SALINAS, Calif., Jan. 31, 2013 - Pacific Valley Bank (OTCQB: PVBK) announced fourth quarter 2012 net income of $483,000 or $0.15 basic earnings per share as compared to the same quarter last year when we reported a net income of $320,000 or $0.10 basic earnings per share. The net income for the full year 2012 was $1.91 million or $0.58 basic earnings per share as compared to the prior year 2011 when the net income was $1.20 million or $0.37 basic earnings per share.
Fourth Quarter 2012 Financial Highlights (annualized):
Return on Average Assets (ROA): 1.11%
Net Interest Margin (NIM): 4.34%
Efficiency Ratio: 75.00%
Year 2012 Financial Highlights:
Return on Average Assets (ROA): 1.12%
Net Interest Margin (NIM): 4.51%
Efficiency Ratio: 75.12%
"This has been the best year in our Bank's history, with continued loan and deposit growth and strong earnings. We were able to achieve all of our financial performance targets for the year. The fourth quarter of 2012 was our 9th consecutive quarter of profitability," stated David B. Warner, President and Chief Executive Officer. "Pacific Valley Bank is emerging as a prominent and respected institution in our home market in Monterey County. Our most valued customers are speaking highly of our services in the community and helping us build our 'brand.'"
Balance Sheet and Loan Quality Review:
Total assets were $194.00 million at December 31, 2012, which is an increase of $15.80 million from the same period last year when assets were $178.20 million. Our gross loans at December 31, 2012 were $151.55 million, which is an increase of $15.14 million as compared to $136.41 million at December 31, 2011.
The allowance for loan losses as of December 31, 2012 was $3.40 million, which is a lower level than year-end 2011 when it was $3.54 million. The percentage of allowance for loan losses to gross loans outstanding at December 31, 2012 was 2.24% as compared to 2.59% for year-end 2011. The lower allowance for loan losses is occurring as a result of continued improvement in loan quality, thereby requiring a lower amount of reserves for future probable and estimated losses.
A significant component of our current liquidity position is reflected in our excess balances held at the Federal Reserve, which total $29.14 million as of December 31, 2012 as compared to $26.91 million as of December 31, 2011. The Bank's liquidity is in a good position and continues to be available to support future loan growth. Deposits moved higher to $172.07 million as of December 31, 2012 as compared to $156.04 million for year-end 2011.
Stockholders' equity at December 31, 2012 was $21.20 million as compared to $19.37 million from the period ending December 31, 2011. At December 31, 2012 our Tier 1 capital to average assets ratio was 11.57% and our total risk-based capital ratio was 15.17% as compared to 11.04% and 14.41% as of December 31, 2011, respectively.
Review of Operations:
The core earnings of the Bank are measured by the interest income plus non-interest income less interest expense. During the current fourth quarter, core earnings of the Bank were $2.00 million, which is higher by comparison to $1.71 million for the same quarter a year ago. The core earnings for the twelve month period ending December 31, 2012 were $7.88 million as compared to the same period ending December 31, 2011 when the core earnings were $7.24 million.
Interest income for the quarter ending December 31, 2012 was $2.18 million as compared to $2.11 million in the same quarter a year ago. The interest income for the twelve month period ending December 31, 2012 was $8.49 million as compared to the same period ending December 31, 2011 when it was $8.27 million. Interest expense during the current quarter was $253,000 as compared to $302,000 in the same quarter a year ago. The interest expense for the twelve month period ending December 31, 2012 was $1.03 million as compared to the same period endingDecember 31, 2011 when it was $1.28 million. 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 net interest margins of 4.34% and 4.27% for the quarter-ending periods December 31, 2012 and December 31, 2011, respectively. On a full year basis, the Bank achieved net interest margins of 4.51% and 4.36% for the periods ending December 31, 2012 and December 31, 2011, respectively.
There were no provisions for loan losses in the current quarter of this year nor 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. On a year-to-date basis, there were no provisions for loan losses in 2012 as compared to $265,000 for the same period during 2011.
Non-interest expenses during the current quarter totaled $1.50 million for the quarter ending December 31, 2012. This compares to $1.42 million for the same period ending in 2011. The non-interest expenses for the twelve month period ending December 31, 2012 were $5.92 million as compared to the same period ending December 31, 2011 when they were $5.77 million. The efficiency ratio, which measures the amount of overhead expense per net interest income plus noninterest income, was 75.00% for the fourth quarter of this year as compared to 82.83% for the same period ending in 2011. The efficiency ratio moved lower primarily due to higher net interest income. On a full year basis, the Bank's efficiency ratios were 75.12% and 79.66% for the periods ending December 31, 2012 and December 31, 2011, respectively.
Cash and Due From Bank
Federal Funds Sold
Loan Loss Reserve
Liabilities and Capital
Total Liabilities and Capital
Three Months Ended
Net Interest Income
Provision for Loan Losses
Twelve Months Ended
Net Interest Income
Provision for Loan Losses
Allowance for Loan Losses YTD
Tier One Leverage Ratio
Total Risk Based Capital
Return on Assets YTD
Return on Equity YTD
Earnings Per Share YTD
Book Value Per Share
Efficiency Ratio YTD
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 FDIC filing reports of Pacific Valley Bank which are available on our website; including our past year-end financial reports.
Contacts: David B. Warner, CEO at (831) 771-4323
Greg B. Spear, CFO at (831) 771-4317
SOURCE Pacific Valley Bank