YUBA CITY, Calif., April 16, 2019 (GLOBE NEWSWIRE) -- River Valley Community Bancorp (OTC markets: RVCB) with its wholly owned subsidiary, River Valley Community Bank (collectively referred to as the “Bank”), today announced financial results for the quarter ended March 31, 2019.
Consolidated financial highlights:
- Total assets as of March 31, 2019 were $383.3 million compared to $346.1 million as of March 31, 2018.
- Net income for the quarter ended March 31, 2019 totaled $876,000 or $0.35 per diluted share compared to $823,000 or $0.33 per diluted share for the quarter ended March 31, 2018 and $784,000 or $0.32 per diluted share for the quarter ended December 31, 2018.
- Net interest income totaled $3.0 million for the quarter ended March 31, 2019 compared to $2.4 million for the quarter ended March 31, 2018 and $3.0 million for the quarter ended December 31, 2018.
| Selected Consolidated Financial Information - Unaudited | ||||||||||||||||||||
| (amounts in thousands, except per share data) | ||||||||||||||||||||
| March 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | ||||||||||||||||
| 2019 | 2018 | 2018 | 2018 | 2018 | ||||||||||||||||
| Total investment securities | $ | 169,269 | $ | 158,476 | $ | 144,670 | $ | 146,106 | $ | 152,572 | ||||||||||
| Total loans, gross | 180,066 | 168,727 | 154,690 | 144,351 | 138,098 | |||||||||||||||
| Allowance for loan losses | (2,265 | ) | (2,139 | ) | (2,007 | ) | (2,005 | ) | (2,003 | ) | ||||||||||
| Total assets | 383,337 | 376,986 | 364,236 | 359,711 | 346,096 | |||||||||||||||
| Total deposits | 268,763 | 285,774 | 264,033 | 260,249 | 265,485 | |||||||||||||||
| Borrowings | 80,000 | 60,000 | 70,000 | 70,000 | 50,000 | |||||||||||||||
| Total shareholders' equity | 33,219 | 29,936 | 29,374 | 28,701 | 28,552 | |||||||||||||||
| Loan to deposit ratio | 67 | % | 59 | % | 59 | % | 55 | % | 52 | % | ||||||||||
| Book value per common share | $ | 13.93 | $ | 12.56 | $ | 12.03 | $ | 11.93 | $ | 11.74 | ||||||||||
| Subsidiary Bank's Tier 1 leverage ratio | 8.34 | % | 8.40 | % | 8.15 | % | 8.29 | % | 8.23 | % | ||||||||||
Total gross loans were $180.1 million as of March 31, 2019, which represents an increase of $42.0 million or 30.4% from $138.1 million as of March 31, 2018. As of March 31, 2019, the Bank had no non-accrual loans. Total deposits of $268.8 million as of March 31, 2019 represent an increase of $3.3 million or 1.2% from $265.5 million as of March 31, 2018.
| Selected Consolidated Financial Information - Unaudited (continued) | |||||||||||||||||||||
| (amounts in thousands, except per share data) | |||||||||||||||||||||
| Quarter Ended | |||||||||||||||||||||
| March 31, | Dec 31, | Sep 30, | Jun 30, | Mar 31, | |||||||||||||||||
| 2019 | 2018 | 2018 | 2018 | 2018 | |||||||||||||||||
| Net interest income | $ | 2,968 | $ | 2,958 | $ | 2,768 | $ | 2,639 | $ | 2,362 | |||||||||||
| Provision for loan losses | 125 | 130 | - | - | - | ||||||||||||||||
| Net income | 876 | 784 | 1,012 | 1,038 | 823 | ||||||||||||||||
| Earnings per share - basic | $ | 0.37 | $ | 0.33 | $ | 0.42 | $ | 0.43 | $ | 0.34 | |||||||||||
| Earnings per share - diluted | $ | 0.35 | $ | 0.32 | $ | 0.41 | $ | 0.42 | $ | 0.33 | |||||||||||
| Net interest margin | 3.26 | % | 3.29 | % | 3.31 | % | 3.05 | % | 2.92 | % | |||||||||||
| Net interest margin - tax equivalent | 3.32 | % | 3.35 | % | 3.37 | % | 3.11 | % | 2.94 | % | |||||||||||
| Efficiency ratio | 61.03 | % | 63.71 | % | 52.56 | % | 50.68 | % | 54.85 | % | |||||||||||
| Return on average assets | 0.91 | % | 0.83 | % | 1.15 | % | 1.14 | % | 0.97 | % | |||||||||||
| Return on average equity | 11.34 | % | 10.52 | % | 13.70 | % | 14.42 | % | 11.77 | % | |||||||||||
Net interest income of $3.0 million for the quarter ended March 31, 2019 is an increase of $605,000 or 25.6% from the quarter ended March 31, 2018 and an increase of $10,000 or 0.3% (1.4% annualized) from the quarter ended December 31, 2018. As a function of the Bank’s loan growth, a provision expense of $125,000 was realized during the quarter ended March 31, 2019.
As previously announced, the Bank authorized a stock repurchase plan on December 19, 2017 for up to $1,250,000 of the Bank’s common stock through December 31, 2018. Under this plan, the Bank acquired 11,657 shares at an average price of $17.80. On April 16, 2019, the Board of Directors authorized a new stock repurchase plan for up to $1,000,000 of the Bank’s common stock through December 31, 2020. Under the repurchase program, repurchases can be made from time to time using a variety of methods including open market purchases, privately negotiated transactions, or otherwise, all in accordance with applicable legal requirements. The specific timing, price, and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase program does not obligate the Bank to acquire any particular amount of common stock and may be suspended or discontinued at any time at the Bank’s discretion.
CFO Michael Finn commented, “Our earnings during the quarter coupled with a reduction in volatility in the fixed income markets drove a significant recovery in the fair value of the Bank’s investment securities and book value per share, which ended the quarter at $13.93. The Bank’s efficiency ratio improved from the fourth quarter of 2018 and is expected to continue declining, as costs related to newer branch facilities stabilize and those branches gain market share and further contribute to earnings.”
CEO John M. Jelavich stated, “We are off to a solid start so far in 2019 and are particularly pleased with our strong loan growth, which drove the 25.6% increase in our net interest income in the first quarter compared to the first quarter of last year. Our after tax net income for the first quarter of $876,000 increased $53,000 from the comparable period last year, which is noteworthy since the prior period results did not include a loan loss provision or the costs associated with operating our new branch facilities, which came online in late 2018.” Jelavich continued, “On the deposit side, we have experienced some outflow in the first quarter, primarily associated with a limited number of large depositors in our Yuba City market who placed those funds into non‐banking investments. The Bank continues to enjoy meaningful deposit relationships with those customers. The deposit outflow we experienced in the Yuba City market was more than offset by deposit growth in our Grass Valley and Auburn markets, which highlights our success in broadening the Bank’s deposit base.”
“The new share repurchase plan reflects our confidence in the Bank and commitment to creating value for shareholders. Our strong balance sheet and earnings give us the ability to return capital while continuing to focus on growth and serving our customers,” Jelavich concluded.
The Bank remains highly rated with BauerFinancial, Depositaccounts.com and Bankrate and serves its customer base through its offices located at:
- 1629 Colusa Avenue, Yuba City, CA
- 580 Brunswick Rd, Grass Valley, CA
- 905 Lincoln Way, Auburn, CA
The Bank offers a full suite of competitive products, services, and banking technology. For more information please visit our website at www.myrvcb.com or contact John M. Jelavich at (530) 821-2469.
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. The Bank does not undertake to update forward‐looking statements to reflect circumstances or events that occur after the date the forward‐looking statements are made.
