SOURCE: Pacific Valley Bank

May 06, 2008 11:40 ET

Pacific Valley Bank Reports Operational Profit for Month of April 2008

SALINAS, CA--(Marketwire - May 6, 2008) - Pacific Valley Bank (OTCBB: PVBK), the Salinas Valley's only locally-owned and managed community bank, today announced that it had a $30,300 operational profit (before provision for loan loss, share-based compensation and taxes) in April which exceeded projections.

The Bank closed the month of April 2008 with an asset base of $173.5 million, an increase of $12.7 million over December 31, 2007. Loans, net of deferred loan fees, were $144.6 million and total deposits were $137.6 million at April 30, 2008. Capital was strong at $17.2 million, which is significantly above what regulators consider "Well Capitalized" for a bank of our size.

The Bank realized an operational profit of $30,300 for the month of April. Taking the provision for loan loss and share-based compensation into account, the Bank showed a net loss of $129,800 for the month, one of the smallest month-to-month net losses posted in the Bank's history. Contributing to the net loss was a provision for loan loss of $139,000, which was a result of our strong loan growth, and share-based compensation of $21,100.

The Bank showed an operational loss of $161,600 for the first four months of 2008, and a net loss of $608,300. This included $361,000 as a provision for loan loss, $84,900 for share-based compensation, and $800 in taxes.

"I am pleased that despite the difficulties many are facing in the financial industry, we were able to bring our interest income, interest expense, and operational expenses into alignment to allow our projected operational profit for April," said President Ben Tinkey. "This validates our strategy and we are optimistic that we will continue to make progress in reaching net profitability in the third quarter as anticipated."

Pacific Valley Bank is a full-service, community-based bank. The Bank was organized by local business and community leaders. We opened our doors on September 14, 2004 and currently have two offices in Salinas and an office in King City, Hollister and Monterey.

Forward-looking Statements

The financial results reported in this press release are unaudited. Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute "forward-looking statements" (as such term is defined in the Private Securities Litigation Reform Act of 1995) 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, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes and financial policies of the United States government, and general economic conditions. Additional information on these and other factors that could affect financial results are included in filings made by the Bank with the Federal Deposit Insurance Corporation. The Bank disclaims any obligation to update any such factors or to publicly announce the results of any revisions to any forward-looking statements contained herein to reflect future events or developments.

Contact Information

  • CONTACTS:
    Ben Tinkey
    831-771-4306
    President & Chief Executive Officer

    Frank H. Lippman
    831-771-4317
    Executive Vice President & Chief Financial Officer