Click here to close now.




















Welcome!

News Feed Item

Seacoast Commerce Bank Announces Fourth Quarter and Full-Year Results With Record Loan, Deposit and Asset Growth

SAN DIEGO, CA -- (Marketwired) -- 01/16/14 -- Seacoast Commerce Bank (OTCQB: SCCB) today announced its unaudited results of operations for the fourth quarter and full-year ended December 31, 2013. For the fourth quarter, the Bank reported net income of $250 thousand, consistent with previous quarters, compared to $58 thousand in the fourth quarter of 2012, or a 333% increase. For the full-year, the Bank reported net income of $1.0 million, compared to net income of $204 thousand in 2012, after excluding the one-time non-recurring tax benefit recorded in 2012, a 391% increase. This is the bank's 14th consecutive quarterly profit.

As has been previously discussed, the bank planned to manage its net income down to a modest level as it focused on reducing loan sales and retaining more of the guaranteed portions of the SBA loans funded. Retaining, versus selling loans, not only results in more balance sheet growth, but over time, produces more consistent, predictable and reoccurring interest income, and more long-term value for shareholders.

Assets reached a record $340.2 million, up $139.5 million or 69.5%; gross loans reached a record $288.7 million, up $114.1 million or 65.4%; deposits reached a record $310.2 million, up $151.2 million or 95.1%, with no wholesale or brokered deposits.

The Bank's growth and long-term shareholder value creation strategy is based on holding more saleable SBA loans. The Bank grew its inventory of guaranteed, saleable SBA loans by $32.3 million in the fourth quarter, versus growth of $18.5 million in the third quarter, growth of $20.0 million in the second quarter, and growth of $16.0 million in the first quarter.

Had the bank sold all its fourth quarter saleable loan production it could have generated $2.0 million in net after-tax income in the fourth quarter, based on actual gains received on the loans that were sold. For comparative purposes, that potential $2.0 million fourth quarter net income would have been 26.4% greater than the 2012 potential fourth quarter net income of $1.6 million had all fourth quarter 2012 saleable production been sold.

For the full-year 2013, the Bank's growth in saleable guaranteed SBA loans held was $85.5 million. Assuming those loans were sold at year-end at current actual sales premium levels, the bank could have recorded a net after-tax income of approximately $5.8 million, which could be compared to a net income of $3.6 million for 2012 (excluding any tax benefits) if all salable production was sold in 2012. That result would equate to a 62.6% increase in comparative net income for 2013.

Selected highlights for full year-end 2013 versus year-end 2012:

Balance Sheet Metrics

  • Asset growth of $139.5 million, or 69.5%, to a record $340.2 million;
  • Loan growth of $114.1 million, or 65.4%, to a record $288.7 million;
  • SBA loans funded up $29.3 million, or 19.2%, to a record $181.8 million;
  • SBA loans held for sale up $85.5 million, or 115.8%, to a record $159.4 million;
  • The Bank services a total of 700 SBA loans for $462.3 million, of which the guaranteed portion on 335 loans, totaling $190.3 million, has been sold in the secondary market;
  • Deposit growth of $151.2 million, or 95.1%, to a record $310.2 million;
  • Brokered deposits reduced $25 million, or 100%, to $-0-;
  • Borrowings (wholesale funding) reduced $17 million, or 100%, to $-0-;
  • Non-Interest Bearing deposit growth of $6.5 million or 17.4%, to $44.1 million;
  • Shareholders' Equity growth of $3.9 million, or 17.2%, to a record $26.4 million, with $1 million in net income and $2.4 million in capital contributed from the exercise of shareholders 2010 Warrants;

Income Statement Metrics

  • Interest Income of $13.6 million, up $6.0 million, or 79.5% from 2012;
  • Net Interest Income of $12.3 million, up $5.6 million, or 82.7% from 2012;
  • Gain-on-sale of loans managed down to just $4.1 million versus $4.3 million in 2012;
  • Percent of loans sold in 2013 reduced to 34% from 39% in 2012 and 93% in 2011;
  • Allowance for Loan Loss provision ("ALLL") for the year was $1.5 million versus $1.2 million in 2012;
  • Positive operating leverage with growth in total revenue of 34.9% versus growth in total expenses of 24.7%;

Other Metrics

  • The Bank had net charge-offs of $25 thousand in 2013 versus net charge-offs of $167 thousand in 2012, all from legacy (non-SBA) loans;
  • Year-end ALLL of $4.9 million was 3.89% of loans held for investment and 600% of non-performing loans;
  • Non-performing loans were reduced 62.7% to just $820 thousand, from 2.2 million;
  • Non-performing loan to total loans down to 0.28%, from 1.26% in 2012;
  • Non-performing assets to Tier 1 Capital plus ALLL (Texas Ratio) down to 2.73%, from 9.90% in 2012;
  • Since inception of the Bank's SBA program, the bank has funded 760 loans for $553.9 million in small business financing, of which only one loan has defaulted and been foreclosed on, which was subsequently sold with no loss to the bank.

The Bank has always maintained capital levels well above the FDIC's highest designation, "well capitalized", and had capital ratios at December 31, 2013 as follows:

                                               FDIC "Well Capitalized" Level
-- Tier 1 Capital Ratio:                8.27%              5.00%
-- Tier 1 Risk-Based Capital Ratio:    14.22%              6.00%
-- Total Risk-Based Capital Ratio:     15.49%             10.00%

As reported by the U.S. Small Business Administration ("SBA") for their fiscal year ended September 30, 2013, Seacoast Commerce Bank was the 9th largest SBA lender in the Nation, up from the 14th largest lender in 2012 and the 18th largest in 2011. SBA rankings are based on total dollars approved, with Seacoast having $217 million approved in 2013. Seacoast funded $182 million in new SBA loans during calendar year 2013 compared to $152 million funded in 2012, a 19% increase. Of the $182 million funded in 2013, fourth quarter fundings were a record $55 million, compared to $47 million in the third quarter, $44 million in the second quarter, and $37 million in the first quarter of 2013. In addition to being ranked the 9th largest SBA lender in the Nation, Seacoast was the 4th largest SBA lender in California; the 3rd largest SBA lender the in Las Vegas, Nevada District, the 5th largest SBA lender in the Phoenix, Arizona District; the 7th largest SBA lender in the Seattle, Washington District; and the 10th largest SBA lender in the Dallas/Fort Worth District.

Richard M. Sanborn, President & Chief Executive Officer, commented, "We are very pleased to be able to report another record year of performance. Growth in the bank across all categories, loans, deposits and assets, was tremendous, and a direct result of the focus and hard work of our entire team. From the loan and deposit production staff to the back-office support staff, it was a record breaking year. Our strategy change up two years ago to hold more loans is paying off as we knew it would. Our interest income was up almost 80% in 2013 on loan production growth of 19%. This validates our strategy that holding more loans will, over time, produce more consistent, predictable, reoccurring income, and add more long-term shareholder value. We look forward to communicating more about our 2014 plans at our annual shareholder's meeting in May," Sanborn concluded.

Allan W. Arendsee, Chairman of the Board, stated, "The Board of Directors is again very proud of our team for doing what's right; focusing on adding long-term shareholder value. The Board is firmly committed to ensuring the bank is operated in a safe and sound manner, and with a strategy that will provide shareholders with a superior return on their investment over the long run," Arendsee concluded.

Seacoast Commerce Bank is a business bank headquartered in San Diego, California, with full-service branches in San Diego, Chula Vista, and Glendale, California, and production offices in San Diego, Orange County, Los Angeles, Sacramento and San Ramon, California; Phoenix, Arizona; Las Vegas and Reno, Nevada; Houston and Dallas, Texas; Salt Lake City, Utah; and Bellevue, Washington. For more information on the bank please visit our website at www.sccombank.com or contact Richard M. Sanborn, President and Chief Executive Officer at 858-432-7001.

This press release contains some non-GAAP financial analysis provided to supplement information regarding the Bank's performance, and to enhance investors' overall understanding of such financial performance.

Certain statements in this press release, including statements regarding the anticipated development and expansion of the Bank's business, and the intent, belief or current expectations of the Bank, its directors or its officers, are "forward-looking" statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such "forward-looking" statements. These risks and uncertainties include, but are not limited to, risks related to the local and national economy, the Bank's performance and regulatory matters.



                          Seacoast Commerce Bank
                 Selected Financial Data - Unaudited (000)

                                              For the Year Ended       %
                                            12/31/2013  12/31/2012  Change
                                            ----------  ----------  ------
Balance Sheet Items
Total Loans                                    288,656     174,533    65.4%
SBA Loans Available for Sale (Memo Only)       159,365      73,834   115.8%
                                            ----------  ----------
Total Assets                                   340,173     200,702    69.5%
                                            ----------  ----------
Total Deposits                                 310,178     158,974    95.1%
                                            ----------  ----------
Shareholders' Equity                            26,356      22,485    17.2%
                                            ----------  ----------

Income Statement Items
Total Interest Income                           13,627       7,592    79.5%
Total Interest Expense                           1,341         868    54.4%
                                            ----------  ----------
Net Interest Income                             12,286       6,724    82.7%
                                            ----------  ----------

Provision for Loan Losses                        1,500       1,200    25.0%
Non-Interest Income                              5,840       6,709   (13.0%)
Non-Interest Expense                            14,998      12,028    24.7%
                                            ----------  ----------
Pre-Tax Income                                   1,627         204   697.5%
                                            ----------  ----------
Income Tax (Benefit)                               625      (3,799)  116.5%

Net Income                                       1,002       4,003   (75.0%)
                                            ==========  ==========
Net Income (*Excluding Tax Benefit)              1,002         204   391.2%
                                            ==========  ==========

Economic Value Added (EVA) of loans not
 sold                                            8,296       5,900    40.6%
                                            ----------  ----------
Net Income with EVA (assumes 41% tax)            5,776       5,764     0.2%
                                            ==========  ==========

Basic Earnings per Share                          0.18        0.90   (79.9%)
Basic Earnings per Share with EVA                 1.08        1.30   (16.7%)
Book Value per Share                              4.01        4.16    (3.5%)
Book Value per Share with EVA                     4.88        4.93    (1.1%)
Return on Average Assets                          0.39%       2.49%  (84.5%)
Return on Average Assets with EVA                 2.22%       3.59%  (38.0%)
Return on Average Common Equity                   4.56%      24.86%  (81.7%)
Return on Average Common Equity with EVA         27.19%      35.82%  (24.1%)
Shares Outstanding                           5,573,032   4,444,742    25.4%


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at @ThingsExpo, James Kirkland, Red Hat's Chief Arch...
For IoT to grow as quickly as analyst firms’ project, a lot is going to fall on developers to quickly bring applications to market. But the lack of a standard development platform threatens to slow growth and make application development more time consuming and costly, much like we’ve seen in the mobile space. In his session at @ThingsExpo, Mike Weiner, Product Manager of the Omega DevCloud with KORE Telematics Inc., discussed the evolving requirements for developers as IoT matures and conducte...
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Malicious agents are moving faster than the speed of business. Even more worrisome, most companies are relying on legacy approaches to security that are no longer capable of meeting current threats. In the modern cloud, threat diversity is rapidly expanding, necessitating more sophisticated security protocols than those used in the past or in desktop environments. Yet companies are falling for cloud security myths that were truths at one time but have evolved out of existence.
Digital Transformation is the ultimate goal of cloud computing and related initiatives. The phrase is certainly not a precise one, and as subject to hand-waving and distortion as any high-falutin' terminology in the world of information technology. Yet it is an excellent choice of words to describe what enterprise IT—and by extension, organizations in general—should be working to achieve. Digital Transformation means: handling all the data types being found and created in the organizat...
Public Cloud IaaS started its life in the developer and startup communities and has grown rapidly to a $20B+ industry, but it still pales in comparison to how much is spent worldwide on IT: $3.6 trillion. In fact, there are 8.6 million data centers worldwide, the reality is many small and medium sized business have server closets and colocation footprints filled with servers and storage gear. While on-premise environment virtualization may have peaked at 75%, the Public Cloud has lagged in adop...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
The time is ripe for high speed resilient software defined storage solutions with unlimited scalability. ISS has been working with the leading open source projects and developed a commercial high performance solution that is able to grow forever without performance limitations. In his session at Cloud Expo, Alex Gorbachev, President of Intelligent Systems Services Inc., shared foundation principles of Ceph architecture, as well as the design to deliver this storage to traditional SAN storage co...
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
MuleSoft has announced the findings of its 2015 Connectivity Benchmark Report on the adoption and business impact of APIs. The findings suggest traditional businesses are quickly evolving into "composable enterprises" built out of hundreds of connected software services, applications and devices. Most are embracing the Internet of Things (IoT) and microservices technologies like Docker. A majority are integrating wearables, like smart watches, and more than half plan to generate revenue with ...
The Cloud industry has moved from being more than just being able to provide infrastructure and management services on the Cloud. Enter a new era of Cloud computing where monetization’s services through the Cloud are an essential piece of strategy to feed your organizations bottom-line, your revenue and Profitability. In their session at 16th Cloud Expo, Ermanno Bonifazi, CEO & Founder of Solgenia, and Ian Khan, Global Strategic Positioning & Brand Manager at Solgenia, discussed how to easily o...
The Internet of Everything (IoE) brings together people, process, data and things to make networked connections more relevant and valuable than ever before – transforming information into knowledge and knowledge into wisdom. IoE creates new capabilities, richer experiences, and unprecedented opportunities to improve business and government operations, decision making and mission support capabilities.
In their session at 17th Cloud Expo, Hal Schwartz, CEO of Secure Infrastructure & Services (SIAS), and Chuck Paolillo, CTO of Secure Infrastructure & Services (SIAS), provide a study of cloud adoption trends and the power and flexibility of IBM Power and Pureflex cloud solutions. In his role as CEO of Secure Infrastructure & Services (SIAS), Hal Schwartz provides leadership and direction for the company.
Rapid innovation, changing business landscapes, and new IT demands force businesses to make changes quickly. The DevOps approach is a way to increase business agility through collaboration, communication, and integration across different teams in the IT organization. In his session at DevOps Summit, Chris Van Tuin, Chief Technologist for the Western US at Red Hat, will discuss: The acceleration of application delivery for the business with DevOps
The speed of software changes in growing and large scale rapid-paced DevOps environments presents a challenge for continuous testing. Many organizations struggle to get this right. Practices that work for small scale continuous testing may not be sufficient as the requirements grow. In his session at DevOps Summit, Marc Hornbeek, Sr. Solutions Architect of DevOps continuous test solutions at Spirent Communications, explained the best practices of continuous testing at high scale, which is rele...