Blue Valley Ban Corp. Announces First Quarter 2016 Operating Results

OVERLAND PARK, Kan.--()--Blue Valley Ban Corp. (OTCQX: BVBC) (the “Company”) today reported consolidated earnings for the quarter ended March 31, 2016 of $290,000, compared to $609,000 for the comparable period ended March 31, 2015. Earnings per common share increased to $0.05 for the quarter ended March 31, 2016, compared to $0.03 for the comparable period ended March 31, 2015. The improvement in earnings per share during the first quarter of 2016, compared to the previous year, was the result of the Company’s August, 2015 redemption of its $21.75 million of Series A Fixed Rate Cumulative Preferred Stock.

Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp., commented, “The Company’s first quarter 2016 operating results reflect the progress we have made to establish a foundation for growth and success. Growth in our loan portfolio contributed to an increase in net interest income. Additionally, the 2015 redemption of our Series A preferred stock enabled improved stockholder returns compared to the first quarter in the prior year. We are encouraged by these accomplishments and remain committed to future growth and success.”

Due to an increase in average loans and a reduction in the average rate paid on interest-bearing liabilities, the Company’s net interest income increased by $373,000, or 8.4%, during the quarter ended March 31, 2016, compared to the same period in 2015. Non-interest income declined by $287,000, or 17.9%, during the quarter ended March 31, 2016, compared to the same period in 2015, primarily due to a decline in loans held for sale fee income and other income. The decline in loans held for sale fee income resulted from the Company’s strategic decision to discontinue originating and selling residential mortgage loans to the secondary mortgage market beginning in 2016. The Company’s non-interest expense increased by $107,000, or 2.1%, for the quarter ended March 31, 2016 compared to the same period in the prior year as an increase in the Company’s foreclosed asset expense was partially offset by declines in salaries and employee benefit and other operating expenses.

As a result of credit quality and other factors used to determine the level of the Allowance for Loan Losses, the Company recorded a $475,000 provision for loan loss for the quarter ended March 31, 2016, compared to no provision recorded during the same period in the prior year.

About Blue Valley Ban Corp.

Blue Valley Ban Corp. is a bank holding company that, through its subsidiaries, provides banking services to closely-held businesses, their owners, professionals and individuals in Johnson County, Kansas.

This release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. The Company intends such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of those safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, can generally be identified by use of the words "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," or the negative of these terms or other comparable terminology. The Company is unable to predict the actual results of its future plans or strategies with certainty. Factors which could have a material adverse effect on the operations and future prospects of the Company include, but are not limited to, fluctuations in market rates of interest and loan and deposit pricing; inability to maintain or increase deposit base and secure adequate funding; a continued deterioration of general economic conditions or the demand for housing in the Company's market areas; legislative or regulatory changes; regulatory action; continued adverse developments in the Company's loan or investment portfolio; any inability to obtain funding on favorable terms; the Company’s non-payment on Trust Preferred Securities or other debt; the loss of key personnel; significant increases in competition; potential unfavorable actions from rating agencies; potential unfavorable results of litigation to which the Company may become a party, and the possible dilutive effect of potential acquisitions or expansions. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors. Nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

 

Blue Valley Ban Corp.

Condensed Consolidated Balance Sheets

March 31, 2016 and December 31, 2015

(In thousands, except share data)

 
ASSETS
    March 31, 2016     December 31, 2015
(Unaudited)
 
Cash and due from banks $ 20,803 $ 22,178
Interest-bearing deposits in other financial institutions   29,516   23,655
Cash and cash equivalents 50,319 45,833
 
Available-for-sale securities 103,186 91,560
Mortgage loans held for sale, fair value 2,258
 

Loans, net of allowance for loan losses of $5,249 and $4,731
  in 2016 and 2015, respectively

442,505 443,962
 
Premises and equipment, net 11,622 11,739
Bank-owned real estate held for sale, net 5,896 5,892
Foreclosed assets held for sale, net 9,125 9,644
Interest receivable 1,627 1,727
Deferred income taxes 12,317 12,902
Prepaid expenses and other assets 7,626 7,923
FHLBank stock, Federal Reserve Bank stock,
and other securities
  4,804   4,805
 
Total assets $ 649,027 $ 638,245
 
 

Blue Valley Ban Corp.

Condensed Consolidated Balance Sheets

March 31, 2016 and December 31, 2015

(In thousands, except share data)

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
    March 31, 2016     December 31, 2015
(Unaudited)
LIABILITIES
 
Deposits
Demand $ 143,160 $ 129,180
Savings, NOW and money market 258,523 251,765
Time   97,288   102,297  
Total deposits 498,971 483,242
 
Other interest-bearing liabilities 29,952 35,746
Long-term debt 72,751 72,786
Interest payable and other liabilities   1,617   1,745  
 
Total liabilities   603,291   593,519  
 
 
STOCKHOLDERS’ EQUITY
 
Capital stock

Preferred stock, $1 par value, convertible to common stock;
 pari passu with common stock upon liquidation; authorized
 1,000,000 shares; issued and outstanding
 2016 – 471,979 shares; 2015 – 471,979 shares

472 472

Common stock, par value $1 per share;
 authorized 15,000,000 shares; issued and outstanding
 2016 – 5,380,516 shares; 2015 – 5,371,353 shares

5,381 5,371
Additional paid-in capital 30,714 30,657
Retained earnings (accumulated deficit) 8,566 8,276

Accumulated other comprehensive income (loss), net of income
  tax (credit) of $403 in 2016 and $(33) in 2015

  603   (50 )
 
Total stockholders’ equity   45,736   44,726  
 
Total liabilities and stockholders’ equity $ 649,027 $ 638,245  
 
   

Blue Valley Ban Corp.

Condensed Consolidated Statements of Operations

Three Months Ended March 31, 2016 and 2015

(In thousands, except share data)

 
Three Months Ended March 31,
2016     2015
(Unaudited) (Unaudited)
INTEREST INCOME
Interest and fees on loans $ 5,157 $ 4,889
Federal funds sold and other short-term investments 45 31
Available-for-sale securities 481 486

Dividends on FHLBank and Federal
  Reserve Stock

 

  21   22
Total interest income   5,704   5,428
 
INTEREST EXPENSE
Interest-bearing demand deposits 59 60
Savings and money market deposit accounts 95 79
Other time deposits 187 234
Federal funds purchased and other interest-bearing liabilities 6 5
Long-term debt, net   581   647
Total interest expense   928   1,025
 
NET INTEREST INCOME 4,776 4,403
 
PROVISION FOR LOAN LOSSES   475  
 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   4,301   4,403
 
NON-INTEREST INCOME
Loans held for sale fee income 95 263
Service fees 869 924
Other income   348   412
Total non-interest income   1,312   1,599
 
NON-INTEREST EXPENSE
Salaries and employee benefits 2,679 2,771
Net occupancy expense 645 662
Foreclosed assets expense 431 143
Other operating expense   1,419   1,491
Total non-interest expense   5,174   5,067
 
INCOME BEFORE INCOME TAXES 439 935
 
PROVISION FOR INCOME TAXES   149   326
 
NET INCOME   290   609
 
DIVIDENDS AND ACCRETION ON PREFERRED STOCK     489
 

NET INCOME AVAILABLE TO COMMON STOCKHOLDERS

 

$ 290 $ 120
 
BASIC EARNINGS PER SHARE $ 0.05 $ 0.03
DILUTED EARNINGS PER SHARE $ 0.05 $ 0.03
 

Contacts

Blue Valley Ban Corp.
Mark A. Fortino, 913-338-1000
Chief Financial Officer

Contacts

Blue Valley Ban Corp.
Mark A. Fortino, 913-338-1000
Chief Financial Officer