SOURCE: Valley Community Bank

July 29, 2011 08:00 ET

Valley Community Bank Reports Second Quarter 2011 Results

PLEASANTON, CA--(Marketwire - Jul 29, 2011) - Valley Community Bank (the "Company") (OTCBB: VCBC) today reported a 2011 second quarter net profit of $655,000, or $0.35 per diluted common share, compared to a net profit of $145,000, or $0.08 per diluted common share, for the same period a year ago. Net income available to common shareholders, after preferred dividends and accretions, was a net profit of $642,000, or $0.34 per diluted share, compared to a net profit of $56,000, or $0.03 per diluted share, for the same period a year ago. As of June 30, 2011, total assets were $195.7 million, down from $218.5 million at June 30, 2010. Total loans and leases have decreased $16.5 million to $151.0 million at June 30, 2011 compared to $167.5 million at June 30, 2010. Total deposits decreased to $163.2 million at June 30, 2011 compared to $193.9 million at June 30, 2010.

Richard P. Loupe, President and CEO, stated, "For the first six months of 2011, the Bank had good SBA loan production and associated sales of the guaranteed portion of those loans. The Bank had gross premium revenues from SBA loan sales of $1.7 million for the six months ended June 30, 2011. However from this increase loan sale income, the Bank did have to set aside some additional loan reserves to adequately cover other types of problem loans which are mostly in the land and construction area. Our diligent loan collection efforts are beginning to show results which should accelerate into the second half of 2011."

Total Risk-based Capital at June 30, 2011, was 15.64%, compared to 14.33% at June 30, 2010, placing it well above the regulatory threshold of 10.00% to be considered "well capitalized." At June 30, 2011 the Bank had over $33.9 million in cash and investments in AAA rated short term US GSE Agency bonds. This level represented a liquid asset position of over 17.3% of total assets.

Valley Community Bank Stock Symbol is VCBC

VALLEY COMMUNITY BANK
BALANCE SHEETS
Dollar amounts in thousands, except per share data Unaudited
6/30/2011
Unaudited
6/30/2010
ASSETS
Cash & due from banks $ 19,638 $ 22,812
Fed funds sold 0 0
Total Cash and Cash equivalents 19,638 22,812
Time deposits with other financial institutions 331 2,502
Securities available-for-sale 13,792 14,807
Securities held-to-maturity 148 507
Federal Home Loan Bank stock 930 934
Loans 156,166 172,435
Less allowance for loan losses (5,183 ) (4,903 )
Net Loans 150,983 167,532
Bank premises and equipment, net 459 641
Cash surrender value of life insurance policies 2,787 2,690
Accrued interest receivable and other assets 6,655 6,095
TOTAL ASSETS $ 195,723 $ 218,520
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing $ 41,282 $ 32,088
Interest bearing 121,876 152,529
Total Deposits 163,158 184,617
Short Term Borrowings 6,000 7,000
Accrued interest payable and other liabilities 2,343 2,308
TOTAL LIABILITIES $ 171,501 $ 193,925
Shareholders' equity
Preferred Stock series A $ 5,500 $ 5,500
Preferred Stock series B 137 82
Common Stock - no par value 16,602 16,602
Additional paid in Common Capital 450 450
Accumulated other comprehensive loss, net of tax 25 42
Retained Earnings 1,508 1,919
Total shareholders' equity 24,222 24,595
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 195,723 $ 218,520
Common Shares outstanding for each period: 1,878,886 1,878,886
Book value per Common share $ 9.89 $ 10.12
VALLEY COMMUNITY BANK
INCOME STATEMENTS
Dollar amounts in thousands, except per share data Unaudited
3 Mos.
Ending
6/30/2011
Unaudited
3 Mos.
Ending
6/30/2010


%
Change
Unaudited
6 Mos.
Ending
6/30/2011
Unaudited
6 Mos.
Ending
6/30/2010


%
Change
Interest Income:
Interest and fees on loans $ 2,250 $ 2,821 -20 % $ 4,795 $ 5,674 -15 %
Interest on federal funds sold - - 0 % - 8 -100 %
Interest on investment securities 53 77 -31 % 114 147 -22 %
Interest on deposit in banks 8 15 -47 % 11 27 -59 %
Total Interest Income 2,311 2,913 -21 % 4,920 5,856 -16 %
Interest Expense:
Interest on deposits 256 486 -47 % 551 986 -44 %
Interest on short-term borrowings 10 24 -58 % 29 46 -37 %
Total Interest Expense 266 510 -48 % 580 1,032 -44 %
Net Interest Income Before Provision for Loan Loss 2,045 2,403 -15 % 4,340 4,824 -10 %
Provision for Loan Loss 600 600 0 % 2,700 900 200 %
Net Interest Income After Provision for Loan Losses 1,445 1,803 -20 % 1,640 3,924 -58 %
Non-interest income:
Service Charges 64 86 -26 % 134 174 -23 %
Gain on sale of government guaranteed loans 937 120 681 % 1,721 120 1334 %
Loan servicing income 180 142 27 % 297 255 16 %
Other income 58 34 71 % 124 122 2 %
Total non-interest income 1,239 382 224 % 2,276 671 239 %
Other expenses
Salaries and employee benefits 945 1,156 -18 % 1,903 2,262 -16 %
Occupancy and equipment 239 164 46 % 464 384 21 %
Other 604 627 -4 % 1,224 1,099 11 %
Total other expenses 1,788 1,947 -8 % 3,591 3,745 -4 %
Income before provision for income taxes 896 238 276 % 325 850 -62 %
Provision for income taxes 241 93 159 % 125 340 -63 %
Net income (Loss) $ 655 $ 145 352 % $ 200 $ 510 -61 %
Dividends and discount accretion on preferred stock (13 ) (89 ) N/A (102 ) (177 ) N/A
Net Income available to Common shareholders $ 642 $ 56 1046 % $ 98 $ 333 -71 %
Earnings Per Basic Common Share $ 0.34 $ 0.03 $ 0.05 $ 0.18
Earnings Per Diluted Common Share $ 0.34 $ 0.03 $ 0.05 $ 0.18

Contact Information

  • Media Contact:
    Richard Loupe
    President & CEO
    (925) 621-7200