2014

Greater Sacramento Bancorp Reports 1st Quarter Net Income Up 14% from 2013

SACRAMENTO, Calif., April 14, 2014 /PRNewswire/ -- For the First Quarter 2014 ended March 31, Greater Sacramento Bancorp (GSB) (OTC: GSCB.OB), parent company of Bank of Sacramento (BOS), reported Net Income of $626,000 ($.23 per share diluted). This represented a 14% increase over the $550,000 ($.21 per share diluted) reported for the First Quarter 2013.

GSB continued to demonstrate improving "core earnings" as Net Interest Income for the First Quarter 2014 of $3,660,000 was 9% greater than the $3,373,000 earned during the First Quarter 2013. Net Interest Income is the purest form of "core earnings" for a community bank. The year to year First Quarter increase in Net Interest Income reflects Bank of Sacramento's continuing loan growth.

First Quarter 2014 Net Income was down 21% from the Fourth Quarter 2013 figure of $790,000. The majority of the $164,000 reduction was caused by the State of California's reversals of certain tax credits previously allowed on the interest earned on loans which the Bank made between 2009 and 2012 to borrowers residing in Enterprise Zones. The reinterpretation of their rules by the State is estimated to result in an approximate reduction of GSB's 2014 Net Income of $300,000.  In anticipation of this State action we are accruing $75,000 quarterly which commenced with this first quarter.

Non-Interest Income for First Quarter 2014 was $194,000 down by 69% from the First Quarter 2013 figure of $624,000.  The 2013 income was enhanced by $470,000 as a result of a gain on the sale of securities. There were no securities sold in First Quarter 2014.

Non-Interest Expense of $2,922,000 for the First Quarter 2014 represented a 5% decrease from the like period of 2013 ($3,067,000). Provision and OREO expense for First Quarter 2014 was $35,000 down 85% from First Quarter 2013's figure of $229,000 when the Bank experienced an expense of $184,000 associated with the sale of an OREO property.

Net Interest Margin which has been a challenge for GSB and for the entire industry showed a slight improvement in the First Quarter 2014. For the First Quarter 2014 Net Interest Margin was 3.56% compared to 3.46 % in the First Quarter 2013 and 3.55% for the full year 2013.

Regarding GSB's First Quarter 2014 performance CEO and Chairman, William J. Martin, commented, "We are experiencing continued loan growth as a result of slow but steady improvement in the local economy and, more importantly, because of our very active marketing programs.  In fact at the end of First Quarter 2014 our Total Loans Outstanding reached an all-time high of $274.6 million. This loan growth has resulted in improved core earnings. As our loans increase we remain vigilant in maintaining very high credit quality in our loan portfolio."

GSB's Net Income over the past five quarters follows:


3/31/14

12/31/13

9/30/13

6/30/13

3/31/13

Net Income

$626,000

$790,000

$710,000

$886,000

$550,000







$ Per Share Diluted

$.23

$.30

$.27

$.33

$.21

 

As of March 31, 2014 the Bank's Tier One Capital stood at $45,912,000 and GSB's Tier One Capital was $46,228,000.  The Leverage Capital Ratio for BOS and GSB were 9.87% and 9.94%, respectively.  By all regulatory measures the Bank and GSB are considered well capitalized.

Comparing balance sheets for the years ending March 31, 2014 and March 31, 2013, the following highlights are noted:

Total Loans

3/31/14

3/31/13

% Increase

$274,567,000

$269,261,000

2%


Total Deposits

3/31/14

3/31/13

% (Decrease)

$365,662,000

$381,874,000

(4%)


Total Assets

3/31/14

3/31/13

% Increase

$468,780,000

$464,268,000

1%

 

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 Condition

(IN THOUSANDS)

Unaudited














DOLLAR


PERCENT


3/31/2014


3/31/2013


 CHANGE


 CHANGE

ASSETS








     Cash and due from banks

$         8,536


$       11,362


$    (2,826)


-25%

     Federal funds sold

-


-


-


-

     Securities, available-for-sale and held-to-maturity

164,222


163,864


358


0%

     Loans








       Construction 

7,627


911


6,716


737%

       Commercial Real Estate 

220,566


230,198


(9,632)


-4%

       Commercial and Industrial 

44,259


36,326


7,933


22%

       Consumer

2,115


1,826


289


16%

         Total Loans outstanding

274,567


269,261


5,306


2%

          Less: Allowance for Loan Losses

3,996


4,148


(152)


-4%

     Loans, net

270,571


265,113


5,458


2%









     Bank premises and equipment, net

151


245


(94)


-38%

     FHLB, FRB and PCBB restricted stock

3,377


2,850


527


18%

     Other Real Estate Owned

2,622


3,109


(487)


-16%

     Bank Owned Life Insurance

10,985


10,640


345


3%

     Accrued interest and other assets

8,316


7,085


1,231


17%

TOTAL ASSETS

$     468,780


$     464,268


$      4,512


1%









LIABILITIES AND SHAREHOLDERS' EQUITY








LIABILITIES








    Deposits








       Noninterest bearing

$     119,861


$     109,549


$    10,312


9%

       NOW Accounts

23,572


15,729


7,843


50%

       Money Market and Savings

114,147


153,774


(39,627)


-26%

       Time Deposits

108,082


102,822


5,260


5%

         Total Deposits

365,662


381,874


(16,212)


-4%









    FHLB borrowings

54,000


34,000


20,000


59%

    Accrued interest and other liabilities

4,451


3,798


653


17%

    Junior subordinated debentures

8,248


8,248


-


0%

             TOTAL LIABILITIES

432,361


427,920


4,442


1%









SHAREHOLDERS' EQUITY








     Preferred convertible stock; Issued and outstanding, none in 2014 and 2013

-


-


-



     Common stock; Issued and outstanding, 2,610,687 in 2014 and 2013

22,551


22,551


-


0%

     Paid in Capital

602


409


193


47%

     Retained earnings

15,705


12,693


3,012


24%

     Accumulated other comprehensive income (loss), net of tax

(2,439)


695


(3,134)


N.A.

           TOTAL SHAREHOLDERS' EQUITY 

36,419


36,348


71


0%

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

$     468,780


$     464,268


$      4,512


1%









Book Value per common share

$         13.95


$         13.92


$        0.03


0%

Tier 1 Leverage ratio

9.94%


9.64%





Allowance for Loan Losses coverage ratio

1.46%


1.54%





Greater Sacramento Bancorp

 Consolidated Statement of Income

(IN THOUSANDS)

Unaudited








Results of Operation




Three Months Ending


PERCENT


3/31/2014


3/31/2013


 CHANGE

Interest Income






    Interest and fees on Loans

$     3,083


$     3,108


-1%

    Interest on Investments

975


692


41%

      Total Interest Income

4,058


3,800


7%







Interest Expense






    Interest on Deposits

295


365


-19%

    Interest on Borrowed Funds

103


62


66%

      Total Interest Expense

398


427


-7%







Net Interest Income

3,660


3,373


9%







Non-interest Income






    Service charges and other fees

194


154


26%

    Gain on the sale of securities

-


470


-100%

       Total Non-interest Income

194


624


-69%







Total Revenue

3,854


3,997


-4%







Non-interest Expense






    Salaries and employee benefits

1,810


1,879


-4%

    Occupancy expense

228


221


3%

    Furniture and equipment expense

148


143


3%

    Other Operating expense

736


824


-11%

       Total Non-interest Expense

2,922


3,067


-5%







Income from Operations

932


930


0%







Provision for possible loan losses

-


-


N/M

OREO Expense and Valuation Allowance

35


229


-85%

       Total Provision/OREO Expense

35


229


-85%







Income before taxes

897


701


28%

Income taxes

271


151


79%

NET INCOME 

$        626


$        550


14%







Earnings per share: basic 

$       0.24


$       0.21



Earnings per share: diluted

$       0.23


$       0.21



Net Interest Margin (tax equivalent)

3.56%


3.46%



Return on Average Assets

0.55%


0.50%



Return on Average Equity

6.58%


6.28%



SOURCE Bank of Sacramento



RELATED LINKS
http://www.bankofsacramento.com

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