SCVBank Reports Third Quarter Profitability
- Quarterly Net Profit of $60,000
- Improved Delinquencies
- Improved Net Interest Margin
- Strong Capital Ratios
SANTA PAULA, CA. November 30, 2010 – Santa Clara Valley Bank, N.A. (SCVB.OB) announced that the Bank had a Net Profit of $60,000 for the 3rd quarter. The profit reflects improving trends in the Bank's loan portfolio and the net interest margin, which has improved to 4.30% from 3.99% as of March 31, 2010. Capital levels remain strong with the Tier 1 Leverage Capital, and the Total Risk Based Capital ratios at 9.09% and 14.81%, respectively.
Michael D. Hause, President and CEO reported, "We generated a quarterly profit as a result of SCVBank's improving net interest margin, tight controls on expenses, and improving trends in the Bank's loan portfolio, in spite of the continuing recessionary environment."
The Bank has entered into a formal Consent Order with its primary regulator, the Office of the Comptroller of the Currency (OCC), to adopt an action program designed to further enhance the strength and stability of the Bank's operations. Mr. Hause said, "This Consent Order is based upon an examination reviewing the Bank's 2009 performance. Over the past year we have made significant progress in aggressively addressing many of the areas outlined in the Order, including real estate-related issues within our portfolio. As a result, many of the prudent actions recommended by the OCC have already been completed, while others will be completed shortly. Nonetheless, we will continue working in close consultation with our regulators and executing on our strategic plan to help ensure the long-term strength and performance of Santa Clara Valley Bank."
As part of the Order, the Bank consented to specific steps that it will undertake to further enhance the Bank's performance. These affirmative actions include developing and implementing a plan to maintain strong capital levels, to improve internal controls on the loan portfolio, and revising and expanding the Bank's long-term business plan and budget.
"Santa Clara Valley Bank, like many other institutions, has not been immune to the unprecedented challenges facing the economy and real estate markets. In fact, an industry expert recently noted that roughly two-thirds of all banks in California are subject to some kind of agreement with their regulator. In spite of the state of the economy, Santa Clara Valley Bank continues to maintain strong capital levels, and our balance sheet reflects a very strong liquidity position, with over $40 million in investments, and has been well positioned to deal with the current historic low interest rate environment. Since 2009, the Bank's ratios have improved in most areas, including improved operating performance as reflected in the net profit for the third quarter of $60,000. Everyone at Santa Clara Valley Bank remains highly committed to providing the excellent service its customers have come to expect as we continue to focus on the needs of the local community", stated CEO Hause.
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.