BELLEVUE, Wash., June 14, 2013 /PRNewswire/ -- 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 BankHeadquartered 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.