Pacific City Financial Corporation Reports Continued Strong 2016 First Quarter Financial Results

Pacific City Financial Corporation (the “Company”) (OTC Pink: PFCF), the holding company of Pacific City Bank, today reported net income of $3.0 million, or $0.27 per diluted common share, compared with $2.9 million, or $0.27 per diluted common share, for the fourth quarter 2015 and $2.9 million, or $0.27 per diluted common share, for the first quarter 2015.

2016 First Quarter Highlights

• Net income totaled $3.0 million, or $0.27 per diluted common share
• Loan origination during the first quarter increased $60.5 million to $156.7 million compared with $96.2 million in the year-ago quarter
• Total assets increased $180.9 million, or 19.8%, to $1.1 billion at March 31, 2016 from $911.4 million at March 31, 2015
• Gross loans, net of unearned fee/cost, increased $119.5 million, or 15.7%, to $878.7 million at March 31, 2016 from $759.2 million at March 31, 2015
• Total deposits increased $164.5 million, or 20.1%, to $982.4 million at March 31, 2016 from $817.9 million at March 31, 2015
• Non-performing assets decreased $2.9 million, or 52.3%, to $2.7 million at March 31, 2016 from $5.6 million at March 31, 2015
• Declared quarterly cash dividend of $0.03 per common share

"We are excited to report another solid quarterly financial performance. Our strong net income was complemented by solid growth in loan and deposit balances during the 2016 first quarter. We are pleased with our 58% efficiency ratios during the current environment of heightened regulatory expenses,” said Haeyoung Cho, President and CEO. “We are starting the year strong and we continue to execute our commitment to increase shareholders’ value through solid growth, strategic expansion, and prudent capital management.”

2016 First Quarter Financial Highlights
(dollars in thousands, except per share data)
			At or for the Three Months Ended
			Mar. 31, 2016				Dec. 31, 2015				% change			Mar. 31, 2015				% change
Net income			$	2,987			$	2,904			2.9	%		$	2,928			2.0	%
Earnings per common share (diluted)*			$	0.27			$	0.27			0.0	%		$	0.27			0.0	%
Net interest income			$	10,698			$	9,856			8.5	%		$	8,533			25.4	%
Provision (negative provision) for loan loss			$	491			$	432			13.7	%		$	(283	)		-273.5	%
Non-interest income			$	2,968			$	3,137			-5.4	%		$	2,936			1.1	%
Non-interest expense			$	7,982			$	7,546			5.8	%		$	6,766			18.0	%
Total assets			$	1,092,320			$	1,042,517			4.8	%		$	911,427			19.8	%
Loans receivable, net of allowance and loan fee/cost			$	868,772			$	835,024			4.0	%		$	749,843			15.9	%
Total deposits			$	982,381			$	939,439			4.6	%		$	817,911			20.1	%
Return on average assets				1.14	%			1.10	%						1.32	%
Return on average stockholders' equity				11.96	%			11.83	%						13.44	%
Net interest margin				4.19	%			3.82	%						3.93	%
Efficiency ratio				58.41	%			58.08	%						59.00	%
Tangible common equity to tangible assets				9.33	%			9.40	%						9.84	%
Tangible common equity per common share *			$	9.38			$	9.09						$	8.34
Tier 1 leverage ratio (consolidated)				9.62	%			9.40	%						10.09	%
* 10% stock dividend effected on January 29, 2016 reflected retroactively.

OPERATING RESULTS FOR THE 2016 FIRST QUARTER

Net Income Summary

Net income in the first quarter of 2016 increased $0.1 million to $3.0 million compared with $2.9 million in the previous quarter and a year-ago quarter. Diluted earnings per share was $0.27 for the first quarter of 2016 which was the same compared with previous and a year-ago quarters.

Net Interest Income and Net Interest Margin

Net interest income before provision for loan losses in the first quarter of 2016 increased $842,000, or 8.5%, to $10.7 million compared with the previous quarter, and increased $2.2 million, or 25.4%, compared with the year-ago quarter. The increase was primarily due to a steady growth on the balance of loan portfolio.

The interest income on loans increased $808,000, or 7.5%, to $11.6 million for the first quarter of 2016 compared with the previous quarter and increased $2.0 million, or 20.9%, compared with the year-ago quarter primarily due to an increase in average loan balance. The average gross loan balance was $900.0 million in the first quarter of 2016 compared with $825.9 million in the previous quarter, and $765.2 million in the year-ago quarter. The Bank originated $156.7 million in new loans during the first quarter of 2016 compared with $144.8 million for the previous quarter, and $96.2 million for the year-ago quarter.

The loan yield for the first quarter of 2016 at 5.20% did not change compared with the previous quarter. However, it increased 10 bps compared with 5.10% for the year-ago quarter.

Below is a table of fixed and variable interest rate loans accompanied with weighted average contractual rates:

			March 31, 2016						December 31, 2015						March 31, 2015
			% to Gross Loans *			WAVG Contractual Rate			% to Gross Loans *			WAVG Contractual Rate			% to Gross Loans *			WAVG Contractual Rate
Fixed rate loans			35.2	%		5.12	%		37.8	%		5.10	%		45.6	%		5.11	%
Variable rate loans			64.8	%		4.49	%		62.2	%		4.53	%		54.4	%		4.41	%
* Including LHFS

The interest income on investment securities increased $31,000, or 6.5%, to $506,000 compared with $475,000 of the previous quarter and increased $219,000, or 75.7%, compared with $288,000 for the year-ago quarter. The increase was primarily due to an increase in investment portfolio balance resulting from deployment of cash to investment securities.

Total interest expense for the first quarter of 2016 decreased $51,000, or 3.2%, to $1.6 million compared with the previous quarter. However, it increased $85,000, or 5.7%, compared with $1.5 million for the year-ago quarter. Interest expense increase was primarily due to an increase of $67.5 million in average balance of interest bearing deposits to $676.1 million compared with $610.4 million in the year-ago quarter. The cost of interest-bearing deposits remained at 0.93% compared with the previous quarter, and decreased 5 bps compared with 0.98% in the year-ago quarter.

The cost of total deposit including non-interest bearing deposits was 0.67% for the first quarter of 2016 compared with 0.68% for the fourth quarter of 2015 and 0.74% for the first quarter of 2015.

Net interest margin increased 37 bps to 4.19% in the first quarter of 2016 compared with 3.82% in the previous quarter and increased 26 bps compared with 3.93% in the year-ago quarter. The increase in net interest margin during the 2016 first quarter was primarily due to a $72.2 million decrease to $16.1 million in average cash Fed Funds sold compared with $88.3 million average balance in the 2015 fourth quarter and a decrease of $27.6 million compared with 2015 first quarter.

Loan Loss Provision

The provision for loan losses in the first quarter of 2016 was $491,000 compared with $432,000 in the previous quarter and a negative provision of $283,000 in the year-ago quarter. The increase in provision expenses compared with the previous quarter was primarily due to an increase in gross loan balance. The allowance for loan losses to gross loan ratios was 1.13% at March 31, 2016 compared with 1.11% at December 31, 2015 and 1.24% at March 31, 2015.

During the first quarter of 2016, the Company recognized a net recovery of $107,000 in loans compared with a net charge-off of $285,000 in the fourth quarter 2015 and a net recovery of $232,000 in the first quarter of 2015.

Non-interest Income

Non-interest income for the first quarter of 2016 decreased $169,000 to $3.0 million compared with $3.1 million in the previous quarter and increased $32,000 compared with the year-ago quarter. The decrease compared with the previous quarter was primarily due to a decrease of $239,000 in gain on sale of SBA loans.

The Bank originated $39.1 million in SBA loans and sold $26.1 million of guaranteed portion during the first quarter of 2016 compared with $41.9 million in origination and $33.7 million sold during the previous quarter, and $27.0 million in origination and sold $19.8 million during the year-ago quarter. The Bank sold $4.0 million in residential mortgage loans in the first quarter of 2016 compared with $1.8 million during the previous quarter and $16.3 million during first quarter of 2015.

Non-interest Expenses

Non-interest expenses for the first quarter of 2016 increased $435,000, or 5.8%, to $8.0 million compared with $7.5 million for the previous quarter and increased $1.2 million, or 18.0%, compared with $6.8 million for the year-ago quarter. The increase in non-interest expenses compared with the previous quarter was primarily due to an increase of $444,000 in salary and benefits expenses stemming from an increase in the number of employees and seasonal increase in the recognition of unused vacation accrual expenses.

The increase in non-interest expenses compared with the year-ago quarter was primarily due to an increase of $749,000 in salary and benefits expenses, an increase of $200,000 in occupancies and fixed assets expenses, and an increase of $138,000 in professional services. The increase in salary and benefits expenses was primarily due to an increase in headcount in conjunction with asset growth.

The Company’s efficiency ratio was 58.41% in the first quarter of 2016 compared with 58.08% for the fourth quarter 2015, and 59.00% for the first quarter 2015.

Income Tax Provision

The Company’s effective income tax rate was 42.5% for the first quarter of 2016 compared with 42.1% for the fourth quarter of 2015 and 41.3% for the first quarter of 2015.

BALANCE SHEET SUMMARY

Total Assets

Total assets at March 31, 2016 increased $49.8 million, or 4.8%, to $1,092.3 million compared with $1,042.5 million at December 31, 2015, and increased $180.9 million, or 19.8%, compared with $911.4 million at March 31, 2015.

Loans

Gross loan receivable, net of deferred costs and fees, increased $34.3 million, or 4.1%, to $878.7 million at March 31, 2016 compared with $844.4 million at December 31, 2015, and increased $119.5 million, or 15.7%, compared with $759.2 million at March 31, 2015.

During the first quarter of 2016, the Company originated $156.7 million in loans and sold $26.1 million in SBA and $4.0 million in residential mortgage loans. During the quarter, loan principal reduction was $65.9 million and principal charge-off was $20,000.

The following table illustrates details of gross loan balance by type:

Loan type (in thousands)
			Mar. 31, 2016			Dec. 31, 2015			Percentage Change			Mar. 31, 2015			Percentage Change
Real estate loans			$	522,776		$	487,545		7.2	%		$	443,253		17.9	%
Residential mortgage loans				116,214			129,508		-10.3	%			111,562		4.2	%
SBA loans				117,952			112,397		4.9	%			99,916		18.1	%
Commercial industrial loans				91,779			85,692		7.1	%			75,039		22.3	%
Consumer loans				29,791			29,134		2.3	%			29,324		1.6	%
Deferred loan fees/costs				203			93		118.3	%			130		56.2	%
	Gross loans receivables			878,715			844,369		4.1	%			759,224		15.7	%
Loans held for sale				27,974			1,941		1341.2	%			18,426		51.8	%
	Total loans		$	906,689		$	846,310		7.1	%		$	777,650		16.6	%

Investment Securities

Total investment securities portfolio balance at March 31, 2016 decreased $1.9 million, or 1.9%, to $100.3 million compared with $102.2 million at December 31, 2015, and increased $32.3 million, or 47.5%, compared with $68.0 million at March 31, 2015. The decrease in investment securities portfolio compared with the previous quarter was primarily due to $2.9 million in normal principal pay-downs, partially offset by an increase of $1.2 million in fair market value. The portfolio balance increase compared with a year-ago quarter was primarily due to purchases of $45.0 million in investment securities, partially offset by principal pay-downs of $12.6 million.

Deposits

Total deposit balance increased $42.9 million, or 4.6%, to $982.4 million at March 31, 2016 compared with $939.4 million at December 31, 2015, and increased $164.5 million, or 20.1%, compared with $817.9 million at March 31, 2015. The demand deposit to total deposit ratio was 29.6% at March 31, 2016 compared with 28.5% at December 31, 2015, and 25.5% at March 31, 2015.

The table below consists of deposit mix by period:

Deposit mix (in thousands)
			March 31, 2016						December 31, 2015						March 31, 2015
			Amount			Percentage			Amount			Percentage			Amount			Percentage
Demand deposits			$	290,956		29.6	%		$	267,934		28.5	%		$	208,850		25.5	%
Now accounts				8,951		0.9	%			7,945		0.8	%			7,713		0.9	%
Money market accounts				213,177		21.7	%			223,471		23.8	%			177,162		21.7	%
Savings				8,434		0.9	%			8,263		0.9	%			6,680		0.8	%
Time deposits under $250K				229,573		23.4	%			232,034		24.7	%			230,984		28.2	%
Time deposits of $250K and over				108,434		11.0	%			108,791		11.6	%			97,722		11.9	%
State & Broker CDs				122,856		12.5	%			91,001		9.7	%			88,800		10.9	%
	Total deposits		$	982,381		100.0	%		$	939,439		100.0	%		$	817,911		100.0	%

Stockholders’ Equity

Stockholders’ equity increased $3.9 million to $101.9 million at March 31, 2016 compared with $98.0 million at December 31, 2015 and increased $12.3 million compared with $89.7 million at March 31, 2015. On March 17, 2016, the Company paid quarterly cash dividend of $0.03 per common share.

CREDIT QUALITY

Non-performing Assets

Non-performing loans (“NPL”) balance decreased $0.2 million to $2.2 million at March 31, 2016 compared with $2.4 million at December 31, 2015, and decreased $3.4 million compared with $5.6 million at March 31, 2015. Non-performing loans to gross loans ratios were 0.25% at March 31, 2016 compared with 0.28% at December 31, 2015 and 0.74% at March 31, 2015.

The OREO balance at March 31, 2016 was $506,000 compared with none at December 31, 2015 and March 31, 2015.

The following tables summarize composition of non-performing loans and non-performing assets:

Non-performing loans composition (Dollars in thousands)
			Mar. 31, 2016			Dec. 31, 2015			Percentage Change			Mar. 31, 2015			Percentage Change
Real estate loans			$	74		$	79		-6.3	%		$	91		-18.7	%
Commercial and industrial loans				636			706		-9.9	%			3,732		-83.0	%
SBA loans				1,447			1,552		-6.8	%			1,730		-16.4	%
Consumer loans & others				11			36		-69.4	%			51		-78.4	%
			$	2,168		$	2,373		-8.6	%		$	5,604		-61.3	%

Non-performing assets (Dollars in thousands)
			Mar. 31, 2016				Dec. 31, 2015				% Change			Mar. 31, 2015				% Change
Non-performing loans (NPL)			$	2,168			$	2,373			-8.6	%		$	5,604			-61.3	%
Non-performing TDR (included in NPL)			$	1,414			$	1,562			-9.5	%		$	4,971			-71.6	%
Gross loans including deferred loan fees/cost			$	878,715			$	844,369			4.1	%		$	759,224			15.7	%
NPL/Gross loans				0.25	%			0.28	%						0.74	%
OREO			$	506			$	-			N/A			$	-			N/A
Performing TDR			$	2,449			$	2,524			-3.0	%		$	2,981			-17.8	%
NPA (NPL+OREO)			$	2,674			$	2,373			12.7	%		$	5,604			-52.3	%
Total assets			$	1,092,320			$	1,042,517			4.8	%		$	911,427			19.8	%
NPA (NPL+OREO)/Gross loans				0.30	%			0.28	%						0.74	%
NPA (NPL+OREO)/Total assets				0.24	%			0.23	%						0.61	%

Classified Assets

Classified loans at March 31, 2016 decreased $439,000 to $6.1 million compared with $6.5 million at December 31, 2015, and decreased $3.4 million compared with $9.5 million at March 31, 2015. Classified assets to total assets ratio were 0.60% at March 31, 2016 compared with 0.63% at December 31, 2015 and 1.05% at March 31, 2015.

The following tables provide some detail on classified loans and classified assets.

Classified loans (Dollars in thousands)
		Mar. 31 2016			Dec. 31, 2015			Percentage Change			Mar. 31, 2015			Percentage Change
Substandard (Classified)		$	6,098		$	6,537		-6.7	%		$	9,536		-36.1	%
Special mention			6,122			6,158		-0.6	%			2,239		173.4	%
Total criticized			12,220			12,695		-3.7	%			11,775		3.8	%
Watch			17,383			17,493		-0.6	%			19,424		-10.5	%
Total problem loans		$	29,603		$	30,188		-1.9	%		$	31,199		-5.1	%

Classified assets (Dollars in thousands)
		Mar. 31, 2016				Dec. 31, 2015				% Change			Mar. 31, 2015				% Change
Classified assets		$	6,604			$	6,537			1.0	%		$	9,536			-30.7	%
Classified loans/Gross loans			0.69	%			0.77	%						1.26	%
Tier 1 + ALLL		$	110,927			$	107,345			3.3	%		$	97,901			13.3	%
Classified assets/Tier 1 + ALLL			5.95	%			6.09	%						9.74	%
Classified assets/Total assets			0.60	%			0.63	%						1.05	%

Capital

The following table illustrates Pacific City Bank capital ratios:

Capital Ratios
			March 31, 2016			December 31, 2015			March 31, 2015
Tier 1 Leverage Capital Ratio (Bank)			9.48	%		9.25	%		9.56	%
Common Equity Tier 1 Capital Ratio (Bank)			11.63	%		12.07	%		11.79	%
Tier 1 Risk-Based Capital Ratio (Bank)			11.63	%		12.07	%		11.79	%
Total Risk-Based Capital Ratio (Bank)			12.80	%		13.25	%		13.04	%

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 ten branch offices and seven loan production offices in Lynwood and Bellevue, Washington; Denver, Colorado, Chicago, Illinois; Annandale, Virginia; Atlanta, Georgia; and Orange County, California. Pacific City Bank specializes in commercial banking for small to medium-size businesses by providing commercial real estate loans, small business loans and lines 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 Fort Lee, New Jersey 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)
(Dollars In thousands)
				March 31, 2016				December 31, 2015				% change			March 31, 2015				% change
Assets
	Cash and due from banks			$	13,173			$	13,511			-2.5	%		$	12,632			4.3	%
	Interest-bearing deposits in financial institutions				51,651				63,439			-18.6	%			37,900			36.3	%
		Total cash and cash equivalents			64,824				76,950			-15.8	%			50,532			28.3	%
	Investment securities, available-for-sale				83,171				84,847			-2.0	%			51,618			61.1	%
	Investment securities, held-to-maturity				17,080				17,338			-1.5	%			16,347			4.5	%
		Total investment securities			100,251				102,185			-1.9	%			67,965			47.5	%
	Loans held for sale				27,974				1,941			1341.2	%			18,426			51.8	%
	Loans receivable, net of deferred loan costs (fees)				878,715				844,369			4.1	%			759,224			15.7	%
	Less: allowance for loan losses				(9,943	)			(9,345	)		6.4	%			(9,381	)		6.0	%
		Net loans receivables			868,772				835,024			4.0	%			749,843			15.9	%
	Premises and equipment, net				3,608				3,613			-0.1	%			1,881			91.8	%
	Other real estate owned, net				506				-			NA				-			NA
	Federal Home Loan Bank and other bank stock				4,922				4,922			0.0	%			4,036			22.0	%
	Deferred tax assets, net				5,660				5,195			9.0	%			5,931			-4.6	%
	Servicing assets				7,609				7,405			2.8	%			6,989			8.9	%
	Accrued interest receivables				2,685				2,590			3.7	%			2,133			25.9	%
	Others				5,509				2,692			104.6	%			3,691			49.3	%
	Total assets			$	1,092,320			$	1,042,517			4.8	%		$	911,427			19.8	%
Liabilities
	Deposits
		Noninterest-bearing demand		$	290,956			$	267,934			8.6	%		$	208,850			39.3	%
		Savings, NOW, and money market accounts			230,562				239,679			-3.8	%			191,555			20.4	%
		Time deposits under $250,000			275,229				256,235			7.4	%			252,984			8.8	%
		Time deposits of $250,000 and over			185,634				175,591			5.7	%			164,522			12.8	%
		Total deposits			982,381				939,439			4.6	%			817,911			20.1	%
	Accrued interest payable				1,471				1,417			3.8	%			1,109			32.6	%
	Other liabilities				6,548				3,621			80.8	%			2,753			137.8	%
	Total liabilities			$	990,400			$	944,477			4.9	%		$	821,773			20.5	%
Capital
	Common stock				96,801				96,074			0.8	%			87,272			10.9	%
	Additional paid in capital				2,179				2,362			-7.7	%			2,387			-8.7	%
	Retained earnings				2,664				-			NA				-			NA
	Other comprehensive income (loss)				276				(396	)		-169.7	%			(5	)		-5620.0	%
	Total capital				101,920				98,040			4.0	%			89,654			13.7	%
	Total liabilities & capital			$	1,092,320			$	1,042,517			4.8	%		$	911,427			19.8	%

Pacific City Financial Corporation
Consolidated Income Statements (Unaudited)
(Dollars in thousands, except share and per share data)
			Three Months Ended
			March 31, 2016			December 31, 2015			Percentage Change			March 31, 2015				Percentage Change
Interest income
	Interest and fees on loans		$	11,639		$	10,831		7.5	%		$	9,626			20.9	%
	Interest on investments			506			475		6.5	%			288			75.7	%
	Interest on others			120			168		-28.6	%			101			18.8	%
	Total interest income			12,265			11,474		6.9	%			10,015			22.5	%
Interest expense
	Interest on deposits			1,565			1,618		-3.3	%			1,482			5.6	%
	Interest on borrowings			2			-		NA				-			NA
	Total interest expenses			1,567			1,618		-3.2	%			1,482			5.7	%
Net interest income				10,698			9,856		8.5	%			8,533			25.4	%
Provision (negative provision) for loan losses				491			432		13.7	%			(283	)		-273.5	%
Net interest income after PLL				10,207			9,424		8.3	%			8,816			15.8	%
Non-interest income
	Gain on sale of SBA loans			1,779			2,018		-11.8	%			1,515			17.4	%
	Gain on sale of residential mortgage loans			44			12		266.7	%			300			-85.3	%
	Service charges on deposits			367			345		6.4	%			358			2.5	%
	Loan servicing fees			545			408		33.6	%			558			-2.3	%
	Other			233			354		-34.2	%			205			13.7	%
	Total non-interest income			2,968			3,137		-5.4	%			2,936			1.1	%
Non-interest expense
	Employee salaries & benefits			4,764			4,321		10.3	%			4,016			18.6	%
	Occupancies and fixed assets			1,047			964		8.6	%			848			23.5	%
	Legal & professional			820			820		0.0	%			682			20.2	%
	FDIC assessment			139			134		3.7	%			122			13.9	%
	Marketing expenses			346			316		9.5	%			275			25.8	%
	Data and item processing expenses			229			220		4.1	%			219			4.6	%
	Loan related expenses			46			117		-60.7	%			134			-65.7	%
	Others			591			654		-9.6	%			470			25.7	%
	Total non-interest expenses			7,982			7,546		5.8	%			6,766			18.0	%
Net income before taxes				5,193			5,015		3.5	%			4,986			4.2	%
Income tax provision				2,206			2,111		4.5	%			2,058			7.2	%
Net income			$	2,987		$	2,904		2.9	%		$	2,928			2.0	%
Earnings per common shares
	Basic		$	0.28		$	0.27					$	0.27
	Diluted		$	0.27		$	0.27					$	0.27
Average shares outstanding
	Basic			10,799,817			10,780,474						10,748,039
	Diluted			10,880,324			10,864,367						10,809,444

Pacific City Financial Corporation
Average Balance, Average Yield, and Average Rate
(Dollars in thousands)
			Three Months Ended
			March 31, 2016										December 31, 2015										March 31, 2015
			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		$	899,753			$	11,639		5.20	%		$	825,871			$	10,831		5.20	%		$	765,181			$	9,626		5.10	%
	US government agencies			23,579				131		2.23	%			21,350				115		2.16	%			7,102				18		1.02	%
	Mortgage backed securities			47,413				246		2.08	%			47,334				239		2.02	%			35,876				185		2.06	%
	Collateralized mortgage obligation			22,922				93		1.63	%			22,358				87		1.55	%			20,650				79		1.52	%
	Muni bonds			7,506				36		1.90	%			7,256				34		1.89	%			1,144				6		2.17	%
	Interest bearing deposit & others			16,113				20		0.49	%			88,300				62		0.28	%			43,673				27		0.25	%
	Total interest-earning assets		$	1,017,286			$	12,165		4.81	%		$	1,012,469			$	11,368		4.45	%		$	873,626			$	9,941		4.61	%
Noninterest-earning assets:
	Cash and cash equivalents		$	14,911									$	14,755									$	14,233
	Allowances for loan losses			(9,628	)									(9,233	)									(9,607	)
	Other assets			27,259										25,050										23,205
			$	32,542									$	30,572									$	27,831
Total assets			$	1,049,828									$	1,043,041									$	901,457
Liabilities and Stockholders' Equity
Interest-bearing liabilities:
	Deposits:
	Money market & NOW accounts		$	228,609			$	491		0.86	%		$	233,850			$	504		0.86	%		$	184,783			$	385		0.85	%
	Savings			8,260				6		0.28	%			7,675				6		0.29	%			6,408				5		0.30	%
	Time deposits			439,201				1,068		0.98	%			448,029				1,108		0.98	%			419,204				1,092		1.06	%
			$	676,070			$	1,565		0.93	%		$	689,554			$	1,618		0.93	%		$	610,395			$	1,482		0.98	%
	Borrowings:
	Subordinated debentures			2,040				2		0.45	%			-				-		NA				-				-		NA
			$	2,040			$	2		0.45	%		$	-			$	-		NA			$	-			$	-		NA
	Total interest-bearing liabilities		$	678,110			$	1,567		0.93	%		$	689,554			$	1,618		0.93	%		$	610,395				1,482		0.98	%
Noninterest-bearing liabilities:
	Demand deposits		$	265,507									$	250,760									$	197,614
	Other liabilities			5,780										5,310										5,129
			$	271,287									$	256,070									$	202,743
Total liabilities			$	949,397									$	945,624									$	813,138
Stockholders' equity			$	100,431									$	97,417									$	88,319
Total liabilities and stockholders' equity			$	1,049,828									$	1,043,041									$	901,457
Net interest income							$	10,598									$	9,751									$	8,459
Cost of funds										0.67	%									0.68	%									0.74	%
Net interest spread										3.88	%									3.52	%									3.63	%
Net interest margin										4.19	%									3.82	%									3.93	%

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