VISALIA – 2017 was one of the record books for many industries in Visalia, including the only bank based in Visalia.
On Jan. 25, Suncrest Bank, which trades under the ticker symbol SBKK on the over-the-county stock exchange (OTCQX), announced its unaudited financial results for the fourth quarter of 2017. Highlights included a fourth quarter net income of $1.4 million, the third straight quarter over $1 million and the fourth straight quarter of record earnings, as well as ending the fourth quarter with total assets of $530 million, the third straight quarter surpassing the $500 million mark.
“2017 was an outstanding year in terms of organic balance sheet growth,” said Ciaran McMullan, President and CEO of Suncrest Bank. “We finished the year with approximately $530 million in total assets, an 18.2% increase over the previous year, while total deposits increased by 20.0% and total loans by 14.9%.”
Next year might be even better for the bank will be among the winners of the new Tax Cuts and Jobs Act signed in law on Dec. 22. The tax reform legislation reduced the federal corporate income tax rate from 35% to 21% effective Jan. 1, 2018. As a result, and in accordance with GAAP, the Company revalued its net deferred tax asset as of Dec. 31, 2017. This resulted in a one-time reduction in the value of our net deferred tax asset of $1.3 million or $0.18 per diluted share, recorded as additional income tax expense in the fourth quarter.
“Our pre-‘Tax Act’ net income set new records of $4.7 million for the full year and $1.4 million for the quarter, resulting in a year-over-year increase of over 90%,” McMullan said.
Core net income for the quarter, which excludes all non-recurring items, was a record $1.29 million or $0.18 per diluted share compared with core net income of $0.55 million or $0.11 per diluted share for the fourth quarter of 2016. Core net interest income for the quarter was $5.1 million, an increase of $1.7 million or 50.3% over the same quarter last year.
Non-interest expense for the quarter was $3.33 million, a decrease of approximately $44,000 or 1.3% compared to the fourth quarter of 2016, and an increase of approximately $142,000 compared to the linked quarter. The increase is largely explained by $130,000 in non-recurring costs associated with Suncrest’s upcoming acquisition of Community Business Bank. Announced in November, the $62.5 million deal would give Suncrest CBBC’s branches in West Sacramento and Lodi, Calif. and a Loan Production Office in Roseville, Calif.
“Our anticipated merger with Community Business Bank is progressing extremely well and we are excited by the opportunities that will come with a significantly expanded presence in the Greater Sacramento and Lodi markets,” McMullan said.
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 and 2018 was named to the 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.