and CEO. “We continued to experience improvements in our credit quality as evidenced by the negative provision expense during the first quarter. Our core businesses remain solid and we remain very optimistic in the opportunities in our marketplaces.”

CASH DIVIDEND

On May 4, 2015, the Board of Directors of the Company approved the declaration of $0.03 per common share cash dividend to its shareholders. This is the first time the Company has declared a cash dividend to its shareholders. A dividend of $0.03 per common share will be paid on or about June 18, 2015 to all shareholders of record as of the close of business on May 29, 2015. “We are extremely pleased to express our appreciation to our shareholders by declaring our first cash dividend. This cash dividend is an important component to our ongoing commitment to benefit and increase our shareholders’ value,” said Ms. Cho.

2015 First Quarter Financial Highlights
(In thousands, except per share data)
			As of or For the Three Months Ended
			Mar. 31, 2015				Dec. 31, 2014				% change				Mar. 31, 2014				% change
Net Income			$	2,928			$	2,358			24.2	%			$	2,485			17.8	%
Net income available to common shareholders			$	2,928			$	2,358			24.2	%			$	2,329			25.7	%
Earnings per common share (basic)			$	0.30			$	0.24			24.1	%			$	0.25			18.5	%
Net interest income			$	8,533			$	8,708			-2.0	%			$	7,292			17.0	%
(Reversal) Provision for loan loss			$	(284	)		$	675			-142.0	%			$	(386	)		-26.5	%
Non-interest income			$	2,936			$	2,727			7.6	%			$	2,190			34.0	%
Non-interest expense			$	6,766			$	6,711			0.8	%			$	5,758			17.5	%
Total assets			$	911,426			$	893,960			2.0	%			$	762,454			19.5	%
Loans receivable, net of allowance and loan fee/cost			$	749,842			$	723,088			3.7	%			$	615,560			21.8	%
Total deposits			$	817,910			$	802,828			1.9	%			$	678,377			20.6	%
Return on average assets				1.32	%			1.07	%							1.33	%
Return on average stockholders' equity				13.44	%			10.95	%							12.91	%
Net interest margin				3.93	%			4.03	%							4.04	%
Efficiency ratio				59.00	%			58.70	%							60.72	%
Tangible common equity to tangible assets				9.84	%			9.67	%	*						9.28	%	*
Tangible common equity per common share			$	9.17			$	8.85		*					$	7.68		*
Tier 1 leverage ratio (consolidated)				9.83	%			9.86	%							10.55	%
* reflected reverse stock split and stock dividend retroactively

2015 FIRST QUARTER RESULTS OF OPERATION

Net Income Summary

Net income available to common shareholders increased $570,000 to $2.9 million for the 2015 first quarter compared with $2.4 million for the previous quarter and increased $599,000 compared with $2.3 million for the year-ago period. The increase was primarily due to a reversal of loans loss provision expense of $284,000 compared with a loan loss provision of $675,000 in the previous quarter. The increase compared to a year-ago quarter was primarily due to an increase of $1.5 million in interest income and an increase of $746,000 in noninterest income, partially offset by an increase of $1.0 million in noninterest expenses.

Net Interest Income and Net Interest Margin

Net interest income before provision for loan losses for the 2015 first quarter was $8.5 million compared with $8.7 million in the previous quarter and $7.3 million in a year-ago quarter. In spite of an increase in the balance of average loan receivables, a decrease in overall loan yield had a negative impact on interest income.

Interest income for the quarter ended March 31, 2015 decreased $85,000 to $10.0 million compared with the previous quarter. Net interest margin declined 10 basis points to 3.93% for the first quarter of 2015 compared with the previous quarter. 2015 first quarter net interest margin declined 11 basis points compared with a year-ago quarter.

The decline in loan yield was driven by our ongoing strategy to reduce the interest rate risk associated with a rising interest rate environment by booking proportionally more variable loans with generally lower yield than fixed rate loans with higher yields. 2015 first quarter interest income increased $1.5 million primarily due to an increase of $147.8 million in average earning assets compared with the year-ago quarter.

Below is a table comparing the mix of our fixed and variable rate loans accompanied with weighted average contractual rates:

		March 31, 2015								December 31, 2014								March 31, 2014
		% to Gross Loans *				WAVG Contractual Rate				% to Gross Loans *				WAVG Contractual Rate				% to Gross Loans *				WAVG Contractual Rate
Fixed Rate Loans		45.6	%			5.11	%			48.1	%			5.11	%			53.5	%			5.12	%
Variable Rate Loans		54.4	%			4.41	%			51.9	%			4.47	%			46.5	%			4.76	%
* Including LHFS

Total interest expenses on deposit increased $90,000 to $1.5 million for the first quarter of 2015 compared with $1.4 million for the fourth quarter of 2014, and increased $297,000 compared with $1.2 million for the year-ago quarter primarily due to an increase in average interest bearing deposit balance and higher costs. The cost of interest-bearing deposit increased to 0.98% for the first quarter of 2015 compared with 0.93% for the December 31, 2014 quarter end. The cost of interest bearing deposits for March 31, 2014 quarter end was 0.95%.

The cost of total deposit including non-interest bearing deposits was 0.74% for the first quarter of 2015 compared with 0.70% and 0.72% for the quarter ended December 31, 2014 and March 31, 2014, respectively.

Noninterest Income

Noninterest income increased $209,000 to $2.9 million in the first quarter of 2015 compared with $2.7 million in the 2014 fourth quarter. The increase was primarily due to a recognition of $300,000 on gain on sale of residential mortgage loans during the first quarter of 2015 compared with $13,000 in the fourth quarter of 2014. Noninterest income increased $746,000 compared with the year-ago quarter primarily due to an increase of $288,000 in gain on sale of SBA loans to $1.5 million, an increase of $255,000 on gain on sale of residential mortgage loans, and an increase of $101,000 on loan servicing fees to $558,000.

The Company sold $19.8 million, $22.7 million, and $15.1 million in SBA loans for the first quarter of 2015, fourth quarter of 2014, and first quarter of 2014, respectively. The Company also sold $16.3 million, $1.6 million, and $3.2 million in residential mortgage loans for the first quarter of 2015, fourth quarter of 2014, and first quarter of 2014, respectively.

Noninterest Expense

Noninterest expense for the first quarter 2015 was in line with previous quarter at $6.7 million. However, it increased $1.0 million compared with $5.8 million in the year-ago quarter. The increase in noninterest expenses for the first quarter of 2015 compared with the first quarter of 2014 was primarily due to the increases in the salary and benefits expenses, occupancy expenses, legal and professional fees, and marketing expenses. During the first quarter of 2015, salary and benefits expenses increased $399,000 to $4.0 million compared with the first quarter of 2014 primarily due to an increase in headcount. For the same period comparison, occupancy expenses increased $94,000 to $848,000, legal and professional fees increased $351,000 to $682,000, and marketing expenses increased $113,000 to $275,000.

Income Tax Provision

The Company’s effective income tax rate was 41.28%, 41.76%, and 39.54% for the first quarter of 2015, fourth quarter of 2014, and first quarter of 2014, respectively.

BALANCE SHEET SUMMARY

Total Assets

Total assets at March 31, 2015 increased $17.5 million, or 2.0%, to $911.4 million compared with $894.0 million at December 31, 2014, and increased $149.0 million, or 19.5%, compared with $762.5 million at March 31, 2014.

Investment Securities

Total investment portfolio increased $5.4 million, or 8.6%, to $68.0 million at March 31, 2015 compared with $62.6 million at December 31, 2014 primarily due to the purchase of $7.4 million in investment securities during the first quarter offset by a principal pay-down of $1.4 million. Investment portfolio at March 31, 2015 increased $851,000, or 1.3%, compared with $67.1 million at March 31, 2014. Yield on investment securities was 1.78%, 1.78%, and 1.76% for the first quarter of 2015, fourth quarter of 2014, and first quarter of 2014, respectively.

Loans

Gross loan receivable, net of deferred costs and fees, increased $26.7 million, or 3.6%, to $759.2 million at March 31, 2015 compared with $732.5 million at December 31, 2014 and increased $131.8 million, or 21.0%, compared with $627.4 million at March 31, 2014. Total new loan origination during the first quarter of 2015 was $96.2 million.

The following table lists the gross loan balances excluding unearned loan fees and allowance for loan losses by type:

Loan categories (in thousands)
			March 31, 2015				Dec. 31, 2014				Percentage Change				March 31, 2014				Percentage Change
Real estate loans			$	443,252			$	417,667			6.1	%			$	347,307			27.6	%
Home Mortgage Loans				111,563				115,423			-3.3	%				100,807			10.7	%
SBA loans				99,916				96,705			3.3	%				81,358			22.8	%
Commercial Industrial Loans				75,039				72,248			3.9	%				67,487			11.2	%
Consumer Loans				29,324				30,303			-3.2	%				30,196			-2.9	%
	Gross Loans Receivables			759,094				732,345			3.7	%				627,155			21.0	%
Held for sale loans				18,426				17,522			5.2	%				4,315			327.0	%
	Total Gross Loans		$	777,520			$	749,867			3.7	%			$	631,470			23.1	%

Deposits

Total deposit increased $15.1 million, or 2.0%, to $817.9 million at March 31, 2015 compared with $802.8 million at December 31, 2014, and increased $139.5 million, or 20.6%, compared with $678.4 million at March 31, 2014. Demand deposit balance increased $6.5 million to $208.6 million, or 3.2%, compared with $202.4 million at December 31, 2014, and increased $40.1 million, or 23.8%, compared with $168.7 million at March 31, 2014. The ratio of demand deposits to total deposits was 25.5%, 25.2%, and 24.9% at March 31, 2015, December 31, 2014, and March 31, 2014, respectively.

The following table lists the deposit mix by period:

Deposit mix (in thousands)
			March 31, 2015								December 31, 2014								March 31, 2014
			Amount				Percentage				Amount				Percentage				Amount				Percentage
Demand deposits			$	208,850			25.5	%			$	202,400			25.2	%			$	168,741			24.9	%
Now accounts				7,712			0.9	%				5,941			0.7	%				6,806			1.0	%
Money market accounts				177,162			21.7	%				168,858			21.0	%				129,925			19.2	%
Savings				6,680			0.8	%				6,366			0.8	%				6,506			1.0	%
CD less than $100K				99,821			12.2	%				103,323			12.9	%				98,210			14.5	%
CD over $100K				228,885			28.0	%				233,940			29.1	%				183,208			27.0	%
State & Broker CDs				88,800			10.9	%				82,000			10.2	%				84,981			12.5	%
	Total deposits		$	817,910			100.0	%			$	802,828			100.0	%			$	678,377			100.0	%

Capital

The following table illustrates Pacific City Bank capital ratios and per share information for Pacific City Financial Corporation:

Capital Ratios (in thousands except per share information)
			March 31, 2015					December 31, 2014					March 31, 2014
Tier 1 Leverage Capital Ratio (Bank)				9.56	%				9.58	%				10.79	%
Tier 1 Risk-Based Capital Ratio (Bank)				11.79	%				12.09	%				13.71	%
Total Risk-Based Capital Ratio (Bank)				13.04	%				13.34	%				14.97	%
Tangible Common Equity to Tangible Assets (Consolidate)				9.84	%				9.67	%				9.28	%
Tangible Common Equity per Common Share (Consolidate)			$	9.17				$	8.85				$	7.68

ASSET QUALITY

Nonperforming Loans

The balance of nonperforming loans (“NPL”) at March 31, 2015 decreased $848,000 to $5.6 million compared with the previous quarter primarily due to the pay-off of $636,000 in nonperforming loans. The NPL balance decreased $2.3 million compared with $7.9 million in the year-ago quarter primarily due to the $1.8 million pay-off of nonperforming loans, $2.2 million in note sales, $955,000 in charged-offs, and $132,000 in transfer to OREO, partially offset by an addition of $3.3 million.

The nonperforming loans to gross loans ratio decreased 14 bps to 0.74% at March 31, 2015 compared with 0.88% at December 31, 2014, and decreased 51 bps compared with 1.25% at March 31, 2014.

There was no OREO balance at March 31, 2015 and December 31, 2014 compared with $1.2 million at March 31, 2014.

Classified Loans

Classified loans at March 31, 2015 decreased $891,000, or 8.5%, to $9.5 million compared with $10.4 million at December 31, 2014, and decreased $6.5 million, or 40.5%, compared with $16.0 million at March 31, 2014.

Classified assets to total assets ratio decreased 12 bps to 1.05% at March 31, 2015 compared with 1.17% at December 31, 2014, and decreased 120 bps compared with 2.25% at March 31, 2014.

Loan Loss Provision

The provision for loan losses for the first quarter of 2015 was a reversal of $284,000 compared with a provision of $675,000 in the previous quarter, and a reversal of $386,000 for the year-ago quarter. During the first quarter of 2015, the Company recognized a net recovery of $232,000 in charged off loans compared with a net charge-off of $1.2 million in the fourth quarter of 2014, and a net charge-off of $346,000 in the first quarter of 2014. Annualized net charge-off ratio decreased 74 basis points to a net recovery of -0.12% in the first quarter of 2015 compared with 0.62% in the previous quarter and decreased 34 basis points compared with 0.22% in the year-ago quarter.

The allowance for loan losses to total gross loans ratio was 1.24% at March 31, 2015 compared with 1.29% at December 31, 2014 and 1.89% at March 31, 2014.

The following tables provide a detail of non-performing assets, non-performing loans, classified assets and classified loans.

Non-performing assets (Dollars in thousands)
					Mar. 31, 2015					Dec. 31, 2014					% Change				Mar. 31, 2014					% Change
Non-performing loans (NPL)					$	5,604				$	6,452				-13.1	%			$	7,856				-28.7	%
	Non-performing TDR (included in NPL)				$	4,971				$	5,229				-4.9	%			$	4,339				14.6	%
Gross loans including deferred loan fees/cost					$	759,224				$	732,520				3.6	%			$	627,434				21.0	%
NPL/Gross loans						0.74	%				0.88	%			-16.2	%				1.25	%			-41.0	%
OREO					$	-				$	-				-				$	1,170				-100.0	%
Performing TDR					$	2,981				$	3,057				-2.5	%			$	7,541				-60.5	%
NPA (NPL+OREO)					$	5,604				$	6,452				-13.1	%			$	9,026				-37.9	%
Total assets					$	911,426				$	893,860				2.0	%			$	762,454				19.5	%
NPA (NPL+OREO)/Gross loans						0.74	%				0.88	%			-16.2	%				1.44	%			-48.7	%
NPA (NPL+OREO)/Total assets						0.61	%				0.72	%			-14.8	%				1.18	%			-48.1	%

Non performing loans composition (Dollars in thousands)
				Mar. 31, 2015				Dec. 31, 2014				Percentage Change				Mar. 31, 2014				Percentage Change
Real estate loans				$	91			$	534			-83.0	%			$	1,408			-93.5	%
Commercial and industrial loans					3,732				3,995			-6.6	%				4,054			-7.9	%
SBA loans					1,730				1,832			-5.6	%				2,357			-26.6	%
Consumer loans & others					51				91			-44.0	%				37			37.8	%
				$	5,604			$	6,452			-13.1	%			$	7,856			-28.7	%
Classified loans (Dollars in thousands)
				Mar. 31, 2015				Dec. 31, 2014				Percentage Change				Mar. 31, 2014				Percentage Change
Substandard (Classified)				$	9,536			$	10,427			-8.5	%			$	16,015			-40.5	%
Special mention					2,239				2,307			-2.9	%				6,812			-67.1	%
Total criticized					11,775				12,734			-7.5	%				22,827			-48.4	%
Watch					19,424				19,558			-0.7	%				17,743			9.5	%
Total problem loans				$	31,199			$	32,292			-3.4	%			$	40,570			-23.1	%

Classified assets (Dollars in thousands)
				Mar. 31, 2015					Dec. 31, 2014					% Change				Mar. 31, 2014					% Change
Classified assets				$	9,536				$	10,427				-8.5	%			$	17,185				-44.5	%
Classified loans/Gross loans					1.26	%				1.42	%			-11.3	%				2.55	%			-50.6	%
Classified loans + Mention/Gross loans					1.55	%				1.74	%			-10.9	%				3.64	%			-57.4	%
Classified loans + Mention+Watch/Gross loans					4.11	%				4.41	%			-6.8	%				6.47	%			-36.5	%
Tier 1 + ALLL				$	97,901				$	96,081				1.9	%			$	91,613				6.9	%
Classified loans/Tier 1 + ALLL					9.74	%				10.85	%			-10.2	%				17.48	%			-44.3	%
Classified assets/Tier 1 + ALLL					9.74	%				10.85	%			-10.2	%				18.76	%			-48.1	%
Classified assets/Total assets					1.05	%				1.17	%			-10.3	%				2.25	%			-53.3	%

About Pacific City Financial Corporation

Headquartered in Los Angeles, California, Pacific City Financial Corporation is the parent company of Pacific City Bank, a full-service commercial bank with nine branch offices and six loan production offices in Lynwood and Bellevue, Washington; Chicago, Illinois; Annandale, Virginia;, Atlanta, Georgia; and Palisades Park, New Jersey. Pacific City Bank specializes in commercial banking for small to medium-size businesses by providing commercial real estate loans, small business loans and line of credit, trade finance loans, auto loans, residential mortgage loans, and SBA loans. Pacific City Bank serves a diverse customer base through its branches in the Greater Los Angeles Area and its Loan Production Offices in six States.

Safe Harbor Statement

This press release may contain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from the projected, including descriptions of plans or objectives of its management for future operations, products or services, and forecasts of its revenues, earnings or other measures of economic performance. Forward-looking statements 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.”

Pacific City Financial Corporation
Consolidated Balance Sheets (Unaudited)
(In thousands)
					March 31, 2015					December 31, 2014					% change				March 31, 2014					% change
Assets
	Cash and due from banks				$	12,632				$	13,028				-3.0	%			$	19,607				-35.6	%
	Interest-bearing deposits in financial institutions					37,900					54,508				-30.5	%				31,323				21.0	%
		Total cash and cash equivalents				50,532					67,536				-25.2	%				50,930				-0.8	%
	Investment Securities, available-for-sale					54,284					49,645				9.3	%				57,986				-6.4	%
	Investment Securities, held-to-maturity					13,681					12,941				5.7	%				9,128				49.9	%
		Total investment securities				67,965					62,586				8.6	%				67,114				1.3	%
	Loans held for sale					18,426					17,522				5.2	%				4,315				327.0	%
	Loans receivable, net of deferred loan costs (fees)					759,224					732,520				3.6	%				627,434				21.0	%
	Less: allowance for loan losses					(9,381	)				(9,432	)			-0.5	%				(11,874	)			-21.0	%
		Net loans receivables				749,843					723,088				3.7	%				615,560				21.8	%
	Premises and equipment, net					1,881					2,032				-7.4	%				1,997				-5.8	%
	Other real estate owned, net					-					-				NA					1,170				-100.0	%
	Federal Home Loan Bank and other bank stock					4,036					4,036				0.0	%				3,170				27.3	%
	Deferred tax assets, net					5,931					6,534				-9.2	%				7,965				-25.5	%
	Excess service assets					6,989					6,817				2.5	%				5,961				17.2	%
	Accrued interest receivables					2,133					2,085				2.3	%				1,831				16.5	%
	Others					3,690					1,724				114.0	%				2,441				51.2	%
	Total assets				$	911,426				$	893,960				2.0	%			$	762,454				19.5	%
Liabilities
	Deposits
		Noninterest-bearing demand			$	208,850				$	202,400				3.2	%			$	168,741				23.8	%
		Savings, NOW and money market accounts			$	191,554				$	181,165				5.7	%			$	143,238				33.7	%
		Time deposits under $250,000				252,984					249,937				1.2	%				223,446				13.2	%
		Time deposits $250,000 and over				164,522					169,326				-2.8	%				142,952				15.1	%
		Total deposits				817,910					802,828				1.9	%				678,377				20.6	%
	Borrowings					-					-				-					853				(1.00	)
	Accrued interest payable					1,109					1,174				-5.5	%				1,071				3.5	%
	Other liabilities					2,754					3,533				-22.0	%				3,028				-9.0	%
	Total liabilities					821,773					807,535				1.8	%				683,329				20.3	%
Capital
	Preferred stock & warrant					-					-				-					8,354				(1.00	)
	Common stock					84,345					84,229				0.1	%				68,700				22.8	%
	Additional paid in capital					2,386					2,420				-1.4	%				2,324				2.7	%
	Retained earnings					2,927					-				-					361				7.11
	OCI					(5	)				(224	)			-97.8	%				(614	)			-99.2	%
	Total capital					89,653					86,425				3.7	%				79,125				13.3	%
	Total liabilities & capital				$	911,426				$	893,960				2.0	%			$	762,454				19.5	%

Pacific City Financial Corporation
Consolidated Income Statements (Unaudited)
(Dollars in thousands, except share and per share data)
		Three Months Ended
		March 31, 2015					December 31, 2014					Percentage Change				March 31, 2014				Percentage Change
Interest income
Interest and fees on loans		$	9,626				$	9,726				-1.0	%			$	8,116			18.6	%
Interest on investments			288					271				6.3	%				296			-2.7	%
Interest on others			101					103				-1.9	%				78			29.5	%
Total interest income			10,015					10,100				-0.8	%				8,490			18.0	%
Interest expense
Interest on deposits			1,482					1,392				6.5	%				1,185			25.1	%
Interest on borrowings			-					-				-					13			(1.00	)
Total interest expenses			1,482					1,392				6.5	%				1,198			23.7	%
Net interest income			8,533					8,708				-2.0	%				7,292			17.0	%
(Reversal) Provision for loans loss			(284	)				675				-142.0	%				(386	)		-26.5	%
Net interest income after PLL			8,817					8,033				9.8	%				7,678			14.8	%
Non-interest income
Gain on sale of SBA loans			1,515					1,651				-8.3	%				1,227			23.4	%
Gain on sale of HM loans			300					13				2131.6	%				45			570.3	%
Service charges on deposits			358					359				-0.3	%				307			16.6	%
Loans servicing fees			558					472				18.2	%				457			22.2	%
Net gain (loss) on OREO			-					(0	)								10			-100.0	%
Other			205					232				-11.4	%				144			42.2	%
Total non-interest income			2,936					2,727				7.6	%				2,190			34.0	%
Non-interest expense
Employee salaries & benefits			4,016					4,043				-0.7	%				3,617			11.0	%
Occupancies and fixed assets			848					836				1.4	%				754			12.4	%
Legal & professional			682					623				9.5	%				331			106.0	%
FDIC assessment			122					109				11.6	%				91			33.6	%
Marketing expenses			275					170				61.5	%				162			69.5	%
Data and item processing expenses			219					213				2.9	%				193			13.6	%
Loan related expenses			134					182				-26.1	%				163			-17.5	%
Others			471					535				-12.0	%				447			5.3	%
Total non-interest expenses			6,766					6,711				0.8	%				5,758			17.5	%
Net income before tax			4,986					4,049				23.1	%				4,110			21.3	%
Income tax provision			2,058					1,691				21.7	%				1,625			0.0	%
Net income after tax		$	2,928				$	2,358				24.2	%			$	2,485			17.8	%
Dividend, accretion of disc, & interest on dividend			-					-				-					(156	)		-100.0	%
Net income available for common shareholders		$	2,928				$	2,358				24.2	%			$	2,329			25.7	%
Earnings (loss) per common shares
Basic		$	0.30				$	0.24				24.1	%			$	0.25			18.5	%
Diluted		$	0.30				$	0.24				24.2	%			$	0.25			18.1	%
Average shares outstanding
Basic			9,769,386					9,765,573									9,210,248
Diluted			9,812,741					9,816,940									9,220,929

Pacific City Financial Corporation
Average Balance, Average Yield, and Average Rate
(Dollars in thousands)
				Three Months Ended
				March 31, 2015													December 31, 2014													March 31, 2014
				Average Balance					Interest Income/ Expense				Average Yield/ Rate				Average Balance					Interest Income/ Expense				Average Yield/ Rate				Average Balance					Interest Income/ Expense				Average Yield/ Rate
Assets
Interest-earning assets:
	Gross loans, net of deferred loan fees			$	765,181				$	9,626			5.10	%			$	742,820				$	9,727			5.20	%			$	621,360				$	8,116			5.30	%
	US government agencies				7,102					18			1.01	%				4,591					13			1.13	%				3,050					13			1.70	%
	Mortgage backed securities				35,876					185			2.06	%				34,047					173			2.03	%				35,163					165			1.88	%
	Collateralized mortgage obligation				20,650					78			1.51	%				21,944					83			1.51	%				29,119					115			1.58	%
	Muni bonds				1,144					6			2.10	%				295					3			4.07	%				247					2			3.24	%
	Interest bearing deposit & others				43,673					27			0.25	%				47,067					30			0.25	%				36,883					23			0.25	%
	Total interest-earning assets			$	873,626				$	9,940			4.61	%			$	850,764				$	10,029			4.68	%			$	725,822				$	8,434			4.71	%
Noninterest-earning assets:
	Cash and cash equivalents			$	14,233												$	14,550												$	17,537
	Allowances for loan losses				(9,607	)												(10,194	)												(12,465	)
	Other assets				23,205													22,930													23,625
				$	27,831												$	27,286												$	28,697
Total assets				$	901,457												$	878,050												$	754,519
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
	Deposits:
	Money market & NOW accounts			$	184,783				$	385			0.84	%			$	171,111				$	358			0.83	%			$	133,606				$	251			0.76	%
	Savings				6,408					5			0.32	%				6,235					5			0.32	%				6,846					260			15.40	%
	Time deposits less than $100K				120,007					483			1.63	%				136,709					443			1.29	%				132,463					231			0.71	%
	Time deposits $100K or more				299,197					609			0.83	%				278,811					586			0.83	%				236,398					443			0.76	%
				$	610,395				$	1,482			0.98	%			$	592,866				$	1,392			0.93	%				509,313					1,185			0.94	%
	Borrowings:
	Subordinated debentures				-					-			-					-					-			-					855					13			0.06
				$	-				$	-			-				$	-				$	-			-				$	855				$	13			6.24	%
	Total interest-bearing liabilities			$	610,395				$	1,482			0.98	%			$	592,866				$	1,392			0.93	%			$	510,168					1,198			0.95	%
Noninterest-bearing liabilities:
	Demand deposits			$	197,614												$	195,057												$	162,235
	Other liabilities				5,129													4,695													4,032
				$	202,743												$	199,752												$	166,267
Total liabilities				$	813,138												$	792,618												$	676,435
Stockholders' equity				$	88,319												$	85,432												$	78,084
Total liabilities and stockholders' equity				$	901,457												$	878,050												$	754,519
Net interest income									$	8,458												$	8,637												$	7,236
Cost of funds													0.74	%												0.70	%												0.72	%
Net interest spread													3.63	%												3.75	%												3.76	%
Net interest margin													3.93	%												4.03	%												4.04	%