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Pacific Commerce Bank Reports 2011 Second Quarter Financial Results

^{Published on 2011-07-29 03:21:12 - Market Wire}
 

LOS ANGELES--([ BUSINESS WIRE ])--Pacific Commerce Bank (OTCBB:PFCI) today reported financial results for the second quarter ended June 30, 2011.

For the second quarter of 2011, the net loss was $612,000, or ($0.18) per share, which included a loan loss provision of $1,603,000. This compares with net income of $284,000, or $0.12 per share, for the second quarter of 2010. For the six months ended Jun 30, 2011, net loss was $313,000 or ($0.09) per share. This compares with net income of $488,000 or $0.20 per share for the six months ended 2010.

Selected financial highlights for the second quarter of 2011 versus the second quarter of 2010:

• Total assets were $186.3 million at June 30, 2011, a decrease of $3.2 million
• Investment portfolio was $35 million, a decrease of $3.9 million
• Gross loans were $139.1 million, an increase of $4.9 million
• Allowance for loan losses increased by $2.3 million to $6.2 million
• Net charge-offs for the quarter were $999,000, mostly from unsecured lines to individuals
• Total deposits at the end of the quarter decreased by $3.1 million to $166.4 million
• Total shareholdersa™ equity was $19.1 million, a decrease of $173,000
• Non-accrual loans increased by $887,000 to $7.8 million year-over-year, but decreased by $574,000 from the first quarter of 2011
• Net interest margin was 3.67% vs. 3.63%, an increase of 0.04%
• Net interest margin for the six-month period of 2011 was 3.96% vs. 3.78% a year ago
• Average cost of funds was 0.52% for the 2011 second quarter vs. 0.73% for the 2010 second quarter
• Allowance for Loan Losses to Total Loans was 4.48% versus 2.92%, a year ago
• Allowance for Loan Losses to Nonaccrual Loans was 80% versus 57%, a year ago

The Banka™s June 30, 2011 capital ratios were as follows:

Tom Iino, Chairman of the Board said, aThrough these challenging times, the Bank has streamlined itself to ensure sound credit administration practices and underwriting standards. We have taken and will continue to take strong steps to reduce our level of problem assets. The Bank has also implemented a number of cost-cutting measures in order to reduce non-interest expenses andhas steadily reduced its funding costs. The Banka™s financial performance in the second quarter was negatively impacted due to the disposition of problem loans and the addition to the Banka™s loan loss reserve.a

About Pacific Commerce Bank

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 its clients. The bank offers small business loans, asset-based loans, construction and permanent real estate financing, SBA government-guaranteed loans, as well as personal and professional credit lines. Information about the bank can be obtained on its website: [ 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, including, but not limited to, achieving cost savings of approximately $300,000 on an annualized basis, 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.