Greater Sacramento Bancorp Reports 1st Quarter Net Income Down 24% From 2012
SACRAMENTO, Calif., April 15, 2013 /PRNewswire/ -- GREATER SACRAMENTO BANCORP (OTC: GSCB.OB) -- For the First Quarter 2013 ended March 31, Greater Sacramento Bancorp (GSB) parent company of Bank of Sacramento (BOS), reported net income of $550,000 ($.21 per share diluted). This represented a 24% decrease from the $728,000 ($.28 per share diluted) reported for the First Quarter 2012.
The primary cause for the decrease was an extraordinary gain in 2012 coupled with an extraordinary expense in 2013. First Quarter 2012 benefited from a settlement payment to the Bank of $413,000 while First Quarter 2013 experienced an expense of $184,000 associated with the sale of an OREO property. The expense was incurred and accounted for in the First Quarter with the sale of the OREO to close in the Second Quarter 2013.
More telling of our core performance is the fact that Net Interest Income for First Quarter 2013 was $3,373,000 compared to $3,220,000 for the First Quarter 2012 representing a 5% increase.
Because of low interest rates Net Interest Margin (NIM) remains a major challenge for Bank of Sacramento and the entire industry. NIM for the First Quarter 2013 at 3.46% was down slightly from the 3.55% NIM for the First Quarter 2012.
Of great significance was the fact that Total Loans at 3/31/13 amounted to $269,261,000 compared to $233,569,000 at 3/31/12. This $35.7 million or 15% increase bodes well for both future Net Interest Income and Net Interest Margin.
It should also be noted that Total Loans during the First Quarter grew by $10 million over the year end 2012 figure of $259 million.
Regarding GSB's performance for First Quarter 2013, CEO and Chairman William J. Martin commented: "Management and the Board are particularly pleased with our third consecutive quarter of substantial loan growth for the nine months ending 3/31/13. Since our low point for Total Loans Outstanding of $220.8 million at 6/30/12, BOS has had net growth of $48.5 million to $269 million in loan outstandings . This has been accomplished while continuing to reduce problem assets and most importantly puts us in excellent position to report improved interest income despite the low rate environment."
In looking at 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 Trouble Debt Restructures plus OREO to Total Assets:
| 3/31/13 |
12-31-12 |
9-30-12 |
6-30-12 |
3-31-12 |
| .67% |
.90% |
1.14% |
1.24% |
.89% |
- Ratio of Non-Performing Assets plus Trouble Debt Restructures to Equity plus Loan Loss Reserve ("Texas Ratio"):
| 3/31/13 |
12-31-12 |
9-30-12 |
6-30-12 |
3-31-12 |
| 6.52% |
8.34% |
10.58% |
11.21% |
8.26% |
GSB's profit over the past five quarters follows:
- Net Income and Dollar Per Share Diluted:
| 3/31/13 |
12-31-12 |
9-30-12 |
6-30-12 |
3-31-12 |
|
| Net Income |
$550,000 |
$1,072,000 |
$576,000 |
$675,000 |
$728,000 |
| $ Per Share Diluted |
$.21 |
$.40 |
$.22 |
$.25 |
$.28 |
As of March 31, 2013 the Bank's Tier One Capital stood at $42,328,000 and GSB's Tier One Capital was $42,858,000. The Leverage Capital Ratio for BOS and GSB were 9.52% and 9.64%, respectively. By all regulatory measures the Bank and GSB are considered well capitalized.
Comparing balance sheets for the quarters ending March 31, 2012 and March 31, 2013, the following highlights are noted:
| Total Deposits |
||
| 3/31/13 |
3/31/12 |
% Increase |
| $381,874,000 |
$354,638,000 |
8% |
| Total Loans |
||
| 3/31/13 |
3/31/12 |
% Increase |
| $269,261,000 |
$233,569,000 |
15% |
| Total Assets |
||
| 3/31/13 |
3/31/12 |
% Increase |
| $464,268,000 |
$409,533,000 |
13% |
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 |
|||
| 3/31/2013 |
3/31/2012 |
CHANGE |
CHANGE |
|
| ASSETS |
||||
| Cash and due from banks |
$ 11,362 |
$ 9,681 |
$ 1,681 |
17% |
| Federal funds sold |
- |
- |
- |
- |
| Securities, available-for-sale and held-to-maturity |
163,864 |
144,949 |
18,915 |
13% |
| Loans |
||||
| Construction |
911 |
4,625 |
(3,714) |
-80% |
| Commercial Real Estate |
230,198 |
192,703 |
37,495 |
19% |
| Commercial and Industrial |
36,326 |
34,216 |
2,110 |
6% |
| Consumer |
1,826 |
2,025 |
(199) |
-10% |
| Total Loans outstanding |
269,261 |
233,569 |
35,692 |
15% |
| Less: Allowance for Loan Losses |
4,148 |
4,221 |
(73) |
-2% |
| Loans, net |
265,113 |
229,348 |
35,765 |
16% |
| Bank premises and equipment, net |
245 |
548 |
(303) |
-55% |
| FHLB, FRB and PCBB restricted stock |
2,850 |
2,609 |
241 |
9% |
| Other Real Estate Owned |
3,109 |
3,146 |
(37) |
-1% |
| Bank Owned Life Insurance |
10,640 |
10,275 |
365 |
4% |
| Accrued interest and other assets |
7,085 |
8,977 |
(1,892) |
-21% |
| TOTAL ASSETS |
$ 464,268 |
$ 409,533 |
$ 54,735 |
13% |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
| LIABILITIES |
||||
| Deposits |
||||
| Noninterest bearing |
$ 109,549 |
$ 91,666 |
$ 17,883 |
20% |
| NOW Accounts |
15,729 |
32,754 |
(17,025) |
-52% |
| Money Market and Savings |
153,774 |
109,855 |
43,919 |
40% |
| Time Deposits |
102,822 |
120,363 |
(17,541) |
-15% |
| Total Deposits |
381,874 |
354,638 |
27,236 |
8% |
| FHLB borrowings |
34,000 |
10,000 |
24,000 |
240% |
| Accrued interest and other liabilities |
3,798 |
3,620 |
178 |
5% |
| Junior subordinated debentures |
8,248 |
8,248 |
- |
0% |
| TOTAL LIABILITIES |
427,920 |
376,506 |
51,415 |
14% |
| 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 |
409 |
265 |
144 |
54% |
| Retained earnings |
12,693 |
9,820 |
2,873 |
29% |
| Accumulated other comprehensive income (loss), net of tax |
695 |
428 |
267 |
62% |
| TOTAL SHAREHOLDERS' EQUITY |
36,348 |
33,027 |
3,321 |
10% |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
$ 464,268 |
$ 409,533 |
$ 54,735 |
13% |
| Book Value per common share |
$ 13.92 |
$ 12.70 |
$ 1.22 |
10% |
| Tier 1 Capital Leverage ratio |
9.64% |
9.80% |
||
| Allowance for Loan Losses coverage ratio |
1.54% |
1.81% |
||
| Greater Sacramento Bancorp |
|||
| Consolidated Statement of Income |
|||
| (IN THOUSANDS) |
|||
| Unaudited |
|||
| Results of Operation |
|||
| Three Months Ending |
PERCENT |
||
| 3/31/2013 |
3/31/2012 |
CHANGE |
|
| Interest Income |
|||
| Interest and fees on Loans |
$ 3,108 |
$ 2,921 |
6% |
| Interest on Investments |
692 |
770 |
-10% |
| Total Interest Income |
3,800 |
3,691 |
3% |
| Interest Expense |
|||
| Interest on Deposits |
365 |
402 |
-9% |
| Interest on Borrowed Funds |
62 |
69 |
-10% |
| Total Interest Expense |
427 |
471 |
-9% |
| Net Interest Income |
3,373 |
3,220 |
5% |
| Non-interest Income |
|||
| Service charges and other fees |
154 |
570 |
-73% |
| Gain on the sale of securities |
470 |
354 |
33% |
| Total Non-interest Income |
624 |
924 |
-32% |
| Total Revenue |
3,997 |
4,144 |
-4% |
| Non-interest Expense |
|||
| Salaries and employee benefits |
1,879 |
1,655 |
14% |
| Occupancy expense |
221 |
258 |
-14% |
| Furniture and equipment expense |
143 |
155 |
-8% |
| Other Operating expense |
824 |
815 |
1% |
| Total Non-interest Expense |
3,067 |
2,883 |
6% |
| Income from Operations |
930 |
1,261 |
-26% |
| Provision for possible loan losses |
- |
120 |
-100% |
| OREO Expense and Valuation Allowance |
229 |
137 |
67% |
| Total Provision/OREO Expense |
229 |
257 |
-11% |
| Income before taxes |
701 |
1,004 |
-30% |
| Income taxes |
151 |
276 |
-45% |
| NET INCOME |
$ 550 |
$ 728 |
-24% |
| Earnings per share: basic |
$ 0.21 |
$ 0.28 |
|
| Earnings per share: diluted |
$ 0.21 |
$ 0.28 |
|
| Net Interest Margin (tax equivalent) |
3.46% |
3.55% |
|
| Return on Average Assets |
0.50% |
0.72% |
|
| Return on Average Equity |
6.28% |
9.13% |
|
SOURCE Greater Sacramento Bancorp
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