News Column

Security California Bancorp Reports 20% Increase in Net Income for Second Quarter of 2014

August 8, 2014



By a News Reporter-Staff News Editor at Real Estate Weekly News -- Security California Bancorp (OTCBB: SCAF), the parent company of Security Bank of California, reported net income of $858,000, or 15 cents per share, for the second quarter of 2014, an increase of 20% from net income of $712,000, or 12 cents per share, for the second quarter of 2013. Second Quarter 2014 Highlights Total loans were $391 million at June 30, 2014, an increase of 21% year-over-year

Total deposits were $465 million at June 30, 2014, an increase of 13% year-over-year

Total assets were $591 million at June 30, 2014, an increase of 19% year-over-year

Net interest margin was 3.76%, an increase of 4 basis points from the prior quarter

"We continue to steadily grow our franchise, resulting in another quarter of strong year-over-year earnings growth," said James A. Robinson, Chairman and CEO of Security California Bancorp. "The growth in our client base over the past year resulted in a 21% increase in total loans, a 13% increase in total deposits, and a 20% increase in net income. We anticipate a continuation of these positive trends in the second half of the year. Economic conditions continue to improve in Inland Southern California and we have a healthy pipeline of business development opportunities. We had several loans that closed early in the third quarter, which gives us a good start on driving additional balance sheet and earnings growth over the remainder of 2014." Second Quarter 2014 Summary Results Net Interest Income and Net Interest Margin Net interest income for the second quarter of 2014 was $5.2 million, an increase of 22% from $4.2 million in the second quarter of 2013. The increase in net interest income was primarily driven by growth in interest-earning assets.

Net interest margin increased 4 basis points to 3.76% from 3.72% for the prior quarter. The increase in net interest margin was primarily attributable to higher asset yields. Non-interest Income Non-interest income for the second quarter of 2014 was $858,412, an increase of 7.3% from $800,296 in the year-earlier period. The increase in non-interest income was primarily due to higher gain on sales of SBA loans. Non-interest Expense Non-interest expense was $4.2 million for the second quarter of 2014, an increase of 8.4% from $3.8 million in the year-ago period. The increase in non-interest expense was primarily due to an increase in personnel to support the Bank's growth. Balance Sheet Total Assets Total assets were $591 million at June 30, 2014, an increase of 19% from $498 million at June 30, 2013. Total Loans Total loans were $391 million at June 30, 2014, an increase of 21% from $323 million at June 30, 2013. The increase in total loans was primarily driven by growth in the commercial and industrial and commercial real estate portfolios. Total Deposits Total deposits were $465 million at June 30, 2014, an increase of 13% from $413 million at June 30, 2013. The increase in total deposits was primarily driven by growth in non-interest bearing and savings and money market accounts. Asset Quality Total non-performing assets were $6.1 million, or 1.04% of total assets, at June 30, 2014, compared with $5.7 million, or 0.98% of total assets, at March 31, 2014. The increase in non-performing assets was attributable to one single-family residential property taken into Other Real Estate Owned ("OREO"), which represents the first property taken into OREO since the Company's inception. The Company anticipates selling the OREO property by the end of the year at no loss.

At June 30, 2014, total non-accrual loans were $5.4 million, or 1.38% of total loans, compared with $5.7 million, or 1.45% of total loans, at March 31, 2014.

During the second quarter of 2014, the Company recorded net charge-offs of $390,491, compared with no charge-offs during the first quarter of 2014.

Keywords for this news article include: Real Estate, Security California Bancorp.

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Source: Real Estate Weekly News


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