MECHANICSVILLE, Va., Feb. 11, 2008 (PRIME NEWSWIRE) -- River City Bank (Nasdaq:RCBK) (the "Bank") (2007 year-to-date results unaudited) reported today asset growth for the twelve months ended December 31, 2007 of $35.5 million, which represents a 41% increase over total assets at December 31, 2006. For year-end 2007, the Bank recorded total assets of $121.9 million, compared to $86.4 million at December 31, 2006. The Bank also reported a net loss for the same twelve month period of $(438,230) or $(0.24) per share (basic and diluted), a 52.4% increase over the loss of $(287,469) or $(0.16) per share (basic and diluted) for the previous twelve month period ended December 31, 2006.
The Bank's President and Chief Executive Officer William D. Stegeman commented, "Our Bank continued its trend of aggressive balance sheet growth in 2007. In particular, outstanding loan balances grew considerably above budget projections. Conversely, the growth in loans had a material impact to our profit and loss statement due to the need for increasing our allowance for possible loan loss. The Bank also carried an impaired loan for the first six months of the year, and in resolving the loan deficiency through foreclosure and auction of property securing the debt, the Bank took a charge to our loan loss reserve of approximately $200,000 in the second half of the year. For 2007, the Bank expensed $565,000 for its provision for possible loan loss, compared to $210 in 2006. In looking forward, our focus in 2008 will be to achieve strong balance sheet growth, maintain sound asset quality, control costs, and reach profitability for the year."
Asset growth was realized primarily from loan demand during the year. The Bank increased outstanding loans from $59.9 million at December 31, 2006 to $95.8 million at December 31, 2007, an increase of 60.2%. Mr. Stegeman further commented, "Our loan growth demonstrates management's continued commitment to originate loans in the central Virginia marketplace, utilizing a resilient local economy with dynamic funding sources to maintain loan volumes as a high percentage of total assets and deposits."
The Bank recorded total deposits at December 31, 2007 of $104.5 million, compared to total deposits of $70.5 million at December 31, 2006, an increase of 48.2%. Growth occurred in each of the bank's deposit categories. At December 31, 2007, total transaction deposit accounts amounted to $20.4 million compared to $16.5 million at December 31, 2006, an increase of 23.6%. For the same comparative period, non transaction accounts grew from $53.9 million as of December 31, 2006 to $84.2 million at December 31, 2007, an increase of 56.2%. The increase in deposits is attributed to the Bank's numerous marketing initiatives implemented during the year, as well as aggressively pursuing deposits in the Bank's trade area due to exceptional loan demand.
The Bank's net interest income increased from $2,887,949 for the twelve month period ended December 31, 2006 to $3,649,946 for the period ended December 31, 2007, an increase of $761,997 or 26.4%. Net interest income increased despite a decrease in the Bank's net interest margin, which decreased 54 basis points from 4.02% for the twelve months ended December 31, 2006 to 3.48% for the same period ended December 31, 2007.
Non interest income increased from $284,369 for the period ended December 31, 2006 to $362,980 for the period ended December 31, 2007, an increase of 27.6%. The increase is primarily attributable to fees derived from increased mortgage origination volume as well as revenue from the Bank's investment in a title insurance company.
River City Bank currently operates three banking locations, two of which are located in Mechanicsville, and a third banking office in Highland Springs.
The River City Bank logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4049
Selected financial (unaudited) information:
This press release contains forward-looking statements as defined by federal securities laws. These statements may address certain results that are expected or anticipated to occur or otherwise state the company's predictions for the future. These particular forward-looking statements and all other statements that are not historical facts are subject to a number of risks and uncertainties, and actual results may differ materially. Such factors include but are not limited to: general economic conditions; significant fluctuations in interest rates that could reduce the net interest margin; difficulties in executing integration plans; reduction of fee income from existing products due to market conditions; and the amount of growth in the company's general administrative expenses. Consequently, these cautionary statements qualify all forward-looking statements made herein.
River City Bank
Balance Sheets December 31,
(December 31, 2007 unaudited) 2007 2006
------------- -------------
(Unaudited)
Cash and due from banks $ 1,330,977 $ 1,009,353
Federal funds sold 631,052 4,193,998
------------- -------------
Total cash and cash equivalents 1,962,029 5,203,351
------------- -------------
Securities available-for-sale,
at fair value 21,343,191 17,824,532
Certificates of deposit 1,591,000 2,082,000
Loans, net of allowance for loan
losses of $977,156 for 2007
and $605,000 for 2006 94,802,342 59,257,336
Bank premises and equipment, net 932,557 1,038,443
Accrued interest receivable 682,207 486,275
Restricted Federal Reserve
Bank stock, at cost 470,650 470,650
Other assets 110,743 89,304
------------- -------------
Total assets $121,893,719 $ 86,451,891
============= =============
Liabilities and Stockholders' Equity
Deposits
Demand $ 7,572,030 $ 8,090,229
NOW and money market 12,789,237 8,445,302
Savings 31,706,989 21,398,358
Time 52,467,092 32,572,034
------------- -------------
Total deposits 104,535,491 70,505,923
------------- -------------
Federal funds purchased 1,301,000 --
Accrued interest payable 449,460 294,557
Other liabilities 109,363 106,036
------------- -------------
Total liabilities 106,395,314 70,906,516
------------- -------------
Stockholders' equity
Preferred stock, $5 par value.
Authorized 10,000,000 shares; none
issued and outstanding -- --
Common stock, $5 par value. Authorized
17,000,000 shares; issued and
outstanding 1,801,178 shares at
December 31, 2007 and 1,800,178 at
December 31, 2006 9,005,890 9,000,890
Additional paid-in-capital 8,832,927 8,827,477
Accumulated deficit (2,512,209) (2,073,979)
Accumulated other comprehensive loss 171,797 (209,013)
------------- -------------
Total stockholders' equity 15,498,405 15,545,375
------------- -------------
Total liabilities and
stockholders' equity $121,893,719 $ 86,451,891
============= =============
STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME
(LOSS)
Three Months Ended Twelve Months Ended
(Unaudited) December 31 December 31
2007 2006 2007 2006
----------- ----------- ----------- -----------
Interest income
Interest and
fees on loans $1,824,505 $1,162,110 $6,432,243 $4,013,063
Interest on
securities:
U.S. Government
agencies 233,899 167,257 917,426 526,752
Mortgage-backed
securities 58,987 28,348 164,862 110,791
Interest on
certificates
of deposit 23,537 31,414 89,840 122,992
Interest on
federal funds sold 23,117 118,558 223,660 328,666
----------- ----------- ----------- -----------
Total interest
income 2,164,045 1,507,687 7,828,031 5,102,264
----------- ----------- ----------- -----------
Interest expense
Interest on
deposits 949,867 554,928 3,322,680 1,655,172
Interest on time
certificates of
$100,000 and over 234,807 172,242 822,236 558,759
Interest on
federal funds
purchased and
other borrowed
funds 2,226 3 33,169 384
----------- ----------- ----------- -----------
Total interest
expense 1,186,901 727,173 4,178,085 2,214,315
----------- ----------- ----------- -----------
Net interest income 977,145 780,514 3,649,946 2,887,949
Provision for
loan losses 565,000 210,000 565,000 210,000
----------- ----------- ----------- -----------
Net interest income
after provision
for loan losses 2,649,946 2,537,949 3,084,946 2,677,949
----------- ----------- ----------- -----------
Noninterest income
Mortgage fee income 46,021 50,473 203,377 168,433
Gain (loss) on sale
of securities 4,380 (3,502) 4,380 (3,502)
Other 38,181 36,977 155,223 119,438
----------- ----------- ----------- -----------
Total noninterest
income 88,582 83,948 362,980 284,369
----------- ----------- ----------- -----------
Noninterest expense
Salaries and
employee benefits 463,403 427,157 1,794,940 1,453,132
Occupancy expense
and depreciation 145,925 139,165 580,752 529,711
Advertising 75,114 82,196 187,742 205,656
Office supplies
and
telecommunications 75,993 68,834 181,755 181,030
Professional fees 116,130 87,896 417,902 366,630
Data processing
fees 98,413 74,871 356,855 283,279
Credit expense 20,148 (24,017) 79,126 66,601
Education and
training expense 11,680 5,091 30,779 18,664
Other operating
expenses 79,865 45,980 256,305 145,084
----------- ----------- ----------- -----------
Total noninterest
expense 1,086,671 907,173 3,886,156 3,249,787
----------- ----------- ----------- -----------
Loss before income
tax expense (150,944) (112,711) (438,230) (287,469)
Income tax expense -- -- -- --
----------- ----------- ----------- -----------
Net loss (150,944) (112,711) (438,230) (287,469)
Other comprehensive
loss:
Net unrealized gain
(loss) on
securities
available-for-sale 289,684 (28,755) 380,810 (29,408)
----------- ----------- ----------- -----------
Comprehensive gain
(loss) $ 138,740 $ (141,466) $ (57,420) $ (316,877)
=========== =========== =========== ===========
Per share data:
Loss per share,
basic and diluted $ (0.08) $ (0.06) $ (0.24) $ (0.16)
=========== =========== =========== ===========