SACRAMENTO, Calif., Oct. 20, 2014 /PRNewswire/ -- GREATER SACRAMENTO BANCORP (OTC: GSCB.OB) -- For the Third Quarter 2014 ended September 30, 2014, Greater Sacramento Bancorp (GSB), parent company of Bank of Sacramento (BOS), reported Net Income of $955,000 ($.36 per share diluted) which represented a 35% increase from the $710,000 ($.27 per share diluted) reported for the Third Quarter 2013. For the comparable nine month periods Net Income for the YTD September 30, 2014 was $2,206,000 ($.83 per share diluted) up 3% from the YTD September 30, 2013 Net Income figure of $2,146,000 ($.80 per share diluted).
The dramatic increase in Third Quarter 2014 Net Income was principally the result of a reversal of $400,000 (pre-tax) from the loan loss reserve. This reflects the vastly improved quality of the BOS loan portfolio which provided BOS the opportunity to reduce the loan loss reserve.
On a pre-tax basis "core" Income before the loan loss reserve reversal was $1,124,000 which was a 19% ($179,000) increase over the Third Quarter 2013 figure of $945,000. This core improvement was primarily due to a reduction of Non-Interest Expense for the Third Quarter 2014 of 7% ($200,000) compared to Third Quarter 2013.
Regarding GSB's Third Quarter and nine month 2014 performance CEO and Chairman, William J. Martin, commented: "We are extremely pleased that our long continuing and successful efforts to improve our loan portfolio quality has allowed us to recapture past loan loss reserve expenses. Likewise, on a core basis we are equally pleased with our reduction in Non-Interest Expenses which has enhanced our core Net Income despite the continuation of both a slow economy and low interest rates."
Martin continued: "In light of the recent announcement of our merger with AmericanWest Bank, we are particularly proud to be delivering both a quality portfolio and an improving earnings picture."
GSB's Net Income over the past five quarters follows:
| 9/30/14 | 6/30/14 | 3/31/14 | 12/31/13 | 9/30/13 |
Net Income | $955,000 | $625,000 | $626,000 | $790,000 | $710,000 |
$ Per Share Diluted | $.36 | $.23 | $.23 | $.30 | $.27 |
As of September 30, 2014 BOS's Tier One Capital stood at $48,055,000 and GSB's Tier One Capital was $48,464,000. The Leverage Capital Ratio for BOS and GSB were 10.24% and 10.33%, respectively. By all regulatory measures the Bank and GSB are considered well capitalized.
Comparing balance sheets for the period ending September 30, 2014 and September 30, 2013, the following highlights are noted:
Total Loans |
9/30/14 | 9/30/13 | % Increase |
$273,279,000 | $271,308,000 | 1% |
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Total Deposits |
9/30/14 | 9/30/13 | % Increase |
$409,751,000 | $377,373,000 | 9% |
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Total Assets |
9/30/14 | 9/30/13 | % Increase |
$480,874,000 | $459,484,000 | 5% |
A copy of the company's information and disclosure statement pursuant to Securities and Exchange Commission Rule 15c2-11 can be found on the home page of the company's website at www.bankofsacramento.com under the title Investor Relations.
Contact: William J. Martin, CEO and Chairman, 916-648-2100
This report may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to fluctuations in interest rates, inflation, government regulations and general economic conditions, and competition within the business areas in which the Company is conducting its operations, including the real estate market in California and other factors beyond the Company's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Greater Sacramento Bancorp |
Consolidated Statement of Income |
(IN THOUSANDS) |
Unaudited |
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| Results of Operation |
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| Results of Operation |
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| Three Months Ending | PERCENT |
| Year to Date | PERCENT |
| 9/30/2014 | 9/30/2013 | CHANGE |
| 9/30/2014 | 9/30/2013 | CHANGE |
Interest Income |
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Interest and fees on Loans | $ 3,253 | $ 3,255 | 0% |
| $ 9,524 | $ 9,584 | -1% |
Interest on Investments | 953 | 909 | 5% |
| 2,915 | 2,519 | 16% |
Total Interest Income | 4,206 | 4,164 | 1% |
| 12,439 | 12,103 | 3% |
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Interest Expense |
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Interest on Deposits | 327 | 316 | 3% |
| 917 | 1,013 | -9% |
Interest on Borrowed Funds | 100 | 74 | 35% |
| 311 | 213 | 46% |
Total Interest Expense | 427 | 390 | 9% |
| 1,228 | 1,226 | 0% |
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Net Interest Income | 3,779 | 3,774 | 0% |
| 11,211 | 10,877 | 3% |
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Non-interest Income |
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Service charges and other fees | 170 | 190 | -11% |
| 539 | 517 | 4% |
Gain on the sale of securities | - | 6 | -100% |
| - | 625 | -100% |
Total Non-interest Income | 170 | 196 | -13% |
| 539 | 1,142 | -53% |
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Total Revenue | 3,949 | 3,970 | -1% |
| 11,750 | 12,019 | -2% |
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Non-interest Expense |
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Salaries and employee benefits | 1,739 | 1,748 | -1% |
| 5,383 | 5,370 | 0% |
Occupancy expense | 227 | 205 | 11% |
| 687 | 664 | 3% |
Furniture and equipment expense | 134 | 151 | -11% |
| 413 | 439 | -6% |
Other Operating expense | 725 | 921 | -21% |
| 2,221 | 2,468 | -10% |
Total Non-interest Expense | 2,825 | 3,025 | -7% |
| 8,704 | 8,941 | -3% |
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Income from Operations | 1,124 | 945 | 19% |
| 3,046 | 3,078 | -1% |
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Provision for possible loan losses | (400) | - |
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| (400) | - | N.A. |
OREO Expense and Valuation Allowance | 92 | 7 | 1214% |
| 230 | 255 | -10% |
Total Provision/OREO Expense | (308) | 7 | -4500% |
| (170) | 255 | -167% |
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Income before taxes | 1,432 | 938 | 53% |
| 3,216 | 2,823 | 14% |
Income taxes | 477 | 228 | 109% |
| 1,010 | 677 | 49% |
NET INCOME | $ 955 | $ 710 | 35% |
| $2,206 | $2,146 | 3% |
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Earnings per share: basic | $ 0.36 | $ 0.27 |
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| $ 0.84 | $ 0.82 |
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Earnings per share: diluted | $ 0.36 | $ 0.27 |
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| $ 0.83 | $ 0.80 |
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Net Interest Margin (tax equivalent) | 3.57% | 3.58% |
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| 3.57% | 3.54% |
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Return on Average Assets | 0.81% | 0.60% |
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| 0.63% | 0.62% |
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Return on Average Equity | 9.48% | 7.60% |
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| 7.51% | 7.92% |
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Greater Sacramento Bancorp |
Consolidated Statement of Condition |
(IN THOUSANDS) |
Unaudited |
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| DOLLAR | PERCENT |
| 9/30/2014 | 9/30/2013 | CHANGE | CHANGE |
ASSETS |
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Cash and due from banks | $ 25,690 | $ 6,874 | $ 18,816 | 274% |
Federal funds sold | - | - | - | - |
Securities, available-for-sale and held-to-maturity; net | 163,890 | 164,960 | (1,070) | -1% |
Mark-to-Market | (2,994) | (5,269) | 2,275 | -43% |
Securities, available-for-sale and held-to-maturity; net | 160,896 | 159,691 | 1,205 | 1% |
Loans |
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Construction | 12,741 | 4,374 | 8,367 | 191% |
Commercial Real Estate | 211,219 | 226,060 | (14,841) | -7% |
Commercial and Industrial | 46,743 | 38,489 | 8,254 | 21% |
Consumer | 2,576 | 2,385 | 191 | 8% |
Total Loans outstanding | 273,279 | 271,308 | 1,971 | 1% |
Less: Allowance for Loan Losses | 3,717 | 4,150 | (433) | -10% |
Loans; net | 269,562 | 267,158 | 2,404 | 1% |
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Bank premises and equipment, net | 172 | 193 | (21) | -11% |
FHLB, FRB and PCBB restricted stock | 3,295 | 2,909 | 386 | 13% |
Other Real Estate Owned | 2,462 | 2,845 | (383) | -13% |
Bank Owned Life Insurance | 11,155 | 10,821 | 334 | 3% |
Accrued interest and other assets | 7,642 | 8,993 | (1,351) | -15% |
TOTAL ASSETS | $480,874 | $459,484 | $21,390 | 5% |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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LIABILITIES |
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Deposits |
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Noninterest bearing | $ 135,002 | $ 114,823 | $ 20,179 | 18% |
NOW Accounts | 32,598 | 19,890 | 12,708 | 64% |
Contractor Retention Money Market Accounts | 37,187 | 47,499 | (10,312) | -22% |
Money Market and Savings | 93,108 | 91,569 | 1,539 | 2% |
Time Deposits | 111,856 | 103,592 | 8,264 | 8% |
Total Deposits | 409,751 | 377,373 | 32,378 | 9% |
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FHLB borrowings | 20,000 | 35,000 | (15,000) | -43% |
Accrued interest and other liabilities | 4,030 | 4,573 | (543) | -12% |
Junior subordinated debentures | 8,248 | 8,248 | - | 0% |
TOTAL LIABILITIES | 442,029 | 425,194 | 16,836 | 4% |
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SHAREHOLDERS' EQUITY |
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Preferred convertible stock; Issued and outstanding, |
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none in 2014 and 2013 | - | - | - |
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Common stock; Issued and outstanding, |
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2,617,340 in 2014 and 2,610,687 in 2013 | 22,600 | 22,551 | 49 | 0% |
Paid in Capital | 697 | 506 | 191 | 38% |
Retained earnings | 17,285 | 14,289 | 2,996 | 21% |
Accumulated other comprehensive income (loss), net of tax | (1,737) | (3,056) | 1,319 | -43% |
TOTAL SHAREHOLDERS' EQUITY | 38,845 | 34,290 | 4,555 | 13% |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY | $480,874 | $459,484 | $21,390 | 5% |
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Book Value per common share | $ 14.84 | $ 13.13 | $ 1.71 | 13% |
Tier 1 Leverage ratio | 10.33% | 9.63% |
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Allowance for Loan Losses coverage ratio | 1.36% | 1.53% |
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To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/greater-sacramento-bancorp-reports-2014-third-quarter-net-income-up-35-over-2013-third-quarter-625737283.html
SOURCE Greater Sacramento Bancorp