Puget Sound Bank First Quarter Profits Increase 13%; Return on Equity Increases 20%; Earnings Per Share Grow 24%

BELLEVUE, Wash., April 18, 2012 /PRNewswire/ -- Puget Sound Bank (OTCBB: PUGB), today reported that strong revenue growth and year-over-year loan growth contributed to net income of $517,065, or $.21 per share for first quarter 2012 compared to $456,124, or $.17 per share for first quarter 2011. 

"Puget Sound Bank's strong first quarter results are attributable to our continued focus on building strong relationships with small businesses and their owners," said Jim Mitchell, President and Chief Executive Officer. "Our focus on growing relationships lead to an increase in revenues of 14% from a year ago, compared to growth of just 2% in expenses.  These strong results are due to the extraordinary effort of the Puget Sound Bank team. "

Loans grew 9% to $187 million from $172 million in first quarter 2011.  Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 60% of the loan portfolio at the end of the quarter. 

Loan quality continues to be solid with nonperforming loans of $2.3 million, 1.0% of total assets. This percentage continues to be among the lowest of banks in the State.

Noninterest-bearing deposits increased 15% from first quarter 2011 and accounted for 32% of total deposits, compared to 28% a year ago.  Money market and savings deposits account for 36% of Puget Sound's total deposits. 

First Quarter Highlights:

• Revenues increased 14% from a year ago to $2.7 million.
• The net interest margin (NIM) was 4.44% for the quarter, up 8 basis points from first quarter 2011 and up 12 basis points from prior quarter.
• Return of equity increased to 8.08% from 6.72% a year earlier.
• Total loans grew 9% from a year ago, to $187.5 million.
• Non-interest bearing demand deposits increased 15% from first quarter 2011, to $63.7 million.
• Tangible book value per share grew 5% to $10.37 from a year earlier.
• Nonperforming assets to total assets ratio of 0.99%, down from 1.22% in prior quarter and down from 1.09% in first quarter 2011.
• Allowance for Loan and Lease Losses is 1.75%.
• Capital ratios continue to substantially exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 16.9%.
• Puget Sound Bank was awarded a 5-Star rating for the sixth consecutive quarter, which is the highest rating available from BauerFinancial, Inc., an independent banking rating agency.

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