Puget Sound Bancorp Reports Second Quarter Results

BELLEVUE, Wash.--(BUSINESS WIRE)--Puget Sound Bancorp (OTCQB:PUGB), the holding company for Puget Sound Bank, today reported net income of $1,072,120 or $0.32 per share for the quarter ending June 30, 2016, as compared to $961,775 or $0.28 per share for the year earlier period.

“The board, management and I are pleased to announce this ongoing and consistent growth. As compared to last year, net income is up 11% and our earnings per share increased 14%,” said Jim Mitchell, Puget Sound Bank president and chief executive officer.

Total loans at the end of the second quarter increased 9% to $361.9 million as compared to $331.3 million a year earlier. Puget Sound Bank’s business-related loans (including owner-occupied real estate) accounted for approximately 67% of the Bank’s portfolio, placing the Bank near the top of all banks in Washington state for business loans as a percentage of total loans. “The strong loan growth was primarily related to this segment – business loans, which were up 16% year-over-year,” said Mr. Mitchell.

Total deposits at quarter-end increased 11% to $409.1 million as compared to $369.0 million a year earlier, with 42% of total deposits in noninterest bearing accounts. “Our ability to attract these low-cost core deposits has driven our growth and has been a key contributor to our consistent profitability,” added Mr. Mitchell.

2016 Second Quarter Highlights

• Total assets grew 10% to $467.1 million as compared to $425.1 million a year ago.
• Total loans grew 9% to $361.9 million and total deposits grew 11% to $409.1 million as compared to a year ago.
• Net interest margin was 3.79% for the quarter as compared to 4.05% one year ago.
• Tangible book value per share increased to $13.99 from $12.51 a year earlier.
• Return on equity improved to 9.22% as compared to 9.05% a year ago.
• Return on assets was 0.94% compared to 0.96% a year ago.
• Nonperforming assets to total assets was 0.10% as compared to 0.10% in the year-earlier period. This represents one loan.
• Allowance for loan losses and the fair value discount on the acquired loan portfolio, together were 1.19% of loans.
• Noninterest demand deposits were $173.1 million as compared to $173.9 million a year earlier, or 42% of total deposits.
• The efficiency ratio (noninterest expense divided by revenue) improved to 61.0% for the quarter as compared to 63.7% in the year earlier quarter.
• Capital ratios continue to exceed regulatory requirements, with total risk-based capital substantially above well-capitalized regulatory requirements.
• For the 23^nd consecutive quarter, Puget Sound Bank was awarded a 5-star rating, the highest available from independent banking rating agency BauerFinancial.

“This quarter’s double-digit increase in net income and earnings per share, as compared to last year, resulted from strong revenue growth (8%) with only a modest increase in expenses (3%),” said Phil Mitterling, Puget Sound Bank executive vice president and chief financial officer. “This million-dollar net-income quarter – our fourth consecutive – was realized with the continued contributions of our very high-achieving team.”

In addition to recent 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 and is consistently rated one of the country’s strongest banks by independent analysts.

Common stock for Puget Sound Bancorp trades on the OTCQB^® electronic marketplace under the symbol PUGB. The stock price was $18.90 as of July 18, 2016.

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 PugetSoundBank.com or call (425) 455-2400.

To access investor relations information for Puget Sound Bancorp, visit 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.