Seacoast Commerce Reports Q1 Net Income of $1.3 MillionThursday, April 23, 2015
Seacoast Commerce Banc Holdings, the parent company for Seacoast Commerce Bank, reported 2015 first-quarter net income of $1.3 million, compared to net income of $2 million for the same quarter in 2014.
This was the bank’s 19th consecutive quarterly profit.
First quarter of 2014 results included a large amount of gain-on-sale income that was generated to provide additional capital to the bank, which was not needed in the first quarter of 2015 as the company received a $7 million loan from Dallas-based NexBank SSB in March of 2015, of which $6 million was provided to the bank as additional capital to support future growth.
For comparative purposes, the first quarter of 2014 had loan production of $31.8 million; loan sales of $48.4 million; gain-on-sale of loans income of $4.6 million; and a reduction in Small Business Association-guaranteed loan inventory of $27.5 million.
For the first quarter of 2015, the Bank had loan production of $50.7 million; loan sales of only $27.3 million; gain-on-sale of loans income of $2.7 million; and growth in SBA-guaranteed loan inventory of $4.6 million.
The company previously said its growth and long-term strategy is based on generating and holding more saleable SBA loans. Holding loans, versus selling for a one-time gain, ultimately results in more consistent, predictable, and re-occurring spread income.
The SBA said Seacoast Commerce Bank was the 12th largest SBA lender in the nation as of March.
“With year-over-year loan, deposit, and asset growth all being meaningful, and all above 25 percent, we are seeing the benefits of our ‘hold strategy,’” said Richard M. Sanborn, president and chief executive officer. “This growth is fueling our income statement results where we experienced a 35.1 percent increase in net-interest income, excluding any gain-on-sale of loans, with only a 6 percent increase in non-interest expenses. It has always been our focus to grow our balance sheet with high-quality assets that can provide a consistent, predictable, re-occurring income stream, which we believe will result in shareholder returns exceeding our peers.”