Premier Business Bank ("Bank") is pleased to announce five consecutive quarters of profitability. The Bank reported net income of $90,000 or $0.04 per share and $369,000 or $0.018 per share for the three-month period ended June 30, 2011, and June 30, 2010, respectively. Net income for the six-month period ended June 30, 2011 was $212,000 or $0.10 per share as compared to $298,000 or $0.15 for the same period ended June 30, 2010.
"The Bank continues to report positive earnings. The 2010 results shown above included an extraordinary gain on the sale of securities. The Bank's operating profits remain stable and it continues to strengthen its operations in spite of the economic pressures and increased banking regulations. Our asset quality remains strong with no REO or non-performing assets. We attribute our recent success and profitability to prudent management of the Bank's lending portfolio, and controlling the cost of funds and non-interest expenses (G & A)," stated Mr. John R. Polen, President and CEO.
The Bank's primary focus is to maintain excellent credit quality in its loan portfolio. The Bank has not charged-off any loans since 2009; and has an adequate provision for loan losses of $1.8 million, or 2.38% of total loans as of June 30, 2011. "The Bank opened its Torrance-based Loan Center in March 2011 to expand its business and real estate loan operations into the South Bay region where our experienced management team has strong client relationships to augment overall loan fundings," commented Mr. Polen.
The Bank's total assets were $88.6 million at June 30, 2011 compared to $99.9 million at June 30, 2010, a decrease of $11.3 million. Total loans, net were $72.5 million at June 30, 2011 compared to $84.7 million for the same period in 2010, a decrease of $12.2 million.
Total Deposits were $73.2 million as of June 30, 2011 compared to $84.9 million as of June 30, 2010. The decrease in total deposits of $11.7 million was primarily in Certificates of Deposits greater than $100,000.
At June 30, 2011, the Bank had $12.1 million in shareholders' equity or a book value of $5.98 per share. The Bank's capital ratios far exceed the applicable regulatory capital requirements to be considered "well-capitalized" under the regulatory framework for prompt corrective action. Total-Risk Based Capital Ratio was 17.78%, Tier 1 Risk-Based Capital Ratio was 16.52%, and Tier 1 Leverage Ratio was 13.17% as of June 30, 2011. "Although the remainder of 2011 may be economically challenging, Premier Business Bank is well positioned to re-invest in the communities that it serves through prudent lending to individuals and businesses," stated Mr. Polen.
Premier Business Bank opened for business in July 2006. It is a full-service, high-tech business bank headquartered in downtown Los Angeles, California, and has a Loan Center in Torrance, California to serve the South Bay region. The Bank has a client centric service philosophy focused on banking relationships with small to mid-size businesses, family-owned and closely-held middle market businesses, real estate investors, professional management firms, and entrepreneurs. For more information, please visit us at www.ibankpremier.com.
Randall T. Hata
Executive Vice President and Chief Financial Officer
This release contains forward-looking statements, such as statements about certain plans, expectations and projections which are subject to numerous risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, including the real estate market in California, the adequacy of the Bank's allowance for loan losses, and other factors beyond the Bank's control. Such risks and uncertainties could cause results for subsequent interim periods or for entire years to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.