Published: May 05, 2010
Greater Sacramento Bancorp Reports First Quarter 2010 Net Loss of $1,129,000
SACRAMENTO, Calif., May 5 /PRNewswire-FirstCall/ -- (GREATER SACRAMENTO BANCORP (OTC Bulletin Board: GSCB) -- For the First Quarter ended March 31, 2010 Greater Sacramento Bancorp (GSB), parent company of Bank of Sacramento (Bank), reported a net loss of $1,129,000 (-$.44 per share diluted) compared to Net Income of $460,000 ($0.18 per share diluted) for the First Quarter 2009.
The loss was the result of the write off and write down of $3.9 million of commercial and commercial real estate loans that had been previously classified as problem loan credits. As a result of the charge offs, the First Quarter's provision for possible future loan losses was also $3.9 million. The Allowance for Loan Loss at March 31, 2010 amounted to $4,742,000 or 1.90% of total loans outstanding compared to 1.82% at December 31, 2009; 1.53% at September 30, 2009; and 1.52% at June 30, 2009.
As of March 31, 2010 the ratio of non-performing loans plus OREO to Total Assets was 3.47% compared to 3.29% at December 31, 2009; 3.53% at September 30, 2009; and 3.02% at June 30, 2009.
Regarding the First Quarter loss and the quality of the Bank's loan portfolio, CEO and Chairman, William J. Martin commented: "During the First Quarter it became abundantly clear that the Bank had to take action on four specific problem loan relationships. These four credits constituted 93% of the $3.9 million that was charged off during the quarter with the largest involving a $1.8 million write down. One of the four credits involved the write off of $682,000 representing the remaining amount outstanding of a business loan following the liquidation of the company's business assets. The other three credits involved write downs to loan levels which we expect to collect."
Martin continued, "Since December 31, 2009 our OREO increased by $2.1 million from the addition of an industrial building and land in south Sacramento and our portion of an interest in a Modesto area office building. The Modesto office building ownership interest stems from the foreclosure by a group of banks, in which the Bank was a member, who had provided the construction funds. The building is now complete, 66% occupied, and is on the market."
In conclusion Martin stated: "As expected, the condition of the Sacramento market remains difficult and much of this year will be spent addressing and resolving our problem assets. However, it is important to note two very positive facts: (1) Our core earnings remain very sound and are improving. Our 'Income from Operations' (Earnings before Provision Expense and OREO Expense) at March 31, 2010 was $1,702,000, compared to $1,440,000 at March 31, 2009; (2) Likewise, our Capital position and an enhanced loan loss reserve insure that we will successfully manage through this difficult market."
As of March 31, 2010 the Bank's Tier One Capital stood at $33,003,000 and GSB's Tier One Capital was $33,931,000. The Leverage Capital Ratios for the Bank and GSB were 9.11% and 9.31%, respectively. By all regulatory measures the Bank and GSB are considered well capitalized.
In reviewing the First Quarter income statement and balance sheet performance the following highlights are noted:
-- Net Interest Income in the First Quarter of 2010 at $3,949,000 was 7%
greater than the First Quarter 2009 figure of $3,676,000. This
year-to-year increase was entirely attributable to a 40% reduction in
interest expense in the comparable quarters: $571,000 in the First
Quarter 2010 compared to $954,000 in the First Quarter 2009.
-- Net Interest Margin for the First Quarter 2010 was 4.77% compared to
4.65% for the First Quarter 2009 and 4.68% for the full year of 2009.
-- During the First Quarter 2010 $3,905,000 was added to the loan loss
reserve compared to $645,000 during the First Quarter 2009.
-- In the First Quarter 2010 gains from the sale of securities amounted to
$225,000 compared to $298,000 for the First Quarter 2009.
-- Non-interest expense, including OREO expense, in the First Quarter 2010
was slightly lower than the figure reported in 2009: $2,760,000 for
2010 and $2,877,000 for 2009.
-- Total Deposits at March 31, 2010 were $304.3 million, basically
unchanged from the March 31, 2009 figure of $303.8.
-- Total Net Loans of $245.0 million at March 31, 2010 were 5% lower than
the March 31, 2009 total of $257.1 million. This reduction is
reflective of the culling of the problem loans.
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
3/31/2010 3/31/2009 CHANGE CHANGE
--------- --------- ------ ------
ASSETS
Cash and due from
banks $5,272 $9,747 $(4,475) -46%
Federal funds sold - 285 (285) N.A.
Securities,
available-for
sale and held-
to-maturity 81,973 67,488 14,485 21%
Total Loans
outstanding 249,721 260,586 (10,865) -4%
Less: Allowance
for Loan Losses 4,742 3,456 1,286 37%
----- ----- -----
Loans, net 244,979 257,130 (12,151) -5%
Bank premises and
equipment, net 855 1,163 (308) -26%
FHLB and FRB
restricted stock 2,243 2,142 101 5%
Other Real Estate
Owned 7,389 3,837 3,552 93%
Accrued interest
and other assets 16,537 11,778 4,759 40%
------ ------ -----
TOTAL ASSETS $359,248 $353,570 $5,678 2%
======== ======== ====== ===
LIABILITIES AND
SHAREHOLDERS'
EQUITY
LIABILITIES
Deposits
Noninterest
bearing $86,208 $86,217 $(9) 0%
Interest bearing 218,081 217,603 478 0%
------- ------- ---
Total Deposits 304,289 303,820 469 0%
FHLB borrowings 18,094 11,594 6,500 56%
Accrued interest
and other
liabilities 1,182 1,448 (266) -18%
Junior
subordinated
debentures 8,248 8,248 - 0%
----- ----- ---
TOTAL LIABILITIES 331,813 325,110 6,704 2%
SHAREHOLDERS'
EQUITY
Preferred
convertible
stock; Issued and
outstanding,
23,175 in 2010 and
23.175 in 2009 515 515 - 0%
Common stock;
Issued and
outstanding,
2,567,893 in 2010
and 2,559,781 in
2009 21,983 21,872 111 1%
Paid in Capital 101 69 32 46%
Retained earnings 4,912 5,862 (950) -16%
Accumulated other
comprehensive
income (loss),
net of tax (76) 142 (218) -154%
--- --- ----
TOTAL
SHAREHOLDERS'
EQUITY 27,435 28,460 (1,025) -4%
------ ------ ------
TOTAL LIABILITIES
& SHAREHOLDERS'
EQUITY $359,248 $353,570 $5,678 2%
======== ======== ====== ===
ALLL Coverage 1.90%
Tier 1 Leverage
Ratio 9.36%
CONDENSED
STATEMENT OF
INCOME
Results of
Operation
Three Months
Ending DOLLAR PERCENT
-------------
3/31/2010 3/31/2009 CHANGE CHANGE
--------- --------- ------ ------
Interest Income $4,520 $4,630 $(110) -2%
Interest Expense 571 954 (383) -40%
--- --- ----
Net Interest
Income 3,949 3,676 273 7%
Noninterest Income 419 539 (120) -22%
--- --- ----
Total Revenue 4,368 4,215 153 4%
Noninterest
Expense 2,666 2,775 (109) -4%
----- ----- ----
Income from
Operations 1,702 1,440 262 18%
Provision for
possible loan
losses 3,905 645 3,260 505%
OREO Expense and
Valuation
Allowance 94 102 (8) -8%
--- --- ---
Total Provision/
OREO Expense 3,999 747 3,252 435%
Income before
taxes (2,297) 693 (2,990) NM
Income taxes (1,168) 233 (1,401) NM
------ --- ------
NET INCOME $(1,129) $460 $(1,589) NM
======= ==== =======
Earnings per
share: basic -$0.44 $0.18 -$0.62 NM
Earnings per
share: diluted -$0.43 $0.18 -$0.61 NM
Book Value per
common share $10.48 $10.92 -$0.43 -4%
Net Interest
Margin (tax
equivalent) 4.77% 4.65% 0.12%
Return on Average
Assets -1.26% 0.53% NM
Return on Average
Equity -16.04% 6.56% NM
SOURCE Greater Sacramento Bancorp
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