Banks serving the Sacramento region reported mixed results for the second quarter of this year, but profitability held firm in a generally improving loan market.
Sacramento-based River City Bank’s second-quarter financial report was typical of the overall trend.
The bank reported net income of $2.5 million, or $1.77 per share, for the three months period June 30, down from $2.8 million, or $1.95 a share, for the same period in 2013. Through six months this year, net income was $5.3 million, or $3.71 a share, matching a profit of $5.3 million, or $3.72 a share, in the first half of last year.
In a statement, RCB President and CEO Steve Fleming said the Sacramento market is experiencing mild economic growth. Fleming cited rising home prices and a falling unemployment rate as “bright spots for the Sacramento area,” but noted that relatively low interest rates continue to slow earnings gains.
River City oversees 12 branches in Sacramento, El Dorado, Placer and Yolo counties.
Other quarterly financial results for banks serving the Sacramento region include:
• Greater Sacramento Bancorp, parent of Bank of Sacramento, reported net income of $625,000, or 23 cents a share, a nearly 30 percent decline from $886,000, or 33 cents a share, in last year’s second quarter. The latest quarterly profit nearly matched $626,000 reported in this year’s first quarter.
The bank said its most recent bottom line was affected by an after-tax charge, a one-time separation payment to a senior officer and no gains on sales of securities.
• Folsom Lake Bank, which has branches in Folsom and Roseville, reported its 18th consecutive profitable quarter, with net income of $244,185, down nearly 8.5 percent from the second quarter last year. Through the first six months, net income of $476,225 was up more than 13.5 percent from the year-ago period.
The bank said second-quarter earnings were affected by costs associated with opening a new branch at 2865 Sunrise Blvd. in Rancho Cordova later this year.
• Minneapolis-based U.S. Bancorp, which has more than 40 U.S. Bank branches in the Sacramento region, reported record second-quarter net income of $1.49 billion, or 78 cents a share, up from $1.48 billion, or 76 cents a share, in the year-ago period.
Year-to-date profits totaled about $2.9 billion, nearly matching last year’s total. The bank reported steady growth in commercial and mortgage loans.
• Yuba City-based River Valley Community Bank reported a profit of $277,805, or 16 cents per share, in the most recent quarter, down from $366,378, or 21 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 28 consecutive profitable quarters.
• Fresno-based Central Valley Community Bancorp, parent of Central Valley Community Bank, amassed quarterly net income of net income of $2.69 million, or 24 cents per share, compared with a profit of $1.28 million, or 12 cents a share, in the second quarter of 2013.
Through six months, net income totaled $5.3 million, or 48 cents a share, compared with a profit of $3 million, or 30 cents a share, last year. The bank said its strong year-to-date performance was driven partly by a dramatic increase in net interest income. It has 21 branches, including one in Sacramento.
Call The Bee’s Mark Glover, (916) 321-1184.