Pan Pacific Bank (PPFC) said Tuesday that its fourth-quarter profit plunged 70% from a year earlier, to $99,000 due to a sharp drop in fee income.

The Fremont, Calif., bank said that fee income fell 82% year over year, to $92,000. In 2012, fourth-quarter earnings were aided by a $417,000 gain on sale of government guaranteed loans, Pan Pacific said.

Profits were also hurt by an overall decline in assets, deposits and gross loans.

Pan Pacific said that total assets fell 3%, year-over-year, to $109.9 million, as gross loans declined 5.3%, to $77.9 million. The bank attributed the declines to normal principal payment reductions in the portfolio, along with the reduction in nonperforming loans.

Meanwhile total deposits, a significant driver of asset size, fell 7.4% from a year earlier, to $91 million.

For the full year, Pan Pacific earned $254,000, down 73% from the $923,000 profit it turned in 2012.

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