SOURCE: Pacific Commerce Bank

Pacific Commerce Bank

July 30, 2012 06:00 ET

Pacific Commerce Bank Reports 2012 Second Quarter Financial Results

LOS ANGELES, CA--(Marketwire - Jul 30, 2012) - Pacific Commerce Bank (OTCBB: PFCI) today announced net income of $164,000, or $0.04 per share for the second quarter of 2012. This compares to a net loss of $612,000, or ($0.18) per share, for the same quarter 2011. For the six months ended June 30, 2012, net income was $483,000 or $0.11 per share, compared to a net loss of $313,000 or ($0.09) per share for the same period in 2011. 

The Bank continued to experience a notable improvement in asset quality during the second quarter of 2012. Total Classified Assets decreased to approximately 73% of Tier 1 Capital plus ALLL as of June 30, 2012 from 89% as of March 31, 2012. This is a sequential quarter decrease in problem loans of approximately 18%, or $4.2 million. As a result of the improvement in asset quality the Bank did not have to provide additional loan loss provisions in the second quarter of 2012. 

Selected financial highlights for the second quarter of 2012:

  • Total assets were $166.0 million compared to $186.3 million in the second quarter of 2011
  • Securities portfolio was $27.0 million compared to $35.1 million in the second quarter of 2011
  • Gross loans were $110.6 million compared to $139.2 million for the same quarter a year ago
  • Allowance for loan losses was $4.98 million compared to $6.24 million, a year ago
  • Total deposits were $144.0 million compared to $166.4 million in the second quarter of 2011
  • Non-accrual loans decreased by $938,000 when compared to the first quarter 2012, but increased by $1.63 million compared to the second quarter 2011.
  • Net interest margin for the first quarter was 3.77% versus 3.67% for the same quarter 2011
  • Average cost of funds was 0.42% in the second quarter 2012, versus 0.52% for the same quarter 2011
  • Allowance for Loan Losses to Total Loans was 4.51% versus 4.48%, a year ago
  • Total Tangible Equity to Total Tangible Assets was 12.48% versus 10.09%, a year ago

The Bank's regulatory capital ratios as of June 30, 2012 were as follows:

   
Tier 1 Leverage Ratio: 12.52%
Tier 1 Risk-Based Capital Ratio: 17.63%
Total Risk-Based Capital Ratio: 18.91%
   

Scott R. Andrews, newly appointed Chief Executive Officer, commented, "We are pleased with our second quarter and year-to-date results, which are indicative of the improving overall financial performance of Pacific Commerce Bank. Asset quality is improving and we expect that trend to continue. With our strong capital position and significant on-balance sheet liquidity, Pacific Commerce Bank is poised to seek new growth opportunities, as evidenced by the hiring of Commercial Banking Manager, Eric Karasawa, who joined the Bank in June."

Andrews continued, "Our market focus remains on small-to-medium sized businesses and professionals, with a full complement of loan and deposit product offerings, including SBA financing, remote deposit capture and online treasury management capabilities."

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.

   
   
Pacific Commerce Bank  
Selected Financial Data - Unaudited ('000)  
   
BALANCE SHEET   6/30/2012     6/30/2011  
Total Assets   $ 166,038     $ 186,325  
Total Investments   $ 26,951     $ 35,087  
Gross Loans   $ 110,566     $ 139,164  
Allowance for Loan Losses   $ (4,981 )   $ (6,238 )
Other Real Estate Owned   $ 4,721     $ 613  
Total Deposits   $ 144,043     $ 166,385  
Total Borrowings   $ 0     $ 0  
Total Stockholders' Equity   $ 21,001     $ 19,108  
Net Charge-offs   $ 369     $ 1,000  
Classified Loans   $ 16,900     $ 22,100  
Total Non-Accrual Loans   $ 9,411     $ 7,777  
ALLL / Total Loans     4.51 %     4.48 %
ALLL / Non-Accrual Loans     52.9 %     80.2 %
Common Shares Outstanding     4,461,255       3,444,255  
                 
       
    For the Three Months
Ended June 30,
 
STATEMENT OF OPERATIONS   2012   2011  
Total Interest Income   $ 1,646   $ 2,086  
Total Interest Expense     152     224  
Net Interest Income     1,494     1,862  
Non-Interest Income     382     764  
Total Income     1,876     2,626  
Non-Interest Expense     1,708     1,622  
Income Before Loan Loss Provision, Stock Options and Income Tax Expenses     168     1,004  
Provision for Loan Losses     0     1,603  
Stock Option Expense     4     13  
Income Tax Expense     0     0  
Net Income/(Loss)   $ 164   $ (612 )
EPS   $ 0.04   $ (0.18 )
               
           
    For the Six Months
Ended June 30,
 
STATEMENT OF OPERATIONS   2012   2011  
Total Interest Income   $ 3,394   $ 4,220  
Total Interest Expense     318     432  
Net Interest Income     3,076     3,788  
Non-Interest Income     781     1,232  
Total Income     3,857     5,020  
Non-Interest Expense     3,364     3,451  
Income Before Loan Loss Provision, Stock Options and Income Tax Expenses     493     1,569  
Provision for Loan Losses     0     1,853  
Stock Option Expense     9     29  
Income Tax Expense     0     0  
Net Income/(Loss)   $ 484   $ (313 )
EPS   $ 0.11   $ (0.09 )
               

Contact Information

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