SOURCE: Pacific Commerce Bank

Pacific Commerce Bank

April 30, 2012 06:00 ET

Pacific Commerce Bank Reports 2012 First Quarter Financial Results

LOS ANGELES, CA--(Marketwire - Apr 30, 2012) - Pacific Commerce Bank (OTCBB: PFCI) today reported financial results for the first quarter ended March 31, 2012. For the first quarter 2012, net income was $318,000, or $0.07 per share. This compares with net income of $299,000, or $0.09 per share, for the first quarter 2011.

The Bank experienced a notable improvement in asset quality in first quarter 2012. Total criticized and classified loans were reduced to 17% of total loans, or $19.5 million, as of March 31, 2012. This is a sequential quarter decrease of approximately 34%, or $10 million. As a result of the improvement in asset quality the Bank did not have to provide additional loan loss provisions in the first quarter of 2012, despite having a net charge-off of $626,000 for the period.

In addition, the Bank completed a private stock offering of approximately $2.54 million in March of 2012, increasing Total Equity to approximately $21 million, or 12.78% of Tangible Assets.

Selected financial highlights for the first quarter of 2012:

  • Total assets were $162.0 million at March 31, 2012

  • Investment portfolio was $24.3 million

  • Gross loans were $112.3 million

  • Allowance for loan losses was $5.35 million

  • Total deposits were $140.1 million

  • Non-accrual loans increased by $1.9 million when compared to the first quarter 2011, but decreased by $4.4 million compared to the fourth quarter 2011.

  • Net interest margin for the first quarter was 3.83% versus 3.87% for the same quarter 2011

  • Average cost of funds was 0.44% in the first quarter 2012, versus 0.48% for the same quarter 2011

  • Allowance for Loan Losses to Total Loans was 4.76% versus 3.89%, a year ago

  • Total Tangible Equity to Total Tangible Assets was 12.78% versus 9.74%, a year ago

The Bank's capital ratios as of March 31, 2012 were as follows:

Tier 1 Leverage Ratio: 12.02%
Tier 1 Risk-Based Capital Ratio: 17.79%
Total Risk-Based Capital Ratio: 19.08%

Curtis Chinn, Chief Credit Officer, said, "Through these challenging times, the Bank has continued to focus on asset quality and reducing problem loans. We have made good progress in the past two quarters and will work to further improve asset quality."

Tom Iino, Chairman of the Board, commented, "We spent the better part of 2011 creating an infrastructure, fostering strong business discipline, and improving the asset quality of our loan portfolio. This year we are seeing improving trends in asset quality and are cautiously optimistic that problem loans will decrease further as the year progresses. As non-performing asset levels continue to decline we will increasingly focus on building earning assets and franchise value of the Bank. We look forward to the Bank moving in a direction of profitability and growth in 2012."

About Pacific Commerce Bank
Established in 2002, Pacific Commerce Bank is a 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 needs of its clients, and offers small business loans, asset-based loans, and permanent real estate financing, SBA government-guaranteed loans, as well as personal and professional credit lines. 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 3/31/2012 12/31/2011 3/31/2011
Total Assets $ 161,884 $ 166,342 $ 195,622
Total Investments $ 24,296 $ 24,846 $ 37,502
Gross Loans $ 112,337 $ 128,716 $ 144,951
Allowance for Loan Losses $ (5,350 ) $ (5,967 ) $ (5,635 )
Other Real Estate Owned $ 4,576 $ 2,039 $ 510
Total Deposits $ 140,056 $ 147,384 $ 175,292
Total Borrowings $ 0 $ 0 $ 0
Total Stockholders' Equity $ 20,963 $ 18,061 $ 19,198
Net Charge-offs $ 626 $ 3,251 $ 408
Classified Loans $ 19,500 $ 29,477 $ 32,407
Total Non-Accrual Loans $ 10,340 $ 14,709 $ 8,351
ALLL / Total Loans 4.76 % 4.64 % 3.89 %
ALLL / Non-Accrual Loans 51.7 % 40.6 % 67.5 %
Common Shares Outstanding 4,461,255 3,444,255 3,444,255
For the Three Months
Ended March 31,
STATEMENT OF OPERATIONS 2012 2011
Total Interest Income $ 1,748 $ 2,134
Total Interest Expense 165 208
Net Interest Income 1,583 1,926
Non-Interest Income 399 468
Total Income 1,982 2,394
Non-Interest Expense 1,658 1,829
Income Before Loan Loss Provision, Stock Options and Income Tax Expenses 324 565
Provision for Loan Losses 0 250
Stock Option Expense 6 16
Income Tax Expense 0 0
Net Income/(Loss) $ 318 $ 299
EPS $ 0.07 $ 0.09

Contact Information

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