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%


Contact:
Richard M. Sanborn
President & Chief Executive Officer
Phone: 858-432-7001
Email: [email protected]

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
Infoblox delivers Actionable Network Intelligence to enterprise, government, and service provider customers around the world. They are the industry leader in DNS, DHCP, and IP address management, the category known as DDI. We empower thousands of organizations to control and secure their networks from the core-enabling them to increase efficiency and visibility, improve customer service, and meet compliance requirements.
In his session at 21st Cloud Expo, Michael Burley, a Senior Business Development Executive in IT Services at NetApp, will describe how NetApp designed a three-year program of work to migrate 25PB of a major telco's enterprise data to a new STaaS platform, and then secured a long-term contract to manage and operate the platform. This significant program blended the best of NetApp’s solutions and services capabilities to enable this telco’s successful adoption of private cloud storage and launchi...
Data scientists must access high-performance computing resources across a wide-area network. To achieve cloud-based HPC visualization, researchers must transfer datasets and visualization results efficiently. HPC clusters now compute GPU-accelerated visualization in the cloud cluster. To efficiently display results remotely, a high-performance, low-latency protocol transfers the display from the cluster to a remote desktop. Further, tools to easily mount remote datasets and efficiently transfer...
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
Cloud Expo, Inc. has announced today that Andi Mann and Aruna Ravichandran have been named Co-Chairs of @DevOpsSummit at Cloud Expo Silicon Valley which will take place Oct. 31-Nov. 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. "DevOps is at the intersection of technology and business-optimizing tools, organizations and processes to bring measurable improvements in productivity and profitability," said Aruna Ravichandran, vice president, DevOps product and solutions marketing...
Join IBM November 1 at 21st Cloud Expo at the Santa Clara Convention Center in Santa Clara, CA, and learn how IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Cognitive analysis impacts today’s systems with unparalleled ability that were previously available only to manned, back-end operations. Thanks to cloud processing, IBM Watson can bring cognitive services and AI to intelligent, unmanned systems. Imagine a robot vacuum that becomes your personal assistant tha...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, will lead you through the exciting evolution of the cloud. He'll look at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering ...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Avere delivers a more modern architectural approach to storage that doesn't require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbui...
In his general session at 21st Cloud Expo, Greg Dumas, Calligo’s Vice President and G.M. of US operations, will go over the new Global Data Protection Regulation and how Calligo can help business stay compliant in digitally globalized world. Greg Dumas is Calligo's Vice President and G.M. of US operations. Calligo is an established service provider that provides an innovative platform for trusted cloud solutions. Calligo’s customers are typically most concerned about GDPR compliance, applicatio...
Widespread fragmentation is stalling the growth of the IIoT and making it difficult for partners to work together. The number of software platforms, apps, hardware and connectivity standards is creating paralysis among businesses that are afraid of being locked into a solution. EdgeX Foundry is unifying the community around a common IoT edge framework and an ecosystem of interoperable components.
SYS-CON Events announced today that N3N will exhibit at SYS-CON's @ThingsExpo, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. N3N’s solutions increase the effectiveness of operations and control centers, increase the value of IoT investments, and facilitate real-time operational decision making. N3N enables operations teams with a four dimensional digital “big board” that consolidates real-time live video feeds alongside IoT sensor data a...
SYS-CON Events announced today that TidalScale will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. TidalScale is the leading provider of Software-Defined Servers that bring flexibility to modern data centers by right-sizing servers on the fly to fit any data set or workload. TidalScale’s award-winning inverse hypervisor technology combines multiple commodity servers (including their ass...
As hybrid cloud becomes the de-facto standard mode of operation for most enterprises, new challenges arise on how to efficiently and economically share data across environments. In his session at 21st Cloud Expo, Dr. Allon Cohen, VP of Product at Elastifile, will explore new techniques and best practices that help enterprise IT benefit from the advantages of hybrid cloud environments by enabling data availability for both legacy enterprise and cloud-native mission critical applications. By rev...
Companies are harnessing data in ways we once associated with science fiction. Analysts have access to a plethora of visualization and reporting tools, but considering the vast amount of data businesses collect and limitations of CPUs, end users are forced to design their structures and systems with limitations. Until now. As the cloud toolkit to analyze data has evolved, GPUs have stepped in to massively parallel SQL, visualization and machine learning.