Greater Sacramento Bancorp Reports 2013 Net Income Down 4% from 2012
SACRAMENTO, Calif., Feb. 5, 2014 /PRNewswire/ -- For the full year 2013 Greater Sacramento Bancorp (GSB) (OTC: GSCB.OB), parent company of Bank of Sacramento (BOS), reported Net Income of $2,936,000 ($1.10 per share diluted) compared to Net Income of $3,051,000 ($1.15 per share diluted) for the full year 2012 representing a slight decrease of $115,000 or 4%.
Net Income for the Fourth Quarter 2013 was $790,000 ($.30 per share diluted) down 26% from Fourth Quarter 2012's figure of $1,072,000. Fourth Quarter 2012's Net Income was enhanced by the reimbursement of approximately $400,000 in expenses associated with the resolution of a problem loan and the recapture of another $400,000 related to the reduction of OREO Valuation expenses.
Fourth Quarter 2013 Net Income was 11% greater than the $710,000 ($.27 per share diluted) reported for Third Quarter 2013.
In comparing twelve months 2012 to the full year of 2013 it is a study of recoveries and extraordinary gains in 2012 versus core earnings in 2013. Net Interest Income in 2013 of $14.6 million was $1.4 million or 11% greater than the $13.2 million reported for 2012. Net Interest Income is the purest form of "core earnings" for a community bank and the year to year increase in Net Income reflects Bank of Sacramento's improved loan growth.
Non-Interest Income in 2013 was $1.3 million or $1.4 million (51%) less than the $2.7 million reported in 2012. The 2012 number reflects a substantial amount of both fee and expense recovery associated with resolved problem loans and gains from security transactions.
The sum of the Net Interest Income plus Non-Interest Income for the two years results in a dead heat as far as Total Revenue for the two years: $15,913,000 in 2013 and $15,871,000 in 2012.
Much of the Non-Interest Income in 2012 was one time in nature; therefore the improved "core earnings" generated in 2013 bodes well for the future.
Non-Interest Expense was slightly reduced in 2013 with a total Non-Interest Expense of $11,472,000 compared to $11,519,000 in 2012. Provision and OREO Valuation Expense in 2013 was up substantially over 2012: $469,000 versus $93,000. This was the result of a loss taken in 2013 on the sale of a residential lot and the reappraisal of another lot.
The result of the above was again a very close call as far as Net Income for each year; $2.936 million in 2013 and $3.051 million in 2012.
Net Interest Margin remains a challenge for GSB as it does for the industry. For 2013 GSB's Net Interest Margin was 3.55% slightly greater than the margin of 3.50% in 2012.
Regarding GSB's performance for 2013, CEO and Chairman William J. Martin commented: "We are most pleased that loan demand is showing life as our local economy slowly improves. During 2013 we increased loans by $12.8 million over 2012 and since the end of 2011 loans have grown by $44.1 million. The result has been a steady improvement in our core earnings. Growth in quality loans remains the key initiative in what remains a less than vibrant local economy."
GSB's Net Income over the past five quarters follows:
12/31/13 |
9/30/13 |
6/30/13 |
3/31/13 |
12/31/12 |
|
Net Income |
$790,000 |
$710,000 |
$886,000 |
$550,000 |
$1,072,000 |
$ Per Share Diluted |
$.30 |
$.27 |
$.33 |
$.21 |
$.40 |
As of December 31, 2013 the Bank's Tier One Capital stood at $45,960,000 and GSB's Tier One Capital was $45,394,000. The Leverage Capital Ratio for BOS and GSB were 9.78% and 9.88%, respectively. By all regulatory measures the Bank and GSB are considered well capitalized.
Comparing balance sheets for the years ending December 31, 2013 and December 31, 2012, the following highlights are noted:
Total Loans |
||
12/31/13 |
12/31/12 |
% Increase |
$271,698,000 |
$258,915,000 |
5% |
Total Deposits |
||
12/31/13 |
12/31/12 |
% (Decrease) |
$363,037,000 |
$385,887,000 |
(6%) |
Total Assets |
||
12/31/13 |
12/31/12 |
% Increase |
$461,082,000 |
$445,161,000 |
4% |
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 |
|||
12/31/2013 |
12/31/2012 |
CHANGE |
CHANGE |
|
ASSETS |
||||
Cash and due from banks |
$ 10,007 |
$ 8,716 |
$ 1,291 |
15% |
Federal funds sold |
- |
- |
- |
- |
Securities, available-for-sale and held-to-maturity |
157,884 |
157,631 |
253 |
0% |
Loans |
||||
Construction |
5,819 |
2,584 |
3,235 |
125% |
Commercial Real Estate |
223,361 |
212,373 |
10,988 |
5% |
Commercial and Industrial |
40,420 |
41,720 |
(1,300) |
-3% |
Consumer |
2,098 |
2,238 |
(140) |
-6% |
Total Loans outstanding |
271,698 |
258,915 |
12,783 |
5% |
Less: Allowance for Loan Losses |
3,980 |
4,142 |
(162) |
-4% |
Loans, net |
267,718 |
254,773 |
12,945 |
5% |
Bank premises and equipment, net |
172 |
277 |
(105) |
-38% |
FHLB, FRB and PCBB restricted stock |
3,066 |
2,847 |
219 |
8% |
Other Real Estate Owned |
2,655 |
3,322 |
(667) |
-20% |
Bank Owned Life Insurance |
10,889 |
10,558 |
331 |
3% |
Accrued interest and other assets |
8,691 |
7,037 |
1,654 |
24% |
TOTAL ASSETS |
$ 461,082 |
$445,161 |
$15,921 |
4% |
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
LIABILITIES |
||||
Deposits |
||||
Noninterest bearing |
$ 116,792 |
$ 112,799 |
$ 3,993 |
4% |
NOW Accounts |
18,651 |
16,003 |
2,648 |
17% |
Money Market and Savings |
121,766 |
149,287 |
(27,521) |
-18% |
Time Deposits |
105,828 |
107,798 |
(1,970) |
-2% |
Total Deposits |
363,037 |
385,887 |
(22,850) |
-6% |
FHLB borrowings |
50,000 |
10,000 |
40,000 |
400% |
Accrued interest and other liabilities |
4,485 |
4,216 |
269 |
6% |
Junior subordinated debentures |
8,248 |
8,248 |
- |
0% |
TOTAL LIABILITIES |
425,770 |
408,351 |
17,420 |
4% |
SHAREHOLDERS' EQUITY |
||||
Preferred convertible stock; Issued and outstanding, none in 2013 and 2012 |
- |
- |
- |
|
Common stock; Issued and outstanding, 2,610,687 in 2013 and 2,602,607 in 2012 |
22,551 |
22,531 |
20 |
0% |
Paid in Capital |
554 |
356 |
198 |
56% |
Retained earnings |
15,079 |
12,143 |
2,936 |
24% |
Accumulated other comprehensive income (loss), net of tax |
(2,872) |
1,780 |
(4,652) |
-261% |
TOTAL SHAREHOLDERS' EQUITY |
35,312 |
36,810 |
(1,498) |
-4% |
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
$ 461,082 |
$ 445,161 |
$ 15,921 |
4% |
Book Value per common share |
$ 13.53 |
$ 14.14 |
$ (0.62) |
-4% |
Tier 1 Leverage ratio |
9.88% |
9.47% |
||
Allowance for Loan Losses coverage ratio |
1.46% |
1.60% |
Greater Sacramento Bancorp |
|||||||
Consolidated Statement of Income |
|||||||
(IN THOUSANDS) |
|||||||
Unaudited |
|||||||
Results of Operation |
Results of Operation |
||||||
Three Months Ending |
PERCENT |
Year to Date |
PERCENT |
||||
12/31/2013 |
12/31/2012 |
CHANGE |
12/31/2013 |
12/31/2012 |
CHANGE |
||
Interest Income |
|||||||
Interest and fees on Loans |
$ 3,195 |
$ 3,299 |
-3% |
$ 12,779 |
$ 12,049 |
6% |
|
Interest on Investments |
939 |
810 |
16% |
3,458 |
3,087 |
12% |
|
Total Interest Income |
4,134 |
4,109 |
1% |
16,237 |
15,136 |
7% |
|
Interest Expense |
|||||||
Interest on Deposits |
300 |
406 |
-26% |
1,313 |
1,633 |
-20% |
|
Interest on Borrowed Funds |
107 |
87 |
23% |
320 |
292 |
10% |
|
Total Interest Expense |
407 |
493 |
-17% |
1,633 |
1,925 |
-15% |
|
Net Interest Income |
3,727 |
3,616 |
3% |
14,604 |
13,211 |
11% |
|
Non-interest Income |
|||||||
Service charges and other fees |
167 |
522 |
-68% |
684 |
1,599 |
-57% |
|
Gain on the sale of securities |
- |
124 |
-100% |
625 |
1,061 |
-41% |
|
Total Non-interest Income |
167 |
646 |
-74% |
1,309 |
2,660 |
-51% |
|
Total Revenue |
3,894 |
4,262 |
-9% |
15,913 |
15,871 |
0% |
|
Non-interest Expense |
|||||||
Salaries and employee benefits |
1,435 |
1,990 |
-28% |
6,805 |
6,873 |
-1% |
|
Occupancy expense |
224 |
224 |
0% |
888 |
942 |
-6% |
|
Furniture and equipment expense |
153 |
155 |
-1% |
592 |
612 |
-3% |
|
Other Operating expense |
719 |
794 |
-9% |
3,187 |
3,092 |
3% |
|
Total Non-interest Expense |
2,531 |
3,163 |
-20% |
11,472 |
11,519 |
0% |
|
Income from Operations |
1,363 |
1,099 |
24% |
4,441 |
4,352 |
2% |
|
Provision for possible loan losses |
- |
- |
- |
120 |
-100% |
||
OREO Expense and Valuation Allowance |
214 |
(387) |
-155% |
469 |
(27) |
-1837% |
|
Total Provision/OREO Expense |
214 |
(387) |
-155% |
469 |
93 |
404% |
|
Income before taxes |
1,149 |
1,486 |
-23% |
3,972 |
4,259 |
-7% |
|
Income taxes |
359 |
414 |
-13% |
1,036 |
1,208 |
-14% |
|
NET INCOME |
$ 790 |
$ 1,072 |
-26% |
$ 2,936 |
$ 3,051 |
-4% |
|
Earnings per share: basic |
$ 0.30 |
$ 0.41 |
$ 1.13 |
$ 1.17 |
|||
Earnings per share: diluted |
$ 0.30 |
$ 0.40 |
$ 1.10 |
$ 1.15 |
|||
Net Interest Margin (tax equivalent) |
3.57% |
3.60% |
3.55% |
3.50% |
|||
Return on Average Assets |
0.67% |
0.95% |
0.64% |
0.72% |
|||
Return on Average Equity |
8.45% |
12.33% |
8.01% |
9.17% |
SOURCE Greater Sacramento Bancorp
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