Seacoast Commerce Bank Reports Quarterly ProfitTuesday, October 25, 2011
Seacoast Commerce Bank reported Oct. 20 third-quarter net income of $585,000, compared with $658,000 for the like quarter of 2010.
For the nine months ended Sept. 30, Seacoast reported net income of $1.6 million, compared with a net loss of $966,000 in the like period of last year.
The Chula Vista-based bank has been an aggressive lender of SBA loans, and for the first nine months of this year, it added $79.7 million in SBA loans, up 27 percent from the prior year’s first nine months.
According to research firm MultiFunding, Seacoast was ranked the third “most committed lender” in the nation at helping small businesses obtain SBA loans. The list was based on SBA loans as a percentage of total deposits.
CEO Rick Sanborn said because of the bank’s strong capital position (its total risk-based ratio is 21.77 percent, or nearly three times what a well-capitalized bank needs), it’s starting to hold some of its SBA loans rather than selling them on the secondary market.
The loans provide excellent recurring interest income, and will provide stronger long-term shareholder value, Sanborn said.
Seacoast said total assets at the end of September were $143.6 million, up 28.5 percent from the same time last year, and loans were $93.9 million, up 23 percent. The bank said total nonperforming assets, including one foreclosed property valued at $970,000, equaled 22 percent of its Tier 1 capital.