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Manufacturers Bank (the Bank), a California commercial bank with total assets of $2.5 billion, is a wholly owned subsidiary of Sumitomo Mitsui Banking Corporation (SMBC)...view our first half earnings
Manufacturers Bank (the Bank), a California commercial bank with total assets of $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, 2018 of $12.0 million, an increase of $4.2 million, compared to $7.8 million for the same period in 2017. Due to the Federal Tax reform the Bank’s after tax earnings improved by $1.6 million.
The Bank’s year-to-date June 30, 2018 pretax income of $17.2 million increased by $3.7 million, or 27.3%, when compared to same period prior year. The strengthened earnings performance was a direct result of the Fed Fund rate increases. Credit quality remained sound through the first six months of 2018. Credit quality is reflected in the percentage of non-accrual loans to total loans at 0.41% as of June 30, 2018. The allowance for credit loss ratio remains satisfactory at 1.79% as of June 30, 2018.
Capital remained strong as evidenced by Tier 1 and Total risk-based capital ratios of 13.36% and 14.61%, respectively; both ratios exceed the minimum requirements of a well-capitalized institution of 8.00% and 10.00%, respectively.
Message from Naresh Sheth, President & COO
Naresh Sheth, President and Chief Operating Officer, commented “We are delighted with our financial results for the First Half of 2018. Beyond the favorable impact of the reduced effective tax rate, the Bank has been able to benefit, in this rising interest rate environment, from our well positioned asset sensitive balance sheet.
We remain a trusted long-term financial partner that provides extraordinary personalized service to professionals, individual customers and many local small businesses. All decisions are made locally by people who understand the unique financial needs of the business people and the communities we serve. We know that quick decision making, flexibility and responsiveness are important to our customers. We are enthusiastic as we enter the third quarter of 2018. As we move forward, our commitment to you is to provide premier products and the upmost service that will make you successful.
Mr. Kusakabe, Chairman & CEO, and I thank you for being our valued customers as we want your customer experience with MB to be financially successful. Our employees strive to accomplish one-on-one relationships with each and every customer. I thank our employees for their perseverance and solution oriented commitment to satisfy your business needs. We look forward to partnering with you in the second half of 2018.”
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 a depository rating, Excellent 4 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.
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.
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