Valley Community Bank, www.vcb-ca.com , a full-service commercial bank serving businesses and their owners throughout Northern California, today announced results for the third quarter. Net gains from the sale of SBA loans totaled over $477,000 for the quarter.

"While under stressful economic times, the Bank continues to produce quality net income even after larger provisions for loan losses. Our asset quality metrics continue to improve and the results are acceptable net earnings so far this year," said Richard P. Loupe, CEO. “While not off the charts, the Bank generated a return on common equity for our shareholders in the third quarter of over 5.17%. We are proud of these results, which are a direct reflection of the quality of our loyal customers."

The Bank reported net income available to common shareholders (unaudited) of $.0.13 per common share for the third quarter of 2010, compared to $0.22 per common share in the third quarter of 2009. For the quarter, the Bank's return on common equity was 5.17%.

Net interest income before provision for loan losses was $2.35 million for the quarter, a slight 1% decrease compared to the third quarter of 2009. Compared to the first nine months of 2009, the Bank increased its loan loss provision / expense by $625,000 or 63% for the first nine months of 2010. Total Allowance for Loan Losses stood at $4.2 million or 2.50% of loans at September 30, 2010 compared to $4.0 million or 2.19% of loans at September 30, 2009. Net interest margin was 4.38% for the quarter, compared to 4.24% for the same quarter of last year.

Total assets at September 30, 2010 were $209.5 million, a decrease of 3.6 % compared to September 30, 2009. From September 2009-September 2010, net loans decreased 9.5% at quarter end. Much of this decrease was the result of borrowers repaying or paying down revolving lines of credit. Even though loans decreased year over year, the Bank established a significant number of new commercial and personal banking relationships in 2010.

Valley Community Bank continues to be well capitalized. As of September 30, 2010 the bank had a Tier 1 leverage capital ratio of 11.45% and a total risk based capital ratio of 14.73%. It continues to maintain a very strong liquidity position with more than 17% of its assets in cash and short term AAA rated investments.

Forward Looking Statements Disclosure: Statements concerning future performance, developments or events, expectations for growth and income 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, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the ability to control costs and expenses, changes in the interest rate environment and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.

Note to Editor: CEO Rick Loupe is available for interviews at (925) 621-7200 or rloupe@vcb-ca.com.
 
VALLEY COMMUNITY BANK
     
BALANCE SHEETS
 
Unaudited Unaudited
Dollar amounts in thousands, except per share data   9/30/2010     9/30/2009
 
ASSETS
Cash & due from banks 19,168 20,507
Fed funds sold 0 0
   

Total Cash and Cash equivalents
19,168 20,507
 
Time deposits with other financial institutions 0 0
Securities available-for-sale 17,311 7,880
Securities held-to-maturity 261 1,061
Federal Home Loan Bank stock 934 966
 
Loans 166,676 183,750
Less allowance for loan losses   (4,167 )   (4,021 )
 
Net Loans 162,509 179,729
 
Bank premises and equipment, net 613 422
Cash surrender value of life insurance policies 2,714 2,612
Accrued interest receivable and other assets 5,988 4,253
 
TOTAL ASSETS   209,498     217,430  
 
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits
Non-interest bearing 36,594 37,983
Interest bearing 141,374 146,112
 
Total Deposits 177,968 184,095
 
Short Term Borrowings 4,105 7,000
Accrued interest payable and other liabilities 2,565 1,534
 
TOTAL LIABILITIES   184,638     192,629  
 
Shareholders' equity
Preferred Stock 5,596 5,541
Common Stock 16,602 16,602
Additional paid in Capital 451 425
Accumulated other comprehensive loss, net of tax 45 18
Retained Earnings   2,166     2,215  
 
Total shareholders' equity   24,860     24,801  
 

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  209,498     217,430  
 
Common Shares outstanding for each period: 1,878,866 1,878,866
Book value per Common share $ 10.25 $ 10.25
 
 
VALLEY COMMUNITY BANK
           
INCOME STATEMENTS
 
Dollar amounts in thousands, except per share data   Unaudited3 Mos.Ending9/30/2010   Unaudited3 Mos.Ending9/30/2009   %change   Unaudited9 mosEnding9/30/2010   Unaudited9 mosEnding9/30/2009   %change
 
Interest Income:
Interest and fees on loans 2,700 2,904 -7 % 8,374 8,764 -4 %
Interest on federal funds sold 0 7 -100 % 0 13 -100 %
Interest on investment securities 74 59 25 % 221 177 25 %
Interest on deposit in banks   26       4     550 %     61       42     45 %
Total Interest Income 2,800 2,974 -6 % 8,656 8,996 -4 %
 
Interest Expense:
Interest on deposits 431 523 -18 % 1,417 1,781 -20 %
Interest on short-term borrowings   19       69     -72 %     65       339     -81 %
Total Interest Expense 450 592 -24 % 1,482 2,120 -30 %
 
Net interest income before provision for loan loss 2,350 2,382 -1 % 7,174 6,876 4 %
 
Provision for Loan Loss   725       300     142 %     1,625       1,000     63 %
 
Net interest income after provision for loan loss 1,625 2,082 -22 % 5,549 5,876 -6 %
 
Non-interest income:
Service charges 74 85 -13 % 248 247 0 %
Gain on sale of government guaranteed loans 477 313 52 % 597 868 -31 %
Loan servicing income 171 113 51 % 426 251 70 %
Other income   69       61     13 %     191       182     5 %
Total non-interest income 791 572 38 % 1,462 1,548 -6 %
 
Other expenses
Salaries and employee benefits 967 1,071 -10 % 3,229 3,388 -5 %
Occupancy and equipment 324 232 40 % 708 682 4 %
Other   560       458     22 %     1,659       1,459     14 %
Total other expenses 1,851 1,761 5 % 5,596 5,529 1 %
 
Income before provision for income taxes 565 893 -37 % 1,415 1,895 -25 %
 
Provision for income taxes   227       389     -42 %     567       833     -32 %
 
Net income (Loss) 338 504 -33 % 848 1,062 -20 %
 
Dividends and discount accretion on preferred stock   (89 )     (89 )   0 %     (267 )     (257 )   N/A  
 
Net Income available to Common shareholders   249       415     -40 %     581       805     -28 %
 
Earnings Per Basic Share $ 0.13 $ 0.22 $ 0.31 $ 0.43
Earnings Per Diluted Share $ 0.13 $ 0.22 $ 0.31 $ 0.43

Copyright Business Wire 2010

More from Press Releases

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

NFL Pushes for Regulation Following Supreme Court's Sports Gambling Ruling

21st Century Fox Scoops Up Local News Stations

21st Century Fox Scoops Up Local News Stations

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Walmart CEO: 'We Are Transforming Globally' With Flipkart

Three-Part FREE Webinar Series

Three-Part FREE Webinar Series

March 24 Full-Day Course Offering: Professional Approach to Trading SPX

March 24 Full-Day Course Offering: Professional Approach to Trading SPX