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Valley Republic Bancorp Reports Second Quarter 2018 Financial Results

BAKERSFIELD, Calif., July 19, 2018 /PRNewswire/ -- Valley Republic Bancorp (VLLX) today announced its financial results for the quarter ended June 30, 2018.

Highlights for the 2nd Quarter of 2018 Compared to the 2nd Quarter of 2017:

  • Net income: up 41%
  • Pretax income: up 31%
  • Net loans: up 12%
  • Deposits: up 7%
  • Total assets: up 7%
  • Basic earnings per share increased from $0.38 to $0.52 (up 37%)
  • Book value per share: up $1.38 ($15.73 vs. $14.35)

Financial Performance

Valley Republic Bancorp reported net income for the second quarter of 2018 of $2,008,000 compared to $1,423,000 in the same quarter of 2017, an increase of $585,000, or 41%. Basic earnings per share for this quarter were $0.52, compared to $0.38 for the same quarter last year, an increase of 37%.

As of June 30, 2018, year to date net income was $4,323,000, compared to $2,660,000 for the same period in the prior year. This represents an increase of $1,663,000 or 63%, year over year. Basic year to date earnings per share were $1.12 compared to $0.72 in the prior year.

Bruce Jay, President & CEO, stated, "The growth and continued strong performance of Valley Republic Bancorp and Valley Republic Bank has continued through the first half of 2018. The substantial increase in earnings over comparable periods in 2017 and 2018 is due to several factors, all contributing in a positive manner. Loan and deposit growth are key drivers and were supported by increases in market interest rates, which have positively influenced our net interest margin. A lower corporate tax rate, beginning in 2018, has reduced income tax expense. The exercise of stock options, which were granted to directors and founders upon the successful opening of the bank in 2009, has also reduced income tax expense this year. Lastly, we remain diligent in controlling expenses."  

Growth

Total assets were $683.1 million at the end of the second quarter of 2018. Compared to the end of the second quarter last year, this represents an increase of $44.4 million, or 7%. When compared to $667.6 million at year-end 2017, this is an increase of $15.5 million, or 2%.

Total net loans were $460.2 million at June 30, 2018. Compared to the end of the second quarter of 2017, this is an increase of $49.5 million, or 12%. Compared to $447.9 million at December 31, 2017, this is an increase of $18.9 million, or 4%. At June 30, 2018, the Bank had no nonperforming loans or loan payments that were more than 30 days delinquent.

Eugene Voiland, Chairman of the Board, stated, "We continue to maintain high credit quality standards, which have been consistently applied since the opening of the Bank. This has contributed to the steady, consistent growth of our loan portfolio, with no loans 30-days or more past due and no loans on non-accrual status."  

Total deposits were $615.5 million at June 30, 2018. Compared to the end of the second quarter last year, this is an increase of $39.4 million, or 7%. This is an increase of $12.2 million, or 2%, when compared to $603.3 million at December 31, 2017.   

Capital

Total shareholders' equity at June 30, 2018 was $61.3 million. Compared to June 30, 2017, total shareholders' equity has increased by $7.6 million, or 14%. Total shareholders' equity increased by $4,895,000, or 9%, 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.)

June 30, 2018


December 31, 2017





ASSETS








Cash and Due From Banks

$                10,536


$                  9,039

Federal Funds Sold & Interest-Bearing Deposits in Banks

34,156


50,730

Total Cash and Equivalents

44,692


59,769





Time Certificates of Deposit in Banks

29,264


30,952





Investment Securities:




Available-for-Sale

60,565


51,064

Held-to-Maturity

55,023


52,435

Total Investment Securities

115,588


103,499





Loans, Net of Deferred Fees and Costs

466,768


447,859

Allowance for Loan losses

(6,530)


(6,116)

Net Loans

460,238


441,743





Premises and Equipment

1,501


1,538

Bank Owned Life Insurance

10,360


10,235

Interest Receivable and Other Assets

21,461


19,889





TOTAL ASSETS

$              683,104


$              667,625









LIABILITIES AND SHAREHOLDERS' EQUITY








Liabilities








Deposits




Noninterest-Bearing

$              257,843


$              245,892

Interest-Bearing

357,640


357,378

Total Deposits

615,483


603,270





Accrued Interest Payable and Other Liabilities

6,299


7,928

Total Liabilities

621,782


611,198





Shareholders' Equity








Common Stock, no Par Value

44,608


43,167

Additional Paid-in Capital

1,562


1,745

Retained Earnings

16,251


11,928

Accumulated Other Comprehensive Income (Loss)

(1,099)


(413)

Total Shareholders' Equity

61,322


56,427





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$              683,104


$              667,625





Book Value per Share

$                  15.73


$                  14.94

 

Valley Republic Bancorp and Subsidiary
Income Statement


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

Quarters Ended June 30,


Year to Date Ended June 30,


2018


2017


2018


2017

INTEREST INCOME








Loans (Including Fees and Costs)

$          5,428


$          4,492


$        10,539


$          8,663

Investment Securities

609


455


1,087


907

Other

263


219


586


374









Total Interest Income

6,300


5,166


12,212


9,944









INTEREST EXPENSE








Deposits

628


317


1,182


599









Total Interest Expense

628


317


1,182


599









Net Interest Income

5,672


4,849


11,030


9,345

Provision For Loan Losses

202


217


404


451









Net Interest Income After Provision for Loan Losses

5,470


4,632


10,626


8,894









NON-INTEREST INCOME








Service Charges and Fees on Deposits

126


114


256


223

Gain (Loss) on Sale of Securities

(6)


9


(6)


9

Other Non-Interest Income

222


295


725


704









Total Non-Interest Income

342


418


975


936









NON-INTEREST EXPENSE








Salaries and Employee Benefits

1,888


1,883


3,878


3,773

Occupancy & Equipment

314


295


659


575

Other

929


826


1,854


1,619









Total Non-Interest Expense

3,131


3,004


6,391


5,967









Income Before Taxes

2,681


2,046


5,210


3,863

Income Taxes

673


623


887


1,203









NET INCOME

$          2,008


$          1,423


$          4,323


$          2,660









Basic Earnings per Share

$            0.52


$            0.38


$            1.12


$            0.72









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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