YUBA CITY, Calif.--(BUSINESS WIRE)--River Valley Community Bank (OTC Markets: RVVY) headquartered in Yuba City, California reported earnings (Unaudited) of $222,063 or $.13 basic earnings per share for the period ending March 31, 2014. This compares to $333,569 or $.19 per share earned in the first quarter of 2013. The Bank, which opened in June of 2006 has now posted 27 consecutive profitable quarters.
Total Assets and Deposits were $174,901,702 and $154,515,915 up 10% and 12% respectively from March 31, 2013; Non-Interest Bearing Deposits were up 48%. Gross Loans grew 15% to $61,800,879 while credit quality remained strong based on all measurements. Equity increased 3% from the prior year period to $20,135,453, driven primarily by retained earnings, which were partially offset by a decrease in the unrealized gains on investment securities. Book Value per share increased to $11.60 per share from $11.43 at the end of the prior year period.
Net Interest Income for the first quarter of $1,130,478 increased 4% from $1,091,280 in March 31, 2013. This increase was driven primarily by the increase in Gross Loans and was partially offset by a decline in the Net Interest Margin (NIM) which dropped to 2.80% from 3.13% a year ago. Return on Average Equity and Return on Average Assets were 4.49% and 0.51% respectively compared to 6.89% and 0.87% in last year’s first quarter.
John M. Jelavich, President and CEO commented, “We are pleased with the progress our bank is making on many fronts. We continue to execute our expansion plan into the Grass Valley market and while our investment in this new market has, and will continue to result in reduced earnings in the near term, we believe this operation will be accretive over the longer term as we build our business there. Grass Valley reflects a sizable banking market and we are the only community bank operating there. The relationship banking experience we deliver has been well received and we are very encouraged about serving this market and growing our presence there.”
Jelavich continued, “We are also very proud of the Bank’s overall deposit and loan growth. Our deposits are of exceptional quality and growing due to the great service offered by our team and further assisted by our 5-Star Superior ratings for safety and soundness. On the loan side, our team continues to deliver strong loan growth which more than offset the impact of declining margins which enabled growth in our net interest income. Margin compression has been a challenge for our bank and the industry and will likely persist until this economic recovery becomes more substantial. Our credit performance continues to be exceptional and while competition remains fierce for quality loans, we have shown our ability to compete.”
Concurrent with the announcement of first quarter earnings, River Valley Community Bank also announced that its Board of Directors has approved a special cash dividend of $0.35 per common share to shareholders of record as of April 30, 2014, and payable either directly or through their broker on or about May 20, 2014.
“We are very pleased to be in the position to return capital to our shareholders with the special cash dividend announced today. Our continued profitability has positioned us with substantial capital and this dividend, in addition to the one we paid in 2012 represents over $1.1 million we will have returned to our shareholders,” Jelavich concluded.
River Valley Community Bank serves its customer base through its offices located at:
- 1629 Colusa Avenue, Yuba City, CA
- 426 Sutton Way, Grass Valley, CA
The Bank offers a full suite of competitive products, services and banking technology. For more information please visit our website at: www.myrvcb.com or contact John M. Jelavich at 530-821-2469.
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.
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