Suncrest earns 3rd straight record-breaking quarter

Visalia-based Suncrest Bank tops $1 million in total earnings, $500 million in total assets for 2nd consecutive financial quarter

@TheSunGazette

VISALIA – Suncrest Bank continues to rewrite its financial record book after its third straight quarter of record-breaking earnings and surpassing the half-billion mark in assets for second straight quarter. On Oct. 25, the Visalia-based bank announced its unaudited financial results for the third quarter of 2017. Highlights included a third quarter net income of $1.37 million, the second straight quarter over $1 million and the third straight quarter of record earnings, as well as ending the third quarter with total assets of $529.4 million, and increase of 9.4% over the previous quarter and the second straight quarter surpassing the $500 million mark.

“In line with our excellent growth, we have continued to improve our profitability and operational efficiency, with return on average assets for the quarter of 1.09% and efficiency ratio of 54.24%,” said Ciaran McMullan, President and CEO of Suncrest Bank. “These positive trends reflect not only strong organic growth but also how quickly and effectively we have integrated and leveraged the two acquisitions we completed in 2016 and 2015.”

Total assets increased during the quarter by $44.3 million, or 9.14% and have increased year-to-date by $81.7 million, or 18.25%. Year over year growth was $176.1 million, or 49.87%. This growth includes the impact of Suncrest’s acquisition of Security First Bank, a deal that closed on Dec. 16, 2016. In 2015, Suncrest acquired Sutter Community Bank of Yuba City, Calif. in an all-stock deal worth approximately $9.4 million. Excluding the acquired assets, which were approximately $104 million, organic year over year growth was $72.1 million or approximately 20%.

Net income for the third quarter was a record $1.37 million or $0.19 per diluted share compared with net income of $0.68 million or $0.13 per diluted share for the third quarter of 2016. The comparability of third quarter net income to the same quarter last year and the linked quarter is impacted by the recognition of fair value discount accretion on acquired loans during the quarter of approximately $543,000 pre-tax or $0.04 per diluted share.

Net interest income for the quarter was $5.5 million, an increase of $2.1 million or 61.52% over the same quarter last year and non-interest income was $0.42 million, an increase of 9.83% over the same quarter last year. Non-interest income for the quarter includes approximately $158,000 in income generated through the gain on sale of a number of government guaranteed loans.

Total loans increased by $10.4 million during the quarter or 3.09% and have grown by $40.0 million year-to-date or 12.99%. Loans secured by farmland increased by approximately $3 million during the quarter as did loans to finance agricultural production.

“The bank’s farmland and agricultural production portfolio is well diversified across multiple crop types including; nuts, citrus, tree fruit, grapes and row crops,” said Peter Nutz, Chief Credit Officer of Suncrest Bank. “The net change in our loans to finance agricultural production during the quarter included approximately $2 million in expected annual pay downs of crop lines in our Yuba-Sutter Market. These pay downs were offset by the origination and funding of a new agricultural production loan, for an existing long term borrower of the bank, for approximately $7 million. This new loan is financing a multi-crop farming operation in the South Valley and is expected to be paid down to approximately zero through the fourth quarter.”

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