Banks serving the Sacramento region continued to ring up profits in this year’s first quarter, but some executives said relatively low interest rates put a drag on earnings.
Placerville-based El Dorado Savings Bank, which operates 35 branches in California and Nevada, had a profit of $2.9 million in the opening quarter, down about 6 percent from net income of $3.1 million in last year’s first quarter.
“The decline in earnings is the result of the drop in interest rates that began late in 2014,” CEO George L. Cook Jr. said in a statement. “While loan volume has increased, the lower rates on new loans and investments caused a reduction in the bank’s profit margin.”
Other first-quarter 2015 results for banks serving the Sacramento region include:
▪ Rancho Cordova-based American River Bankshares, parent of American River Bank, reported quarterly net income of $956,000, or 12 cents a share, down slightly from $1 million, or 12 cents per share, in the initial quarter of 2014. Net loans totaled $261.1 million as of March 31, up from $255.5 million in last year’s first quarter.
▪ Dixon-based First Northern Community Bancorp, the holding company for First Northern Bank, with nearly a dozen branches in the region, had net income available to common shareholders of $1.5 million, of 15 cents a share, up more than 15 percent from $1.3 million, or 13 cents a share, in 2014.
▪ Sacramento-based River City Bank posted net income of $2.4 million, or $1.66 per share, in the quarter that ended March 31, down about 14 percent from $2.8 million, or $1.95 a share, in the year-ago period. President and CEO Steve Fleming said in a statement that “the Bay Area continues to provide excellent opportunities for loan growth, and we have recently begun lending into the Southern California market.”
▪ West Sacramento-based Community Business Bank, which also has a branch in Lodi, amassed quarterly net income of $475,000, or 21 cents per share, a steep drop from $651,000, or 30 cents a share, in 2014. The bank noted that its first-quarter 2014 earnings were boosted in part by a $426,000 settlement involving a lender-owned property.
▪ Redding-based Bank of Commerce Holdings, which oversees Sacramento Bank of Commerce in Roseville, reported quarterly net income available to common shareholders of $1.8 million, or 13 cents a share, vs. earnings of $515,000, or 4 cents a share, in the year-ago period.
▪ Auburn-based Community 1st Bank had quarterly net income of $290,000, which included a $196,000 provision for income taxes. The first quarter of 2015 marked the first period that the bank, which opened in 2006, was fully taxable. Even so, earnings topped last year’s first quarter net income of $111,000.
▪ Chico-based TriCo Bancshares, parent of Tri Counties Bank, made a quarterly profit of $8.3 million, or 36 cents a share, compared with net income of $7.3 million, or 45 cents a share, in last year’s opening quarter. TriCo completed a merger with Redding-based North Valley Bank in October.
▪ Folsom-based Sierra Vista Bank had net income of $113,000 in the first quarter of 2015, down from $176,000 in the year-ago period. The bank said its earnings were impacted by the opening of a new branch in Fair Oaks in 2014 and low interest rates.
▪ Yuba City-based River Valley Community Bank posted a quarterly profit of $340,574, or 19 cents per share, up 53 percent from net income of $222,063, or 13 cents a share, in the year-ago period. The bank said it was experiencing strong deposit and loan growth in its Yuba/Sutter market.
▪ Folsom Lake Bank, which has branches in Folsom, Roseville and Rancho Cordova, reported net income of $163,214 in the quarter. The bank, launched in 2007, said the total reflected a first-time accruing for income taxes. .
▪ Yuba City-based Bank of Feather River amassed net income of $196,000 in this year’s first quarter, a nearly 50 percent improvement over a profit of $132,000 in 2014.
Call The Bee’s Mark Glover, (916) 321-1184.