SOURCE: Pacific Commerce Bank

Pacific Commerce Bank

April 25, 2013 11:36 ET

Pacific Commerce Bank Reports First Quarter 2013 Financial Results

LOS ANGELES, CA--(Marketwired - Apr 25, 2013) - Pacific Commerce Bank (OTCBB: PFCI) today announced net income of $235,000 or $0.05 per share for the first quarter of 2013. This compares to net income of $318,000 or $0.07 per share for the same quarter of 2012. 

After a highly successful transition year in 2012, first quarter 2013 results are a continuation of the very positive trends shown by Pacific Commerce Bank in the second half of 2012, following the hiring of Scott R. Andrews, as President and Chief Executive Officer in June, and the subsequent restructuring of the Bank's management team and organizational structure. Business development efforts yielded successful results in the first quarter with over $20 million in new loan originations and the addition of significant new customer relationships.

CEO Andrews commented, "Results for the first quarter are indicative of the continued success in our business development efforts and especially in the ongoing reduction in classified assets, which have combined to position the Bank for future growth opportunities.

"With the introduction of Business Online Banking in the first quarter, Pacific Commerce Bank has the products and services business clients need to efficiently manage their banking relationships online. We have expanded our Treasury Management product line-up and added sales and support staff to this strategically important product line." 

Andrews continued, saying, "Loan growth of nearly $13 million in the first quarter and deposit growth of over $4 million provide the foundation for a solid year of profitability in 2013." Net income for the first quarter consists of core operating earnings generated from new loan fundings, while noninterest expense was down 3.2% versus the same period last year, primarily due to lower problem credit related expenses.

Asset quality continued to improve in the first quarter of 2013. Total classified assets fell to 27% of Total Equity plus Loan Loss Reserves as of March 31, 2013. Year-over-year, total classified assets were reduced from 89% to 27% of Total Equity plus Loan Loss Reserves, a reduction of $16.1 million. Asset quality improvements are expected to continue throughout 2013.

Plans to move to a fully hosted "cloud" environment for Information Technology in the third quarter of 2013 are progressing on schedule, further enhancing the Bank's risk management efforts.

"The ongoing asset quality improvements and strong capital position of Pacific Commerce Bank are significant, and provide a platform from which to take advantage of future opportunities in the Southern California marketplace", commented Chairman Thomas Iino.

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

Tier 1 Leverage Ratio: 13.70%
Tier 1 Risk-Based Capital Ratio: 16.98%
Total Risk-Based Capital Ratio: 18.26%

Selected financial highlights as of March 31, 2013:

  • Total assets were $159.5 million compared to $161.8 million a year ago and $155.9 million at year-end 2012

  • Total loans were $129.7 million compared to $112.2 million a year ago and $116.3 million at year-end 2012

  • Total deposits were $137.0 million compared to $140.1 million a year ago and $133.1 million at year-end 2012

  • Total investments were $6.2 million compared to $24.3 million a year ago and $15.4 million at year-end 2012

  • Non-accrual loans were $1.3 million compared to $9.4 million a year ago and $3.5 million at year-end 2012

  • Allowance for Loan Losses to Total Loans was 3.64% versus 4.76%, a year ago

  • Net interest margin for the first quarter was 4.13%, an improvement of 24 basis points compared to the same quarter a year ago

  • Average cost of funds was 0.37% in the first quarter 2012, versus 0.44% for the same quarter 2012

  • Total Tangible Equity to Total Tangible Assets was 13.29% versus 12.78% 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:

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   3/31/2013   3/31/2012
Total Assets   $159,509   $161,884
Total Investments   $6,229   $24,296
Gross Loans   $129,691   $112,185
Allowance for Loan Losses   ($4,731)   ($5,350)
Other Real Estate Owned   $2,581   $4,576
Total Deposits   $136,980   $140,056
Total Borrowings   $0   $0
Total Stockholders' Equity   $21,469   $20,963
Net Charge-offs/(Recoveries)   ($28)   $626
Total Classified Loans   $4,634   $18,759
Total Non-Accrual Loans   $1,298   $9,386
ALLL / Total Loans   3.64%   4.76%
ALLL / Non-Accrual Loans   365%   52%
Common Shares Outstanding   4,461,255   4,461,255
    For the Three Months
Ended March 31,
Total Interest Income   $1,642   $1,745
Total Interest Expense   120   165
Net Interest Income   1,522   1,580
Non-Interest Income   323   401
Total Income   1,845   1,981
Non-Interest Expense   1,610   1,663
Income Before Loan Loss Provision, Stock Options and Income Tax Expenses   235   318
Provision for Loan Losses   0   0
Income Tax Expense   0   0
Net Income   $235   $318
EPS   $0.05   $0.07

Contact Information

  • For more information, contact:
    Pacific Commerce Bank
    Richard Koh
    Chief Financial Officer