Valley Republic Bancorp Reports Record 1st Quarter Earnings and Continued Strong Balance Sheet Growth
BAKERSFIELD, Calif., April 15, 2021 /PRNewswire/ -- Valley Republic Bancorp (the "Company") (OTCQX: VLLX), the parent company of Valley Republic Bank (the "Bank"), today announced its financial results for the quarter ended March 31, 2021.
1st Quarter Ended March 31, 2021 Compared to 1st Quarter Ended March 31, 2020:
- Net income after tax increased
64.4% to$3.70 8 million or $.88 per share - Total assets increased
41.4% to$1.35 0 billion - Deposits increased
42.5% to$1.19 8 billion - Total Loans increased
53.8% to$988 million - Loans excluding PPP increased
15.14% to$741 million - Shareholder equity increased
17.4% to$96 million - Book value increased to
$22.84 per share - YTD return on average assets increased to
1.18% - YTD return on average equity increased to
15.59%
Overview:
The Bank generated exceptionally strong results for the quarter ending March 31, 2021 considering the extremely difficult interest rate environment. The strong performance was driven by core loan growth, deposit growth, Paycheck Protection Program (PPP) forgiveness, and an intentional focus on expense control. In addition, Valley Republic chose to participate in the second round of PPP, recognizing the continued economic hardship endured by the business communities we serve. As with the first round of PPP, Valley Republic extended the program to both customers and non-customers. As of April 4, 2021, the Bank had funded 437 second round PPP loans totaling
Geraud Smith, President and CEO stated, "We believed that PPP was going to be extremely important to the communities we serve and because of that we directed our focus to successfully implementing the program. The Valley Republic team has done an outstanding job to ensure that these PPP funds get into the hands of our business partners within our service area. By processing all loans in house, we are able to deliver on our brand promise and reaffirm our commitment to the communities we serve."
Impaired and nonperforming assets at quarter ending March 31, 2021 were
Jack Smith, Chief Credit Officer stated, "Our loan portfolio performed very well during the 1st quarter. Improvements in the oil and gas sector, hospitality and dining, along with continued low level of delinquencies, allowed the Bank to slightly reduce its loan loss reserve ratio (ALLL) compared to December 31, 2020."
During the 1st quarter ending March 31, 2021, the Company approved a stock repurchase plan which allows for a maximum of 100,000 shares of the Company's common stock to be acquired. The repurchase plan has an effective date of April 1, 2021 and will expire on April 1, 2022. Stock purchases under the new plan will be administered by the Board of Directors.
Financial Performance
The Company reported net income after tax of
Growth
Total assets for the 1st quarter ended March 31, 2021 were
Eugene Voiland, Chairman of the Board of Directors added, "Despite the continuing economic upheaval caused by COVID-19, the Bank and its employees continue to perform very well. We are hopeful as pandemic cases decline and more people are vaccinated that our community's economically hard-hit businesses will begin to be able to safely reopen. The resilience and creativity of these business customers has been truly inspiring given the many challenges."
About Valley Republic Bancorp and Valley Republic Bank
Valley Republic Bancorp is a bank holding company formed in 2016. Valley Republic Bank is a wholly owned subsidiary of Valley Republic Bancorp, headquartered in Bakersfield, California. The Bancorp is subject to the regulatory oversight of the Federal Reserve Bank, and the Bank is subject to the regulatory oversight of the Federal Deposit Insurance Corporation and the California Department of Business Oversight. Valley Republic Bank is an insured, state-chartered, non-member bank of the Federal Reserve System. The Bank is in its twelfth year of operation, having been established in 2009. Valley Republic Bank is a full-service, community bank with three full-service banking offices in Bakersfield, one full- service banking office in Delano, and a loan production office in Fresno. Valley Republic Bank emphasizes professional, high quality banking services provided to a wide range of businesses and professionals. The Bank also provides a full complement of banking services that are available to individuals and non-profit organizations.
Valley Republic Bancorp and Subsidiary | ||||
(Unaudited. Dollars in thousands, except per share data.) | March 31, 2021 | December 31, 2020 | ||
ASSETS | ||||
Cash and Due From Banks | $ 13,180 | $ 10,585 | ||
Federal Funds Sold & Interest-Bearing Deposits in Banks | 111,343 | 130,141 | ||
Total Cash and Equivalents | 124,523 | 140,726 | ||
Debt Securities | 205,161 | 212,317 | ||
Loans, Net of Deferred Fees and Costs | 987,973 | 849,226 | ||
Allowance for Loan losses | (10,999) | (10,624) | ||
Net Loans | 976,974 | 838,602 | ||
Premises and Equipment | 6,693 | 6,948 | ||
Bank Owned Life Insurance | 13,332 | 13,264 | ||
Interest Receivable and Other Assets | 23,747 | 24,153 | ||
TOTAL ASSETS | $ 1,350,430 | $ 1,236,010 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Liabilities | ||||
Deposits | ||||
Noninterest-Bearing | $ 447,745 | $ 381,733 | ||
Interest-Bearing | 750,286 | 702,140 | ||
Total Deposits | 1,198,031 | 1,083,873 | ||
Short-Term FHLB Borrowing | 5,000 | 5,000 | ||
Long-Term Debt | 39,411 | 39,371 | ||
Accrued Interest Payable and Other Liabilities | 11,521 | 12,652 | ||
Total Liabilities | 1,253,963 | 1,140,896 | ||
Shareholders' Equity | ||||
Common Stock, no Par Value | 48,724 | 48,530 | ||
Additional Paid-in Capital | 914 | 808 | ||
Retained Earnings | 45,850 | 42,143 | ||
Accumulated Other Comprehensive Income (Loss) | 979 | 3,633 | ||
Total Shareholders' Equity | 96,467 | 95,114 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,350,430 | $ 1,236,010 | ||
Book Value per Share | $ 22.84 | $ 22.55 | ||
Valley Republic Bancorp and Subsidiary | ||||
(Unaudited. Dollars in thousands, except per share data.) | Quarters Ended March 31, | |||
2021 | 2020 | |||
INTEREST INCOME | ||||
Loans (Including Fees and Costs) | $ 9,258 | $ 7,385 | ||
Debt Securities | 968 | 1,004 | ||
Other | 21 | 261 | ||
Total Interest Income | 10,247 | 8,650 | ||
INTEREST EXPENSE | ||||
Deposits | 401 | 1,102 | ||
Other | 550 | 300 | ||
Total Interest Expense | 951 | 1,402 | ||
Net Interest Income | 9,296 | 7,248 | ||
Provision For Loan Losses | 375 | 375 | ||
Net Interest Income After Provision for Loan Losses | 8,921 | 6,873 | ||
NON-INTEREST INCOME | ||||
Service Charges and Fees on Deposits | 190 | 150 | ||
Other Non-Interest Income | 328 | 210 | ||
Gain (Loss) on Sale of Securities | - | - | ||
Total Non-Interest Income | 518 | 360 | ||
NON-INTEREST EXPENSE | ||||
Salaries and Employee Benefits | 2,370 | 2,620 | ||
Occupancy & Equipment | 487 | 469 | ||
Other | 1,485 | 1,071 | ||
Total Non-Interest Expense | 4,342 | 4,160 | ||
Income Before Taxes | 5,097 | 3,073 | ||
Income Taxes | 1,389 | 818 | ||
NET INCOME | $ 3,708 | $ 2,255 | ||
Basic Earnings per Share | $ 0.88 | $ 0.54 | ||
Company Website: https://www.valleyrepublic.bank/investor-relations
Forward Looking Statements
This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended and Valley Republic Bancorp and Valley Republic Bank (together, the "Company") intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.
Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.
The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
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SOURCE Valley Republic Bancorp
