Suncrest Bank Reports Record Third Quarter Earnings of $1.37 Million and Surpasses $500 Million in Total Assets. EPS Increase of 46%.

Net income for the third quarter was a record $1.37 million or $0.19 per diluted share compared with net income of $0.68 million or $0.13 per diluted share for the third quarter of 2016. The comparability of third quarter net income to the same quarter last year and the linked quarter is impacted by the recognition of fair value discount accretion on acquired loans during the quarter of approximately $543,000 pre-tax or $0.04 per diluted share.

Net interest income for the quarter was $5.5 million, an increase of $2.1 million or 61.52% over the same quarter last year and non-interest income was $0.42 million, an increase of 9.83% over the same quarter last year. Non-interest income for the quarter includes approximately $158,000 in income generated through the gain on sale of a number of government guaranteed loans.

Noninterest expense for the quarter was $3.19 million, an increase of approximately $30,000 or less than 1% compared to the linked quarter and an increase of approximately $640,000 or 25% compared to the third quarter of 2016. The increase over the prior year is primarily due to the impact of absorbing the ongoing operational costs of the Security First Bank acquisition in December of 2016.

Core net interest margin, which removes accretion of loan fair value marks and non-recurring items such as recovery of interest, was 4.21% for the quarter, an increase of 4 basis points from the linked quarter and the third quarter of 2016. This increase was primarily due to the reduction in our cost of funds of 3 basis points.

Balance Sheet

Total assets increased during the quarter by $44.3 million, or 9.14% and have increased year-to-date by $81.7 million, or 18.25%. Year over year growth was $176.1 million, or 49.87%. 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 $72.1 million or approximately 20%.

Total loans increased by $10.4 million during the quarter or 3.09% and have grown by $40.0 million year-to-date or 12.99%. Loans secured by farmland increased by approximately $3 million during the quarter as did loans to finance agricultural production. "The bank's farmland and agricultural production portfolio is well diversified across multiple crop types including; nuts, citrus, tree fruit, grapes and row crops," said Peter Nutz, Chief Credit Officer of Suncrest Bank. "The net change in our loans to finance agricultural production during the quarter included approximately $2 million in expected annual pay downs of crop lines in our Yuba-Sutter Market. These pay downs were offset by the origination and funding of a new agricultural production loan, for an existing long term borrower of the bank, for approximately $7 million. This new loan is financing a multi-crop farming operation in the South Valley and is expected to be paid down to approximately zero through the fourth quarter."

New loan originations together with new unfunded commitments during the quarter were $34.9 million. This loan growth has all been sourced locally through direct borrower relationships rather than through purchased participations or loan pool investments.

Total deposits increased during the quarter by $42.9 million or 10.10%. Noninterest-bearing demand deposits increased by $28.7 million or 21.11% and Savings, NOW and Money Market deposits increased by $19.4 million, or 9.19%. Some of this inflow, specifically into business checking and business money market accounts, is attributable to the seasonal nature of a number of our agribusiness customers, packing and processing houses in particular, who start selling this year's harvest in the latter half of the third quarter and throughout the fourth quarter. Time deposits decreased during the quarter by $5.2 million or 6.63%.

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 $1.95 million or 0.37% of total assets at September 30, 2017 compared with $2.41 million or 0.50% of total assets at June 30, 2017. This decrease was primarily due to the full pay off of two loans and the reclassification of another relationship.

The company recorded a loan loss provision of $350,000 for the third quarter, compared to $400,000 for the linked quarter. The allowance for loan losses as a percentage of total loans, excluding impaired loans and acquired loans that have been marked to fair value, was 1.27% at September 30, 2017 compared to 1.27% at June 30, 2017. In addition, the company allocated a specific reserve of $200,000 related to two loans of approximately $380,000 that were downgraded to non-accrual during the quarter.

Capital

Suncrest Bank remained well capitalized at September 30, 2017. All of the Bank's capital ratios are above minimum regulatory standards for "well capitalized" institutions. During the quarter we adjusted the risk weighting on our 1-4 family loan pool and as a result our Total Capital (to risk weighted assets) increased by 39 basis points.

At September 30, 2017 the tangible book value per common share was $8.03 with common shares issued of 7,002,594 as of the same date. This compares to a tangible book value per common share of $7.83 at June 30, 2017 and $7.63 at March 31, 2017. 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)
		September 30,		June 30,		December 31,		September 30,
		2017		2017		2016		2016
ASSETS
Cash and Due from Banks		$           24,718,147		$           23,474,487		$       25,567,875		$       20,547,026
Federal Funds Sold		74,053,000		54,858,000		36,979,000		53,028,000
TOTAL CASH AND CASH EQUIVALENTS		98,771,147		78,332,487		62,546,875		73,575,026
Investment Securities Available for Sale (AFS)		60,079,743		46,360,233		53,567,064		47,481,118
Loans:
Total Loans		347,476,766		337,052,420		307,517,754		221,809,956
Allowance for Loan Losses		(            3,412,669)		(            3,062,669)		(         2,496,163)		(         2,496,163)
NET LOANS		344,064,097		333,989,751		305,021,591		219,313,793
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		5,943,586		5,951,153		4,218,360		2,886,773
Other Real Estate Owned		313,720		313,720		788,842		635,842
Bank Owned Life Insurance		5,208,420		5,177,621		5,114,446		2,124,844
Goodwill		3,325,220		3,325,220		3,325,220 Werbung Mehr Nachrichten zur SUNCREST BANK VISALI Aktie kostenlos abonnieren E-Mail-Adresse Bitte überprüfe deine die E-Mail-Adresse. Benachrichtigungen von ARIVA.DE (Mit der Bestellung akzeptierst du die Datenschutzhinweise) -1 Vielen Dank, dass du dich für unseren Newsletter angemeldet hast. Du erhältst in Kürze eine E-Mail mit einem Aktivierungslink. Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte. Andere Nutzer interessierten sich auch für folgende News 13:22 - ARIVA.DE Redaktion Airbus-Aktie verliert 2,38 Prozent (158,30 €) 07:47 - PR Newswire Everest Global Plc - Result of AGM 02:00 - PR Newswire International Business Machines Corp - Doc re Form 8-K SolarBank    Wie die Revolution der sauberen Energie eine solide Investitionsmöglichkeit bieten könnte weiterlesen» Anzeige wo-site-teaser-box-16755_site-teaser-box_2024-04-25_09%253A00%253A00_2024-04-26_09%253A00%253A59