Security First Bank reports profit, extends merger plans

Security First Bank in Fresno reported a profit of $24,473, or 1.4 cents per share, for the first quarter of 2016. That’s down compared to the first quarter of 2015, when the bank had a profit of $67,354 or 3.8 cents per share.

In its earnings report issued Wednesday, the company reported that the lower income figure reflected one-time charges of $480,000 related to a proposed merger with Los Angeles-based SunPac Financial Inc. and for severance. The two companies also announced that they have extended their merger agreement for another month, to May 27.

The bank’s assets amounted to $112 million as of March 31, down from $115 million a year earlier. Deposits for the first quarter were also lower, at $92 million compared to $95 million for 2015’s first quarter.

The Security First-SunPac Financial merger, first announced by the boards of the two companies more than a year ago, continues to await approval by regulators with the California Department of Business Oversight and the Federal Deposit Insurance Corp. The Security First board approved the merger in May.

SunPac is a subsidiary of SunPac LLC. The company is offering $10.50 per share of Security First stock for the merger as a means of gaining an operating bank infrastructure to launch a new bank in the L.A. market and expand operations in Fresno. The two firms originally anticipated state and federal approval for the deal by mid-2015, and the merger agreement has been extended several times since then.

Security First Bank is traded on the OTC Pink over-the-counter board under the stock symbol SFRK. As of Wednesday’s market close, the stock price was quoted at $7.41 per share, unchanged since April 7, when 1,700 shares last changed hands.

This story was originally published April 27, 2016 at 4:26 PM with the headline "Security First Bank reports profit, extends merger plans."