Manufacturers Bank Reports First Half 2016 Earnings

LOS ANGELES--(BUSINESS WIRE)-- 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, 2016 of $6.6 million compared to $7.1 million for the same period in 2015, which included a nonrecurring gain on sale of other assets of $0.7 million, after tax. Excluding this nonrecurring item, net income for the six months ended June 30, 2016, increased $0.2 million over the same period of 2015.

The Bank continued to be focused on loan growth in 2016. As a result of the Bank’s deliberate strategic initiative to reposition the loan portfolio to a customer profile with higher profitability, total loans were $1.9 billion at June 30, 2016, the same level as year-end 2015. However, management is projecting strong loan growth in the second half of the year.

Credit quality remained sound through the first six months of 2016. Credit quality is reflected in the percentage of non-accrual loans to total loans at 0.08% as of June 30, 2016. The allowance for credit losses to total outstanding loans ratio remains satisfactory at 1.71% as of June 30, 2016.

Capital remained strong as evidenced by Tier 1 and Total risk-based capital ratios of 12.59% and 13.84%, 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

I am proud to report that the Bank’s sound earnings performance for the first half of 2016 remains strong and growth oriented. We maintained the total loans level of year-end 2015 despite challenging market conditions and the execution of the portfolio repositioning; the Bank’s asset quality is stellar.

The U.S. economy is the most stable and resilient in the world, and improving trends suggest that this situation will continue. Positive economic signs include strong U.S. job and consumer spending growth, as well as improving business sentiment. Further, the mid-year jobs data far exceeded expectations with 287,000 nonfarm jobs created, well above the estimated 180,000. This is the largest increase since October 2015. Consumer spending constitutes roughly 70 percent of the domestic economy, and consumers seem willing and able to spend. Home building is steady, home sales are increasing, and retail sales are rising.

With these facts and statistics as a backdrop, I wish to thank our customers for their continued support and loyalty. We very much appreciate and value your continued confidence in our ability to deliver world-class products and services. Everyone at Manufacturers Bank is dedicated to supporting you because our key objective is, and will remain, to help drive the growth and prosperity of your business.

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.

Member FDIC and SBA Preferred National LenderEqual Opportunity LenderEqual Housing 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.

For additional information please contact: Cindy Rude, SVP, Marketing & Product Development Manager, 213-489-6353 or Karen Abajian, EVP, Chief Financial Officer, 213-489-6478.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160824005010/en/

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

Source: Manufacturers Bank

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