SOURCE: Seacoast Commerce Bank

Seacoast Commerce Bank

July 17, 2014 08:00 ET

Seacoast Commerce Bank Announces Second Quarter 2014 Results and Intent to Form a Bank Holding Company

SAN DIEGO, CA--(Marketwired - Jul 17, 2014) -  Seacoast Commerce Bank (OTCQB: SCCB) today announced its unaudited results of operations for the second quarter ended June 30, 2014. For the second quarter the Bank reported net income of $501 thousand, which was $251 thousand, or 100%, higher than 2013 second quarter net income of $250 thousand. This was the bank's 16th consecutive quarterly profit.

Assets reached a record $356.4 million, up $109.1 million or 44.1%; gross loans reached a record $298.5 million, up $77.9 million or 35.3%; deposits reached a record $323.8 million, up $105.2 million or 48.1%, with no wholesale or brokered deposits.

Selected highlights for the second quarter of 2014 versus the second quarter of 2013:

  • Asset growth of $109.1 million, or 44.1%, to a record $356.4 million;
  • Loan growth of $77.9 million, or 35.3%, to $298.5 million;
  • SBA loans funded of $45.6 million, up 3.7%, from $44.0 million;
  • SBA loans available for sale of $164.2 million, up $52.7 million, or 47.3%, from $111.4 million
  • Deposit growth of $105.2 million, or 48.1%, to a record $323.8 million;
  • Non-Interest Bearing deposit growth of $12.6 million or 29.6%, to a record $55.3 million;
  • Shareholders' Equity growth of $3.5 million, or 13.5%, to a record $29.1 million;
  • Loans classified as non-performing of only $971 thousand, or only 0.33% of total loans;
  • Assets classified as non-performing of only $971 thousand, or only 0.27% of total assets;
  • The bank had no OREO as of June 30, 2014;
  • Non-performing assets to Tier 1 Capital plus ALLL (Texas Ratio) of only 2.92%;
  • Reserves for loan losses (ALLL) of $5.2 million was 3.97% of loans held for investment;
  • Reserves for loan losses (ALLL) to non-performing loans stands at 535.9%;
  • Year-to-date Return on Average Assets (ROAA) of 1.45%, up from 0.44%;
  • Year-to-date Return on Average Common Equity (ROACE) of 20.72%, up from 4.81%.

The Bank has always maintained capital levels well above the FDIC's highest designation, "well capitalized", and had capital ratios at June 30, 2014 as follows:

          FDIC "Well Capitalized" Level
Tier 1 Capital Ratio:   8.15%   5.00%
Tier 1 Risk-Based Capital Ratio:   15.09%   6.00%
Total Risk-Based Capital Ratio:   16.36%   10.00%
BASEL III Tier 1 Common Ratio*:   11.28%   6.50%
  * Not Applicable until 2015. Shown for reference purposes only.   

As reported by the U.S. Small Business Administration ("SBA") for their nine-months ended June 30, 2014, Seacoast Commerce Bank was the 13th largest SBA lender in the Nation, based on total dollars approved, with Seacoast having $139 million approved in the first nine-months of the SBA's fiscal year. In addition to being ranked the 13th largest SBA lender in the Nation, Seacoast was the 4rd largest lender in the State of California.

Richard M. Sanborn, President & Chief Executive Officer, commented, "The actions we took in the first quarter to bolster our capital levels through higher loan sales helped support our continued growth in the second quarter, and more importantly, allowed us to retain all the guaranteed loans we produced in the second quarter. As we have stated, our goal is to retain as many of the guaranteed loans as we can in our portfolio, as these loans provide the bank with tremendous capital, earnings, and liquidity flexibility." Sanborn continued, "In anticipation of our continued growth, the Board of Directors has made the decision to file an application with the Federal Reserve to form a Bank Holding Company, which will give us greater flexibility when it comes to raising additional capital for the bank to support future growth. We expect the holding company process to be completed sometime in the fourth quarter of this year," Sanborn concluded.

Allan W. Arendsee, Chairman of the Board, stated, "As was previously announced, the bank was approved for membership in the Federal Reserve Bank, which became effective June 25, 2014. The formation of a Bank Holding Company, and the conversion of our bank into the Bank Holding Company, under the rules and laws of the Federal Reserve System, is a continuation of our plan to structure our bank in a way to grow efficiently and safely, while focusing on long-term shareholder value creation. We look forward to providing shareholders with more information on this conversion in the near future," 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; Denver, Colorado; Boise, Idaho; Las Vegas and Reno, Nevada; Houston and Dallas, Texas; and Seattle, Washington. For more information on the bank please visit our website at or contact Richard M. Sanborn, President and Chief Executive Officer at 858-432-7001.

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.

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.

    Seacoast Commerce Bank  
    Selected Financial Data - Unaudited (000)  
    For the Quarter Ended     %  
    06/30/2014     06/30/2013     Change     Change  
Balance Sheet Items                              
Total Loans     298,527       220,667       77,860     35.3 %
SBA Loans Available for Sale (Memo Only)     164,172       111,453       52,738     47.3 %
Total Assets     356,412       247,318       109,094     44.1 %
Total Deposits     323,787       218,608       105,179     48.1 %
Shareholders' Equity     29,117       25,654       3,463     13.5 %
Income Statement Items                              
Total Interest Income     4,282       3,241       1,041     32.1 %
Total Interest Expense     515       266       249     93.6 %
Net Interest Income     3,767       2,975       792     26.6 %
Provision for Loan Losses     100       500       (400 )   (80.0 %)
Non-Interest Income     1,196       1,526       (330 )   (21.6 %)
Non-Interest Expense     4,010       3,535       475     13.4 %
Pre-Tax Income     851       466       385     82.6 %
Our Fair Share of Income Taxes (41.1%)     350       216       134     62.0 %
Net Income     501       250       251     100.4 %
YTD Basic Earnings per Share   $ 0.44     $ 0.10     $ 0.34     340.0 %
Book Value per Share   $ 4.46     $ 3.89     $ 0.57     14.7 %
YTD Return on Average Assets     1.45 %     0.44 %     1.01 %   229.6 %
YTD Return on Average Common Equity     20.72 %     4.81 %     15.91 %   330.8 %
Shares Outstanding     5,629,238       5,570,932       58,306     1.05 %

Contact Information

  • Contact:
    Richard M. Sanborn
    President & Chief Executive Officer
    Phone: 858-432-7001