|By Marketwired .||
|January 23, 2014 06:00 AM EST||
LOS ANGELES, CA -- (Marketwired) -- 01/23/14 -- Pacific Commerce Bank (OTCQB: PFCI) today reported financial results for the fourth quarter and the twelve months ended December 31, 2013 that reflected annual net income after tax of $4.9 million along with another solid quarter of loan and core deposit growth.
For the full year ended December 31, 2013, net income was $4,925,000 or $1.10 per share, which compares to net income of $909,000 or $0.20 per share in 2012. After recovery of the Bank's $4.3 million deferred tax asset valuation allowance in the third quarter of 2013, taxes of $390,000 were recorded in the fourth quarter.
Net income before taxes for the fourth quarter of 2013 was $125,000 or $0.03 per share, which compares to net income before tax of $274,000 or $0.06 per share for the same quarter last year. 2013 fourth quarter net income before tax reflected several one-time income and expense items, including expenses relating to sale of one OREO property and write down of the Bank's other OREO property totaling $448,000, offset by a gain on sale of one of two OREO properties in the amount of $487,000. Other one-time expenses included charges related to conversion to a fully-hosted network environment and stock option expenses. Finally, in the fourth quarter of 2012, the Bank recognized a one-time gain on sale of securities in the amount of $195,000, which was not repeated in 2013.
Asset quality stabilized in 2013 with a $3.2 million reduction in non-performing loans, leaving only $264,000 in remaining non-accrual loans, and resulting in a ratio of NPL's to total loans of 0.18% versus 3.01% last year at this time. Non-performing assets were reduced to 0.29% of total assets versus 3.90% a year ago as a result of the sale of two of three OREO properties and the aforementioned reduction in non-performing loans. Total classified assets reduced to only $529,000 at year-end 2013 versus $10.0 million at year-end 2012, resulting in a ratio of total classified assets to tier 1 capital plus loan loss reserves of 1.69% versus 38.13% a year ago.
Total assets increased 11.1% to $173.1 million, an increase of $17.3 million over 2012 levels. The loan portfolio grew $29.9 million for the year, or 26% with growth of $10.6 million in the fourth quarter of 2013. Strong core deposit growth of $18.3 million, a 25% increase year-over-year, contributed to a reduction of the Bank's overall cost of funds to 0.30% from 0.37% and an increase in net interest margin to 3.99% in 2013 from 3.89% in 2012.
CEO Scott R. Andrews commented, "2013 was a landmark year for Pacific Commerce Bank. In addition to solid balance sheet and core earnings growth, the recapture of our deferred tax asset valuation allowance was a significant event which exemplifies the financial turnaround of the Bank. Additionally, our full release from the Regulatory Orders PCB had been operating under for the past two years clears the path for the Bank to execute upon our strategic plan of growth via mergers and acquisitions throughout the Southern California marketplace."
Andrews further commented, "The opening of our full-service branch in San Diego County in December illustrates our commitment to organic growth and expansion in support of our merger growth strategy. Our SBA Department, located in San Diego, brings the opportunity for non-interest income and new and expanded customer relationships in that new market." Pacific Commerce Bank also has branch locations in Downtown and West Los Angeles.
Chairman Thomas Iino commented, "The Board of Directors is very pleased with what Pacific Commerce Bank accomplished in 2013, achieving every major objective set forth by the Board at the beginning of the year. Our attention is now singularly focused on providing meaningful shareholder returns utilizing the Bank's strong capital base, talented and committed Board and management team, and the tremendous market opportunity for mergers and acquisitions here in Southern California in 2014."
Pacific Commerce Bank is well capitalized and poised for future growth opportunities. The Bank's regulatory capital ratios as of December 31, 2013 are as follows:
Tier 1 Leverage Ratio: 14.06%
Tier 1 Risk-Based Capital Ratio: 15.67%
Total Risk-Based Capital Ratio: 16.95%
Selected financial highlights as of December 31, 2013:
- Total assets were $173.2 million compared to $155.9 million a year ago, an increase of 11.1%
- Total loans were $146.3 million compared to $116.5 million a year ago, a 25.6% year-over-year growth
- Total deposits were $145.5 million compared to $133.2 million a year ago with increase in core deposits of $18.3 million
- Non-accrual loans were $264 thousand compared to $3.5 million a year ago, a reduction of $3.2 million or 92.4%
- Allowance for Loan Losses to Total Loans was 3.42% versus 4.04%, a year ago
- Net interest margin for the fourth quarter was 3.83% compared 3.92% for the same quarter a year ago
- Year-to-date net interest margin was 3.99%, an improvement of ten basis points compared to the same period a year ago
- QTD average cost of funds was 0.30% versus 0.37% for the same period 2012
- YTD average cost of funds was 0.33% versus 0.41% for the same period 2012
About Pacific Commerce Bank
Established in 2002, Pacific Commerce Bank is a business-oriented community bank with offices in downtown Los Angeles, West Los Angeles, and San Diego. 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 12/31/2013 12/31/2012 ----------- ----------- Total Assets $ 173,154 $ 155,886 Total Investments $ 1,219 $ 15,426 Gross Loans $ 146,303 $ 116,463 Allowance for Loan Losses $ (5,006) $ (4,704) Other Real Estate Owned $ 244 $ 2,581 Total Deposits $ 145,516 $ 133,151 Total Borrowings $ 0 $ 0 Total Stockholders' Equity $ 26,204 $ 21,485 Net (Recoveries)/ Charge-offs $ (303) $ 1,273 Total Non-Accrual Loans $ 264 $ 3,498 ALLL / Total Loans 3.42% 4.04% ALLL / Non-Accrual Loans 1894% 135% For the Three Months Ended December 31, STATEMENT OF OPERATIONS 2013 2012 Total Interest Income $ 1,655 $ 1,676 Total Interest Expense 107 128 ------------ ------------ Net Interest Income 1,548 1,548 Non-Interest Income 775 383 ------------ ------------ Total Income 2,323 1,931 Non-Interest Expense 2,154 1,674 ------------ ------------ Income Before Loan Loss Provision, Stock Options and Income Tax Expenses 169 284 ------------ ------------ Provision for Loan Losses 0 0 Stock Option Expense 45 10 Income Tax Expense 390 0 ------------ ------------ Net Income $ (266) $ 274 ============ ============ EPS $ (0.06) $ 0.06 For the Twelve Months Ended December 31, STATEMENT OF OPERATIONS 2013 2012 Total Interest Income $ 6,654 $ 6,744 Total Interest Expense 456 583 ------------ ------------ Net Interest Income 6,208 6,161 Non-Interest Income 1,841 1,299 ------------ ------------ Total Income 8,049 7,460 Non-Interest Expense 6,952 6,528 ------------ ------------ Income Before Loan Loss Provision, Stock Options and Income Tax Expenses 1,097 932 ------------ ------------ Provision for Loan Losses 0 0 Stock Option Expense 66 23 Income Tax Expense (3,895) 0 ------------ ------------ Net Income $ 4,926 $ 909 ============ ============ EPS $ 1.10 $ 0.20
For more information, contact:
Pacific Commerce Bank
Chief Financial Officer
SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points of presence, SoftLayer provides infrastructure as a service to leading-edge customers ranging from Web startups to global enterprises. SoftLayer's modular architecture, full-featured API, and sophisticated automation provide unparalleled performance and control. Its flexible unified platform seamlessly spans physical and virtual devices linked via a world...
May. 29, 2016 07:00 AM EDT Reads: 2,282
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
May. 29, 2016 06:45 AM EDT Reads: 2,925
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
May. 29, 2016 06:30 AM EDT Reads: 610
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
May. 29, 2016 06:00 AM EDT Reads: 2,152
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
May. 29, 2016 06:00 AM EDT Reads: 1,334
SYS-CON Events announced today TechTarget has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. TechTarget is the Web’s leading destination for serious technology buyers researching and making enterprise technology decisions. Its extensive global networ...
May. 29, 2016 05:15 AM EDT Reads: 3,268
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
May. 29, 2016 05:00 AM EDT Reads: 1,965
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
May. 29, 2016 04:30 AM EDT Reads: 3,237
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
May. 29, 2016 03:30 AM EDT Reads: 971
The essence of data analysis involves setting up data pipelines that consist of several operations that are chained together – starting from data collection, data quality checks, data integration, data analysis and data visualization (including the setting up of interaction paths in that visualization). In our opinion, the challenges stem from the technology diversity at each stage of the data pipeline as well as the lack of process around the analysis.
May. 29, 2016 02:45 AM EDT Reads: 1,488
Many banks and financial institutions are experimenting with containers in development environments, but when will they move into production? Containers are seen as the key to achieving the ultimate in information technology flexibility and agility. Containers work on both public and private clouds, and make it easy to build and deploy applications. The challenge for regulated industries is the cost and complexity of container security compliance. VM security compliance is already challenging, ...
May. 29, 2016 02:30 AM EDT Reads: 1,337
Designing IoT applications is complex, but deploying them in a scalable fashion is even more complex. A scalable, API first IaaS cloud is a good start, but in order to understand the various components specific to deploying IoT applications, one needs to understand the architecture of these applications and figure out how to scale these components independently. In his session at @ThingsExpo, Nara Rajagopalan is CEO of Accelerite, will discuss the fundamental architecture of IoT applications, ...
May. 29, 2016 02:00 AM EDT Reads: 1,325
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
May. 29, 2016 01:45 AM EDT Reads: 2,635
SYS-CON Events announced today that Tintri Inc., a leading producer of VM-aware storage (VAS) for virtualization and cloud environments, will exhibit at the 18th International CloudExpo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, New York, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
May. 29, 2016 01:30 AM EDT Reads: 2,476
Enterprise networks are complex. Moreover, they were designed and deployed to meet a specific set of business requirements at a specific point in time. But, the adoption of cloud services, new business applications and intensifying security policies, among other factors, require IT organizations to continuously deploy configuration changes. Therefore, enterprises are looking for better ways to automate the management of their networks while still leveraging existing capabilities, optimizing perf...
May. 29, 2016 01:15 AM EDT Reads: 1,354