LOS ANGELES, CA -- (Marketwired) -- 04/25/13 -- 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