Greater Sacramento Bancorp Reports Fourth Quarter 2009 Net Income of $130,000
SACRAMENTO, Calif., Feb. 8 /PRNewswire-FirstCall/ -- (GREATER SACRAMENTO BANCORP (OTC Bulletin Board: GSCB) For the Fourth Quarter ended December 31, 2009 Greater Sacramento Bancorp (GSB), parent company of Bank of Sacramento (Bank), reported Net Income of $130,000 ($.05 per share diluted) compared to a net loss for the Fourth Quarter of 2008 of $379,000 (-$.14 per share diluted) and a net loss of $124,000 (-$.05 per share diluted) for the Third Quarter of 2009.
For the full year of 2009 GSB reported Net Income of $639,000 ($.25 per share diluted) compared to Net Income of $952,000 ($.36 per share diluted) for 2008, representing a 33% decrease in Net Income.
The Fourth Quarter 2009 Net Income was achieved in spite of the following actions taken by management: 1) The net write off and write down of previously identified problem loans of $0.3 million and the addition during the Quarter of $1 million to the Bank's Loan Loss Reserve; and 2) The $1.1 million write down of two bank held OREO properties. Residential land in the Dixon area was written down by $0.95 million to reflect the current real estate market price while a West Sacramento industrial building was written down $0.15 million to reflect the loss on the sale of this property.
As of December 31, 2009 the ratio of non-performing loans plus OREO to Total Assets was 3.30% compared to 3.53% at September 30, 2009; 3.02% at June 30, 2009; and 3.12% at December 31, 2008.
As a result of the $1.0 million added to the Loan Loss Reserve during the Fourth Quarter 2009, the Loan Loss Reserve at December 31, 2009 stood at $4,742,000 or 1.82% of outstanding loans. This compares to a ratio of 1.53% at September 30, 2009; 1.52% at June 30, 2009 and 1.23% at December 31, 2008.
Regarding the quality of the Bank's loan portfolio and GSB's performance for 2009, CEO and Chairman, William J. Martin, commented: "The effort to cleanse our loan portfolio of problem credits and reduce our OREO showed positive results in the Fourth Quarter 2009 as we sold an industrial building in West Sacramento for $1,860,000, reduced our ratio of problem assets to total assets to 3.30% from the Third Quarter 2009 figure of 3.53%, and added $1.0 million to our loan loss reserves. This cleansing effort will continue essentially throughout 2010, but we are assured that we have sound plans for the disposition of problem loans and OREO as quickly as possible."
Martin continued, "It is of paramount importance to note that the earnings generated by our core 'good' assets were substantial enough during the year to cover a $4,300,000 addition to our loan loss reserve and to absorb $2.2 million in OREO expenses and valuation write downs. That is $6.5 million of extraordinary expenses that were covered by core earnings with $639,000 falling to the bottom line. I remain confident that the Bank's combination of sound core earnings, a healthy capital position, and an enhanced loan loss reserve will insure that we will successfully manage through this difficult market."
As of December 31, 2009 the Bank's Tier One Capital stood at $34,582,000 and GSB's Tier One Capital was $35,972,000. The respective Leverage Capital Ratios for the Bank and GSB were 9.63% and 10.01%. By all regulatory measures the Bank and GSB are considered well capitalized.
In reviewing the Fourth Quarter and full year income statement and balance sheet performance the following highlights are offered:
- Net Interest Income in the Fourth Quarter of $3,918,000 was 10% greater than the Fourth Quarter 2008 figure of $3,550,000. For the 12 months of 2009 Net Interest Income of $15,333,000 was 7% greater than the 2008 figure of $14,311,000. This year-to-year increase was totally attributable to a 41% reduction in interest expense from $5,321,000 in 2008 to $3,164,000 in 2009.
- Net Interest Margin was 4.66% in the Fourth Quarter 2009 and 4.68% for the year. In 2008 the comparative margins were 4.50% and 4.62%.
- During 2009 the $4,300,000 which was added to Provision for possible loan losses was 117% greater than the $1,982,000 added in 2008.
- At December 31, 2009 OREO amounted to $5,316,000, 31% less than the $7,682,000 held at December 31, 2008.
- In 2009 the gains from the sale of securities, which totaled $1,190,000, significantly enhanced Non-Interest Income (NII) and was the primary contributor to the 82% increase in NII, $1,102,000 in 2008 to $2,010,000 in 2009.
- Expenses related to OREO (including valuation reductions) of $2,241,000 were 12% less than the 2008 figure of $2,559,000.
- Other Non-Interest Expenses in 2009 amounted to $10,478,000, representing a minimal 7% increase over the 2008 figure of $9,831,000.
- Total Deposits at December 31, 2009 of $310.5 million represented a slight 1% increase over the $308.3 million at December 31, 2008.
- Total Loans Outstanding at December 31, 2009 of $260.2 million was 5% greater than the $247.7 million outstanding at December 31, 2008.
- ROA and ROE for 2009 were .18% and 2.23%, respectively, compared to .28% and 3.4% in 2008.
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 Financial Highlights
(IN THOUSANDS)
Unaudited
CONDENSED STATEMENT OF CONDITION DOLLAR PERCENT
12/31/2009 12/31/2008 CHANGE CHANGE
---------- ---------- ------- -------
ASSETS
Cash and due from banks $7,943 $11,246 $(3,303) -29%
Federal funds sold - 225 (225) N.A.
Securities, available-for sale
and held-to-maturity 69,022 74,379 (5,357) -7%
Total Loans outstanding 260,171 247,666 12,505 5%
Less Allowance for Loan
Losses 4,742 3,038 1,704 56%
----- ----- -----
Loans, net 255,429 244,628 10,801 4%
Bank premises and equipment,
net 914 1,268 (354) -28%
FHLB and FRB restricted
stock 2,142 2,142 - 0%
Other Real Estate Owned 5,316 7,682 (2,366) -31%
Accrued interest and other
assets 16,868 12,249 4,619 38%
------ ------ -----
TOTAL ASSETS $357,634 $353,819 $3,815 1%
=====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Noninterest bearing $92,532 $81,851 $10,681 13%
Interest bearing 217,966 226,415 (8,449) -4%
------- ------- ------
Total Deposits 310,498 308,266 2,232 1%
FHLB borrowings 7,594 7,094 500 7%
Accrued interest and other
liabilities 2,816 2,453 363 15%
Junior subordinated
debentures 8,248 8,248 - 0%
----- ----- -
TOTAL LIABILITIES 329,156 326,061 3,096 1%
SHAREHOLDERS' EQUITY
Preferred convertible stock;
Issued and outstanding,
23,175 in 2009 and 46,978
in 2008 515 1,229 (714) -58%
Common stock; Issued and
outstanding, 2,565,893 in
2009 and 2,464,667 in 2008 21,971 20,846 1,125 5%
Paid in Capital 97 69 28 41%
Retained earnings 6,041 5,402 639 12%
Accumulated other comprehensive
income (loss), net of tax (146) 212 (358) -169%
---- --- ----
TOTAL SHAREHOLDERS'
EQUITY 28,478 27,758 720 3%
------ ------ ---
TOTAL LIABILITIES &
SHAREHOLDERS' EQUITY $357,634 $353,819 $3,815 1%
=====================================
CONDENSED STATEMENT OF INCOME
Results of Operation Results of Operation
Three Months Ending Year to Date
------------------- PERCENT ------------ PERCENT
12/31/2009 12/31/2008 CHANGE 12/31/2009 12/31/2008 CHANGE
---------- ---------- ------- ---------- ---------- -------
Interest
Income $4,575 $4,801 -5% $18,497 $19,632 -6%
Interest
Expense 657 1,251 -47% 3,164 5,321 -41%
--- ----- ----- -----
Net
Interest
Income 3,918 3,550 10% 15,333 14,311 7%
Noninterest
Income 594 465 28% 2,010 1,102 82%
--- --- ----- -----
Total
Revenue 4,512 4,015 12% 17,343 15,413 13%
Noninterest
Expense 2,480 2,297 8% 10,478 9,831 7%
----- ----- ------ -----
Income from
Operations 2,032 1,718 18% 6,865 5,582 23%
Provision
for
possible
loan
losses 1,000 78 1182% 4,300 1,982 117%
OREO
Expense
and
Valuation
Allowance 1,097 2,492 -56% 2,241 2,559 -12%
----- ----- ----- -----
Total
Provision/
OREO
Expense 2,097 2,570 -18% 6,541 4,541 44%
Income
before
taxes (65) (852) NM 324 1,041 -69%
Income
taxes (195) (473) NM (315) 89 NM
---- ---- ---- --
NET INCOME $130 $(379) NM $639 $952 -33%
================ =========================
Earnings per
share: basic $0.05 -$0.15 NM $0.25 $0.38 -34%
Earnings per
share:
diluted $0.05 -$0.14 NM $0.25 $0.36 -31%
Book
Value per
common
share $10.90 $10.34 5% $10.90 $10.34 5%
Net Interest
Margin (tax
equivalent) 4.66% 4.50% 4.68% 4.62%
Return
on
Average
Assets 0.14% -0.43% 0.18% 0.28%
Return
on
Average
Equity 1.80% -5.27% 2.23% 3.40%
SOURCE Greater Sacramento Bancorp
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