Bank of Sacramento Reports First Quarterly Profit Since Commencing Operations.Business Editors SACRAMENTO Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , Calif.--(BUSINESS WIRE)--Jan. 11, 2000 Bank of Sacramento, which opened it's it's 1. Contraction of it is. 2. Contraction of it has. See Usage Note at its. it's it is or it has it's be ~have doors in July July: see month. 1998 specializing in business banking, achieved both monthly and quarterly profitability in the fourth quarter of 1999. November November: see month. 1999 was the first month that Bank of Sacramento earned a profit. For the full fourth quarter, the Bank showed a net operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. of $11,000. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , William William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack J. Martin stated: "We are elated e·lat·ed adj. Exultantly proud and joyful. e·lat  ed·ly adv.e·lat to be able to turn profitable on a monthly basis after less than 17 months of operation. That we were able to also report profit for the full fourth quarter is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of our community's strong support and our successful effort of rapidly expanding the Bank's asset base with sound, quality customer relationships." Comparing loan totals for the fourth quarter 1999 to the preceding third quarter, loan outstandings grew $6.3 million or 20% to finish the year at $38.7 million. On a year to year basis, the $38.7 million at December December: see month. 31, 1999 represented a 291% increase ($28.8 million) over December 31, 1998's loan figure of $9.9 million. Deposit growth was also substantial. For the year ended December 31, 1999 deposits stood at $56.2 million which represented a 10.5% increase ($5.3 million) over the September September: see month. 30, 1999 figure of $50.9 million and a 209% increase ($38 million) over the year end 1998 deposit total of $18.2 million. Total assets at December 31, 1999 were $65.5 million; 132% over the December 31, 1998 total of $28.2 million. The Bank's operating profit for the quarter continued the positive trend for the Bank's quarterly operating results:
Quarter Ending
12/31/99 9/30/99 6/30/99 3/31/99
Net Operating
Profit/(Loss): $ 11,000 ($ 182,000) ($ 295,000) ($ 413,000)
Profit/(Loss) in
Cents per Share: $ .01 ($ .16) ($ .25) ($ .36)
For the full year of 1999 the Bank showed a net loss of $879,000 compared to 1998's 5 1/2 month loss of $1,452,000 (including $466,000 of pre-opening expenses). The Bank's net loss for the full year of 1999 was 10% better than the 1999 operating budget Noun 1. operating budget - a budget for current expenses as distinct from financial transactions or permanent improvements budget items, operating cost, operating expense, overhead - the expense of maintaining property (e.g. . Bank capital at December 31, 1999 stood at $8,795,000 and the Bank's leverage capital ratio of 14.3% places Bank of Sacramento by all regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. standards in a "well capitalized Capitalized Recorded in asset accounts and then depreciated or amortized, as is appropriate for expenditures for items with useful lives longer than one year. " position. Martin concluded that: "Reaching monthly profitability was our primary goal for 1999 and it was achieved through the tremendous efforts of a dedicated staff and Board. We feel that we have built a sound asset base to grow upon in 2000." Forward Looking Statement Disclosure Statements made in this release may constitute Forward Looking Statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 and any such statements are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include those related to the economic environment, particularly in the region where Bank of Sacramento operates, competitive products and pricing, general interest rate changes and the fiscal and monetary policies of the US Government, credit risk management, regulatory actions, and other risks and uncertainties.
BANK OF SACRAMENTO
1999 FINANCIAL HIGHLIGHTS
(IN THOUSANDS)(UNAUDITED)
as of December 31, 1999
CONDENSED BALANCE SHEET
12/31/1999 12/31/1998 % CHANGE
ASSETS
Cash and due from banks $ 1,276 $ 836 52.7%
Securities, at fair value 13,789 7,184 N.A.
Federal funds sold 9,420 7,660 23.0%
Net loans 38,082 9,747 290.7%
Premises and equipment,
(net of depreciation) 815 1,00 -18.8%
Other assets 2,105 1,810 16.3%
TOTAL ASSETS $ 65,488 $ 28,241 131.9%
LIABILITIES AND SHAREHOLDERS' EQUITY
LIABILITIES
Deposits
Noninterest bearing $ 8,119 $ 2,517 222.6%
Interest bearing 48,131 15,724 206.1%
Total Deposits 56,250 18,241 208.4%
Other borrowed funds 250 -- N.A.
Other liabilities 193 126 53.2%
TOTAL LIABILITIES 56,693 18,367 208.7%
SHAREHOLDERS' EQUITY
Common stock 11,444 11,444 0.0%
Retained earnings (2,649) (1,570) 68.7%
TOTAL SHAREHOLDERS' EQUITY 8,795 9,874 -10.9%
TOTAL LIABILITIES & SHAREHOLDERS'
EQUITY $ 65,488 $ 28,241 131.9%
CONDENSED STATEMENT OF INCOME
Results of Results of
operation operation
Three Months Three Months Year to Date
Ending Ending Ending
12/31/1999 12/31/1998 12/31/1999
Net interest income $ 725 $ 226 $ 1,859
Provision for possible loan
losses 101 75 346
Net interest income after
provision for possible loan
losses 624 151 1,513
Noninterest income 36 8 135
Noninterest expense 649 659 2,526
Income before taxes 11 (500) (878)
Income taxes -- -- 1
NET INCOME (LOSS) $ 11 $ (500) $ (879)
Earnings per Share $ 0.01 $ (0.43) $ (0.76)
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