SCVBank Reports Second Quarter 2013 Results

SCVBank Reports Second Quarter 2013 Results

  • Continued Improvement in Loan Quality

  • Improving Capital Ratios

  • Highly Liquid

SANTA PAULA, Calif.--(BUSINESS WIRE)-- Santa Clara Valley Bank (SCVBank) (OTCBB: SCVE) Chairman of the Board, Scott K. Rushing, today announced the Bank's 2013 second quarter results.

Board Chairman Scott Rushing reported that portfolio quality continues to demonstrate solid performance with a low level of past due loans to total loans of just 1.18% at the end of the second quarter of 2013, an all time low since pre-recession. President Cheryl Knight commented that "a good quality loan portfolio will enable the bank to focus more resources on the origination of good quality loans in our local community, leading to growth and enhanced earnings."


SCVBank recorded a net loss from operations of $1,000 for the second quarter of 2013 compared to a net profit of $196,000 for the second quarter of 2012. The increase in expenses in 2013 is primarily due to the hiring of additional loan officers and loan support staff. Chairman Rushing stated that "the results are consistent with the bank's strategic plan to hire additional lending staff to support future growth of the bank.Results are already apparent with second quarter new loan production representing the highest level in the most recent six quarters." Ms. Knight added that "the bank is always seeking good quality loans and, while historically low interest rates remain a challenge, as new quality loans are funded, the financial performance of SCVBank should strengthen."

SCVBank continues to maintain a strong capital position with a Tier 1 Leverage Capital Ratio of 11.06%, up from 10.68% at December 31, 2012.

Liquidity continues to be very strong as cash and investments total 50% of total assets at quarter end.

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Under its stock symbol of SCVE.OB, SCVBank's stock is traded through McAdams Wright Ragen, Raymond James & Associates Inc., and Monroe Securities. The Bank's web site is www.SCVBank.com.

Santa Clara Valley Bank Corporation Headquarters
901 East Main Street
Santa Paula, California 93060
805 525-1999

Statements concerning future performance, developments or events concerning expectations for growth and market forecasts, and any other guidance on future periods, constitute forward looking statements 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, the effect of interest rate changes, and the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government, and general economic conditions.

Santa Clara Valley Bank, N. A.

Balance Sheets

Unaudited

Audited

June 30, 2013

December 31, 2012

Assets:

Cash and due from banks

$

14,621,000

$

16,186,000

Investments

52,033,000

49,408,000

Loans

64,746,000

68,998,000

Allowance for loan losses

(1,244,000

)

(1,407,000

)

Other assets

3,602,000

3,801,000

Total Assets

$

133,758,000

$

136,986,000

Liabilities and Stockholders' Equity:

Deposits

$

113,293,000

$

114,972,000

Borrowed Funds

5,600,000

6,550,000

Other liabilities

472,000

434,000

Stockholders' equity

14,393,000

15,030,000

Total Liabilities and Stockholders' Equity

$

133,758,000

$

136,986,000

Book value per common share

$

6.97

$

7.40

Common shares outstanding (end of period)

1,472,167

1,472,167

Tier 1 leverage ratio

11.06

%

10.68

%

Total risk-based capital ratio

22.09

%

21.25

%

For the Three Months Ended

Statements of Income (unaudited)

June 30, 2013

June 30, 2012

Interest income

$

1,219,000

$

1,473,000

Interest expense

98,000

136,000

Net interest income

1,121,000

1,337,000

Provision for loan losses

-

-

Noninterest income

268,000

211,000

Noninterest expense

1,390,000

1,352,000

Income (loss) before taxes

(1,000

)

196,000

Income tax provision

-

-

Net Income (Loss)

$

(1,000

)

$

196,000

Preferred stock dividends or accretion

9,000

9,000

Net income (loss) applicable to common shares

$

(10,000

)

$

187,000

Income (Loss) per common share, basic

($0.01

)

$

0.13

Return on average assets

-0.01

%

0.60

%

Return on average equity

-0.03

%

5.31

%

Year to date through

Statements of Income (unaudited)

June 30, 2013

June 30, 2012

Interest income

$

2,456,000

$

2,880,000

Interest expense

214,000

279,000

Net interest income

2,242,000

2,601,000

Provision for loan losses

-

-

Noninterest income

474,000

419,000

Noninterest expense

2,807,000

2,643,000

Income (loss) before taxes

(91,000

)

377,000

Income tax provision

-

-

Net Income (Loss)

$

(91,000

)

$

377,000

Preferred stock dividends or accretion

9,000

9,000

Net income (loss) applicable to common shares

$

(100,000

)

$

368,000

Income (Loss) per common share, basic

$

14,721,670.00

$

2,897,098.70

Return on average assets

-0.14

%

0.58

%

Return on average equity

-1.24

%

5.11

%



Santa Clara Valley Bank
Cheryl Knight
President Chief Executive Officer
(805) 525-1999
or
Fred Antrim
Senior Vice President & Chief Financial Officer
(805) 525-1999

KEYWORDS: United States North America California

INDUSTRY KEYWORDS:

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