Pan Pacific Bank (PPFC) in Fremont, Calif., reported a spike in quarterly earnings after reclaiming its deferred-tax asset.
The $111 million-asset bank said in a press release Monday that it earned $2.9 million in the first quarter. It earned just $39,000 a year earlier.
Pan Pacific reclaimed a $2.7 million deferred-tax asset, an accounting treatment that provides a tax benefit to qualifying companies. Corporations typically have to demonstrate sustainable profitability before using such a benefit.
Net interest income rose 3%, to roughly $1.1 million. Noninterest income increased 19%, to $88,000. Noninterest expense fell 2%, to $1 million.
The bank also announced that Richard Hagarty has become its chief credit officer, succeeding Reilly Shaughnessy who resigned to return to the San Diego area. Hagarty will be an integral part of the company's growth strategy, the company said.