CHULA VISTA, Calif., Jan. 23, 2015 /PRNewswire/ — Vibra Bank (“VBBK”- OTCQB), today reported net earnings for the year ended December 31, 2014 of $931,000, or $1.26 per share, compared to a net loss of ($124,000), or ($0.17) per share for the year ended December 31, 2013. This represents a return on average shareholders’ equity and average assets of 6.8% and 0.6% respectively, for the twelve months ended December 31, 2014, compared to (0.9%) and (0.1%) respectively, for the prior year.

Earnings for the fourth quarter of 2014 totaled $600,000 compared to $44,000 for the same period in 2013. The fourth quarter earnings represent an annualized return on average shareholders’ equity and average assets of 17.2% and 1.7% respectively compared with 1.3% and 0.1% for the fourth quarter of 2013.

President and CEO, Frank Mercardante said, “The Bank’s performance for 2014 reflects solid improvements in both earnings and credit quality during the year. We are looking forward to further progress as we prepare for the pending merger with Pacific Commerce Bank.”

Review of Operations

Net interest income grew 7.5% to $5.8 million in 2014 from $5.4 million a year ago. Total Revenues, (net interest income plus noninterest income) grew 5.7% to $7.3 million in 2014 from $6.9 million in 2013. Noninterest income for 2014 remained relatively the same at $1.47 million compared to $1.48 million in 2013. Noninterest expenses decreased by (0.6%) to $6.56 million compared to $6.60 million in 2013, due largely to reductions in salaries & benefits and marketing expense. Also, noninterest expense for 2014 includes $0.1 million in merger related expenses. The net interest margin in 2014 decreased to 3.97% from 4.47% a year ago due largely to the significant increase in Federal Funds during the year. The Bank remains asset sensitive, meaning that net interest income is expected to increase in a rising interest rate environment.

The Bank’s efficiency ratio, which measures total revenue to total operating expense, improved to 90.2% in 2014 from 95.9% in 2013. In the fourth quarter of 2014, the efficiency ratio was 77.3% compared to 89.1% in the fourth quarter of 2013.

Balance Sheet Performance

After adjusting for the planned exit of two large relationships totaling $19.0 million in deposits and $11.5 million in loans, the Bank’s total deposits increased 8.3% to $125.2 million compared to a year ago. Noninterest bearing deposits grew a record 33.3% to $47.9 million from $35.9 million a year ago.

After adjusting for the same large relationships referenced above, total assets increased by 8.4% to $140.4 million at December 31, 2014, while total loans decreased (6.0%) to $89.1 million.

Credit quality improved during 2014. There were no nonperforming loans as of December 31, 2014, compared to $299 thousand, or 0.20% of total assets a year ago. “Credit quality has remained strong, reflecting sound underwriting and a diversified portfolio,” Mercardante noted. The allowance for loan and lease losses represented 1.51% of total loans as of December 31, 2014, compared to 1.54% of total loans a year ago.

Shareholders’ equity increased by 7.9% to $14.5 million at year-end, compared to $13.4 million at the end of 2013. Book value per share was $19.61 at December 31, 2014, compared to $18.18 a year ago. Vibra Bank remains “Well-Capitalized” as of December 31, 2014 with all ratios exceeding the minimum regulatory levels for that designation. As of December 31, 2014, the Bank’s Tier 1 Leverage ratio was 9.75%, the Tier 1 Risk Based ratio was 19.16% and the Total Risk Based ratio was 20.42%, compared with regulatory minimums of 5%, 6% and 10%, respectively.

Merger Update

In late October, Vibra Bank announced that it had entered into a merger agreement with Los Angeles based Pacific Commerce Bank (“PFCI”). Mercardante, who took the helm of Vibra Bank last February, will become CEO of the merged bank. The Federal Reserve Bank of San Francisco approved the merger earlier this month. Approval by the Department of Business Oversight is pending and the shareholder meetings of both banks are scheduled for February 23, 2015 to approve the transaction. The transaction is expected to close early in the second quarter of 2015.

Speaking of the merger Mercardante said,”The combination of the two banks will provide a solid opportunity for the shareholders and employees of both banks to become part of a growing organization with a keen focus on creating shareholder value in the future. I am confident this transaction will benefit the customers of the combined bank with an expanded array of deposit and treasury management products and services, as well as the ability to offer larger loans to our business clients. The combined footprint of the two banks will also enable us to more effectively compete for business in the greater Southern California marketplace.”

About Vibra Bank
Vibra Bank is a full-service community bank offering wide variety of deposit and loan services to meet their customers’ needs. Deposit offerings include, among others, state-of-the-art online banking and remote deposit capture. As an SBA Preferred Lender, Vibra’s lending is focused on loans to small businesses and professionals, commercial real estate, and high net-worth individuals. Please visit our website at www.vibrabank.com for more information, or call us at (619) 422-5300. SE HABLA ESPAÑOL

Forward-Looking Statements
Statements made in this release, other than those concerning historical financial information, may be considered forward-looking statements, which speak only as of the date of this release and are based on current expectations and involve a number of assumptions. These include statements as to the anticipated benefits of the merger, including future financial and operating results, cost savings and enhanced revenues that may be realized from the merger as well as other statements of expectations regarding the merger and any other statements regarding future results or expectations. Each of PFCI and VBBK intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and is including this statement for purposes of these safe harbor provisions. The companies’ respective abilities to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material effect on the operations and future prospects of each of PFCI and VBBK and the resulting company, include but are not limited to: (1) the businesses of PFCI and/or VBBK may not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) expected revenue synergies and cost savings from the merger may not be fully realized or realized within the expected time frame; (3) revenues following the merger may be lower than expected; (4) customer and employee relationships and business operations may be disrupted by the merger; (5) the ability to obtain required regulatory and shareholder approvals, and the ability to complete the merger on the expected timeframe may be more difficult, time-consuming or costly than expected; (6) changes in interest rates, general economic conditions, legislative/regulatory changes, monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve; the quality and composition of the loan and securities portfolios; demand for loan products; deposit flows; competition; demand for financial services in the companies’ respective market areas; their implementation of new technologies; their ability to develop and maintain secure and reliable electronic systems; and accounting principles, policies, and guidelines, and (7) other risk factors detailed from time to time. PFCI and VBBK undertake no obligation to update or clarify these forward-looking statements, whether as a result of new information, future events or otherwise.

FINANCIALS FOLLOW

Media Contact:
Frank J. Mercardante
(619) 422-5300
fmercardante@vibrabank.com

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SOURCE Vibra Bank