Pacific Commerce Bank (OTCBB:PFCI) announced financial results today for the second quarter ended June 30, 2008. For the second quarter of 2008, net income was $124,000 compared to $154,000 for the same quarter a year ago, a decrease of $30,000. This decrease was primarily attributable to a $54,000 decrease in income tax benefits. Income before loan loss provision, stock options expense, and income tax benefits increased $22,000 to $226,000 compared to $204,000 for the same quarter last year.
Year-to-date net income was $310,000 compared to $562,000 a year ago, a decrease of $252,000, however this largely reflected a decline in income tax benefits of $372,000 compared to the prior year. Adjusted income before non-cash expenses (loan loss provision, stock options expense and income tax benefits) was $410,000 compared to $269,000 a year ago, an increase of 52% or $141,000.
Noteworthy financial highlights for the second quarter of 2008 are as follows:
- Total assets increased to $161,912,000 at June 30, 2008 compared to $124,393,000 at June 30, 2007, an increase of 30% or $37,519,000.
- Total Investments grew by 20% to $15,925,000 from $13,224,000 a year ago.
- Total loans outstanding increased to $136,894,000 at June 30, 2008 compared to $101,260,000 at June 30, 2007, an increase of 35% or $35,634,000.
- Allowance for loan losses was $1,698,000 versus $1,085,000 at June 30, 2007, an increase of 54%.
- Total deposits climbed 18% to $115,467,000 from $97,514,000 a year ago.
- Total borrowings increased to $29,000,000 from $10,002,000 a year ago, which helped to fund our strong loan growth.
Highlights of results of operations for the period ended June 30, 2008 include the following:
- Net interest income for the second quarter was $1,502,000 compared to $1,192,000 a year ago, an increase of 26%.
- Total non-interest expense for the quarter was $1,388,000 compared to $1,051,000 a year ago, an increase of 27%.
- Net interest income for the six months ended June 30, 2008 was $2,885,000 compared to $2,242,000 for the same period a year ago, an increase of 29%.
- Year-to-date non-interest income increased to $183,000 compared to $112,000 a year ago, an increase of 63%.
- Total non-interest expense climbed to $2,658,000 for the year compared to 2,085,000 for the six months ended 2007, an increase of 27%.
- Year-to-date net interest margin was 3.83% compared to 4.18% for the same period a year ago.
Brian Kelley, Chief Executive Officer, commented, “Our Bank has finished another solid and profitable quarter in June of 2008, which saw continued growth in the overall Bank’s asset base as well as net interest income.” Mr. Kelley noted, “Although our bank and most of our competitors suffered from a real margin compression this year; our continued growth in earning assets enabled us to offset much of that margin squeeze.” He also noted that the Bank has largely escaped the credit problems encountered by other banks: “As a small business lender, we know our customers, their businesses and their needs. While other banks were chasing Sub-prime, construction loans and other higher risk products, we continued to stick with what we knew best.”
Established in 2002, Pacific Commerce Bank is a community bank with offices in Little Tokyo and West Los Angeles. It was founded by Downtown professionals and business owners. It is publicly traded on the OTC Bulletin Board under the stock symbol PFCI. The bank offers small business loans, asset-based loans, construction and permanent real estate financing, S.B.A. government guaranteed loans, as well as personal and professional credit lines. Information on the bank as well as a copy of the bank’s most recent newsletter and financial summary can be accessed through its website: “pacificcommercebank.com” or by calling between 9:00am and 5:00pm at 213-617-0082.
"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:
The financial information in this press release is based on our unaudited financial results. Certain statements in this press release, including statements regarding the anticipated development and expansion of the bank's business, and the intent, belief, and current expectations of the bank, its directors, or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements are subject to risks and uncertainties and therefore the bank's actual results may differ materially from those expressed or implied by such forward-looking statements. The risks and uncertainties that the bank is subject to include, but are not limited to, risks related to the local and national economy, including fluctuations in interest rates and costs and changes in economic policy; the ability of the bank to perform in accordance with its plans; competition; regulatory matters; and other risks detailed in its filings with the State of California Department of Financial Institutions and the Federal Deposit Insurance Corporation. The bank cautions readers not to place undue reliance on any forward-looking statements. The bank does not undertake, and specifically disclaims any obligation, to revise any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.
Financial Highlights | ||||||||||||||||
| BALANCE SHEET | ||||||||||||||||
| (In thousands, except for shares outstanding and book value per share) | 6/30/2008 | 6/30/2007 | $ Change | % Change | ||||||||||||
| Total Assets | $ | 161,912 | 124,393 | $ | 37,568 | 30.2 | % | |||||||||
| Total Investments | $ | 15,925 | $ | 13,224 | $ | 2,701 | 20.4 | % | ||||||||
| Total Loans | $ | 136,894 | $ | 101,260 | $ | 35,634 | 35.2 | % | ||||||||
| Deferred Loan Fees | ($283 | ) | ($244 | ) | ($39 | ) | 16.1 | % | ||||||||
| Allowance for Loan Losses | ($1,698 | ) | ($1,085 | ) | ($583 | ) | 53.7 | % | ||||||||
| Total Net Loans | $ | 134,913 | $ | 99,931 | $ | 35,012 | 35.0 | % | ||||||||
| Total Deposits | $ | 115,467 | $ | 97,514 | $ | 17,953 | 18.4 | % | ||||||||
| Total Borrowings | $ | 29,000 | $ | 10,002 | $ | 18,998 | 189.9 | % | ||||||||
| Total Stockholders' Equity | $ | 16,618 | $ | 16,072 | $ | 546 | 3.4 | % | ||||||||
| Non-performing assets | $ | 0 | $ | 0 | ||||||||||||
| Ytd Net Interest Margin | 3.83 | % | 4.18 | % | ||||||||||||
| Net Loan to Deposits | 116.8 | % | 102.5 | % | ||||||||||||
| Tangible equity ratio | 10.3 | % | 12.9 | % | ||||||||||||
| Ending shares outstanding | 2,440,255 | 2,437,220 | ||||||||||||||
| Ending book value per share | $ | 6.81 | $ | 6.59 | ||||||||||||
| STATEMENT OF OPERATIONS | For the Three Months | For the Nine Months Ended June 30, | ||||||||||||||
| (In thousands) | 2008 | 2007 | 2008 | 2007 | ||||||||||||
| Total interest income | $ | 2,362 | $ | 2,035 | $ | 4,759 | $ | 3,868 | ||||||||
| Total interest expense | 860 | 843 | 1,874 | 1,626 | ||||||||||||
| Net interest income | 1,502 | 1,192 | 2,885 | 2,242 | ||||||||||||
| Total non-interest income | 62 | 63 | 183 | 112 | ||||||||||||
| Total Income | 1,564 | 1,255 | 3,068 | 2,354 | ||||||||||||
| Total non-interest expense | 1,338 | 1,051 | 2,658 | 2,085 | ||||||||||||
| Income/(loss) before loan loss provision, stock options expense, and tax provisions/(benefits) | 226 | 204 | 410 | 269 | ||||||||||||
| Provision for loan losses | 157 | 149 | 299 | 257 | ||||||||||||
| Stock option expense | 35 | 45 | 70 | 91 | ||||||||||||
| Income tax expense/(benefit) | (90 | ) | (144 | ) | (269 | ) | (641 | ) | ||||||||
| Net Income | 124 | $ | 154 | $ | 310 | $ | 562 | |||||||||
Contacts:
Richard Koh, Chief Financial Officer,
213-617-0082
URL: http://www.pacificcommercebank.com
