SCVBank Reports Second Quarter 2014 Results

  • Strong Credit Quality and Core Deposits
  • Strong Capital Ratios
  • Strong Liquidity

SANTA PAULA, Calif.--()--Santa Clara Valley Bank (SCVBank) (OTCBB: SCVE) Chairman of the Board, Leslie Cornejo, today announced the Bank’s 2014 second quarter results.

Board Chairman Leslie Cornejo reported that portfolio quality continues to demonstrate solid performance. Past due plus non-accrual loans achieved a record low of 0.80% of loans outstanding, with credit strength further demonstrated by just $14,693 in net losses, year-to-date 2014.

SCVBank continues to maintain a strong capital position with a Tier 1 Leverage Capital Ratio of 11.41%, up from 10.83% at December 31, 2013. Liquidity continues to be very strong as cash, interest bearing deposits at financial institutions and investments totaled 48% of total assets at quarter end.

SCVBank recorded a net loss of $2,000 for the second quarter of 2014 compared to a net loss of $1,000 for the second quarter of 2013. The year to date net loss through June 2014 was $129,000 compared to a net loss of $91,000 for the same six month period in 2013. The net losses are primarily attributable to declining loan balances.

President Cheryl Knight commented that, “Challenges remain due to weak loan demand and very low interest rates; however, loans in process have recently increased and core deposits continue to be very strong.” Chairman Cornejo added that, “The bank continues to seek good quality business and commercial real estate loans in Ventura County and North Los Angeles County. As good quality loans are funded, the financial performance of SCVBank will continue to strengthen.”

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Executive and Loan Offices are located at 866 East Main Street, Santa Paula, Ca. Under its stock symbol of SCVE, 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, 2014 December 31, 2013
Assets:
Cash and noninterest-bearing due from banks $ 3,891,000 $ 4,006,000

Federal funds sold and interest bearing deposits at financial institutions

10,492,000 5,900,000
Investments 46,848,000 50,001,000
Loans 61,910,000 66,233,000
Allowance for loan losses (1,159,000 ) (1,173,000 )
Other assets   6,368,000     6,400,000  
Total Assets $ 128,350,000   $ 131,367,000  
 
Liabilities and Stockholders' Equity:
Deposits $ 106,071,000 $ 111,639,000
Borrowed Funds 8,000,000 6,000,000
Other liabilities 317,000 344,000
Stockholders' equity   13,962,000     13,384,000  
Total Liabilities and Stockholders' Equity $ 128,350,000   $ 131,367,000  
 
Book value per common share $ 5.69 $ 5.39
Common shares outstanding (end of period) 1,926,167 1,926,167
Tier 1 leverage ratio 11.41 % 10.84 %
Total risk-based capital ratio 22.98 % 21.35 %
 
For the Three Months Ended

Statements of Income (unaudited)

June 30, 2014 June 30, 2013
Interest income $ 1,179,000 $ 1,219,000
Interest expense   52,000     98,000  
Net interest income 1,127,000 1,121,000
Provision for loan losses - -
Noninterest income 165,000 268,000
Noninterest expense   1,294,000     1,390,000  
Income (loss) before taxes (2,000 ) (1,000 )
Income tax provision   -     -  
Net Income (Loss) $ (2,000 ) $ (1,000 )
Preferred stock dividends or accretion   -     9,000  
Net income (loss) applicable to common shares $ (2,000 ) $ (10,000 )
Income (Loss) per common share, basic ($0.00 ) ($0.01 )
Return on average assets -0.01 % -0.01 %
Return on average equity -0.17 % -0.09 %
 
Year to date through

Statements of Income (unaudited)

June 30, 2014 June 30, 2013
Interest income $ 2,284,000 $ 2,504,000
Interest expense   109,000     213,000  
Net interest income 2,175,000 2,291,000
Provision for loan losses - -
Noninterest income 332,000 424,000
Noninterest expense   2,636,000     2,806,000  
Income (loss) before taxes (129,000 ) (91,000 )
Income tax provision   -     -  
Net Income (Loss) $ (129,000 ) $ (91,000 )
Preferred stock dividends or accretion   -     9,000  
Net income (loss) applicable to common shares $ (129,000 ) $ (100,000 )
Income (Loss) per common share, basic ($0.07 ) ($0.07 )
Return on average assets -0.23 % -0.16 %
Return on average equity -2.13 % -1.40 %
 

Contacts

Santa Clara Valley Bank
Cheryl Knight, 805-525-1999
President and Chief Executive Officer
or
Fred Antrim, 805-525-5871
Executive Vice President & Chief Financial Officer

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Contacts

Santa Clara Valley Bank
Cheryl Knight, 805-525-1999
President and Chief Executive Officer
or
Fred Antrim, 805-525-5871
Executive Vice President & Chief Financial Officer