PNB Financial Group Posts Higher Net, Plans Offering

PNB Financial Group and its sole subsidiary, Pacific National Bank in Newport Beach, reported higher net incomes last week for the quarter and the first six months and said the company is planning a stock offering to raise $3 million.

Improving on its first profitable year last year, the 4-year-old bank reported that its net income for the second quarter more than doubled to $132,000 from $50,000 a year earlier. Net earnings for the first six months quadrupled to $224,000 from $55,000 a year ago.

PNB’s consolidated earnings for the quarter nearly quadrupled to $96,000 from $25,000 a year ago, and its six-month net income increased six-fold to $142,000 from $23,000 in the same period last year.

The parent company’s lower income was attributed to the legal and accounting expenses for planning the stock offering, which is expected to go public late this year or early next year, according to bank President Donald L. Solsby. More than 400,000 shares probably will be offered, he said.

The proceeds of the stock offering will be used for expansion or acquisitions, Solsby said. Solsby attributed the bank’s profit gains to cuts in non-interest expenses, an increase in lower-costing demand deposits and the imposition of fees for certain construction loan services, such as fund controls and inspections.

Total assets at the end of June for the bank were $66.5 million, a 36.5% increase over assets of $48.7 million a year earlier. Total deposits at the bank grew 37% to $61.8 million at the end of June from $45.1 million a year earlier, and total loans increased slightly to $35.5 million from $35.1 million.

The only significant asset the company has besides the bank is a $75,000 loan to Solsby.