SCVBank Reports First Quarter Results

SCVBank Reports First Quarter Results

  • Continued Improvement in Loan Quality
  • Improving Capital Ratios
  • Highly Liquid

SANTA PAULA, Calif.--(BUSINESS WIRE)-- Santa Clara Valley Bank (SCVBank) (OTCBB: SCVE) Chairman of the Board, Scott K. Rushing, today announced the Bank's 2013 first quarter results.

Board Chairman Scott Rushing reported that portfolio quality continues to demonstrate solid improvement with a low level of non current loans to total loans of just 1.21% at the end of the first quarter of 2013 just 63% of the loan loss reserve allowance, substantially below a common 100% maximum benchmark ratio. President Cheryl Knight commented that "this improvement will enhance earnings and, coupled with a strong loan loss reserve and continued reduction in classified loans, will enable the bank to focus more resources on the growth of new, good quality loans in our local community."


SCVBank recorded a net loss from operations of $90,000 for the first quarter of 2013 compared to a net profit of $181,000 for the first quarter of 2012. The increase in expenses in 2013 is primarily due to the hiring of two additional loan officers and additional loan support staff. Chairman Rushing stated that "these results are consistent with the bank's strategic plan to invest in the future growth of the bank and reflects the Board's commitment to serve the lending needs of our community by hiring top notch, experienced staff who have the expertise that only a community bank can offer to the local business community."

Declines in loan balances combined with downward pressure on interest rates for loans and investments have had an industry wide impact on bank earnings. The additional loan staff combined with an aggressive marketing effort planned for 2013 to serve the unique credit needs of our local business community is intended to boost loan balances, which will improve earnings.

SCVBank continues to maintain a strong capital position with a Tier 1 Leverage Capital Ratio of 10.90%, up from 10.68% at December 31, 2012.

Liquidity continues to be very strong as cash and investments total 48% of total assets at quarter end.

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Under its stock symbol of SCVE.OB, SCVBank's stock is traded through McAdams Wright Ragen, Raymond James & Associates Inc., and Monroe Securities. The Bank's web site is www.SCVBank.com.

Santa Clara Valley Bank Corporation Headquarters
901 East Main Street
Santa Paula, California 93060
805 525-1999

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, the effect of interest rate changes, and the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government, and general economic conditions.

 
Santa Clara Valley Bank, N. A.
 

Balance Sheets

  Unaudited   Audited
March 31, 2013 December 31, 2012
Assets:
Cash and due from banks $ 13,920,000 $ 16,186,000
Investments 48,025,000 49,408,000
Loans 65,026,000 68,998,000
Allowance for loan losses (1,335,000 ) (1,407,000 )
Other assets   4,147,000     3,801,000  
Total Assets $ 129,783,000   $ 136,986,000  
 
Liabilities and Stockholders' Equity:
Deposits $ 108,679,000 $ 114,972,000
Borrowed Funds 5,600,000 6,550,000
Other liabilities 647,000 434,000
Stockholders' equity   14,857,000     15,030,000  
Total Liabilities and Stockholders' Equity $ 129,783,000   $ 136,986,000  
 
Book value per common share $ 7.28 $ 7.40
Common shares outstanding (end of period) 1,472,167 1,472,167
Tier 1 leverage ratio 10.90 % 10.68 %
Total risk-based capital ratio 21.87 % 21.25 %
 
For the Three Months Ended

Statements of Income (unaudited)

March 31, 2013 March 31, 2012
Interest income $ 1,236,000 $ 1,407,000
Interest expense   115,000     143,000  
Net interest income 1,121,000 1,264,000
Provision for loan losses - -
Noninterest income 206,000 208,000
Noninterest expense   1,417,000     1,291,000  
Income (loss) before taxes (90,000 ) 181,000
Income tax provision   -     -  
Net Income (Loss) $ (90,000 ) $ 181,000
Preferred stock dividends or accretion   9,000     9,000  
Net income (loss) applicable to common shares $ (99,000 ) $ 172,000  
Income (Loss) per common share, basic ($0.07 ) $ 0.12
Return on average assets -0.27 % 0.57 %
Return on average equity -2.41 % 4.89 %
 



Santa Clara Valley Bank
Cheryl Knight
President Chief Executive Officer
(805) 525-1999
or
Fred Antrim
Senior Vice President & Chief Financial Officer
(805) 525-1999

KEYWORDS:   United States  North America  California

INDUSTRY KEYWORDS:

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