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First PacTrust Bancorp’s Profits Decline

First PacTrust Bancorp Inc., the parent firm of Pacific Trust Bank, reported Nov. 2 net profit of $283,000 for the third quarter, and $2.1 million for the nine months ended Sept. 30.

That compared with net income of $1.2 million for the third quarter of 2006, and $3.4 million for the prior year’s first nine months.

The nine-office mortgage bank based in Chula Vista said it put aside $804,000 in loan loss provisions during the quarter, mostly for one bad loan, which reduced profits.

The funds were required to cover possible losses related to one $10 million construction loan. The bank is a one-third participant in that loan.

Pacific Trust reclassified the problem loan as “doubtful” from an earlier assessment of “impaired,” and has set aside $786,000 in loan loss provisions for it.

Construction loans, including the problem credit, make up $20.8 million, or 3 percent of the bank’s total loan portfolio of $705 million.

Year-to-date net charge offs, or the written-off bad loans minus recoveries, totaled $12,000 as of Sept. 30.

The bank said it doesn’t anticipate a spike in problems with its remaining construction loans, and doesn’t make any subprime loans.

Total nonperforming loans were $12.7 million, or 1.65 percent of its total assets of $770.5 million. That compared with zero problem loans as of Sept. 30, 2006.

Traded on Nasdaq under FPTB, shares closed down 20 cents to $22.80 on Nov. 2, and have ranged from $20.65 to $28.37 in the past 52 weeks.

, Mike Allen


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