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 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