LOS ANGELES, CA -- (Marketwire) -- 10/25/12 -- Pacific Commerce Bank (OTCBB: PFCI) today announced net income of $152,000 or $0.03 per share for the third quarter of 2012, and $635,000 or $0.14 per share for the nine months ended September 30, 2012. This compares to a net loss of $794,000, or ($0.23) per share for the same quarter of 2011 and a net loss of $1.1 million, or ($0.32) per share for the nine months ended September 30, 2011.
Scott R. Andrews, President and Chief Executive Officer, said, "We are pleased to announce another solid quarter of profitability. Our focus on building new customer relationships through new loan originations and core deposit growth, along with our significantly improved asset quality and expense control is now producing consistent earnings."
Andrews, continued, "We are also excited about the additions of Tom Welch, SBA Manager and Robert Maag, Senior Relationship Manager. Both are experienced bankers who will generate new relationship-oriented customers and assist us in growing our SBA and commercial loan portfolios and core deposit levels. We are seeing increasing loan demand and have a robust pipeline of both commercial and industrial loans as well as commercial real estate loan opportunities."
The Bank continued to see solid asset quality improvements in the third quarter 2012. Total classified assets fell below the 50% mark to approximately 46% of Total Equity plus ALLL as of September 30, 2012. This is a sequential quarter decrease in classified assets of approximately 37%, or $7.1 million. Year-to-date, total classified assets reduced by 57% or $15.8 million.
The Bank's regulatory capital ratios as of September 30, 2012 were as follows:
Tier 1 Leverage Ratio: 12.81%
Tier 1 Risk-Based Capital Ratio: 17.62%
Total Risk-Based Capital Ratio: 18.91%
Selected financial highlights for the third quarter of 2012:
- Total assets were $163.8 million compared to $175.5 million a year ago
- Non-accrual loans were $5.6 million compared to $11.8 million a year ago
- Allowance for Loan Losses to Total Loans was 4.39% versus 4.66%, a year ago
- Net interest margin for the third quarter was 3.87% unchanged from the same quarter 2011, but improved by 10 basis points from 3.77% in the second quarter 2012
- Average cost of funds was 0.39% in the third quarter 2012, versus 0.51% for the same quarter 2011
- Gross loans were $114.8 million compared to $134.4 million for the same quarter a year ago
- Total deposits were $141.3 million compared to $156.5 million in the third quarter of 2011
- Total Tangible Equity to Total Tangible Assets was 12.93% versus 10.18%, a year ago
About Pacific Commerce Bank
Established in 2002, Pacific Commerce Bank is a business-oriented community bank with offices in downtown Los Angeles and West Los Angeles. 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. Information about the Bank can be obtained on its website: 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.
(Financial Table Follows)
Pacific Commerce Bank
Selected Financial Data - Unaudited ('000)
BALANCE SHEET 9/30/2012 9/30/2011
Total Assets $ 163,800 $ 175,507
Total Investments $ 24,366 $ 24,820
Gross Loans $ 114,843 $ 134,447
Allowance for Loan Losses $ (5,047) $ (6,263)
Other Real Estate Owned $ 1,942 $ 613
Total Deposits $ 141,317 $ 156,520
Total Borrowings $ 0 $ 0
Total Stockholders' Equity $ 21,435 $ 18,171
Net Charge-offs $ 929 $ 2,871
Total Classified Loans $ 10,154 $ 27,366
Total Non-Accrual Loans $ 5,601 $ 11,754
ALLL / Total Loans 4.39% 4.66%
ALLL / Non-Accrual Loans 90.1% 53.3%
Common Shares Outstanding 4,461,255 3,444,255
For the Three Months
Ended September 30,
STATEMENT OF OPERATIONS 2012 2011
Total Interest Income $ 1,674 $ 2,024
Total Interest Expense 138 215
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Net Interest Income 1,536 1,809
Non-Interest Income 136 326
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Total Income 1,672 2,135
Non-Interest Expense 1,516 1,520
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Income Before Loan Loss Provision, Stock
Options and Income Tax Expenses 156 615
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Provision for Loan Losses 0 1,398
Stock Option Expense 4 11
Income Tax Expense 0 0
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Net Income/(Loss) $ 152 $ (794)
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EPS $ 0.03 $ (0.23)
For the Nine Months
Ended June 30,
STATEMENT OF OPERATIONS 2012 2011
Total Interest Income $ 5,068 $ 6,244
Total Interest Expense 455 648
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Net Interest Income 4,613 5,596
Non-Interest Income 916 1,558
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Total Income 5,529 7,154
Non-Interest Expense 4,881 4,971
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Income Before Loan Loss Provision, Stock
Options and Income Tax Expenses 648 2,183
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Provision for Loan Losses 0 3,251
Stock Option Expense 13 40
Income Tax Expense 0 0
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Net Income/(Loss) $ 635 $ (1,108)
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EPS $ 0.14 $ (0.32)
