For Immediate Release
Contact:
Don L. Hirtzel, Chairman and CEO
Steven M. Shaughnessy, President and COO
Jan Gould, Executive Vice President and CFO
(206) 515-2004
First Sound Bank Grows Significantly Following Asset Acquisition
of Puget Sound Leasing Company,
Inc.
SEATTLE,
April 23, 2008 – First Sound Bank (OTCBB:FSWA) today reported
after-tax earnings of $587 thousand for the quarter ending March 31,
2008, compared to $334 thousand for the first quarter a year ago.
First quarter 2008 earnings include a first-time tax provision of
$273 thousand and reflect the impact of the acquisition of
substantially all of the assets – as well as a subsequent sale of
leases – of Puget Sound Leasing Company, Inc. Acquisition of the
leasing company was completed on March 1, 2008.
The bank’s assets at quarter-end stood at $255.0 million, up $71.6
million or 39.0 percent from $183.4 million at year-end 2007. Loans
ended the quarter at $209.3 million, up 45.9 percent from $143.5
million the previous quarter. (At closing, Puget Sound Leasing
additions to First Sound Bank’s balance sheet included $54 million
in assets and $49 million in loans [leases]). Deposits rose 24.4
percent, from $147.3 million to $183.2 million. Non-interest
bearing deposits, which comprised 16.4 percent of deposits, rose
23.9 percent – from $24.3 million to $30.1 million.
First Sound Bank’s net interest margin showed improvement over
year-end 2007, increasing from 4.54 to 4.85 percent. This margin is
adversely affected by reductions in the prime rate as more than 55
percent of the bank’s loans are made at a variable rate
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First Sound Bank
Grows Significantly
and re-price immediately upon any change in prime. The adverse
effects of cuts in the prime rate are offset to some degree by
interest rates charged on the lease portfolio, which are priced at a
fixed rate.
Credit quality continues to be good, with minimal increases in
delinquencies. First Sound Bank – which has no exposure in the
subprime real estate market – recognizes, however, the need to be
continually diligent in the oversight of credit in light of the
current downturn in the economy.
First Sound Bank’s efficiency ratio at quarter-end was 58.7 percent
– a 10.9 percent improvement over the ratio at year-end.
“The integration of Puget Sound Leasing and First Sound Bank is
going very well,” said First Sound Bank Chairman and CEO Don Hirtzel.
“There is a high regard among staff on both sides, we have very
compatible management teams, and Puget Sound Leasing’s strong, new
equipment leasing generations compare favorably to last year’s
volumes.”
“We remain quite confident about the opportunities available in this
marketplace for a commercial bank such as First Sound,” said First
Sound Bank President and COO Steve Shaughnessy. “Our clients
continue to recognize and applaud our service, our responsiveness
and our flexibility in helping them to achieve their business
objectives, and – most importantly – they recommend us to their
peers.”
First Sound Bank was founded in July 2004 with initial investor
capital of $20 million – at the time, the most equity ever raised by
a de novo bank in the Northwest. In the fall of 2006, the
bank raised an additional $11 million in capital. With $255 million
in assets,
the bank serves clients with a dedicated 89-person staff located in
its downtown Seattle office and its leasing company in Bellevue.
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First Sound Bank
Grows Significantly
For a more
detailed financial analysis, contact
jgould@firstsoundbank.com
Certain
statements in this press release, including statements regarding the
anticipated development and expansion of First Sound Bank’s
business, and the intent, belief or current expectations of the
company, its directors or its officers, are “forward-looking”
statements (as such term is defined in the Private Securities
Litigation Reform Act of 1995). Because such statements are subject
to risks and uncertainties, actual results may differ materially
from those expressed or implied by such forward-looking statements.
First Sound Bank
is a Seattle-based bank offering customized banking for small- to
medium-sized businesses, organizations, not-for-profits and
professionals in the Puget Sound region. Founded by a team of
veteran local banking executives, First Sound Bank is committed to
delivering personalized service, convenient access and competitive
rates to support the needs of the business community. First Sound
Bank offers online banking at
www.firstsoundbank.com plus an expansive banking
network in the western U.S., as well as ATM banking throughout the
country and abroad.
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