RIVERSIDE, Calif., Jan 20, 2015 (BUSINESS WIRE) — Security California Bancorp (OTCQB: SCAF), the parent company of Security Bank of California, today reported financial results for the fourth quarter and full year ended December 31, 2014.
For the fourth quarter of 2014, net income was $1.2 million, or 22 cents per share, an increase of 44% from net income of $865 thousand, or 15 cents per share, for the fourth quarter of 2013.
For the full year 2014, net income was $4.1 million, or 72 cents per share, an increase of 31% from net income of $3.2 million, or 55 cents per share, for the full year 2013.
Fourth Quarter 2014 Highlights
— Total loans were $422 million at December 31, 2014, an increase of 16% year-over-year
— Total deposits were $526 million at December 31, 2014, an increase of 18% year-over-year
— Total assets were $618 million at December 31, 2014, an increase of 11% year-over-year
— Total revenue of $6.3 million, an increase of 11% over fourth quarter of 2013
“We had another strong quarter of balance sheet growth and increasing profitability, which capped a record year for the Company,” said James A. Robinson, Chairman and CEO of Security California Bancorp. “For the full year, we generated double-digit increases in total assets, total loans, total deposits and book value per share. Our increasing scale helped drive greater efficiencies, resulting in a 31% increase in net income for the full year.
“Looking ahead to 2015, we anticipate another year of solid growth, as economic conditions in Inland Southern California continue to improve and we are seeing healthy loan demand among small- and middle-market companies. We also have a number of initiatives planned for 2015 to further expand our franchise, including increasing our presence in the Palm Desert, San Gabriel Valley and Temecula markets, and expanding our offerings in asset-based lending and healthcare banking. We look forward to bringing our high-touch, highly personalized approach to commercial banking to new markets throughout Southern California, continuing to grow our customer base, and further increasing the value for our franchise,” said Mr. Robinson.
Fourth Quarter 2014 Summary Results
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2014 was $5.6 million, an increase of 17% from $4.8 million in the fourth quarter of 2013. The increase in net interest income was primarily driven by growth in interest-earning assets and an increase in net interest margin.
Net interest margin was 3.75% in the fourth quarter of 2014, an increase of 8 basis points from the prior quarter. The increase was primarily due to higher average loan yields.
Non-interest income for the fourth quarter of 2014 was $754 thousand, a decrease of 13% from $864 thousand in the year-earlier period. The decrease in non-interest income was primarily due to lower SBA servicing income and gains on sales of securities.
Non-interest expense was $4.1 million for the fourth quarter of 2014, an increase of 5% from $3.9 million in the same period a year ago. The increase in non-interest expense was primarily due to an increase in personnel to support the Bank’s growth.
Total assets were $618 million at December 31, 2014, an increase of 11% from $557 million at December 31, 2013.
Total loans were $422 million at December 31, 2014, an increase of 16% from $364 million at December 31, 2013. The increase in total loans was primarily driven by growth in the commercial and industrial and commercial real estate portfolios.
Total deposits were $526 million at December 31, 2014, an increase of 18% from $445 million at December 31, 2013. The increase in total deposits was primarily driven by growth in non-interest bearing and savings and money market accounts.
Total non-performing assets were $5.2 million, or 0.84% of total assets, at December 31, 2014, compared with $5.3 million, or 0.87% of total assets, at September 30, 2014.
At December 31, 2014, total non-accrual loans were $5.2 million, or 1.23% of total loans, compared with $5.3 million, or 1.28% of total loans, at September 30, 2014.
During the fourth quarter of 2014, the Company had no charge-offs, consistent with the third quarter of 2014.
The Company recorded a provision for loan losses of $99,000 for the fourth quarter of 2014, primarily related to growth in the loan portfolio. As a result of the provision, the allowance for loan losses as a percentage of gross loans was 1.58% at December 31, 2014.
Security California Bancorp remained well capitalized as of December 31, 2014. All of the company’s capital ratios exceeded minimum regulatory standards for “well capitalized” institutions. As of December 31, 2014, the Company’s Tier 1 leverage ratio was 11.84%, the Tier 1 risk-based ratio was 14.77% and the Total risk-based ratio was 16.02%, compared with the regulatory minimum standards of 5%, 6% and 10%, respectively.
About Security California Bancorp and Security Bank of California
Security California Bancorp is the parent of Security Bank of California and is traded on the OTC Markets under the symbol SCAF. Through its full service offices in Riverside, San Bernardino, Redlands, Orange, and Palm Desert, Security Bank of California is a full service community bank, focusing on providing banking services for businesses, their owners and families, and successful individuals. The bank also has a Loan Production Office (“LPO”) in Irwindale. To learn more about the bank’s products and services, call 951-368-2265 or visit the company’s Web site at www.securitybankca.com
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.
SOURCE: Security California Bancorp
Financial Profiles for Security Bank of California Matt Andrejczak, 310-622-8241 firstname.lastname@example.org or Security Bank of California Thomas M. Ferrer EVP & Chief Financial Officer 951-368-2268 email@example.com