Pacific Valley Bank Announces First Quarter 2013 Financial Results and 10% Stock Dividend

SALINAS, Calif., May 1, 2013 /PRNewswire/ -- Pacific Valley Bank (OTCQB : PVBK) announces its first quarter 2013 earnings and a 10% stock dividend.  The first quarter 2013 net income was $605,000 or $0.19 basic earnings per share as compared to the same quarter last year when we reported a net income of $310,000 or $0.09 basic earnings per share.  The 10% stock dividend will result in one share of common stock paid for every ten shares of common stock owned on May 17, 2013 the record date.  Any fractional shares will be rounded up or down and the stock dividend will be paid on May 31, 2013.

            First Quarter 2013 Financial Highlights (annualized): 
                        Return on Average Assets (ROA):  1.35% 
                        Net Interest Margin (NIM):  4.95% 
                        Efficiency Ratio:  72.46%

"We are pleased to be able to report strong earnings for the first quarter of this year, and in turn, announce a 10% stock dividend for our shareholders.  This quarter marks our 10th consecutive quarter of profitability," stated David B. Warner, President and Chief Executive Officer.  "Pacific Valley Bank's board of directors recognizes our success as a leading community bank in our home market of Monterey County is due to the support of our shareholders as well as our valued customers.  We wish to extend appreciation to our loyal shareholders with the declaration of this 10% stock dividend.  We are also pleased to report that Pacific Valley Bank has been recently designated by The Findley Reports as one of the 'Super Premier' performing banks in California, based upon 2012 operating results."

Balance Sheet and Loan Quality Review:
Total assets were $186.43 million at March 31, 2013, which is an increase of $20.24 million from the same period last year when assets were $166.19 million.  Our gross loans at March 31, 2013 were $143.84 million, which is an increase of $13.74 million as compared to $130.10 million at March 31, 2012. 

The allowance for loan losses as of March 31, 2013 was $3.43 million, which is lower than the same period last year when it was $4.12 million.  The percentage of allowance for loan losses to gross loans outstanding at March 31, 2013 was 2.38% as compared to 3.17% at March 31, 2012.  The allowance for loan loss ratio has gradually been trending down since the same quarter last year due to net charge-offs of measured impairments and an overall improvement in loan quality.  Non-accruing loans have improved to $3.04 million at March 31, 2013 as compared to $4.33 million as of March 31, 2012; and loans past due from 30 – 89 days were zero as of March 31, 2013 as compared to $2.10 million as of March 31, 2012. 

A significant component of our current liquidity position is reflected in our excess balances held at the Federal Reserve, which total $28.85 million as of March 31, 2013 as compared to $26.36 million as of March 31, 2012.  The Bank's liquidity is in a good position and continues to be available to support future loan growth.  Deposits moved higher to $163.88 million as of March 31, 2013, as compared to $143.77 million at March 31, 2012. 

Stockholders' equity at March 31, 2013 was $21.79 million as compared to $19.67 million for the period ending March 31, 2012.  At March 31, 2013 our Tier 1 capital to average assets ratio was 11.93% as compared to 11.92% as of March 31, 2012.

Review of Operations:
The core earnings of the Bank are measured by the interest income plus non-interest income less interest expense.  During the first quarter 2013, core earnings were $2.20 million, which is higher compared to $1.86 million for the same quarter a year ago. 

Interest income for the quarter ending March 31, 2013 was $2.37 million as compared to $2.08 million in the same quarter a year ago.  The increase in interest income is due in part to the recognition of $270,000 in interest income from a previously classified nonaccrual status loan that was paid off during the current quarter.  This allowed for the recovery of prior interest income that was previously applied to principal.  Interest expense during the current quarter was $232,000 as compared to $276,000 in the same quarter a year ago.  Our interest costs continue to trend lower as a result of the low rate environment.  We have been able to gradually re-price maturing deposits into current lower market rates.  The Bank achieved a net interest margin of 4.95% as of March 31, 2013 as compared to 4.79% for the same period last year. 

There were no provisions for loan losses in the current quarter of this year nor were there any in the same quarter a year ago.  The Bank's methodology did not identify the need for a provision for loan loss due to management's judgment regarding adequate reserves to cover measured probable losses in our loan portfolio. 

Non-interest income during the current quarter was $60,000 as compared to $49,000 for the same quarter in the prior year.  Non-interest expenses during the current quarter totaled $1.59 million for the quarter ending March 31, 2013.  This compares to $1.54 million for the same period ending in 2012.  The efficiency ratio, which measures the amount of overhead expense per net interest income plus noninterest income, was 72.46% for the first quarter of this year as compared to 82.80% for the same period ending in 2012.  The efficiency ratio moved lower primarily due to higher net interest income.  

FINANCIAL HIGHLIGHTS








Assets

3/31/2012


3/31/2013


Y-O-Y Change


Cash and Due From Bank

$  4,740


$  7,504


$  2,764


Investment Securities

5,540


6,380


840


Federal Funds Sold

26,360


28,850


2,490


Loans, gross

130,102


143,839


13,737


Loan Loss Reserve

(4,121)


(3,430)


691


Other Assets

3,573


3,285


(288)


Total Assets

$  166,194


$  186,428


$  20,234









Liabilities and Capital

3/31/2012


3/31/2013


Y-O-Y Change


Deposits

$  143,771


$  163,877


$  20,106


Borrowings

2,000


-


(2,000)


Other Liabilities

753


757


4


Equity

19,670


21,794


2,124


Total Liabilities and Capital

$  166,194


$  186,428


$  20,234



 

Three Months Ended


Income Statement

3/31/2012


3/31/2013


Q-O-Q Change


Interest Income

$  2,082


$  2,371


$  289


Interest Expense

276


232


(44)


Net Interest Income

1,806


2,139


333


Provision for Loan Losses

-


-


-


Other Income

49


60


11


Operating Expenses

1,536


1,593


57


Tax

(9)


(1)


8


Net Income

310


605


295


 

Ratios (annualized)

3/31/12


3/31/13

Tier One Leverage Ratio

11.92%


11.93%

Return on Assets

0.76%


1.35%

Return on Equity

6.34%


11.26%

Earnings Per Share (Basic)

$  0.09


$  0.19

Book Value Per Share (Basic)

$  6.02


$  6.66

Efficiency Ratio

82.80%


72.46%

Note:  The above presentation is shown in thousands, except for financial ratios, earnings per share and book value per share.

About Pacific Valley Bank:
Pacific Valley Bank is a California State chartered bank that commenced operations in September 2004.  Pacific Valley Bank serves three locations; administrative headquarters and branch offices in Salinas, King City and Monterey, California.  The Bank offers a broad range of banking products and services, including credit and deposit services to small and medium sized businesses, agriculture related businesses, non-profit organizations, professional service providers and individuals.  The Bank serves customers primarily in Monterey County.  For more information, visit www.pacificvalleybank.com.

Safe Harbor Statement:
Except for the historical information in this news release, the matters described herein are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, our ability to maintain adequate levels of capital and liquidity, our ability to manage loan delinquency rates, our ability to price deposits to retain existing customers and achieve low-cost deposit growth, manage expenses and lower the efficiency ratio, expand or maintain the net interest margin, mitigate interest rate risk for changes in the interest rate environment, competitive pressures in the banking industry, access to available sources of credit to manage liquidity, the local and national economic environment, and other risks and uncertainties. Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this release. Pacific Valley Bank undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Investors are encouraged to read the Pacific Valley Bank annual reports which are available on our website.                                     

Contacts: David B. Warner, CEO at (831) 771-4323
                Peter K. Shah, Chairman (831) 261-8651

SOURCE Pacific Valley Bank



RELATED LINKS
http://www.pacificvalleybank.com

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