LOS ANGELES--(BUSINESS WIRE)--Manufacturers Bank (the Bank) is a Los Angeles based commercial bank with total assets of $3.93 billion as of December 31, 2020. The Bank is a wholly-owned subsidiary of SMBC Americas Holdings, Inc. (SMBCAH), a United States (U.S.) bank holding company, which in turn is a wholly-owned subsidiary of Sumitomo Mitsui Banking Corporation (SMBC).
The Bank reported net income for the year ended December 31, 2020 of $20.2 million, a decrease of $9.9 million, or 32.75%, compared to $30.1 million for the same period in 2019 as the Bank’s asset sensitive balance sheet was significantly impacted by the Federal Open Market Committee 1.50% rate decrease in March 2020.
Despite the economic upheaval driven by the COVID-19 pandemic, credit quality remained sound throughout 2020. Credit quality is reflected in the percentage of non-accrual loans to total loans at 0.11% as of December 31, 2020. The allowance for credit loss ratio remains satisfactory at 1.71% as of December 31, 2020.
Capital remained strong as evidenced by Tier 1, and Total risk-based capital ratios of 11.71% and 12.91%, respectively; both ratios exceeding the minimum requirement of a well-capitalized institution of 8.00% and 10.00%, respectively.
Message from Naresh Sheth, President
Naresh Sheth, President, commented, “It is with great pleasure that I welcome to the Bank our new Chairman & Chief Executive Officer, Mr. Kazuhisa Miyagawa. He began his career in 1988 and has held leadership positions in Japan, Korea and Indonesia. His most recent assignment was as Deputy CEO of PT Bank BTPN Tbk. Indonesia. Mr. Miyagawa’s wealth of experience will continue to strengthen the Bank and we look forward to a successful partnership. We wish Mr. Kusakabe well in his new assignment and we extend our appreciation for his leadership over the past three years.
“Manufacturers Bank was proud to participate in the government sponsored Paycheck Protection Program (PPP) which assisted many of our customers in keeping their businesses operational. We continue to assist them with the Small Business Administration (SBA) debt forgiveness process allowed under the PPP and are participating in the second phase of the program. Being a flexible partner to aid our business customers during these unprecedented times has made us all more resilient.
“As we turn the page to our 59th year, we hope to put this pandemic behind us and look forward to an economic environment that helps all of us reach our goals and achieve success. Thank you for the mutual trust and respect we have for each other and putting your trust in our services. We wish to serve and assist you again in this new year. Please stay healthy and be safe.”
Manufacturers Bank has been operating mainly in Southern California, consistently delivering tailored financial solutions that enhance the economic well-being of its middle market customers. Bauer Financial Inc., an independent bank rating company, has awarded a depository rating, Excellent 5 Star, to Manufacturers Bank.
Manufacturers Bank is headquartered in Los Angeles and operates from branch offices in Beverly Hills, Brea, Encino, Glendale, Little Tokyo, Newport Beach, San Jose, Torrance and Warner Center.
Member FDIC and SBA Preferred National Lender
Equal Opportunity Lender
Equal Housing Lender
All statements in this release, except for historical facts, should be considered forward looking, including statements about the Bank’s plans, goals, and future expectations for growth. Such statements are subject to changes in the economic, legal and regulatory environment, changes in product delivery and technology that may affect the Bank’s operations and continued evolution in the financial services industry.
For additional information please contact: Cindy Rude, SVP, Marketing & Product Development Manager, 213-489-6353 or Karen Abajian, EVP, Chief Financial Officer, 213-489-6478.