Blue Valley Ban Corp. Announces First Quarter 2017 Operating Results

OVERLAND PARK, Kan.--()--Blue Valley Ban Corp. (OTCQX: BVBC) (the “Company”) today reported consolidated earnings for the quarter ended March 31, 2017 of $902,000, compared to $290,000 for the comparable period ended March 31, 2016. Earnings per common share increased to $0.17 for the quarter ended March 31, 2017, compared to $0.05 for the comparable period ended March 31, 2016. Numerous key aspects of the operating results and financial condition for the Company reflected positive trends and results as of and during the period ended March 31, 2017.

Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp. commented, “The Company’s improved operating results for the first quarter of 2017 have resulted from our implementation of strategic initiatives, which included loan growth, deposit growth, improvements to asset quality and a continued focus on operational efficiencies. These accomplishments reflect the foundation for growth and success established over the past several years, to which we remain committed.”

For the quarter ended March 31, 2017, net interest income increased $537,000, while the Company’s non-interest income declined by $161,000, compared to the prior year period. For the quarter ended March 31, 2017, the Company’s non-interest expense declined by $141,000, compared to the prior year period.

The Company recorded no provision to the allowance for loan losses during the quarter ended March 31, 2017, compared to a provision of $475,000 during the quarter ended March 31, 2016. Management evaluates credit risk on an ongoing basis to determine an appropriate level for the allowance for loan losses. Net recoveries to the allowance for loan loss as well as continued incremental improvement to the credit quality of the Company’s loan portfolio, net of the impact of loan growth during the period, were the key factors for the determination of the level for the allowance for loan losses for the quarter ended March 31, 2017. The Company’s ratio of total reserves to non-accrual loans improved to approximately 1,219% as of March 31, 2017.

At March 31, 2017, the Bank’s ratio of non-accrual loans plus loans greater than 90 days past due to total loans for the Company’s subsidiary, Bank of Blue Valley (the “Bank”), was 0.10%, which compares favorably with the most recent Uniform Bank Performance Report peer group ratio of 0.80%.

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, 2017 and December 31, 2016

(In thousands, except share data)

 
ASSETS
March 31, 2017   December 31, 2016
(Unaudited)
 
Cash and due from banks $ 20,902 $ 17,766
Interest-bearing deposits in other financial institutions   10,039   8,272
Cash and cash equivalents 30,941 26,038
 
Available-for-sale securities 103,885 107,760
 
Loans, net of allowance for loan losses of $6,319 and $6,164
in 2017 and 2016, respectively
497,815 487,518
 
Premises and equipment, net 12,779 12,046
Bank-owned real estate held for sale, net 5,915 5,915
Foreclosed assets held for sale, net 5,412 5,883
Interest receivable 1,621 1,785
Deferred income taxes 13,243 14,304
Prepaid expenses and other assets 7,547 7,939
FHLBank stock, Federal Reserve Bank stock,
and other securities
  3,747   5,244
 
Total assets $ 682,905 $ 674,432
 
 

Blue Valley Ban Corp.

Condensed Consolidated Balance Sheets

March 31, 2017 and December 31, 2016

(In thousands, except share data)

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
March 31, 2017   December 31, 2016
(Unaudited)
LIABILITIES
 
Deposits
Demand $ 151,025 $ 150,274
Savings, NOW and money market 282,646 280,628
Time   121,351     81,575  
Total deposits 555,022 512,477
 
Other interest-bearing liabilities 32,471 63,142
Long-term debt 48,176 53,333
Interest payable and other liabilities   1,853     2,045  
 
Total liabilities   637,522     630,997  
 
 
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
2017 – 471,979 shares; 2016 – 471,979 shares
472 472
Common stock, par value $1 per share;
authorized 15,000,000 shares; issued and outstanding
2017 – 5,651,256 shares; 2016 – 5,644,553 shares
5,651 5,644
Additional paid-in capital 31,099 30,858
Retained earnings (accumulated deficit) 10,744 9,842
Accumulated other comprehensive income loss, net of income tax credit of $(1,722) in 2017 and $(2,254) in 2016   (2,583 )   (3,381 )
 
Total stockholders’ equity   45,383     43,435  
 
Total liabilities and stockholders’ equity $ 682,905   $ 674,432  
 
 
Blue Valley Ban Corp.
Condensed Consolidated Statements of Operations
Three Months Ended March 31, 2017 and 2016

(In thousands, except share data)

 
Three Months Ended March 31,
  2017     2016
(Unaudited) (Unaudited)
INTEREST INCOME
Interest and fees on loans $ 5,577 $ 5,157
Federal funds sold and other short-term investments 15 45
Available-for-sale securities 540 481
Dividends on FHLBank and Federal Reserve Bank Stock   14   21
Total interest income   6,146   5,704
 
INTEREST EXPENSE
Interest-bearing demand deposits 59 59
Savings and money market deposit accounts 116 95
Other time deposits 203 187
Federal funds purchased and other interest-bearing liabilities 17 6
Long-term debt, net   438   581
Total interest expense   833   928
 
NET INTEREST INCOME 5,313 4,776
 
PROVISION FOR LOAN LOSSES     475
 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   5,313   4,301
 
NON-INTEREST INCOME
Service fees 867 869
Other income   284   443
Total non-interest income   1,151   1,312
 
NON-INTEREST EXPENSE
Salaries and employee benefits 2,729 2,679
Net occupancy expense 648 645
Foreclosed assets expense 208 431
Other operating expense   1,448   1,419
Total non-interest expense   5,033   5,174
 
INCOME BEFORE INCOME TAXES 1,431 439
 
PROVISION FOR INCOME TAXES   529   149
 
NET INCOME $ 902 $ 290
 
BASIC EARNINGS PER SHARE $ 0.17 $ 0.05
DILUTED EARNINGS PER SHARE $ 0.17 $ 0.05
 

Contacts

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

Contacts

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