Manufacturers Bank Reports First Half 2015 Earnings

LOS ANGELES--()--Manufacturers Bank (the Bank), a California commercial bank with total assets of over $2.5 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, 2015 of $7.1 million compared to $6.1 million for the same period in 2014. Increased earning assets resulted in favorable year over year earnings performance.

“We have reached this level of success as we are dedicated to fostering relationships with our customers and the community. Manufacturers Bank has been able to consistently deliver superior products. We are enthusiastic as we enter the third quarter.”

The Bank continued to maintain its strategic focus on loan growth in 2015. As of June 30, 2015, total loans were $1.8 billion, an $81.7 million or 4.73% increase over year end 2014 total loans of $1.7 billion. Commercial and Industrial loans totaled $1.1 billion at June 30, 2015, an increase of $93.4 million over year end 2014, and represent 59.52% of the overall gross loan portfolio. Real Estate loans totaled $708.9 million at June 30, 2015, a decrease of $13.7 million over year end 2014, and represent 39.20% of the overall loan portfolio.

Credit quality remained sound through the first six months of 2015. Credit quality is reflected in the percentage of non-accrual loans to total loans at 0.15% as of June 30, 2015. The allowance for credit loss ratio remains satisfactory at 1.59% as of June 30, 2015.

Capital remained strong as evidenced by Tier 1 and Total risk-based capital ratios of 13.36% and 14.62%, respectively; both ratios exceed the minimum requirements of a well-capitalized institution of 5.00% and 10.00%, respectively.

Message from Naresh Sheth, President & COO

Naresh Sheth, President and Chief Operating Officer, announced on June 5th, Mr. Masaya Inagaki was appointed the new Chairman and Chief Executive Officer for Manufacturers Bank. Mr. Inagaki brings a wealth of experience with 30 years in key divisions of SMBC including several overseas assignments in Hong Kong, Suzhou, and Shanghai. Most recently, Mr. Inagaki served as the General Manager at the SMBC Head Office for the Corporate Business Office. He is very much looking forward to meeting our customers and continuing with the same standards of excellence created by his predecessors here at Manufacturers Bank.

Please join us in welcoming Mr. Inagaki to Manufacturers Bank! We also take this opportunity to thank Mr. Mitsugu Serizawa for his strong leadership and guidance. His vision and commitment were critical to our success and growth during his tenure with Manufacturers Bank.

Naresh Sheth commented: "I am very pleased to report the Bank’s sound earnings performance for the first half of 2015. As a result of our efforts and collaborative teamwork, the Bank was able to enjoy continued growth in the first half of 2015. Along with the increase in earning assets, the Bank has maintained remarkable asset quality. Our Bank continues to enjoy strong capital and liquidity with a solid customer base.

"We have reached this level of success as we are dedicated to fostering relationships with our customers and the community. Manufacturers Bank has been able to consistently deliver superior products. We are enthusiastic as we enter the third quarter.

"I thank our valued customers for their continued support and assure you that we will continue to challenge ourselves to set the standard of excellence, to make a positive impact, and to earn your trust and respect every day, not only for what we achieve, but with the method in which we achieve it. We value your loyalty."

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, Torrance, Newport Beach and Brea.

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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.

Contacts

Manufacturers Bank
Cindy Rude, 213-489-6353
SVP Marketing & Product Development Manager
or
Karen Abajian, 213-489-6478
EVP, Chief Financial Officer

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