RIVERSIDE, Calif.--(BUSINESS WIRE)--Security California Bancorp (OTCBB:SCAF), the parent company of Security Bank of California, reported net income for the quarter ended March 31, 2014 of $999,000.
Highlights of the Company’s performance included:
- Net Income for the first quarter of 2014 was $999,000, a 20% increase over first quarter 2013 net income of $830,000
- Diluted earnings per common share were $0.17 for the quarter, compared with $0.14 in the same quarter of 2013
- Total assets were $580 million at March 31, 2014, an increase of $84 million, or 17%, over the past 12 months
- Total loans were $390 million at March 31, 2014, an increase of $62 million, or 19%, over the past 12 months
- Total deposits were $460 million at March 31, 2014, an increase of $48 million, or 12%, over the past 12 months
“Our continued success in attracting new commercial customers to the Bank helped drive another quarter of strong balance sheet growth, with total loans and total deposits increasing at annualized rates of 28% and 13%, respectively,” said James A. Robinson, Chairman and CEO of Security California Bancorp. “With our increased scale, we are seeing steady improvement in earnings and the level of returns we are generating. We continue to have a strong foundation of capital and liquidity to support our business development activities, which should lead to further gains in market share and the continued growth in the value of our franchise.”
The following summarizes the notable changes in the major statement of conditions’ classifications, which have contributed to the Bank’s consistent generation of sustainable core income:
Operating Performance: The Company’s net income of $999,000 includes the following breakdown by category with comparisons to the same period a year ago:
Net Interest Income was $5.0 million, an increase of $787,000, or 19%, primarily driven by growth in interest earning assets. Net interest margin increased to 3.72% during the first quarter of 2014, from 3.62% in the same period of the prior year, primarily due to a higher loan-to-deposit ratio, an increase in earning asset yields, and a reduction in the cost of funds.
Provision for Loan & Lease Losses (“PLLL”) was $248,000, compared to $300,000 in the same period of the prior year. The PLLL for the first quarter of 2014 was entirely attributable to the growth in total loans outstanding.
Non-Interest Income was $863,900, down from $926,109 in the same quarter of the prior year, primarily due to gains on sales of securities recognized in the first quarter of 2013.
Non-Interest Expense was $3.9 million, an increase of 14% from $3.4 million in the same quarter of the prior year, primarily due to an increase in personnel to support the Bank’s continued growth.
Total loans increased $62 million, or 19%, to $390 million at March 31, 2014, which reflects higher production levels resulting from the expansion of the Bank’s business development team.
Total deposits increased $48 million, or 12%, to $460 million at March 31, 2014, driven primarily by growth in core deposits.
Other Borrowings – FHLB was $52 million as of March 31, 2014 and has been a source of funding to support the growth in earning assets.
Asset Quality: The estimated Allowance for Loan & Lease Losses (“ALLL”) of $6.1 million represented 1.56% of consolidated total loans as of March 31, 2014. The Company’s fair valued nonperforming loans were $5.7 million, or 1.45% of total loans at March 31, 2014, a reduction of $300,000 from $6.0 million, or 1.83% of total loans, at March 31, 2013. The Company recorded no charge-offs during the first quarter of 2014. The Company’s Texas Ratio declined to 7.59% from 8.45% a year ago, indicating the improving quality of the Company’s loan portfolio (Texas Ratio represents non-performing + 90 days past due loans divided by Tangible Equity + ALLL).
Capital Requirements: At March 31, 2014, the Company had total capital of $64.9 million, qualifying the Company as “well capitalized” by regulatory standards. At March 31, 2014, the Company had a Tier 1 leverage ratio of 12.25%, a Tier 1 risk based ratio of 15.02%, and a Total risk based ratio of 16.28%, compared with regulatory minimum standards of 5.00%, 6.00% and 10.00%, respectively.
About Security California Bancorp and Security Bank of California
Security California Bancorp is traded on the Over the Counter Bulletin Board (“OTCBB”) under the symbol SCAF.OB. It offers, through its wholly owned subsidiary, Security Bank of California, personalized banking services to businesses and individuals through its full service offices in Riverside, San Bernardino, Redlands and Orange. It also has Loan Production Offices (“LPO”) in Irwindale and Palm Desert.
Forward-Looking Statements
This release 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 Bank is conducting its operations, including the real estate market in California and other factors beyond the Bank’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 Bank undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
| Security California Bancorp & Subsidiaries | |||||||||||||||||||
| Statements of Condition (Unaudited) | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| As of | Growth / Change | ||||||||||||||||||
| March 31 | March 31 | ||||||||||||||||||
| 2014 | 2013 | $ | % | ||||||||||||||||
| Assets | |||||||||||||||||||
| Cash and due from banks | $ | 13,829 | $ | 12,639 | $ | 1,190 | 9 | % | |||||||||||
| Interest bearing balances with banks | 18,963 | 18,596 | 367 | 2 | % | ||||||||||||||
| Investment securities available-for-sale | 142,946 | 126,242 | 16,704 | 13 | % | ||||||||||||||
| Loans, net of unearned income | 389,696 | 327,943 | 61,753 | 19 | % | ||||||||||||||
| Less: Allowance for loan and lease losses (ALLL) | (6,064 | ) | (5,999 | ) | (64 | ) | 1 | % | |||||||||||
| Net Loans | 383,632 | 321,943 | 61,689 | 19 | % | ||||||||||||||
| Premises and equipment, net | 3,937 | 4,019 | (82 | ) | -2 | % | |||||||||||||
| Accrued interest receivable | 1,725 | 1,571 | 154 | 10 | % | ||||||||||||||
| Other assets | 15,213 | 10,532 | 4,681 | 44 | % | ||||||||||||||
| Total Assets | $ | 580,245 | $ | 495,543 | $ | 84,702 | 17 | % | |||||||||||
| Liabilities | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing deposits | $ | 198,862 | $ | 188,376 | $ | 10,487 | 6 | % | |||||||||||
| Interest-bearing deposits | 261,160 | 223,987 | 37,173 | 17 | % | ||||||||||||||
| Total deposits | 460,022 | 412,363 | 47,659 | 12 | % | ||||||||||||||
| Brokered deposits | - | - | |||||||||||||||||
| Other borrowings - FHLB | 53,826 | 17,150 | 36,676 | 100 | % | ||||||||||||||
| Accrued interest and other liabilities | 1,521 | 784 | 737 | 94 | % | ||||||||||||||
| Total Liabilities | 515,369 | 430,297 | 85,072 | 20 | % | ||||||||||||||
| Shareholders' Equity | 64,876 | 65,246 | (370 | ) | -1 | % | |||||||||||||
| Total Liabilities and Shareholders' Equity | $ | 580,245 | $ | 495,543 | $ | 84,702 | 17 | % | |||||||||||
| Security California Bancorp & Subsidiaries | |||||||||||||||||
| Statements of Income (Unaudited) | |||||||||||||||||
| (In thousands) | |||||||||||||||||
| YTD & Quarter Ended | Change | ||||||||||||||||
| March 31 | March 31 | ||||||||||||||||
| 2014 | 2013 | $ | % | ||||||||||||||
| Net interest income | $ | 4,975 | $ | 4,188 | $ | 787 | 19 | % | |||||||||
| Provision for loan and lease losses ("PLLL") | 248 | 300 | (52 | ) | -17 | % | |||||||||||
|
Net interest income after PLLL |
4,727 | 3,888 | 839 | 22 | % | ||||||||||||
| Non interest income | 864 | 926 | (62 | ) | -7 | % | |||||||||||
| Non interest expense | 3,881 | 3,391 | 490 | 14 | % | ||||||||||||
| Net income (loss) before taxes | 1,710 | 1,423 | 287 | 20 | % | ||||||||||||
| Provision for income taxes | 711 | 593 | 118 | 20 | % | ||||||||||||
| Net income (loss) after taxes | $ | 999 | $ | 830 | $ | 169 | 20 | % | |||||||||
| Security California Bancorp & Subsidiaries | ||||||||
| Regulatory Capital Ratios (Unaudited) | ||||||||
| As of | ||||||||
| March 31 | March 31 | |||||||
| 2014 | 2013 | |||||||
| Tier 1 Leverage Capital Ratio | ||||||||
| Bank | 12 | .25% | 13 | .41% | ||||
| Regulatory - Well Capitalized | 5 | .00% | 5 | .00% | ||||
| Tier 1 Risk Based Capital Ratio | ||||||||
| Bank | 15 | .02% | 16 | .72% | ||||
| Regulatory - Well Capitalized | 6 | .00% | 6 | .00% | ||||
| Total Risk Based Capital Ratio | ||||||||
| Bank | 16 | .28% | 17 | .97% | ||||
| Regulatory - Well Capitalized | 10 | .00% | 10 | .00% | ||||
| Security California Bancorp & Subsidiaries | ||||||||
| Per Share Information (Unaudited) | ||||||||
| As of / Quarter Ended | ||||||||
| March 31 | March 31 | |||||||
| 2014 | 2013 | |||||||
| Book Value - Common Shares | ||||||||
| Outstanding Shares | 5,669,416 | 5,669,416 | ||||||
| Per Share | $ | 10.185 | $ | 10.250 | ||||
| Earnings - Common Shares | ||||||||
| Weighted Average Shares | 5,665,937 | 5,665,937 | ||||||
| Per Share | $ | 0.173 | $ | 0.143 | ||||
