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.

SOURCE Puget Sound Bank