Greater Sacramento Bancorp Reports 2014 Third Quarter Net Income Up 35% over 2013 Third Quarter

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Oct 20, 2014, 08:19 ET

SACRAMENTO, Calif., Oct. 20, 2014 /PRNewswire/ -- GREATER SACRAMENTO BANCORP (OTC: GSCB.OB) -- For the Third Quarter 2014 ended September 30, 2014, Greater Sacramento Bancorp (GSB), parent company of Bank of Sacramento (BOS), reported Net Income of $955,000 ($.36 per share diluted) which represented a 35% increase from the $710,000 ($.27 per share diluted) reported for the Third Quarter 2013. For the comparable nine month periods Net Income for the YTD September 30, 2014 was $2,206,000 ($.83 per share diluted) up 3% from the YTD September 30, 2013 Net Income figure of $2,146,000 ($.80 per share diluted).

The dramatic increase in Third Quarter 2014 Net Income was principally the result of a reversal of $400,000 (pre-tax) from the loan loss reserve. This reflects the vastly improved quality of the BOS loan portfolio which provided BOS the opportunity to reduce the loan loss reserve.

On a pre-tax basis "core" Income before the loan loss reserve reversal was $1,124,000 which was a 19% ($179,000) increase over the Third Quarter 2013 figure of $945,000. This core improvement was primarily due to a reduction of Non-Interest Expense for the Third Quarter 2014 of 7% ($200,000) compared to Third Quarter 2013.

Regarding GSB's Third Quarter and nine month 2014 performance CEO and Chairman, William J. Martin, commented: "We are extremely pleased that our long continuing and successful efforts to improve our loan portfolio quality has allowed us to recapture past loan loss reserve expenses. Likewise, on a core basis we are equally pleased with our reduction in Non-Interest Expenses which has enhanced our core Net Income despite the continuation of both a slow economy and low interest rates."

Martin continued: "In light of the recent announcement of our merger with AmericanWest Bank, we are particularly proud to be delivering both a quality portfolio and an improving earnings picture."

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

9/30/14

6/30/14

3/31/14

12/31/13

9/30/13

Net Income

$955,000

$625,000

$626,000

$790,000

$710,000

$ Per Share Diluted

$.36

$.23

$.30

$.27

As of September 30, 2014 BOS's Tier One Capital stood at $48,055,000 and GSB's Tier One Capital was $48,464,000. The Leverage Capital Ratio for BOS and GSB were 10.24% and 10.33%, respectively. By all regulatory measures the Bank and GSB are considered well capitalized.

Comparing balance sheets for the period ending September 30, 2014 and September 30, 2013, the following highlights are noted:

Total Loans
9/30/14	9/30/13	% Increase
$273,279,000	$271,308,000	1%

Total Deposits
9/30/14	9/30/13	% Increase
$409,751,000	$377,373,000	9%

Total Assets
9/30/14	9/30/13	% Increase
$480,874,000	$459,484,000	5%

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 Income
(IN THOUSANDS)
Unaudited

	Results of Operation			Results of Operation
	Three Months Ending		PERCENT	Year to Date		PERCENT
	9/30/2014	9/30/2013	CHANGE	9/30/2014	9/30/2013	CHANGE
Interest Income
Interest and fees on Loans	$ 3,253	$ 3,255	0%	$ 9,524	$ 9,584	-1%
Interest on Investments	953	909	5%	2,915	2,519	16%
Total Interest Income	4,206	4,164	1%	12,439	12,103	3%

Interest Expense
Interest on Deposits	327	316	3%	917	1,013	-9%
Interest on Borrowed Funds	100	74	35%	311	213	46%
Total Interest Expense	427	390	9%	1,228	1,226	0%

Net Interest Income	3,779	3,774	0%	11,211	10,877	3%

Non-interest Income
Service charges and other fees	170	190	-11%	539	517	4%
Gain on the sale of securities	-	6	-100%	-	625	-100%
Total Non-interest Income	170	196	-13%	539	1,142	-53%

Total Revenue	3,949	3,970	-1%	11,750	12,019	-2%

Non-interest Expense
Salaries and employee benefits	1,739	1,748	-1%	5,383	5,370	0%
Occupancy expense	227	205	11%	687	664	3%
Furniture and equipment expense	134	151	-11%	413	439	-6%
Other Operating expense	725	921	-21%	2,221	2,468	-10%
Total Non-interest Expense	2,825	3,025	-7%	8,704	8,941	-3%

Income from Operations	1,124	945	19%	3,046	3,078	-1%

Provision for possible loan losses	(400)	-		(400)	-	N.A.
OREO Expense and Valuation Allowance	92	7	1214%	230	255	-10%
Total Provision/OREO Expense	(308)	7	-4500%	(170)	255	-167%

Income before taxes	1,432	938	53%	3,216	2,823	14%
Income taxes	477	228	109%	1,010	677	49%
NET INCOME	$ 955	$ 710	35%	$2,206	$2,146	3%

Earnings per share: basic	$ 0.36	$ 0.27		$ 0.84	$ 0.82
Earnings per share: diluted	$ 0.36	$ 0.27		$ 0.83	$ 0.80
Net Interest Margin (tax equivalent)	3.57%	3.58%		3.57%	3.54%
Return on Average Assets	0.81%	0.60%		0.63%	0.62%
Return on Average Equity	9.48%	7.60%		7.51%	7.92%

Greater Sacramento Bancorp
Consolidated Statement of Condition
(IN THOUSANDS)
Unaudited

			DOLLAR	PERCENT
	9/30/2014	9/30/2013	CHANGE	CHANGE
ASSETS
Cash and due from banks	$ 25,690	$ 6,874	$ 18,816	274%
Federal funds sold	-	-	-	-
Securities, available-for-sale and held-to-maturity; net	163,890	164,960	(1,070)	-1%
Mark-to-Market	(2,994)	(5,269)	2,275	-43%
Securities, available-for-sale and held-to-maturity; net	160,896	159,691	1,205	1%
Loans
Construction	12,741	4,374	8,367	191%
Commercial Real Estate	211,219	226,060	(14,841)	-7%
Commercial and Industrial	46,743	38,489	8,254	21%
Consumer	2,576	2,385	191	8%
Total Loans outstanding	273,279	271,308	1,971	1%
Less: Allowance for Loan Losses	3,717	4,150	(433)	-10%
Loans; net	269,562	267,158	2,404	1%

Bank premises and equipment, net	172	193	(21)	-11%
FHLB, FRB and PCBB restricted stock	3,295	2,909	386	13%
Other Real Estate Owned	2,462	2,845	(383)	-13%
Bank Owned Life Insurance	11,155	10,821	334	3%
Accrued interest and other assets	7,642	8,993	(1,351)	-15%
TOTAL ASSETS	$480,874	$459,484	$21,390	5%

LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Noninterest bearing	$ 135,002	$ 114,823	$ 20,179	18%
NOW Accounts	32,598	19,890	12,708	64%
Contractor Retention Money Market Accounts	37,187	47,499	(10,312)	-22%
Money Market and Savings	93,108	91,569	1,539	2%
Time Deposits	111,856	103,592	8,264	8%
Total Deposits	409,751	377,373	32,378	9%

FHLB borrowings	20,000	35,000	(15,000)	-43%
Accrued interest and other liabilities	4,030	4,573	(543)	-12%
Junior subordinated debentures	8,248	8,248	-	0%
TOTAL LIABILITIES	442,029	425,194	16,836	4%

SHAREHOLDERS' EQUITY
Preferred convertible stock; Issued and outstanding,
none in 2014 and 2013	-	-	-
Common stock; Issued and outstanding,
2,617,340 in 2014 and 2,610,687 in 2013	22,600	22,551	49	0%
Paid in Capital	697	506	191	38%
Retained earnings	17,285	14,289	2,996	21%
Accumulated other comprehensive income (loss), net of tax	(1,737)	(3,056)	1,319	-43%
TOTAL SHAREHOLDERS' EQUITY	38,845	34,290	4,555	13%
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY	$480,874	$459,484	$21,390	5%

Book Value per common share	$ 14.84	$ 13.13	$ 1.71	13%
Tier 1 Leverage ratio	10.33%	9.63%
Allowance for Loan Losses coverage ratio	1.36%	1.53%