West Coast Community Bancorp, Parent of Santa Cruz County Bank, Reports Earnings for the Quarter Ended December 31, 2024; Board Declares Increase in Quarterly Cash Dividend
West Coast Community Bancorp (SCZC) reported unaudited earnings of $29.6 million for 2024, compared to $35.2 million in 2023. Excluding merger-related after-tax charges of $10.9 million, adjusted net income would have been $40.5 million for 2024.
Key Q4 2024 highlights include: net interest margin of 5.38% (up from 4.93% in Q3), total assets of $2.68 billion (49% increase), and deposits of $2.3 billion (51% increase). The merger with 1st Capital Bank, completed on October 1, 2024, added $994.3 million in assets.
The Board declared an increased quarterly cash dividend of $0.19 per share, payable February 11, 2025. The efficiency ratio was 61.62% for Q4 2024, while all capital ratios remained above regulatory requirements with a total risk-based capital ratio of 14.00%.
West Coast Community Bancorp (SCZC) ha riportato un utile non auditato di 29,6 milioni di dollari per il 2024, rispetto ai 35,2 milioni di dollari del 2023. Escludendo le spese dopo le tasse legate alla fusione per 10,9 milioni di dollari, l'utile netto rettificato sarebbe stato di 40,5 milioni di dollari per il 2024.
Le principali evidenze del Q4 2024 includono: un margine di interesse netto del 5,38% (in aumento rispetto al 4,93% del Q3), un totale di attivi di 2,68 miliardi di dollari (aumento del 49%) e depositi di 2,3 miliardi di dollari (aumento del 51%). La fusione con 1st Capital Bank, completata il 1° ottobre 2024, ha aggiunto 994,3 milioni di dollari in attivi.
Il Consiglio ha dichiarato un aumento del dividendo in contante trimestrale a 0,19 dollari per azione, pagabile il 11 febbraio 2025. Il rapporto di efficienza era del 61,62% per il Q4 2024, mentre tutti i rapporti di capitale sono rimasti sopra i requisiti normativi, con un rapporto totale di capitale basato sul rischio del 14,00%.
West Coast Community Bancorp (SCZC) reportó ganancias no auditadas de 29,6 millones de dólares para 2024, en comparación con 35,2 millones de dólares en 2023. Excluyendo los cargos por fusión después de impuestos de 10,9 millones de dólares, el ingreso neto ajustado habría sido de 40,5 millones de dólares para 2024.
Los aspectos destacados del Q4 2024 incluyen: un margen de interés neto del 5,38% (un aumento del 4,93% en Q3), activos totales de 2,68 mil millones de dólares (aumento del 49%) y depósitos de 2,3 mil millones de dólares (aumento del 51%). La fusión con 1st Capital Bank, completada el 1 de octubre de 2024, añadió 994,3 millones de dólares en activos.
La Junta declaró un dividendo en efectivo trimestral aumentado de 0,19 dólares por acción, pagadero el 11 de febrero de 2025. La relación de eficiencia fue del 61,62% para el Q4 2024, mientras que todas las relaciones de capital permanecieron por encima de los requisitos regulatorios con una relación de capital total basada en el riesgo del 14,00%.
West Coast Community Bancorp (SCZC)는 2024년에 비감사 기준으로 2960만 달러의 수익을 보고했으며, 2023년의 3520만 달러와 비교됩니다. 1090만 달러의 세후 인수 관련 비용을 제외하면, 조정된 순이익은 2024년에 4050만 달러였을 것입니다.
2024년 4분기의 주요 사항에는: 순이자 마진 5.38%(3분기 4.93%에서 상승), 총 자산 26억8000만 달러(49% 증가), 및 예금 23억 달러(51% 증가)가 포함됩니다. 2024년 10월 1일에 완료된 1st Capital Bank와의 인수는 9억9430만 달러의 자산을 추가했습니다.
이사회는 2025년 2월 11일 지급될 주당 0.19달러의 분기 현금 배당금을 증액하여 선언했습니다. 2024년 4분기의 효율성 비율은 61.62%였으며, 모든 자본 비율은 규제 요건을 초과하여 총 위험 기반 자본 비율은 14.00%로 유지되었습니다.
West Coast Community Bancorp (SCZC) a annoncé un bénéfice non audité de 29,6 millions de dollars pour 2024, contre 35,2 millions de dollars en 2023. Excluant les charges d'impôt liées à la fusion de 10,9 millions de dollars, le revenu net ajusté aurait été de 40,5 millions de dollars pour 2024.
Les faits saillants du T4 2024 incluent : une marge d'intérêt nette de 5,38% (en hausse par rapport à 4,93% au T3), des actifs totaux de 2,68 milliards de dollars (augmentation de 49%) et des dépôts de 2,3 milliards de dollars (augmentation de 51%). La fusion avec 1st Capital Bank, achevée le 1er octobre 2024, a ajouté 994,3 millions de dollars d'actifs.
Le Conseil a déclaré un dividende en espèces trimestriel augmenté de 0,19 dollar par action, payable le 11 février 2025. Le ratio d'efficacité était de 61,62% pour le T4 2024, tandis que tous les ratios de capital restaient au-dessus des exigences réglementaires avec un ratio de capital total basé sur le risque de 14,00%.
West Coast Community Bancorp (SCZC) berichtete über nicht prüfbare Erträge von 29,6 Millionen Dollar für 2024, im Vergleich zu 35,2 Millionen Dollar in 2023. Ohne die nach Steuern anfallenden Merger-Kosten von 10,9 Millionen Dollar hätte das angepasste Nettoeinkommen für 2024 40,5 Millionen Dollar betragen.
Die wichtigsten Höhepunkte des Q4 2024 umfassen: eine Nettozinsmarge von 5,38% (ein Anstieg von 4,93% im Q3), Gesamtvermögen von 2,68 Milliarden Dollar (49% Anstieg) und Einlagen von 2,3 Milliarden Dollar (51% Anstieg). Die Fusion mit der 1st Capital Bank, die am 1. Oktober 2024 abgeschlossen wurde, fügte 994,3 Millionen Dollar an Vermögenswerten hinzu.
Der Vorstand erklärte eine erhöhte vierteljährliche Bardividende von 0,19 Dollar pro Aktie, die am 11. Februar 2025 zahlbar ist. Die Effizienzquote betrug 61,62% für das Q4 2024, während alle Kapitalquoten über den regulatorischen Anforderungen lagen, mit einer Gesamtkapitalquote von 14,00% basierend auf dem Risiko.
- Merger with 1st Capital Bank added $994.3 million in assets
- Net interest margin increased to 5.38% from 4.93% in previous quarter
- Board increased quarterly dividend by $0.01 to $0.19 per share
- Adjusted net income would have been $40.5 million for 2024 excluding merger costs
- Cost of funds decreased to 1.37% from 1.50% in previous quarter
- Net income decreased to $29.6 million in 2024 from $35.2 million in 2023
- Q4 2024 earnings dropped to $3.8 million from $8.2 million in Q3 2024
- Efficiency ratio increased to 61.62% from 45.76% in previous quarter
- Tangible book value per share decreased to $25.09 from $27.20 in previous quarter
"A successful close of the merger of Santa Cruz County Bank and 1st Capital Bank on October 1, 2024, and completion of the related system conversion in December made for strong post-merger quarterly financial results," said Krista Snelling, President and Chief Executive Officer of West Coast Community Bancorp. "Fourth quarter highlights include a net interest margin of
On January 23, 2025, the Board of Directors of Bancorp declared a quarterly cash dividend of
"The dividend increase reflects our confidence in the long-term outlook after executing on our merger strategy as well as our ongoing commitment to create value through our West Coast Community Bank rebranding and to return capital to shareholders," said Stephen Pahl, Chairman of the Board of Directors.
Financial Highlights
Performance highlights as of and for the quarter ended December 31, 2024, included the following:
- Quarterly net income was
$3.8 million $8.2 million $8.8 million $29.6 million $35.2 million - Basic and diluted earnings per share in the fourth quarter of 2024 were
$0.37 $0.36 $0.98 $0.96 $1.05 $0.97 $0.96 $0.05 $3.32 $3.28 $4.19 $4.17 $1.22 $1.21 - Total assets were
$2.68 billion $879.6 million 49% compared to September 30, 2024, and an increase of$886.1 million 49% compared to December 31, 2023. The increase in total assets during the fourth quarter of 2024 was largely the result of the merger with 1st Capital Bank, which added$994.3 million $14.3 million $27.7 million - Primary liquidity ratio, defined as cash and equivalents, deposits held in other banks and unpledged available-for-sale ("AFS") securities as a percentage of total assets, were
14.5% ,14.5% and13.6% at December 31, 2024, September 30, 2024, and December 31, 2023, respectively. - Deposits totaled
$2.3 billion $783.5 million 51% , compared to September 30, 2024, and an increase of$795.4 million 52% compared to December 31, 2023. There were no brokered deposits at December 31, 2024, and relationship deposits (i.e., deposits gathered outside of wholesale channels), increased$803.4 million - Gross loans totaled
$2.0 billion $650.7 million 47% , compared to September 30, 2024, and an increase of$633.9 million 45% , compared to December 31, 2023. Loan growth during the fourth quarter of 2024 was largely the result of the merger with 1st Capital Bank. - Nonaccrual loans totaled
$618 thousand 0.03% of gross loans at December 31, 2024, a decrease of$1.8 million $5.9 million - The allowance for credit losses ("ACL"), reflecting management's reasonable estimate of credit losses for the expected life of the loans in the portfolio, totaled
$31.6 million 1.55% of total loans at December 31, 2024, compared to$23.1 million 1.66% , at September 30, 2024. The increase in the ACL amount primarily reflects the loan portfolio acquired from the merger with 1st Capital Bank, while the decrease in the ACL ratio is primarily attributable to a change in composition of the portfolio post-merger as well as a change in methodology and qualitative factor refinements. Following the merger, management transitioned its ACL methodology to discounted-cash-flow approach to address the size and diversity of the combined loan portfolio post-merger. The new ACL method, which can be more suitable for institutions with larger and more diverse portfolios, replaced the previous average charge-off ACL methodology. The construction loan portfolio, which under the new discounted cash flow methodology carries the highest loss reserve factor, decreased from12% of total loans as of September 30, 2024, to9% as of December 31, 2024. In addition, qualitative factors were further refined to align with the updated methodology and expanded portfolio composition. - The provision for credit losses was
$7.9 million $7.7 million $210 thousand $100 thousand $246 thousand - Net interest margin was
5.38% in the fourth quarter of 2024, compared to4.93% in the prior quarter and4.83% for the fourth quarter of 2023. Net interest margin was5.09% in 2024, compared to4.95% in 2023. The increase from prior quarter was driven by post-merger accretion of purchase discount on acquired loans, some of which accelerated through early loan pay-offs, partially offset by 100 basis points of cumulative Prime rate decreases that occurred since September 2024. Excluding the accretion of purchase discount on acquired loans would adjust the net interest margin for the fourth quarter of 2024 to4.79% and for the year to4.88% .1 - The Bank's cost of funds was
1.37% in the fourth quarter of 2024 compared to1.50% in the prior quarter. The decrease of 13 basis points in cost of funds was primarily due to the higher proportion of noninterest-bearing deposits assumed from 1st Capital Bank combined with moderation of deposit pricing pressure, partially offset by the assumption of higher costing subordinated debentures from 1st Capital Bancorp. - For the quarters ended December 31, 2024, and September 30, 2024, return on average assets ("ROAA") was
0.57% and1.87% , respectively, return on average equity ("ROAE") was4.55% and12.95% , respectively, and return on average tangible equity ("ROATE") was5.72% and14.52% , respectively. Excluding merger-related items for the quarter ended December 31, 2024, adjusted ROAA (non-GAAP)1 was2.08% , adjusted ROAE (non-GAAP)1 was16.65% , and adjusted ROATE (non-GAAP)1 was20.94% . - In 2024 and 2023, ROAA was
1.50% and2.02% , respectively, ROAE was11.11% and16.60% , respectively, and ROATE was12.94% and19.09% , respectively. Excluding merger-related items for the year ended December 31, 2024, adjusted ROAA (non-GAAP)1 was2.05% , adjusted ROAE (non-GAAP)1 was15.22% , and adjusted ROATE (non-GAAP)1 was17.73% . - The efficiency ratio was
61.62% for the fourth quarter of 2024, as compared to45.76% in the prior quarter and43.37% in the fourth quarter of 2023. The efficiency ratio was50.62% and40.72% in 2024 and 2023, respectively. Excluding merger-related items, adjusted efficiency ratio (non-GAAP)1 was43.05% for the fourth quarter of 2024 and43.29% for the year. - All capital ratios were above regulatory requirements for a well-capitalized institution with a total risk-based capital ratio of
14.00% at December 31, 2024, compared to16.62% at September 30, 2024. Tangible common equity to tangible asset ratio was10.14% at December 31, 2024, compared to12.94% at September 30, 2024. - Tangible book value per share was
$25.09 $27.20 $24.10
Merger with 1st Capital Bancorp
The merger between West Coast Community Bancorp and 1st Capital Bancorp (the "Merger") was completed on October 1, 2024. At the effective time of the closing, each share of 1st Capital Bancorp common stock was converted into the right to receive 0.36 shares of common stock of Bancorp. As a result, 2,071,483 Bancorp shares were issued as of October 1, 2024.
Interest Income, Interest Expense and Net Interest Margin
Net interest income of
For the fourth quarter of 2024, taxable equivalent net interest margin was
The following tables compare interest income, average interest-earning assets, interest expense, average interest-bearing liabilities, net interest income, net interest margin and cost of funds for each period reported.
| |||||||||||
December 31, 2024 | September 30, 2024 | ||||||||||
(Dollars in thousands) | Average | Interest | Avg | Average | Interest | Avg | |||||
ASSETS | |||||||||||
Interest-earning due from banks | $ 83,210 | $ 928 | 4.44 % | $ 50,939 | $ 674 | 5.26 % | |||||
Investments | 421,681 | 3,519 | 3.32 % | 217,976 | 911 | 1.66 % | |||||
Loans | 2,023,902 | 37,845 | 7.44 % | 1,389,123 | 24,520 | 7.02 % | |||||
Total interest-earning assets | 2,528,793 | 42,292 | 6.65 % | 1,658,038 | 26,105 | 6.26 % | |||||
Noninterest-earning assets | 164,421 | 81,886 | |||||||||
Total assets | $ 2,693,214 | ||||||||||
LIABILITIES | |||||||||||
Interest checking deposits | $ 356,531 | 630 | 0.70 % | $ 192,209 | 540 | 1.12 % | |||||
Money market deposits | 580,526 | 4,817 | 3.30 % | 446,309 | 3,312 | 2.95 % | |||||
Savings deposits | 183,240 | 353 | 0.77 % | 89,006 | 142 | 0.63 % | |||||
Time certificates of deposits | 180,334 | 1,643 | 3.62 % | 138,536 | 1,240 | 3.56 % | |||||
Brokered deposits | 28,284 | 380 | 5.34 % | 23,859 | 313 | 5.21 % | |||||
Borrowings excl. subordinated debt | -- | 3 | 4.90 % | 33 | -- | 5.76 % | |||||
Subordinated debt | 11,551 | 237 | 8.16 % | -- | -- | -- | |||||
Total interest-bearing liabilities | 1,340,466 | 8,063 | 2.39 % | 889,952 | 5,547 | 2.48 % | |||||
Noninterest-bearing deposits | 994,214 | 581,545 | |||||||||
Other noninterest-bearing liabilities | 22,827 | 16,579 | |||||||||
Total liabilities | 2,357,507 | 1,488,076 | |||||||||
EQUITY | 335,707 | 251,848 | |||||||||
Total liabilities and equity | $ 2,693,214 | ||||||||||
Net interest income/margin-taxable | $ 34,229 | 5.38 % | $ 20,558 | 4.93 % | |||||||
GAAP net interest income | $ 34,077 | $ 20,517 | |||||||||
Cost of funds | 1.37 % | 1.50 % | |||||||||
For the Years Ended | |||||||||||
December 31, 2024 | December 31, 2023 | ||||||||||
(Dollars in thousands) | Average | Interest | Avg | Average | Interest | Avg | |||||
ASSETS | |||||||||||
Interest-earning due from banks | $ 45,809 | $ 2,018 | 4.40 % | $ 35,820 | $ 1,209 | 3.38 % | |||||
Investments* | 279,557 | 6,486 | 2.32 % | 295,373 | 4,488 | 1.52 % | |||||
Loans* | 1,550,601 | 111,410 | 7.18 % | 1,333,906 | 88,878 | 6.66 % | |||||
Total interest-earning assets* | 1,875,967 | 119,914 | 6.39 % | 1,665,099 | 94,575 | 5.68 % | |||||
Noninterest-earning assets | 100,139 | 79,079 | |||||||||
Total assets | |||||||||||
LIABILITIES | |||||||||||
Interest checking deposits | $ 240,999 | 2,117 | 0.88 % | $ 214,999 | 772 | 0.36 % | |||||
Money market deposits | 465,003 | 13,703 | 2.95 % | 378,884 | 5,980 | 1.58 % | |||||
Savings deposits | 116,491 | 743 | 0.64 % | 117,199 | 340 | 0.29 % | |||||
Time certificates of deposits | 148,789 | 5,185 | 3.48 % | 136,062 | 3,364 | 2.47 % | |||||
Brokered deposits | 44,961 | 2,394 | 5.32 % | 20,210 | 1,050 | 5.20 % | |||||
Borrowings excl. subordinated debt | 2,210 | 130 | 5.87 % | 12,591 | 643 | 5.11 % | |||||
Subordinated debt | 2,904 | 237 | 8.16 % | -- | -- | -- | |||||
Total interest-bearing liabilities | 1,021,357 | 24,509 | 2.40 % | 879,945 | 12,149 | 1.38 % | |||||
Noninterest-bearing deposits | 669,753 | 633,504 | |||||||||
Other noninterest-bearing liabilities | 18,716 | 18,955 | |||||||||
Total liabilities | 1,709,826 | 1,532,404 | |||||||||
EQUITY | 266,280 | 211,774 | |||||||||
Total liabilities and equity | $ 1,976,106 | ||||||||||
Net interest income/margin-taxable | $ 95,405 | 5.09 % | $ 82,426 | 4.95 % | |||||||
GAAP net interest income | $ 95,128 | $ 82,254 | |||||||||
Cost of funds | 1.45 % | 0.80 % | |||||||||
*Effective January 1, 2024, dividends from non-marketable equity investments held by the Bank are reported as noninterest income instead of interest income. Therefore, those equity investments are excluded from earning assets in this table. Additionally, interest income on investments and loans is reported as tax equivalent basis. Prior period figures have been restated for comparability. |
Noninterest Income and Expense
Noninterest income for the quarter ended December 31, 2024, was
Noninterest expense was
Liquidity Position
The following table summarizes the Bank's liquidity as of December 31, 2024, and September 30, 2024:
As of | |||
(Dollars in thousands) | 12/31/2024 | 9/30/2024 | |
Cash and due from banks | $ 85,007 | $ 134,446 | |
Unencumbered AFS securities | 302,386 | 126,086 | |
Total on-balance-sheet liquidity | 387,393 | 260,532 | |
Line of credit from the Federal Home Loan Bank of | 645,716 | 471,558 | |
Line of credit from the Federal Reserve Bank of | 322,258 | 251,634 | |
Lines at correspondent banks – unsecured | 95,000 | 95,000 | |
Total external contingency liquidity capacity | 1,062,974 | 818,192 | |
Less: overnight borrowings | -- | -- | |
Net available liquidity sources | |||
As of December 31, 2024, net liquidity exceeded uninsured and uncollateralized deposits of
As of December 31, 2024, and September 30, 2024, the Bank had no borrowings outstanding.
Investment Portfolio
Securities issued by
Loans and Asset Quality
Gross loans increased
The allowance for credit losses was
The following tables summarize the Bank's loan mix and delinquent/nonperforming loans:
As of | Change % vs. | ||||||||
(Dollars in thousands) | 12/31/2024 | 9/30/2024 | 12/31/2023 | 9/30/2024 | 12/31/2023 | ||||
Loans held for sale | $ - | $ 24,154 | $ 33,696 | -100 % | -100 % | ||||
SBA and B&I loans | 183,128 | 143,913 | 137,586 | 27 % | 33 % | ||||
Commercial term loans | 121,238 | 100,107 | 107,509 | 21 % | 13 % | ||||
Revolving commercial lines | 148,336 | 102,862 | 117,251 | 44 % | 27 % | ||||
Asset-based lines of credit | 28,788 | 14,982 | 27,174 | 92 % | 6 % | ||||
Construction loans | 191,772 | 165,592 | 138,309 | 16 % | 39 % | ||||
Commercial real estate loans | 1,364,352 | 810,280 | 807,050 | 68 % | 69 % | ||||
Home equity lines of credit | 33,853 | 28,005 | 31,849 | 21 % | 6 % | ||||
Consumer and other loans | 2,125 | 2,429 | 8,709 | -13 % | -76 % | ||||
Deferred loan expenses, net of fees | 2,936 | 2,183 | 2,160 | 34 % | 36 % | ||||
Total loans, net of deferred expenses/fees | 2,076,528 | 1,394,507 | 1,411,293 | 49 % | 47 % | ||||
Purchase discount on acquired | (31,425) | - | - | -100 % | -100 % | ||||
Total loans, net of unaccreted purchase discount | $ 1,394,507 | $ 1,411,293 | 47 % | 45 % | |||||
As of or for the Quarter Ended | |||||
(Dollars in thousands) | 12/31/2024 | 9/30/2024 | 12/31/2023 | ||
Loans past due 30-89 days | $ 387 | $ 3,377 | $ -- | ||
Delinquent loans (past due 90+ days still accruing) | -- | -- | 2,999 | ||
Nonaccrual loans | 618 | 2,404 | 6,526 | ||
Other real estate owned | -- | -- | -- | ||
Nonperforming assets | -- | -- | 9,525 | ||
Net loan charge-offs QTD | -- | -- | 1,172 | ||
Net loan charge-offs YTD | 55 | 44 | 2,167 | ||
Deposits
Deposits were
The 10 largest deposit relationships, excluding fully collateralized government agency deposits, represent approximately
The following table summarizes the Bank's deposit mix:
As of | Change % vs. | ||||||||
(Dollars in thousands) | 12/31/2024 | 9/30/2024 | 12/31/2023 | 9/30/2024 | 12/31/2023 | ||||
Noninterest-bearing demand | $ 629,238 | 61 % | 76 % | ||||||
Interest-bearing demand | 270,254 | 191,887 | 209,584 | 41 % | 29 % | ||||
Money markets | 668,584 | 461,965 | 434,287 | 45 % | 54 % | ||||
Savings | 183,507 | 86,519 | 105,012 | 112 % | 75 % | ||||
Time certificates of deposit | 173,875 | 137,484 | 142,413 | 26 % | 22 % | ||||
Brokered deposits | - | 19,858 | 47,338 | -100 % | -100 % | ||||
Total deposits | 51 % | 52 % | |||||||
Deposits – personal | $ 794,990 | $ 544,086 | $ 545,920 | 46 % | 46 % | ||||
Deposits – business | 1,515,493 | 963,007 | 921,832 | 57 % | 64 % | ||||
Deposits – brokered | - | 19,858 | 47,338 | -100 % | -100 % | ||||
Total deposits | 51 % | 52 % | |||||||
Shareholders' Equity
Total shareholders' equity was
Non-GAAP Financial Measures1
In addition to evaluating the Bancorp's results of operations in accordance with generally accepted accounting principles ("GAAP") in
Examples of non-GAAP financial measure include efficiency ratio, adjusted tangible common equity and adjusted return on average tangible common equity:
- Efficiency ratio is a common comparable metric used by banks to understand the expense structure relative to total revenue. To improve the comparability of the ratio to our peers, non-recurring items are excluded.
- Adjusted tangible common equity measures exclude the impact of intangible assets, net of deferred taxes, and their related amortization. These financial measures are useful for evaluating the performance of a business consistently, whether acquired or developed internally.
- Adjusted return on average tangible common equity is used by management and readers of our financial statements to understand how efficiently the Bancorp is deploying its common equity. Companies that can demonstrate more efficient use of common equity are more likely to be viewed favorably by current and prospective investors.
A reconciliation of GAAP to non-GAAP financial measures other performance ratios used by the Bancorp, as adjusted, is presented in the table at the end of this earnings release.
ABOUT
Founded in 2004, Santa Cruz County Bank is the wholly owned subsidiary of West Coast Community Bancorp, a bank holding company. The Bank is a top-rated, locally operated and full-service community bank headquartered in
NATIONAL, STATE AND LOCAL RATINGS AND AWARDS
- 2024 OTCQX Best 50: West Coast Community Bancorp "SCZC" stock ranked 37th for stock performance based on total return and growth in average daily dollar volume in 2023.
- American Banker Magazine Top 100 Community Banks: The Bank has ranked in the Top Community Banks list for 10 consecutive years based upon 3-year average equity for banks with fewer than
$2 billion - 2024 ICBA Top-Performing Community Banks: The Bank ranked 12 out of 25 top banks with assets greater than
$1 billion - The Findley Reports, Inc.: The Bank has received the top ranking of Super Premier for 14 consecutive years.
- Bauer Financial Reports, Inc.: The Bank is rated 5-star "Superior" based upon its financial performance.
- Silicon Valley Business Journal: The Bank is ranked 13th among Top 20 Banks for deposits in Silicon Valley for the period October 1, 2023, to September 30, 2024.
- Volunteer Center of
Santa Cruz County bestowed the "2024 Be the Difference Legacy Award" to the Bank for 20 years of service to the community. - Press Banner: 2024 Best of Scotts Valley "Best Local Bank" determined by its readers.
- The Pajaronian: 2024 Best of the Pajaro Valley "Best Local Bank" chosen by readers' poll.
- Good Times, 2023 Best of Santa Cruz County Award, voted "Best Bank" for 12 consecutive years.
- Santa Cruz Sentinel, 2023 Reader's Choice Award, number one bank in
Santa Cruz County as voted by Santa Cruz Sentinel readers for 10 years.
Forward-Looking Statements
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to the successful integration with 1st Capital Bancorp post-merger, achieving the targeted cost savings and synergies within expected time-frames or at all, retaining employees and customers, fluctuations in interest rates (including but not limited to changes in depositor behavior in relation thereto), inflation, government regulations and general economic conditions, and competition within the business areas in which the Bank is conducting its operations, health of the real estate market in California, Bancorp's ability to effectively execute its business plans, and other factors beyond Bancorp and the Bank's control. In particular, rapid and large increases in interest rates in the past few years have driven core deposit intangible levels higher. Higher interest rates reflect a higher cost of wholesale borrowing from the market relative to the cost of maintaining cheaper core deposits, which has made the value of deposit relationships increased. When interest rates fall, banks may adjust deposit rates closer to falling market rates. This could reduce the value of core deposit intangible asset and result in future impairment charges. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. Bancorp undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Concurrent with this earnings release, Bancorp issued presentation slides providing supplemental information intended to be reviewed together with this release. Slides may be viewed online at: https://www.sccountybank.com/investor_relations.cfm.
(See final table below for calculation of non-GAAP measures excluding merger-related items.) |
Selected Unaudited Financial Information | ||||||||
(Dollars in thousands, | As of or for the | As of or for the | ||||||
2024 | 2023 | Change $ | Change % | 2024 | Change $ | Change % | ||
Balance Sheet | ||||||||
Assets | ||||||||
Cash and due from banks | $ 85,007 | $ 44,395 | $ 40,612 | 91 % | $ 134,446 | $ (49,439) | -37 % | |
Securities – AFS | 400,473 | 262,566 | 137,907 | 53 % | 198,531 | 201,942 | 102 % | |
Securities – HTM | 7,273 | 7,585 | (312) | -4 % | 7,296 | (23) | 0 % | |
Gross loans | 2,045,215 | 1,411,293 | 633,922 | 45 % | 1,394,507 | 650,708 | 47 % | |
Allowance for credit losses | (31,622) | (23,943) | (7,679) | 32 % | (23,099) | (8,523) | 37 % | |
Goodwill and other intangibles | 68,105 | 27,433 | 40,672 | 148 % | 27,184 | 40,921 | 151 % | |
Other assets | 105,977 | 65,033 | 40,944 | 63 % | 61,927 | 44,050 | 71 % | |
Total assets | $ 2,680,428 | $ 1,794,362 | $ 886,066 | 49 % | $ 1,800,792 | $ 879,636 | 49 % | |
Liabilities and Equity | ||||||||
Noninterest-bearing deposits | $ 1,014,263 | $ 576,456 | $ 437,807 | 76 % | $ 629,238 | $ 385,025 | 61 % | |
Interest-bearing non-brokered deposits | 1,296,220 | 891,296 | 404,924 | 45 % | 877,855 | 418,365 | 48 % | |
Brokered deposits | -- | 47,338 | (47,338) | -100 % | 19,858 | (19,858) | -100 % | |
Total deposits | 2,310,483 | 1,515,090 | 795,393 | 52 % | 1,526,951 | 783,532 | 51 % | |
Borrowings | 11,608 | 32,500 | (20,892) | -64 % | -- | 11,608 | 0 % | |
Other liabilities | 25,356 | 16,736 | 8,620 | 52 % | 17,160 | 8,196 | 48 % | |
Shareholders' equity | 332,981 | 230,036 | 102,945 | 45 % | 256,681 | 76,300 | 30 % | |
Total liabilities and equity | $ 2,680,428 | $ 1,794,362 | $ 886,066 | 49 % | $ 1,800,792 | $ 879,636 | 49 % | |
Income Statement | ||||||||
Interest income | $ 42,139 | $ 25,125 | $ 17,014 | 68 % | $ 26,064 | $ 16,075 | 62 % | |
Interest expense | 8,063 | 4,491 | 3,572 | 80 % | 5,547 | 2,516 | 45 % | |
Net interest income | 34,076 | 20,634 | 13,442 | 65 % | 20,517 | 13,559 | 66 % | |
Provision for credit losses | 7,939 | (246) | 8,185 | -3,327 % | 100 | 7,839 | 7,839 % | |
Noninterest income | 911 | 1,018 | (107) | -11 % | 1,065 | (154) | -14 % | |
Noninterest expense | 21,559 | 9,389 | 12,170 | 130 % | 9,876 | 11,683 | 118 % | |
Net income before taxes | 5,489 | 12,509 | (7,020) | -56 % | 11,606 | (6,117) | -53 % | |
Income tax expense | 1,649 | 3,668 | (2,019) | -55 % | 3,407 | (1,758) | -52 % | |
Net income after taxes | $ 3,840 | $ 8,841 | $ (5,001) | -57 % | $ 8,199 | $ (4,359) | -53 % | |
Basic earnings per share | $ 0.37 | $ 1.05 | $ (0.68) | -65 % | $ 0.98 | $ (0.61) | -62 % | |
Diluted earnings per share | $ 0.36 | $ 1.05 | $ (0.69) | -66 % | $ 0.96 | $ (0.60) | -63 % | |
Book value per share | $ 31.54 | $ 27.36 | $ 4.18 | 15 % | $ 30.42 | $ 1.12 | 4 % | |
Tangible book value per share a | $ 25.09 | $ 24.10 | $ 0.99 | 4 % | $ 27.20 | $ (2.11) | -8 % | |
Shares outstanding | 10,556,467 | 8,406,680 | 8,438,238 | |||||
Ratios | ||||||||
Net interest margin, tax equivalent b | 5.38 % | 4.83 % | 4.93 % | |||||
Cost of funds c | 1.37 % | 1.17 % | 1.50 % | |||||
Efficiency ratio d | 61.62 % | 43.37 % | 45.76 % | |||||
Return on: | ||||||||
Average assets | 0.57 % | 1.99 % | 1.87 % | |||||
Average equity | 4.55 % | 15.72 % | 12.95 % | |||||
Average tangible equity e | 5.72 % | 17.93 % | 14.52 % | |||||
Tier 1 leverage ratio | 10.51 % | 12.09 % | 13.63 % | |||||
Total risk-based capital ratio | 14.00 % | 14.98 % | 16.62 % | |||||
Tangible common equity ratio f | 10.14 % | 11.47 % | 12.94 % | |||||
ACL/Gross loans | 1.55 % | 1.70 % | 1.66 % | |||||
Noninterest-bearing deposits to total deposits | 43.90 % | 38.05 % | 41.21 % | |||||
Gross loans to deposits | 88.52 % | 93.15 % | 91.33 % | |||||
Selected Unaudited Financial Information | |||||
(Dollars in thousands, | For the Year Ended December 31, | ||||
2024 | 2023 | Change $ | Change % | ||
Income Statement | |||||
Interest income | $ 119,637 | $ 94,403 | $ 25,234 | 27 % | |
Interest expense | 24,509 | 12,149 | 12,360 | 102 % | |
Net interest income | 95,128 | 82,254 | 12,874 | 16 % | |
Provision for loan losses | 7,039 | 1,413 | 5,626 | 398 % | |
Noninterest income | 4,053 | 4,082 | (29) | -1 % | |
Noninterest expense | 50,205 | 35,153 | 15,052 | 43 % | |
Net income before taxes | 41,937 | 49,770 | (7,833) | -16 % | |
Income tax expense | 12,358 | 14,620 | (2,262) | -15 % | |
Net income after taxes | $ 29,579 | $ 35,150 | $ (5,571) | -16 % | |
Basic earnings per share | $ 3.32 | $ 4.19 | $ (0.87) | -21 % | |
Diluted earnings per share | $ 3.28 | $ 4.17 | $ (0.89) | -21 % | |
Ratios | |||||
Net interest margin, tax equivalent b | 5.09 % | 4.95 % | |||
Cost of funds c | 1.45 % | 0.80 % | |||
Efficiency ratio d | 50.62 % | 40.72 % | |||
Return on: | |||||
Average assets | 1.50 % | 2.02 % | |||
Average equity | 11.11 % | 16.60 % | |||
Average tangible equity e | 12.94 % | 19.09 % | |||
a Tangible equity equals total shareholders' equity less goodwill and other intangible assets. Tangible book value per share divides tangible equity by period ending shares outstanding. | |||||
b Net interest margin is calculated by dividing annualized taxable equivalent net interest income by period average interest-earning assets. Interest income on tax-exempt securities and loans are presented on a taxable-equivalent basis using the Federal statutory rate of 21 percent. | |||||
c Cost of funds is computed by dividing annualized interest expense by the sum of period average deposits and borrowings. | |||||
d Efficiency ratio equals total noninterest expenses divided by the sum of net interest income and noninterest income. | |||||
e Return on average tangible equity is calculated by dividing annualized net income by period average tangible shareholders' equity. Tangible shareholders' equity is defined in note a above. | |||||
f Tangible common equity ratio is calculated by dividing tangible shareholders' equity as defined in note a above by assets less goodwill and other intangible assets. | |||||
1Non-GAAP Financial Measures | |||||||
(Dollars in thousands, | As of or for the Quarter Ended | As of or for the | As of or for the Year Ended | ||||
2024 | 2023 | 2024 | 2024 | 2023 | |||
Non-interest expense reported per GAAP | $ 21,559 | $ 9,389 | $ 9,876 | $ 50,205 | $ 35,153 | ||
Less: merger expense – non-deductible | 97 | -- | 437 | 751 | -- | ||
Less: merger expense – deductible | 6,180 | -- | 18 | 6,298 | -- | ||
Adjusted non-interest expense (non-GAAP) | $ 15,282 | $ 9,389 | $ 9,421 | $ 43,156 | $ 35,153 | ||
Net interest income, taxable equivalent (TE) | $ 34,229 | $ 20,634 | $ 20,558 | $ 95,405 | $ 82,426 | ||
Less: accretion on purchase discount of acquired loans | 3,783 | -- | -- | 3,783 | -- | ||
Adjusted net interest income (non-GAAP) | $ 30,446 | $ 20,634 | $ 20,558 | $ 91,622 | $ 82,426 | ||
Average interest earning assets | $ 2,528,793 | $ 1,693,931 | $ 1,658,038 | $ 1,875,967 | $ 1,665,099 | ||
Net interest margin, taxable equivalent | 5.38 % | 4.83 % | 4.93 % | 5.09 % | 4.95 % | ||
Adjusted net interest margin (TE) (non-GAAP) | 4.79 % | 4.83 % | 4.93 % | 4.88 % | 4.95 % | ||
Non-interest income reported per GAAP | $ 911 | $ 1,018 | $ 1,065 | $ 4,053 | $ 4,082 | ||
Add: net loss on sale of | 509 | -- | -- | 509 | -- | ||
Adjusted non-interest income (non-GAAP) | 1,420 | 1,018 | 1,065 | 4,562 | 4,082 | ||
Net interest income plus adjusted non-interest | 35,496 | 21,652 | 21,582 | 99,690 | 86,336 | ||
Non-interest expense to net interest income plus | 61.62 % | 43.36 % | 45.76 % | 50.62 % | 40.72 % | ||
Adjusted efficiency ratio (non-GAAP) | 43.05 % | 43.36 % | 43.65 % | 43.29 % | 40.72 % | ||
Net income reported per GAAP | $ 3,840 | $ 8,841 | $ 8,199 | $ 29,579 | $ 35,150 | ||
Add: Day 1 provision for credit losses on | 7,667 | -- | -- | 7,667 | -- | ||
Add: net loss on sale of | 509 | -- | -- | 509 | -- | ||
Add: merger expense – non-deductible | 97 | -- | 437 | 751 | -- | ||
Add: merger expense – deductible | 6,180 | 18 | 6,298 | ||||
Adjusted non-recurring items | 14,453 | -- | 455 | 15,225 | -- | ||
Tax effected non-recurring items | 10,209 | -- | 450 | 10,946 | -- | ||
Adjusted net income (non-GAAP) | $ 14,049 | $ 8,841 | $ 8,649 | $ 40,525 | $ 35,150 | ||
GAAP basic earnings per share | $ 0.37 | $ 1.05 | $ 0.98 | $ 3.32 | $ 4.19 | ||
Adjusted basic earnings per share (non-GAAP) | $ 1.34 | $ 1.05 | $ 1.03 | $ 4.54 | $ 4.19 | ||
GAAP diluted earnings per share | $ 0.36 | $ 1.05 | $ 0.96 | $ 3.28 | $ 4.17 | ||
Adjusted diluted earnings per share (non-GAAP) | $ 1.32 | $ 1.05 | $ 1.01 | $ 4.49 | $ 4.17 | ||
Adjusted non-GAAP ROAA | 2.08 % | 1.99 % | 1.98 % | 2.05 % | 2.02 % | ||
Adjusted non-GAAP ROAE | 16.65 % | 15.72 % | 13.66 % | 15.22 % | 16.60 % | ||
Adjusted non-GAAP ROATE | 20.94 % | 17.93 % | 15.32 % | 17.73 % | 19.09 % | ||
Total shareholders' equity | $ 332,981 | $ 230,036 | $ 256,681 | $ 332,981 | $ 230,036 | ||
Less: goodwill and other intangibles | 68,105 | 27,433 | 27,184 | 68,105 | 27,433 | ||
Tangible common equity (non-GAAP) | $ 264,876 | $ 202,603 | $ 229,497 | $ 264,876 | $ 202,603 | ||
Common shares outstanding at period end | 10,556,467 | 8,406,680 | 8,438,238 | 10,556,467 | 8,406,680 | ||
Book value per common share | $ 31.54 | $ 27.36 | $ 30.42 | $ 31.54 | $ 27.36 | ||
Tangible book value per common share (non- | $ 25.09 | $ 24.10 | $ 27.20 | $ 25.09 | $ 24.10 | ||
Total assets | $ 2,680,428 | $ 1,794,362 | $ 1,800,792 | $ 2,680,428 | $ 1,794,362 | ||
Less: goodwill and other intangibles | 68,105 | 27,433 | 27,184 | 68,105 | 27,433 | ||
Tangible assets | $ 2,612,323 | $ 1,766,929 | $ 1,773,608 | $ 2,612,323 | $ 1,766,929 | ||
Total shareholders' equity to total assets | 12.42 % | 12.82 % | 14.25 % | 12.42 % | 12.82 % | ||
Tangible equity to tangible assets (non-GAAP) | 10.14 % | 11.47 % | 12.94 % | 10.14 % | 11.47 % | ||
View original content to download multimedia:https://www.prnewswire.com/news-releases/west-coast-community-bancorp-parent-of-santa-cruz-county-bank-reports-earnings-for-the-quarter-ended-december-31-2024-board-declares-increase-in-quarterly-cash-dividend-302361539.html
SOURCE West Coast Community Bancorp
FAQ
What was SCZC's net income for Q4 2024 compared to Q4 2023?
How much did the 1st Capital Bank merger add to SCZC's total assets?
What is SCZC's new quarterly dividend amount and payment date?
How did SCZC's net interest margin change in Q4 2024?
