Pacific Valley Bancorp Announces Its Third Quarter 2024 Financial Results
Rhea-AI Summary
Pacific Valley Bancorp (PVBK) reported Q3 2024 net income of $1.1 million, down 9.3% year-over-year but up 12.2% quarter-over-quarter. Net interest margin decreased to 3.29% from 3.42% in Q3 2023. Gross loans grew 9.8% year-over-year to $470.4 million, while total deposits decreased 2.4% to $473.0 million. The bank maintains strong capital positions with a Community Bank Leverage Ratio of 13.19%, well above the 9% regulatory requirement. Credit quality remains robust with non-performing loans at 0.24% of gross loans.
AI-generated analysis. Not financial advice.
Positive
- Gross loans increased 9.8% YoY ($42.2 million)
- Strong capital position with 13.19% Community Bank Leverage Ratio
- Quarter-over-quarter net income increased 12.2%
- Excellent credit quality with non-performing loans at 0.24%
- Combined liquidity covers 182% of uninsured deposits
Negative
- Net income decreased 9.3% YoY in Q3 2024
- Net interest margin declined to 3.29% from 3.42% YoY
- Total deposits decreased 2.4% YoY ($11.8 million)
- Higher interest expenses impacting profitability
- Return on average assets declined to 0.83% from 0.93% YoY
News Market Reaction – PVBK
On the day this news was published, PVBK gained 0.55%, reflecting a mild positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
FINANCIAL HIGHLIGHTS:
- Net income for the quarter ended September 30, 2024, was
$1.1 million 12.2% or$124 thousand $0.23 $0.21 - Net income for the nine months ended September 30, 2024 was
$3.4 million 8.8% or$323 thousand - Net interest margin for the third quarter September 30, 2024 was
3.29% compared with3.42% for the same period in 2023. The decrease resulted from higher deposit interest expense and lower Fed funds interest income, partially offset by higher loan interest income. - Net interest margin for the nine months ended September 30, 2024 was
3.39% compared with3.51% for the same period in 2023. The decrease is primarily the result of higher deposit interest expense and lower Fed funds interest income. - Gross loans outstanding grew by
9.8% or$42.2 million - Non-Performing loans to gross loans for the quarter ended September 30, 2024, was
0.24% compared to0.23% as of September 30, 2023. - The Bank subsidiary's Community Bank Leverage Ratio has been consistently strong. As of September 30, 2024 the ratio was
13.19% , compared to13.75% on June 30, 2024, and12.39% on September 30, 2023. The regulatory requirement for this ratio is9.00% .
"We are pleased to see our investments in loan and deposit production personnel are starting to bear fruit, as loans increased
"Changes in our market resulting from the acquisitions of competitor banks present opportunities for growth. As mentioned, we have increased loan and deposit production and support personnel to take advantage of these opportunities, and will also be increasing our spending on marketing. These investments will reduce current net income, but we believe they will lead to greater profitability in the long term. I am excited about the Company's prospects as our market changes," stated CEO Fanoe.
"Our liquidity position remains strong, as our primary liquidity ratio (cash, deposits held in other banks, and securities as a percentage of total assets) was
As of September 30, 2024, total assets were
The investment securities portfolio totaled
Total gross loans outstanding were
As of September 30, 2024, total deposits were
Shareholders' equity was
Net interest income was
No provision for credit losses was recorded in the third quarter of 2024 or in the third quarter of the prior year. The lack of provision in 2024 and 2023 reflects the quality of the Company's loan portfolio. The allowance for credit losses was
For the quarter ended September 30, 2024, non-interest income was
Non-interest expense was
Return on average assets was
Pacific Valley Bancorp Selected Financial Data ‐ Unaudited $ In thousands, Except per Share Data | |||||
Assets | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||
Cash and Due From Banks | |||||
Investment Securities | 27,044 | 26,966 | 28,614 | ||
Gross Loans Outstanding | 470,430 | 455,811 | 428,279 | ||
Allowance for Credit Losses | (7,576) | (7,544) | (7,512) | ||
Other Assets | 15,425 | 16,823 | 14,875 | ||
Total Assets | |||||
Liabilities and Capital | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||
Non-Interest Bearing Deposits | |||||
Interest Bearing Deposits | 316,682 | 285,856 | 287,044 | ||
Borrowings | 16,868 | 16,855 | 16,815 | ||
Other Liabilities | 5,334 | 3,398 | 3,413 | ||
Equity | 55,645 | 53,899 | 49,548 | ||
Total Liabilities and Capital | |||||
Key Ratios: | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||
Net Loan to Deposits | 97.86 % | 97.53 % | 86.80 % | ||
Allowance for credit losses to gross loans | 1.61 % | 1.66 % | 1.75 % | ||
Non-performing loans to gross loans | 0.24 % | 0.22 % | 0.23 % | ||
Equity to Year-to-Date Average Assets | 10.51 % | 10.37 % | 9.39 % | ||
Book Value per Share | |||||
Income Statement, Three Months Ended | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||
Interest Income | |||||
Interest Expense | 3,199 | 2,699 | 2,310 | ||
Net Interest Income | 4,374 | 4,155 | 4,480 | ||
Provision for Credit Losses | 0 | 0 | 0 | ||
Non-Interest Income | 378 | 412 | 361 | ||
Non-Interest Expense | 3,137 | 3,133 | 3,070 | ||
Income Tax | 477 | 420 | 516 | ||
Net Income | |||||
Key Ratios, Three Months Ended: | September 30, 2024 | June 30, 2024 | September 30, 2023 | ||
Earnings per basic share | |||||
Net Interest Margin, annualized | 3.29 % | 3.32 % | 3.42 % | ||
Quarter Efficiency Ratio | 66.01 % | 68.60 % | 63.42 % | ||
Return on Average Assets, annualized | 0.83 % | 0.78 % | 0.93 % | ||
Return on Average Equity, annualized | 8.20 % | 7.40 % | 10.21 % | ||
Pacific Valley Bancorp Selected Financial Data ‐ Unaudited $ In thousands, Except per Share Data | |||
Income Statement, Nine Months Ended | September 30, 2024 | September 30, 2023 | |
Interest Income | |||
Interest Expense | 8,385 | 5,578 | |
Net Interest Income | 13,024 | 13,341 | |
Provision for Credit Losses | 0 | 0 | |
Non-Interest Income | 1,141 | 1,128 | |
Non-Interest Expense | 9,411 | 9,276 | |
Income Tax | 1,400 | 1,516 | |
Net Income | |||
Key Ratios, Nine Months Ended | September 30, 2024 | September 30, 2023 | |
Earnings per basic share | |||
Net Interest Margin, annualized | 3.39 % | 3.51 % | |
Efficiency Ratio | 66.44 % | 64.11 % | |
Return on Average Assets | 0.84 % | 0.93 % | |
Return on Average Equity | 8.24 % | 10.07 % | |
ABOUT PACIFIC VALLEY BANCORP:
Pacific Valley Bancorp completed its formation and reorganization as a bank holding company for Pacific Valley Bank on January 4, 2022. The Company is a registered bank holding company with the Federal Reserve Bank, but it has not registered its securities under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, and it therefore does not file periodic reports with the Securities and Exchange Commission.
Pacific Valley Bank is a full service business bank that commenced operations in September 2004 to provide exceptional service to customers in
For more information, visit www.pacificvalleybank.com .
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. Accordingly, readers should not place undue reliance on these forward- looking statements. These risks and uncertainties include, but are not limited to, economic conditions in all areas in which the Company conducts business, including the competitive environment for attracting loans and deposits; supply and demand for real estate and periodic deterioration in real estate prices and/or values in
Contact
Anker Fanoe, Chief Executive Officer (831) 771-4384
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SOURCE Pacific Valley Bancorp