SEATTLE, July 31 /PRNewswire-FirstCall/ -- First Sound Bank
(OTC Bulletin Board: FSWA) today reported net income of $611 thousand for the
quarter ending June 30, 2008, compared to $382 thousand in the second quarter
of 2007. For the first six months of 2008, net income was $1.2 million,
compared to $673 thousand in the first six months of 2007 -- an increase of
78.3 percent.
First Sound Bank's assets at quarter-end stood at $266.5 million, up $11.5
million or 4.5 percent from $255.0 million at the end of the first quarter.
Second quarter loans, at $212.2 million, were up 1.1 percent from $209.9
million the previous quarter. Deposits rose 11.5 percent, from $183.2 million
to $204.2 million. Non-interest bearing deposits, which comprised 16 percent
of deposits, rose 8.0 percent -- from $30.1 million to $32.5 million.
First Sound Bank's net interest margin showed improvement over the
previous quarter, increasing from 4.84 to 5.53 percent. As anticipated in the
purchase of Puget Sound Leasing Company, Inc., the leasing company's higher-
yielding fixed-rate leases have been instrumental in improving the bank's net
interest margin.
Although First Sound Bank has experienced only minimal increases in
non-performing credits, it has -- in response to the current economic
environment -- raised its loan loss reserve to 1.39 percent of loans from a
reserve of 1.08 percent in the prior quarter.
First Sound Bank completed its fourth year of operations in July 2008 with
a continued strong capital base. GAAP capital stood at 14.8 percent, and Tier
1 capital at 11.78 percent, in the second quarter.
"Second quarter results are in line with our expectations in this
difficult economic environment, and we are pleased with both the success of
the integration of Puget Sound Leasing and the positive effects resulting from
our March 1, 2008 acquisition," said First Sound Bank Chairman and CEO Don
Hirtzel.
"We are particularly happy with the 11.5 percent increase in core deposits
during the second quarter," said First Sound Bank President and COO Steve
Shaughnessy. "The choice of our clients to move their deposits to First Sound
is a testimony to the faith they have in the bank," he added.
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 $266 million in assets, First Sound Bank and its dedicated
104-person staff serve clients from its downtown Seattle office and its
leasing company in Bellevue.
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.
About First Sound Bank
Seattle-based First Sound Bank offers 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, it is committed to delivering personalized service, convenient
access and competitive rates to support the needs of the business community.
The bank offers online banking at http://www.firstsoundbank.com plus an
expansive banking network in the western U.S., as well as ATM banking
throughout the country and abroad. On March 1, 2008, First Sound Bank
purchased a majority of the assets of Puget Sound Leasing Company, Inc. -- a
small-ticket, business-to-business leasing company with a prior 23-year
history -- and established Puget Sound Leasing as a division of First Sound
Bank.
SOURCE First Sound Bank