River Valley Community Bank Posts Strong 3rd Quarter Gains (Unaudited)

River Valley Community Bank Posts Strong 3rd Quarter Gains (Unaudited)

YUBA CITY, Calif.--(BUSINESS WIRE)-- River Valley Community Bank (OTC Markets: RVVY) headquartered in Yuba City, California, posted a net income of $358,079 or $.21 basic earnings per share for the quarter ending September 30, 2012. This represents a 5% increase over the $340,693 and $.20 earned in the third quarter of 2011. This was the 21st consecutive quarterly profit for the Bank which opened in June of 2006.

Total Assets and Deposits were at $144,242,567 and $123,192,910 respectively at quarter end compared to $131,972,267 and $112,718,748 at September 30, 2011 both representing 9% increases. Gross Loans grew to $56,269,092, a 33% increase over the $42,394,189 posted a year ago. Loan quality remains healthy with no loans on nonaccrual status. The Allowance for Loan and Leases Losses stands at $1,564,070 or 2.78% of Gross Loans.

Shareholder Equity of $19,683,970 was 9% higher than the $18,034,820 posted a year ago. Again, this was primarily driven by retained earnings. Book value per share was at $11.46 compared to $10.50 per share a year ago. Return on average shareholder equity and return on average assets were at 7.31% and 1.00% respectively at quarter's end. The Bank's Efficiency Ratio improved to 58.78% compared to the prior three reporting periods.

John I. Jelavich, President and Chief Executive Officer commented, "Our overall quarterly results were very solid, highlighted by the continued impressive loan growth. Our focus of transitioning from investments into loans is contributing to the improved results. Although loan demand remains weak our persistent calling efforts, promptly following up on referrals, our ability to be responsive, and the leveraging of our financial strength has made a huge difference in our ability to prosper."

"As noted in previous reports, margin compression continues to persist and will likely continue for some time into the future. We have, however, noted a slight improvement in our Net Interest Margin this quarter as our loan portfolio has grown. The competitive pricing pressure in the industry and lower investment yields has contributed to the margin squeeze in recent quarters. It is pleasing to note that Non Interest Income improved significantly during the quarter. Also, operating expenses to average assets remain low by industry standards and will enable the Bank to remain competitive into the future," Jelavich concluded.

River Valley Community Bank is located at 1629 Colusa Avenue, Yuba City, California. For more information please contact John Jelavich at 530-821-2460 or visit our website at: www.rivervalleycommunitybank.com.

Forward Looking Statements: This document may contain comments and information that constitute forward-looking statements. Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Forward-looking statements speak only as to the date they are made. The Bank does not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made.

River Valley Community Bank
John Jelavich, 530-821-2460

KEYWORDS: United States North America California


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