Suncrest Bank file photo
Written by The Business Journal Staff
Visalia-based Suncrest Bank announced it processed 340 Paycheck Protection Program loans worth $107 million during the first phase of the program, and is participating in the most recent round starting April 27.
Suncrest Bank also reported net income of $2.88 million for the first quarter of the year, down slightly from $2.99 million for the same quarter last year. The decline in net income is attributed to a $600,000 provision for loan losses related to COVID-19.
“During the quarter the bank surpassed $1.0 billion in total assets representing an important milestone in our history,” said Ciaran McMullan, president and CEO of Suncrest Bank. “Over the last 12 months we have demonstrated our ability to grow organically with total assets increasing by over 12%, and have also seen significant increases in loan growth with new loan originations up for the 6th consecutive quarter.”
“However, in anticipation of the expected future economic impact of the COVID-19 pandemic, it is likely that our strong organic growth rate will be effected going forward. We also took the prudent decision to increase our provision for loan losses by $600,000 or 120% over the linked quarter.”
The bank reported total assets on March 31 of $1.046 billion, up 12.3% from the same time last year.
Suncrest has also been working to provide three-to-six-month loan modifications including payment deferrals of principal and/or interest. The bank has modified nearly 11% of its lending portfolio. Most of the modifications were targeted at non-owner occupied commercial real estate and hotels.