Business & Finance
Business and Finance
Business and Finance 
Wed, February 25, 2009
Tue, February 24, 2009
Pacific Commerce Bank Reports to Treasury on Use of TARP Funds
LOS ANGELES--([ BUSINESS WIRE ])--Pacific Commerce Bank (OTCBB:[ PFCI ]) today confirmed that it has issued a report to the U.S. Treasury detailing its initial use of $4 million in TARP funds which were received by Pacific Commerce Bank on December 23, 2008. After committing to accept the TARP preferred investment this past October, the bank substantially increased its 4th Quarter 2008 lending goals, closing approximately $11.5 million in new loans (an increase of 300% over the preceding quarter), and approving, in the month of December alone, close to $6.2 million in new loans.
"As a practical matter, we cannot tell you whether the next loan we make will be funded by the $4 million in TARP preferred stock, the approximately $16 million of common equity we hold or the approximately $167 million in other obligations that make up our balance sheet," stated Brian H. Kelley, the bank's President and CEO. "However, there is no question that we are lending significantly more with the TARP preferred stock investment than we would be without it. At 12/31/08, our capital ratios were strong and well in excess of regulatory requirements, with Total Risk-based Capital and Tangible Equity to Total Assets of 13.39% and 10.30%, respectively," indicated Mr. Kelley.
Mr. Kelley emphasized that no TARP funds were used to pay compensation, bonuses or any other benefits to our management or staff. "It is clear to us that the Treasury intends its TARP investment to bolster the balance sheet of participating banks and allow those banks to expand their lending portfolios. To that end, we have budgeted to grow our loans by another $14 million in 2009," Mr. Kelley stated.
"We are a community bank based in Los Angeles, California. Founded in 2002, the bank has nearly $190 million in assets and focuses on small business lending. In many respects, we are at ground zero of the economy, supporting new start-up enterprises (through our business lending and S.B.A. products) and meeting the needs of our many small business clients. Like many other fast growing community banks, we must raise new capital every two years or so in order to maintain conservative capital levels and meet the demands of our growing base of business. With the literal seizing-up of the capital markets over the past year, the TARP program has played a key role in allowing the bank to continue its growth," Mr. Kelley concluded.
Established in 2002, Pacific Commerce Bank has offices in Downtown Los Angeles 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, 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.