LOS ANGELES--(EON: Enhanced Online News)--Manufacturers Bank (the Bank), a California commercial bank with total assets of $2.23 billion, is a wholly owned subsidiary of Sumitomo Mitsui Banking Corporation (SMBC), which in turn is a wholly owned subsidiary of Sumitomo Mitsui Financial Group (SMFG). The Bank reported net income for the six months ended June 30, 2013 of $3.5 million compared to $3.2 million for the same period in 2012. Increased earning assets and a reduction in non-interest expense resulted in favorable year over year earnings performance.
“We sincerely thank our customers for giving us an opportunity to serve them for over 50 years and our staff for their dedication and valued service.”
The Bank continued to maintain its strategic focus on loan growth in 2013. As of June 30, 2013, total loans were $1.36 billion, a $31.4 million or 2.4% increase over year end 2012 total loans of $1.33 billion. Commercial and Industrial loans totaled $802.3 million at June 30, 2013, an increase of $35.2 million over year end 2012, and represent 59.0% of the overall gross loan portfolio. Real Estate loans totaled $533.3 million at June 30, 2013, a decrease of $1.8 million over year end 2012, and represent 39.2% of the overall loan portfolio.
Credit quality remained sound through the first six months of 2013. Credit quality is reflected in the percentage of non-accrual loans to total loans at 0.75% as of June 30, 2013. The allowance for credit loss ratio remains satisfactory at 1.64% as of June 30, 2013.
Capital remained strong as evidenced by Tier 1 and Total risk-based capital ratios of 15.71% and 16.96%, respectively; both ratios exceed the minimum requirements of a well-capitalized institution of 6% and 10%, respectively.
Message from Naresh Sheth, President & COO
Naresh Sheth, President and Chief Operating Officer, commented, "We as a management team are encouraged that despite the extremely competitive lending market, in conjunction with subdued loan demand, the Bank achieved modest loan growth in the first half of 2013. The Bank remains committed to its strategic initiatives of organic and non-organic growth. Our continued sound credit quality and strong financial strength could be accomplished only because of our experienced senior management team, a core of experienced bankers and our dedicated personnel. This has allowed our Bank to maintain strong banking relationships with existing as well as many new customers. We continue our dedication to supporting the traditional service values of a financially strong and stable business bank by providing a full array of excellent products and services in a timely, flexible and responsive manner.
"We sincerely thank our customers for giving us an opportunity to serve them for over 50 years and our staff for their dedication and valued service."
Manufacturers Bank has been operating mainly in Southern California, consistently delivering tailored financial solutions that enhance the economic well-being of its middle market customers. Bauer Financial Inc., an independent bank rating company, has awarded its highest depository rating, Superior 5 Star, to Manufacturers Bank.
Manufacturers Bank is headquartered in Los Angeles and operates from branch offices in Downtown Los Angeles, Little Tokyo, Beverly Hills, Encino, Warner Center, Glendale, San Jose, City of Industry, Torrance, Newport Beach and Ontario.
Member FDIC and SBA Preferred National Lender
Equal Opportunity Lender
All statements in this release, except for historical facts, should be considered forward looking, including statements about the Bank’s plans, goals, and future expectations for growth. Such statements are subject to changes in the economic, legal and regulatory environment, changes in product delivery and technology that may affect the Bank’s operations and continued evolution in the financial services industry.