Puget Sound Bank Second Quarter Profits Jump 27%; Return on Equity Increases 38%; Record First Half Net Income of $1,043,446

BELLEVUE, Wash., July 18, 2012 /PRNewswire/ -- Puget Sound Bank (OTCBB: PUGB.OB), today reported that net income for second quarter increased 27% to $526,381, or $.21 per share compared to $413,145, or $.15 per share for second quarter 2011. Net income for the first six months increased 20% from the same period a year ago to $1,043,446.

"Puget Sound Bank continues to produce consistently strong earnings driven by solid loan and deposit growth and improving credit quality," said Jim Mitchell, President and Chief Executive Officer. "We are very pleased that the bank's nonperforming loans are just 0.75% of total assets, which is among the lowest levels in the State."

Loans grew 11% to $195 million from $175 million in second quarter 2011.  Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 62% of the loan portfolio at the end of the quarter. 

Deposits grew 11% to $217 million from $197 million a year ago.  Noninterest-bearing deposits increased 28% from second quarter 2011 and accounted for 34% of total deposits, compared to 29% a year ago. 

Second Quarter Highlights:

• Return of equity increased 38% to 8.08% from 5.83% a year earlier.
• Return on assets increased 17% to 0.87% from 0.75% in second quarter 2011.
• Total loans grew 11% from a year ago, to $194.7 million.
• Non-interest bearing demand deposits increased 28% from second quarter 2011, to $73.9 million, 34% of total deposits.
• The net interest margin (NIM) was 4.26% for the quarter, down from 4.57% a year ago.
• Tangible book value per share grew 5% to $10.62 from a year earlier.
• Nonperforming assets to total assets ratio of 0.75%, down from 0.99% in prior quarter and down from 1.19% in second quarter 2011.
• Allowance for Loan and Lease Losses was 1.50%.
• Capital ratios continue to substantially exceed regulatory requirements for a well-capitalized financial institution with total risk-based capital at 16.9%.
• The efficiency ratio was 65%.
• Puget Sound Bank was recognized by the Puget Sound Business Journal as a finalist for Washington's Best Workplaces in 2012.
• Puget Sound Bank was awarded a 5-Star rating for the seventh 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