News Archive
A Record First Quarter:
Sutter Community Bank Releases unaudited
First Quarter, 2011 Earnings
Sutter Community Bank, located in Yuba City, California, released its first quarter, 2011 un-audited earnings for the three month period ending March 31, 2011. Net earnings for the first quarter were $290,000, or $.30 per share. These first quarter results compliment annual earnings in 2010 of $314,000.00.
"We are extremely pleased with the Bank's first quarter income and performance, considering the current economic conditions." exclaimed Kevin Ardolf, President and CEO of Sutter Community Bank, "Our continued focus on old fashioned community banking serves us well. We have improved our operating earnings through lower costs of funds, expense control and continuing our focus on government guaranteed lending."
In the first quarter reporting, Sutter Community Bank reported total assets of $64,645,000 at March 31, 2011, representing an increase of 7.1% over the March 31, 2010 asset total, $60,361,000. Deposits increased to $56,520,000 at March 31, 2011, from the March 31, 2010 deposit total of $53,622,000, representing an increase of 5.4%. Net loans, at the end of March, 2011 were $46,811,000 representing a $2.9 million decrease from the March 31, 2010 net loan total of $49,696,000.
"We are particularly proud that Sutter Community Bank continues to meet our communities financial needs and maximize our lending by making business and agricultural loans right here at home", continued Ardolf, "While a number of banks are seeking alternative income sources, we feel the role of our bank is to really assist our community's families, farms and businesses through loans that help them fulfill their needs and business models." continued Ardolf, "That is the core responsibility of a Community Bank."
Sutter Community Bank's stock is traded under the symbol of SUTB. The Bank is located in downtown Yuba City at 700 Plumas Street. For more information, please contact Kevin Ardolf at 530-674-8900, or visit our website at www.suttercommunitybank.com
Forward Looking Statements: This document may contain comments and information that constitute forward looking statements. Forward looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Forward looking statements speak only as to the date they are made. Sutter Community Bank will not update forward looking statements to reflect circumstances or events that occur after the date the forward looking statements are made.
Sutter Community Bank Releases 2010 Earnings
Sutter Community Bank, located in Yuba City, California, released its 2010 un-audited earnings for the twelve month period ending December 31, 2010. Net earnings for the year were $314,000, or $.33 per share. These results compare to earnings of $62,000, or $.07 per share, for the same period in 2009, representing an increase of $252,000 or 406%
"We are pleased with the Bank's income, considering the current economic conditions." said Kevin Ardolf, President and CEO of Sutter Community Bank, "Our focus on 'old-fashioned' banking has served us well. We have positioned our Bank for enhanced servicing income while enjoying some gain on sale on government guaranteed loans. Our guaranteed lending programs, SBA, FSA, USDA, have also reduced the risk in the loan portfolio."
In the year-end report, Sutter Community Bank reported total assets of $65,337,000 at December 31, 2010, representing an increase of 4.2% over the December 31, 2009 asset total, $62,692,000. Deposits increased to $55,882,000 at December 31, 2010, from the December 31, 2009 deposit total of $55,634,000, representing an increase of .4%. Net loans increased 1% from the December 31, 2009 net loan total of $49,351,000 to a December 31, 2010 net loan total of $49,827,000.
"We are particularly proud that Sutter Community Bank continues to meet our communities financial needs and maximize our lending by making business and agricultural loans right here at home", continued Ardolf, "While a number of banks are seeking alternative income sources, we feel the role of our bank is to really assist our community's families, farms and businesses through loans that help them fulfill their needs and business models." continued Ardolf, "That is the core responsibility of a Community Bank."
Sutter Community Bank's stock is traded under the symbol of SUTB. The Bank is located in downtown Yuba City at 700 Plumas Street. For more information, please contact Kevin Ardolf at 530-674-8900, or visit our website at www.suttercommunitybank.com
New Faces & New Titles in Our Loan Department
Sutter Community Bank is proud to announce the promotion of Aman Bains from "Loan Assistant" to "Loan Officer." Aman has been with our bank since inception in 2006 and has become an integral member of our loan team. Aman specializes in commercial, consumer and agricultural loans. A California State University Sacramento graduate, Aman is a lifelong resident of Yuba City.
Also shaking up the loan department are the additions of two fabulous staff, Kim Schreckengost and Trine Schneider. Both formerly of Butte Community Bank, Kim joins us as an Assistant Vice President and Note Department Manager. Trine joins us as a Loan Specialists, working with both residential and commercial loans. Kim brings 25 years of banking experience, and Trine 15 years of banking experience. Welcome aboard!
Lending Competition
Weighing the pros and cons of bank size
Comstock's Magazine, Story by Ingrid Ahlgren
In the Capital Region and beyond, some customers are switching from large financial institutions to smaller community banks, partially in response to columnist Arianna Huffington's December 2009 "Move your Money" campaign, which encouraged consumers to do just that. As a result of the initiative, a number of individuals have decided that they want to invest in Main Street rather than Wall Street.
"To a degree, we have seen this," says George Cook Jr., president and chief loan officer of El Dorado Savings Bank. "There are still some people who associate larger banks with [the Troubled Asset Relief Program]."
Golden Pacific Bank, a subsidiary of Golden Pacific Bancorp, has benefited from the trend. Golden Pacific, among a handful of new lending companies approved by the Federal Reserve this year, opened its branch on 9th and J streets in July 2010. Within 90 days, it had more than $10 million in deposits.
"People are fed up," says Kirk Dowdell, Golden Pacific's CEO. "They want to know that decisions are being made locally."
David Taber, president of American River Bank, says the bank has seen $20 million in new relationships during the first nine months of 2010. The majority of these clients are coming from larger institutions such as Bank of America, Wells Fargo, Bank of the West and US Bank.
Taber compares the idea of banking locally to the movement to buy local foods. "This resonates more with people than it did before," he says. "Folks understand that doing business locally helps them and their business as well."
Not all customers are switching to community banks due to Huffington's campaign. Executives at community banks say a primary reason is that customers want personal service.
"People appreciate a one-on-one relationship," says Kevin Ardolf, president and CEO of Sutter Community Bank, which opened in June 2006. He mentions that files at the community bank are organized by name rather than number. "Lots of people are intrigued that they can sit down with the CEO of the bank and make a loan."
Taber says that once someone has a relationship with a smaller community bank, they realize how different it is. For instance, if a client calls the bank, an employee might recognize his or her voice. "People trust us with their hard-earned money, and we work hard to earn that trust," he says.
Bill Trezza, CEO at the Bank of Agriculture and Commerce, says the bank's executives get to know customers. "We walk them through their problems," Trezza says. "Bigger banks used to be this way, but now they're more focused on efficiency and standardization." He adds that smaller community banks are involved in civic boards and are also part of the community through groups such as Little League Baseball. "It's difficult for larger banks to be that involved in the community."
River City Bank has also seen customers moving from larger banks. Steve Fleming, River City's president and CEO, says its most fertile ground for new customers is the pool of former jumbo-bank patrons. "It boils down to [customers] being more important to us and, therefore, getting more attention," Fleming says. "There's more access to the decision-makers of the bank who live in the community."
One of the newcomers at River City is John Webre, president of Dreyfuss and Blackford Architects, who switched from a much larger bank last year. Webre decided River City could provide a customized solution to the architectural firm's cash management needs, and he was confident it would be a safe place to keep money. Later, Webre asked River City for a line of credit, which he describes as "very competitive."
Webre says Fleming has invited him to CEO-sponsored roundtables where they discuss the challenges facing businesses. "It's way more high-touch than a Bank of America or Wells Fargo," Webre says. "I feel handled." River City bank has also invited him to events such as customer appreciation parties. "Bigger banks couldn't have a connection like River City can."
Mark Hoag, president of United Corporate Furnishings Inc., switched to River City this fall and says his company had a generally positive relationship with its previous large bank, but thought it was time to investigate other options.
After an initial meeting with River City, a cross section of the bank's team visited Hoag's office. Then, after a number of follow-up phone calls, River City presented him with a proposal. "We were impressed by River City Bank's flexibility and their tailor-made response," Hoag says. "I attribute much of this to their ability to make decisions locally."
Smaller banks also say they are better at customizing business loans than larger banks. Dowdell says there is a tremendous backlog of qualified customers who the bank can serve. "It's hard to get a loan from a big bank," he says. "You need to fit all their criteria. Most businesses and individuals need some customization." Dowdell adds that smaller institutions can also move faster than larger money center banks. "If a business needs to close on a transaction in two weeks, Golden Pacific can do it quickly."
Despite an influx of at least some new customers, challenges remain for small community banks. In August 2010 the Federal Deposit Insurance Corp. identified 829 "problem" institutions nationwide, up from 775 in March 2010, many of which were smaller banks. Whereas large national banks tend to have diverse loan portfolios, some smaller financial institutions have significant exposure to commercial real estate loans. Moreover, in August 2010 Thomas Hoenig, president of the Federal Reserve Bank of Kansas City, warned that the perception that larger banks are "too big to fail" may put smaller banks at a competitive disadvantage.
In the Capital Region, banks have seen an increase in competition for a handful of highly qualified borrowers who meet lending institutions' underwriting liquidity requirements. Banks are fighting over this smaller piece of the pie. Some credit unions are making small business loans, and insurance companies are becoming more active in commercial real estate lending.
Even though community banks may be seeing some new clients, people aren't borrowing money. John Primasing, chief credit officer at the Bank of Stockton, says two things are happening. "You've got fewer qualified customers, and those customers don't want to borrow," he says. "Everyone is sitting on the sidelines."
Kathie Sowa, national small-business credit executive for Bank of America, says the bank is seeing increased competition, but mostly at the larger end of the business segment. "Banks have lots of capital to lend, but there are fewer qualified borrowers," she says. The basic standards of lending remain the same, Sowa says, but a highly competitive environment can lead to more negotiation in such areas as loan structure and covenants. In addition, in late 2010 and throughout 2011 Bank of America plans to hire 1,000 small-remained stable and in most areas grown year over year. Reynoso, who was the former president of Placer Sierra Bank before it was acquired by Wells Fargo in 2007, says in many ways Wells Fargo acts much like a community bank. "We have local decision making," he says. "We really try to out-local the national banks and out-national the locals."
Reynoso points out that Wells Fargo can offer business customers a one-stop approach, including new technologies such as remote deposit. Some community banks might not offer such services, he says. Reynoso says Wells Fargo also offers treasury management tools such as fraud detection. "That's great technology, which we didn't have at our small community bank," he says.
However, proponents of community banks say they are catching up with larger financial institutions when it comes to offering the latest technologies. "In some cases, we can do it sooner and faster at community banks," says Nancy Sheppard, president of trade association Western Independent Bankers. For instance, the Bank of Stockton was one of the first banks in the West to have mobile banking, which allows customers access to bank accounts through their cell phones.
Individuals at community banks do say, however, that they can't do everything for everyone. For example, Dowdell points out that there are capital constraints. If a business needed a $15 million loan, most community banks would be out of the picture. "We do a better job serving the small-business customer," he says.
Executives at community banks say one obstacle right now is the public's overall perception of banks. Trezza says the media gives people the idea that "banks are banks." However, community bankers point out big differences between Wall Street and Main Street. For example, they say, local banks channel more loans back into depositors' neighborhoods.
"The greatest challenge is letting people know that there are alternatives to Wells Fargo, Bank of America, etc.," Dowdell says.
Western Independent Bankers started a campaign in April to raise awareness about community banks. The website ibanklocal.org describes what community banks are and how to find a local bank branch in your area. Western Independent Bankers also ran radio ads in the San Francisco Bay Area. "We did see some movement and good reactions as a result," she says. Western Independent Bankers is currently raising money from local banks for a similar radio campaign in the Capital Region.
"The whole idea is differentiating Main Street banks from the definition of banks being bandied around by the press," Sheppard says. "We decided it was time to hold our heads high and say, 'We're not what you hate.'" She says although a few small banks were involved in subprime lending, most were not. "Big banks are not all bad, but they're not really integral in their communities in the same way as community banks."
It’s Christmas at Sutter Community Bank!
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This year we are celebrating the wonderful harvest abundant in the Yuba-Sutter area.
Stop in to see our display of local products displayed with holiday flair! |
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Housing affordability: Y-S second in state
Appeal-Democrat, November 21, 2010
Yuba and Sutter counties became the second-most affordable metro area for housing in California in the third quarter of 2010, the California Building Industry Association reports.
All of the state's 28 metropolitan areas rose in affordability, so a family earning the median income could have afforded 61.1 percent of new and existing homes sold during the third quarter, compared to 58.4 percent the previous quarter.
In Yuba-Sutter, 83.7 percent of new and existing homes sold were affordable to a family earning the median income.
Local real estate broker Lloyd Leighton called the report "good news." The measure of affordability sounds about accurate for this area, he said, although he does not think there has been an increase.
"Things in this area have been affordable for almost two years," said Leighton, who tracks local home sales and market data.
Prices have been stable since February 2009, and the median home price of $159,000 in September was down 50 percent from the peak of the market in 2005, he said. Residents using an FHA loan with a minimum down payment could pay as little as $1,150 a month including taxes and insurance, which is about what it would cost to rent a house of the same value.
The median income for Yuba-Sutter in 2010-11 is $55,500, according to the Department of Housing and Urban Development, which was the source for the association's report.
California Building Industry Association president and CEO Liz Snow attributed the increase in affordability to a downturn in the housing market.
While affordability may be high, the number of residents buying homes is not changing dramatically, Leighton said. For the last several months, it has hovered around 140 to 150 homes a month for Yuba and Sutter counties.
Today's buyer is more patient than buyers during the peak five years ago, he said. Because rates and prices are not changing dramatically, residents are taking take their time in finding the right house.
The fact that Yuba-Sutter homes are more affordable than those in other parts of the state is likely not a factor in their decisions, Leighton said.
"Is it affordable to them?" he said. "I think that's the way most of us look at it."
Now is an excellent time for to buy, said Sandy Dilday, vice president of lending for Sutter Community Bank.
"Not only is the purchase price down and values are down, but also the rate is low, which gives them a more affordable payment," she said.
Some say these are the best rates in 30 years, Dilday said. A 30-year fixed-rate loan rate right now would be about 4.375 percent, which gives people more buying opportunity, she said.
"I have not seen a better time — and I was born and raised here," she said.
Read the entire article: http://www.appeal-democrat.com/news/percent-101355-quarter-housing.html
Letter: Customer hails bank
Appeal-Democrat, September 24, 2010
Three cheers to the employees of the Sutter Community Bank on Plumas Street in Yuba City. All of the employees there go above and beyond in assisting the customer.
Mary is always very helpful. Sandy has helped me with some very difficult procedures and always gets it right for me. Most people wouldn't go to all the trouble she has to get me documents I need and take care of banking I need to do. Sophie is always very helpful and goes out of her way to assist my husband and me.
If you are looking for a bank that will take very good care of you and go above and beyond the call of duty, please go to Sutter Community Bank. You won't be sorry and you won't find a nicer group of people.
Lorna Duck, Olivehurst
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