Business & Finance
Business and Finance
Business and Finance
Tue, October 26, 2010 
SANTA PAULA, Calif.--([ BUSINESS WIRE ])--Santa Clara Valley Bank (SCVBank) (OTC BB:SCVE) today announced its 2010 third quarter financial results.
"The Bank remains in a very strong capital position. Since the beginning of the recession, we have tightened underwriting standards. With the help of our new Chief Credit Officer Cheryl Knight, the Banka™s strategic plan will be greatly enhanced"
SCVBank reported quarterly revenue of $1,801,000 compared to $2,041,000 for the third quarter 2009. Net interest income was $1,360,000, a decrease of 2.4% from the $1,393,000 level of net interest income reported in the third quarter of 2009. The decrease in the net interest income is primarily a function of a reduction in loan volume due in part to low loan demand offset by reduced interest expense. Non-interest income of $163,000 was $49,000 lower than the period a year earlier, as SBA loan demand has also waned.
SCVBank recorded net income for the third quarter of 2010 of $60,000 compared to a net loss of $1.4 million for the period a year earlier. The profit reflects improving trends in the Banka™s loan portfolio and its net interest margin, which has steadily improved to 4.30%. Non-interest expense was $96,000 higher than the same quarter a year earlier as higher FDIC premiums, insurance costs and legal costs related to collection of problem loans, and OREO costs and expenses are hampering efforts to control expenses.
Net loan charge-offs in the quarter were $134,000 reflecting a positive trend as $717,000 was charged-off in the second quarter and $737,000 was charged-off in the first quarter 2010. The Banka™s Other Real Estate Owned of $2,362,000 is hindering bank earnings. All properties are being properly marketed.
SCVBank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 9.09% at quarter end, well above the requirement of 5% to be considered a well capitalized institution. Total risk-based capital is 14.81%, well above the 10% level needed to be considered well capitalized.
For the nine month period ending 9/30/10, the Bank reported a loss of $346,000, compared to a loss of $1,790,000 for the same period a year earlier. Net interest income for the year to date is up approximately 1% over the same period a year earlier, as the Banka™s net interest margin has improved.
Michael D. Hause, President and CEO reported, aWe generated a quarterly profit as a result of SCVBanka™s improving net interest margin, tight controls on expenses, and improving trends in the Banka™s loan portfolio, in spite of the continuing recessionary environment.a
Loan delinquencies, which are often the first sign of loan problems, have dropped dramatically. As of quarter end, delinquent loans between 30 and 90 days past due were down to $1.0 million or 1.1% of gross loan outstanding.
During the quarter, deposits remained stable while the Banka™s liquidity increased significantly. Investments increased $10 million from $30.3 million at 2009 year-end to $40.4 million as of 9/30/10.
aThe Bank remains in a very strong capital position. Since the beginning of the recession, we have tightened underwriting standards. With the help of our new Chief Credit Officer Cheryl Knight, the Banka™s strategic plan will be greatly enhanced,a said Chairman Ralph De Leon.
Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Under its stock symbol of SCVE.OB, SCVBank's stock is traded through McAdams Wright Ragen, Howe Barnes Hofer & Arnett, and Monroe Securities. The Bank's web site is [ www.SCVBank.com ].
Santa Clara Valley Bank Corporate Headquarters
901 East Main Street
Santa Paula, California 93060
805-525-7847
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, 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 | ||||||||||||
| September 30, 2010 | December 31, 2009 | |||||||||||||
| Assets: | ||||||||||||||
| Cash and non-interest bearing due from banks | $ | 3,180,000 | $ | 4,522,000 | ||||||||||
| Investments | 40,272,000 | 30,286,000 | ||||||||||||
| Loans | 90,557,000 | 103,131,000 | ||||||||||||
| Allowance for loan losses | (2,628,000 | ) | (3,312,000 | ) | ||||||||||
| Other assets | 5,831,000 | 5,070,000 | ||||||||||||
| Total Assets | $ | 137,212,000 | $ | 139,697,000 | ||||||||||
| Liabilities and Stockholders' Equity: | ||||||||||||||
| Deposits | $ | 115,316,000 | $ | 121,248,000 | ||||||||||
| Borrowed Funds | 8,557,000 | 6,550,000 | ||||||||||||
| Other liabilities | 376,000 | 493,000 | ||||||||||||
| Stockholders' equity | 12,963,000 | 11,406,000 | ||||||||||||
| Total Liabilities and Stockholders' Equity | $ | 137,212,000 | $ | 139,697,000 | ||||||||||
| Tier 1 leverage ratio | 9.09 | % | 8.15 | % | ||||||||||
| Tier 1 risked-based capital ratio | 13.54 | % | 11.04 | % | ||||||||||
| Total risk-based capital ratio | 14.81 | % | 12.31 | % | ||||||||||
| Book value per common share | $ | 6.96 | $ | 7.90 | ||||||||||
| Common shares outstanding (end of period) | 1,442,167 | 1,077,167 | ||||||||||||
| For the Nine Months Ended September 30, | ||||||||||||||
| Statements of Income (unaudited) | 2010 | 2009 | ||||||||||||
| Interest income | $ | 4,942,000 | $ | 5,379,000 | ||||||||||
| Interest expense | 939,000 | 1,392,000 | ||||||||||||
| Net interest income | 4,003,000 | 3,987,000 | ||||||||||||
| Provision for loan losses | 900,000 | 3,010,000 | ||||||||||||
| Noninterest income | 512,000 | 634,000 | ||||||||||||
| Noninterest expense | 3,960,000 | 3,834,000 | ||||||||||||
| Income (loss) before taxes | (345,000 | ) | (2,223,000 | ) | ||||||||||
| Income tax (benefit) provisional | 1,000 | (433,000 | ) | |||||||||||
| Net Income (Loss) | $ | (346,000 | ) | $ | (1,790,000 | ) | ||||||||
| Preferred stock dividend | - | (80,000 | ) | |||||||||||
| Net income (loss) applicable to common shares | $ | (346,000 | ) | $ | (1,870,000 | ) | ||||||||
| Loss per common share, basic | ($0.24 | ) | ($1.74 | ) | ||||||||||
| Return on average assets | -0.32 | % | -1.73 | % | ||||||||||
| Return on average equity | -3.23 | % | -21.57 | % | ||||||||||
| For the Three Months Ended September 30, | ||||||||||||||
| 2010 | 2009 | |||||||||||||
| Quarterly net income | $ | 60,000 | $ | (1,396,000 | ) | |||||||||
Preferred stock dividend | - | (40,000 | ) | |||||||||||
| Quarterly net income applicable to common shares | $ | 60,000 | $ | (1,436,000 | ) | |||||||||
| Nonperforming assets | $ | 6,174,000 | $ | 5,078,000 | ||||||||||
