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North Bay Business Journal

Monday, November 5, 2012, 7:00 am

Banking & Finance: North Bay banks report largely stronger earnings

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    Banks across the North Bay are reporting earnings, including:

    Exchange Bank announced a net after tax profit for the third quarter of $3.2 million, 7 percent higher than during the same period last year.

    Total assets increased $82 million –5 percent — over the 12 months ended Sept. 30. Strong core deposit growth lead to the accumulation of those assets, according to Exchange Bank, and total assets now exceed $1.63 billion.

    The net value of loans was lower compared to the same period in 2011 — $1.01 billion, versus $1.04 billion. Investment securities have increased, with $388.8 million compared to $310.7 million last year.

    The bank’s provision for loan losses was $2.1 million as of Sept. 30, down from $3 million at the same point in 2011. That decline was possible due to continued improvements to asset quality, with a 35 percent reduction in nonperforming assets over the past 12 months.

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    Bank of Marin Bancorp (Nasdaq: BMRC), the parent company of Bank of Marin, reported net income fell nearly 24 percent in the third quarter but was up nearly 8 percent in the first nine months of this year.

    For the third quarter ended Sept. 30, net income totaled $3.2 million, a 23.8 percent decrease from the same three months in 2011. The bancorp attributed that decrease largely to a heightened quarterly loss provision of $2.1 million primarily due to a $4.2 million commercial real estate loan. It is currently in the process of foreclosure, according to the bank.

    For the nine-month period, earnings increased 7.7 percent to $13.1 million from $12.2 million earned during the same nine months in 2011.

    Despite the increased provision for the quarter, the bank’s total loss provision for the nine-month period was less than half the $4.6 million allocated in the first nine months of 2011. The bank had allocated $100,000 in the prior quarter. Bank of Marin’s total risk-based capital ratio was 14 percent as of Sept. 30, up from 13.3 percent at the same point in 2011.

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    Net assets at Summit State Bank grew 11 percent over the first nine months of the year to $429.72 million and loans increased 5 percent over the same period, to $283.3 million, the bank reported.

    Revenue from a one-time legal settlement helped boost net income for Summit State Bank (NASDAQ: SSBI) for the quarter ended Sept. 30, .

    The bank reported net after-tax income of $977,000 for the quarter, 139 percent higher than during the same period in 2011 and equal to 19 cents per diluted share.

    Nonperforming assets declined to 3 percent of total assets as of Sept. 30, compared to 4.2 percent in the prior quarter.

    ***

    Sterling Financial Corporation (NASDAQ: STSA), parent company of Sonoma Bank and Sterling Bank, reported net income of $30.6 million for the third quarter of 2012. Those earnings represented a 170.9 percent increase versus the same quarter in 2011, driven by asset growth, increased profits from mortgage services and the sale of certain investment securities.

    Net assets rose 3.1 percent over the twelve month period, reaching $9.47 billion as of Sept. 30. Gross loans rose 9 percent, to $6.14 billion. Loan originations for the quarter rose 9 percent compared to the same point last year, at $457.1 million.

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    Westamerica Bancorporation (Nasdaq: WABC), the parent of Westamerica Bank, reported third-quarter net income decreased 10.7 percent from a year before, a decline attributed to a low interest-rate environment.

    Net income was $20 million in the third quarter, ended Sept. 30.  Quarterly net interest income on a tax-equivalent basis was $48.7 million, declining 11 percent over 12 months.

    Credit quality improved during the quarter. Current nonperforming assets were $71 million, representing a 33.7 percent decline in value from a year before. Those loans represent 1.45 percent of the bank’s net assets, currently valued at $4.89 billion.

    As of Sept. 30, Westamerica had $2.2 billion in loans outstanding and a risk-weighted capital ratio of 16.2 percent.

    ***

    AltaPacific Bancorp (OTCBB: ABNK), the parent company of AltaPacific Bank, reported net income increased 36 percent in the third quarter and nearly tripled in the first nine months after its merger with Southern California’s Stellar Business Bank. Third-quarter earnings were $344,000 as of Sept. 30, a 14.7 percent increase from those of the second quarter and up 36.5 percent from a year before.

    Net income for the first nine months of the year was $1.2 million, up 380 percent from a year prior. Net assets totaled $222.1 million as of Sept. 30, up 4.4 percent from the second quarter and 92.6 percent from 12 months before. Deposits grew 120.6 percent over the year to $168.6 million.

    Gross loans totaled $98.5 million, a 13.9 percent decrease over the prior quarter but up 64.5 percent versus Dec. 31 of last year. Deposits totaled $168.6 million, 7.9 percent greater than in the prior quarter.

    ***

    American River Bankshares (NASDAQ-GS: AMRB), owner of American River Bank, reported net income of $780,000 for the quarter ended Sept. 30. Quarterly earnings fell 28.2 percent compared to the same quarter in 2011, driven largely by a high rate of loan payoffs versus originations.

    Meanwhile, earnings for the first nine months of the year have risen compared to 2011, with net income of $2.3 million representing a 39 percent increase. Nonperforming assets have declined from 4.27 percent of assets to 3.5 percent over the prior twelve months. The bank has net assets of $584.6 million, a half-percent increase from the prior year. Net loans decreased 8.7 percent to $270.2 million, driven largely by the reduction to nonperforming assets.

    American River Bank has refocused its efforts on business lending recently, a move that involved bringing its Sonoma County subsidiary, North Coast Bank, under the American River brand. The company has also unveiled a number of programs designed to help advise business customers.

    ***

    Submit items for this column to eric.gneckow@busjrnl.com or 707-521-4259.

     

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