SCVBank Reports Second Quarter Results
- Improved operating results
- Improved liquidity
- Stable deposits
- Strong capital ratios
SANTA PAULA, CA. August 10, 2010- Santa Clara Valley Bank (SCVBank;OTC BB:SCVE.OB) today announced its 2010 second quarter financial results.
SCVBank reported quarterly revenue of $1,929,000 compared to $2,102.00 for the second quarter 2009. Net interest income was $1,299,000, a decrease of 5.5% from the $1,374,000 of net interest income reported in the second quarter of 2009. The decrease in the net interest income is primarily a function of lower loan demand offset by reduced interest expense. Non- interest income of $316,000 was $59,000 or 23% higher than the period a year earlier. Non-interest expense is being impacted by higher FDIC premiums, insurance costs and costs related to collection of non-performing assets.
SCVBank recorded a net loss for the second quarter of 2010 of $225,000 compared to net income of $72,000 for the period a year earlier. The loss occurred primarily as a result of a $500,000 addition to the loan loss reserve, as a result of several nonperforming assets 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 9.04% at quarter end, well above the requirement of 5% to be considered a well capitalized institution. Total risk-based capital is 14.19%, well above the 10% level needed to be considered well capitalized.
For the six month period ending 6/30/10, the Bank reported a loss of $406,000, compared to a loss of $394,000 for the same period a year earlier. On a pretax basis, this quarter's loss is less than last year's pre-tax loss of $700,000.
Michael D. Hause, President and CEO reported, "Several of the write-downs in the second quarter completely eliminated some of the Bank's largest problem assets. 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 $1.5 million".
During the quarter, deposits remained stable while the Bank's liquidity increased significantly. Investments increased $10 million from $30.3 million at 2009 year-end to $40.4 million.
"The Bank remains in a very strong capital position. Since the beginning of the recession, we have tightened underwriting standards and have improved internal processes to strengthen the Bank's efficiency and effectiveness," said Chairman Ralph De Leon.
Second Quarter 2010 Financial Results - (PDF)
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.