Greater Sacramento Bancorp Reports First Quarter Earnings Up 68%
SACRAMENTO, Calif., April 16, 2012 /PRNewswire/ -- For the First Quarter 2012 ended March 31, Greater Sacramento Bancorp (GSB) (OTC: GSCB.OB), parent company of Bank of Sacramento (BOS), reported Net Income of $728,000 ($.28 per share diluted). This represented a 68% increase over the $433,000 ($.17 per share diluted) reported for the First Quarter 2011.
On a consecutive quarter basis, First Quarter 2012 Net Income represented a 21% increase over the $601,000 ($.23 per share diluted) reported for the Fourth Quarter 2011.
The improved Net Income over First Quarter 2011 was a result of continued improvement in asset quality and the resultant decrease in loan loss provision and OREO expenses as well as a 181% increase in Non-Interest Income from $329,000 in First Quarter 2011 to $924,000 in First Quarter 2012. This substantial increase in Non-Interest Income was the result of gains from the sale of securities as well as a one-time recovery of expenses related to a troubled loan. Also enhancing First Quarter Income was a 3% ($78,000) decrease in Total Non-Interest Expense.
Somewhat offsetting these positive factors was an 11% decrease in Net Interest Income from $3,635,000 for First Quarter 2011 to $3,220,000 for the First Quarter 2012. This was a result of the combination of falling interest rates and slack loan demand.
Regarding GSB's performance during the First Quarter 2012, CEO and Chairman, William J. Martin, commented: "Management and the Board are pleased with our fine start to 2012. With our asset quality in an excellent position it is incumbent upon us to seek out new business in order to sustain our growth. While this is still difficult in the present economy it is a challenge that we are prepared to meet. Our sound balance sheet provides us with a strong platform from which we can take advantage of growth opportunities."
Two key asset quality indicators for BOS over the past five quarters witness the improvement in quality:
- Ratio of Non-Performing Loans plus OREO to Total Assets:
| 3-31-12 |
12-31-11 |
9-30-11 |
6-30-11 |
3-31-11 |
| .89% |
.93% |
.93% |
1.64% |
1.92% |
- Ratio of Non-Performing Assets to Equity Capital plus Loan Loss Reserve ("Texas Ratio"):
| 3-31-12 |
12-31-11 |
9-30-11 |
6-30-11 |
3-31-11 |
| 8.26% |
8.62% |
8.87% |
16.88% |
20.39% |
GSB has now reported eight consecutive quarters of profit. The last five quarters follow:
- Net Income Dollar Per Share Diluted:
| 3-31-12 |
12-31-11 |
9-30-11 |
6-30-11 |
3-31-11 |
|
| Net Income |
$728,000 |
$601,000 |
$680,000 |
$624,000 |
$433,000 |
| $ Per Share Diluted |
$.28 |
$.23 |
$.26 |
$.23 |
$.17 |
As of March 31, 2012 the Bank's Tier One Capital stood at $38,918,000 and GSB's Tier One Capital was $39,867,000. The Leverage Capital Ratio for the Bank and GSB were 9.58% and 9.80%, respectively. By all regulatory measures the Bank and GSB are considered well capitalized.
Comparing income statements and balance sheets for the Quarters ending March 31, 2012 and March 31, 2011 the following highlights are noted:
- Net Interest Income, as mentioned earlier, was down 11% ($415,000) from First Quarter 2011. The slight (2%) decrease in loan outstandings and falling rates caused this reduction. For the comparative quarters Net Interest Margin fell from 4.23% in 2011 to 3.55% in 2012.
- Non-Interest Income quarter-to-quarter was up 181% ($595,000) as previously described.
- The Provision for Possible Loan Losses plus OREO Expense and Valuation Allowance for First Quarter 2012 was $257,000 representing a 36% improvement over the First Quarter 2011 figure of $402,000.
- Total Deposits at March 31, 2012 stood at $354,638,000, a 9% increase over the March 31, 2011 figure of $324,723,000.
- Total Loans at March 31, 2012 were $233,569,000 down 2% from total loans at March 31, 2011 of $237,552,000. The March 31, 2012 total, however, represented a $5,902,000 (2.6%) increase over the December 31, 2011 figure of $227,667,000.
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 |
|||
| 3/31/2012 |
3/31/2011 |
CHANGE |
CHANGE |
|
| ASSETS |
||||
| Cash and due from banks |
$ 9,681 |
$ 7,790 |
$ 1,891 |
24% |
| Federal funds sold |
- |
- |
- |
- |
| Securities, available-for-sale and held-to-maturity |
145,049 |
115,528 |
29,521 |
26% |
| Loans |
||||
| Construction |
4,625 |
9,167 |
(4,542) |
-50% |
| Commercial Real Estate |
192,703 |
183,742 |
8,961 |
5% |
| Commercial and Industrial |
34,216 |
42,516 |
(8,300) |
-20% |
| Consumer |
2,025 |
2,127 |
(102) |
-5% |
| Total Loans outstanding |
233,569 |
237,552 |
(3,983) |
-2% |
| Less: Allowance for Loan Losses |
4,221 |
5,099 |
(878) |
-17% |
| Loans, net |
229,348 |
232,453 |
(3,105) |
-1% |
| Bank premises and equipment, net |
548 |
648 |
(100) |
-15% |
| FHLB and FRB restricted stock |
2,509 |
2,201 |
308 |
14% |
| Other Real Estate Owned |
3,146 |
3,814 |
(668) |
-18% |
| Bank Owned Life Insurance |
10,275 |
9,900 |
375 |
4% |
| Accrued interest and other assets |
8,977 |
8,922 |
55 |
1% |
| TOTAL ASSETS |
$409,533 |
$381,256 |
$28,277 |
7% |
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||
| LIABILITIES |
||||
| Deposits |
||||
| Noninterest bearing |
$ 91,666 |
$ 85,574 |
$ 6,092 |
7% |
| NOW Accounts |
32,754 |
18,381 |
14,373 |
78% |
| Money Market and Savings |
109,855 |
94,047 |
15,808 |
17% |
| Time Deposits |
120,363 |
126,721 |
(6,358) |
-5% |
| Total Deposits |
354,638 |
324,723 |
29,915 |
9% |
| FHLB borrowings |
10,000 |
16,000 |
(6,000) |
-38% |
| Accrued interest and other liabilities |
3,620 |
2,555 |
1,065 |
42% |
| Junior subordinated debentures |
8,248 |
8,248 |
- |
0% |
| TOTAL LIABILITIES |
376,506 |
351,526 |
24,981 |
7% |
| SHAREHOLDERS' EQUITY |
||||
| Preferred convertible stock; Issued and outstanding, |
||||
| none in 2011 and 23,175 in 2010 |
- |
- |
- |
|
| Common stock; Issued and outstanding, |
||||
| 2,600,645 in 2012 and 2,595,006 in 2011 |
22,514 |
22,498 |
16 |
0% |
| Paid in Capital |
265 |
183 |
82 |
45% |
| Retained earnings |
9,820 |
7,187 |
2,633 |
37% |
| Accumulated other comprehensive income (loss), net of tax |
428 |
(138) |
566 |
-410% |
| TOTAL SHAREHOLDERS' EQUITY |
33,027 |
29,730 |
3,297 |
11% |
| TOTAL LIABILITIES & SHAREHOLDERS' EQUITY |
$409,533 |
$381,256 |
$28,277 |
7% |
| Book Value per common share |
$12.70 |
$11.46 |
$1.24 |
11% |
| Tier 1 Leverage ratio |
9.80% |
9.75% |
||
| Allowance for Loan Losses coverage ratio |
1.81% |
2.15% |
||
| Greater Sacramento Bancorp |
|||
| Consolidated Statement of Income |
|||
| (IN THOUSANDS) |
|||
| Unaudited |
|||
| Results of Operation |
|||
| Three Months Ending |
PERCENT |
||
| 3/31/2012 |
3/31/2011 |
CHANGE |
|
| Interest Income |
|||
| Interest and fees on Loans |
$ 2,921 |
$ 3,429 |
-15% |
| Interest on Investments |
770 |
744 |
3% |
| Total Interest Income |
3,691 |
4,173 |
-12% |
| Interest Expense |
|||
| Interest on Deposits |
402 |
473 |
-15% |
| Interest on Borrowed Funds |
69 |
65 |
6% |
| Total Interest Expense |
471 |
538 |
-12% |
| Net Interest Income |
3,220 |
3,635 |
-11% |
| Non-interest Income |
|||
| Service charges and other fees |
570 |
259 |
120% |
| Gain on the sale of securities |
354 |
70 |
406% |
| Total Non-interest Income |
924 |
329 |
181% |
| Total Revenue |
4,144 |
3,964 |
5% |
| Non-interest Expense |
|||
| Salaries and employee benefits |
1,655 |
1,614 |
3% |
| Occupancy expense |
258 |
279 |
-8% |
| Furniture and equipment expense |
155 |
140 |
11% |
| Other Operating expense |
815 |
928 |
-12% |
| Total Non-interest Expense |
2,883 |
2,961 |
-3% |
| Income from Operations |
1,261 |
1,003 |
26% |
| Provision for possible loan losses |
120 |
165 |
-27% |
| OREO Expense and Valuation Allowance |
137 |
237 |
-42% |
| Total Provision/OREO Expense |
257 |
402 |
-36% |
| Income before taxes |
1,004 |
601 |
67% |
| Income taxes |
276 |
168 |
64% |
| NET INCOME |
$ 728 |
$ 433 |
68% |
| Earnings per share: basic |
$0.28 |
$0.17 |
|
| Earnings per share: diluted |
$0.28 |
$0.17 |
|
| Net Interest Margin (tax equivalent) |
3.55% |
4.23% |
|
| Return on Average Assets |
0.72% |
0.46% |
|
| Return on Average Equity |
9.13% |
5.92% |
|
SOURCE Greater Sacramento Bancorp
WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?
Newsrooms &
Influencers
Digital Media
Outlets
Journalists
Opted In
Share this article