Puget Sound Bank Earns $1.3 Million for 2011; Revenues Grow 25%; Record Fourth Quarter Profits Increase 71%

BELLEVUE, Wash., Jan. 25, 2012 /PRNewswire/ -- Puget Sound Bank (OTCBB: PUGB.OB), today reported that strong revenue growth and year-over-year loan growth contributed to net income of $1,263,963, or $.40 per share for 2011.  Puget Sound Bank's quarterly profits increased 71% from a year ago, with earnings of $745,100, or $.32 per share in the fourth quarter of 2011 compared to $436,361 in fourth quarter of 2010, $.16 per share.

Loans grew 13% in 2011 to $194 million from $172 million at the end of 2010.  Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 63% of the loan portfolio at the end of 2011.  

Loan quality continues to be solid with nonperforming loans of $3.1 million, 1.2% of total assets. This continues to be among the lowest percentages of banks in the State.

Deposits increased 10% to $213 million from $194 million at the end of 2010. Noninterest-bearing deposits almost doubled during the past year, and accounted for 29% of total deposits, compared to 16% a year ago.  Money market and savings deposits account for 32% of Puget Sound's total deposits.  

"We are very pleased with the bank's achievements this year.  Loan quality, loan and deposit growth, expense control and net interest margin improvement fueled the strong fourth quarter results and provide momentum as we start 2012," said Jim Mitchell, President and Chief Executive Officer.  

Fourth Quarter and 2011 Highlights:

  • Revenues increased 25% in 2011 to $10.0 million from a year ago.
  • Total loans grew 13% from a year ago, to $193.6 million.
  • Total deposits grew 10% from a year ago, to $212.9 million.
  • Non-interest bearing demand deposits jumped 98% to $62.2 million from a year earlier and account for 29% of total deposits.
  • The net interest margin (NIM) was 4.33% for the year, up 67 basis points from a year ago; NIM improved by 23 basis point in the quarter, to 4.32%, compared to the fourth quarter in 2010.
  • Record profitability in fourth quarter with return on average assets of 1.22% and return on average common equity of 12.47%.
  • Tangible book value per share grew 4% to $10.22 from a year earlier.
  • Allowance for Loan and Lease Losses is 1.76%.
  • Capital ratios continue to substantially exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 15.6%.
  • In August, Puget Sound Bank fully redeemed the $4.7 million of preferred stock issued through the Treasury's Capital Purchase program (TARP).
  • In September, Puget Sound Bank was named one of Washington's 100 fastest growing private companies and the only bank in the top 100 list.  Puget Sound Bank was also named one of the Eastside's 50 fastest growing private companies and again, the only bank on the list.

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

Fourth Quarter 2011










CONSOLIDATED STATEMENT OF OPERATIONS

(Unaudited)



Quarterly





2011

2011


2010


2011

2010

($ in thousands except per share data)


4th Qtr

3rd Qtr


4th Qtr


Full Year

Full Year










EARNINGS









  Net interest income

$

2,571

2,342


2,270


9,608

7,655

  Provision for loan losses

$

64

1,306


563


1,679

1,133

  Net interest income after provision for loan losses

2,506

1,036


1,707


7,929

6,522

  NonInterest income

$

106

101


80


395

330

  NonInterest expense

$

1,497

1,659


1,467


6,437

5,612

  Pre-tax Net income

$

1,115

(522)


319


1,888

1,239

  Provision for income taxes (benefit)

$

370

(171)


(117)


624

(117)

  Net income

$

745

(350)


436


1,264

1,357

  Preferred dividends

$

14

171


73


330

290

Net income available to common shareholders

$

731

(521)


364


934

1,066

  (1)Earnings per share

$

0.32

(0.23)


0.16


0.40

0.47

  Average shares outstanding


2,318

2,316


2,288


2,313

2,283

  Total revenue

$

2,676

2,443


2,349


10,003

7,984

PERFORMANCE RATIOS









  Return on average assets


1.22%

-0.60%


0.76%


0.55%

0.62%

  (1)Return on average common equity


12.47%

-8.79%


6.45%


4.00%

4.86%

  Net interest margin


4.32%

4.09%


4.09%


4.33%

3.66%

  Efficiency ratio


55.9%

67.9%


62.5%


64.3%

70.3%










CAPITAL









  Tier 1 leverage ratio


13.65%

13.87%


11.70%




  Tier 1 risk-based capital ratio


14.36%

15.08%


13.60%




  Total risked based capital ratio


15.61%

16.33%


14.85%




  Tangible Common Equity Ratio


9.46%

9.40%


10.11%













ASSET QUALITY









  Net loan charge-offs (recoveries)

$

0

1,038


455




  Allowance for loan losses

$

3,406

3,501


3,164




  Allowance for losses to total loans


1.76%

1.84%


1.85%




  Nonperforming loans

$

3,057

3,138


2,561




  Other real estate owned

$

0

0


0




  Nonperforming assets to total assets


1.22%

1.29%


1.15%






Puget Sound Bank

Fourth Quarter 2011







CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)



Quarterly



2011

2011


2010

($ in thousands except per share data)


4th Qtr

3rd Qtr


4th Qtr







BALANCE SHEET












Cash and Due From Banks

$

9,449

7,300


3,610

Investments

$

45,833

44,629


44,538

Commercial and Industrial Loans

$

82,383

83,769


70,015

Owner-Occupied Commercial Real Estate

$

38,040

36,664


42,236

Other Commercial Real Estate

$

50,425

45,751


42,242

Personal Loans

$

19,716

20,838


14,671

Non-accrual Loans

$

3,057

3,138


2,561

Deferred Loan Fees

$

(277)

(293)


(317)

   Total Loans

$

193,344

189,867


171,408

Allowance for Loan Losses

$

(3,406)

(3,501)


(3,164)

  Net Loans

$

189,938

186,366


168,244

Other Assets

$

5,213

5,599


5,535

Total Assets

$

250,432

243,894


221,927







Non-interest bearing Demand  

$

62,172

69,428


31,372

Interest Bearing Demand  

$

30,719

6,772


26,144

Money Market and Savings

$

67,260

71,526


66,246

Certificates of Deposit

$

52,754

62,274


70,324

   Total Deposits

$

212,904

210,000


194,086

Borrowings


-

-


-

Other Liabilities

$

3,952

1,070


819

Total Equity

$

33,576

32,824


27,022

  Total Liabilities and Equity

$

250,432

243,894


221,927







  Shareholders' equity

$

23,690

22,938


22,432

  Tangible book value per share


10.22

9.90


9.81







(1) Includes preferred stock dividends and warrants expense not included in net income.



SOURCE Puget Sound Bank



RELATED LINKS
http://www.pugetsoundbank.com

Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

 

PR Newswire Membership

Fill out a PR Newswire membership form or contact us at (888) 776-0942.

Learn about PR Newswire services

Request more information about PR Newswire products and services or call us at (888) 776-0942.