2014

Puget Sound Bank Earnings Increase to $533,126 in First Quarter

BELLEVUE, Wash., April 17, 2013 /PRNewswire/ -- Puget Sound Bank (OTCBB: PUGB), today reported that net income for the 1Q 2013 increased to $533,126 or $.21 per share from $359,516 or $.14 per share in 4Q 2012. Net income in 1Q 2012 was $517,065 or $.21 per share. 

"We continue to have strong balance sheet growth in combination with excellent asset quality. Assets grew 17% from a year ago with continued improvement in nonperforming asset levels," said Jim Mitchell, President and Chief Executive Officer. "We were particularly pleased to announce an agreement to acquire Core Business Bank (Core). Core is a great fit culturally as their business model focuses on small and medium sized business lending like ours."

Net income for the quarter was impacted by acquisition-related expenses of approximately $230,000 related to the agreement to acquire Core Business Bank. Net income would have been nearly $700,000 this quarter without those expenses.

Loans grew 9% to $204 million from $187 million a year ago. Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, grew 22% from a year ago and accounted for 67% of the loan portfolio at the end of the year compared to 60% at the end of 1Q 2012. 

Nonperforming assets declined to 0.66% of assets from 0.99% a year ago.

Deposits grew 19% to $238 million from $201 million a year ago.  Noninterest-bearing deposits increased 50% from 1Q 2012 and accounted for 40% of total deposits compared to 32% a year ago. 

1Q 2013 Highlights: 

  • Return on equity increased to 7.75% from 5.23% last quarter.
  • Return on assets increased to 0.81% from 0.55% last quarter.
  • Total assets grew 17% from a year ago, to $276 million.
  • Non-interest bearing demand deposits increased 50% from a year ago, to $96 million, 40% of total deposits.
  • The net interest margin (NIM) was 4.20% for the quarter, up from 4.11% last quarter.
  • Tangible book value per share grew 7% to $11.13 from $10.37 a year earlier.
  • Nonperforming assets to total assets ratio of 0.66%, down from 0.99% a year ago.
  • Allowance for Loan and Lease Losses was 1.52%.
  • Capital ratios continue to substantially exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 16.58%.
  • The efficiency ratio was 69.6% compared to 61.5% last quarter.
  • Puget Sound Bank was awarded a 5-Star rating for the ninth consecutive quarter, which is the highest rating available from BauerFinancial, Inc., an independent banking rating agency.
  •  Puget Sound Bank is traded on the over-the-counter bulletin board with the symbol PUGB.

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

First Quarter 2013 


CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)



Quarterly



2013

2012


2012

($ in thousands except per share data)


1st Qtr

4th Qtr


1st Qtr


EARNINGS

   Net interest income

$

2,629

2,624


2,578

   Provision for loan losses

$

46

549


223

   Net interest income after provision for loan losses


2,583

2,074


2,355

   NonInterest income

$

139

195


118

  NonInterest expense

$

1,928

1,733


1,699

   Pre-tax Net income

$

794

536


774

   Provision for income taxes (benefit)

$

261

177


257

   Net income

$

533

360


517

   Preferred dividends

$

25

25


25

Net income available to common shareholders

$

508

335


492

   1Earnings per share

$

0.21

0.14


0.21

   Average shares outstanding


2,369

2,350


2,344

   Total revenue

$

2,768

2,818


2,696

PERFORMANCE RATIOS

   Return on average assets


0.81%

0.55%


0.85%

   1Return on average common equity


7.75%

5.23%


8.08%

   Net interest margin


4.20%

4.11%


4.44%

   Efficiency ratio


69.6%

61.5%


63.0%


CAPITAL

   Tier 1 leverage ratio


13.68%

13.56%


14.05%

   Tier 1 risk-based capital ratio


15.33%

14.66%


15.67%

   Total risked based capital ratio 


16.58%

15.91%


16.92%

   Tangible Common Equity Ratio


9.59%

9.68%


10.32%


ASSET QUALITY

   Net loan charge-offs (recoveries)

$

213

330


317

   Allowance for loan losses

$

3,095

3,241


3,288

   Allowance for losses to total loans


1.52%

1.51%


1.75%

   Nonperforming loans

$

1,834

3,665


2,346

   Other real estate owned

$

0

0


0

   Nonperforming assets to total assets


0.66%

1.37%


0.99%

 

Puget Sound Bank

First Quarter 2013 


CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)



Quarterly



2013

2012


2012

($ in thousands except per share data)


1st Qtr

4th Qtr


1st Qtr


BALANCE SHEET


 Cash and Due From Banks 

$

8,503

8,903


6,070

 Investments 

$

61,757

42,673


40,834

 Commercial and Industrial Loans 

$

99,031

101,666


75,359

 Owner-Occupied Commercial Real Estate 

$

37,197

40,666


36,749

 Other Commercial Real Estate 

$

51,554

55,392


53,175

 Personal Loans 

$

14,391

15,216


20,099

 Non-accrual Loans 

$

1,834

2,286


2,347

 Deferred Loan Fees 

$

(360)

(361)


(242)

    Total Loans 

$

203,647

214,865


187,487

 Allowance for Loan Losses 

$

(3,095)

(3,241)


(3,288)

   Net Loans 

$

200,551

211,625


184,199

 Other Assets 

$

5,218

5,188


4,958

 Total Assets 

$

276,029

268,389


236,061


 Non-interest bearing Demand  

$

95,560

87,211


63,706

 Interest Bearing Demand  

$

17,763

19,307


17,562

 Money Market and Savings 

$

78,473

74,048


71,955

 Certificates of Deposit 

$

46,611

49,486


47,623

    Total Deposits 

$

238,407

230,053


200,846

 Borrowings 


-

-


-

Other Liabilities

$

1,278

2,474


978

Total Equity

$

36,344

35,862


34,237

   Total Liabilities and Equity

$

276,029

268,389


236,061


   Shareholders' equity

$

26,458

25,976


24,351

   Tangible book value per share


11.13

10.99


10.37


1Includes preferred stock dividends not included in net income.






SOURCE Puget Sound Bank



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