LOS ANGELES (Business Wire) -- Pacific Commerce Bank (OTCBB:PFCI) announced financial results today for the third quarter ended September 30, 2008. Net income for the quarter was $166,000 compared to $63,000 for the same quarter in 2007. The increase was attributable to $319,000 increase in net interest income offset by $278,000 increase in non-interest expense, $105,000 decrease in provision for loan losses, and $54,000 reduction in income tax benefits. Operating income before loan loss provision, stock options expense, and income tax benefits increased $53,000 to $273,000 compared to $220,000 for the third quarter in 2007.
Year-to-date net income was $475,000 compared to $625,000 a year ago, a decrease of $150,000. The decrease was attributable to increase in net interest income and non-interest income of $961,000 and $82,000, respectively; offset by an increase in non-interest expense of $850,000 and a decrease in income tax benefits and loan loss provision of $426,000 and $63,000, respectively. The increase in non-interest expense was related to increases in business development, personnel, and data processing expenses. Income tax benefit was decreased to reflect decrease in net interest margin. Operating income before loan loss provision, stock options and income tax benefits was $682,000 compared to $489,000 a year ago, an increase of $193,000 or 39%.
There was one non-performing C&I loan for $25,000 at September 30, 2008. The ratio of non-performing loans to total loans was less than 0.02%.
The following are some of the balance sheet highlights at September 30, 2008.
-- Total assets increased 22% to $165,410,000 at September 30, 2008 from $135,350,000 a year ago
-- Total Investments also increased by 39% to $16,244,000 from $11,653,000 last year.
-- Total loans outstanding increased to $140,307,000 at September 30, 2008 compared to $110,697,000 at September 30, 2007.
-- Allowance for loan losses was $1,804,000 versus $1,341,000 a year ago.
-- Total deposits increased 16% to $133,070,000 from $114,109,000 at September 30, 2007.
Highlights of results of operations for the period ended September 30, 2008 include the following:
-- Year-to-date net interest income was $4,497,000 compared to $3,537,000 for the same period a year ago, an increase of 27%.
-- Year-to-date non-interest income was $243,000 compared to $161,000 a year ago.
-- Total non-interest expense as of September 30, 2008 climbed to $4,059,000 compared to $3,209,000 for the nine months ended 2007, an increase of 26%.
-- Year-to-date net interest margin decreased to 3.87% from 4.13% a year ago due to series of decreases in WSJ Prime Rates in 2008.
Mr. Brian H. Kelley, Chief Executive Officer, commented, "These are obviously challenging times for our national economy as we grapple with a credit crunch largely attributable to falling housing prices, rising default rates and a global financial meltdown. Happily, as a small business bank, we have largely been spared the problems endured by bigger banks with their lending concentrations in the areas of Subprime housing, construction and subdivision development. Our loan portfolio is fundamentally sound, the bank remains well capitalized and we are still actively looking to expand our client base." In looking forward to the coming year, Kelley stated: "In times such as these, we often see increased opportunities for well-run companies and banks such as ours to increase market share. Where others might be overwhelmed by challenges and problems, we see greater opportunities for growth and innovation."
Established in 2002, Pacific Commerce Bank is a community bank with offices in Little Tokyo and West Los Angeles. It was founded by Downtown professionals and business owners. It is publicly traded on the OTC Bulletin Board under the stock symbol PFCI. The bank offers small business loans, asset-based loans, construction and permanent real estate financing, SBA government-guaranteed loans, as well as personal and professional credit lines. Information on the bank as well as a copy of the bank's most recent newsletter and financial summary can be accessed through its website: "pacificcommercebank.com" or by calling between 9:00 a.m. and 5:00 p.m. at 213-617-0082.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
The financial information in this press release is based on our unaudited financial results. Certain statements in this press release, including statements regarding the anticipated development and expansion of the bank's business, and the intent, belief, and current expectations of the bank, its directors, or its officers, 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 Highlights
BALANCE SHEET
(In thousands, except for
shares outstanding and
book value per share) 9/30/2008 9/30/2007 $ Change % Change
Total Assets $ 165,410 $ 135,350 $30,060 22.2%
Total Investments $ 16,244 $ 11,653 $ 4,591 39.4%
Total Loans $ 140,307 $ 110,697 $29,610 26.7%
Deferred Loan Fees ($253) ($285) $ 32 -11.2%
Allowance for Loan Losses ($1,804) ($1,341) ($463) 34.5%
Total Net Loans $ 138,250 $ 109,070 $29,180 26.8%
Total Deposits $ 133,070 $ 114,109 $18,961 16.6%
Total Borrowings $ 14,253 $ 4,002 $10,251 256.1%
Total Stockholders' Equity $ 16,980 $ 16,252 $ 728 4.5%
Non-performing assets $ 25 $ 0
Non-performing
assets/Total loans 0.02% 0.00%
QTD Net Interest Margin 3.98% 4.06%
YTD Net Interest Margin 3.87% 4.13%
Net Loans to Deposits 103.9% 95.6%
Tangible equity ratio 10.3% 12.0%
Ending shares outstanding 2,444,255 2,437,220
Ending book value per
share $ 6.95 $ 6.67
For the Three Months For the Nine Months
STATEMENT OF OPERATIONS Ended September 30, Ended September 30,
----------------------- -------------------
(In thousands) 2008 2007 2008 2007
Total interest income $ 2,452 $ 2,320 $ 7,210 $ 6,188
Total interest expense 838 1,025 2,712 2,651
----------- ----------- -------- ----------
Net interest income 1,614 1,295 4,498 3,537
Total non-interest income 61 49 243 161
----------- ----------- -------- ----------
Total Income 1,675 1,344 4,741 3,698
Total non-interest expense 1,401 1,123 4,059 3,209
----------- ----------- -------- ----------
Income before loan loss
provision, stock options
and income tax expenses 274 221 682 489
----------- ----------- -------- ----------
Provision for loan losses 151 256 450 513
Stock option expense 46 45 116 136
Income tax
expense/(benefit) (90) (144) (359) (785)
----------- ----------- -------- ----------
Net Income $ 167 $ 64 $ 475 $ 625
=========== =========== ======== ==========
Earnings per share $ 0.07 $ 0.03 $ 0.19 $ 0.26
Pacific Commerce Bank
Richard Koh, Chief Financial Officer, 213-617-008
http://www.pacificcommercebank.com
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