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Valley Republic Bancorp Reports Record Third Quarter 2018 Financial Results

BAKERSFIELD, Calif., Oct. 18, 2018 /PRNewswire/ -- Valley Republic Bancorp (VLLX) today announced its financial results for the quarter ended September 30, 2018.

Highlights for the 3rd Quarter of 2018 Compared to the 3rd Quarter of 2017:

  • Net income: up 45%
  • Pretax income: up 29%
  • Net loans: up 8%
  • Deposits: up 17%
  • Total assets: up 17%
  • Basic earnings per share increased from $0.44 to $0.61 (up 39%)
  • Book value per share: up $1.22 ($16.16 vs. $14.94)

Financial Performance

Valley Republic Bancorp reported record net income for the third quarter of 2018 of $2,374,000 compared to $1,632,000 in the same quarter of 2017, an increase of $742,000, or 45%. Basic earnings per share for this quarter were $0.61, compared to $0.44 for the same quarter last year, an increase of 39%.

As of September 30, 2018, year to date net income was $6,697,000, compared to $4,292,000 for the same period in the prior year. This represents an increase of $2,405,000 or 56%, year over year. Basic year to date earnings per share were $1.72 compared to $1.15 in the prior year, an increase of $0.57 or 50%.

Bruce Jay, President/CEO stated, "Valley Republic Bank, a wholly owned subsidiary of Valley Republic Bancorp, continues to report record earnings and impressive growth which, in turn, are the key performance drivers for the Company.  Third quarter earnings represent a record for the Bank.  Net loan growth of approximately $35 million and core (local) deposit growth of over $105 million during the first nine months of 2018 have been exceptional.  Both contributed significantly to the profitability of the Bank. Increases in market interest rates and lower corporate tax rates beginning in 2018, have reduced year over year income tax expense.  Also, the exercise of stock options, which were granted to directors and founders upon the successful opening of the Bank in 2009, has also contributed to reduced income tax expense during 2018."

Growth

Eugene Voiland, Chairman of the Board of Directors stated, "We are very pleased with the performance of Valley Republic Bancorp and Valley Republic Bank. The Bank has achieved significant growth during 2018.  Our vision and execution strategy have not changed since the inception of the Bank.  Our entire team lives in the communities we serve.  This local knowledge provides the opportunity for relationship-based banking with our focused service. Our team provides this consistency every day."

Total assets were $778.7 million at the end of the third quarter of 2018.  Compared to the end of the third quarter last year, this represents an increase of $109.2 million, or 16%.  When compared to $667.6 million at year-end 2017, this is an increase of $111.1 million, or 17%.

Total deposits were $708.8 million at September 30, 2018.  Compared to the end of the second quarter last year, this is an increase of $103.1 million, or 17%.  This is an increase of $105.5 million, or 17%, when compared to $603.3 million at December 31, 2017.   

Total net loans were $476.4 million at September 30, 2018.  Compared to the end of the third quarter of 2017, this is an increase of $41.7 million, or 10%.  Compared to $441.7 million at December 31, 2017, this is an increase of $34.7 million, or 8%. At September 30, 2018, the Bank had no nonperforming loans or loan payments that were more than 30 days delinquent.

Capital

Total shareholders' equity at September 30, 2018 was $63.8 million.  Compared to September 30, 2017, total shareholders' equity has increased by $8.2 million, or 15%.  Total shareholders' equity increased by $7.3 million, or 13%, compared to $56.4 million at December 31, 2017.

About Valley Republic Bancorp and Valley Republic Bank

Valley Republic Bancorp is a bank holding company formed in 2016. Valley Republic Bank is a wholly-owned subsidiary of Valley Republic Bancorp, headquartered in Bakersfield, California. The Bancorp is subject to the regulatory oversight of the Federal Reserve Bank, and the Bank is subject to the regulatory oversight of the Federal Deposit Insurance Corporation and the California Department of Business Oversight. Valley Republic Bank is an insured, state-chartered, non-member bank of the Federal Reserve System. The Bank is in its tenth year of operation, having been established in 2009. Valley Republic Bank is a full-service, community bank with three full-service banking offices in Bakersfield and one full-service banking office in Delano. Valley Republic Bank emphasizes professional, high quality banking services provided to a wide range of businesses and professionals. The Bank also provides a full complement of banking services that are available to individuals and non-profit organizations.

Valley Republic Bancorp and Subsidiary

Balance Sheet


(Unaudited. Dollars in thousands, except per share data.)

September 30, 2018


December 31, 2017





ASSETS








Cash and Due From Banks

$                  12,058


$                    9,039

Federal Funds Sold & Interest-Bearing Deposits in Banks

107,494


50,730

Total Cash and Equivalents

119,552


59,769





Time Certificates of Deposit in Banks

27,528


30,952





Investment Securities:




Available-for-Sale

68,580


51,064

Held-to-Maturity

53,604


52,435

Total Investment Securities

122,184


103,499





Loans, Net of Deferred Fees and Costs

483,168


447,859

Allowance for Loan losses

(6,729)


(6,116)

Net Loans

476,439


441,743





Premises and Equipment

1,898


1,538

Bank Owned Life Insurance

10,419


10,235

Interest Receivable and Other Assets

20,718


19,889





TOTAL ASSETS

$                778,738


$                667,625









LIABILITIES AND SHAREHOLDERS' EQUITY








Liabilities








Deposits




Noninterest-Bearing

$                299,480


$                245,892

Interest-Bearing

409,292


357,378

Total Deposits

708,772


603,270





Accrued Interest Payable and Other Liabilities

6,209


7,928

Total Liabilities

714,981


611,198





Shareholders' Equity








Common Stock, no Par Value

45,106


43,167

Additional Paid-in Capital

1,386


1,745

Retained Earnings

18,625


11,928

Accumulated Other Comprehensive Income (Loss)

(1,360)


(413)

Total Shareholders' Equity

63,757


56,427





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$                778,738


$                667,625





Book Value per Share

$                    16.16


$                    14.94

 

Valley Republic Bancorp and Subsidiary

Income Statement


(Unaudited. Dollars in thousands, except per share data.)

Quarters Ended September 30,


Year to Date Ended September 30,


2018


2017


2018


2017

INTEREST INCOME








Loans (Including Fees and Costs)

$          5,800


$          4,878


$        16,339


$        13,541

Investment Securities

587


499


1,674


1,406

Other

404


234


990


608

Total Interest Income

6,791


5,611


19,003


15,555









INTEREST EXPENSE








Deposits

937


352


2,119


951

Total Interest Expense

937


352


2,119


951









Net Interest Income

5,854


5,259


16,884


14,604

Provision For Loan Losses

199


267


603


718

Net Interest Income After Provision for Loan Losses

5,655


4,992


16,281


13,886









NON-INTEREST INCOME








Service Charges and Fees on Deposits

114


126


370


349

Other Non-Interest Income

529


444


1,254


1,148

Gain (Loss) on Sale of Securities

-


-


(6)


9

Total Non-Interest Income

643


570


1,618


1,506









NON-INTEREST EXPENSE








Salaries and Employee Benefits

2,022


1,853


5,900


5,626

Occupancy & Equipment

417


332


1,076


907

Other

814


856


2,668


2,475

Total Non-Interest Expense

3,253


3,041


9,644


9,008









Income Before Taxes

3,045


2,521


8,255


6,384

Income Taxes

671


889


1,558


2,092









NET INCOME

$          2,374


$          1,632


$          6,697


$          4,292









Basic Earnings per Share

$            0.61


$            0.44


$            1.72


$            1.15









Company Website: https://www.valleyrepublicbank.com/investor-relations

Forward Looking Statements

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended and Valley Republic Bancorp and Valley Republic Bank (together, the "Company") intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

 

Cision

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