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SCVBank Reports Third Quarter Results.

New high in assets and deposits

Record quarterly revenue achieved

Non-performing assets down by 18.7% for the quarter

SCVBank named Best Bank in the Santa Clarita Valley

SANTA PAULA, Calif. -- Santa Clara Valley Bank (SCVBank) (OTCBB:SCVE) today announced its 2009 third quarter financial results.

SCVBank reported record quarterly revenue of $2,042,000 for the third quarter of 2009, an increase of 7.8%, or $148,000, over the $1,894,000 of revenue in the third quarter of 2008. The increase in revenues is a function of the growth in the Bank's loan portfolio and positive performance by its investment portfolio.

Net interest income for the quarter was also at an all time high of $1,393,000 versus $1,264,000 for the same quarter in 2008. This represents an increase of $129,000 or 10.2%.

SCVBank's net interest margin has been on a steadily positive trend since April. The margin equaled 4.2% for the quarter.

President and CEO Michael D. Hause noted, "We've been working hard to increase our core income by prudently growing our loan portfolio, reducing our deposit expenses and lowering overhead wherever possible."

SCVBank recorded a net loss for the third quarter 2009 of $97,000 compared to a net profit of $165,000 for the period a year earlier. The reduction in net income occurred primarily due to a $562,000 addition to the allowance for loan losses, as a result of loans being adversely affected by the recession and its effect on collateral values. The Bank reported a profit of $73,000 in the second quarter of 2009. Net income per share (basic) available to common shareholders, after preferred stock dividends, was ($0.13) for the third quarter 2009, compared to $0.15 for the same period 2008.

For the nine month period ending September 30, 2009, the Bank has reported a loss of $491,000. This compares to a profit of $421,000 for the same period in 2008.

The primary cause of the year-to-date loss was the loan loss provision recorded during the year to offset loan charge-offs as the recession adversely affected several loans.

SCVBank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 10.11% at quarter end, well above the regulatory guideline of 5% for well capitalized institutions.

The Bank's total assets as of September 30, 2009 were $142.2 million, a 17.5% increase over year-end 2008. During the same period, deposits increased 21.4%, totaling $121,428,000 as of the end of the third quarter, improving the Bank's liquidity. Mr. Hause stated, "SCVBank's customer base continues to grow. The number of accounts the Bank holds increased 8% over the nine month period. Our commitment to customer service was recognized as SCVBank was recently named the Best Bank in the Santa Clarita Valley by The Signal newspaper. SCVBank's designation as the "2009 Best Bank" will be prevalent on all marketing and promotional materials over the next 12 months."

"We at Santa Clara Valley Bank are very proud of our continuing commitment to our customers and communities. During this turbulent year, we have consistently added scores of customers to our base, who enjoy access to our executive management, and learn what relationship banking is all about." stated Chairman Ralph De Leon.

Mr. Hause reported, "We are striving to reduce the current level of non-performing assets. While this effort takes time, we are pleased to report that during the third quarter, the Bank's non-performing assets decreased by 18.7%."

ABOUT SANTA CLARA VALLEY BANK (SCVBank)

Founded in 1998, SCVBank currently operates three branches in Santa Paula, Fillmore, and Valencia. Under its stock symbol of SCVE.OB, SCVBank's stock is traded through McAdams Wright Ragen, Howe Barnes Hofer & Arnett, and Monroe Securities. The Bank's web site is www.SCVBank.com.
Santa Clara Valley Bank Corporate Headquarters










901 East Main Street










Santa Paula, California 93060










805-525-7847


Statements concerning future performance, developments or events concerning expectations for growth and market 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, the effect of interest rate changes, the ability to control costs and expenses, the impact of consolidation in the banking industry, financial policies of the United States government, and general economic conditions.
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Publication:Business Wire
Article Type:Financial report
Geographic Code:1U9CA
Date:Oct 21, 2009
Words:741
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