SOURCE: Rainier Pacific Financial Group
Rainier Pacific Financial Group, Inc. Reports Third Quarter Results
TACOMA, WA--(Marketwire - October 22, 2008) - Rainier Pacific Financial Group, Inc. (the
"Company") (
For the nine months ended September 30, 2008, the Company's net loss was $489,000, or $0.08 per diluted share, compared to net income of $2.9 million, or $0.49 per diluted share, for the same nine month period in 2007.
The Company's decision to increase the provision for loan losses was prompted by continued slowness in single-family home sales, declining real estate valuations, and the increased level of non-performing real estate construction loans. During the quarter ended September 30, 2008, the Company classified an additional $17.8 million of real estate construction loans as non-performing and placed the loans on non-accrual status. These loans were classified as a result of cash flow problems experienced by local residential builders during the quarter resulting in their inability to fully meet the debt service requirements of the loans. As a result of these additional classifications, a total of $31.8 million in loans were classified as non-performing loans (i.e., loans 90 day or more past due or non-accrual loans) as of September 30, 2008, representing 4.78% of total loans, and consisted of $20.4 million in developed one- to four-family residential lots, $6.9 million in one- to four-family residential construction loans with houses in varying states of completion, and $3.9 million in land for future development. Other non-performing loans at September 30, 2008 comprised of consumer, home equity, commercial business loans totaled $530,000, compared to a combined total of these types of loans of $415,000 at June 30, 2008. Based upon its analysis of the $31.8 million of non-performing loans at September 30, 2008, the Company established a $6.5 million specific allocation of the allowance for loan losses to these loans.
Non-performing assets, which include the previously mentioned non-performing loans, along with repossessed assets and other real estate owned, were $31.9 million, or 3.79% of total assets at September 30, 2008, compared to $14.3 million, or 1.65% of total assets, at June 30, 2008, and $220,000, or 0.02% of total assets, at September 30, 2007.
The ratio of loans more than 30 days delinquent as a percentage of total loans increased to 3.92% at September 30, 2008, compared to 1.07% and 0.28% at June 30, 2008 and September 30, 2007, respectively. Net charge-offs were $328,000 for the quarter ended September 30, 2008, compared to $258,000 for the quarter ended June 30, 2008 and $242,000 for the quarter ended September 30, 2007.
The Company's revenue (i.e., net interest income before provision for loan losses plus non-interest income) for the quarter ended September 30, 2008 was $8.6 million, compared to $9.1 million for the same period a year ago. Net interest income before the provision for loan losses for the quarter ended September 30, 2008 was $6.2 million, compared to $6.7 million for the same period a year ago. For the quarter ended September 30, 2008, the Company's net interest margin was 3.06%, compared to 3.13% and 3.20% for the quarters ended June 30, 2008 and September 30, 2007, respectively. The yield on the Company's interest-earning assets was 6.15% for the quarter ended September 30, 2008, compared to 6.32% and 6.94% for the quarters ended June 30, 2008 and September 30, 2007. For the quarter ended September 30, 2008, the Company's cost of interest-bearing liabilities was 3.34%, compared to 3.51% and 4.15% for the quarters ended June 30, 2008 and September 30, 2007, respectively.
Non-interest income for the quarter ended September 30, 2008 was $2.5 million, or $67,000 more than the $2.4 million during the same period in 2007, primarily due to an increase in gains generated on the sale of single-family mortgages. For the nine months ended September 30, 2008, non-interest income was $7.9 million, or $900,000 more than the $7.0 million earning during the same period in 2007.
Non-interest expenses were $7.0 million for the quarter ended September 30, 2008, or $327,000 less than the $7.3 million during the same period in 2007, as the Company continued to effectively manage its operating expenses. For the nine months ended September 30, 2008, non-interest expenses were $20.9 million, or $700,000 less than the $21.6 million incurred during the same period in 2007.
During the third quarter, the Company continued to price customer deposits conservatively to manage the Company's overall funding costs. For the quarter ended September 30, 2008, the average cost of interest-bearing deposits declined to 2.56%, compared to 2.84% for the quarter ended June 30, 2008 and 3.81% for the quarter ended September 30, 2007. Total deposits were relatively unchanged at $464.1 million at September 30, 2008, compared to $463.7 million at June 30, 2008 and $460.9 million at September 30, 2007. Core deposits (comprised of checking, savings, money market, and individual retirement accounts) were $248.0 million, or 53.4% of total deposits at September 30, 2008, compared to $236.4 million, or 51.3% of total deposits at September 30, 2007. Brokered deposit balances were $64.7 million at September 30, 2008, compared to $61.2 million at June 30, 2008 and $51.0 million at September 30, 2007.
Total loans were $664.2 million at September 30, 2008, compared to $664.0 million at June 30, 2008 and $633.3 million at September 30, 2007. For the quarter ended September 30, 2008, the yield on loans was 6.39%, compared to 6.80% and 7.53% for the quarters ended June 30, 2008 and September 30, 2007, respectively. Total loan originations were $36.4 million during the quarter ended September 30, 2008, compared to $46.1 million for the same quarter a year ago. At September 30, 2008, the loan portfolio consisted of 37.4% commercial real estate loans, 21.3% multi-family real estate loans, 12.9% land development and real estate construction loans, 9.9% one- to four-family real estate loans, 6.7% consumer loans (excluding home equity loans), 6.4% home equity loans, and 5.4% commercial business loans.
The Company sold $11.8 million of fixed-rate one- to four-family residential loans during the quarter ended September 30, 2008, which generated $190,000 in net gains, compared to $5.1 million in loan sales and $60,000 in net gains during the same period in 2007. The portfolio of loans serviced for others increased to $135.5 million at September 30, 2008, compared to $127.8 million and $113.3 million at June 30, 2008 and September 30, 2007, respectively.
The investment securities portfolio (excluding $13.7 million in Federal Home Loan Bank of Seattle stock holdings) at September 30, 2008 was $102.5 million, compared to $132.0 million at June 30, 2008 and $185.7 million at September 30, 2007. The investment securities portfolio contains $58.8 million ($108.3 million par value) of trust preferred pooled securities issued by FDIC-insured financial institutions and insurance companies, $31.9 million of mortgage backed securities, and $11.8 million of municipal bonds. All of the trust preferred securities are investment grade collateralized debt obligations, have paid as agreed, and are classified as available for sale. The current credit and liquidity crisis being experienced in the financial markets over recent calendar quarters has reduced the demand for the securities, resulting in an illiquid market and significant difficulty in determining the securities' fair value. While some of the issuers of the trust preferred securities have reported weaker financial performance since the Company's acquisition of these securities, the majority of these issuers continue to possess acceptable credit risk in management's opinion. Based upon management's evaluation of the underlying issuers and the cash flows of the underlying debt obligations, these securities were determined to be temporarily impaired and their fair value was estimated by management to be $58.8 million, or 54.3% of unamortized cost, as of September 30, 2008. Under U.S. generally accepted accounting principles, the Company has reflected the temporary market value change of the available for sale portfolio, as an unrealized loss of $49.7 million (pre-tax) or $32.8 million net of income tax benefit, as a component of shareholders' equity (i.e., accumulated other comprehensive loss). This unrealized loss does not affect the cash flows or regulatory capital of the Company. Management closely monitors these securities for changes in credit risk, and the Company has the intent and ability to hold these securities until the market value recovers or they mature. Management does not consider the impairment of these securities to be other than temporary. It should be noted, however, that should market conditions deteriorate and the Company determines that all or a portion of its trust preferred pooled securities portfolio are "other than temporarily impaired," it could have a material adverse affect on the Company's future earnings, shareholders' equity, and regulatory capital.
Total shareholders' equity at September 30, 2008 was $57.5 million, compared to $75.5 million at June 30, 2008 and $89.6 million at September 30, 2007. The decline in shareholders' equity was due primarily to the mark-to-market value adjustment to the Company's portfolio of investment securities. During the quarter ended September 30, 2008, the Company purchased and retired 22,350 shares of its outstanding shares of common stock at an average price of $8.21 per share. At September 30, 2008, the Company had the authority to purchase an additional 48,040 shares of common stock under its currently approved stock repurchase program.
The Company's capital ratio (i.e., equity divided by assets) was 6.84% at September 30, 2008, compared to 8.68% and 9.88% at June 30, 2008 and December 31, 2007, respectively. Tangible equity to assets was 6.46% at September 30, 2008, compared to 8.30% and 9.48% at June 30, 2008 and December 31, 2007, respectively. As of September 30, 2008, the Bank remained categorized "well capitalized" under regulatory standards with a total risk-based capital ratio of 12.11%.
The Company's book value and tangible book value per share as of September 30, 2008 were $9.50 and $8.97 per share, respectively, based upon 6,054,391 outstanding shares of common stock. The number of outstanding shares includes 48,587 restricted shares granted to participants under the Company's 2004 Management Recognition Plan that have not yet vested or were not ratably earned, and excludes 339,341 unallocated shares held by the Rainier Pacific 401(k) Employee Stock Ownership Plan.
"While the current economic and unusually difficult credit and liquidity conditions continue to place pressure on the financial services industry, the core fundamentals of Rainier Pacific's underlying business remains stable, and our capital position continues to meet the 'well-capitalized' regulatory standards. Despite the severity of the current market conditions, our non-performing loans are concentrated in only a handful of banking relationships, and we have not experienced any significant deterioration in other areas of our loan portfolio. With a total exposure of only 13% of our total loan portfolio in real estate development and construction loans, along with this quarter's significant provision for loan losses, we believe we are well-positioned to manage through the credit quality challenges of this portfolio in the current difficult operating environment," said John A. Hall, President and CEO.
Rainier Pacific Financial Group, Inc. is the bank holding company for Rainier Pacific Bank, a Tacoma, Washington-based state-chartered savings bank operating 14 full-service locations in the Tacoma-Pierce County and City of Federal Way market areas.
For additional information, visit Rainier Pacific's website at www.rainierpac.com.
Forward-looking statements:
Certain matters discussed in this press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to, among other things, expectations of the business environment in which the Company operates, projections of future performance, perceived opportunities in the market, potential future credit experience, and statements regarding the Company's mission and vision. These forward-looking statements are based upon current management expectations and may, therefore, involve risks and uncertainties. The Company's actual results, performance, or achievements may differ materially from those suggested, expressed, or implied by forward-looking statements as a result of a wide variety or range of factors including, but not limited to, the credit risk of lending activities, including changes in the level and trend of loan delinquencies and write-offs; results of examinations by our banking regulators; interest rate fluctuations; economic conditions in the Company's primary market area; ability of the issuers of trust preferred securities to repay the obligations, demand for residential, commercial real estate, consumer, and other types of loans; success of new products; competitive conditions between banks and non-bank financial service providers; regulatory and accounting changes; technological factors affecting operations; pricing of products and services; and other risks detailed in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2007. Accordingly, these factors should be considered in evaluating forward-looking statements, and undue reliance should not be placed on such statements. The Company undertakes no responsibility to update or revise any forward-looking statement.
Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Condition
(Dollars in Thousands)
ASSETS
At September 30, At June 30, At December 31,
2008 2008 2007
--------------- --------------- ---------------
Cash and cash
equivalents $ 8,070 $ 11,832 $ 8,724
Interest-bearing
deposits with banks 15 539 90
Securities
available-for-sale 65,993 94,056 131,287
Securities
held-to-maturity
(fair value at
September 30, 2008:
$35,650; at June 30,
2008: $37,226; and at
December 31, 2007:
$45,541) 36,516 37,946 45,756
Federal Home Loan Bank
of Seattle ("FHLB")
stock, at cost 13,712 13,712 13,712
Loans 664,247 663,974 637,000
Less: allowance for
loan losses (13,943) (8,271) (8,079)
--------------- --------------- ---------------
Loans, net 650,304 655,703 628,921
Premises and
equipment, net 33,826 34,286 33,813
Accrued interest
receivable 3,378 3,400 3,980
Other assets 28,835 19,139 12,581
--------------- --------------- ---------------
TOTAL ASSETS $ 840,649 $ 870,613 $ 878,864
=============== =============== ===============
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES:
Deposits
Non-interest bearing $ 40,526 $ 40,736 $ 33,924
Interest-bearing 423,530 422,989 427,563
--------------- --------------- ---------------
Total deposits 464,056 463,725 461,487
Borrowed funds 308,500 324,238 320,454
Corporate drafts
payable 4,492 2,110 2,510
Accrued compensation
and benefits 1,269 969 1,758
Other liabilities 4,824 4,022 5,835
--------------- --------------- ---------------
TOTAL LIABILITIES 783,141 795,064 792,044
--------------- --------------- ---------------
SHAREHOLDERS' EQUITY:
Common stock, no par
value: 49,000,000
shares authorized;
6,399,390 shares
issued and 6,011,462
shares outstanding at
September 30, 2008;
6,421,940 shares
issued and 6,002,202
shares outstanding at
June 30, 2008; and
6,466,633 shares
issued and 5,977,645
shares outstanding at
December 31, 2007 50,689 50,636 50,458
Unearned Employee
Stock Ownership Plan
("ESOP") shares (3,393) (3,563) (3,903)
Accumulated other
comprehensive loss,
net of tax (32,783) (17,921) (4,575)
Retained earnings 42,995 46,397 44,840
--------------- --------------- ---------------
TOTAL
SHAREHOLDERS'
EQUITY 57,508 75,549 86,820
--------------- --------------- ---------------
TOTAL LIABILITIES
AND SHAREHOLDERS'
EQUITY $ 840,649 $ 870,613 $ 878,864
=============== =============== ===============
Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Operations
(Dollars in Thousands, except per share data)
Three Months Ended Nine Months Ended
September 30, September 30,
----------------------- -----------------------
2008 2007 2008 2007
--------- ---------- --------- ----------
INTEREST INCOME
Loans $ 10,666 $ 12,127 $ 33,134 $ 35,371
Securities
available-for-
sale 1,304 2,015 4,437 6,099
Securities
held-to-
maturity 398 527 1,269 1,638
Interest-
bearing
deposits - 28 33 108
FHLB dividends 48 21 130 55
--------- ---------- --------- ----------
Total
interest
income 12,416 14,718 39,003 43,271
--------- ---------- --------- ----------
INTEREST EXPENSE
Deposits 2,735 4,104 9,301 12,268
Borrowed funds 3,527 3,881 10,567 11,465
--------- ---------- --------- ----------
Total
interest
expense 6,262 7,985 19,868 23,733
--------- ---------- --------- ----------
Net interest
income 6,154 6,733 19,135 19,538
PROVISION FOR
LOAN LOSSES 6,000 150 6,700 450
--------- ---------- --------- ----------
Net
interest
income
after
provision
for loan
losses 154 6,583 12,435 19,088
--------- ---------- --------- ----------
NON-INTEREST
INCOME
Deposit service
fees 958 906 2,705 2,611
Loan service
fees 310 381 912 1,019
Insurance
service fees 598 552 1,677 1,717
Investment
service fees 147 189 432 446
Real estate
lease income 270 298 778 863
Gain on sale of
securities,
net 1 - 12 -
Gain on sale of
loans, net 190 60 875 262
Loss on sale of
other real
estate owned (32) - (25) -
Gain (loss) on
sale of
premises and
equipment, net - 1 (1) 11
Other operating
income 37 25 536 69
--------- ---------- --------- ----------
Total
non-interest
income 2,479 2,412 7,901 6,998
--------- ---------- --------- ----------
NON-INTEREST
EXPENSE
Compensation
and benefits 4,044 4,237 12,146 12,298
Office
operations 990 1,006 2,882 2,948
Occupancy 572 649 1,802 1,908
Loan servicing 127 130 359 369
Outside and
professional
services 283 250 979 940
Marketing 260 278 762 810
Other operating
expenses 746 799 1,950 2,287
--------- ---------- --------- ----------
Total
non-interest
expense 7,022 7,349 20,880 21,560
--------- ---------- --------- ----------
INCOME BEFORE
PROVISION
(BENEFIT) FOR
FEDERAL INCOME
TAX (4,389) 1,646 (544) 4,526
PROVISION
(BENEFIT) FOR
FEDERAL INCOME
TAX (1,439) 574 (55) 1,582
--------- ---------- --------- ----------
NET INCOME (LOSS) $ (2,950) $ 1,072 $ (489) $ 2,944
========= ========== ========= ==========
EARNINGS (LOSS)
PER COMMON SHARE
Basic $ (0.49) $ 0.18 $ (0.08) $ 0.49
Diluted $ (0.49) $ 0.18 $ (0.08) $ 0.49
Weighted
average shares
outstanding -
Basic 5,998,207 (1) 5,983,586 (2) 5,989,822 (1) 5,985,043 (2)
Weighted
average shares
outstanding -
Diluted 5,998,207 5,983,586 5,989,822 6,027,478
(1) Weighted average shares outstanding - Basic includes 277,513 vested and
ratably earned shares of the 326,100 restricted shares granted and
issued under the 2004 Management Recognition Plan ("MRP"), net of
forfeited shares.
(2) Weighted average shares outstanding - Basic includes 212,593 vested and
ratably earned shares of the 327,700 restricted shares granted and
issued under the MRP, net of forfeited shares.
Rainier Pacific Financial Group, Inc. & Subsidiary
Consolidated Statements of Operations
(Dollars in Thousands, except per share data)
Three Months Ended
----------------------------------------------------
September June March December
30, 2008 30, 2008 31, 2008 31, 2007
--------- --------- ---------- ---------
INTEREST INCOME
Loans $ 10,666 $ 11,191 $ 11,277 $ 11,808
Securities
available-for-
sale 1,304 1,276 1,857 2,102
Securities
held-to-
maturity 398 420 451 512
Interest-
bearing
deposits - 6 27 23
FHLB dividends 48 48 34 27
--------- --------- ---------- ---------
Total
interest
income 12,416 12,941 13,646 14,472
--------- --------- ---------- ---------
INTEREST EXPENSE
Deposits 2,735 2,979 3,587 3,960
Borrowed funds 3,527 3,524 3,516 3,751
--------- --------- ---------- ---------
Total
interest
expense 6,262 6,503 7,103 7,711
--------- --------- ---------- ---------
Net interest
income 6,154 6,438 6,543 6,761
PROVISION FOR
LOAN LOSSES 6,000 550 150 150
--------- --------- ---------- ---------
Net
interest
income
after
provision
for loan
loss 154 5,888 6,393 6,611
--------- --------- ---------- ---------
NON-INTEREST
INCOME
Deposit service
fees 958 908 839 885
Loan service
fees 310 287 315 295
Insurance
service fees 598 529 550 595
Investment
service fees 147 121 164 134
Real estate
lease income 270 262 246 249
Gain on sale of
securities,
net 1 - 11 -
Gain on sale of
loans, net 190 450 235 117
Gain (loss) on
sale of other
real estate
owned (32) 7 - -
Gain (loss) on
sale of
premises and
equipment, net - (1) - (1)
Other operating
income 37 38 461 354
--------- --------- ---------- ---------
Total
non-interest
income 2,479 2,601 2,821 2,628
--------- --------- ---------- ---------
NON-INTEREST
EXPENSE
Compensation
and benefits 4,044 4,042 4,060 4,043
Office
operations 990 937 955 1,014
Occupancy 572 616 614 672
Loan servicing 127 123 109 129
Outside and
professional
services 283 248 448 426
Marketing 260 218 284 226
Other operating
expenses 746 716 488 943
--------- --------- ---------- ---------
Total
non-interest
expense 7,022 6,900 6,958 7,453
--------- --------- ---------- ---------
INCOME BEFORE
PROVISION
(BENEFIT) FOR
FEDERAL INCOME
TAX (4,389) 1,589 2,256 1,786
PROVISION
(BENEFIT) FOR
FEDERAL INCOME
TAX (1,439) 572 812 876
--------- --------- ---------- ---------
NET INCOME (LOSS) $ (2,950) $ 1,017 $ 1,444 $ 910
========= ========= ========== =========
EARNINGS (LOSS)
PER COMMON SHARE
Basic $ (0.49) $ 0.17 $ 0.24 $ 0.15
Diluted $ (0.49) $ 0.17 $ 0.24 $ 0.15
Weighted
average shares
outstanding -
Basic 5,998,207 (1) 5,987,866 (2) 5,983,393 (3) 5,979,580 (4)
Weighted
average shares
outstanding -
Diluted 5,998,207 5,987,866 5,983,393 5,979,580
(1) Weighted average shares outstanding - Basic includes 277,513 vested and
ratably earned shares of the 326,100 restricted shares granted and
issued under the MRP, net of forfeited shares.
(2) Weighted average shares outstanding - Basic includes 262,877 vested and
ratably earned shares of the 326,300 restricted shares granted and
issued under the MRP, net of forfeited shares.
(3) Weighted average shares outstanding - Basic includes 245,972 vested and
ratably earned shares of the 326,300 restricted shares granted and
issued under the MRP, net of forfeited shares.
(4) Weighted average shares outstanding - Basic includes 228,175 vested and
ratably earned shares of the 326,900 restricted shares granted and
issued under the MRP, net of forfeited shares.
Rainier Pacific Financial Group, Inc. & Subsidiary
Selected Information and Ratios
(Dollars in Thousands)
As of
-----------------------------------------------------
September June March December September
30, 30, 31, 31, 30,
2008 2008 2008 2007 2007
--------- --------- --------- --------- ---------
Loan portfolio
composition:
Real estate:
One- to
four-family
residential $ 65,997 $ 75,879 $ 84,211 $ 76,882 $ 78,621
Five or more
family
residential 141,449 146,050 148,991 149,080 149,474
Commercial 248,243 245,522 223,076 212,901 214,130
--------- --------- --------- --------- ---------
Total real
estate 455,689 467,451 456,278 438,863 442,225
Real estate
construction:
One- to
four-family
residential 79,120 79,581 78,607 73,114 70,867
Five or more
family
residential 471 - - 1,839 2,019
Commercial 5,991 4,032 4,157 3,827 1,834
--------- --------- --------- --------- ---------
Total real
estate
construction 85,582 83,613 82,764 78,780 74,720
Consumer:
Automobile 13,409 15,621 18,027 20,798 23,711
Home equity 42,660 42,344 43,980 45,293 44,537
Credit cards 22,793 22,063 22,120 23,172 22,601
Other 8,123 7,962 7,812 7,411 7,383
--------- --------- --------- --------- ---------
Total consumer 86,985 87,990 91,939 96,674 98,232
Commercial
business 35,991 24,920 24,643 22,683 18,142
--------- --------- --------- --------- ---------
Subtotal 664,247 663,974 655,624 637,000 633,319
Less: Allowance for
loan losses (13,943) (8,271) (7,979) (8,079) (8,142)
--------- --------- --------- --------- ---------
Total loans, net $ 650,304 $ 655,703 $ 647,645 $ 628,921 $ 625,177
========= ========= ========= ========= =========
Sold loans, serviced
for others $ 135,496 $ 127,824 $ 115,214 $ 114,629 $ 113,306
========= ========= ========= ========= =========
Non-performing
assets:
Loans 90 days or
more past due
or non-accrual
loans (1):
Real estate $ - $ - $ - $ - $ -
Real estate
construction 31,243 13,461 - - -
Consumer 242 415 426 497 197
Commercial
business 288 - - - -
Repossessed assets - - 6 49 23
Other real estate
owned 103 446 1,222 - -
--------- --------- --------- --------- ---------
Total
non-performing
assets $ 31,876 $ 14,322 $ 1,654 $ 546 $ 220
========= ========= ========= ========= =========
Loans greater than
30 days delinquent
(1) $ 26,049 $ 7,091 $ 1,678 $ 2,125 $ 1,762
Loans greater than
30 days delinquent
as a percentage of
loans 3.92% 1.07% 0.26% 0.33% 0.28%
Non-performing loans
as a percentage of
loans 4.78% 2.09% 0.06% 0.08% 0.03%
Non-performing
assets as a
percentage of
assets 3.79% 1.65% 0.19% 0.06% 0.02%
Allowance for loan
loss as a
percentage of
non-performing
loans 43.88% 59.61% 1,873.00% 1,625.55% 4,132.99%
Allowance for loan
loss as a
percentage of
non-performing
assets 43.74% 57.75% 482.41% 1,479.67% 3,700.91%
Allowance for loan
loss as a
percentage of total
loans 2.10% 1.25% 1.22% 1.27% 1.29%
Core deposits (all
deposits, excluding
CDs) $ 247,990 $ 238,271 $ 229,401 $ 226,743 $ 236,411
Non-core deposits
(CDs) 216,066 225,454 241,971 234,744 224,506
--------- --------- --------- --------- ---------
Total deposits $ 464,056 $ 463,725 $ 471,372 $ 461,487 $ 460,917
========= ========= ========= ========= =========
Loans/Deposits 143.14% 143.18% 139.09% 138.03% 137.40%
Equity/Assets 6.84% 8.68% 9.56% 9.88% 10.16%
Tangible
Equity/Assets 6.46% 8.30% 9.18% 9.48% 9.80%
(1) The Company may classify selected loans as non-accrual although the
contractual payments on the loans are not past due, based upon other
factors or characteristics known to the Company relating to the loan or
the borrower. Therefore, the amount of loans reported as "90 days or
more past due or non-accrual loans" may exceed the amount of loans
reported as "greater than 30 days delinquent."
Rainier Pacific Financial Group, Inc. & Subsidiary
Selected Information and Ratios
(Dollars in Thousands)
Three Months Ended Nine Months Ended
September 30, September 30,
-------------------- --------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Loan growth (decline) 0.04% (2.17%) 4.28% (0.95%)
Deposit growth (decline) 0.07% 0.13% 0.56% 0.76%
Equity growth (decline) (23.88%) (0.30%) (33.76%) 2.06%
Asset growth (decline) (3.44%) (2.50%) (4.35%) (2.26%)
Loans originated $ 36,390 $ 46,053 $ 182,911 $ 147,490
Loans sold $ 11,765 $ 5,127 $ 48,221 $ 17,504
Loans charged-off, net $ 328 $ 242 $ 836 $ 590
Increase in non-interest
income 2.78% 4.73% 12.90% 6.92%
Decrease in non-interest
expense (4.45%) 0.52% (3.15%) (0.62%)
Net charge-offs to average
loans 0.20% 0.15% 0.17% 0.12%
Efficiency ratio 81.34% 80.36% 77.23% 81.25%
Return on assets (1.37%) 0.48% (0.08%) 0.44%
Return on equity (17.05%) 4.78% (0.83%) 4.40%
Interest-earning assets:
Yield on loans 6.39% 7.53% 6.77% 7.35%
Yield on investments 5.41% 5.41% 5.25% 5.36%
Yield on FHLB stock 1.40% 0.60% 1.27% 0.53%
--------- --------- --------- ---------
Yield on interest-earning
assets 6.15% 6.94% 6.40% 6.78%
--------- --------- --------- ---------
Interest-bearing liabilities:
Cost of deposits 2.56% 3.81% 2.95% 3.84%
Cost of borrowed funds 4.37% 4.58% 4.38% 4.49%
--------- --------- --------- ---------
Cost of interest-bearing
liabilities 3.34% 4.15% 3.57% 4.13%
--------- --------- --------- ---------
Net interest rate spread 2.81% 2.79% 2.83% 2.65%
========= ========= ========= =========
Net interest margin 3.06% 3.20% 3.14% 3.06%
Net interest margin-quarter
ended 09/30/2008 3.06%
Net interest margin-quarter
ended 06/30/2008 3.13%
Net interest margin-quarter
ended 03/31/2008 3.20%
Net interest margin-quarter
ended 12/31/2007 3.23%
As of
-------------------------------------------------
September 30, June 30, March 31,
2008 2008 2008
------------- ------------- -------------
Shares outstanding
at end of period 6,054,391 (1) 6,065,625 (2) 6,078,444 (3)
Book value per share $ 9.50 $ 12.46 $ 13.83
Tangible book value
per share $ 8.97 $ 11.91 $ 13.27
As of
-------------------------------
December 31, September 30,
2007 2007
------------- -------------
Shares outstanding
at end of period 6,076,370 (4) 6,109,633 (5)
Book value per share $ 14.29 $ 14.67
Tangible book value
per share $ 13.77 $ 14.15
(1) Shares outstanding represent 6,399,390 shares issued (including 48,587
unvested restricted shares granted under the MRP), less 339,341
unallocated shares under the ESOP.
(2) Shares outstanding represent 6,421,940 shares issued (including 63,423
unvested restricted shares granted under the MRP), less 356,315
unallocated shares under the ESOP.
(3) Shares outstanding represent 6,451,733 shares issued (including 80,328
unvested restricted shares granted under the MRP), less 373,289
unallocated shares under the ESOP.
(4) Shares outstanding represent 6,466,633 shares issued (including 98,725
unvested restricted shares granted under the MRP), less 390,263
unallocated shares under the ESOP.
(5) Shares outstanding represent 6,516,870 shares issued (including 115,108
unvested restricted shares granted under the MRP), less 407,237
unallocated shares under the ESOP.
John Hall:
(253) 926-4007
Email Contact
or
Vic Toy:
(253) 926-4038
Email Contact