River Valley Community Bancorp Announces Record Earnings for Second Consecutive Quarter (Unaudited)

YUBA CITY, Calif, Oct. 17, 2017 (GLOBE NEWSWIRE) — River Valley Community Bancorp (OTC markets:RVCB) with its wholly owned subsidiary, River Valley Community Bank (collectively referred to as the ‚ÄúBank‚ÄĚ), today announced financial results for the quarter ended June 30, 2017.

Consolidated financial highlights:

  • Net income for the quarter ended September 30, 2017 reached a record level of $720,000 or $0.29 per diluted share, compared to $562,000 or $0.23 per diluted share for the quarter ended September 30, 2016 and $711,000 or $0.29 per diluted share for the quarter ended June 30, 2017.
  • Total assets as of June 30, 2017 were $337.1 million compared to $278.2 million as of September 30, 2016 and $321.2 million as of December 31, 2016.
  • Net interest income reached a record level of $2,297,000 for the quarter ended September 30, 2017 compared to $1,858,000 for the quarter ended September 30, 2016 and $2,186,000 for the quarter ended June 30, 2017.
  • The Bank‚Äôs book value per share reached a record level of $11.74 per common share as of September 30, 2017 compared to $10.62 as of September 30, 2016 and $10.60 as of December 31, 2016.
                     
Selected Consolidated Financial Information – Unaudited
(amounts in thousands, except per share data)
                     
    Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
      2017       2017       2017       2016       2016  
                     
Total investment securities   $   145,424     $   149,189     $   150,226     $   143,633     $   108,321  
Total loans, gross       139,554         136,041         131,440         125,036         120,890  
Allowance for loan losses       (2,058 )       (2,056 )       (1,999 )       (1,926 )       (1,874 )
Total assets       337,085         321,567         319,380         321,189         278,203  
Total deposits       237,108         233,318         242,119         243,950         230,323  
Borrowings       71,000         60,000         50,000         50,000         20,000  
Total shareholders’ equity ¬† ¬† ¬† 28,132 ¬† ¬† ¬† ¬† 27,597 ¬† ¬† ¬† ¬† 26,170 ¬† ¬† ¬† ¬† 25,301 ¬† ¬† ¬† ¬† 25,330 ¬†
                     
Loan to deposit ratio     59 %     58 %     54 %     51 %     53 %
Book value per common share   $   11.74     $   11.55     $   10.96     $   10.60     $   10.62  
Subsidiary Bank’s Tier 1 leverage ratio ¬† ¬† 8.33 % ¬† ¬† 8.19 % ¬† ¬† 8.08 % ¬† ¬† 8.48 % ¬† ¬† 9.78 %

Total gross loans reached a record level of $139.6 million as of September 30, 2017, which represents an increase of $18.7 million or 15.4% from $120.9 million as of September 30, 2016 and an increase of $14.5 million or 10.7% (annualized growth rate of 14.2%) from $125.0 million as of December 31, 2016.  Total deposits of $237.1 million as of September 30, 2017 represent an increase of $6.8 million or 2.9% from $230.3 million as of September 30, 2016 and a decrease of $6.8 million or 2.9% from $244.0 million as of December 31, 2016.

Selected Consolidated Financial Information – Unaudited (continued)
(amounts in thousands, except per share data)
                                     
    Sep 30,   Jun 30,   Mar 31,   Dec 31,   Sep 30,
      2017       2017       2017       2016       2016  
                     
Net interest income   $   2,297     $   2,186     $   2,123     $   2,058     $   1,858  
Provision for loan losses ¬† ¬† ¬† –¬† ¬† ¬† ¬† ¬† 55 ¬† ¬† ¬† ¬† 70 ¬† ¬† ¬† ¬† 51 ¬† ¬† ¬† ¬† 44 ¬†
Net income       720         711         629         648         562  
                     
Earnings per share Рbasic   $   0.30     $   0.30     $   0.26     $   0.28     $   0.23  
Earnings per share Рdiluted   $   0.29     $   0.29     $   0.26     $   0.28     $   0.23  
Net interest margin     2.88 %     2.81 %     2.80 %     2.86 %     3.10 %
Net interest margin Рtax equivalent            2.96 %     2.90 %     2.91 %     2.97 %     3.24 %
Efficiency ratio     53.71 %     51.26 %     54.20 %     50.53 %     54.10 %
Return on average assets     0.87 %     0.87 %     0.79 %     0.86 %     0.89 %
Return on average equity     10.23 %     10.62 %     9.90 %     10.05 %     8.87 %

Net interest income of $2.3 million for the quarter ended September 30, 2017 represents an increase of $439,000 or 23.6% from $1.9 million for the quarter ended September 30, 2016.¬† The primary contributors to this increase were growth in average loans and management‚Äôs strategy to better leverage the Bank‚Äôs excess capital through purchases of investment securities using excess liquidity and Federal Home Loan Bank (‚ÄúFHLB‚ÄĚ) borrowings.¬† The Bank‚Äôs net interest margin was 2.88% for the quarter ended September 30, 2017, down from 3.10% for the same quarter a year ago.¬† The decrease is attributable to a significant increase in floating rate investment securities purchased during the past year using FHLB borrowings.¬† Although the margin on these additional investments is lower than that of the Bank‚Äôs other earning assets, the leveraging strategy improves the Bank‚Äôs net income and return on average equity.¬† The Bank remains well capitalized as of September 30, 2017 with a Tier 1 leverage ratio of 8.33%.

CFO Michael Finn stated, ‚ÄúSo far in 2017, management‚Äôs leveraging strategy has contributed significantly to the Bank‚Äôs net interest income, helping to raise the return on average equity to over 10% in the two most recent quarters.¬† Borrowings increased during the third quarter to supplement the seasonal outflow of deposits that have historically returned later in the year.¬† As new loans are added and replace investment securities and funding from new deposits is used to repay FHLB borrowings, our margins will continue to improve and further increase earnings.‚ÄĚ

CEO John M. Jelavich commented, ‚ÄúThe Bank continues to demonstrate strong earnings and growth reflected in both our top and bottom line figures.¬† Our loan pipeline remains solid, which is a reflection of our strong service and a good indicator of regional economic health and business confidence.¬† We are making strides in establishing our permanent branch location in Grass Valley with initial ground work commencing in September.¬† Our expectation is for the new office to be complete and the relocation to occur in the third quarter of next year.¬† We remain encouraged by the positive feedback we receive on our plans and believe our new facility will enhance our ability to serve that market.‚ÄĚ

The Bank is rated “5-Star Superior” by Bauer Financial and 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‚Äźlooking statements. Forward‚Äźlooking 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‚Äźlooking statements speak only as to the date they are made. The Bank does not undertake to update forward‚Äźlooking statements to reflect circumstances or events that occur after the date the forward‚Äźlooking statements are made.¬†¬†