Greater Sacramento Bancorp Reports 2nd Quarter Earnings Up 31% from 2nd Quarter 2012

SACRAMENTO, Calif., July 15, 2013 /PRNewswire/ -- GREATER SACRAMENTO BANCORP (OTC: GSCB.OB) -- For the Second Quarter 2013, ended 6/30/13, Greater Sacramento Bancorp (GSB), parent company of Bank of Sacramento (BOS) reported Net Income of $886,000 ($.33 per share diluted) representing a 31% increase over the $675,000 ($.25 per share diluted) reported in the Second Quarter 2012; it also represented a 61% increase over the $550,000 ($.21 per share diluted) reported for the First Quarter 2013.

For the first six months of 2013, GSB reported Net Income of $1,436,000 ($.54 per share diluted) up 2% from the $1,403,000 ($.53 per share diluted) reported for the first six months of 2012.

The improved Net Income for both the quarter and the six months was driven by our significant improvement in Net Interest Income, the core revenue generator for GSB.  Net Interest Income for the Second Quarter 2013 was $3,730,000 up 16% from the Second Quarter 2012 figure of $3,204,000. For the six months the 2013 Net Interest Income amounted to $7,103,000 up 11% over the six month 2012 figure of $6,424,000.  This improvement is the result of strong loan volume growth and improved yields in our securities portfolio.

Non-Interest Income for the 2013 Second Quarter at $322,000 was down 32% from the $472,000 reported for Second Quarter 2012. Likewise, the six month's year to year comparison was also down 32% from $1,396,000 at 6/30/12 to $946,000 for the six months ending 6/30/13.  The 2012 number benefited from one-time gains resulting from the recovery of prior problem loan related expenses.

Non-Interest Expense for both the comparative quarters and the comparative six month periods is up 7% from 2012 to 2013. While all other categories are flat or down, Salaries and Employee Benefits are up 14% as a result of an Executive Retirement Plan that was instituted in July 2012. For the first six months of 2013 Salary/Benefits were $3,622,000 compared to $3,188,000 during six months of 2012. For the second half of this year Salary/Benefit Expense should be in line with 2012's second half.

Net Interest Margin which has been under downward pressure because of the protracted period of low interest rates showed improvement in Second Quarter 2013. Net Interest Margin for the Second Quarter 2013 was 3.59% compared to 3.50% for Second Quarter 2012 and 3.46% for First Quarter 2013. This improvement was the result of our ability to employ our funds in higher yielding loans rather than securities as well as some improvement in the yield of our securities portfolio.

Regarding GSB's performance for Second Quarter 2013, CEO and Chairman, William J. Martin commented: "Management and the Board are most pleased with the income performance, the loan growth, and the loan quality of Bank of Sacramento. While our income performance in 2012 was primarily driven by improved loan quality, 2013 income has originated more from our traditional loan and deposit growth. Loans and deposits form the core of our revenues and improvement in that area is critical to our long term positive performance."

In looking at asset quality, two key indicators for Bank of Sacramento over the past five quarters witness the stability of our asset quality:

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

6-30-13

3/31/13

12-31-12

9-30-12

6-30-12

.66%

.67%

.90%

1.14%

1.24%

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

6-30-13

3/31/13

12-31-12

9-30-12

6-30-12

6.79%

6.52%

8.34%

10.58%

11.21%

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

  • Net Income and Dollar Per Share Diluted:

6-30-13

3/31/13

12-31-12

9-30-12

6-30-12

Net Income

 

$886,000

$550,000

$1,072,000

$576,000

$675,000

$ Per Share Diluted

$.33

$.21

$.40

$.22

$.25

 

As of June 30, 2013 the Bank's Tier One Capital stood at $43,441,000 and GSB's Tier One Capital was $44,118,000.  The Leverage Capital Ratio for BOS and GSB were 9.30% and 9.45%, respectively.  By all regulatory measures the Bank and GSB are considered well capitalized.

Comparing balance sheets for the quarters ending June 30, 2013 and June 30, 2012, the following highlights are noted:

Total Loans

6/30/13

6/30/12

% Increase

$267,627,000

$220,768,000

21%

 

Total Deposits

6/30/13

6/30/12

% Increase

$370,740,000

$360,275,000

3%

 

Total Assets

6/30/13

6/30/12

% Increase

$466,839,000

$411,117,000

14%

 

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


6/30/2013

6/30/2012

 CHANGE

 CHANGE

ASSETS





     Cash and due from banks

$         9,633

$         16,353

$         (6,720)

-41%

     Federal funds sold

-

-

-

-

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

167,910

154,224

13,686

9%

     Loans





       Construction 

1,484

4,614

(3,130)

-68%

       Commercial Real Estate 

227,958

178,540

49,418

28%

       Commercial and Industrial 

35,674

35,638

36

0%

       Consumer

2,511

1,976

535

27%

         Total Loans outstanding

267,627

220,768

46,859

21%

          Less: Allowance for Loan Losses

4,108

3,953

155

4%

     Loans, net

263,519

216,815

46,704

22%






     Bank premises and equipment, net

215

509

(294)

-58%

     FHLB, FRB and PCBB restricted stock

3,136

2,847

289

10%

     Other Real Estate Owned

3,094

3,032

62

2%

     Bank Owned Life Insurance

10,730

10,372

358

3%

     Accrued interest and other assets

8,602

6,965

1,637

24%

TOTAL ASSETS

$      466,839

$       411,117

$         55,722

14%






LIABILITIES AND SHAREHOLDERS' EQUITY





LIABILITIES





    Deposits





       Noninterest bearing

$      108,100

$         97,035

$         11,065

11%

       NOW Accounts

16,963

18,889

(1,926)

-10%

       Money Market and Savings

138,693

128,802

9,891

8%

       Time Deposits

106,984

115,549

(8,565)

-7%

         Total Deposits

370,740

360,275

10,465

3%






    FHLB borrowings

49,000

5,000

44,000

880%

    Accrued interest and other liabilities

4,617

3,169

1,448

46%

    Junior subordinated debentures

8,248

8,248

-

0%

             TOTAL LIABILITIES

432,605

376,692

55,914

15%






SHAREHOLDERS' EQUITY





     Preferred convertible stock; Issued and outstanding,





         none in 2013 and 2012

-

-

-


     Common stock; Issued and outstanding, 





         2,610,687 in 2013 and 2,600,645 in 2012

22,551

22,514

37

0%

     Paid in Capital

459

296

163

55%

     Retained earnings

13,579

10,495

3,084

29%

     Accumulated other comprehensive income (loss), net of tax

(2,355)

1,120

(3,475)

N.A.

           TOTAL SHAREHOLDERS' EQUITY 

34,234

34,425

(191)

-1%

TOTAL LIABILITIES & SHAREHOLDERS' EQUITY

$      466,839

$       411,117

$         55,722

14%






Book Value per common share

$           13.11

$           13.24

$            -0.12

-1%

Tier 1 Leverage ratio

9.45%

9.91%



Allowance for Loan Losses coverage ratio

1.53%

1.79%



 

Greater Sacramento Bancorp

 Consolidated Statement of Income

(IN THOUSANDS)

Unaudited










Results of Operation



Results of Operation



Three Months Ending

PERCENT


Year to Date

PERCENT


6/30/2013

6/30/2012

 CHANGE


6/30/2013

6/30/2012

 CHANGE

Interest Income








    Interest and fees on Loans

$        3,221

$       2,903

11%


$       6,329

$       5,824

9%

    Interest on Investments

918

765

20%


1,610

1,535

5%

      Total Interest Income

4,139

3,668

13%


7,939

7,359

8%









Interest Expense








    Interest on Deposits

332

390

-15%


697

792

-12%

    Interest on Borrowed Funds

77

74

4%


139

143

-3%

      Total Interest Expense

409

464

-12%


836

935

-11%









Net Interest Income

3,730

3,204

16%


7,103

6,424

11%









Non-interest Income








    Service charges and other fees

173

217

-20%


327

787

-58%

    Gain on the sale of securities

149

255

-42%


619

609

2%

       Total Non-interest Income

322

472

-32%


946

1,396

-32%









Total Revenue

4,052

3,676

10%


8,049

7,820

3%









Non-interest Expense








    Salaries and employee benefits

1,743

1,533

14%


3,622

3,188

14%

    Occupancy expense

238

235

1%


459

493

-7%

    Furniture and equipment expense

145

161

-10%


288

316

-9%

    Other Operating expense

723

730

-1%


1,547

1,545

0%

       Total Non-interest Expense

2,849

2,659

7%


5,916

5,542

7%









Income from Operations

1,203

1,017

18%


2,133

2,278

-6%









Provision for possible loan losses

-

-

N.A.


-

120

-100%

OREO Expense and Valuation Allowance

19

96

-80%


248

233

6%

       Total Provision/OREO Expense

19

96

-80%


248

353

-30%









Income before taxes

1,184

921

29%


1,885

1,925

-2%

Income taxes

298

246

21%


449

522

-14%

NET INCOME 

$           886

$          675

31%


$        1,436

$       1,403

2%









Earnings per share: basic 

$          0.34

$         0.26



$          0.55

$         0.54


Earnings per share: diluted

$          0.33

$         0.25



$          0.54

$         0.53


Net Interest Margin (tax equivalent)

3.59%

3.50%



3.52%

3.52%


Return on Average Assets

0.76%

0.66%



0.63%

0.69%


Return on Average Equity

9.83%

8.25%



8.08%

8.68%


 

SOURCE Greater Sacramento Bancorp



RELATED LINKS
https://www.bankofsacramento.com

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