LOS ANGELES, CA -- (Marketwire) -- 10/25/12 -- 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