Manufacturers Bank Reports 2018 Year-End Earnings
Manufacturers Bank (the Bank) is a California commercial bank with total assets of $2.8 billion as of December 31, 2018.
Manufacturers Bank (the Bank) is a California commercial bank with total
assets of $2.8 billion as of December 31, 2018. On January 1, 2019,
Sumitomo Mitsui Banking Corporation (SMBC) established a wholly owned
bank holding company in the United States, SMBC Americas Holdings, Inc.
(SMBCAH). As a result of this restructuring, Manufacturers Bank is now a
wholly owned subsidiary of SMBCAH. The Bank will be referred to as “A
Member of SMBC Group.” The Bank reported record net income for the year
ended December 31, 2018, of $24.5 million compared to $10.0 million in
2017, which was negatively impacted by the 2017 Tax Reform Bill Act
adjustment.
Despite the highly competitive lending market, the Bank remained
steadfast in its goal of organic growth. Total loans were $1.9 billion
and total deposits were $2.3 billion at December 31, 2018.
Credit quality was outstanding throughout 2018. Credit quality is
reflected in the percentage of non-accrual loans to total loans of 0.10%
as of December 31, 2018. The allowance for credit loss ratio remains
satisfactory at 1.77% as of December 31, 2018.
Capital remained strong as evidenced by Tier 1 and Total risk-based
capital ratios of 12.96% and 14.21%, 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 with,
“Mr. Kusakabe, Chairman & CEO, and I both wish to announce, on January
1, 2019 Sumitomo Mitsui Banking Corporation (SMBC) established a wholly
owned bank holding company in the United States, SMBC Americas Holdings,
Inc. (SMBCAH). As a result of this restructuring, Manufacturers Bank is
now a wholly owned subsidiary of SMBCAH. The Bank will be referred to as
“A Member of SMBC Group.” Please visit our corporate website
under our Earnings page to view more with the Press Release from SMBC.
We are proud of building strong relationships with our customers. Our
Bank is pleased that we continue to meet expectations with a solid
customer base.
Manufacturers Bank is well positioned to offer tailored financial
solutions to professionals 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 look forward to establishing and maintaining one-on-one relationships
with each and every customer and serving you in 2019. The Bank is
focusing on new opportunities with our Beverly Hills office where we
will be expanding our services and relocating minutes away from our
existing location. More information to follow as we get closer to
the move.
Mr. Kusakabe, Chairman & CEO, and I sincerely thank our customers for 57
years of business and loyalty, and we thank our staff for their
dedication and valued service.”
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 Beverly Hills, Brea, Encino, Glendale, Little Tokyo,
Newport Beach, San Jose, Torrance and Warner Center.
Member FDIC and SBA Preferred National Lender
Equal Opportunity Lender
Equal 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.
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