Premier Business Bank ("Bank") announced the appointment of John R. Polen as President and Chief Executive Officer. Mr. Polen joined the Bank as a consultant in April 2010 and was officially appointed President and Chief Executive Officer in May 2010. "The Board of Directors is pleased to announce Mr. Polen is on board. With his extensive experience in bank management, lending, and finance, he has made many positive changes in the operations, which include efficiencies and bringing the Bank to profitability," said David Lake, Chairman of the Board. Mr. Polen was previously President and Chief Executive Officer of Malaga Bank in Palos Verdes, California. During his tenure, he increased total assets from $300 million to $700 million in five years generating profits without loan losses to support the growth of the Bank. Mr. Polen is also a certified public accountant.
"Premier Business Bank has just recorded its first two consecutive quarters of profitability since opening its doors in July of 2006. With no non-performing loans or REO, the Bank does not have any of the asset quality challenges as do a large percentage of the community banks in today's economic environment," said Mr. Polen. The Bank reported net income of $188,000 or $0.09 per share and $368,000 or $0.18 per share for the three-month periods ended September 30, 2010, and June 30, 2010, respectively. This compares favorably to a loss of $962,000 and $919,000 during the same periods in 2009. Net income for the nine-month period ended September 30, 2009, an increase of $3,270,000. Net income increased primarily due to an increase in net interest margins and significantly lowered overhead. "The evolution to profitability is a significant milestone for Premier Business Bank given the economic environment and challenges faced by the bank as well as the whole banking industry during the past few years. As a result of prudent stewardship of the bank's lending portfolio since inception of the bank, the bank currently does not have any non-accrual loans or assets. This coupled with our low cost of funds and controlled overhead, has allowed the bank to be profitable," commented Mr. Polen.
The Bank's focus has been to maintain excellent credit quality in its loan portfolio. The Bank has not charged-off any loans during 2010; however, it has prudently increased its provision for loan losses to $1.7 million, or 2.12% of total loans as of September 30, 2010.
The Bank's total assets were $92.3 million at September 30, 2010 compared to $108.6 million at September 30, 2009, a decrease of $16.3 million. Total gross loans were $80.6 million at September 30, 2010 compared to $82.0 million for the same period in 2009, a decrease of $1.4 million.
Total Deposits were $77.1 million as of September 30, 2010 compared to $92.4 million as of September 30, 2009. The decrease in the total deposits of $15.3 million was primarily in Certificates of Deposits greater than $100,000 and directly affected the decrease in total assets. Although total deposits decreased, it is important to note that non-interest bearing deposits increased $7.4 million from $10.1 million or 10.9% of total deposits at September 30, 2009 to $17.5 million or 22.7% of total deposits as of September 30, 2010.
At September 30, 2010, the Bank had $11.6 million in shareholders' equity reflecting an unaudited book value of $5.81 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 15.49%, Tier 1 Risk-Based Capital Ratio was 13.98%, and Tier 1 Leverage Ratio was 12.43% as of September 30, 2010. "Although 2011 may continue to be fraught with the uncertainties, Premier Business Bank is poised to navigate through this uncertain economy under its own initiatives and not be subject to the past decisions that have plagued so many of the balance sheets at other community banks in Southern Califorrnia," said 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.