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River Valley Community Bancorp Announces 4th Quarter and Annual Financial Results (Unaudited)

YUBA CITY, Calif., Jan. 21, 2020 (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 and year ended December 31, 2019.

Consolidated financial highlights:

  • Total assets as of December 31, 2019 reached a new record level of $442.3 million compared to $377.0 million as of December 31, 2018.
  • Net income for the year ended December 31, 2019 also reached a new record level of $4.2 million or $1.68 per diluted share compared to $3.7 million or $1.48 per diluted share for the year ended December 31, 2018.
  • Net income for the quarter ended December 31, 2019 totaled $1.0 million or $0.39 per diluted share compared to $0.8 million or $0.32 per diluted share for the quarter ended December 31, 2018 and $1.0 million or $0.39 per diluted share for the quarter ended September 30, 2019.
  • Net interest income totaled $12.4 million for the year ended December 31, 2019 compared to $10.7 million for the year ended December 31, 2018.
  • Net interest income totaled $3.2 million for the quarter ended December 31, 2019 compared to $3.0 million for the quarter ended December 31, 2018 and $3.1 million for the quarter ended September 30, 2019.
Selected Consolidated Financial Information - Unaudited
(dollar amounts in thousands, except per share data)
                     
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
      2019       2019       2019       2019       2018  
                     
Total investment securities   $ 174,755     $ 168,094     $ 156,731     $ 169,269     $ 158,476  
Total loans, gross     203,057       194,920       186,735       180,066       168,727  
Allowance for loan losses     (2,546 )     (2,425 )     (2,322 )     (2,265 )     (2,139 )
Total assets     442,310       419,308       402,663       383,337       376,986  
Total deposits     337,129       314,091       271,932       268,763       285,774  
Borrowings     65,000       65,000       85,000       80,000       60,000  
Total shareholders' equity     37,797       38,042       36,108       33,219       29,936  
                     
Loan to deposit ratio     60 %     62 %     69 %     67 %     59 %
Book value per common share   $ 15.95     $ 16.01     $ 15.10     $ 13.93     $ 12.56  
Subsidiary Bank's Tier 1 leverage ratio   8.20 %     8.30 %     8.44 %     8.34 %     8.40 %

Total gross loans were $203.1 million as of December 31, 2019, which represents an increase of $34.3 million or 20.3% from $168.7 million as of December 31, 2018.  As of December 31, 2019, the Bank had no non-accrual loans.  Total deposits of $337.1 million as of December 31, 2019 represent an increase of $51.4 million or 18.0% from $285.8 million as of December 31, 2018.  

Selected Consolidated Financial Information - Unaudited (continued)
(dollar amounts in thousands, except per share data)
                 
    Year Ended        
    Dec 31,   Dec 31,   Variance
      2019       2018     Amount   Percent
                 
Net interest income   $ 12,357     $ 10,727     $ 1,629       15.2 %
Provision for loan losses     385       130       255       196.2 %
Net income     4,159       3,656       503       13.7 %
                 
Earnings per share - basic   $ 1.75     $ 1.53     $ 0.22       14.4 %
Earnings per share - diluted   $ 1.68     $ 1.48     $ 0.20       13.5 %
Net interest margin     3.20 %     3.15 %     0.05 %     1.7 %
Net interest margin - tax equivalent     3.25 %     3.20 %     0.06 %     1.8 %
Efficiency ratio     58.54 %     55.65 %     2.89 %     5.2 %
Return on average assets     1.02 %     1.02 %     0.00 %     0.4 %
Return on average equity     11.77 %     12.60 %     -0.83 %     -6.6 %


Selected Consolidated Financial Information - Unaudited (continued)
(dollar amounts in thousands, except per share data)
                     
    Quarter Ended
    Dec 31,   Sep 30,   Jun 30,   Mar 31,   Dec 31,
      2019       2019       2019       2019       2018  
                     
Net interest income   $ 3,192     $ 3,118     $ 3,079     $ 2,968     $ 2,958  
Provision for loan losses     105       100       55       125       130  
Net income     964       962       1,357       876       784  
                     
Earnings per share - basic   $ 0.41     $ 0.40     $ 0.57     $ 0.37     $ 0.33  
Earnings per share - diluted   $ 0.39     $ 0.39     $ 0.55     $ 0.35     $ 0.32  
Net interest margin     3.09 %     3.19 %     3.28 %     3.26 %     3.29 %
Net interest margin - tax equivalent     3.12 %     3.23 %     3.35 %     3.32 %     3.35 %
Efficiency ratio     59.49 %     56.47 %     57.24 %     61.03 %     63.71 %
Return on average assets     0.89 %     0.94 %     1.37 %     0.91 %     0.83 %
Return on average equity     9.99 %     10.16 %     15.94 %     11.34 %     10.52 %

Net interest income of $12.4 million for the year ended December 31, 2019 is an increase of $1.6 million or 15.2% from the year ended December 31, 2018.  Net interest income of $3.2 million for the quarter ended December 31, 2019 is an increase of $235,000 or 7.9% from the quarter ended December 31, 2018 and an increase of $75,000 or 2.4% (9.6% annualized) from the quarter ended September 30, 2019.  As a function of the Bank’s loan growth, a provision expense of $385,000 was realized during the year ended December 31, 2019.

CFO Michael Finn commented, “The Bank experienced significant deposit growth during the latter half of 2019, which is attributable to both recent branch expansion as well as further saturation in existing markets served by the Bank.  Management reduced non-core funding sources as a result of the added deposits, which is contributing to lower funding costs.  In October 2019, the Bank announced the upcoming addition of a branch office in Marysville.  Costs incurred in preparation for the new branch and the addition of production related staff contributed to an increase in the Bank’s efficiency ratio during the fourth quarter, which management expects will stabilize and eventually decrease as the new branch approaches profitability and new staff contribute to core loan and deposit growth.”

CEO John M. Jelavich stated, “Despite challenges associated with a lower interest rate environment and a flat yield curve, which persisted through most of 2019, we are very pleased with our Bank’s performance.  We ended 2019 with record net income as well as record loans and deposits in all three branches.  The investment we have made in our newer Grass Valley and Auburn branches are contributing to our overall results.  Grass Valley continues to provide meaningful contributions to our Bank’s profitability and core deposit growth.  In Auburn, which opened in late 2018, we experienced solid deposit and loan growth in 2019, and we anticipate that office reaching profitability in 2020.  We expect to be opening our Marysville branch this spring and are encouraged by the positive response we have received from business and community leaders there.  We believe our presence in Marysville will enhance our coverage of the greater Yuba Sutter Market while also leveraging existing synergies we have in the market.”

“During the fourth quarter, the yield curve steepened moderately, which is helpful; however, long term rates are still relatively low.  As long as this rate environment persists, margin pressures will likely remain for our industry.  That said, we believe our geographic footprint, strong balance sheet, and demand for the local relationship banking service we provide position us well to continue to grow our loans and core deposits.   We believe this growth can offset some of the impacts of low long term rates and will enable us to continue to generate value for our shareholders,”  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.