Draft v5, April 25, 11
LOS ANGELES, CA, United States, via ETELIGIS INC., 10/23/2014 – – Pacific Commerce Bank (OTCQB: PFCI) today reported net income of $309,000 for the third quarter and $1,605,000 for the nine months ended September 30, 2014 that reflected improved core earnings performance, and continued loan and deposit growth.
CEO Scott R. Andrews commented, “Strong results in the third quarter are reflective of the consistent growth in loans outstanding, improved funding costs due to increased levels of core deposits, and a reduction in non-interest expenses.” Andrews further commented, “Third quarter loan growth totaled $16.2 million, a 9.5% increase, and core deposits also increased $16.8 million during the quarter as ongoing business development efforts resulted in the acquisition of several new relationships.”
“The third quarter produced solid core earnings, and positions Pacific Commerce Bank to continue to pursue our strategic merger and acquisition strategy over the coming months.” commented Chairman Thomas Iino.
Net income for the third quarter of 2014 was $309,000 or $0.07 per share compared to net income of $4.4 million or $0.98 per share for the third quarter of 2103, which included the recapture of the Bank’s deferred tax valuation allowance in the amount $4.3 million. Net income before taxes for the current quarter totaled $525,000 versus $104,000 a year ago, an increase of 405%. Third quarter 2014 income included an $81,000 gain on sale of the Bank’s one remaining OREO property, and $132,000 in gain on sale of SBA 7(a) loans. Reflecting the 38% increase in loans outstanding from a year ago, net interest income increased $510,000 versus the prior year quarter, a 33% increase.
For the nine months ended September 30, 2014, net income totaled $1,605,000 or $0.36 per share, compared to net income of $5,191,000, or $1.16 per share. On a before tax basis, net income was $2,168,000 in 2014 versus $906,000 a year ago, including a $1,500,000 reverse provision to the loan loss reserve in the first quarter of 2014. Net interest income for the first nine months of 2014 increased $841,000 versus a year ago, an increase of 18%, while non-interest income also increased $343,000, net of prior year gain on sale of securities, or 83% versus a year ago, as the gain on sale of SBA 7(a) loans increased $333,000.
Non-interest expenses were down $130,000 or 6.6% from the second quarter of 2014, and $239,000 higher than the third quarter of 2013, due to additional salary and other incentive compensation expenses, primarily related to the generation of SBA 7(a) loans. On a year-over-year basis, non-interest expenses increased $786,000 or 16.3%, as additional revenue producing and customer-contact staff were added.
Total assets increased $2.1 million in the third quarter to $209.2 million, and increased $43.7 million or 26% versus a year ago. As previously mentioned, total loans increased $16.2 million in the third quarter and $52.1 million from a year ago. Core deposits grew $1.2 million in the third quarter and $19.3 million from a year ago, while total deposits increased $16.8 million in the current quarter and $22.8 million versus the third quarter of last year.
Pacific Commerce Bank exceeds the Regulatory criteria to be considered well capitalized and well-positioned for future growth opportunities. The Bank’s regulatory capital ratios as of September 30, 2014 are as follows:
Selected financial highlights as of September 30, 2014:
– Total assets were $209.2 million compared to $165.5 million a year ago and $173.1 million at year-end 2013
– Total loans were $187.7 million compared to $135.7 million a year ago and $146.3 million at year-end 2013
– Total deposits were $160.8 million compared to $138.0 million a year ago and $145.5 million at year-end 2013
– Core deposits were $101.8 million compared to $82.5 million a year ago and $92.5 million at year-end 2013
– Non-accrual loans were $522,000 compared to $524,000 a year ago
– There were zero OREO, versus $2.3 million a year ago
– Non-performing assets ratio was 0.25% versus 1.70% a year ago
– Allowance for Loan Losses to Total Loans was 1.93% versus 3.83%, a year ago
– Year-to-date net interest margin was 3.97%, versus 4.04% compared to the same period a year ago
– YTD average cost of funds was 0.26%, versus 0.34% for the same period 2013
– Efficiency ratio was 77.63% for the month of September, and 90.70% year-to-date, versus 95.20% year-to-date 2013
About Pacific Commerce Bank:
Established in 2002, Pacific Commerce Bank is a business-oriented community bank with offices in downtown Los Angeles, West Los Angeles and San Diego. Founded by local business owners and professionals, the Bank is focused on meeting the diverse financial needs of its clients, and offers a full range of loan, deposit and treasury management products and is an SBA Preferred Lender. For more information about the Bank, please visit our website at www.pacificcommercebank.com.
Forward Looking Information:
The financial information in this press release is based on unaudited financial results. Certain statements in this press release are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements are subject to risks and uncertainties and therefore the bank’s actual results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that the bank is subject to include, but are not limited to, risks related to the local and national economy, including fluctuations in interest rates and costs and changes in economic policy; the ability of the bank to perform in accordance with its plans; competition; regulatory matters; and other risks detailed in its filings with the State of California Department of Financial Institutions and the Federal Deposit Insurance Corporation. The bank cautions readers not to place undue reliance on any forward-looking statements. The bank does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Pacific Commerce Bank
Chief Financial Officer
SOURCE: Pacific Commerce Bank