SCVBank Reports Solid Operating Profit in First
l Increase in Non-interest Income
l Reduction in Non-performing Assets
l Large Reduction in Loan Charge-offs
April 22, 2011 03:27 PM Eastern Daylight Time
SANTA PAULA, Calif.--(EON: Enhanced Online News)--Santa Clara Valley Bank (SCVBank) (OTCBB:SCVE)
today announced its 2011 first quarter financial results.
SCVBank recorded a net profit of $131,000 for the first quarter of 2011 compared to a loss of $181,000
experienced a year earlier. The $131,000 profit results in an income per common share, basic of $0.09. The profit
reflects improved credit conditions, reduced interest expense and reduced operational expenses.
Interest expense has been reduced from $346,000 for the first quarter 2010 to $215,000 for the same period in
2011. Non-interest income increased from $33,000 to $130,000 year-over-year.
Non-performing assets are down from $6.6 million as of March 31, 2010 to $4.9 million as of March 31, 2011.
Due to improved credit conditions, there was no loan loss provision taken in the first quarter 2011, compared to
$300,000 in the same period in 2010. This change also reflects the current robust level of the Bank’s allowance for
loan loss, at 2.91% of gross loans outstanding. Loan charge-offs were greatly reduced from $161,000 for this
quarter, compared to $737,000 the same quarter 2010.
SCVBank continues to maintain a strong capital position with a Tier 1 leverage ratio of 10.35%, up from 9.14% a
year ago. A Tier 1 leverage ratio of 5% is required to be considered a well capitalized institution. Total risk-based
capital is 17.00%, well above the 10% level needed to be considered well capitalized.
Liquidity is very strong as cash and investments equal $48.8 million.
Total assets have dropped slightly over the past twelve months, from $136.6 million to $132.4 million. This drop
occurred as management strategically steered high priced deposits from the balance sheet.
CEO Michael Hause noted, “The profitability in the first quarter is welcomed although optimum income will be
achieved when non-performing assets are reduced further and loan growth is experienced.”
“The first quarter income of $131,000 is a testament to the hard work of the board and management to adapt to the
economic conditions experienced over the past several years. The trends are positive,” said Chairman Ralph De
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
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
March 31, 2011 December 31, 2010
Cash and due from banks $ 4,358,000 $ 3,089,000
Investments 44,434,000 45,500,000
Loans 82,374,000 85,254,000
Allowance for loan losses (2,394,000 ) (2,555,000 )
Other assets 3,624,000 5,132,000
Total Assets $ 132,396,000 $ 136,420,000
Liabilities and Stockholders' Equity:
Deposits $ 110,351,000 $ 114,166,000
Borrowed Funds 8,636,000 8,550,000
Other liabilities 286,000 1,742,000
Stockholders' equity 13,123,000 11,962,000
Total Liabilities and Stockholders' Equity $ 132,396,000 $ 136,420,000
For the Three Months Ended
Statements of Income (unaudited) March 31, 2011 March 31, 2010
Interest income $ 1,543,000 $ 1,690,000
Interest expense 215,000 346,000
Net interest income 1,328,000 1,344,000
Provision for loan losses - 300,000
Noninterest income 130,000 33,000
Noninterest expense 1,327,000 1,258,000
Income (loss) before taxes 131,000 (181,000 )
Income tax (benefit) provisional -
Net Income (Loss) $ 131,000 $ (181,000 )
Preferred stock dividend - (40,000 )
Net income (loss) applicable to common shares $ 131,000 $ (221,000 )
Income (Loss) per common share, basic $ 0.09 ($0.17 )
Book value per common share $ 6.15 $ 8.41
Common shares outstanding (end of period) 1,472,167 1,077,167
Return on average assets 0.40 % -0.52 %
Return on average equity 4.33 % -7.32 %
Tier 1 leverage ratio 10.35 % 9.14 %
Tier 1 risked-based capital ratio 15.73 % 12.89 %
Total risk-based capital ratio 17.00 % 14.17 %
Santa Clara Valley Bank
Michael D. Hause
President & Chief Executive Officer