Danville Based Diablo Valley Bank Reports Record Earnings and Asset Growth in 2005.ALAMO Alamo Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. , Calif. -- Diablo Valley Bank (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :DBVB), which opened in October 2003, today announced record profitability and asset growth in 2005. At the end of its second full year of operations, the Bank posted net income of $2,353,209, or $0.88 per share compared to a net loss of ($2,102,318) or ($0.85) per share in 2004. As a result of the Bank's focus on relationship driven growth, total assets ended the year at $193 million, a $66 million or 53% increase over the prior year, while total loans were up by $53 million to $146 million, an increase of 57%. Total deposits ended the year at $166 million, for an increase of $57 million or 53% over the prior year. Jim Mayer, the Bank's President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , stated "our ability to deliver responsive, tailored solutions for our clients has greatly enhanced the Bank's reputation and helps to perpetuate our relationship based business model." With the $2.4 million in net income, which included an $878 thousand tax benefit, and a successful offering of Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". , total shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. gained nearly $9 million dollars, ending the year at $21.7 million, an increase of 68%. In June, the Bank successfully sold $6.5 million of its 5% Perpetual Cumulative Convertible Preferred stock at $32.00 per share. Quarterly dividends paid during 2005 on the Preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. were $0.40 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. and were paid on September 30 and December 31, 2005. The Bank also received approval from the Town of Danville to begin construction of its 8,600 square foot Branch and Administrative office on Diablo Road at the old Coco's Restaurant location. Chairman of the Board, John J. Hounslow, stated that "we anticipate it will take approximately one year to complete this project and we eagerly await the opportunity to relocate our Danville and Alamo operations into the new building." Diablo Valley Bank is the East Bay's independent commercial bank dedicated to serving the banking and financing needs of successful entrepreneurs, their families, business ventures and real estate investments. The Bank has professional bankers strategically positioned at offices in Danville and Pleasanton and offers additional depository access with internet-based cash management products, its courier service and correspondent relationships with money center banks Money center banks Banks that raise most of their funds from the domestic and international money markets , relying less on depositors for funds. . For more information on Diablo Valley Bank, contact John Hounslow, 925-314-2801, jhounslow@diablovalleybank.com, or visit the Bank's website at www.diablovalleybank.com. Certain statements contained herein may be "forward looking statements" within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward looking statements may be identified by reference to a future period or periods or by the use of forward looking terminology such as "may," "believes," "intends," "expects," and "anticipates" or similar terms or variations of these terms. Our actual results may differ materially from those set forth in forward looking statements as a result of certain risks and uncertainties, including but not limited to, changes in political and economic conditions, interest rate fluctuations, competitive product and pricing pressures, equity and bond market fluctuations, credit risk, inflation, as well as other risks and uncertainties incident to our business. |
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