SACRAMENTO, Calif. and VISALIA, Calif., April 26, 2021 /PRNewswire/ — Suncrest Bank (OTCQX: SBKK) today reported unaudited financial results for the first quarter of 2021.
“Our momentum coming out of 2020 has continued through Q1 and the bank has posted another outstanding quarter in both earnings and balance sheet growth,” said Ciaran McMullan, President and CEO of Suncrest Bank.
“Earnings per share increased by 40% over the same quarter last year and our organic loan and deposit growth was extremely strong. Total loans, excluding PPP, increased at an annualized rate of 11% and total deposits increased by over 27% annualized,” McMullan added.
“While these results reflect a general improvement in economic conditions they are also directly attributable to the investments we have made in recruitment especially within our lending and portfolio management teams. Over the last two years we have hired ten new loan officers, many with experience gained at large national and regional banks, while carefully managing expense growth and keeping key cost ratios at industry leading levels.”
First Quarter 2021 Highlights
- Net income of $4.0 million, an increase of $1.1 million over Q1 2020
- Diluted EPS of $0.32, an increase of 39.1% over Q1 2020
- Total loan growth of $42.9 million or 5.23%
- Total loan growth (excluding PPP) of $19.8 million or 2.81% (11.2% annualized)
- New originations1 (excluding PPP) of $46.3 million
- Total deposits (excluding brokered) increased $70.8 million or 6.84% (27.37% annualized)
- Return on average tangible assets of 1.28%
- Return on average tangible equity of 12.62%
- Efficiency ratio of 52.14%
- Tangible book value per share of $10.02
- Tier 1 leverage ratio of 9.52%
- Paid Special Dividend of $0.25 cents
- Launched small business grant program for women-owned businesses
- Joined Greater Sacramento Region FinTech Consortium
1 Includes unfunded commitments
Net income for the quarter was $4.0 million compared to $4.35 million for the linked quarter and $2.88 million for the same quarter last year. The decrease over the linked quarter is primarily due to gain on sale of correspondent bank stock of approximately $611,000 recorded in the linked quarter. This was partially offset by a reduction in provision for loan losses of $250,000. The increase over the first quarter of 2020 is mostly driven by an increase in net interest income and the reduction in provision for loan losses, partially offset by an increase in noninterest expense.
Interest income decreased to $11.5 million versus $11.8 million for the linked quarter and increased from $10.9 million compared to the first quarter of 2020. The decrease over the linked quarter is primarily a result of a reduction in the loan yield from 4.78% in the linked quarter to 4.62% for the quarter ended March 31, 2021. Interest expense declined to $518,000 as compared to $648,000 over the linked quarter due to a decline in our cost of funds to 19 basis points (bps) from 23…