Puget Sound Bancorp (OTCQB: PUGB), the holding company for Puget Sound Bank, today reported record net income of $4.2 million or $1.23 per share for the year ending December 31, 2016. This compares to $4.1 million or $1.22 per share for the year-earlier period.
For the quarter ending December 31, 2016, net income increased to $1.3 million or $0.40 per share as compared to $1.1 million or $0.33 per share for the year-earlier quarter. Return on equity in the fourth quarter increased to 11.07% and return on assets increased to 1.00%, reaching key benchmarks for high-performing banks.
“The board and management team are extremely proud of the Bank’s performance this year – particularly in the fourth quarter,” said Jim Mitchell, Puget Sound Bancorp president and chief executive officer. “This ongoing, consistent growth results from our hardworking team of banking professionals dedicated to delivering an exceptional experience to our loyal customers.”
Total assets increased 8% to $519.1 million at year-end as compared to $480.8 million a year earlier, and total loans at year-end increased 11% to $374.1 million as compared to $338.2 million a year earlier. Puget Sound Bank’s ratio of nonperforming assets to total assets continued to improve (0.08% at year-end compared to 0.10% for the year earlier).
The percentage of Puget Sound Bank’s business-related loans (including owner-occupied real estate) at year-end accounted for approximately 66% of the Bank’s portfolio. This places the Bank near the top of all commercial banks in Washington state for these loans as a percentage of total loans.
Total deposits at year-end increased 8% to $459.6 million as compared to $425.3 million a year earlier, with 49% of total deposits in checking accounts at year-end.
2016 Highlights
- Total assets grew 8% to $519.1 million at the end of 2016 as compared to $480.8 million a year ago.
- Noninterest demand deposits were $187.4 million at year-end, or 41% of total deposits.
- Total loans grew 11% to $374.1 million at the end of 2016 as compared to $338.2 million a year earlier.
- Total deposits grew 8% to $459.6 million at year-end as compared to $425.3 million a year earlier.
- Net interest margin for the fourth quarter was 3.53% as compared to 3.57% in the year-earlier quarter.
- Tangible book value per share increased to $14.25 at year-end from $13.23 a year earlier.
- Return on equity for the fourth quarter increased to 11.07% as compared to 10.04% in the year-earlier quarter.
- Return on assets for the fourth quarter increased to 1.00% as compared to 0.95% in the year-earlier quarter.
- The ratio of nonperforming assets to total assets improved to 0.08% at year-end as compared to 0.10% in the year-earlier period.
- Allowance for loan losses and the fair value discount on the acquired loan portfolio, together were 1.18% of loans.
- The efficiency ratio (noninterest expense divided by revenue) improved to 58.7% for the fourth quarter as compared to 59.3% for year-earlier quarter.
- Capital ratios continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements.
- For the 25th consecutive quarter, Puget Sound Bank was awarded a 5-star rating (superior), the highest available from independent bank-rating agency BauerFinancial.
“2016 has been another successful year for Puget Sound Bank,” said Phil Mitterling, Puget Sound Bank executive vice president and chief financial officer. “Assets at the Bank surpassed the $500 million mark, we reached profitability benchmarks for high-performing banks in the fourth quarter, operating efficiency improved, and we delivered record profits.”
In addition to recognition as a Best Company to Work For by Seattle Business Magazine, Puget Sound Bank has also been named a Best Workplace, Fastest Growing Company and Top Corporate Philanthropist by Puget Sound Business Journal. The Bank is rated “five-star superior” by BauerFinancial (a nationally recognized, independent bank rating agency) and has an A+ rating from DepositAccounts.com.
Common stock for Puget Sound Bancorp trades on the OTCQB® electronic marketplace under the symbol PUGB.
About Puget Sound Bancorp
Based in Bellevue, Washington, Puget Sound Bancorp provides banking products and services through its wholly-owned subsidiary, Puget Sound Bank (member FDIC). 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. As one of Washington state’s top commercial banks (as measured by commercial and industrial loans as a percentage of total loans), 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, on mobile devices or through Puget Sound Bank's nationwide ATM network. For more information visit www.PugetSoundBank.com or call (425) 455-2400.
To access investor relations information for Puget Sound Bancorp, visit www.PugetSoundBancorp.com 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,” “looking forward,” 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 Bancorp | |||||||||||||||||
Fourth Quarter 2016 | |||||||||||||||||
CONSOLIDATED STATEMENT OF OPERATIONS | |||||||||||||||||
(Unaudited) | |||||||||||||||||
Quarterly | |||||||||||||||||
2016 | 2016 | 2015 | 2016 | 2015 | |||||||||||||
($ in thousands except per share data) | 4th Qtr | 3rd Qtr | 4th Qtr | YTD | YTD | ||||||||||||
EARNINGS | |||||||||||||||||
Net interest income | $ | 4,508 | 4,288 | 3,939 | 16,856 | 15,383 | |||||||||||
Provision for loan losses | $ | 113 | 748 | 4 | 933 | 103 | |||||||||||
Net interest income after provision for loan losses | $ | 4,395 | 3,540 | 3,935 | 15,923 | 15,280 | |||||||||||
NonInterest income | $ | 238 | 220 | 235 | 855 | 749 | |||||||||||
NonInterest expense | $ | 2,786 | 2,680 | 2,476 | 10,729 | 9,912 | |||||||||||
Pre-tax Net income | $ | 1,847 | 1,080 | 1,694 | 6,049 | 6,117 | |||||||||||
Provision for income taxes (benefit) | $ | 497 | 355 | 551 | 1,886 | 2,034 | |||||||||||
Net income | $ | 1,350 | 725 | 1,142 | 4,163 | 4,083 | |||||||||||
Preferred dividends | $ | 0 | 0 | 34 | 0 | 108 | |||||||||||
Net income available to common shareholders | $ | 1,350 | 725 | 1,108 | 4,163 | 3,975 | |||||||||||
1Earnings per share | $ | 0.40 | 0.21 | 0.33 | 1.23 | 1.22 | |||||||||||
Average shares outstanding | 3,385 | 3,383 | 3,339 | 3,376 | 3,264 | ||||||||||||
Total revenue | $ | 4,746 | 4,508 | 4,173 | 17,711 | 16,132 | |||||||||||
PERFORMANCE RATIOS | |||||||||||||||||
Return on average assets | 1.00 | % | 0.58 | % | 0.95 | % | 0.85 | % | 0.95 | % | |||||||
1Return on average tangible common equity | 11.07 | % | 5.98 | % | 10.04 | % | 8.81 | % | 9.60 | % | |||||||
Net interest margin | 3.53 | % | 3.61 | % | 3.57 | % | 3.64 | % | 3.85 | % | |||||||
Efficiency ratio | 58.7 | % | 59.5 | % | 59.3 | % | 60.6 | % | 61.4 | % | |||||||
CAPITAL | |||||||||||||||||
Common equity tier 1 ratio | 12.69 | % | 12.99 | % | |||||||||||||
Tier 1 leverage ratio | 10.75 | % | 10.52 | % | |||||||||||||
Tier 1 risk-based capital ratio | 12.69 | % | 12.99 | % | |||||||||||||
Total risked based capital ratio | 13.76 | % | 14.11 | % | |||||||||||||
Tangible Common Equity Ratio | 9.36 | % | 9.18 | % | 9.25 | % | |||||||||||
ASSET QUALITY | |||||||||||||||||
Net loan charge-offs (recoveries) | $ | 8 | 700 | (97 | ) | ||||||||||||
Allowance for loan losses | $ | 4,351 | 4,246 | 4,096 | |||||||||||||
Allowance for losses to total loans | 1.17 | % | 1.16 | % | 1.21 | % | |||||||||||
Nonperforming loans | $ | 403 | 659 | 477 | |||||||||||||
Other real estate owned | $ | 0 | 0 | 0 | |||||||||||||
Nonperforming assets to total assets | 0.08 | % | 0.13 | % | 0.10 | % | |||||||||||
Puget Sound Bancorp | |||||||||||
Fourth Quarter 2016 | |||||||||||
CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||
(Unaudited) | |||||||||||
Quarterly | |||||||||||
2016 | 2016 | 2015 | |||||||||
($ in thousands except per share data) | 4th Qtr | 3rd Qtr | 4th Qtr | ||||||||
BALANCE SHEET | |||||||||||
Cash and Due From Banks | $ | 20,501 | 16,828 | 29,313 | |||||||
Investments | $ | 117,067 | 136,627 | 109,209 | |||||||
Commercial and Industrial Loans | $ | 166,693 | 157,808 | 143,247 | |||||||
Owner-Occupied Commercial Real Estate | $ | 80,022 | 83,428 | 71,179 | |||||||
Other Commercial Real Estate | $ | 105,837 | 101,756 | 94,096 | |||||||
Personal Loans | $ | 21,136 | 21,550 | 29,226 | |||||||
Non-accrual Loans | $ | 403 | 659 | 477 | |||||||
Acquired Loan Fair Value Adjustment | $ | (55 | ) | (60 | ) | (139 | ) | ||||
Deferred Loan Fees | $ | (727 | ) | (701 | ) | (533 | ) | ||||
Total Loans | $ | 373,309 | 364,439 | 337,553 | |||||||
Allowance for Loan Losses | $ | (4,351 | ) | (4,246 | ) | (4,096 | ) | ||||
Net Loans | $ | 368,958 | 360,193 | 333,457 | |||||||
Goodwill/Core Deposit Intangible | $ | 2,096 | 2,102 | 2,122 | |||||||
Other Assets | $ | 10,436 | 9,807 | 6,712 | |||||||
Total Assets | $ | 519,058 | 525,557 | 480,813 | |||||||
Non-interest bearing Demand | $ | 187,439 | 192,065 | 208,125 | |||||||
Interest Bearing Demand | $ | 37,588 | 44,629 | 21,313 | |||||||
Money Market and Savings | $ | 193,173 | 192,693 | 166,111 | |||||||
Certificates of Deposit | $ | 41,392 | 37,130 | 29,776 | |||||||
Total Deposits | $ | 459,591 | 466,517 | 425,325 | |||||||
Debt | $ | 6,000 | 6,000 | 6,000 | |||||||
Other Liabilities | $ | 3,005 | 2,907 | 3,069 | |||||||
Total Equity | $ | 50,462 | 50,133 | 46,419 | |||||||
Total Liabilities and Equity | $ | 519,058 | 525,557 | 480,813 | |||||||
Tangible Shareholders' equity | $ | 48,366 | 48,031 | 44,297 | |||||||
Tangible book value per share | $ | 14.25 | 14.19 | 13.23 | |||||||
Book value per share | $ | 14.87 | 14.81 | 13.87 | |||||||
1Includes preferred stock dividends not included in net income. |
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