Puget Sound Bank

Puget Sound Bank Completes Acquisition of Core Business Bank

2013 June 14 by Fresh Team

Bellevue, Wash, June 14, 2013 – Puget Sound Bank (OTCBB: PUGB) today announced the completion of its acquisition of Core Business Bank. With its increased assets Puget Sound Bank builds upon its long-term vision of strategically building shareholder value through expanding its customer base.

Total assets are now $320 million and net worth is approximately $43 million with a total risk-based capital ratio of over 15% (well above the FDIC’s 10% minimum it considers to be a well-capitalized bank). The acquisition is expected to be accretive to earnings per share and tangible book value per share in the first full year of operations.

“Our board and executive team carefully evaluated this acquisition to not only ensure we would enhance shareholder value in a prudent and controlled manner,” said Jim Mitchell, Puget Sound bank president and chief executive officer, “but also better serve our customers to contribute to growth in the Puget Sound region.”

Puget Sound Bank’s new net worth gives the Bank a new legal lending limit to any single entity of approximately $9 million. “We look forward to serving customers in this expanded capacity, said Mr. Mitchell, “with both higher limits and the added breadth of experience and industry networks our new loan officers bring to Puget Sound Bank.”

As of March 31, 2013 Puget Sound Bank had less than 1% (0.66%) of nonperforming loans of its total assets and Core Business Bank had zero nonperforming loans. Puget Sound Bank, like Core Business Bank, has one of the highest percentages of Commercial & Industrial loans relative to total loans in Washington.

Effective at the time of the acquisition Puget Sound Bank appointed Jim Schuler, the former chairman of Core Business Bank’s board of directors, to Puget Sound Bank’s board of directors. “All of our staff have been working diligently the past few months to ensure a smooth and seamless transition,” said Mr. Mitchell, “and we’re pleased that Core Business Bank’s most experienced bankers will join our team.”

Puget Sound Bank and Core Business Bank announced the agreement for Puget Sound Bank to acquire Core Business Bank in March of 2013 for $8.4 million with a combination of 20% cash and 80% Puget Sound Bank common stock. The deal received shareholder and regulatory approval in the second quarter of 2013. Puget Sound Bank was advised by Monroe Securities and Foster Pepper PLCC. Core Business Bank was advised by McAdams Wright Ragen Inc. and Keller Rohrback LLP.

About Puget Sound Bank
Headquartered in Bellevue, WA, Puget Sound Bank is a locally owned and operated commercial bank proudly serving the greater Puget Sound region. The Bank focuses on meeting the specialized needs of small- and medium-sized businesses, commercial real estate projects, professionals and high-net worth individuals. Puget Sound Bank offers a full range of competitive financial products delivered through an expansive branch network in the State, with award-winning customer service and a consultative/partnership approach to its clients. For more information call 425-455-2400 or visit us online at www.PugetSoundBank.com.

Former Core Business Bank customers who have any questions about their accounts should call 425-455-2400 to speak with a customer service officer.

Safe Harbor Statement. 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. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Puget Sound Bank with the Securities and Exchange Commission. Puget Sound Bank undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Puget Sound Bank Earnings Increase to $533,126 in First Quarter

2013 April 17 by Richard Lester

 BELLEVUE, WA —April 17, 2013 — Puget Sound Bank (OTCBB: PUGB)

, today reported that net income for the 1Q 2013 increased to $533,126 or $.21 per share from $359,516 or $.14 per share in 4Q 2012. Net income in 1Q 2012 was $517,065 or $.21 per share.

“We continue to have strong balance sheet growth in combination with excellent asset quality. Assets grew 17% from a year ago with continued improvement in nonperforming asset levels,” said Jim Mitchell, President and Chief Executive Officer. “We were particularly pleased to announce an agreement to acquire Core Business Bank (Core). Core is a great fit culturally as their business model focuses on small and medium sized business lending like ours.”

 Net income for the quarter was impacted by acquisition-related expenses of approximately $230,000 related to the agreement to acquire Core Business Bank. Net income would have been nearly $700,000 this quarter without those expenses.

 Loans grew 9% to $204 million from $187 million a year ago. Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans grew 22% from a year ago and, accounted for 67% of the loan portfolio at the end of the year compared to 60% at the end of 1Q 2012.

 Nonperforming assets declined to 0.66% of assets from 0.99% a year ago.

 Deposits grew 19% to $238 million from $201 million a year ago. Noninterest-bearing deposits increased 50% from 1Q 2012 and accounted for 40% of total deposits compared to 32% a year ago.

Follow the link below for the full news release.

 Puget Sound Bank Q1 2013 News Release

Bankers Care 2013 Spring Food Drive

2013 April 1 by Richard Lester

From March 1st through April 5th, bankers in Washington will join together to make a difference for Northwest Harvest and thousands of hungry people in the community, filling a critical need during a season where many food banks find their shelves are far too empty.

The Bankers Care 2013 Spring Food Drive includes the participation of approximately 500 local bank branches across the region spanning from Everett to Olympia. The campaign builds on the individual efforts of many of the banks in their active fight against hunger, increasing the reach and impact by collectively helping the hungry in our communities.

Puget Sound Bank is proud to serve as a drop location for cash and non-perishable food items. Additional information can be found by following the link provided below.

www.bankersinwacare.com

Puget Sound Bank Acquires Core Business Bank

2013 March 22 by Fresh Team

Acquisition comes on the heels of 53 percent annual earnings growth for the bank in 2012

BELLEVUE, WA —March 22, 2013 — Puget Sound Bank (OTCBB: PUGB), and Core Business Bank (Core) today jointly announced the signing of a definitive agreement pursuant to which Puget Sound Bank will acquire Core Business Bank for $8,425,000 with a combination of 20% cash and 80% Puget Sound Bank common stock. This value represents 132% of Core’s December 31, 2012 net book value. The acquisition is expected to be accretive to Puget Sound Bank’s earnings per share and tangible book value per share in the first full year of operations. The deal is expected to close in the second quarter of 2013 and is subject to the customary requirements that include regulatory approval as well as shareholder approval.

Upon completion of the transaction, the combined company will have over $330 million in assets. The banks have two of the highest quality loan portfolios in the State. Puget Sound Bank has non-performing loans of 0.75 percent of its total loans and Core Business Bank has zero non-performing loans. Both banks have two of the highest percentages of Commercial & Industrial (C & I) loans relative to total loans in the State.

The combined net worth of the two companies will be approximately $44 million with a total risk based capital ratio of 15 percent, well over the minimum of 10 percent, which the FDIC considers to be a well-capitalized bank. This level of net worth gives the combined company a legal lending limit, to any single entity, of approximately $9 million. The combined company will be the 29th largest bank headquartered in Washington based on deposits. There are currently 71 banks and thrifts headquartered in the State.

“2012 was an incredible year for Puget Sound Bank, with almost $2 million in net income, 53 percent over the previous year,” explained Jim Mitchell, President and Chief Executive Officer. “We have some of the brightest and most experienced financial professionals in the business with the highest standards for customer service. This has allowed us to grow loans and deposits at the highest levels in the state since we began operations in 2005. This growth has created the platform for an acquisition strategy that has culminated in finding a partner that fits our criteria of a healthy Northwest bank that is focused on C&I lending.”

“This is a great fit for both of our institutions,” says Core Business Bank founder and Chief Executive Officer, Dave Huguenin. “We have a similar culture that focuses on C & I lending and customer service, which will enable us to achieve greater success together than we could on our own.”

On December 31, 2012, Core Business Bank had $64 million in total assets, $57 million in deposits, net income for the year of $122,000 and zero non-performing loans.

Jim Schuler, current Core Business Bank board member, will join the Puget Sound Bank board of directors.

Puget Sound Bank was advised by Monroe Securities and Foster Pepper PLLC. Core Business Bank was advised by McAdams Wright Ragen, Inc. and Keller Rohrback LLP.

Both banks are headquartered in Bellevue, Washington.

Puget Sound Bank is traded on the Over-The-Counter Bulletin Board with the symbol: PUGB

About Puget Sound Bank
Puget Sound Bank is a locally-owned and operated commercial bank proudly serving the greater Puget Sound region. Based out of Bellevue, Washington, the bank was founded to meet the specialized needs of small and medium-sized businesses, commercial real estate projects, professionals and individuals seeking a higher level of service in the Puget Sound region. Staffed by the most experienced, customer-oriented banking professionals in the region, Puget Sound Bank offers a full range of competitive financial products with superior customer service and a consultative/partnership approach to its clients. Puget Sound Bank provides online banking at www.pugetsoundbank.com and has access to a large branch network in the state of Washington. The bank can also provide remote capture technology which allows its clients to make deposits from their offices. Puget Sound Bank is located at 10500 NE 8th Street, Suite 1500, Bellevue, Washington. For more information, please call 425-455-2400.

Safe Harbor Statement. 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. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Puget Sound Bank with the Securities and Exchange Commission. Puget Sound Bank undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Contact
Jim Mitchell, President & CEO
(425) 455-2400

Puget Sound Bank Earnings Increase 53% in 2012

2013 January 17 by Richard Lester

 Puget Sound Bank Earnings Increase 53% in 2012 to $1,932,612

BELLEVUE, WA —January 16, 2013 — Puget Sound Bank (OTCBB: PUGB), today reported that net income for the year increased 53% to $1,932,612 or $.78 per share compared to income of $1,263,963 and $.40 per share for 2011. Net income for 4Q was $359,516 or $.14 per share.

“Puget Sound Bank’s performance was outstanding in 2012,” said Jim Mitchell, President and Chief Executive Officer. “The bank’s earnings grew by 53%, loan and deposit growth continues to be among the highest in the State and nonperforming assets improved to 0.85% of assets.”

Loans grew 11% to $215 million from $194 million at the end of 2011. Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 67% of the loan portfolio at the end of the year compared to 63% at the end of 2011.

Deposits grew 8% to $230 million from $213 million a year ago. Noninterest-bearing deposits increased 40% from the end of 2011 and accounted for 38% of total deposits compared to 29% a year ago.

Click the link below for the full News Release.

PUGB+4Q12+earnings+releaseFinal

About Puget Sound Bank

Puget Sound Bank is a locally-owned and operated commercial bank proudly serving the greater Puget Sound region. Based out of Bellevue, Washington, the bank was founded to meet the specialized needs of small and medium-sized businesses, commercial real estate projects, professionals and individuals seeking a higher level of service in the Puget Sound region. Staffed by the most experienced, customer-oriented banking professionals in the region, Puget Sound Bank offers a full range of competitive financial products with superior customer service and a consultative/partnership approach to its clients. Puget Sound Bank provides online banking at www.pugetsoundbank.com and has access to a large branch network in the state of Washington. The bank can also provide remote capture technology which allows its clients to make deposits from their offices. Puget Sound Bank is located at 10500 NE 8th Street, Suite 1500, Bellevue, Washington. For more information, please call 425-455-2400.

Safe Harbor Statement.

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. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Puget Sound Bank with the Securities and Exchange Commission. Puget Sound Bank undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Special New Years Eve and New Years Day Hours

2012 December 31 by Richard Lester

Puget Sound Bank will be closing at 3:00 pm on Monday December 31st and will be closed on Tuesday January 1st in observance of New Years Day. The Bank will be open for normal business hours on Wednesday January 2nd.

Puget Sound Bank Second Quarter Profits Jump 27%

2012 August 16 by Richard Lester

BELLEVUE, WA —July 18, 2012 — Puget Sound Bank (OTCBB: PUGB.OB), today reported that net income for second quarter increased 27% to $526,381, or $.21 per share compared to $413,145, or $.15 per share for second quarter 2011. Net income for the first six months increased 20% from the same period a year ago to $1,043,446.

“Puget Sound Bank continues to produce consistently strong earnings driven by solid loan and deposit growth and improving credit quality,” said Jim Mitchell, President and Chief Executive Officer. “We are very pleased that the bank’s nonperforming loans are just 0.75% of total assets, which is among the lowest levels in the State.”

 Loans grew 11% to $195 million from $175 million in second quarter 2011. Commercial and industrial (C&I) loans, including owner-occupied commercial real estate loans, accounted for 62% of the loan portfolio at the end of the quarter. Deposits grew 11% to $217 million from $197 million a year ago. Noninterest-bearing deposits increased 28% from second quarter 2011 and accounted for 34% of total deposits, compared to 29% a year ago.

See here for full release.

Puget Sound Bank Recognized as One of Washington’s Best Workplaces in 2012

2012 June 20 by Richard Lester

BELLEVUE, WA – June 19, 2012 – Puget Sound Bank (OTCBB: PUGB.OB), announced today that is was recently recognized by the Puget Sound Business Journal as a finalist for Washington’s Best Workplaces in 2012.

This year, 85 companies have been named finalists in the Puget Sound Business Journal’s Washington’s Best Workplaces competition. They will be featured in a special report of the Business Journal on August 10th and will be celebrated at an awards event at Safeco Field. Winners of the small, medium, large, and extra-large company categories will be announced there.

 Acknowledging the recognition, Puget Sound Bank’s President and Chief Executive Officer Jim Mitchell said, “This is a tribute to our tremendous team and customer-oriented employees that work hard every day to create a positive work environment. We are focused on continually recognizing and appreciating the dedicated banking professionals at Puget Sound Bank.”

Safe Harbor Statement. 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. Actual results may differ materially from the results expressed in forward-looking statements. Factors that might cause such a difference include changes in interest rates and interest rate relationships; demand for products and services; the degree of competition by traditional and non-traditional competitors; changes in banking regulation; changes in tax laws; changes in prices; levies and assessments; the impact of technological advances; governmental and regulatory policy changes; the outcomes of contingencies; trends in customer behavior as well as their ability to repay loans; changes in the national and local economy; and other factors, including risk factors, referred to from time to time in filings made by Puget Sound Bank with the Securities and Exchange Commission. Puget Sound Bank undertakes no obligation to update or clarify forward-looking statements, whether as a result of new information, future events or otherwise.

Puget Sound Bank CEO on being a ‘0.99-percenter’ – in nonperforming loans

2012 June 19 by Richard Lester

Puget Sound Business Journal by Greg Lamm, Staff Writer

Date: Thursday, April 19, 2012, 1:46pm PDT – Last Modified: Thursday, April 19, 2012, 1:51pm PDT

Puget Sound Bank saw profits increase by 13 percent and revenue go up 14 percent in the first quarter of 2012. But bank CEO Jim Mitchell wants to call attention to another figure: 0.99 percent.

That’s the Bellevue bank’s percentage of nonperforming loans compared to total assets, a percentage that is below most in the industry and that declined from 1.22 percent at the end of the first quarter of 2011.

“We are pleased with the direction we are heading, particularly on the nonperforming loans,” Mitchell told me Thursday. “I particularly like being below 1 percent.”

Puget Sound Bank reported profits increased 13 percent in the first quarter of 2012, compared to the same quarter a year ago. Puget Sound Bank said it saw net income of $517,065, or 21 cents per share, for first quarter 2012 compared to $456,124, or 17 cents per share, for first quarter 2011.

The first-quarter financial performance report is the continuation of a familiar story line that helped the 7-year-old locally owned commercial bank avoid the worst of the banking industry’s financial meltdown by staying focused on lending to small and medium-sized businesses.

For the first quarter of 2012, the bank said revenue was up 14 percent from a year ago, at $2.7 million.

Compared to a year ago, the bank said its loans grew by 9 percent in the first quarter to $187 million. Commercial and industrial loans — including owner-occupied commercial real estate loans — accounted for 60 percent of the bank’s loan portfolio at the end of the quarter, the bank reported.

The bank said its nonperforming loans — a key gauge of a bank’s overall health — were at $2.3 million — 0.99 percent or just shy of 1 percent of total assets.

Mitchell said Puget Sound Bank’s first quarter results reflect a continued focus on building strong relationships with small businesses.

That relationship with small businesses has helped the bank in another way. Puget Sound Bank reported that its non-interest-bearing deposits increased 15 percent from a year ago. And the non-interest accounts now make up 32 percent of the bank’s total deposits, up from 28 percent a year ago.

Mitchell said that reflects a strategy to have a broad banking relationship with its business customers. When the bank makes a loan to a small business, it requires the business to move its business checking account to Puget Sound Bank.

The Federal Reserve had long banned interest-bearing business checking accounts. The rule traced its roots back to the Great Depression, when the government saw it as a way to discourage companies from stashing away cash in interest-bearing accounts instead of reinvesting it in factories or equipment.

But the ban was lifted last summer. Some banks have started offering businesses interest-bearing checking accounts.

Mitchell said with interest rates so low, there has not been much demand among his customers seeking to gain interest on their business checking accounts.

Mitchell also said the bank has continued to pay attention to costs, noting that its revenue increased 14 percent from a year ago, while expenses grew by only 2 percent.

By total assets, Puget Sound Bank is ranked No. 34 on the Puget Sound’s list of largest banks based in Washington. That’s up from No. 41 a year ago.

Puget Sound Bank Rated 5 Stars Again!

2012 June 11 by Richard Lester

June 7, 2012 – We’ve done it again! BauerFinancial maintained its highest rating for Puget Sound Bank at 5 Stars (“Superior”). BauerFinancial is an independent organization that has been reporting on and analyzing the performance of US banks since 1983. Institutions do not pay a fee to BauerFinancial for their ratings, nor can they avoid a rating. BauerFinancial’s Star ratings are based on the call report data that all banks are required to file with the FDIC on a quarterly basis.

Puget Sound Bank’s continued strong performance in 2012 reflects the core competitive advantage of the bank: strong capital and liquidity, robust deposit and loan growth, and solid credit quality. See our investor site for more details.