SCVBank Reports Third Quarter Results
(Unaudited, except where noted)
SANTA PAULA, CA. October 27, 2011 – Santa Clara Valley Bank (SCVBank;OTC BB: SCVE.OB) today announced its 2011 third quarter results.
- Solid Operating Profit
- Large Reduction In Loan Charge-offs
- Improving Capital Ratios
- Highly Liquid
SCVBank recorded a net profit of $140,000 for the third quarter of 2011 compared to a net profit of $60,000 for the third quarter of 2010. Net profit for the nine month period ending September 30, 2011 was $384,000 versus a net loss of $(346,000) for the same nine month period in 2010. This improvement in earnings was largely due to the reduction in the provision for loan loss expense. Due to improved credit conditions there was no loan loss provision taken in the first nine months of 2011, compared to a $900,000 provision taken in 2011 during the same period.
Net loan charge-offs for the first nine months of 2011 totaled $279,000 as compared to $1,585,000 for the same nine month period in 2010. Interim CEO and Chairman of the Board Ralph De Leon noted, “We attribute this reduction in charge offs to the hard work of our loan staff to improve the overall quality of our loan portfolio.”
SCVBank continues to maintain a strong capital position with a Tier 1 Leverage Ratio of 11.00%, up from 9.09% a year ago. Total risk-based capital is 19.03%, up from 14.81% last September.
Liquidity continues to be very strong as cash and investments total $55,345,000, or 42.67% of total assets at quarter end.
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 Corporation 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, and 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.