Suncrest Bank Reports Record Second Quarter Earnings of $1.2 Million. Annualized Loan Growth of 26%. Annualized Deposit Growth of 33%.

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Jul 20, 2017, 08:30 ET

VISALIA, Calif., July 20, 2017 /PRNewswire/ -- Suncrest Bank (OTCQX: SBKK) today reported unaudited financial results for the second quarter of 2017. The acquisition of Security First Bank, which closed on December 16, 2016, will affect the comparability of financial information for the quarter versus the second quarter of 2016. In addition, second quarter results are positively impacted by the recognition of fair value discount accretion on acquired loans, including early payoffs of acquired loans.

"The second quarter of 2017 was a very strong quarter for Suncrest Bank, with earnings surpassing $1 million for the first time in the bank's history, and excellent total loan growth of $21 million representing an annualized growth rate over the prior quarter of 26%," said Ciaran McMullan, President and CEO of Suncrest Bank. "Loan growth was complemented by equally strong growth in deposits of $32 million or 33% annualized over the prior quarter, with the majority of this growth coming in noninterest-bearing demand accounts."

"The increase in total loans represents a single quarter record for Suncrest Bank, and the significant increases in both loans and deposits reflect the strength of our local market focused business model, with 100% of this growth coming through direct, locally sourced, depositor and borrower relationships." McMullan added, "Our new, state-of-the-art branch facility in downtown Visalia, which opened in mid-January 2017, and includes a commercial café and coffee shop, has made a significant contribution to this result with total deposits in that market up by $25 million during the quarter."

Second Quarter 2017 Highlights

Record second quarter net income of $1.2 million, up 79% compared to second quarter 2016.
Diluted EPS for the quarter of $0.17, up 31% compared to second quarter 2016.
Year-to-date net income of $1.9 million, up 102% compared to first half 2016.
Year-to-date diluted EPS of $0.27, up 42% compared to first half 2016.
Net Interest Income for the quarter of $5.3 million, up 57% compared to second quarter 2016.
Efficiency ratio of 56.03% compared to 66.79% for second quarter 2016.
Return on average assets of 1.04% compared to 0.89% for the second quarter 2016.
Return on average equity of 8.24% compared to 6.70% for the second quarter 2016.
Total risk based capital ratio was 13.96% and Tier 1 leverage ratio was 11.68%.
Total assets increased by $33.4 million, or 7.4% during the quarter (30% annualized over the prior quarter).
Total deposits increased by $32.1 million, or 8.2% during the quarter (33% annualized over the prior quarter).
Total loans increased by $20.6 million, or 6.5%, during the quarter (26% annualized over the prior quarter).
New loan originations* were $34.5 million during the quarter.

*Includes unfunded commitments

Income Statement

Net income for the first quarter was a record $1.2 million, which is a 79% increase over the same quarter last year and a 75% increase over the linked quarter. The comparability of second quarter net income to the same quarter last year, and the linked quarter, is impacted by both non-recurring costs associated with our acquisition of Security First Bank and non-recurring income due to the recognition of fair value discount accretion on acquired loans, including early payoffs of acquired loans. This non-recurring income includes $655,000 in earned discount due to the early payoff of a $2.7 million purchase credit impaired loan, which had previously been on non-accrual status with Security First Bank.

Period	Net Income	Non-recurring income	Non-recurring costs	Core Net Interest Income(1) (2)	Core Net Income(1) (2)	Core NIM(1) (2)	Core Diluted EPS(1) (2)

Q2 2017	$ 1,213,132	$ 809,224	$ -	$ 4,483,044	$ 736,904	4.17%	$ 0.11
Q1 2017	$ 695,214	$ 351,200	$ 250,000	$ 4,302,117	$ 635,658	4.28%	$ 0.09
Q2 2016	$ 676,686	$ 87,454	$ -	$ 3,282,411	$ 625,219	4.65%	$ 0.12

(1) Excludes non-recurring income and non-recurring costs.
(2) Non-GAAP financial measure.

Core Net Interest Income ⁽²⁾ for the quarter, which excludes the impact of non-recurring income, was $4.5 million, an increase of 37% compared to second quarter of 2016, and an increase of 4% compared to the linked quarter.

Noninterest income for the quarter was $356,000, a decrease of 31% compared to first quarter 2016. This decrease was driven primarily by a reduction in gain on sale income of $258,000. The variation between ROAA and ROAE, excluding non-recurring items, for this quarter when compared to the same quarter last year is primarily due to this reduced gain on sale income. We generally seek to sell the government guaranteed portion of both USDA B&I loans and SBA 7a loans, and target annual gain on sale income from these loans of approximately $500,000. We currently have a number of these loans available for sale and expect to achieve this $500,000 target for the full year 2017. Noninterest income increased by 21% when compared to the linked quarter, driven by additional gain on sale income of $92,000, due to the sale of the guaranteed portions of two loans during the quarter.

Noninterest expense for the quarter was $3.2 million, an increase of 22% compared to second quarter 2016. This increase is due to the impact of absorbing the ongoing operational costs of the Security First Bank acquisition. Noninterest expenses have decreased by $377,000 or 11% when compared to the linked quarter. This is primarily explained by $250,000 in non-recurring pre-tax merger costs in the first quarter. We successfully completed the systems integration and back office consolidation of Security First Bank during the quarter and do not expect further merger related expenses this year.

Core net interest margin⁽²⁾ declined when compared to the same quarter last year primarily due to average loans being a lower percentage of average earnings assets in the second quarter of 2017 compared to the second quarter of 2016. Core NIM⁽²⁾ declined by 11 basis points (bps) when compared to the linked quarter primarily due to a slight reduction in core loan yield. Core loan yield⁽²⁾, which is loan yield exclusive of the impact of earned discounts on acquired loans, was 5.59% and 5.45% for the first and second quarters of 2017 respectively. This change was driven primarily by a 10bps reduction in loan fees during the quarter. Recognition of income from loan fees in a quarter will vary dependent upon the maturity composition of new loans booked during that quarter, and loan payoffs. Over the last six quarters loan fees have been between 13bps and 25bps. Core loan yield, excluding loan fees, has remained fairly steady over the last six quarters, averaging approximately 5.4%. The company's cost of funds declined by one basis point during the quarter driven primarily by a higher percentage of average deposits being in noninterest-bearing accounts.

Balance Sheet

Total assets increased during the quarter by $33.4 million, or approximately 7%. Year over year growth was $168.3 million, or approximately 53%. This growth includes the impact of the acquisition of Security First Bank. Excluding the acquired assets, which were approximately $104 million, organic year over year growth was $64.3 million or approximately 20%. Total assets have increased year-to-date by $37.4 million or approximately 8% (17% annualized over year-end 2016).

Total loans increased by a record $20.6 million during the quarter or 7%, and year-to date total loans have increased by $29.5 million or 10% (19% annualized over year-end 2016). Farmland loans increased by $13.0 million from the prior quarter, reflecting our ongoing focus in the sector, where we have significant expertise at both Board and Management level. The comparability of the loan portfolio composition for the quarter versus the second quarter of 2016 is impacted by the acquisition is Security First Bank.

New loan originations together with new unfunded commitments during the quarter were $34.5 million. This loan growth has all been sourced locally through direct borrower relationships rather than through purchased participations or loan pool investments. Only 0.8% of total loans were acquired via participations with the last one being purchased in 2014. We have no loan pool investments.

Total deposits increased during the quarter by $32.1 million or approximately 8%. Noninterest-bearing demand deposits increased by $22.8 million or approximately 20% while time deposits decreased by $6.5 million or approximately 8%. Year-to-date total deposits have increased by $35.6 million or approximately 9% (18% annualized over year-end 2016). This growth has been driven in part by the success of our new Visalia Market President hired in December of 2016, our entire Visalia market team, and the opening of our new state-of-art Visalia branch facility in January 2017, which incorporates a commercial café and coffee shop, multi-screen community presentation space, iPad enabled new account opening, and a range of unique customer service features. Total deposits have increased during the quarter in our Visalia market by approximately $25 million. The bank does not have any brokered deposits or CD's acquired via a wholesale listing service. All deposits are sourced locally through direct relationships with local customers.

Asset Quality

Non-performing assets were $2.4 million or 0.50% of total assets at June 30, 2017 compared with $2.6 million or 0.58% of total assets at March 31, 2017. This decrease was primarily due to the disposition of an other real estate owned ("OREO") property at approximately net book value.

The company recorded a loan loss provision of $400,000 for the second quarter, compared to $200,000 for the linked quarter, which was driven by our strong organic loan growth. The allowance for loan losses as a percentage of total loans, excluding acquired loans that have been marked to fair value, was approximately 1.27% at June 30, 2017 compared to approximately 1.28% at March 31, 2017.

Capital

Suncrest Bank remained well capitalized at June 30, 2017. All of the Bank's capital ratios are above minimum regulatory standards for "well capitalized" institutions.

At June 30, 2017 the tangible book value per common share was $7.83 with common shares issued of 7,000,094 as of the same date. This compares to a tangible book value per common share of $7.63 at March 31, 2017 and $7.51 at December 31, 2016. The bank has only common shares on issue.

About Suncrest Bank
Suncrest Bank, member FDIC, is locally owned and operated and offers a full range of commercial, small business and agribusiness loans, cash management services and personal deposit products throughout the Central Valley of California. It is regularly rated Five Stars by Bauer Financial as one of the nation's strongest financial institutions, and in 2017 was named to the 2017 OTCQX® Best 50, a ranking of top performing companies traded on the OTCQX Best Market. It is a Preferred Lender with the Small Business Administration and its stock can be purchased on the open market, trading on the OTCQX under the ticker symbol SBKK. For all other information, visit www.suncrestbank.com

Forward Looking Statements
Except for the historical information in this news release, the matters described herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, our ability to maintain adequate levels of capital and liquidity, our ability to manage loan delinquency rates, our ability to price deposits to retain existing customers and achieve low-cost deposit growth, manage expenses and lower the efficiency ratio, expand or maintain the net interest margin, mitigate interest rate risk for changes in the interest rate environment, competitive pressures in the banking industry, access to available sources of credit to manage liquidity, the local and national economic environment, and other risks and uncertainties. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this release. Suncrest Bank undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Investors are encouraged to read the Suncrest Bank annual reports which are available on our website.

Suncrest Bank
Statements of Financial Condition (Unaudited)

	June 30,	March 31,	December 31,	June 30,
	2017	2017	2016	2016
ASSETS
Cash and Due from Banks	$ 23,474,487	$ 22,783,570	$ 25,567,875	$ 18,424,891
Federal Funds Sold	54,858,000	42,553,000	36,979,000	8,185,000
TOTAL CASH AND CASH EQUIVALENTS	78,332,487	65,336,570	62,546,875	26,609,891

Investment Securities Available for Sale (AFS)	46,360,233	45,423,120	53,567,064	48,718,661
Loans:
Total Loans	337,052,420	316,481,527	307,517,754	231,153,952
Allowance for Loan Losses	( 3,062,669)	( 2,696,163)	( 2,496,163)	( 2,496,163)
NET LOANS	333,989,751	313,785,364	305,021,591	228,657,789

Federal Home Loan Bank and Other Bank Stock, at Cost	3,152,891	3,152,891	3,152,891	1,767,565
Premises and Equipment	5,951,153	5,710,907	4,218,360	2,828,337
Other Real Estate Owned	313,720	635,842	788,842	635,842
Bank Owned Life Insurance	5,177,621	5,146,284	5,114,446	2,110,221
Goodwill	3,325,220	3,325,220	3,325,220	-
Core Deposit Intangible	1,444,956	1,516,342	1,576,611	395,306
Accrued Interest and Other Assets	6,994,008	7,596,144	8,340,728	5,057,513
	$ 485,042,040	$ 451,628,684	$ 447,652,628	$ 316,781,125

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing Demand	$ 135,850,600	$ 113,020,660	$ 122,835,165	$ 87,424,462
Savings, NOW and Money Market Accounts	210,722,297	194,953,732	181,779,826	112,501,325
Time Deposits	77,992,143	84,479,850	84,371,288	75,033,999
TOTAL DEPOSITS	424,565,040	392,454,242	388,986,279	274,959,786
Accrued Interest and Other Liabilities	897,859	928,694	1,375,691	903,731
TOTAL LIABILITIES	425,462,899	393,382,936	390,361,970	275,863,517

Shareholders' Equity:
Common Stock - No par value	57,202,344	57,202,344	57,046,519	40,702,552
Additional Paid-in Capital	1,951,059	1,894,064	1,851,183	1,906,163
Retained Earnings (Deficit)	698,304	( 514,828)	( 1,210,042)	( 1,996,390)
Accumulated Other Comprehensive Income (Loss) - Net
Unrealized Gain (Loss) on Securities AFS	( 272,566)	( 335,832)	( 397,002)	305,283
TOTAL SHAREHOLDERS' EQUITY	59,579,141	58,245,748	57,290,658	40,917,608
	$ 485,042,040	$ 451,628,684	$ 447,652,628	$ 316,781,125

Suncrest Bank
Statements of Income (Unaudited)
For the Three Months Ended

	June 30,	March 31,	June 30,
	2017	2017	2016
INTEREST INCOME
Interest and Fees on Loans	$ 5,170,236	$ 4,587,599	$ 3,282,376
Interest on Investment Securities	200,428	196,733	207,203
Interest on Federal Funds Sold and Other	178,555	115,496	23,143
TOTAL INTEREST INCOME	5,549,219	4,899,828	3,512,722

INTEREST EXPENSE
Interest on Savings Deposits, NOW and Money Market Accounts	117,091	100,495	43,570
Interest on Time Deposits	139,860	146,016	98,190
Interest on Other Borrowings	-	-	1,097
TOTAL INTEREST EXPENSE	256,951	246,511	142,857

NET INTEREST INCOME	5,292,268	4,653,317	3,369,865

Provision for Loan Losses	400,000	200,000	116,000
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES	4,892,268	4,453,317	3,253,865

NONINTEREST INCOME
Service Charges, Fees, and Other Income	251,468	282,883	151,720
Gain on Sale of Loans	104,865	12,789	362,658
	356,333	295,672	514,378

NONINTEREST EXPENSE
Salaries and Employee Benefits	1,790,685	2,016,409	1,391,968
Occupancy Expenses	358,573	314,879	312,424
Other Expenses	1,015,611	1,210,187	889,965
	3,164,869	3,541,475	2,594,357
INCOME BEFORE INCOME TAXES	2,083,732	1,207,514	1,173,886
Income Taxes	870,600	512,300	497,200
NET INCOME	$ 1,213,132	$ 695,214	$ 676,686

Suncrest Bank
Statements of Income (Unaudited)
For the Six Months Ended

	June 30,	June 30,
	2017	2016
INTEREST INCOME
Interest and Fees on Loans	$ 9,757,834	$ 6,252,348
Interest on Investment Securities	397,161	434,536
Interest on Federal Funds Sold and Other	294,052	34,663
TOTAL INTEREST INCOME	10,449,047	6,721,547

INTEREST EXPENSE
Interest on Savings Deposits, NOW and Money Market Accounts	217,586	89,179
Interest on Time Deposits	285,876	172,915
Interest on Other Borrowings	-	3,806
TOTAL INTEREST EXPENSE	503,462	265,900

NET INTEREST INCOME	9,945,585	6,455,647

Provision for Loan Losses	600,000	235,000
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES	9,345,585	6,220,647

NONINTEREST INCOME
Service Charges, Fees, and Other Income	534,351	276,278
Gain on Sale of Loans	117,654	394,058
	652,005	670,336

NONINTEREST EXPENSE
Salaries and Employee Benefits	3,807,093	2,803,999
Occupancy Expenses	673,452	626,547
Other Expenses	2,225,799	1,802,841
	6,706,344	5,233,387
INCOME BEFORE INCOME TAXES	3,291,246	1,657,596
Income Taxes	1,382,900	711,000
NET INCOME	$ 1,908,346	$ 946,596

Suncrest Bank
Selected Financial Data & Ratios (Unaudited)

	June 30,	March 31,	June 30,
	2017	2017	2016
For the three months ended:
Return on Average Assets(ROAA)	1.04%	0.62%	0.89%
ROAA excluding non-recurring items ^{(1) (2)}	0.63%	0.57%	0.82%
Return on Average Equity(ROAE)	8.24%	4.78%	6.70%
ROAE excluding non-recurring items ^{(1) (2)}	5.00%	4.37%	6.19%
Noninterest Expense (NIE) To Average Assets	2.71%	3.16%	3.42%
NIE to Average Assets excluding non-recurring items ^{(1) (2)}	2.71%	2.94%	3.42%
Efficiency Ratio	56.03%	71.56%	66.79%
Efficiency Ratio excluding non-recurring items ^{(1) (2)}	65.40%	71.59%	68.33%
Net Interest Margin	4.93%	4.62%	4.78%
Core Net Interest Margin^{(1) (2)}	4.17%	4.28%	4.65%
Cost of Funds	0.25%	0.26%	0.22%
Basic Earnings Per Share (EPS)	$ 0.17	$ 0.10	$ 0.13
Diluted EPS	$ 0.17	$ 0.10	$ 0.13
Diluted EPS excluding non-recurring items ^{(1) (2)}	$ 0.11	$ 0.09	$ 0.12

	June 30,	June 30,
	2017	2016
For the six months ended:
ROAA	0.83%	0.63%
ROAA excluding non-recurring items ^{(1) (2)}	0.65%	0.61%
ROAE	6.54%	4.73%
ROAE excluding non-recurring items ^{(1) (2)}	5.11%	4.58%
NIE To Average Assets	2.93%	3.50%
NIE to Average Assets excluding non-recurring items ^{(1) (2)}	2.82%	3.50%
Efficiency Ratio	63.28%	73.44%
Efficiency Ratio excluding non-recurring items ^{(1) (2)}	66.99%	73.97%
Net Interest Margin	4.78%	4.63%
Core Net Interest Margin ^{(1) (2)}	4.22%	4.53%
Cost of Funds	0.25%	0.21%
Basic EPS	$ 0.27	$ 0.19
Diluted EPS	$ 0.27	$ 0.19
Diluted EPS excluding non-recurring items ^{(1) (2)}	$ 0.21	$ 0.18

(1) Non-recurring items include merger expenses, discount accretion on acquired loans and recovery of interest on non-accrual loans.

(2) These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP measures may not be comparable to similarly titled measures reported by other companies.

Suncrest Bank
Selected Financial Data & Ratios Continued
(Unaudited)


	June 30,	March 31,	December 31,	June 30,
	2017	2017	2016	2016
At Period End:
Loans to Deposits	79.39%	80.64%	79.06%	84.07%
Average Loans to Average Deposits (QTD)	78.74%	79.14%	72.48%	86.58%
Non-Performing Assets to Assets	0.50%	0.58%	0.47%	0.81%
Outstanding Shares	7,000,094	7,000,094	6,979,497	5,025,225
Tangible Book Value Per Share ⁽²⁾	$ 7.83	$ 7.63	$ 7.51	$ 8.06
Book Value Per Share	$ 8.51	$ 8.32	$ 8.21	$ 8.14


Regulatory Capital Ratios
Tier 1 Leverage (to average assets)	11.68%	11.92%	11.70%	13.31%
Common Equity Tier 1 Capital (to risk weighted assets)	13.21%	13.62%	13.86%	14.83%
Tier 1 Capital (to risk weighted assets)	13.21%	13.62%	13.86%	14.83%
Total Capital (to risk weighted assets)	13.96%	14.32%	14.52%	15.75%



	June 30,	March 31,	December 31,	June 30,
	2017	2017	2016	2016
Loan Composition
Commercial and Industrial:	$ 36,742,212	$ 38,317,607	$ 47,280,544	$ 29,035,235
Loans to Finance Agricultural Production and Other Loans to Farmers:	18,552,301	17,362,540	15,444,057	13,991,784
Loans Secured by Real Estate:
Secured by Farmland	70,416,897	57,394,590	55,832,554	60,870,764
Construction, Land Development and Other Land	16,227,096	13,556,031	14,276,680	5,954,724
1-4 Family Residential Properties	46,114,444	45,318,922	38,754,918	31,115,511
Multifamily Residential Properties	17,205,320	15,728,093	16,346,739	13,314,257
Owner Occupied Nonresidential Properties	44,799,500	45,183,519	46,777,960	34,529,048
Non-Owner Occupied Nonresidential Properties	86,723,872	83,286,477	72,451,421	41,508,940
Total Loans Secured by Real Estate	281,487,129	260,467,632	244,440,272	187,293,244

Other Loans:	270,778	333,748	352,881	833,689

Total Loans	$ 337,052,420	$ 316,481,527	$ 307,517,754	$231,153,952

(2) These non-GAAP measures have inherent limitations, are not required to be uniformly applied and are not audited. They
should not be considered in isolation or as a substitute for analyses of results reported under GAAP. These non-GAAP
measures may not be comparable to similarly titled measures reported by other companies.

Suncrest Bank
Average Balance Sheet and Yields (Unaudited)
For the Three Months Ended
	June 30, 2017			March 31, 2017
	Average		Average	Average		Average
	Balance	Interest	Yield/Rate	Balance	Interest	Yield/Rate

Interest Earning Assets:
Deposits in Other Financial Institutions	$ 63,624,529	$ 178,555	1.13%	$ 53,232,844	$ 115,496	0.88%
Investment Securities	46,121,258	200,428	1.74%	47,037,935	196,733	1.67%
Loans	321,163,279	5,170,236	6.46%	307,592,099	4,587,599	6.05%
Total Interest Earning Assets	430,909,066	5,549,219	5.17%	407,862,878	4,899,828	4.87%
Noninterest Earning Assets	36,802,262			40,166,138
Total Assets	$467,711,328			$448,029,016

Interest Bearing Liabilities
Interest Bearing Transaction Accounts	$ 53,439,987	16,349	0.12%	$ 52,151,487	14,870	0.12%
Savings and Money Market Accounts	150,330,207	100,742	0.27%	137,177,672	85,625	0.25%
Time Deposits	82,211,779	139,860	0.68%	84,096,285	146,016	0.70%
Total Interest Bearing Deposits	285,981,973	256,951	0.36%	273,425,444	246,511	0.37%
Other Borrowings	-	-	-	-	-	-
Total Interest Bearing Liabilities	285,981,973	256,951	0.36%	273,425,444	246,511	0.37%
Noninterest Bearing Transaction Accounts	121,918,602			115,235,672
Total Funding Sources	407,900,575			388,661,116
Noninterest Bearing Liabilities	895,612			1,230,975
Shareholders' Equity	58,915,141			58,136,925
Total Liabilities and Shareholder's Equity	$467,711,328			$448,029,016
Net Interest Income		$ 5,292,268			$ 4,653,317
Net Interest Margin			4.93%			4.62%

Suncrest Bank
Average Balance Sheet and Yields (Unaudited)
For the Three Months Ended
	June 30, 2017			June 30, 2016
	Average		Average	Average		Average
	Balance	Interest	Yield/Rate	Balance	Interest	Yield/Rate

Interest Earning Assets:
Deposits in Other Financial Institutions	$ 63,624,529	$ 178,555	1.13%	$ 10,438,858	$ 23,143	0.89%
Investment Securities	46,121,258	200,428	1.74%	46,772,612	207,203	1.77%
Loans	321,163,279	5,170,236	6.46%	226,430,974	3,282,376	5.83%
Total Interest Earning Assets	430,909,066	5,549,219	5.17%	283,642,444	3,512,722	4.98%
Noninterest Earning Assets	36,802,262			19,518,549
Total Assets	$467,711,328			$303,160,993

Interest Bearing Liabilities
Interest Bearing Transaction Accounts	$ 53,439,987	16,349	0.12%	$ 30,514,710	9,797	0.13%
Savings and Money Market Accounts	150,330,207	100,742	0.27%	82,824,698	33,773	0.16%
Time Deposits	82,211,779	139,860	0.68%	64,481,231	98,190	0.61%
Total Interest Bearing Deposits	285,981,973	256,951	0.36%	177,820,639	141,760	0.32%
Other Borrowings	-	-	-	351,934	1,097	1.25%
Total Interest Bearing Liabilities	285,981,973	256,951	0.36%	178,172,573	142,857	0.32%
Noninterest Bearing Transaction Accounts	121,918,602			83,717,004
Total Funding Sources	407,900,575			261,889,577
Noninterest Bearing Liabilities	895,612			847,215
Shareholders' Equity	58,915,141			40,424,201
Total Liabilities and Shareholder's Equity	$467,711,328			$303,160,993
Net Interest Income		$ 5,292,268			$ 3,369,865
Net Interest Margin			4.93%			4.78%

Suncrest Bank
Average Balance Sheet and Yields (Unaudited)
For the Six Months Ended
	June 30, 2017			June 30, 2016
	Average		Average	Average		Average
	Balance	Interest	Yield/Rate	Balance	Interest	Yield/Rate

Interest Earning Assets:
Deposits in Other Financial Institutions	$ 58,480,636	$ 294,052	1.01%	$ 11,787,732	$ 34,663	0.59%
Investment Securities	46,540,370	397,161	1.71%	49,195,758	434,536	1.77%
Loans	314,367,996	9,757,834	6.26%	219,301,420	6,252,348	5.73%
Total Interest Earning Assets	419,389,002	10,449,047	5.02%	280,284,910	6,721,547	4.82%
Noninterest Earning Assets	38,305,889			18,954,360
Total Assets	$ 457,694,891			$ 299,239,270

Interest Bearing Liabilities
Interest Bearing Transaction Accounts	$ 52,812,496	31,219	0.12%	$ 29,858,836	19,221	0.13%
Savings and Money Market Accounts	143,778,080	186,367	0.26%	84,950,185	69,958	0.17%
Time Deposits	83,148,608	285,876	0.69%	61,614,246	172,915	0.56%
Total Interest Bearing Deposits	279,739,184	503,462	0.36%	176,423,267	262,094	0.30%
Other Borrowings	-	-	-	536,753	3,806	1.43%
Total Interest Bearing Liabilities	279,739,184	503,462	0.36%	176,960,020	265,900	0.30%
Noninterest Bearing Transaction Accounts	118,558,781			81,428,156
Total Funding Sources	398,297,965			258,388,176
Noninterest Bearing Liabilities	1,071,343			812,898
Shareholders' Equity	58,325,583			40,038,196
Total Liabilities and Shareholder's Equity	$ 457,694,891			$ 299,239,270
Net Interest Income		$ 9,945,585			$ 6,455,647
Net Interest Margin			4.78%			4.63%