Visalia-based bank, Suncrest, reports 1Q net income, earnings per share are double compared to the 1Q 2017
VISALIA – Suncrest Bank has doubled its earnings in the last year.
On April 27, the Visalia-based bank reported its unaudited financial results for the first quarter of 2018. Compared with the first quarter of 2017, Suncrest more than doubled its net income from $695,000 to $1.46 million and its earnings per share from 10 cents to 21 cents.
“This was a strong quarter for Suncrest with net income of $1.46 million and an increase in earnings per share of 110% over the prior year,” said Ciaran McMullan, president and CEO of Suncrest Bank.
Revenues benefited from higher core net interest income which increased by 5% on a linked quarter basis and by 25% over the prior year while operating expenses remained relatively flat. Non-interest expense, excluding nonrecurring costs, has decreased by just under 1% compared to the prior year. Core net interest income for the quarter was $5.4 million, an increase of $1.1 million or 24.5% over the same quarter last year. Total loans increased by $9.5 million, or 2.7% during the quarter. New loan originations set a single quarter record with $47.5 million during the first quarter of 2018. Total deposits increased by $16.5 million, or 3.5% during the quarter.
Non-interest expense excluding non-recurring costs was $3.3 million for the quarter, a decrease of approximately $27,000 or 0.8% compared to the first quarter of 2017, and an increase of approximately $65,000 or 2.0% compared to the linked quarter. Included in non-interest expense were salaries and employee benefits expense of $1.9 million for the quarter, a decrease of approximately $121,000 or 6.0% compared to the first quarter of 2017, and an increase of approximately $33,000 or 1.8% compared to the linked quarter.
The improvement over the same period last year is a result of a decline in FTE as a result of a reduction in staff related to the merger with Security First Bank. Suncrest received regulatory approval for its $18 million acquisition of Security First Bank in September 2016. Security First Bank is headquartered in Fresno, operating one branch with approximately $105 million in total assets at June 30, 2016.
McMullan expected Suncrest’s merger with Community Business Bank Bancorp (CBBC) to close during the second quarter, following receipt of all regulatory approvals. Suncrest announced the $62.5 million deal to acquire the CBBC based on Nov. 7. CBBC is headquartered in West Sacramento, Calif., with $325 million in assets and two branches located in West Sacramento and Lodi, Calif. and a Loan Production Office in Roseville, Calif.
Suncrest Bank is headquartered in Visalia and operates four branches located in Visalia, Porterville, Yuba City and Kingsburg. Suncrest is regularly rated Five Stars by Bauer Financial as one of the nation’s strongest financial institutions and both mergers have helped Suncrest Bank rank among the Top 200 List of Healthiest Banks in the United States and be named to the 2018 OTCQX Best 50 List for the second year running.
Suncrest Bank 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 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.