PACIFIC COM BK 
By LOS ANGELES, CA -- (Marketwired) -- 10/09/13 -- Pacific Commerce Bank (OTCQB: PFCI) today reported financial results for the third quarter and the nine months ended September 30, 2013 that reflected a $4.3 million tax benefit and another solid quarter of loan and core deposit growth.
Net income for the third quarter of 2013 was $4,389,000 or $0.98 per share, which compares to net income of $152,000 or $0.03 per share for the same quarter last year. 2013 third quarter net income reflected a $4.3 million tax benefit and gains on sales of SBA loans of approximately $37,000.
For the nine months ended September 30, 2013, net income was $5,191,000 or $1.16 per share, which compares to net income of $635,000 or $0.14 per share for the same period in 2012.
Asset quality has stabilized in the third quarter of 2013 with additional reductions in non-performing loans resulting in a ratio of NPL's to total loans of 0.39% versus 4.88% last year at this time. Non-performing assets were reduced to 1.70% of total assets versus 4.61% a year ago. Non-accrual loans were only $524,000 at quarter-end.
Third quarter results showed continued loan portfolio growth, up $4.6 million for the third quarter and $21 million, or 18.2% from the same period last year. Strong core deposit growth in the third quarter contributed to a further reduction of the Bank's overall cost of funds to 0.32% an 18% reduction versus one year ago.
CEO Scott R. Andrews commented, "Significant asset quality improvements, a net interest margin over 4.00%, consistent loan production and core deposit growth have been the hallmarks of the Bank's performance over that past five quarters, which has resulted in much improved financial performance and the full release of both of its Regulatory Orders in the third quarter. Technology improvements in Treasury Management, credit underwriting and financial reporting have improved operating efficiencies and implementation of a fully-hosted network architecture will be completed early in the fourth quarter."
Andrews further commented "An application has been submitted to open a full-service branch in San Diego County in late October which will support our SBA loan origination efforts and further improve the Bank's level of core deposit funding. Our loan pipeline remains quite robust and our improved Treasury Management platform has helped grow our core deposit levels which improve convenience and online functionality for our customers."
Chairman Thomas Iino commented, "Third quarter results, highlighted by the recapture of the Bank's deferred tax asset, signify the completion of the turnaround at Pacific Commerce Bank that began in the third quarter of 2012 with the hiring of CEO Scott Andrews and his new management team and structure put in place at that time. Our focus now shifts to providing our shareholders with exceptional returns over the long term and implementation of our merger and acquisition strategy."
Pacific Commerce Bank is well capitalized and poised for future growth opportunities. The Bank's regulatory capital ratios as of September 30, 2013 are as follows:
Tier 1 Leverage Ratio: 14.46%
Tier 1 Risk-Based Capital Ratio: 16.50%
Total Risk-Based Capital Ratio: 17.78%
Selected financial highlights as of September 30, 2013:
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Total assets were $165.5 million compared to $163.8 million a year ago and $155.9 million at year-end 2012
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Total loans were $135.6 million compared to $114.7 million a year ago and $116.3 million at year-end 2012
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Total deposits were $138.0 million compared to $141.3 million a year ago and $133.1 million at year-end 2012 with reductions seen in time deposits as core deposit levels increased
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Non-accrual loans were $524 thousand compared to $5.6 million a year ago, a reduction of $5.1 million or 90%
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Allowance for Loan Losses to Total Loans was 3.83% versus 4.39%, a year ago
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Net interest margin for the third quarter was 3.93%, an improvement of 6 basis points compared to the same quarter a year ago
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Year-to-date net interest margin was 4.04%, an improvement of 16 basis points compared to the same period a year ago
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QTD average cost of funds was 0.32% in the third quarter 2013, versus 0.39% for the same quarter 2012
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YTD average cost of funds was 0.35%, versus 0.43% for the same period 2012
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Total Tangible Equity to Total Tangible Assets was 15.81% versus 12.93% 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
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; demand for loan products; deposit flows; its ability to develop and implement new technologies; and other factors. 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 9/30/2013 9/30/2012
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Total Assets $165,518 $163,800
Total Investments $1,303 $24,366
Gross Loans $135,737 $114,843
Allowance for Loan Losses ($5,196) ($5,047)
Other Real Estate Owned $2,295 $1,942
Total Deposits $137,995 $141,317
Total Borrowings $0 $0
Total Stockholders' Equity $26,416 $21,435
Net (Recoveries)/ Charge-offs ($492) $929
Total Non-Accrual Loans $524 $10,154
ALLL / Total Loans 3.83% 4.39%
ALLL / Non-Accrual Loans 991% 90%
For the Three Months
Ended September 30,
STATEMENT OF OPERATIONS 2013 2012
Total Interest Income $1,669 $1,674
Total Interest Expense 112 138
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Net Interest Income 1,557 1,536
Non-Interest Income 138 136
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Total Income 1,695 1,672
Non-Interest Expense 1,584 1,516
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Income Before Loan Loss Provision, Stock Options and
Income Tax Expenses 111 156
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Provision for Loan Losses 0 0
Stock Option Expense 7 4
Income Tax Expense (4,285) 0
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Net Income $4,389 $152
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EPS $0.98 $0.03
For the Nine Months
Ended September 30,
STATEMENT OF OPERATIONS 2013 2012
Total Interest Income $5,009 $5,068
Total Interest Expense 349 455
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Net Interest Income 4,660 4,613
Non-Interest Income 1,066 916
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Total Income 5,726 5,529
Non-Interest Expense 4,798 4,881
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Income Before Loan Loss Provision, Stock Options and
Income Tax Expenses 928 648
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Provision for Loan Losses 0 0
Stock Option Expense 22 13
Income Tax Expense (4,285) 0
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Net Income $5,191 $635
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EPS $1.16 $0.14
For more information, contact: Pacific Commerce Bank Richard Koh Chief Financial Officer 213-617-0082
Source: Pacific Commerce Bank
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