Written by The Business Journal Staff
Suncrest Bank’s first quarter earnings report shows a nearly 40% increase in income compared to the same time last year.
Suncrest Bank, founded in 2008 and headquartered in Visalia with seven local branches in the area, reported a net income of $4 million for the first quarter, compared to $4.35 million for the previous quarter and $2.88 million for the same quarter last year.
“Earnings per share increased by 40% over the same quarter last year and our organic loan and deposit growth was extremely strong,” said Ciaran McMullan, president and CEO of Suncrest Bank. “Total loans, excluding PPP, increased at an annualized rate of 11% and total deposits increased by over 27% annualized.”
Suncrest Bank experienced total loan growth of $42.9 million or 5.23%. Loans — excluding PPP loans — grew by $19.8 million, or 2.81% over the same quarter last year.
A one-time sale of approximately $611,000 in bank stock in Q4 of 2020 pushed that quarter’s income report higher than normal.
The increase over the first quarter of 2020 is driven by an increase in net-interest income and the reduction in provision for loan losses, partially offset by an increase in noninterest expenses.
Suncrest’s total assets on March 31 increased to $1.34 billion from $1.25 billion in the previous quarter.
“While these results reflect a general improvement in economic conditions they are also directly attributable to the investments we have made in recruitment especially within our lending and portfolio management teams, said Ciaran McMullan, president and CEO of Suncrest Bank. “Over the last two years we have hired ten new loan officers, many with experience gained at large national and regional banks, while carefully managing expense growth and keeping key cost ratios at industry leading levels.”
Other first quarter 2021 highlights include: an increase of 39.1% of earnings-per-share over Q1 2020, total loan growth of $42.9 million, total loan growth for $19.8 million excluding PPP loans, total deposits increased $70.8 million or 6.84%, and new originations excluding PPP of $46.3 million.
Non-performing assets increased to $4.9 million or 0.37% of total assets on March 31 compared to 0.31% at December 31, 2020.
“Our momentum coming out of 2020 has continued through Q1 and the bank has posted another outstanding quarter in both earnings and balance sheet growth,” McMullan said.