Click here to close now.

SYS-CON MEDIA Authors: Plutora Blog, Roger Strukhoff, Leo Reiter, Kevin Jackson, Peter Silva

News Feed Item

Pacific Commerce Bank Reports 2013 Financial Results, Net Income of $4.9 Million and Continued Loan and Core Deposit Growth

LOS ANGELES, CA -- (Marketwired) -- 01/23/14 -- Pacific Commerce Bank (OTCQB: PFCI) today reported financial results for the fourth quarter and the twelve months ended December 31, 2013 that reflected annual net income after tax of $4.9 million along with another solid quarter of loan and core deposit growth.

For the full year ended December 31, 2013, net income was $4,925,000 or $1.10 per share, which compares to net income of $909,000 or $0.20 per share in 2012. After recovery of the Bank's $4.3 million deferred tax asset valuation allowance in the third quarter of 2013, taxes of $390,000 were recorded in the fourth quarter.

Net income before taxes for the fourth quarter of 2013 was $125,000 or $0.03 per share, which compares to net income before tax of $274,000 or $0.06 per share for the same quarter last year. 2013 fourth quarter net income before tax reflected several one-time income and expense items, including expenses relating to sale of one OREO property and write down of the Bank's other OREO property totaling $448,000, offset by a gain on sale of one of two OREO properties in the amount of $487,000. Other one-time expenses included charges related to conversion to a fully-hosted network environment and stock option expenses. Finally, in the fourth quarter of 2012, the Bank recognized a one-time gain on sale of securities in the amount of $195,000, which was not repeated in 2013.

Asset quality stabilized in 2013 with a $3.2 million reduction in non-performing loans, leaving only $264,000 in remaining non-accrual loans, and resulting in a ratio of NPL's to total loans of 0.18% versus 3.01% last year at this time. Non-performing assets were reduced to 0.29% of total assets versus 3.90% a year ago as a result of the sale of two of three OREO properties and the aforementioned reduction in non-performing loans. Total classified assets reduced to only $529,000 at year-end 2013 versus $10.0 million at year-end 2012, resulting in a ratio of total classified assets to tier 1 capital plus loan loss reserves of 1.69% versus 38.13% a year ago.

Total assets increased 11.1% to $173.1 million, an increase of $17.3 million over 2012 levels. The loan portfolio grew $29.9 million for the year, or 26% with growth of $10.6 million in the fourth quarter of 2013. Strong core deposit growth of $18.3 million, a 25% increase year-over-year, contributed to a reduction of the Bank's overall cost of funds to 0.30% from 0.37% and an increase in net interest margin to 3.99% in 2013 from 3.89% in 2012.

CEO Scott R. Andrews commented, "2013 was a landmark year for Pacific Commerce Bank. In addition to solid balance sheet and core earnings growth, the recapture of our deferred tax asset valuation allowance was a significant event which exemplifies the financial turnaround of the Bank. Additionally, our full release from the Regulatory Orders PCB had been operating under for the past two years clears the path for the Bank to execute upon our strategic plan of growth via mergers and acquisitions throughout the Southern California marketplace."

Andrews further commented, "The opening of our full-service branch in San Diego County in December illustrates our commitment to organic growth and expansion in support of our merger growth strategy. Our SBA Department, located in San Diego, brings the opportunity for non-interest income and new and expanded customer relationships in that new market." Pacific Commerce Bank also has branch locations in Downtown and West Los Angeles.

Chairman Thomas Iino commented, "The Board of Directors is very pleased with what Pacific Commerce Bank accomplished in 2013, achieving every major objective set forth by the Board at the beginning of the year. Our attention is now singularly focused on providing meaningful shareholder returns utilizing the Bank's strong capital base, talented and committed Board and management team, and the tremendous market opportunity for mergers and acquisitions here in Southern California in 2014."

Pacific Commerce Bank is well capitalized and poised for future growth opportunities. The Bank's regulatory capital ratios as of December 31, 2013 are as follows:

Tier 1 Leverage Ratio: 14.06%
Tier 1 Risk-Based Capital Ratio: 15.67%
Total Risk-Based Capital Ratio: 16.95%

Selected financial highlights as of December 31, 2013:

  • Total assets were $173.2 million compared to $155.9 million a year ago, an increase of 11.1%
  • Total loans were $146.3 million compared to $116.5 million a year ago, a 25.6% year-over-year growth
  • Total deposits were $145.5 million compared to $133.2 million a year ago with increase in core deposits of $18.3 million
  • Non-accrual loans were $264 thousand compared to $3.5 million a year ago, a reduction of $3.2 million or 92.4%
  • Allowance for Loan Losses to Total Loans was 3.42% versus 4.04%, a year ago
  • Net interest margin for the fourth quarter was 3.83% compared 3.92% for the same quarter a year ago
  • Year-to-date net interest margin was 3.99%, an improvement of ten basis points compared to the same period a year ago
  • QTD average cost of funds was 0.30% versus 0.37% for the same period 2012
  • YTD average cost of funds was 0.33% versus 0.41% for the same period 2012

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. 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; demand for loan products; deposit flows; its ability to develop and implement new technologies; and other factors. 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
                 Selected Financial Data - Unaudited ('000)

BALANCE SHEET                                       12/31/2013   12/31/2012
                                                   -----------  -----------
                                      Total Assets $   173,154  $   155,886
                                 Total Investments $     1,219  $    15,426
                                       Gross Loans $   146,303  $   116,463
                         Allowance for Loan Losses $    (5,006) $    (4,704)
                           Other Real Estate Owned $       244  $     2,581
                                    Total Deposits $   145,516  $   133,151
                                  Total Borrowings $         0  $         0
                        Total Stockholders' Equity $    26,204  $    21,485
                     Net (Recoveries)/ Charge-offs $      (303) $     1,273
                           Total Non-Accrual Loans $       264  $     3,498
                                ALLL / Total Loans        3.42%        4.04%
                          ALLL / Non-Accrual Loans        1894%         135%


                                                     For the Three Months
                                                      Ended December 31,
STATEMENT OF OPERATIONS                               2013          2012
                            Total Interest Income $      1,655  $      1,676
                           Total Interest Expense          107           128
                                                  ------------  ------------
                              Net Interest Income        1,548         1,548
                              Non-Interest Income          775           383
                                                  ------------  ------------
                                     Total Income        2,323         1,931
                             Non-Interest Expense        2,154         1,674
                                                  ------------  ------------
 Income Before Loan Loss Provision, Stock Options
                          and Income Tax Expenses          169           284
                                                  ------------  ------------
                        Provision for Loan Losses            0             0
                             Stock Option Expense           45            10
                               Income Tax Expense          390             0
                                                  ------------  ------------
                                       Net Income $       (266) $        274
                                                  ============  ============
                                              EPS $      (0.06) $       0.06



                                                     For the Twelve Months
                                                      Ended December 31,
STATEMENT OF OPERATIONS                               2013          2012
                            Total Interest Income $      6,654  $      6,744
                           Total Interest Expense          456           583
                                                  ------------  ------------
                              Net Interest Income        6,208         6,161
                              Non-Interest Income        1,841         1,299
                                                  ------------  ------------
                                     Total Income        8,049         7,460
                             Non-Interest Expense        6,952         6,528
                                                  ------------  ------------
 Income Before Loan Loss Provision, Stock Options
                          and Income Tax Expenses        1,097           932
                                                  ------------  ------------
                        Provision for Loan Losses            0             0
                             Stock Option Expense           66            23
                               Income Tax Expense       (3,895)            0
                                                  ------------  ------------
                                       Net Income $      4,926  $        909
                                                  ============  ============
                                              EPS $       1.10  $       0.20

For more information, contact:
Pacific Commerce Bank
Richard Koh
Chief Financial Officer
213-617-0082

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
Cloud computing started a technology revolution; now DevOps is driving that revolution forward. By enabling new approaches to service delivery, cloud and DevOps together are delivering even greater speed, agility, and efficiency. No wonder leading innovators are adopting DevOps and cloud together! In his session at DevOps Summit, Andi Mann, Vice President of Strategic Solutions at CA Technologies, explored the synergies in these two approaches, with practical tips, techniques, research data, wa...
SYS-CON Events announced today that AIC, a leading provider of OEM/ODM server and storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. AIC is a leading provider of both standard OTS, off-the-shelf, and OEM/ODM server and storage solutions. With expert in-house design capabilities, validation, manufacturing and production, AIC's broad selection of products are highly flexible and are conf...
SYS-CON Events announced today that Vicom Computer Services, Inc., a provider of technology and service solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. They are located at booth #427. Vicom Computer Services, Inc. is a progressive leader in the technology industry for over 30 years. Headquartered in the NY Metropolitan area. Vicom provides products and services based on today’s requirements...
SYS-CON Events announced today that Blue Box has been named “Bronze Sponsor” of SYS-CON's DevOps Summit New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Blue Box delivers Private Cloud as a Service (PCaaS) to a worldwide customer base. Built on a technology platform leveraging decades of operational expertise in cloud and distributed systems, Blue Box Cloud is a managed private cloud product available in both hosted and on-prem versions. Each Blue Box ...
Many of the well-known examples of DevOps success we read in blogs on the Internet paint an idyllic picture of DevOps productivity. A team was facing a stodgy, slow-moving operations department, teams weren’t delivering software on time. Those teams moved to DevOps, became proactive about infrastructure and deployment automation, and an overnight transition to productivity ensues. People are promoted, projects are successful, and developers and system administrators dance hand-in-hand in a final...
SYS-CON Events announced today that Soha will exhibit at SYS-CON's DevOps Summit New York, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Soha delivers enterprise-grade application security, on any device, as agile as the cloud. This turnkey, cloud-based service enables customers to solve secure application access and delivery challenges that traditional or virtualized network solutions cannot solve because they are too expensive, inflexible and operational...
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provide...
How is unified communications transforming the way businesses operate? In his session at WebRTC Summit, Arvind Rangarajan, Director of Product Marketing at BroadSoft, will discuss how to extend unified communications experience outside the enterprise through WebRTC. He will also review use cases across different industry verticals. Arvind Rangarajan is Director, Product Marketing at BroadSoft. He has over 19 years of experience in the telecommunications industry in various roles such as Softw...
Docker is becoming very popular--we are seeing every major private and public cloud vendor racing to adopt it. It promises portability and interoperability, and is quickly becoming the currency of the Cloud. In his session at DevOps Summit, Bart Copeland, CEO of ActiveState, discussed why Docker is so important to the future of the cloud, but will also take a step back and show that Docker is actually only one piece of the puzzle. Copeland will outline the bigger picture of where Docker fits a...
How do you securely enable access to your applications in AWS without exposing any attack surfaces? The answer is usually very complicated because application environments morph over time in response to growing requirements from your employee base, your partners and your customers. In his session at 16th Cloud Expo, Haseeb Budhani, CEO and Co-founder of Soha, will share five common approaches that DevOps teams follow to secure access to applications deployed in AWS, Azure, etc., and the frict...
ProfitBricks has launched its SDK for .NET, adding to its growing collection of libraries for the DevOps community. This new library exposes all functionality found in the SOAP API and expands ProfitBricks’ support for developers who work with Microsoft technology. “This .NET library addition provides a powerful programmatic interface to our SOAP API,” commented Achim Weiss, Co-founder and CEO of ProfitBricks. “This release is the latest in a series of new offerings that further extend ProfitBr...
ProfitBricks, the provider of painless cloud infrastructure IaaS, today released its SDK for Ruby, written against the company's new RESTful API. The new SDK joins ProfitBricks' previously announced support for the popular multi-cloud open-source Fog project. This new Ruby SDK, which exposes advanced functionality to take advantage of ProfitBricks' simplicity and productivity, aligns with ProfitBricks' mission to provide a painless way to automate infrastructure in the cloud. Ruby is a genera...
Enterprise IoT is an exciting and chaotic space with a lot of potential to transform how the enterprise resources are managed. In his session at @ThingsExpo, Hari Srinivasan, Sr Product Manager at Cisco, will describe the challenges in enabling mass adoption of IoT, and share perspectives and insights on architectures/standards/protocols that are necessary to build a healthy ecosystem and lay the foundation to for a wide variety of exciting IoT use cases in the years to come.
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquir...