Greater Sacramento Bancorp Reports First Quarter Earnings Up 68%

PR Newswire

SACRAMENTO, Calif., April 16, 2012

SACRAMENTO, Calif., April 16, 2012 /PRNewswire/ -- For the First Quarter 2012 ended March 31, Greater Sacramento Bancorp (GSB) GSCB, 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

Market News and Data brought to you by Benzinga APIs