River Valley Community Bank Reports Strong Earnings, Growth Strategies

River Valley Community Bank Reports Strong Earnings, Growth Strategies

YUBA CITY, Calif.--(BUSINESS WIRE)-- River Valley Community Bank (OTC Markets: RVVY) headquartered in Yuba City, California reported earnings (Unaudited) of $333,569 or $.19 basic earnings per share for the period ending March 31, 2013. This compares to $335,728 or $.20 per share earned in the first quarter of 2012. The Bank, which opened in June of 2006 has now posted 23 consecutive profitable quarters.

Total Assets and Deposits were $158,500,064 and $137,876,185 up 10% and 11% respectively from March 31, 2012; Non-Interest Bearing Deposits were up 27%. Gross Loans grew 8% to $53,964,582 while credit quality remained strong based on all measurements. Equity increased 6% from the prior year period to $19,631,798, again driven by retained earnings. Book Value per share increased to $11.43 per share from $10.76 at the end of the prior year period.

Net Interest Income declined 6% to $1,091,280 from March 31, 2012 as a result of the compression of Net Interest Margin (NIM) to 3.13% from 3.51% a year ago. Return on Average Equity and Return on Average Assets were 6.89% and 0.87% respectively compared to 7.30% and 0.95% in last year's first quarter.

John I. Jelavich, President and CEO commented, "While pleased with the overall results the continued margin compression clearly affected earnings results. During the quarter we experienced an unusually high level of earning asset pricing adjustments. While we believe these adjustments will moderate, we expect NIM to be a concern until the economy heals. We continue to adjust to the current interest rate environment every step of the way. Competition remains fierce for quality loans and we are actively competing for them. During the first quarter we were very successful in adding new, meaningful relationships to our growing list of satisfied clients," Jelavich added.

"Looking forward, the Bank is taking action to continue our longer term growth. Recently, after several months of analysis and careful consideration we published Public Notice of our intent to file application for a full service branch office in Grass Valley, CA. We have generated a strong base of support in the area and believe our established community banking model will be successful there; also, we have selected a proven senior level manager fully capable of leading that operation. At the same time, we have committed to strengthen our lending team by adding a senior lending professional to our Yuba City operations. Our Board of Directors and management team unanimously agree that now is the time to wisely invest in our 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
www.rivervalleycommunitybank.com

KEYWORDS: United States North America California

INDUSTRY KEYWORDS:

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