2014

Greater Sacramento Bancorp Reports 2012 Net Up 30% from 2011

SACRAMENTO, Calif., Feb. 4, 2013 /PRNewswire/ -- For the full year of 2012 Greater Sacramento Bancorp (GSB) (OTC: GSCB.OB), parent company of Bank of Sacramento (BOS), reported Net Income of $3,051,000 ($1.15 per share diluted) compared to Net Income of $2,338,000 ($.89 per share diluted) for the full year of 2011 representing a 30% increase.

Net Income for the Fourth Quarter of 2012 of $1,072,000 ($.40 per share diluted) was up 78% from Fourth Quarter 2011's figure of $601,000 ($.23 per share diluted).  Net Income for the Fourth Quarter of 2012 was benefited by two events: 1) The reimbursement of approximately $400,000 in expenses previously incurred during the resolution of a prior year's problem loan; and 2) During the first nine months of 2012 BOS had been writing down our OREO in anticipation of year end appraisals showing diminished values which would require a write down.  In actuality the appraisals showed that OREO values remained equal to 2011 values; therefore, BOS was able to reverse about $400,000 of OREO Valuation expenses.

The improvement in Net Income for the full twelve months was the result of a combination of improved loan quality and an increase in loan volume. Total expenses related to additions to the loan loss reserve and OREO expense and valuation allowance was $93,000 for 2012 compared to $1,895,000 for 2011.  Also of critical importance was a 14% increase in loan volume as total loans outstanding at December 31, 2012 stood at $258,915,000 compared to $227,667,000 at December 31, 2011.

Non-Interest Income for 2012 at $2,660,000 was 20% greater than the $2,214,000 recorded in 2011 principally due to the aforementioned problem loan expenses that were recovered. Non-Interest expense for 2012 was up slightly (3%) from 2011;  $11,519,000 in 2012 compared to $11,160,000 in 2011.

Net Interest Income for 2012 was $13,211,000 which was a decrease of 8% from the 2011 figure of $14,283,000. Reduced loan volumes in the first half of 2012 along with low interest rates were the cause of this decrease.  However, for the Fourth Quarter 2012 Net Interest Income of $3,616,000 represented a 6% increase over the Fourth Quarter 2011 figure of $3,413,000. This improvement was the result of the increased loan volume in both the Third and Fourth Quarter of 2012 and is a harbinger of improved core earnings going forward.

Because of extremely low interest rates Net Interest Margin (NIM) remains a challenge for the entire banking industry. For 2012 BOS's NIM was 3.50% compared to 4.06% for 2011.  Improvement, however, was evidenced in the Fourth Quarter 2012 which showed a NIM of 3.60% compared to 3.37% for the Third Quarter 2012.

Regarding GSB's performance for 2012, CEO and Chairman William J. Martin commented:  "Management and the Board are extremely pleased with the success we have had in resolving problem loans and improving overall asset quality which has obviously greatly contributed to an improved bottom line. We also find most encouraging that loan demand is showing life as our local economy slowly improves. During the Third Quarter 2012 we added $13,445,000 to our loan outstandings and in the Fourth Quarter loan outstandings grew by $24,702,000.  By continuing an intense marketing campaign we are optimistic that loan growth will continue into 2013."

Regarding asset quality, two key indicators for BOS over the past five quarters witness the continuation of improving asset quality:

  • Ratio of Non-Performing Loans plus OREO to Total Assets:

12-31-12

9-30-12

6-30-12

3-31-12

12-31-11

.82%

1.06%

1.15%

.89%

.93%

  • Ratio of Non-Performing Assets plus Trouble Debt Restructures to Equity plus Loan Loss Reserve ("Texas Ratio"):

12-31-12

9-30-12

6-30-12

3-31-12

12-31-11

8.34%

10.58%

11.21%

8.26%

8.62%

GSB's profit over the past five quarters follows:

  • Net Income and Dollar Per Share Diluted:

12-31-12

9-30-12

6-30-12

3-31-12

12-31-11

Net Income

$1,072,000

$576,000

$675,000

$728,000

$601,000







$ Per Share Diluted

$.40

$.22

$.25

$.28

$.23

As of December 31, 2012 the Bank's Tier One Capital stood at $41,908,000 and GSB's Tier One Capital was $42,673,000.  The Leverage Capital Ratio for BOS and GSB were 9.30% and 9.47%, respectively.  By all regulatory measures the Bank and GSB are considered well capitalized.

Comparing balance sheets for the years ending December 31, 2012 and December 31, 2011, the following highlights are noted:

Total Deposits

12-31-12

12-31-11

% Increase

$385,887,000

$343,062,000

12%


Total Loans

12-31-12

12-31-11

% Increase

$258,915,000

$227,667,000

14%


Total Assets

12-31-12

12-31-11

% Increase

$445,161,000

$407,621,000

9%

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


12/31/2012

12/31/2011

 CHANGE

 CHANGE

ASSETS





     Cash and due from banks

$         8,716

$       10,530

$     (1,814)

-17%

     Federal funds sold

-

-

-

-

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

157,731

148,591

9,140

6%

     Loans





       Construction 

2,584

4,638

(2,054)

-44%

       Commercial Real Estate 

212,373

185,323

27,050

15%

       Commercial and Industrial 

41,720

35,427

6,293

18%

       Consumer

2,238

2,279

(41)

-2%

         Total Loans outstanding

258,915

227,667

31,248

14%

          Less: Allowance for Loan Losses

4,142

4,331

(189)

-4%

     Loans, net

254,773

223,336

31,437

14%






     Bank premises and equipment, net

277

444

(167)

-38%

     FHLB and FRB restricted stock

2,747

2,505

242

10%

     Other Real Estate Owned

3,322

3,260

62

2%

     Bank Owned Life Insurance

10,558

10,183

375

4%

     Accrued interest and other assets

7,037

8,772

(1,735)

-20%

TOTAL ASSETS

$445,161

$407,621

$37,540

9%






LIABILITIES AND SHAREHOLDERS' EQUITY





LIABILITIES





    Deposits





       Noninterest bearing

$     112,799

$       86,712

$    26,087

30%

       NOW Accounts

16,003

27,190

(11,187)

-41%

       Money Market and Savings

149,287

98,346

50,941

52%

       Time Deposits

107,798

130,814

(23,016)

-18%

         Total Deposits

385,887

343,062

42,825

12%






    FHLB borrowings

10,000

20,000

(10,000)

-50%

    Accrued interest and other liabilities

4,216

3,883

333

9%

    Junior subordinated debentures

8,248

8,248

-

0%

             TOTAL LIABILITIES

408,351

375,193

33,159

9%






SHAREHOLDERS' EQUITY





         Preferred convertible stock; Issued and outstanding, none in 2012 and 2011

-

-

-


        Common stock; Issued and outstanding,  2,602,607 in 2012 and 2,596,056 in 2011

22,531

22,507

24

0%

     Paid in Capital

356

237

119

50%

     Retained earnings

12,143

9,092

3,051

34%

     Accumulated other comprehensive income (loss), net of tax

1,780

592

1,188

201%

           TOTAL SHAREHOLDERS' EQUITY 

36,810

32,428

4,382

14%

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

$445,161

$407,621

$37,540

9%






Book Value per common share

$         14.14

$         12.49

$1.65

13%

Tier 1 Capital Leverage ratio

9.47%

9.58%



Allowance for Loan Losses coverage ratio

1.60%

1.90%



 

Greater Sacramento Bancorp

 Consolidated Statement of Income

(IN THOUSANDS)

Unaudited










Results of Operation



Results of Operation



Three Months Ending

PERCENT


Year to Date

PERCENT


12/31/2012

12/31/2011

 CHANGE


12/31/2012

12/31/2011

 CHANGE

Interest Income








    Interest and fees on Loans

$      3,299

$      3,133

5%


$    12,049

$    13,179

-9%

    Interest on Investments

810

770

5%


3,087

3,137

-2%

      Total Interest Income

4,109

3,903

5%


15,136

16,316

-7%









Interest Expense








    Interest on Deposits

406

429

-5%


1,633

1,786

-9%

    Interest on Borrowed Funds

87

61

43%


292

247

18%

      Total Interest Expense

493

490

1%


1,925

2,033

-5%









Net Interest Income

3,616

3,413

6%


13,211

14,283

-8%









Non-interest Income








    Service charges and other fees

522

177

195%


1,599

1,090

47%

    Gain on the sale of securities

124

71

75%


1,061

1,124

-6%

       Total Non-interest Income

646

248

160%


2,660

2,214

20%









Total Revenue

4,262

3,661

16%


15,871

16,497

-4%









Non-interest Expense








    Salaries and employee benefits

1,990

1,630

22%


6,873

6,403

7%

    Occupancy expense

224

279

-20%


942

1,111

-15%

    Furniture and equipment expense

155

147

5%


612

570

7%

    Other Operating expense

794

727

9%


3,092

3,076

1%

       Total Non-interest Expense

3,163

2,783

14%


11,519

11,160

3%









Income from Operations

1,099

878

25%


4,352

5,337

-18%









Provision for possible loan losses

-

-

N/M


120

1,095

-89%

OREO Expense and Valuation Allowance

(387)

58

-767%


(27)

800

-103%

       Total Provision/OREO Expense

(387)

58

-767%


93

1,895

-95%









Income before taxes

1,486

820

81%


4,259

3,442

24%

Income taxes

414

219

89%


1,208

1,104

9%

NET INCOME 

$  1,072

$     601

78%


$  3,051

$  2,338

30%









Earnings per share: basic 

$        0.41

$        0.23



$        1.17

$        0.90


Earnings per share: diluted

$        0.40

$        0.23



$        1.15

$        0.89


Net Interest Margin (tax equivalent)

3.60%

3.75%



3.50%

4.06%


Return on Average Assets

0.95%

0.58%



0.72%

0.60%


Return on Average Equity

12.33%

7.57%



9.17%

7.64%


 

SOURCE Greater Sacramento Bancorp



RELATED LINKS
http://www.bankofsacramento.com

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