BELLEVUE, Wash.--(BUSINESS WIRE)--Puget Sound Bank (OTCQB:PUGB) today reported net income of $979,470 or $0.31 per share for the quarter ending March 31, 2015, an increase of 30% as compared to $752,521 or $0.25 per share for the year earlier period.
For the second consecutive quarter, Puget Sound Bank achieved a return on equity above 10% and return on assets above 1% – primary industry ratios used to measure high-performing banks.
“We continue to grow earnings as we build our loan portfolio, prudently balancing risk and return,” said Jim Mitchell, Puget Sound Bank president and chief executive officer. “At the same time, we are expanding our service team and supporting technology to ensure the customer experience is the best in the marketplace, and we are always seeking new efficiencies to lower operating costs.”
Total loans at the end of the first quarter increased 15% to $318.6 million as compared to $277.8 million a year earlier. Puget Sound Bank’s business-related loans account for approximately 62% of the Bank’s portfolio, placing the Bank near the top of all commercial banks in Washington state for these loans as a percentage of total loans.
Total deposits at quarter-end increased 29% to $341.6 million as compared to $264.1 million a year earlier. With 45% of total deposits in noninterest bearing accounts, the Bank has been able to maintain a net-interest margin of 4.13%, one of the highest among commercial banks in Washington state.
“While this growth illustrates Puget Sound Bank’s commitment to small- and middle-market companies, their owners and nonprofit organizations, it doesn’t tell the whole story of how we achieve these results,” said Sean Brennan, executive vice president and chief lending officer. “And that recognition goes to our clients who entrust us with their banking requirements and referrals, and to our dedicated staff who have defined new service levels in this marketplace ensuring exceptional client retention.”
2015 First Quarter Highlights
- Total assets grew 17% to $395.5 million as compared to $339.0 million a year ago.
- Noninterest demand deposits increased 41% to $153.6 million as compared to $108.8 million a year earlier, or 45% of total deposits (up from 41% a year ago).
- Total loans grew 15% to $318.6 million and total deposits grew 29% to $341.6 million as compared to a year ago.
- Net interest margin was 4.13% for the quarter, down slightly from 4.17% one year ago.
- Tangible book value per share increased to $12.33 from $11.27 a year earlier.
- Return on equity increased to 10.07% from 8.72% a year ago.
- Return on assets increased to 1.01% from 0.90% a year ago.
- Nonperforming assets to total assets increased to 0.69%, up from 0.22% in the year-earlier period.
- Allowance for loan losses and the fair value discount on the acquired loan portfolio, together were 1.30% of loans.
- The efficiency ratio improved to 61.6% for the quarter compared to 67.1% 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 18th consecutive quarter, Puget Sound Bank was awarded a 5-star rating, the highest available from independent banking rating agency BauerFinancial.
“As we begin to celebrate our 10-year anniversary, the board and I are very proud of our accomplishments,” said Mr. Mitchell, “and our sincere thanks go out to our employees, customers and partners who have made our success possible.”
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 smartphones 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 month.
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
First Quarter 2015
CONSOLIDATED STATEMENT OF OPERATIONS
|($ in thousands except per share data)||
|Net interest income||$||3,729||3,752||3,261|
|Provision for loan losses||$||29||99||0|
|Net interest income after provision for loan losses||$||3,700||3,653||3,261|
|Pre-tax Net income||$||1,473||1,299||1,127|
|Provision for income taxes (benefit)||$||493||347||374|
|Net income available to common shareholders||$||954||927||728|
Earnings per share1
|Average shares outstanding||3,060||2,972||2,948|
|Return on average assets||1.01%||1.01%||0.90%|
Return on average tangible common equity1
|Net interest margin||4.13%||4.17%||4.17%|
|Tier 1 leverage ratio||12.36%||13.13%|
|Tier 1 risk-based capital ratio||13.68%||14.12%|
|Total risked based capital ratio||14.93%||15.34%|
|Tangible Common Equity Ratio||10.20%||9.44%||9.88%|
|Net loan charge-offs (recoveries)||$||86||0||0|
|Allowance for loan losses||$||3,956||4,013||3,538|
|Allowance for losses to total loans||1.24%||1.27%||1.27%|
|Other real estate owned||$||0||0||0|
|Nonperforming assets to total assets||0.69%||0.15%||0.22%|
1Includes preferred stock dividends not included in net income.
Puget Sound Bank
First Quarter 2015
CONSOLIDATED FINANCIAL HIGHLIGHTS
|($ in thousands except per share data)||
|Cash and Due From Banks||$||19,019||18,138||13,966|
|Commercial and Industrial Loans||$||133,488||132,734||124,867|
|Owner-Occupied Commercial Real Estate||$||63,217||61,221||54,013|
|Other Commercial Real Estate||$||91,264||90,283||71,521|
|Acquired Loan Fair Value Adjustment||$||(180)||(193)||(309)|
|Deferred Loan Fees||$||(492)||(507)||(515)|
|Allowance for Loan Losses||$||(3,956)||(4,013)||(3,538)|
|Goodwill/Core Deposit Intangible||$||2,146||2,155||2,185|
|Non-interest bearing Demand||$||153,551||177,441||108,766|
|Interest Bearing Demand||$||28,071||23,972||22,478|
|Money Market and Savings||$||133,733||108,327||98,080|
|Certificates of Deposit||$||26,261||26,852||34,742|
|Total Liabilities and Equity||$||395,461||387,729||338,958|
|Tangible Shareholders' equity||$||40,123||36,407||33,257|
|Tangible book value per share||$||12.33||12.17||11.27|
|Book value per share||$||12.99||12.89||12.01|