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Pacific Commerce Bank Announces Third Quarter 2010 Results with Steady Credit Improvement

^{Published on 2010-10-26 03:20:20 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Pacific Commerce Bank (OTCBB:PFCI), today announced its unaudited results of operations for the third quarter-ended September 30, 2010. The Bank reported a net loss of $61 thousand for the third quarter compared to net income of $22 thousand in the third quarter of 2009. Year-to-date, the Banka™s net income is $427 thousand, compared to a 2009 year-to-date net income of $194 thousand. On an aoperating profita basis (excluding provisions for loan losses, stock option expense and taxes), the Banka™s year-to-date operating profit was $1.62 million, versus a 2009 year-to-date operating income of $1.28 million.

"We are generally pleased with the year-to-date results for the bank, which reflect a profit of $427,000 despite having funded $1,000,000 in additional loan loss reserves. We believe the bank is well reserved at this stage as we continue to make steady progress in addressing and reducing our problem loans."

Selected financials for the third quarter of 2010 versus the third quarter of 2009:

• Total assets reduced by $11 million, or 6%, to $182.1 million;
• Investment portfolio increased by $2 million, or 7.5%, to $32.2 million;
• Gross loans reduced by $7.2 million, or 5%, to $141.6 million;
• Allowance for Loan Losses increased by $700 thousand, or 21%, to $3.96 million, net of charge-offs and recoveries;
• Total deposits reduced by $9.5 million, or 6%, to $158.7 million;
• Non-performing loans reduced by $1 million, or 15%, to $6.2 million year-over-year; and
• Year-to-date average cost of funds was 0.71%.

Selected other financial highlights as of September 30, 2010:

• Liquidity, defined as cash, due from banks and investment securities, was $39 million;
• Allowance for Loan Losses to Total Loans was 2.80% versus 2.19%, a year ago;
• aCorea deposits account for 66% of total deposits;
• Loans funded during the third quarter were $7.4 million.

The Bank has always been awell capitalized,a with September 30, 2010 capital ratios of:

Brian H. Kelley, President and Chief Executive Officer, commented, aWe are generally pleased with the year-to-date results for the bank, which reflect a profit of $427,000 despite having funded $1,000,000 in additional loan loss reserves. We believe the bank is well reserved at this stage as we continue to make steady progress in addressing and reducing our problem loans.a He further indicated, aWith our core earnings (before reserves) up almost 27% over 2009, we are obviously having a good year from a revenue standpoint, largely by improving our operating margins and driving non-interest income from sources such as SBA loans sales.a He concluded, aWe believe the bank is well positioned to grow in 2011 and seize opportunities as they come our way.a

Established in 2002, Pacific Commerce Bank is a community bank with offices in Downtown Los Angeles and West Los Angeles. Founded by local business owners and professionals, it is focused on meeting the diverse needs of those clients. It is publicly traded on the OTC Bulletin Board under the stock symbol PFCI. The bank offers small business loans, asset-based loans, permanent real estate financing, SBA government-guaranteed loans, as well as personal and professional credit lines. Information on the bank as well as a copy of the banka™s most recent newsletter and financial summary can be accessed through its website: apacificcommercebank.coma or by calling between 9:00am and 5:00pm at 213-617-0082.

"Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995:

The financial information in this press release is based on our unaudited financial results. Certain statements in this press release, including statements regarding the anticipated development and expansion of the bank's business, and the intent, belief, and current expectations of the bank, its directors, or its officers, 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; and other risks detailed in its filings with the State of California Department of Financial Institutions and the Federal Deposit Insurance Corporation. 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.