Valley Bancorp Q1 '06 Earnings up 50%.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- Valley Bancorp (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : VLLY): HIGHLIGHTS --First quarter earnings of $1,634,000, up 50% from $1,092,000 in 1st quarter 2005. --First quarter earnings per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share of $0.55 up 49% from 1st quarter 2005. --ROE and ROA ROA See: Return on assets ROA See: Right of accumulation ROA See return on assets (ROA). of 15.17% and 1.63% respectively in 1st quarter 2006. --Total loans increased $103 million, up 46% from 1st quarter 2005. Valley Bancorp (NASDAQ: VLLY), the holding company for Valley Bank, today announced net income of $1,634,000 for the quarter ended March 31, 2006, a 50% increase from net income of $1,092,000 for the first quarter of 2005. Earnings per diluted share were $0.55 for the first quarter of 2006 as compared to $0.37 for the same period last year. Return on average assets and return on average equity for the quarter ended March 31, 2006, were 1.63% and 15.17% as compared to 1.51% and 11.86% for the same period in 2005, respectively. Valley Bancorp's total assets grew $96.6 million or 31%, to $407.7 million at March 31, 2006, as compared to $311.1 million at March 31, 2005. At March 31, 2006, Valley Bancorp's total net loans were $325.7 million, total deposits were $346.0 million, and stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. was $43.5 million. Barry Barry, Welsh Barri, town (1991 pop. 45,053) and port, Vale of Glamorgan, S Wales, on the Bristol Channel. Once a major coal-exporting port, its more diversified export products include cement, flour, and steel products. L. Hulin
Hulin (Chinese: 虎林 "tiger forest") is a city with a population of around 200,000 in Heilongjiang province, China. , president and chief executive officer of Valley Bancorp, stated, "This quarter represents a solid start to the year. The southern Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). economy remains strong and we continue to execute To run a program, which causes the computer to carry out its instructions. See executable code, instruction and EXE file. execute - execution on our plan."
Financial Performance Indicators for the Three Months Ended
March 31, 2006 and 2005
(Dollars in thousands, except per share data)
(Unaudited)
At March 31, Change
--------------------- ------------------
2006 2005 $ or # %
---------- ---------- --------- --------
Balance Sheet:
Loans net of Unearned Fees $328,986 $225,256 $103,730 46.05%
Allowance for Loan Losses (3,289) (2,248) (1,041) 46.31%
---------- ---------- ---------
Loans, net 325,697 223,008 102,689 46.05%
Total Assets 407,688 311,104 96,584 31.05%
Total Earning Assets 389,112 297,644 91,468 30.73%
Total Investments 63,415 74,585 (11,170) -14.98%
Total Deposits 346,017 271,726 74,291 27.34%
Total Borrowed Funds 15,415 457 14,958 3273.09%
Total Liabilities 364,179 274,026 90,153 32.90%
Total Stockholders' Equity 43,509 37,078 6,431 17.34%
Common Shares Outstanding 2,827,881 2,794,748 33,133 1.19%
Book Value per Share $15.39 $13.27 $2.12 15.97%
Allowance for Loan Losses to
Total Loans 1.00% 1.00% 0.00%
Total Stockholders' Equity to
Total Assets 10.67% 11.92% -1.25%
Total Loans to Total Deposits
& Borrowed Funds 90.11% 81.93% 8.18%
Three Months Ended
March 31, Change
--------------------- ------------------
2006 2005 $ or # %
---------- ---------- --------- --------
Income Statement:
Interest Income $7,413 $4,462 $2,951 66.14%
Interest Expense 2,440 1,089 1,351 124.06%
---------- ---------- ---------
Net Interest Income 4,973 3,373 1,600 47.44%
Provision for Loan Losses 227 51 176 345.10%
Non-interest Income 61 75 (14) -18.67%
Non-interest Expense 2,331 1,741 590 33.89%
---------- ---------- ---------
Income before Income Taxes 2,476 1,656 820 49.52%
Income Tax Expense 842 564 278 49.29%
---------- ---------- ---------
Net Income $1,634 $1,092 $542 49.63%
========== ========== =========
Basic Earnings Per Share $0.58 $0.39 $0.19 48.72%
Diluted Earnings Per Share $0.55 $0.37 $0.18 48.65%
Weighted Average Shares -
Basic 2,827,832 2,790,792 37,040 1.33%
Weighted Average Shares -
Diluted 2,966,593 2,953,762 12,831 0.43%
Average Total Assets $401,163 $288,656 $112,507 38.98%
Average Earning Assets 384,542 275,455 109,087 39.60%
Average Stockholders' Equity 43,099 36,840 6,259 16.99%
Net Interest Margin (1) 5.24% 4.97% 0.27%
Return on Assets (1) 1.63% 1.51% 0.12%
Return on Equity (1) 15.17% 11.86% 3.31%
Non-interest Expense to
Average Earning Assets (1) 2.42% 2.53% -0.11%
Efficiency Ratio 46.30% 50.49% -4.19%
Full Time Equivalent Employees 72 53 19 35.85%
------------------------------
(1) Annualized
Net Interest Income and Net Interest Margin Net interest income increased by $1.6 million or 47.4% to $5.0 million for the first quarter of 2006 as compared to $3.4 million in the first quarter of 2005. This increase was primarily the result of higher interest income from loans and other earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin due to increased outstanding totals as well as an improved interest margin. Valley Bancorp average earning assets increased by $109.1 million or 39.6% to $384.5 million for the quarter ended March 31, 2006, as compared to $275.4 million for the first quarter of 2005. The net interest margin for the quarter ended March 31, 2006, increased to 5.24% as compared to 4.97% for the same period in 2005. Rising interest rates and increasing loans outstanding contributed to this improved net interest margin.
Distribution of Assets, Liabilities and Stockholders' Equity;
Interest Rates and Interest Differential
(Unaudited)
Three Months Ended March 31,
-----------------------------------------------------
2006 2005
-------------------------- --------------------------
Average Average
Average Interest Yield/ Average Interest Yield/
Balance Income/ Cost Balance Income/ Cost
(1) Expense (2) (1) Expense (2)
--------- -------- ------- --------- -------- -------
Assets (Dollars in thousands)
Earning assets:
Loans (3)(4)
(5) $307,957 $6,614 8.71% $208,302 $3,931 7.65%
Federal funds
sold (6) 32,182 358 4.51% 19,627 121 2.50%
Interest bearing
deposits (6) 8,916 98 4.46% 9,104 56 2.49%
Investment
securities (6) 35,487 343 3.92% 38,422 354 3.74%
--------- -------- --------- --------
Total earning
assets and
interest income 384,542 7,413 7.82% 275,455 4,462 6.57%
Non-interest
earning assets:
Cash and due
from banks 9,991 7,622
Premises and
equipment 7,342 5,799
Other assets 2,350 2,024
Allowance for
credit losses (3,062) (2,244)
--------- ---------
Total assets $401,163 $288,656
========= =========
Liabilities and
Stockholders'
Equity
Interest bearing
liabilities:
Interest bearing
demand deposits $96,004 $405 1.71% $73,194 $213 1.18%
Savings deposits 17,162 81 1.91% 12,620 18 0.58%
Time deposits
$100,000 or
more 85,792 869 4.11% 50,393 324 2.61%
Other time
deposits 90,554 925 4.14% 71,628 526 2.98%
Long-term
borrowings 15,422 160 4.21% 463 8 7.01%
--------- -------- --------- --------
Total interest
bearing
liabilities 304,934 2,440 3.25% 208,298 1,089 2.12%
Noninterest-
bearing
liabilities:
Demand deposits 51,117 42,495
Other
liabilities 2,013 1,023
Stockholders'
equity 43,099 36,840
--------- ---------
Total
liabilities and
stockholders'
equity $401,163 $288,656
========= =========
Net Interest
Spread (7) 4.57% 4.45%
-------- --------
Net interest
income/margin
(8) $4,973 5.24% $3,373 4.97%
======== ======= ======== =======
--------------------------
(1) Average balances are obtained from the best available daily data.
(2) Annualized.
(3) Loans are gross of allowance for credit losses but after unearned
fees.
(4) Non-accruing loans are included in the average balances.
(5) Fee income is included in interest income.
(6) All investments are taxable.
(7) Represents the difference between the yield on interest-earning
assets and the cost of interest-bearing liabilities
(8) Net interest margin represents net interest income as a
percentage of average interest-earning assets.
Provision for Loan Losses and Related Allowance for Loan Losses The provision for loan losses was $227,000 for the quarter ended March 31, 2006, as compared to $51,000 for the same period in 2005. The allowance for loan losses of $3.3 million at March 31, 2006, reflected management's assessment of the current risk in the loan portfolio and represented 1.00% of total loans. Valley Bancorp had only one non-accrual loan of $100,000 as of March 31, 2006. There were no loans past due 90 days or more as of March 31, 2006. Non-interest Income and Non-interest Expense Non-interest income was $61,000 for the quarter ended March 31, 2006, as compared to $75,000 for the same period in 2005. The decrease of $14,000 was due primarily to write-offs on some minor office equipment dispositions. Non-interest expense was $2.3 million for the quarter ended March 31, 2006, an increase of $590,000 over the same period in 2005. The increase primarily resulted from a combination of the following: increased compensation and employee benefits cost due to increasing staff levels; higher professional fees associated with being a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. ; higher data processing data processing or information processing, operations (e.g., handling, merging, sorting, and computing) performed upon data in accordance with strictly defined procedures, such as recording and summarizing the financial transactions of a expenses due to increased number of accounts and transactions being processed; higher marketing and advertising costs; higher occupancy Gaining or having physical possession of real property subject to, or in the absence of, legal right or title. In a fire insurance policy, for example, the term occupancy and related costs associated with the new headquarters and the 4th branch occupied oc·cu·py tr.v. oc·cu·pied, oc·cu·py·ing, oc·cu·pies 1. To fill up (time or space): a lecture that occupied three hours. 2. To dwell or reside in. 3. in the 3rd quarter of 2005, as well as the opening of the 5th branch in the 1st quarter of 2006. Balance Sheet Valley Bancorp's total assets were $408 million at March 31, 2006, an increase of $97 million or 31% from $311 million at March 31, 2005. The increase was due primarily to a $103 million net increase in the loan portfolio, a $4 million decrease in available for sale securities and a $6 million decrease in interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid deposits at other financial institutions. Total deposits increased by $74 million or 27% to $346 million at March 31, 2006, as compared to $272 million at March 31, 2005. Valley Bancorp stockholders' equity increased by $6.4 million or 17% to $43.5 million at March 31, 2006, from $37.1 million at March 31, 2005, due primarily to increased retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. of $6.2 million. About Valley Bancorp Headquartered in Las Vegas, Valley Bancorp is the holding company for Valley Bank, a Nevada state-chartered commercial bank with branches in Las Vegas, Henderson Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. and Pahrump.
Web site: Valley Bancorp's Web site - www.valleybancorp.com
Valley Bank's Web site - www.vbnv.com
This news release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . These statements are subject to a number of uncertainties and risks including, but not limited to, the company's inability to generate increased earning assets, sustain credit losses, maintain adequate net interest margin, control fluctuations in operating results, maintain liquidity to fund assets Fund assets The total value of a portfolio's securities, cash, and other holdings, minus any outstanding debts. , retain key personnel, and other risks detailed from time to time in Valley Bancorp's filings with the Securities and Exchange Commission, including our annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the period ended Dec. 31, 2005. Actual results may differ. |
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