Blue Valley Ban Corp. Announces First Quarter 2018 Operating Results

First Quarter 2018 Net Income of $1.5 Million or $0.27 Per Share

OVERLAND PARK, Kan.--()--Blue Valley Ban Corp. (OTCQX: BVBC) (the “Company”) today reported consolidated earnings for the quarter ended March 31, 2018 of $1.5 million, compared to $902,000 for the comparable period ended March 31, 2017. Earnings per common share increased to $0.27 for the quarter ended March 31, 2018, compared to $0.17 for the comparable period ended March 31, 2017. 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, 2018.

Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp., commented, “Growth in earning assets, the restructuring of our funding base with the elimination of all brokered deposits and FHLBank advances, growth of relationship based core deposits, and the reduction of nearly all of our non-performing assets over the past five years is beginning to be realized in our reported earnings as presented for the first quarter of 2018. We remain committed to continued future prudent growth and improved operational efficiency.”

For the quarter ended March 31, 2018, net interest income increased $526,000, or 9.9%, and the Company’s non-interest income increased by $8,000, or 0.7%, compared to the prior year period. For the quarter ended March 31, 2018, the Company’s non-interest expense declined by $343,000, or 6.8%, compared to the prior year period.

As a result of the volume and composition of loan growth and other factors used to determine the level of the allowance for loan losses, the Company recorded a $300,000 provision for loan loss for the quarter ended March 31, 2018, compared to no provision recorded during the same period in the prior year. The Company’s ratio of total reserves to non-accrual loans was approximately 551% as of March 31, 2018, which exceeds the most recent Uniform Bank Performance Report (UBPR) peer group ratio of 438%. At March 31, 2018, the Bank’s ratio of nonperforming loans to total loans for the Company’s subsidiary, Bank of Blue Valley, was 0.20%, which compares favorably with the most recent UBPR peer group ratio of 0.66%.

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, 2018 and December 31, 2017

(In thousands, except share data)

 
ASSETS
 
   

March 31, 2018

    December 31, 2017
(Unaudited)
 
Cash and due from banks $ 13,622 $ 9,394
Interest-bearing deposits in other financial institutions   24,382   4,150
Cash and cash equivalents 38,004 13,544
 
Available-for-sale securities 100,955 103,130
 

Loans, net of allowance for loan losses of $5,857 and $5,535
in 2018 and 2017, respectively

532,569 529,265
 

Premises and equipment, net

12,122 12,322
Bank-owned real estate held for sale, net 5,915 5,915
Foreclosed assets held for sale, net 1,215 2,252
Interest receivable 1,851 1,888
Deferred income taxes 7,721 7,755
Prepaid expenses and other assets 7,681 7,531

FHLBank stock, Federal Reserve Bank stock,
and other securities

  3,946   3,888
 
Total assets $ 711,979 $ 687,490
 

Blue Valley Ban Corp.

Condensed Consolidated Balance Sheets

March 31, 2018 and December 31, 2017

(In thousands, except share data)

 
LIABILITIES AND STOCKHOLDERS’ EQUITY
 
   

March 31, 2018

    December 31, 2017
(Unaudited)
LIABILITIES
 
Deposits
Demand $ 151,565 $ 152,052
Savings, NOW and money market 333,497 315,553
Time   114,436     101,240  
Total deposits 599,498 568,845
 
Other interest-bearing liabilities 31,683 37,202
Long-term debt 32,542 32,802
Interest payable and other liabilities   2,018     2,392  
 
Total liabilities   665,741     641,241  
 
 
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
2018 – 471,979 shares; 2017 – 471,979 shares

472 472

Common stock, par value $1 per share;
authorized 15,000,000 shares; issued and outstanding
2018 – 5,663,823 shares; 2017 – 5,677,865 shares

5,664 5,678
Additional paid-in capital 32,122 32,108
Retained earnings 12,400 10,941

Accumulated other comprehensive income loss, net of income
tax credit of $(1,594) in 2018 and $(1,091) in 2017

  (4,420 )   (2,950 )
 
Total stockholders’ equity   46,238     46,249  
 
Total liabilities and stockholders’ equity $ 711,979   $ 687,490  
 
 
Blue Valley Ban Corp.
Condensed Consolidated Statements of Income
Three Months Ended March 31, 2018 and 2017

(In thousands, except share data)

 
    Three Months Ended March 31,
2018     2017
(Unaudited) (Unaudited)
INTEREST INCOME
Interest and fees on loans $ 6,253 $ 5,577
Federal funds sold and other short-term investments 20 15
Available-for-sale securities 509 540
Dividends on FHLBank and Federal Reserve Bank Stock   5   14
Total interest income   6,787   6,146
 
INTEREST EXPENSE
Interest-bearing demand deposits 65 59
Savings and money market deposit accounts 193 116
Other time deposits 285 203
Federal funds purchased and other interest-bearing liabilities 31 17
Long-term debt, net   374   438
Total interest expense   948   833
 
NET INTEREST INCOME 5,839 5,313
 
PROVISION FOR LOAN LOSSES   300  
 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   5,539   5,313
 
NON-INTEREST INCOME
Service fees 788 867
Other income   371   284
Total non-interest income   1,159   1,151
 
NON-INTEREST EXPENSE
Salaries and employee benefits 2,701 2,729
Net occupancy expense 683 648
Foreclosed assets expense 78 208
Other operating expense   1,228   1,448
Total non-interest expense   4,690   5,033
 
INCOME BEFORE INCOME TAXES 2,008 1,431
 
PROVISION FOR INCOME TAXES   538   529
 
NET INCOME $ 1,470 $ 902
 
BASIC EARNINGS PER SHARE $ 0.27 $ 0.17
DILUTED EARNINGS PER SHARE $ 0.27 $ 0.17

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