SOURCE: North Valley Bancorp

North Valley Bancorp

August 04, 2009 08:30 ET

North Valley Bancorp Reports Results for the Quarter and Six Months Ended June 30, 2009

REDDING, CA--(Marketwire - August 4, 2009) - North Valley Bancorp (NASDAQ: NOVB), a bank holding company with approximately $913 million in assets, today reported results for the second quarter and six months ended June 30, 2009. North Valley Bancorp ("the Company") is the parent company for North Valley Bank ("NVB").

The Company reported a net loss for the second quarter ended June 30, 2009 of $4,089,000, or $0.55 per diluted share, compared to a net loss of $1,509,000, or $0.20 per diluted share, for the same period in 2008. The Company reported a net loss for the six months ended June 30, 2009 of $7,196,000, or $0.96 per diluted share, compared to a net loss of $1,229,000, or $0.17 per diluted share, for the same period in 2008.

The Company recorded provisions for loan and lease losses of $9,000,000 and $16,000,000 for the second quarter and six months ended June 30, 2009, respectively, compared to provisions for loan and lease losses of $5,200,000 and $7,600,000 for the second quarter and six months ended June 30, 2008. The allowance for loan and lease losses at June 30, 2009 was $22,119,000, or 3.40% of total loans, compared to $11,327,000, or 1.63% of total loans at December 31, 2008 and $13,677,000, or 1.87% of total loans at June 30, 2008.

"Although North Valley had a loss for the quarter, there were several accomplishments worth noting. The Bank continues to maintain strong capital and liquidity levels. The Bank grew deposits by $13 million during the quarter and has grown deposits by $45 million since year-end. We have implemented several cost-cutting initiatives to reduce noninterest expense and our Credit Department continues to work swiftly in resolving problem credits," stated Michael J. Cushman, President and CEO.

At June 30, 2009, total assets were $913,366,000, down $20,995,000, or 2.3%, from $934,361,000 at June 30, 2008. The loan portfolio totaled $650,652,000 at June 30, 2009, a decrease of $79,631,000, or 10.9%, compared to June 30, 2008. The loan to deposit ratio at June 30, 2009 was 81.4% as compared to 98.1% at June 30, 2008, and 91.9% at December 31, 2008. Total deposits grew $55,512,000, or 7.5%, to $799,743,000 at June 30, 2009 compared to $744,231,000 at June 30, 2008. When compared to December 31, 2008, total assets increased $33,815,000 from $879,551,000, driven by an increase in deposits of $44,799,000 from $754,944,000, while loans decreased by $42,770,000 from $693,422,000. Available-for-sale investment securities and Federal funds sold increased $61,209,000 and $29,395,000, respectively, from December 31, 2008 to June 30, 2009 as a result of the increase in deposits and decrease in loans.

At June 30, 2009, the Company's Total Risk-based Capital was $96,670,000, and its risk-based capital ratios were: Total Risk-based Capital ratio - 12.59%; Tier 1 risk-based Capital ratio - 10.41%; and Tier 1 Leverage ratio - 8.98%. At June 30, 2009, NVB's Total Risk-based Capital was $93,686,000, and its risk-based capital ratios were: Total Risk-based Capital ratio - 12.24%; Tier 1 risk-based Capital ratio - 10.97%; and Tier 1 Leverage ratio - 9.46%. "Our capital ratios exceed all regulatory requirements at both the Bank and Company, despite operating losses resulting from actively managing our loan portfolio in these challenging times and appropriately providing for our allowance for credit losses," remarked Kevin R. Watson, Chief Financial Officer.

Credit Quality

Nonperforming loans (defined as nonaccrual loans and loans 90 days or more past due and still accruing interest) totaled $44,304,000 at June 30, 2009, an increase of $21,724,000 from the June 30, 2008 balance of $22,580,000, and an increase of $25,368,000 from the December 31, 2008 balance of $18,936,000. Nonperforming loans as a percentage of total loans were 6.81% at June 30, 2009, compared to 3.09% at June 30, 2008, and 2.73% at December 31, 2008.

Nonperforming assets (nonperforming loans and OREO) totaled $50,433,000 at June 30, 2009, an increase of $19,645,000 from the June 30, 2008 balance of $30,788,000, and an increase of $21,089,000 from the December 31, 2008 balance of $29,344,000. Nonperforming assets as a percentage of total assets were 5.52% at June 30, 2009 compared to 3.30% at June 30, 2008 and 3.34% at December 31, 2008.

The overall level of nonperforming loans increased $24,378,000 to $44,304,000 at June 30, 2009 from $19,926,000 at March 31, 2009. During the second quarter of 2009 the Company added nineteen loans totaling $29,781,000 to nonperforming loans. These additions were offset by reductions in nonperforming loans totaling $5,403,000, due primarily to transfers to OREO of four properties totaling $3,362,000, and secondarily to collections received on certain loans and charge-offs recorded. The Company's OREO properties increased $186,000 to $6,129,000 at June 30, 2009 from $5,943,000 at March 31, 2009. The increase was due to the addition of four properties totaling $3,362,000 during the second quarter of 2009. Three of the properties are from one relationship consisting of residential lot development properties and a residential development property with a single-family residence. The properties are all located in Solano County and total $3,094,000. The fourth property moved into OREO is commercial land located in Sacramento County for $268,000. The additions to OREO were partially offset by the disposition of three OREO properties.

Gross loan and lease charge-offs for the second quarter of 2009 were $2,849,000 and recoveries totaled $81,000 resulting in net charge-offs of $2,768,000 compared to gross loan and lease charge-offs for the second quarter of 2008 of $4,591,000 and recoveries of $46,000 resulting in net charge-offs of $4,545,000. Gross charge-offs for the six months ended June 30, 2009 were $5,484,000 and recoveries totaled $276,000 resulting in net charge-offs of $5,208,000, compared to gross charge-offs for the six months ended June 30, 2008 of $4,776,000 and recoveries of $98,000 resulting in net charge-offs of $4,678,000.

The increase in nonperforming loans to $44,304,000 at June 30, 2009 was due in large part by the addition of nineteen loans in the amount of $29,781,000 as nonaccrual loans. These additions to nonaccruals are centered in two customer relationships totaling $24,018,000. The largest relationship in this group consists of five loans secured by real estate located in Sonoma County totaling $16,291,000, and an unsecured line of credit totaling $3,000,000. A specific reserve of $1,426,000 has been established for the five real estate secured loans, and a $3,000,000 specific reserve has been established for the line of credit. The five real estate secured loans consist of three residential land loans totaling $10,377,000, a residential subdivision project totaling $3,600,000, and a commercial real estate mixed use loan for $2,314,000. All five of these loans were performing through the first quarter of 2009. During the second quarter of 2009, the borrower announced a desire to engage in a work-out of the borrower's secured and unsecured debt outstanding with the Company and with other commercial lenders. The Company is working with this borrower to resolve these issues with the goal of possibly achieving a resolution acceptable to all parties during the third quarter of 2009. The second customer relationship consists of two loans totaling $4,727,000 located in Sonoma County. The first loan is a residential land loan for $2,802,000. A specific reserve of $226,000 has been established for this loan. The second loan is a residential development project loan for $1,925,000. The Company charged-off $967,000 of this loan during the second quarter of 2009 in order to write the loan down to its net realizable value.

Operating Results

Net interest income, which represents the Company's largest component of revenues and is the difference between interest earned on loans and investments and interest paid on deposits and borrowings, decreased $1,160,000, or 12.8%, for the three months ended June 30, 2009 compared to the same period in 2008. Interest income decreased by $2,122,000, primarily due to both the lower yield on earning assets and the decrease in the average balances of earning assets and secondarily due to foregone interest income of $595,000 related to loans currently on nonaccrual status. Partially offsetting this was a decrease in interest expense of $962,000, or 22.4%, due to a decrease in the rates paid on deposits and a decrease in the average balance of borrowings for the quarter ended June 30, 2009 compared to the same period in 2008. Average loans decreased $89,346,000 in the second quarter of 2009 compared to the second quarter of 2008, and the yield on the loan portfolio decreased 46 basis points to 6.11% for the second quarter of 2009. Overall, average earning assets decreased $37,090,000 in the second quarter of 2009 compared to the second quarter of 2008. Average yields on earning assets decreased 78 basis points from the quarter ended June 30, 2008, to 5.58% for the quarter ended June 30, 2009 while the average rate paid on interest-bearing liabilities decreased by 54 basis points to 1.98%. The decrease in both yields earned and rates paid is reflective of the declining interest rate environment as the Federal Reserve has reduced interest rates by 500 basis points since September 2007. As a result of the above, the Company's net interest margin for the quarter ended June 30, 2009 was 3.94%, a decrease of 40 basis points from the margin of 4.34% for the second quarter in 2008 and a decrease of 29 basis points from the 4.23% net interest margin for the quarter ended March 31, 2009. "The $595,000 of foregone interest from the nonperforming loans placed pressure on our net interest margin reducing it by roughly 29 basis points, although we did recognize a decrease of 12 basis points on the average rate paid on interest-bearing liabilities from the first quarter," commented Mr. Watson. Net interest income decreased $2,180,000 for the six months ended June 30, 2009 compared to the same period in 2008. Interest income decreased by $4,853,000, primarily due to a decrease in income on loans of $4,657,000 as a result of both the lower yield on average loans and the decrease in the average balance of loans and due to foregone interest income of $969,000 related to loans currently on nonaccrual status. Interest expense decreased $2,673,000 due to a decrease in average interest bearing liabilities of $27,788,000 for the six months ended June 30, 2009 compared to the same period in 2008 and a decrease of 68 basis points on rates paid on interest-bearing liabilities comparing the same periods. The net interest margin for the six months ended June 30, 2009 decreased 25 basis points to 4.09% from the net interest margin of 4.34% for the six months ended June 30, 2008.

Noninterest income for the quarter ended June 30, 2009 was $3,438,000 compared to $3,477,000 for the same period in 2008 representing a decrease of $39,000. Service charges on deposits decreased $254,000 to $1,640,000 for the second quarter of 2009 compared to $1,894,000 for the second quarter of 2008, while other fees and charges increased by $100,000 to $1,079,000 for the second quarter of 2009 compared to $979,000 for the same period in 2008. Noninterest income for the six months ended June 30, 2009 decreased $366,000 to $6,602,000 from $6,968,000 for the same period in 2008. Service charges on deposits decreased $442,000 to $3,168,000 for the six months ended June 30, 2009 compared to $3,610,000 for the same period in 2008, while other fees and charges increased by $99,000 to $2,043,000 for the six months ended June 30, 2009 compared to $1,944,000 for the same period in 2008.

Noninterest expense increased $1,205,000 to $10,782,000 for the second quarter of 2009 from $9,577,000 for the second quarter of 2008. Comparing the second quarter of 2009 to the second quarter of 2008, salaries and employee benefits decreased $200,000 while occupancy and equipment expense increased $52,000. Other real estate owned expense was $572,000 compared to zero for the same period in 2008. Other expenses increased $781,000 due to FDIC insurance premiums and the FDIC special assessment of $862,000, as well as additional costs associated with loan collection expense. Noninterest expense for the six months ended June 30, 2009 was $21,117,000 compared to $19,382,000 for the same period in 2008. For the six months ended June 30, 2009, salaries and employee benefits decreased $672,000 while occupancy and equipment expense increased $63,000. FDIC insurance premiums, including the special assessment, were $1,248,000 for the first six months of 2009 compared to $112,000 for the first six months of 2008.

The Company recorded a benefit for income taxes for the quarter ended June 30, 2009 of $4,346,000, resulting in an effective tax benefit rate of 51.5%, compared to $722,000, or an effective tax benefit rate of 32.4%, for the quarter ended June 30, 2008. The benefit for income taxes for the six month period ended June 30, 2009 was $7,302,000, resulting in an effective tax benefit rate of 50.4%, compared to $588,000, or an effective tax benefit rate of 32.4%, for the same period in 2008.

North Valley Bancorp is a bank holding company headquartered in Redding, California. Its subsidiary, North Valley Bank ("NVB"), operates twenty-six commercial banking offices in Shasta, Humboldt, Del Norte, Mendocino, Yolo, Solano, Sonoma, Placer and Trinity Counties in Northern California, including two in-store supermarket branches and seven Business Banking Centers, and a loan production office in Vacaville, CA. North Valley Bancorp, through NVB, offers a wide range of consumer and business banking deposit products and services including internet banking and cash management services. In addition to these depository services, NVB engages in a full complement of lending activities including consumer, commercial and real estate loans. Additionally, NVB has SBA Preferred Lender status and provides investment services to its customers. Visit the Company's website address at www.novb.com for more information.

Cautionary Statement: This release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those stated herein. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from those projected. Risks and uncertainties which could impact future financial performance include, among others, (a) competitive pressures in the banking industry; (b) changes in the interest rate environment; (c) general economic conditions, either nationally, regionally or locally, including fluctuations in real estate values; (d) changes in the regulatory environment; (e) changes in business conditions or the securities markets and inflation; (f) possible shortages of gas and electricity at utility companies operating in the State of California, and (g) the effects of terrorism, including the events of September 11, 2001, and thereafter, and the conduct of the war on terrorism by the United States and its allies. Therefore, the information set forth herein, together with other information contained in the periodic reports filed by the Company with the Securities and Exchange Commission, should be carefully considered when evaluating the business prospects of the Company. North Valley Bancorp undertakes no obligation to update any forward-looking statements contained in this release, except as required by law.

                              NORTH VALLEY BANCORP
                      CONDENSED CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
             (Dollars in thousands, except share and per share data)

                            Three Months Ended
                                 June 30,
                            2009          2008        $ Change   % Change
                        -----------    -----------    --------   --------
Statement of Income Data
------------------------
Interest income
 Loans and leases
  (including fees)      $    10,029    $    12,246    $ (2,217)     (18.1%)
 Investment securities        1,198          1,116          82        7.3%
 Federal funds sold
  and other                      14              1          13     1300.0%
                        -----------    -----------    --------   --------
     Total interest
      income                 11,241         13,363      (2,122)     (15.9%)
                        -----------    -----------    --------   --------
Interest expense
 Interest on deposits         2,806          3,391        (585)     (17.3%)
 Subordinated debentures        526            578         (52)      (9.0%)
 Other borrowings                --            325        (325)    (100.0%)
                        -----------    -----------    --------   --------
     Total interest
      expense                 3,332          4,294        (962)     (22.4%)
                        -----------    -----------    --------   --------
Net interest income           7,909          9,069      (1,160)     (12.8%)
Provision for loan and
 lease losses                 9,000          5,200       3,800       73.1%
                        -----------    -----------    --------   --------
Net interest income after
 provision for loan and
 lease losses                (1,091)         3,869      (4,960)    (128.2%)
                        -----------    -----------    --------   --------

Noninterest income
 Service charges on
  deposit accounts            1,640          1,894        (254)     (13.4%)
 Other fees and charges       1,079            979         100       10.2%
 Other                          719            604         115       19.0%
                        -----------    -----------    --------   --------
     Total noninterest
      income                  3,438          3,477         (39)      (1.1%)
                        -----------    -----------    --------   --------

Noninterest expenses
 Salaries and employee
  benefits                    4,905          5,105        (200)      (3.9%)
 Occupancy                      801            720          81       11.3%
 Furniture and equipment        459            488         (29)      (5.9%)
 Other real estate
  owned expense                 572             --         572         --
 Other                        4,045          3,264         781       23.9%
                        -----------    -----------    --------   --------
     Total noninterest
      expenses               10,782          9,577       1,205       12.6%
                        -----------    -----------    --------   --------
     Loss before benefit
      for income taxes       (8,435)        (2,231)     (6,204)     278.1%
Benefit for income taxes     (4,346)          (722)     (3,624)     501.9%
                        -----------    -----------    --------   --------

     Net loss           $    (4,089)   $    (1,509)   $ (2,580)     171.0%
                        ===========    ===========    ========   ========

Common Share Data
-----------------
 Loss per share
   Basic                $     (0.55)   $     (0.20)   $  (0.35)     175.0%
   Diluted              $     (0.55)   $     (0.20)   $  (0.35)     175.0%

 Weighted average
  shares outstanding      7,495,817      7,438,706
 Weighted average
  shares outstanding -
  diluted                 7,495,817      7,438,706
 Book value per share   $      9.35    $     10.53
 Tangible book value    $      7.22    $      8.38
 Shares outstanding       7,495,817      7,484,066





                              NORTH VALLEY BANCORP
                      CONDENSED CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
             (Dollars in thousands, except share and per share data)

                             Six Months Ended
                                 June 30,
                           2009            2008       $ Change   % Change
                        -----------    -----------    --------   --------
Statement of Income Data
------------------------
Interest income
 Loans and leases
  (including fees)      $    20,565    $    25,222    $ (4,657)     (18.5%)
 Investment securities        2,072          2,285        (213)      (9.3%)
 Federal funds sold
  and other                      23              6          17      283.3%
                        -----------    -----------    --------   --------
     Total interest
      income                 22,660         27,513      (4,853)     (17.6%)
                        -----------    -----------    --------   --------
Interest expense
 Interest on deposits         5,574          7,219      (1,645)     (22.8%)
 Subordinated debentures      1,068          1,173        (105)      (9.0%)
 Other borrowings                 1            924        (923)     (99.9%)
                        -----------    -----------    --------   --------
     Total interest
      expense                 6,643          9,316      (2,673)     (28.7%)
                        -----------    -----------    --------   --------

Net interest income          16,017         18,197      (2,180)     (12.0%)
Provision for loan and
 lease losses                16,000          7,600       8,400      110.5%
                        -----------    -----------    --------   --------

Net interest income after
 provision for loan and
 lease losses                    17         10,597     (10,580)     (99.8%)
                        -----------    -----------    --------   --------

Noninterest income
 Service charges on
  deposit accounts            3,168          3,610        (442)     (12.2%)
 Other fees and charges       2,043          1,944          99        5.1%
 Other                        1,391          1,414         (23)      (1.6%)
                        -----------    -----------    --------   --------
     Total noninterest
      income                  6,602          6,968        (366)      (5.3%)
                        -----------    -----------    --------   --------

Noninterest expenses
 Salaries and employee
  benefits                    9,969         10,641        (672)      (6.3%)
 Occupancy                    1,562          1,474          88        6.0%
 Furniture and equipment        928            953         (25)      (2.6%)
 Other real estate
  owned expense               1,570             --       1,570         --
 Other                        7,088          6,314         774       12.3%
                        -----------    -----------    --------   --------
     Total noninterest
      expenses               21,117         19,382       1,735        9.0%
                        -----------    -----------    --------   --------

     Loss before benefit
      for income taxes      (14,498)        (1,817)    (12,681)     697.9%
Benefit for income taxes     (7,302)          (588)     (6,714)    1141.8%
                        -----------    -----------    --------   --------

     Net loss           $    (7,196)   $    (1,229)   $ (5,967)     485.5%
                        ===========    ===========    ========   ========

Common Share Data
-----------------
 Loss per share
   Basic                $     (0.96)   $     (0.17)   $  (0.79)     464.7%
   Diluted              $     (0.96)   $     (0.17)   $  (0.79)     464.7%

 Weighted average
  shares outstanding      7,495,817      7,427,781
 Weighted average
  shares outstanding -
  diluted                 7,495,817      7,427,781
 Book value per share   $      9.35    $     10.53
 Tangible book value    $      7.22    $      8.38
 Shares outstanding       7,495,817      7,484,066




                              NORTH VALLEY BANCORP
                      CONDENSED CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
                             (Dollars in thousands)

                                June 30,     December 31,     June 30,
                                  2009           2008           2008
                               ----------     ----------     ----------
Balance Sheet Data
------------------
Assets
  Cash and due from banks      $   22,184     $   27,153     $   34,545
  Federal funds sold               29,395             --             --
  Time deposits at other
   financial institutions             425             --             --
  Available-for-sale
   securities - at fair
   value                          137,554         76,345         90,678
  Held-to-maturity
   securities - at
   amortized cost                      15             21             31

  Loans and leases net of
   deferred loan fees             650,652        693,422        730,283
    Allowance for loan
     and lease losses             (22,119)       (11,327)       (13,677)
                               ----------     ----------     ----------
    Net loans and leases          628,533        682,095        716,606

  Premises and equipment,
   net                             11,097         11,418         11,764
  Other real estate owned           6,129         10,408          8,208
  Goodwill and core deposit
   intangibles, net                15,952         16,025         16,098
  Accrued interest
   receivable and other
   assets                          62,082         56,086         56,431
                               ----------     ----------     ----------
Total assets                   $  913,366     $  879,551     $  934,361
                               ==========     ==========     ==========

Liabilities and
 Shareholders' Equity
  Deposits:
    Demand, noninterest
     bearing                   $  144,190     $  161,748     $  164,030
    Demand, interest
     bearing                      148,142        151,873        148,421
    Savings and money market      175,121        157,089        178,000
    Time                          332,290        284,234        253,780
                               ----------     ----------     ----------
        Total deposits            799,743        754,944        744,231
  Other borrowed funds                 --          3,516         68,115
  Accrued interest payable
   and other liabilities           11,584         11,872         11,252
  Subordinated debentures          31,961         31,961         31,961
                               ----------     ----------     ----------
Total liabilities                 843,288        802,293        855,559
  Shareholders' equity             70,078         77,258         78,802
                               ----------     ----------     ----------
Total liabilities and
 shareholders' equity          $  913,366     $  879,551     $  934,361
                               ==========     ==========     ==========

Asset Quality
-------------
  Nonaccrual loans and
   leases                      $   44,304     $   18,936     $   22,580
  Loans and leases past due
   90 days and accruing
   interest                            --             --             --
  Other real estate owned           6,129         10,408          8,208
                               ----------     ----------     ----------
    Total nonperforming
     assets                    $   50,433     $   29,344     $   30,788
                               ==========     ==========     ==========

  Allowance for loan and
   lease losses to total
   loans                             3.40%          1.63%          1.87%
  Allowance for loan and
   lease losses to NPL's            49.93%         59.82%         60.57%
  Allowance for loan and
   lease losses to NPA's            43.86%         38.60%         44.42%




                              NORTH VALLEY BANCORP
                      CONDENSED CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
                             (Dollars in thousands)

                           Three Months Ended          Six Months Ended
                               June 30,                   June 30,
                         2009          2008          2009          2008
                      ---------     ---------     ---------     ---------
Selected Financial Ratios
-------------------------
 Return on average total
  assets                  (1.81%)       (0.65%)       (1.63%)       (0.26%)
 Return on average
  shareholders' equity   (21.74%)       (7.35%)      (18.98%)       (2.98%)
 Net interest margin
  (tax equivalent basis)   3.94%         4.34%         4.09%         4.34%
 Efficiency ratio         95.02%        76.34%        93.36%        77.02%

Selected Average Balances
-------------------------
 Loans                $ 658,068     $ 747,414     $ 669,390     $ 745,209
 Taxable investments    107,969        83,128        88,839        86,601
 Tax-exempt investments  15,850        20,189        15,874        20,364
 Federal funds sold and
  other                  31,984           230        23,544           411
                      ---------     ---------     ---------     ---------
   Total earning
    assets            $ 813,871     $ 850,961     $ 797,647     $ 852,585
                      ---------     ---------     ---------     ---------
   Total assets       $ 906,033     $ 935,566     $ 892,281     $ 938,442
                      ---------     ---------     ---------     ---------

 Demand deposits -
  interest bearing    $ 151,422     $ 157,526     $ 152,403     $ 156,238
 Savings and money
  market                172,001       184,164       169,913       182,916
 Time deposits          320,512       247,988       303,183       248,095
 Other borrowings        31,961        92,435        32,641        98,679
                      ---------     ---------     ---------     ---------
   Total interest
    bearing
    liabilities       $ 675,896     $ 682,113     $ 658,140     $ 685,928
                      ---------     ---------     ---------     ---------
 Demand deposits -
  noninterest bearing $ 144,334     $ 159,403     $ 147,158     $ 157,474
                      ---------     ---------     ---------     ---------
 Shareholders' equity $  75,433     $  82,361     $  76,462     $  82,748
                      ---------     ---------     ---------     ---------




                              NORTH VALLEY BANCORP
                      CONDENSED CONSOLIDATED FINANCIAL DATA
                                   (Unaudited)
                  (Dollars in thousands, except per share data)

                                     For the Quarter Ended
                      ---------------------------------------------------
                        June          March       December     September
                        2009          2009          2008          2008
                      ---------     ---------     ---------     ---------
Interest income       $  11,241     $  11,419     $  11,834     $  12,744
Interest expense          3,332         3,311         3,706         3,932
                      ---------     ---------     ---------     ---------
  Net interest income     7,909         8,108         8,128         8,812

Provision for loan and
  lease losses            9,000         7,000         3,000         1,500
Noninterest income        3,438         2,274         2,900           284
Noninterest expense      10,782         9,445         9,583         9,694
                      ---------     ---------     ---------     ---------

Loss before benefit for
  income taxes           (8,435)       (6,063)       (1,555)       (2,098)
Benefit for income
 taxes                   (4,346)       (2,956)       (2,409)         (679)
                      ---------     ---------     ---------     ---------
  Net (loss) income   $  (4,089)    $  (3,107)    $     854     $  (1,419)
                      =========     =========     =========     =========

(Loss) Earnings per
  share:
  Basic               $   (0.55)    $   (0.41)    $    0.11     $   (0.19)
                      =========     =========     =========     =========
  Diluted             $   (0.55)    $   (0.41)    $    0.11     $   (0.19)
                      =========     =========     =========     =========

Contact Information

  • For further information contact:
    Michael J. Cushman
    President & Chief Executive Officer
    (530) 226-2900
    Fax: (530) 221-4877
    Or
    Kevin R. Watson
    Executive Vice President & Chief Financial Officer
    (530) 226-2900
    Fax: (530) 221-4877