LOS ANGELES, CA -- (Marketwire) -- 01/28/13 -- Pacific Commerce Bank (OTCBB: PFCI) today announced net income of $274,000 or $0.06 per share for the fourth quarter of 2012, and $908,000 or $0.20 per share for the twelve months ended December 31, 2012. This compares to a net loss of $5,000, or ($0.00) per share for the same quarter of 2011 and a net loss of $1.1 million, or ($0.32) per share for the twelve months ended December 31, 2011.
2012 was a year of positive transition for Pacific Commerce Bank, with Chairman Thomas Iino announcing 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. With the hiring of a new Chief Credit Officer, Gary Weitner, and Senior Commercial Lending Manager, Eric Karasawa, a renewed emphasis on quality, measured balance sheet restructuring occurred in the second half of 2012. The renewed business development culture achieved success with $40 million in new loan originations and the addition of significant new customer relationships.
CEO Andrews commented, "The positive momentum generated in the second half of 2012 has solidified the financial turnaround at Pacific Commerce Bank. Our asset quality problems are behind us, and the continuing high level of loan demand is encouraging for the measured growth in the loan portfolio seen in 2012 to continue."
With the hiring of SBA Department Manager, Tom Welch in September, the Bank renewed its efforts in Small Business Administration Lending, with the goal being to selectively hold and sell SBA loans over the coming years to take advantage of opportunities to recognize non-interest income. In September, Pacific Commerce Bank re-launched its Remote Deposit Capture product and will introduce "Business Online Banking," a robust suite of treasury management products, to its business customers in the first quarter of 2013.
Andrews continued, saying, "Investments in technology and treasury management products will enable the Bank to expand its market presence in current and future markets it seeks to serve."
Asset quality improved dramatically in the second half of 2012 as well. Total classified assets fell to 38% of Total Equity plus ALLL as of December 31, 2012. Year-to-date, total classified assets reduced by 66% or $19.7 million. Asset quality improvements are expected to continue throughout the first half of 2013, bringing the Bank up to, and perhaps better than, peer group levels in all asset quality categories.
2012 also saw enhancements to the Bank's risk management efforts with the hiring of Senior Risk Manager Joan Bolduc, who oversaw major improvements in both technology and operating risk management results. The Bank plans major technology enhancements and safeguards during the first half of 2013.
"The strong capital and liquidity position of Pacific Commerce Bank is a key strategic advantage as the Bank positions itself to capitalize on opportunities in the Southern California Market," commented Chairman Thomas Iino.
With the second successful capital raise in two years completed in March, 2012, the Bank is exceptionally well capitalized and poised for future growth opportunities. The Bank's regulatory capital ratios as of December 31, 2012 were as follows:
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