River Valley Community Bank Posts Record Quarterly Earnings; Announces 5-for-4 Stock Split

River Valley Community Bank Posts Record Quarterly Earnings; Announces 5-for-4 Stock Split

YUBA CITY, Calif, Oct. 14, 2015 (GLOBE NEWSWIRE) — River Valley Community Bank (OTC Markets:RVVY) headquartered in Yuba City, California, earned, after tax, $491,192, or $0.27 basic earnings per share for the three months ended September 30, 2015.  The quarterly earnings and earnings per share both reflect new records for the Bank.  These results compare to after tax earnings of $281,290 or $0.16 basic earnings per share earned in the corresponding period for 2014.  For the nine months ended September 30, 2015 the Bank earned $1,221,779 or $0.67 per share, up from $781,158 or $0.45 per share in the corresponding period for the prior year. 

As of September 30, 2015, total Assets and Deposits were $218,262,408 and $194,420,660 respectively; Assets increased 10.4% while Deposits rose 10.0% from the same date for the prior year. Gross Loans of $106,136,406 had increased 38.6% from September 30, 2014.  There were no past due or nonaccrual loans at September 30, 2015.  Shareholder Equity increased to $22,699,901 at September 30, 2015 from $20,386,662 at September 30, 2014.  Book value of $12.39 per share as of September 30, 2015 had increased from $11.73 at September 30, 2014.

Net Interest Income for the three months ended September 30, 2015 of $1,603,202 increased 32.0% from $1,214,763 in the corresponding period for the prior year.  This increase was a function of the Bank’s growth over the past year driving increases in the earning asset base; also, changes in the earning asset mix resulted in higher yields in the three months ended September 30, 2015 compared to the corresponding period for 2014.  The Bank’s earning asset yields are reflected in the Net Interest Margin (NIM) which increased in the three months ended September 30, 2015 to 3.12% from 2.87% in the corresponding period for 2014.  Return on average shareholder equity and return on average assets were at 8.69% and .88% respectively for the three months ended September 30, 2015 and had increased from 5.52% and .61% in the three months ended September 30, 2014.

During the three months ended September 30, 2015, the Bank’s earnings included $47,988 in realized gains on the sale of investment securities and there were no comparable realized gains in the corresponding period for 2014.  The Bank’s earnings during the three months ended September 30, 2015 also include an expense provision of $60,000 which was added to the Allowance for Loan & Lease Losses (ALLL).  With this provision, along with the ones taken in the first and second quarters, the Bank has added $160,000 to its allowance for future losses through the nine months ended September 30, 2015.  These provisions are a function of the Bank’s recent loan growth and there was $2,500 in comparable provisions made during the nine months ended September 30, 2014.  The ALLL stands at $1,750,304 or 1.65% of Gross Loans at September 30, 2015.

John M. Jelavich, President and Chief Executive Officer commented, “I am very pleased with the development of our Bank’s earnings stream in what has been a challenging interest rate environment for our industry.  Even excluding the non-recurring realized gains we had during the third quarter, our earnings would have still reflected a new quarterly record for the Bank.  Our year-over-year increases are a primarily a function of our loan growth and both our Yuba/Sutter and Grass Valley operations continue to contribute to the Bank’s loan growth and profitability.”

Jelavich continued, “We are well positioned in the markets we serve and continue to see new customer interest in our Bank.  I’m very proud of the professionalism of our banking team and their dedication to serving our customers in the offering of our competitive products and services.  Looking forward, I remain encouraged about the prospects for our Bank.”

Concurrent with the announcement of third quarter earnings, River Valley Community Bank also announced that its  Board of Directors has approved a five-for-four split of the Bank’s common stock (the “Split”).  One of the primary purposes of the stock split is to enhance the liquidity of the stock by making more shares available to all shareholders.  Each shareholder of record at the close of business on October 30, 2015 will receive five shares for each four outstanding shares held on that record date.  Share certificates reflecting the split will be mailed directly to shareholders shortly thereafter or be reflected in their account if held through a broker.  The Bank will not issue fractional shares as a result of the Split.  In lieu thereof, each shareholder who would otherwise be entitled to receive a fractional share as a result of the Split will receive from the Bank, in cash, the fair value of such a fractional share.  The Bank anticipates that trading will begin on a split-adjusted basis on November 2, 2015.

River Valley Community Bank has been rated “5-Star Superior” by Bauer Financial for 29 consecutive quarters and has an A+ rating from DepositAccounts.com.  The Bank serves its customer base through its offices located at:

  • 1629 Colusa Avenue, Yuba City, CA
  • 426 Sutton Way, Grass Valley, 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.