SOURCE: Pacific Commerce Bank

Pacific Commerce Bank

October 25, 2012 21:28 ET

Pacific Commerce Bank Reports 2012 Third Quarter Financial Results

LOS ANGELES, CA--(Marketwire - Oct 25, 2012) - 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  
Net Interest Income     1,536       1,809  
Non-Interest Income     136       326  
Total Income     1,672       2,135  
Non-Interest Expense     1,516       1,520  
Income Before Loan Loss Provision, Stock Options and Income Tax Expenses     156       615  
Provision for Loan Losses     0       1,398  
Stock Option Expense     4       11  
Income Tax Expense     0       0  
Net Income/(Loss)   $ 152     $ (794 )
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  
Net Interest Income     4,613       5,596  
Non-Interest Income     916       1,558  
Total Income     5,529       7,154  
Non-Interest Expense     4,881       4,971  
Income Before Loan Loss Provision, Stock Options and Income Tax Expenses     648       2,183  
Provision for Loan Losses     0       3,251  
Stock Option Expense     13       40  
Income Tax Expense     0       0  
Net Income/(Loss)   $ 635     $ (1,108 )
EPS   $ 0.14     $ (0.32 )
                 

Contact Information

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