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SCVBank Reports First Quarter Results

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					SCVBank Reports First Quarter Results
    l   Improved Operating Results
    l   Increase in Net Interest Income

April 26, 2010 07:49 PM Eastern Daylight Time  

SANTA PAULA, Calif.--(EON: Enhanced Online News)--Santa Clara Valley Bank (SCVBank) (OTCBB:SCVE)
today announced its 2010 first quarter financial results.

SCVBank reported that net interest income was $1,344,000 in the first quarter of 2010, an increase of 10%, or
$124,000, over the $1,220,000 of net interest income reported in the first quarter of 2009. The increase in the net
interest income is primarily a function of aggressive liability management: higher priced funding sources were replaced
by lower costing deposits. Non-interest expense was reduced by $32,000 year-over-year due to cost cutting in
spite of higher FDIC premiums, insurance costs and costs related to collection of non-performing assets.

SCVBank recorded a net loss for the first quarter of 2010 of ($181,000) compared to a net loss of ($467,000) for
the period a year earlier. The $181,000 less preferred stock dividends results in a loss per common share, basic of
($0.15). The loss occurred primarily as a result of a $300,000 addition to the loan loss reserve, as a result of several
loans which were adversely affected by the recession and its effect on collateral values. Despite the loss provision,
SCVBank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 9.17% at quarter end, well
above the requirement of 5% to be considered a well capitalized institution. Total risk-based capital is 14.22%, well
above the 10% level needed to be considered well capitalized.

The loss in the quarter reflects a significant improvement over the fourth quarter of 2009 results when a loss of
$1,195,000 was experienced.

In spite of the economic downturn, SCVBank’s customer base continues to grow. As of 3/31/10, the bank held
5,247 accounts, reflecting a 4.4% increase over a year earlier. CEO Michael Hause noted, “Our attention to
customer service has never wavered, and our customer base continues to refer more and more customers away from
the big banks to a community bank focused on their needs.” He continued, “Being named Best Bank in the Santa
Clarita Valley in 2009 has highlighted the successful branding of SCVBank as the ‘Working for You’ bank.” 

“The Bank is in a very strong capital position. While the results of the first quarter were not welcome, we believe the
trends are positive,” said Chairman Ralph De Leon.

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Under its
stock symbol of SCVE.OB, SCVBank’s stock is traded through McAdams Wright Ragen, Howe Barnes Hofer &
Arnett, and Monroe Securities. The Bank’s web site is www.SCVBank.com.

  Santa Clara Valley Bank Corporate Headquarters
  901 East Main Street
  Santa Paula, California 93060
  805-525-7847

Statements concerning future performance, developments or events concerning expectations for growth and market
forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a
number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors
include, but are not limited to, the effect of interest rate changes, the ability to control costs and expenses, the impact
of consolidation in the banking industry, financial policies of the United States government, and general economic
conditions.

Santa Clara Valley Bank, N. A.
Balance Sheets
                                                 Unaudited                Audited
                                                 March 31, 2010           December 31, 2009
Assets:
Cash and due from banks                          $ 3,556,000              $ 4,522,000
Investments                                        34,194,000               30,286,000
Loans                                              97,412,000               103,131,000
Allowance for loan losses                          (2,878,000         )     (3,312,000          )
Other assets                                       4,300,000                5,070,000
Total Assets                                     $ 136,584,000            $ 139,697,000
Liabilities and Stockholders’ Equity:
Deposits                                      $ 115,864,000        $ 121,248,000
Borrowed Funds                                  7,651,000            6,550,000
Other liabilities                               376,000              493,000
Stockholders' equity                            12,693,000           11,406,000
Total Liabilities and Stockholders’ Equity    $ 136,584,000        $ 139,697,000
                                              For the Three Months For the Three Months
Statements of Income (unaudited)              Ended 3-31-10        Ended 3-31-09
Interest income                               $ 1,690,000          $ 1,706,000
Interest expense                                346,000              486,000
Provision for loan losses                       300,000              900,000
Noninterest income                              33,000               166,000
Noninterest expense                             1,258,000            1,290,000
Income (loss) before taxes                      (181,000       )     (804,000       )
Income tax (benefit) provisional                -                    (337,000       )
Net Income (Loss)                             $ (181,000       ) $ (467,000         )
Preferred stock dividend                        (40,000        )     -
Net income (loss) applicable to common shares $ (221,000       ) $ (467,000         )
Loss per common share, basic                    ($0.15         )     ($0.43         )
Book value per common share                   $ 6.79               $ 7.90
Common shares outstanding (end of period)       1,442,167            1,077,167
Return on average assets                        -0.52          % -1.43              %
Return on average equity                        -5.99          % -14.63             %
Tier 1 leverage ratio                           9.17           % 10.47              %
Tier 1 risked-based capital ratio               13.12          % 12.42              %
Total risk-based capital ratio                  14.22          % 13.68              %
Nonperforming assets                          $ 6,230,768          $ 2,972,000

Contacts
Santa Clara Valley Bank
Michael D. Hause
President & Chief Executive Officer
805-525-7847

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Description: SANTA PAULA, Calif.--(EON: Enhanced Online News)--Santa Clara Valley Bank (SCVBank) (OTCBB:SCVE) today announced its 2010 first quarter financial results. SCVBank reported that net interest income was $1,344,000 in the first quarter of 2010, an increase of 10%, or $124,000, over the $1,220,000 of net interest income reported in the first quarter of 2009. The increase in the net interest income is primarily a function of aggressive liability management: higher priced funding sources were replaced a style='font-size: 10px; color:
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