2014

Puget Sound Bank Earnings Increase to $1,573,095 in the First Nine Months of 2012

BELLEVUE, Wash., Oct. 17, 2012 /PRNewswire/ -- Puget Sound Bank (OTCBB: PUGB), today reported that net income for third quarter increased to $529,649 or $.21 per share compared to a loss of $350,406, for third quarter 2011. Net income for the first nine months increased to $1,573,095 from $518,862 in the same period a year ago.

"Puget Sound Bank achieved quarterly earnings in excess of $500,000 for the fourth consecutive quarter driven by growth in lending to small and medium sized businesses and solid credit quality," said Jim Mitchell, President and Chief Executive Officer. "This is a result of an experienced, customer-oriented staff that provides a higher level of service and counsel to our business clients."

Loans grew 6% to $201 million from $190 million in third quarter 2011.  Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 65% of the loan portfolio at the end of the quarter. 

Deposits grew 8% to $227 million from $210 million a year ago.  Noninterest-bearing deposits increased 11% from third quarter 2011 and accounted for 34% of total deposits. 

Highlights:

  • Year-to-date return on equity increased to 8.12% from 1.16% for the same period a year ago.
  • Year-to-date return on assets increased to 0.85% from 0.31% a year earlier.
  • Total loans grew 6% from a year ago, to $201.3 million.
  • Non-interest bearing demand deposits increased 11% from third quarter 2011, to $77 million, 34% of total deposits.
  • The net interest margin (NIM) was 3.91% for the quarter, down from 4.09% a year ago.
  • Tangible book value per share grew 9.8% to $10.87 from a year earlier.
  • Nonperforming assets to total assets ratio of 0.91%, down from 1.29% in third quarter 2011.
  • Allowance for Loan and Lease Losses was 1.50%.
  • Capital ratios continue to substantially exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 16.3%.
  • The efficiency ratio was 64.9% compared to 67.9% a year ago.
  • Puget Sound Bank was awarded a 5-Star rating for the eighth consecutive quarter, which is the highest rating available from BauerFinancial, Inc., an independent banking rating agency.

About Puget Sound Bank

Puget Sound Bank is a locally-owned and operated commercial bank proudly serving the greater Puget Sound region.  Based out of Bellevue, Washington, the bank was founded to meet the specialized needs of small and medium-sized businesses, commercial real estate projects, professionals and individuals seeking a higher level of service in the Puget Sound region.  Staffed by the most experienced, customer-oriented banking professionals in the region, Puget Sound Bank offers a full range of competitive financial products with superior customer service and a consultative/partnership approach to its clients.  Puget Sound Bank provides online banking at www.pugetsoundbank.com and has access to a large branch network in the state of Washington.  The bank can also provide remote capture technology which allows its clients to make deposits from their offices.  Puget Sound Bank is located at 10500 NE 8th Street, Suite 1500, Bellevue, Washington.  For more information, please call 425-455-2400.

Safe Harbor Statement. This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Actual results may differ materially from the results expressed in forward-looking statements.  Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Puget Sound Bank with the Securities and Exchange Commission.  Puget Sound Bank undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Puget Sound Bank









Third Quarter 2012 


















CONSOLIDATED STATEMENT OF OPERATIONS







(Unaudited)











Quarterly





2012

2012


2011


2012

2011

($ in thousands except per share data)


3rd Qtr

2nd Qtr


3rd Qtr


YTD

YTD










EARNINGS









   Net interest income

$

2,460

2,471


2,342


7,509

7,037

   Provision for loan losses

$

110

111


1,306


443

1,614

   Net interest income after provision for loan losses

2,350

2,360


1,036


7,066

5,423

   NonInterest income

$

109

95


102


322

290

   NonInterest expense

$

1,666

1,667


1,659


5,033

4,940

   Pre-tax Net income

$

793

788


(521)


2,355

773

   Provision for income taxes (benefit)

$

263

262


(171)


782

254

   Net income

$

530

526


(350)


1,573

519

   Preferred dividends

$

25

25


171


74

316

Net income available to common shareholders

$

505

501


(521)


1,499

203

   1Earnings per share

$

0.21

0.21


(0.23)


0.64

0.09

   Average shares outstanding


2,349

2,349


2,316


2,347

2,312

   Total revenue

$

2,569

2,566


2,443


7,831

7,327

PERFORMANCE RATIOS









   Return on average assets


0.82%

0.87%


-0.60%


0.85%

0.31%

   1Return on average common equity


8.04%

8.08%


-8.79%


8.12%

1.16%

   Net interest margin


3.91%

4.26%


4.09%


4.20%

4.34%

   Efficiency ratio


64.9%

65.0%


67.9%


64.3%

67.4%










CAPITAL









   Tier 1 leverage ratio


13.54%

14.32%


13.87%




   Tier 1 risk-based capital ratio


15.01%

15.59%


15.08%




   Total risked based capital ratio 


16.26%

16.85%


16.33%




   Tangible Common Equity Ratio


9.65%

9.85%


9.40%













ASSET QUALITY









   Net loan charge-offs (recoveries)

$

0

486


1,038




   Allowance for loan losses

$

3,021

2,912


3,501




   Allowance for losses to total loans


1.50%

1.50%


1.84%




   Nonperforming loans

$

2,415

1,906


3,138




   Other real estate owned

$

0

0


0




   Nonperforming assets to total assets


0.91%

0.75%


1.29%






















 

Puget Sound Bank






Third Quarter 2012 












CONSOLIDATED FINANCIAL HIGHLIGHTS





(Unaudited)








Quarterly



2012

2012


2011

($ in thousands except per share data)


3rd Qtr

2nd Qtr


3rd Qtr







BALANCE SHEET












 Cash and Due From Banks 

$

8,940

7,198


7,300

 Investments 

$

52,484

49,048


44,629

 Commercial and Industrial Loans 

$

88,621

81,541


83,769

 Owner-Occupied Commercial Real Estate 

$

41,275

37,750


36,664

 Other Commercial Real Estate 

$

54,361

54,352


45,751

 Personal Loans 

$

14,921

19,436


20,838

 Non-accrual Loans 

$

2,415

1,906


3,138

 Deferred Loan Fees 

$

(324)

(296)


(293)

    Total Loans 

$

201,269

194,689


189,867

 Allowance for Loan Losses 

$

(3,022)

(2,912)


(3,501)

   Net Loans 

$

198,247

191,777


186,366

 Other Assets 

$

4,994

5,246


5,599

 Total Assets 

$

264,665

253,269


243,894







 Non-interest bearing Demand  

$

77,038

73,926


69,428

 Interest Bearing Demand  

$

20,314

18,101


6,772

 Money Market and Savings 

$

76,978

71,468


71,526

 Certificates of Deposit 

$

52,460

53,759


62,274

    Total Deposits 

$

226,791

217,254


210,000

 Borrowings 


-

-


-

Other Liabilities

$

2,450

1,186


1,070

Total Equity

$

35,425

34,829


32,824

   Total Liabilities and Equity

$

264,665

253,269


243,894







   Shareholders' equity

$

25,539

24,943


22,938

   Tangible book value per share


10.87

10.62


9.90







1Includes preferred stock dividends not included in net income.










 

SOURCE Puget Sound Bank



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