PUGET SOU 
By BELLEVUE, Wash., Jan. 15, 2014 /PRNewswire/ -- Puget Sound Bank (OTCQB: PUGB) today reported net income of $2.2 million or $.77 per share for the year ending December 31, 2013, which compares to $1.9 million or $.78 per share for the year earlier period. Net income for the current quarter was $553,366 or $0.18 per share as compared to $359,516 or $0.14 per share for the year-earlier quarter. Without one-time costs resulting from Puget Sound Bank's acquisition of Core Business Bank completed in June 2013, net income for 2013 would have been $2.7 million or $0.96 per share.
"2013 was truly remarkable for Puget Sound Bank," said Jim Mitchell, Puget Sound Bank chief executive officer and president. "We successfully completed our acquisition of Core Business Bank, ended the year with 0.22% of nonperforming assets to total assets (less than $1 million) and grew assets 26% to $339.3 million."
"From day one we have focused on becoming one of the state's leading C&I (commercial and industrial) banks," said Mr. Mitchell, "and quarter-by-quarter, year-by-year our performance has continually confirmed our business model."
Total loans, including loans acquired from Core Business Bank and new organic loan growth, increased 28% to $275.4 million as compared to $215.2 million a year earlier. The percentage of Puget Sound Bank's C&I loans (including loans acquired from Core Business Bank and owner-occupied real estate) accounts for approximately 66% of the Bank's portfolio. This places the Bank in the top 15% of all commercial banks in Washington state for C&I loans as a percentage of total loans.
2013 Highlights
-- Total assets grew 26% to $339.3 million as compared to $268.4 million a
year ago.
-- Noninterest demand deposits increased 40% to $122.1 million, or 44% of
total deposits compared to 38% a year ago.
-- Total loans grew 28% to $275.4 million and total deposits grew 22% to
$280.8 million compared to a year ago.
-- Net interest margin increased to 4.24% for the year, up from 4.18% one
year ago.
-- Tangible book value per share increased to $11.18 from $10.99 a year
earlier.
-- Return on equity decreased to 6.98% from 7.37% a year ago due to
expenses related to the acquisition. Return on equity would have been
8.66% without acquisition costs.
-- Return on assets decreased to 0.73% from 0.77% a year ago due to
expenses related to the acquisition. Return on assets would have been
0.89% without acquisition costs.
-- Nonperforming assets to total assets decreased to 0.22%, down from 0.85%
in the year-earlier period.
-- Allowance for loan losses and the fair value discount on the acquired
loan portfolio, together were 1.42% of loans.
-- The efficiency ratio increased to 69.9% for the year compared to 63.5%
in the year earlier. Without acquisition costs the efficiency ratio
would have been 63.8%.
-- Capital ratios continue to exceed regulatory requirements, with total
risk-based capital substantially above well-capitalized regulatory
requirements.
-- For the 13(th) consecutive quarter, Puget Sound Bank was awarded a
5-star rating, the highest available from independent banking rating
agency BauerFinancial.
"We expect 2014 to be another year of exceptional growth," said Mr. Mitchell, "with particular attention to growing loans and increasing earnings under our demonstrated strategy."
About Puget Sound Bank
Puget Sound Bank proudly serves the greater Puget Sound region of Washington state. Based in Bellevue, Washington, the bank was founded to meet the specialized needs of small- and medium-sized businesses, select commercial real estate projects, professional service providers and high net worth individuals. Puget Sound Bank offers a full range of competitive financial products including an advanced suite of cash management services. Customers can access their accounts in-branch, online or through Puget Sound Bank's banking relationships offering branch and ATM deposit access throughout the continental United States. For more information visit www.PugetSoundBank.com or call (425) 455-2400.
Puget Sound Bank trades on the OTCQB(®) electronic marketplace under the symbol PUGB. To access investor relations information for Puget Sound Bank, visit www.PugetSoundBank.com/IR or call (425) 467-2037.
Forward-Looking Statement Safe Harbor: This news release contains comments or information that constitutes forward-looking statements (within the meaning of the Private Securities Litigation Reform Act of 1995) that are based on current expectations that involve a number of risks and uncertainties. Forward-looking statements describe Puget Sound Bank's projections, estimates, plans and expectations of future results and can be identified by words such as "believe," "intend," "estimate," "likely," "anticipate," "expect," and other similar expressions. They are not guarantees of future performance. Actual results may differ materially from the results expressed in these forward-looking statements, which because of their forward-looking nature, are difficult to predict. Investors should not place undue reliance on any forward-looking statement, and should consider factors that might cause differences including but not limited to the degree of competition by traditional and nontraditional competitors, declines in real estate markets, an increase in unemployment or sustained high levels of unemployment; changes in interest rates; greater than expected costs to integrate acquisitions, adverse changes in local, national and international economies; changes in the Federal Reserve's actions that affect monetary and fiscal policies; changes in legislative or regulatory actions or reform, including without limitation, the Dodd-Frank Wall Street Reform and Consumer Protection Act; demand for products and services; changes to the quality of the loan portfolio and our ability to succeed in our problem-asset resolution efforts; the impact of technological advances; changes in tax laws; and other risk factors. Puget Sound Bank undertakes no obligation to publicly update or clarify any forward-looking statement to reflect the impact of events or circumstances that may arise after the date of this release.
Puget
Sound
Bank
Fourth
Quarter
2013
CONSOLIDATED STATEMENT
OF OPERATIONS
(Unaudited)
Quarterly
---------
2013 2013 2012 2013 2012
($ in
thousands
except
per
share
data) 4th Qtr 3rd Qtr 4th Qtr YTD YTD
------- ------- ------- --- ---
EARNINGS
Net
interest
income $3,324 3,322 2,624 12,068 10,133
Provision
for
loan
losses $264 63 549 441 993
--- ---
Net
interest
income
after
provision
for
loan
losses 3,060 3,259 2,074 11,627 9,140
NonInterest
income $153 211 195 641 517
NonInterest
expense $2,348 2,456 1,733 8,885 6,766
----- -----
Pre-
tax
Net
income $865 1,014 536 3,382 2,891
Provision
for
income
taxes
(benefit) $311 412 177 1,217 958
--- ---
Net
income $553 602 360 2,164 1,933
Preferred
dividends $25 25 25 99 99
--- ---
Net
income
available
to
common
shareholders $528 577 335 2,066 1,834
(1)Earnings
per
share $0.18 0.20 0.14 0.77 0.78
Average
shares
outstanding 2,921 2,920 2,350 2,674 2,348
Total
revenue $3,477 3,533 2,818 12,708 10,649
PERFORMANCE
RATIOS
Return
on
average
assets 0.68% 0.74% 0.55% 0.73% 0.77%
(1)Return
on
average
tangible
common
equity 6.49% 7.23% 5.23% 6.98% 7.37%
Net
interest
margin 4.24% 4.31% 4.11% 4.24% 4.18%
Efficiency
ratio 67.5% 69.5% 61.5% 69.9% 63.5%
CAPITAL
Tier 1
leverage
ratio 12.98% 13.56%
Tier 1
risk-
based
capital
ratio 14.84% 14.66%
Total
risked
based
capital
ratio 16.03% 15.91%
Tangible
Common
Equity
Ratio 9.73% 9.92% 9.68%
ASSET
QUALITY
Net
loan
charge-
offs
(recoveries) $(126) 0 330
Allowance
for
loan
losses $3,538 3,148 3,241
Allowance
for
losses
to
total
loans 1.29% 1.24% 1.51%
Nonperforming
loans $738 1,145 2,286
Other
real
estate
owned $0 0 0
Nonperforming
assets
to
total
assets 0.22% 0.35% 0.85%
Puget Sound Bank
Fourth Quarter 2013
CONSOLIDATED FINANCIAL
HIGHLIGHTS
(Unaudited)
Quarterly
---------
2013 2013 2012
($ in thousands except
per share data) 4th Qtr 3rd Qtr 4th Qtr
------- ------- -------
BALANCE SHEET
Cash and Due From Banks $16,627 15,430 8,903
Investments $42,713 49,258 42,673
Commercial and
Industrial Loans $126,764 123,389 101,666
Owner-Occupied
Commercial Real Estate $54,377 45,100 40,666
Other Commercial Real
Estate $71,509 66,571 55,392
Personal Loans $22,422 19,440 15,216
Non-accrual Loans $738 1,145 2,286
Acquired Loan Fair
Value Adjustment $(378) (482) -
Deferred Loan Fees $(522) (486) (361)
-----
Total Loans $274,910 254,677 214,865
Allowance for Loan
Losses $(3,538) (3,148) (3,241)
------
Net Loans $271,372 251,529 211,625
Goodwill/Core Deposit
Intangible $2,196 2,206 -
Other Assets $6,355 6,388 5,188
-----
Total Assets $339,263 324,811 268,389
Non-interest bearing
Demand $122,148 118,196 87,211
Interest Bearing Demand $24,529 23,990 19,307
Money Market and
Savings $108,158 103,561 74,048
Certificates of Deposit $25,932 33,211 49,486
------
Total Deposits $280,767 278,958 230,053
Borrowings 12,000 - -
Other Liabilities $2,027 2,042 2,474
Total Equity $44,469 43,811 35,862
------
Total Liabilities and
Equity $339,263 324,811 268,389
Tangible Shareholders'
equity $32,785 32,007 25,727
Tangible book value per
share 11.18 10.96 10.99
(1)Includes
preferred stock
dividends not
included in net
income.
SOURCE Puget Sound Bank
