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River Valley Community Bank Continues Earnings Streak; Cumulative Profits Since Inception Exceeds $1,200,000 (Unaudited)

^{Published on 2010-10-14 13:40:46 - Market Wire}
 

YUBA CITY, Calif.--([ BUSINESS WIRE ])--River Valley Community Bank (OTCBB:RVVY) headquartered in Yuba City, California reported After Tax Net Income of $247,645 for the quarter ended September 30, 2010. This represents a 29% increase over the $192,475 reported in the corresponding quarter a year ago. Year to date, the Bank has earned $758,021, a 97% increase over the nine months ending September 30, 2009. River Valley Community Bank has now recorded thirteen consecutive quarters of profitability and $1,221,863 of cumulative profits since inception in 2006.

The Bank ended the quarter with Total Assets and Total Deposits at record levels of $123,869,550 and $106,457,505 respectively. Core deposits (total deposits less time deposits) ended the quarter at $86,161,532 a significant 55% increase over the $55,735,630 posted a year earlier. Gross loans increased 4% from the corresponding quarter a year ago to $42,840,660; loan demand remains weak because of the current economic conditions and the continued deleveraging taking place by businesses and consumers. The investment portfolio has grown to $63,612,716 at the end of the quarter and reflected a mark-to-market gain (pretax) of $2,037,131. Shareholder Equity increased to an all time high of $16,621,630 at quartera™s end primarily resulting from retained earnings; Tier 1 Leverage Capital Ratio remains strong at 13.02%.

The improved results for the quarter were noteworthy considering a contraction in the Net Interest Margin (NIM) to 4.31 from 4.38 in the September quarter a year ago. The compression of the NIM was primarily a function of the Banka™s strong deposit growth during a period of weak loan demand and declining short term interest rates. Taken together, these factors have resulted in new deposits invested at the prevailing lower rates a" decreasing the yield on the Banka™s growing asset base.

The Bank again expensed $150,000 in the quarter to maintain the adequacy of allowance for loan losses as economic weakness continues throughout the region. Return on Equity of 5.98%, Return on Assets, 0.83% and Efficiency Ratio of 59.79% for the quarter also continue to rank high by current industry standards.

John I. Jelavich, President and Chief Executive Officer, commented, aOur growing reputation of being a safe, strong, and secure local community bank has clearly given us an edge in growing our business; quality and responsive personalized service definitely contributes to our success. Peer bank financial data reviewed on a quarterly basis continues to reflect our emerging strength as compared to our competitors. While we are not immune from the economic factors influencing our region, we have built a strong financial position which better positions us to take advantage of growth opportunities in the market. Recently we have added depth to the lending team and further augmented the credit administration process. We are taking the necessary steps to move the Bank to the next level,a Jelavich concluded.

River Valley Community Bank is located at 1629 Colusa Avenue, Yuba City, California. For more information please contact John Jelavich at 530-821-2460 or visit our website at: [ www.rivervalleycommunitybank.com ].

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.