In the most recent round of bank earnings, a half-dozen Sacramento regional banks reported an improving loan environment in the third quarter, enabling most to post profits despite relatively low interest rates.
Among those seeing strong third-quarter results was Placerville-based El Dorado Savings Bank, which operates 35 branches in California and Nevada. The bank had a profit of nearly $2.7 million in the quarter that ended Sept. 30, a 17 percent spike over last year’s third-quarter net income of $2.3 million.
Through nine months this year, profits totaled $8.6 million, a 40 percent improvement over $6.1 million in the year-ago period.
In a statement, CEO George Cook Jr. cited the “continued strong performance” of the bank’s investment and real estate loan portfolios.
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Other quarterly financial results for banks serving the Sacramento region include:
▪ Dixon-based First Northern Community Bancorp, parent of First Northern Bank, with nearly a dozen regional offices, reported quarterly income available to common shareholders of $1.5 million, or 16 cents a share, up 25 percent from $1.2 million, or 12 cents a share, in 2013.
Profits through nine months this year totaled $4.2 million, or 43 cents a share, up nearly 17 percent from $3.6 million, or 37 cents a share, in the year-ago period.
▪ Chico-based TriCo Bancshares, parent of Tri Counties Bank, made a profit of $8.23 million, or 50 cents a share, compared with net income of $7.36 million, or 45 cents a share, in last year’s third quarter.
TriCo just completed a merger with Redding-based North Valley Bank. Under terms of the agreement, North Valley Bank branches will carry the Tri Counties name, expanding TriCo’s regional presence to 73 branches. TriCo said its third-quarter figures do not reflect revenue or expenses related to the merger.
▪ Folsom-based Sierra Vista Bank reported net income of $90,000, or 2 cents a share, in the most recent quarter, down from $122,000, or 3 cents a share, in this year’s second quarter and $228,000, or 6 cents per share, in the third quarter of last year. Through nine months, profits totaled $388,000, or 10 cents a share, versus net income of $451,000, or 12 cents a share, through nine months of 2013.
Sierra Vista operates branches in Folsom, Cameron Park and Fair Oaks. The bank said its third-quarter earnings were impacted by costs related to the opening in June of its new Fair Oaks branch.
▪ Auburn-based Community 1st Bank, which also has a Roseville branch and a Sacramento loan office, amassed net income of $289,000 in the third quarter, up from $252,000 in the year-ago period.
Through nine months, net income totaled $433,000, down from a profit of $839,000 in 2013. The bank’s yearlong totals have been affected by a tepid first quarter that saw a high allowance for loan losses and nonperforming loans of more than $4.5 million.
▪ West Sacramento-based Community Business Bank, which also has a branch in Lodi, amassed quarterly net income of $383,000, or 18 cents per share, up nearly 25 percent from $307,000, or 14 cents a share, in the third quarter of 2013.
Year-to-date profits totaled $1.6 million, or 75 cents a share, versus $863,000, or 40 cents a share, through nine months last year – an 85 percent year-over-year gain.
▪ Portland, Ore.-based Umpqua Holdings Corp., which oversees more than 20 Umpqua Bank branches in the Sacramento region, reported net income available to common shareholders of $58.8 million, or 27 cents a share, in the quarter, up dramatically from $23.3 million, or 21 cents a share, last year.
Umpqua completed its merger with Sterling Financial Corp. in this year’s second quarter, extending its reach to 400 offices in California, Nevada, Oregon, Washington and Idaho.
Call The Bee’s Mark Glover, (916) 321-1184.