SOURCE: Valley Community Bank

February 03, 2011 16:52 ET

Valley Community Bank Reports Fourth Quarter 2010 Results

PLEASANTON, CA--(Marketwire - February 3, 2011) - Valley Community Bank (OTCBB: VCBC), reported results for the fourth quarter and fiscal year ended December 31, 2010. For the fiscal year 2010, net income after tax was almost unchanged at $527,000 compared to $526,000 in 2009. Net interest income before provision for loan loss increased 2% over 2009 to $9.46 million. This increase was attributable to lower deposit and borrowing costs which decreased 29% year over year. Revenues from non interest income for 2010 were lower by 37% compared to 2009, partially due to a required regulatory accounting change to delay revenue recognition from SBA loan sales, a historically strong earnings area for the Bank. This required accounting change resulted in $526,000 of SBA loan sales revenue being delayed into the first quarter of 2011.

"2010 was another tough year," said President and CEO Richard P. Loupe, "but we are beginning to see signs of economic stabilization and returning growth with and in our customer base and markets."

Valley Community Bank Stock Symbol is VCBC

                          VALLEY COMMUNITY BANK

                              BALANCE SHEETS


                                                     Unaudited   Unaudited
Dollar amounts in thousands, except per share data  12/31/2010  12/31/2009
                                                    ----------  ----------

ASSETS
   Cash & due from banks                            $   15,344  $   22,735
   Fed funds sold                                            0           0
                                                    ----------  ----------
       Total Cash and Cash equivalents                  15,344      22,735

   Time deposits with other financial institutions         581           0
   Securities available-for-sale                        16,496      11,394
   Securities held-to-maturity                             209         877
   Federal Home Loan Bank stock                            934         966

   Loans                                               167,747     179,926
   Less allowance for loan losses                       (3,606)     (4,141)
                                                    ----------  ----------
       Net Loans                                       164,141     175,785

   Bank premises and equipment, net                        558         393
   Cash surrender value of life insurance policies       2,739       2,638
   Accrued interest receivable and other assets          6,224       6,312
                                                    ==========  ==========
   TOTAL ASSETS                                     $  207,226  $  221,100
                                                    ==========  ==========


LIABILITIES AND SHAREHOLDERS' EQUITY
   Deposits
   Non-interest bearing                             $   36,702  $   36,539
   Interest bearing                                    139,233     151,856
                                                    ----------  ----------
       Total Deposits                                  175,935     188,395

   Short Term Borrowings                                 4,526       7,000
   Accrued interest payable and other liabilities        2,338       1,487
                                                    ==========  ==========
   TOTAL LIABILITIES                                $  182,799  $  196,882
                                                    ==========  ==========

   Shareholders' equity
   Preferred Stock                                  $    5,610  $    5,555
   Common Stock                                         16,602      16,602
   Additional paid in Capital                              450         450
   Accumulated other comprehensive loss, net of tax          7          26
   Retained Earnings                                     1,758       1,586
                                                    ----------  ----------
       Total shareholders' equity                       24,427      24,219
                                                    ==========  ==========
   TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY       $  207,226  $  221,101
                                                    ==========  ==========

   Common Shares outstanding for each period:        1,878,886   1,878,886
   Book value per Common share                      $    10.01  $     9.93




                          VALLEY COMMUNITY BANK

                            INCOME STATEMENTS

Dollar amounts in    Unaudited Unaudited         Unaudited Audited
 thousands, except      3 Mos.  3 Mos.            12 Mos.  12 Mos.
 per share data        Ending  Ending             Ending   Ending
                        12/31/  12/31/     %       12/31/  12/31/     %
                         2010    2009    Change     2010    2009    Change
                        ------  ------  --------  -------  -------  ------
Interest Income:
 Interest and fees on
  loans                 $2,651  $2,896        -8% $11,025  $11,660      -5%
 Interest on federal
  funds sold                 0      14      -100%       0       26    -100%
 Interest on investment
  securities                65      58        12%     286      234      22%
Interest on deposit
 in banks                   10       0      1000%      55       42      31%
                        ------  ------  --------  -------  -------  ------
  Total Interest Income  2,726   2,968        -8%  11,366   11,962      -5%

Interest Expense:
 Interest on deposits      404     507       -20%   1,821    2,288     -20%
 Interest on short-term
  borrowings                17      43       -60%      82      382     -79%
                        ------  ------  --------  -------  -------  ------
  Total Interest Expense   421     550       -23%   1,903    2,670     -29%

  Net Interest Income
   Before Provision for
   Loan Loss             2,350   2,418        -5%   9,463    9,292       2%

 Provision for Loan Loss 1,375   2,700       -49%   3,000    3,700     -19%
                        ------  ------  --------  -------  -------  ------
  Net Interest Income
   After Provision for
   Loan Losses             930    (282)     -430%   6,463    5,592      16%

Non-interest income:
 Service Charges            31      81       -62%     313      328      -5%
 Gain on sale of
  government guaranteed
  loans                      0     725      -100%     597    1,583     -62%
 Loan servicing income     150     114        32%     576      366      57%
 Other income               59     281       -79%     250      463     -46%
                        ------  ------  --------  -------  -------  ------
  Total non-interest
   income                  240   1,201       -80%   1,736    2,740     -37%

Other expenses
 Salaries and employee
  benefits               1,034   1,014         2%   4,263    4,402      -3%
 Occupancy and equipment   232     230         1%     941      907       4%
 Other                     472     540       -13%   2,148    1,994       8%
                        ------  ------  --------  -------  -------  ------
  Total other expenses   1,738   1,784        -3%   7,352    7,303       1%

  Income before
   provision for income
   taxes                  (568)   (865)      -34%     847    1,029     -18%

Provision for income
 taxes                    (247)   (329)      -25%     320      503     -36%
                        ------  ------  --------  -------  -------  ------
  Net income              (321)   (536)      -40%     527      526       0%

Dividends and discount
 accretion on preferred
 stock                     (89)    (95)        -     (355)    (353)      -
                        ------  ------  --------  -------  -------  ------

Net Income available to
 Common shareholders    $ (410) $ (631)      -35% $   172  $   173      -1%
                        ======  ======  ========  =======  =======  ======

 Earnings Per Basic
  Share                 $(0.22) $(0.38)           $  0.09  $  0.09
 Earnings Per Diluted
  Share                 $(0.22) $(0.38)           $  0.09  $  0.09
                        ======  ======            =======  =======

Market Makers

Wedbush Morgan Securities
Lafayette, CA 94549
Contact:
Lisa Gallo
(866) 491-7828

Keefe, Bruyette & Woods, Inc.
101 California Street, Suite 3700
San Francisco, CA 94111
Contact:
Dave Bonaccorso
(415) 591-5063

Siedler Companies, Inc.
515 South Figueroa Street
Suite 1100
Los Angeles, CA 90071
Contact:
Troy Norlander
(800) 288-2811

Howe Barnes Hoefer & Arnett
555 Market Street
18th Floor
San Francisco, CA 94105
Contact:
John Cavender
(415) 362-7111

Contact Information

  • CONTACT:
    Richard Loupe
    CEO & President
    925-621-7200