BELLEVUE, Wash.--(BUSINESS WIRE)--Puget Sound Bank (OTCQB:PUGB) reported net income for the second quarter of 2015 of $961,775 or $.28 per share, a 44% increase as compared to $668,798 or $.22 per share for the second quarter of 2014.
“This sustained growth results from Puget Sound Bank’s continued focus on our original model of serving small- to medium-size businesses with outstanding service from preeminent bankers,” said Jim Mitchell, Puget Sound Bank president and chief executive officer. “As we celebrate our 10-year anniversary we are continually thankful to our customers who have grown with us and expanded their relationships, and to those who continue to refer new business to us.”
Puget Sound Bank’s loan portfolio grew 10% to $331.3 million at quarter-end as compared to $300.7 million in the year-earlier quarter, with business-related loans accounting for approximately 63% of the Bank’s portfolio. This places the Bank in the top 10% of all commercial banks in Washington state as a percentage of total loans.
Nonperforming assets were only 0.21% of total assets, the same as the year-earlier period. This represents a Texas ratio of 1.6%, one of the best in Washington state. “We’re pleased that this growth has been achieved while still maintaining our commitment to conservative underwriting standards within our loan portfolio,” said Tony Chalfant, Puget Sound Bank executive vice president and chief credit officer.
Total deposits at quarter-end increased 21% to $369.0 million as compared to $305.6 million a year earlier. Puget Sound Bank continues to see deposit growth from its continued focus in the nonprofit sector, building on its distinction of being recognized by the Puget Sound Business Journal as a top Washington state corporate philanthropist for the last two years.
Second Quarter 2015 Highlights:
- Total assets grew 19% to $425.1 million as compared to $357.3 million a year ago.
- Noninterest demand deposits increased 32% to $173.9 million as compared to $132.1 million a year earlier, or 47% of total deposits.
- Total loans grew 10% to $331.3 million and total deposits grew 21% to $369.0 million as compared to a year ago.
- Net interest margin was 4.05% for the quarter as compared to 4.19% one year ago.
- Tangible book value per share increased to $12.51 from $11.54 a year earlier.
- Return on assets increased to 0.96% from 0.78% a year ago.
- Return on equity increased to 9.05% from 7.54% a year ago.
- Nonperforming assets to total assets were 0.21%, the same as the year-earlier period.
- Allowance for loan losses and the fair value discount on the acquired loan portfolio, together were 1.26% of loans.
- The efficiency ratio (noninterest expense divided by revenue) was 63.7% for the quarter, an improvement from 64.1% reported in the year-earlier quarter.
- Capital ratios continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements.
- For the 19th consecutive quarter, Puget Sound Bank was awarded a 5-star rating, the highest available from independent banking rating agency BauerFinancial.
- Puget Sound Bank has been selected as a finalist in Puget Sound Business Journal’s 2015 Best Workplaces program, the second time the Bank has received this distinction.
- Jim Mitchell, Puget Sound Bank president and chief executive officer, was elected chairman of the board of the Washington Bankers Association, Washington state’s oldest and largest financial services trade association with members representing 95% of all commercial bank deposits in the state.
Common stock for Puget Sound Bank trades on the OTCQB® electronic marketplace under the symbol PUGB.
About Puget Sound Bank
Puget Sound Bank is one of Washington state’s top commercial banks (as measured by commercial and industrial loans as a percentage of total loans) proudly serving the greater Puget Sound region. Based in Bellevue, Washington, the bank was founded to meet the specialized needs of small- and medium-sized businesses, select commercial real estate projects, professional service providers and high net worth individuals. Puget Sound Bank offers a full range of competitive financial products including an advanced suite of cash management services. Customers can access their accounts in-branch, online, on their mobile devices or through Puget Sound Bank's ATM network throughout the continental United States. For more information visit www.PugetSoundBank.com or call (425) 455-2400.
Puget Sound Bank is consistently rated one of the country’s safest and strongest banks by independent analysts and celebrates its 10-year anniversary this year.
To access investor relations information for Puget Sound Bank, visit www.PugetSoundBank.com/IR or call (425) 467-2037.
Forward-Looking Statement Safe Harbor: 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. Forward-looking statements describe Puget Sound Bank’s projections, estimates, plans and expectations of future results and can be identified by words such as “believe,” “intend,” “estimate,” “likely,” “anticipate,” “expect,” “looking forward,” and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve’s actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Puget Sound Bank undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.
| Puget Sound Bank | |||||||||||||
| Second Quarter 2015 | |||||||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||
| (Unaudited) | |||||||||||||
| Quarterly | |||||||||||||
| 2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
| ($ in thousands except per share data) | 2nd Qtr | 1st Qtr | 2nd Qtr | YTD | YTD | ||||||||
| EARNINGS | |||||||||||||
| Net interest income | $ | 3,830 | 3,729 | 3,435 | 7,559 | 6,696 | |||||||
| Provision for loan losses | $ | 0 | 29 | 283 | 29 | 283 | |||||||
| Net interest income after provision for loan losses | $ | 3,830 | 3,700 | 3,152 | 7,530 | 6,413 | |||||||
| NonInterest income | $ | 156 | 182 | 145 | 338 | 313 | |||||||
| NonInterest expense | $ | 2,540 | 2,408 | 2,294 | 4,949 | 4,596 | |||||||
| Pre-tax Net income | $ | 1,446 | 1,473 | 1,003 | 2,919 | 2,130 | |||||||
| Provision for income taxes (benefit) | $ | 484 | 493 | 334 | 978 | 708 | |||||||
| Net income | $ | 962 | 979 | 669 | 1,941 | 1,421 | |||||||
| Preferred dividends | $ | 25 | 25 | 25 | 49 | 49 | |||||||
| Net income available to common shareholders | $ | 937 | 954 | 644 | 1,892 | 1,372 | |||||||
| 1Earnings per share | $ | 0.28 | 0.31 | 0.22 | 0.59 | 0.46 | |||||||
| Average shares outstanding | 3,322 | 3,060 | 2,959 | 3,192 | 2,953 | ||||||||
| Total revenue | $ | 3,986 | 3,911 | 3,580 | 7,897 | 7,009 | |||||||
| PERFORMANCE RATIOS | |||||||||||||
| Return on average assets | 0.96% | 1.01% | 0.78% | 0.98% | 0.84% | ||||||||
| 1Return on average tangible common equity | 9.05% | 10.07% | 7.54% | 9.53% | 8.12% | ||||||||
| Net interest margin | 4.05% | 4.13% | 4.19% | 4.09% | 4.18% | ||||||||
| Efficiency ratio | 63.7% | 61.6% | 64.1% | 62.7% | 65.6% | ||||||||
| CAPITAL | |||||||||||||
| Common equity tier 1 ratio | 11.43% | NA | |||||||||||
| Tier 1 leverage ratio | 12.95% | 12.90% | |||||||||||
| Tier 1 risk-based capital ratio | 14.25% | 13.68% | |||||||||||
| Total risked based capital ratio | 15.44% | 14.93% | |||||||||||
| Tangible Common Equity Ratio | 9.85% | 10.20% | 9.66% | ||||||||||
| ASSET QUALITY | |||||||||||||
| Net loan charge-offs (recoveries) | $ | (43) | 86 | 0 | |||||||||
| Allowance for loan losses | $ | 3,999 | 3,956 | 3,821 | |||||||||
| Allowance for losses to total loans | 1.21% | 1.24% | 1.27% | ||||||||||
| Nonperforming loans | $ | 876 | 2,724 | 738 | |||||||||
| Other real estate owned | $ | 0 | 0 | 0 | |||||||||
| Nonperforming assets to total assets | 0.21% | 0.69% | 0.21% | ||||||||||
| Puget Sound Bank | |||||||||
| Second Quarter 2015 | |||||||||
| CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||
| (Unaudited) | |||||||||
| Quarterly | |||||||||
| 2015 | 2015 | 2014 | |||||||
| ($ in thousands except per share data) | 2nd Qtr | 1st Qtr | 2nd Qtr | ||||||
| BALANCE SHEET | |||||||||
| Cash and Due From Banks | $ | 18,928 | 19,019 | 11,110 | |||||
| Investments | $ | 70,494 | 53,422 | 40,877 | |||||
| Commercial and Industrial Loans | $ | 136,220 | 133,488 | 129,732 | |||||
| Owner-Occupied Commercial Real Estate | $ | 73,764 | 63,217 | 61,219 | |||||
| Other Commercial Real Estate | $ | 87,407 | 91,264 | 82,137 | |||||
| Personal Loans | $ | 33,751 | 28,551 | 27,801 | |||||
| Non-accrual Loans | $ | 876 | 2,724 | 738 | |||||
| Acquired Loan Fair Value Adjustment | $ | (169) | (180) | (267) | |||||
| Deferred Loan Fees | $ | (550) | (492) | (616) | |||||
| Total Loans | $ | 331,299 | 318,571 | 300,745 | |||||
| Allowance for Loan Losses | $ | (3,999) | (3,956) | (3,821) | |||||
| Net Loans | $ | 327,300 | 314,615 | 296,923 | |||||
| Goodwill/Core Deposit Intangible | $ | 2,137 | 2,146 | 2,175 | |||||
| Other Assets | $ | 6,285 | 6,259 | 6,177 | |||||
| Total Assets | $ | 425,143 | 395,461 | 357,262 | |||||
| Non-interest bearing Demand | $ | 173,850 | 153,551 | 132,086 | |||||
| Interest Bearing Demand | $ | 32,128 | 28,071 | 24,296 | |||||
| Money Market and Savings | $ | 134,768 | 133,733 | 115,507 | |||||
| Certificates of Deposit | $ | 28,241 | 26,261 | 33,758 | |||||
| Total Deposits | $ | 368,987 | 341,616 | 305,647 | |||||
| Borrowings | $ | - | - | 3,415 | |||||
| Other Liabilities | $ | 2,477 | 1,690 | 1,959 | |||||
| Total Equity | $ | 53,679 | 52,155 | 46,241 | |||||
| Total Liabilities and Equity | $ | 425,143 | 395,461 | 357,262 | |||||
| Tangible Shareholders' equity | $ | 41,656 | 40,123 | 34,306 | |||||
| Tangible book value per share | $ | 12.51 | 12.33 | 11.54 | |||||
| Book value per share | $ | 13.16 | 12.99 | 12.28 | |||||
| 1Includes preferred stock dividends not included in net income. | |||||||||