SCVBank Reports Second Quarter Results by EON


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									SCVBank Reports Second Quarter Results
    l   Improved operating results
    l   Improved liquidity
    l   Stable deposits
    l   Strong capital ratios

August 13, 2010 04:10 PM Eastern Daylight Time  

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

SCVBank reported quarterly revenue of $1,929,000 compared to $2,102,00 for the second quarter 2009. Net
interest income was $1,299,000, a decrease of 5.5% from the $1,374,000 of net interest income reported in the
second quarter of 2009. The decrease in the net interest income is primarily a function of lower loan demand offset
by reduced interest expense. Non-interest income of $316,000 was $59,000 or 23% higher than the period a year
earlier. Non-interest expense is being impacted by higher FDIC premiums, insurance costs and costs related to
collection of non-performing assets.

SCVBank recorded a net loss for the second quarter of 2010 of $225,000 compared to net income of $72,000 for
the period a year earlier. The loss occurred primarily as a result of a $500,000 addition to the loan loss reserve, as a
result of several nonperforming assets 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 9.04% at quarter end, well above the requirement of 5% to be considered a well capitalized institution. Total
risk-based capital is 14.19%, well above the 10% level needed to be considered well capitalized.

For the six month period ending 6/30/10, the Bank reported a loss of $406,000, compared to a loss of $394,000
for the same period a year earlier. On a pretax basis, this quarter’s loss is less than last year’s pre-tax loss of

Michael D. Hause, President and CEO reported, “Several of the write-downs in the second quarter completely
eliminated some of the Bank’s largest problem assets. Loan delinquencies, which are often the first sign of loan
problems, have dropped dramatically. As of quarter end, delinquent loans between 30 and 90 days past due were
down to $1.5 million”.

During the quarter, deposits remained stable while the Bank’s liquidity increased significantly. Investments increased
$10 million from $30.3 million at 2009 year-end to $40.4 million.

“The Bank remains in a very strong capital position. Since the beginning of the recession, we have tightened
underwriting standards and have improved internal processes to strengthen the Bank’s efficiency and effectiveness,” 
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

  Santa Clara Valley Bank Corporate Headquarters
  901 East Main Street
  Santa Paula, California 93060

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

Santa Clara Valley Bank, N. A.
Balance Sheets                                        Unaudited            Audited
                                                      June 30, 2010        December 31, 2009
Cash and non-interest bearing due from banks          $ 2,534,000    $       4,522,000
Investments                                             40,414,000           30,286,000
Loans                                                   92,975,000           103,131,000
Allowance for loan losses                               (2,661,000 )         (3,312,000         )
Other assets                                            6,656,000            5,070,000
Total Assets                                          $ 139,918,000  $       139,697,000
Liabilities and Stockholders' Equity:
Deposits                                         $ 119,676,000   $ 121,248,000
Borrowed Funds                                     7,348,000       6,550,000
Other liabilities                                  467,000         493,000
Stockholders' equity                               12,427,000      11,406,000
Total Liabilities and Stockholders' Equity       $ 139,918,000   $ 139,697,000
Tier 1 leverage ratio                              9.04        % 8.15              %
Tier 1 risked-based capital ratio                  12.92       % 11.04             %
Total risk-based capital ratio                     14.19       % 12.31             %
Book value per common share                      $ 6.61          $ 7.90
Common shares outstanding (end of period)          1,442,167       1,077,167
                                                 For the Six Months Ended June 30,
Statements of Income (unaudited)                   2010            2009
Interest income                                  $ 3,306,000     $ 3,551,000
Interest expense                                   661,000         956,000
Net interest income                                2,645,000       2,595,000
Provision for loan losses                          800,000         1,150,000
Noninterest income                                 347,000         423,000
Noninterest expense                                2,598,000       2,568,000
Income (loss) before taxes                         (406,000    )   (700,000        )
Income tax (benefit) provisional                   -               (306,000        )
Net Income (Loss)                                $ (406,000    ) $ (394,000        )
Preferred stock dividend                           (40,000     )   (40,000         )
Net income (loss) applicable to common shares $ (446,000       ) $ (434,000        )
Loss per common share, basic                       ($0.31      )   ($0.40          )
Return on average assets                           -0.59       % -0.56             %
Return on average equity                           -6.53       % -5.78             %
                                                 For the Three Months Ended June 30,
                                                   2010            2009
Quarterly net income                             $ (225,000    ) $ 73,000
Preferred stock dividend                           -               (40,000         )
Quarterly net income applicable to common shares $ (225,000    ) $ 33,000
Nonperforming assets                             $ 6,787,000     $ 6,246,000
Santa Clara Valley Bank
Michael D. Hause
President & Chief Executive Officer


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