LOS ANGELES--(BUSINESS WIRE)--Pacific Commerce Bank (PFCI) today announced the results of the bank’s first full quarter of operations since the close of its merger with Vibra Bank on April 7, 2015.
The bank’s unaudited financial results for the quarter ended June 30, 2015 reflect: total assets of $348.4 million, total loans of $297.3 million, including loans held for sale totaling $13.0 million, and total deposits of $274.2 million. This compares with total assets of $207.1 million, total loans of $171.4 million, with no loans held for sale and total deposits of $143.9 million as of June 30, 2014.
For the quarter ended June 30, 2015, the bank reported a net loss of $16,000, or $0.00 per diluted share before adjusting for nonrecurring, merger related expenses recorded during the quarter. Net of $711,000 in nonrecurring, merger related expenses the bank’s core after tax earnings for the quarter was $498,000, or $0.08 per diluted share. This compares to net income of $405,000, or $0.09 per diluted share for the second quarter of 2014 with no merger related expenses and fewer shares outstanding.
Earnings for the first half of 2015 totaled $518,000, or $0.08 per diluted share after nonrecurring merger related expenses of $1,139,000, compared to $1,296,000, or $0.29 per diluted share, with no merger related expenses during the first half of 2014. Earnings for the first half of 2014 were favorably impacted by a $1,500,000 reversal in loan loss provision compared to a $500,000 reversal in the first half of 2015.
Frank J. Mercardante, Chief Executive Officer of Pacific Commerce Bank since the close of the merger stated, “Response from clients after the close of the merger has been very positive. The additional branch locations, products and services and significantly higher lending limits have enabled us to better serve existing clients and reach new ones. Our sales teams are fired up and our pipeline of new loan and deposit prospects is growing."
The bank offers state-of-the-art deposit and loan services, including treasury management, remote deposit and full 24 hour online banking services. “We completed the systems integration during the last quarter and expect to have all merger related tasks completed in the third quarter,” added Mercardante.
Selected highlights as of June 30, 2015:
- Total assets were $348.4 million, compared to $207.1 million a year ago, an increase of 68.2% primarily as a result of the Vibra Bank acquisition.
- As a result of purchase accounting, the Bank recorded Goodwill of $2.2 million and a Core Deposit Intangible of $1.4 million, net of CDI amortization at June 30, 2015.
- Year-to-date net interest income was up 60%, to $5.5 million, from $3.4 million for the same period in 2014, primarily due to increase in loans of $125.8 million, or 73.4% in 2015.
- Net interest margin in Q2 2015 increased to 4.31%, from 3.76% in the same period 2014, primarily due to increased loan volume.
- Average cost of funds in Q2 2015 was 0.26% versus 0.25% for Q2 2014.
- Non-interest income increased 44%, to $696,000, from $484,000 for the six-month period ended June 2015, due to higher service fee income and an increase in gains on the sale of SBA loans.
- Non-interest expenses, excluding merger related expenses, increased 22%. The Bank recorded $711,000 in non-recurring, merger related expenses during the second quarter of 2015 and a total of $1,139,000 year-to-date.
- Allowance for Loan Losses to Total Loans, excluding loans held for sale, was 1.04%, versus 2.12% a year ago, as a result of a $500,000 reversal in loan loss provision in Q1 2015 and $115.6 million in loan balance growth year-over-year, net of loans held for sale. In addition, loans held for sale totaling $13.0 million are held at a discount of 2.00% to the face value of the note.
- Net recovery, from previously charged-off loans, was $73,000 for Q2 2015 versus $74,000 for the like quarter in 2014.
The bank remained “Well-Capitalized” by regulatory definition with
capital ratios, as of June 30, 2015, as follows:
Tier 1 Leverage Ratio: 10.01%
Common Equity Tier 1 Capital Ratio: 11.19%
Tier 1 Capital Ratio: 11.19%
Total Capital Ratio: 12.21%
About Pacific Commerce Bank
Pacific Commerce Bank provides complete deposit and loan banking solutions to small businesses, professionals and high net worth individuals from Los Angeles to the Mexican border. The Bank is a Preferred SBA Lender and operates offices in Downtown Los Angeles, West Los Angeles, San Diego and Chula Vista. Pacific Commerce Bank stock is publicly traded on the Over the Counter Other Markets under the ticker symbol “PFCI”. For more information please visit our website at www.pacificcommercebank.com.
Forward Looking Information
The financial information in this press release is based on unaudited financial results. Certain statements in this press release 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; demand for loan products; deposit flows; its ability to develop and implement new technologies; and other factors. 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.
Pacific Commerce Bank
Selected Financial Data – Unaudited
(Amounts are in thousands, except for book value per share and shares outstanding data)
|BALANCE SHEET||6/30/2015||6/30/2014||% Change|
|Cash and due from banks||$||7,371||$||3,537||108.4||%|
|Federal funds sold||29,548||22,190||33.2||%|
|Loans held for sale||12,987||2,788||365.8||%|
|Loans, net of unearned income||284,281||168,649||68.6||%|
|Less: Allowance for loan losses||(2,952||)||(3,580||)||-17.5||%|
|Other real estate owned||-||542||-100.0||%|
|Accrued interest and other liabilities||1,452||1,276||13.8||%|
|Other comprehensive income||8||3||166.7||%|
|Total Shareholders' Equity||37,778||27,683||36.5||%|
|Total Liabilities & Shareholders' Equity||$||348,385||$||207,124||109.6||%|
|Book value per share at end of period||$||5.80||$||6.21|
(Amounts are in thousands, except for earnings per share data)
For the Three Months
Ended June 30,
For the Six Months
Ended June 30,
|STATEMENT OF OPERATIONS||2015||2014||
|Total interest income||$||3,630||$||1,893||92||%||$||5,824||$||3,646||60||%|
|Total interest expense||205||108||90||%||332||212||57||%|
|Net interest income||3,425||1,785||92||%||5,492||3,434||60||%|
|Provision for loan losses||-||-||-||(500||)||(1,500||)||-67||%|
|Non-interest expense (non-merger related)||3,064||1,960||91||%||4,596||3,775||22||%|
|Income before merger related expenses and income taxes||846||165||413||%||2,092||1,643||-27||%|
|Non-recurring merger related expenses||711||-||-||1,139||-||-|
|Income Tax Expense/(Benefit)||151||(240||)||-163||%||435||347||25||%|
|Earnings per share||$||(0.00||)||$||0.09||$||0.08||$||0.29|