SCVBank Reports First Quarter Results
- Improved operating results
- Increase in net interest income
SANTA PAULA, CA. April 26, 2010- Santa Clara Valley Bank (SCVBank;OTC BB:SCVE.OB) today announced its 2010 first quarter financial results.
SCVBank reported that net interest income was $1,344,000 in the first quarter of 2010, an increase of 10%, or $124,000, over the $1,220,000 of net interest income reported in the first quarter of 2009. The increase in the net interest income is primarily a function of aggressive liability management: higher priced funding sources were replaced by lower costing deposits. Non-interest expense was reduced by $32,000 year-over-year due to cost cutting in spite of higher FDIC premiums, insurance costs and costs related to collection of non-performing assets.
SCVBank recorded a net loss for the first quarter of 2010 of ($181,000) compared to a net loss of ($467,000) for the period a year earlier. The $181,000 less preferred stock dividends results in a loss per common share, basic of ($0.15). The loss occurred primarily as a result of a $300,000 addition to the loan loss reserve, as a result of several loans which were adversely affected by the recession and its effect on collateral values. Despite the loss provision, SCVBank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 9.14% at quarter end, well above the requirement of 5% to be considered a well capitalized institution. Total risk-based capital is 14.17%, well above the 10% level needed to be considered well capitalized.
The loss in the quarter reflects a significant improvement over the fourth quarter of 2009 results when a loss of $1,195,000 was experienced.
In spite of the economic downturn, SCVBank’s customer base continues to grow. As of 3/31/10, the bank held 5,247 accounts, reflecting a 4.4% increase over a year earlier. CEO Michael Hause noted, “Our attention to customer service has never wavered, and our customer base continues to refer more and more customers away from the big banks to a community bank focused on their needs”. He continued, “Being named Best Bank in the Santa Clarita Valley in 2009 has highlighted the successful branding of SCVBank as the “Working for You” bank.”
“The Bank is in a very strong capital position. While the results of the first quarter were not welcome, we believe the trends are positive,” 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
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.