Pacific Commerce Bank, N.A. (OTCBB:PFCI), announced financial results today for its recently concluded Third Quarter 2006. For the three-month period ending September 30, 2006, the bank reported a loss of approximately $251,000, compared to a loss for the same period last year of $200,000. Year-to-date losses were $765,000 compared to a loss of $576,000 for the same period last year. Total assets at September 30, 2006 rose to $95,758,000, compared to year earlier assets totaling $59,651,000. At quarter-end, shareholder equity stood at slightly over $15,000,000.
Significant financial highlights include:
- 90% Loan growth of more than $36 Million over 3rd quarter 2005
- 94% Net Interest Income growth over 3rd quarter 2005
- 61% Asset growth of more than $36 Million over 3rd quarter 2005.
- 33% Loan growth of almost $19 million over 2nd quarter 2006
- 27% Deposit growth of more than $16 million over 2nd quarter 2006
- 40% Net Interest Income growth over 2nd quarter 2006
Brian Kelley, Chief Executive Officer, noted that during the Third Quarter the bank continued to enjoy strong loan growth, with a record net loan funding of $18.8 million, resulting in a quarter-end balance of approximately $76.3 million in loans (a 91% increase over the same period last year). "The past quarter represents a real turning point for the bank. When one takes into consideration that $250,000 in loan loss reserves (ALLL) were posted by the bank during the quarter, we essentially operated on a breakeven (Pre-ALLL) basis," indicated Kelley. By way of comparison, for the same quarter in 2005, Pre-ALLL operating revenue represented a loss of $154,000.
"In many respects, the need to post a large loan loss provision is a good thing, not a bad thing," opined Kelley, "signifying that the Bank is well on its way in executing its 2006 Business Plan through effectively building its loan base. So far this year, the Bank has already set-aside $453,000 in additional loan loss reserves (compared with only $106,000 in loan loss reserves set aside during the same period in 2005), accounting for roughly 60% of year-to-date losses." Kelley also indicated that the bank was ahead of schedule in terms of its loan production, asset and revenue growth targets. Another major factor in the bank's success has been its ability to adjust its loan mix. At quarter-end, the bank's two largest loan categories were commercial real estate (33%) and commercial/industrial loans (29%). Residential loans, which had represented nearly 50% of the bank's loan mix at 2005 year-end, declined to less than 28% of outstanding loans.
Established in 2002, Pacific Commerce Bank is a community bank with offices in Little Tokyo 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 9:00 a.m. and 5:00 p.m. at 213-617-0082.
