Greater Sacramento Bancorp Reports 2nd Quarter Earnings Up 31% from 2nd Quarter 2012

SACRAMENTO, Calif., July 15, 2013 /PRNewswire/ -- GREATER SACRAMENTO BANCORP (OTC: GSCB.OB) -- For the Second Quarter 2013, ended 6/30/13, Greater Sacramento Bancorp (GSB), parent company of Bank of Sacramento (BOS) reported Net Income of $886,000 ($.33 per share diluted) representing a 31% increase over the $675,000 ($.25 per share diluted) reported in the Second Quarter 2012; it also represented a 61% increase over the $550,000 ($.21 per share diluted) reported for the First Quarter 2013.

For the first six months of 2013, GSB reported Net Income of $1,436,000 ($.54 per share diluted) up 2% from the $1,403,000 ($.53 per share diluted) reported for the first six months of 2012.

The improved Net Income for both the quarter and the six months was driven by our significant improvement in Net Interest Income, the core revenue generator for GSB.  Net Interest Income for the Second Quarter 2013 was $3,730,000 up 16% from the Second Quarter 2012 figure of $3,204,000. For the six months the 2013 Net Interest Income amounted to $7,103,000 up 11% over the six month 2012 figure of $6,424,000.  This improvement is the result of strong loan volume growth and improved yields in our securities portfolio.

Non-Interest Income for the 2013 Second Quarter at $322,000 was down 32% from the $472,000 reported for Second Quarter 2012. Likewise, the six month's year to year comparison was also down 32% from $1,396,000 at 6/30/12 to $946,000 for the six months ending 6/30/13.  The 2012 number benefited from one-time gains resulting from the recovery of prior problem loan related expenses.

Non-Interest Expense for both the comparative quarters and the comparative six month periods is up 7% from 2012 to 2013. While all other categories are flat or down, Salaries and Employee Benefits are up 14% as a result of an Executive Retirement Plan that was instituted in July 2012. For the first six months of 2013 Salary/Benefits were $3,622,000 compared to $3,188,000 during six months of 2012. For the second half of this year Salary/Benefit Expense should be in line with 2012's second half.

Net Interest Margin which has been under downward pressure because of the protracted period of low interest rates showed improvement in Second Quarter 2013. Net Interest Margin for the Second Quarter 2013 was 3.59% compared to 3.50% for Second Quarter 2012 and 3.46% for First Quarter 2013. This improvement was the result of our ability to employ our funds in higher yielding loans rather than securities as well as some improvement in the yield of our securities portfolio.

Regarding GSB's performance for Second Quarter 2013, CEO and Chairman, William J. Martin commented: "Management and the Board are most pleased with the income performance, the loan growth, and the loan quality of Bank of Sacramento. While our income performance in 2012 was primarily driven by improved loan quality, 2013 income has originated more from our traditional loan and deposit growth. Loans and deposits form the core of our revenues and improvement in that area is critical to our long term positive performance."

In looking at asset quality, two key indicators for Bank of Sacramento over the past five quarters witness the stability of our asset quality:

• Ratio of Non-Performing Loans plus Trouble Debt Restructures plus OREO to Total Assets:

• Ratio of Non-Performing Assets plus Trouble Debt Restructures to Equity plus Loan Loss Reserve ("Texas Ratio"):

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

• Net Income and Dollar Per Share Diluted:

As of June 30, 2013 the Bank's Tier One Capital stood at $43,441,000 and GSB's Tier One Capital was $44,118,000.  The Leverage Capital Ratio for BOS and GSB were 9.30% and 9.45%, respectively.  By all regulatory measures the Bank and GSB are considered well capitalized.

Comparing balance sheets for the quarters ending June 30, 2013 and June 30, 2012, the following highlights are noted:

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.

SOURCE Greater Sacramento Bancorp