Banks serving the Sacramento region are reporting profitable first-quarter financial results amid an improving loan environment, but some bank executives said that the uneven nature of the economic recovery still makes for some tough sledding.
Among those reporting strong first-quarter results was Folsom Lake Bank, which has branches in Folsom and Roseville. It amassed net income of $232,600, or 15 cents a share, up nearly 52 percent from the first quarter of 2013 and the bank’s 17th consecutive quarter of profitability.
The bank’s first quarter profit last year was $153,083, or 10 cents a share.
“(The bank) showed a strong increase in net interest income. We continue to benefit from the improving economy, both at the local and regional level,” said Robert Flautt, president and CEO. “We are seeing businesses somewhat more inclined to borrow for expansion and investment, and our own underwriting on loans is less difficult due to improving financial results for our borrowers.”
Earlier this month, Folsom Lake Bank announced plans to open a new full-service branch at 2865 Sunrise Blvd. in Rancho Cordova. Officials expect to open that branch in this year’s third quarter.
Other quarterly financial results for banks serving the Sacramento region include:
• Sacramento-based River City Bank reported net income of $2.8 million, or $1.95 per share, a gain or more than 10 percent over year-ago profits.
The bank said gross loans increased $63 million, or 10 percent, from the prior year, to $691 million.
River City bills itself as the largest, independent, locally owned bank in the Sacramento region, maintaining 12 branches in El Dorado, Placer, Sacramento and Yolo counties.
• Greater Sacramento Bancorp, parent of Bank of Sacramento, reported net income of $626,000, or 23 cents per share, in the quarter ended March 31. That was a nearly 14 percent improvement over a profit of $550,000, or 21 cents a share, in the first quarter of 2013.
The bank said its “core earnings” continued to improve, with net interest income in this year’s initial quarter totaling $3.66 million, up almost 10 percent from $3.37 million in the year-ago period.
• Minneapolis-based U.S. Bancorp, which oversees more than 40 U.S. Bank branches in the Sacramento region, reported first-quarter net income of $1.39 billion, or 73 cents a share, compared with $1.42 billion, or 73 cents a share, in 2013. Bank officials said overall loan growth remained strong.
Noting the slight year-over-year decrease in profits, U.S. Bancorp Chairman, President and CEO Richard Davis said the bank’s first-quarter earnings “demonstrated our company’s ability to generate strong results in the face of a slow-growing and uncertain economy.”
• Yuba City-based River Valley Community Bank reported a profit of $222,063, or 13 cents per share, in this year’s opening quarter. That was down from $333,569, or 19 cents a share, in the year-ago period.
The bank, which opened in June 2006 and added a branch in Grass Valley last year, has posted 27 consecutive profitable quarters.
John M. Jelavich, bank president and CEO, said River Valley continues to expand in Grass Valley, “and while our investment in this new market has and will continue to result in reduced earnings in the near term, we believe this operation will be accretive over the longer term as we build our business there.”
The bank’s board also approved a special cash dividend of 35 cents per common share to shareholders of record as of April 30, payable on or about May 20.
• Fresno-based Central Valley Community Bancorp, parent of Central Valley Community Bank, amassed quarterly net income of $2.16 million, or 24 cents a share. That was up from $1.78 million, or 18 cents a share, in the first quarter of 2013.
The bank reported a significant increase in net interest income, paired with a sharp reduction in nonperforming assets. Also, the banking company did not record a provision for credit losses in the most recent quarter.
The banking firm has 21 branches, including one in Sacramento.
Call The Bee’s Mark Glover, (916) 321-1184.