Puget Sound Bank Earnings Increase 53% in 2012 to $1,932,612

BELLEVUE, Wash., Jan. 16, 2013 /PRNewswire/ -- Puget Sound Bank (OTCBB: PUGB) today reported that net income for the year increased 53% to $1,932,612 or $.78 per share compared to income of $1,263,963 and $.40 per share for 2011. Net income for 4Q was $359,516 or $.14 per share.

"Puget Sound Bank's performance was outstanding in 2012," said Jim Mitchell, President and Chief Executive Officer. "The bank's earnings grew by 53%, loan and deposit growth continues to be among the highest in the State and nonperforming assets improved to 0.85% of assets."

Loans grew 11% to $215 million from $194 million at the end of 2011.  Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 67% of the loan portfolio at the end of the year compared to 63% at the end of 2011. 

Deposits grew 8% to $230 million from $213 million a year ago. Noninterest-bearing deposits increased 40% from the end of 2011 and accounted for 38% of total deposits compared to 29% a year ago. 

2012 Highlights: 

• Return on equity increased to 7.37% in 2012 from 4.00% in 2011.
• Return on assets increased to 0.77% in 2012 from 0.55% a year earlier.
• Total loans grew 11% from a year ago, to $215 million.
• Non-interest bearing demand deposits increased 40% from the end of 2011, to $87 million, 38% of total deposits.
• The net interest margin (NIM) was 4.18% for the year, down from 4.33% a year ago.
• Tangible book value per share grew 8% to $10.99 from $10.22 a year earlier.
• Nonperforming assets to total assets ratio of 0.85%, down from 1.22% at the end of 2011.
• Allowance for Loan and Lease Losses was 1.51%.
• Capital ratios continue to substantially exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 15.91%.
• The efficiency ratio was 63.5% for the year compared to 66.3% a year ago.
• 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 8^th 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.

SOURCE Puget Sound Bank