River Valley Community Bancorp Announces 1ˢᵗ Quarter Results (Unaudited)

Yuba City, California, UNITED STATES


YUBA CITY, Calif., April 20, 2021 (GLOBE NEWSWIRE) -- River Valley Community Bancorp (OTC markets: RVCB) with its wholly owned subsidiary, River Valley Community Bank (collectively referred to as the “Bank”), today announced financial results for the quarter ended March 31, 2021.

Consolidated financial highlights:

  • Total assets ended the quarter at $506.9 million as of March 31, 2021 compared to $496.5 million as of
    December 31, 2020 and $468.7 million as of March 31, 2020. 
  • Net income for the quarter ended March 31, 2021 totaled $1.2 million or $0.51 per diluted share compared to $1.4 million or $0.57 per diluted share for the quarter ended December 31, 2020 and $748,000 or $0.31 per diluted share for the quarter ended March 31, 2020.
  • Net interest income totaled $3.8 million for the quarter ended March 31, 2021 compared to $3.9 million for the quarter ended December 31, 2020 and $3.2 million for the quarter ended March 31, 2020.
 
Selected Consolidated Financial Information - Unaudited
(dollar amounts in thousands, except per share data)
 
  As of
  Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, 
  2021  2020  2020  2020  2020 
                
Total investment securities $  169,698  $  168,939  $  181,460  $  180,043  $  176,005 
Total loans, gross 258,504  257,740  263,621  261,631  206,026 
Allowance for loan losses (3,362) (3,470) (3,518) (3,518) (2,768)
Total assets 506,850  496,487  531,065  514,768  468,714 
Total deposits 457,938  445,162  400,774  387,378  342,172 
Borrowings -  -  80,000  80,000  85,000 
Total shareholders' equity 45,717  46,782  45,731  43,195  39,047 
                
Loan to deposit ratio 56%  58%  66%  68%  60%
Book value per common share $      18.95  $      19.60  $      19.16  $      18.24  $      16.57 
Subsidiary Bank's Tier 1 leverage ratio 8.20%  8.01%  7.36%  7.35%  7.92%
                

Total gross loans were $258.5 million as of March 31, 2021, which represents an increase of $764,000 or 0.3% from $257.7 million as of December 31, 2020.  When excluding PPP loans, the Bank experienced loan growth of $3.7 million or 1.7% (6.9% annualized) since December 31, 2020.  For the quarter ended March 31, 2021, $16.3 million of the $56.4 million of PPP loans originated in 2020 had been forgiven with full payments received from the Small Business Administration.  Total deposits of $457.9 million as of March 31, 2021 represent an increase of $12.8 million or 2.9% (11.5% annualized) from $445.2 million as of December 31, 2020 and an increase of $115.8 million or 33.8% from March 31, 2020.  As of March 31, 2021, the Bank’s non-performing assets totaled $234,000.

 
Selected Consolidated Financial Information - Unaudited (continued)
(dollar amounts in thousands, except per share data)
 
  For the Quarter Ended
  Mar 31,  Dec 31,  Sep 30,  Jun 30,  Mar 31, 
  2021  2020  2020  2020  2020 
                
Total interest income $      3,988  $      4,087  $      3,933  $      3,945  $      3,977 
Total interest expense 160  228  366  447  733 
Net interest income 3,828  3,859  3,567  3,497  3,244 
Provision for loan losses -  -  -  750  250 
Total noninterest income 276  1,617  322  131  1,189 
Total noninterest expense 2,388  3,553  2,081  2,039  3,142 
Net income 1,245  1,405  1,324  652  748 
                
Earnings per share - basic $         0.52  $         0.59  $         0.56  $         0.28  $         0.32 
Earnings per share - diluted $         0.51  $         0.57  $         0.54  $         0.27  $         0.31 
Net interest margin 3.26% 3.24% 2.85% 2.92% 3.00%
Net interest margin - tax equivalent 3.31%  3.29%  2.90%  2.97%  3.03%
Efficiency ratio 59.49%  87.72%  53.51%  56.18%  92.52%
Return on average assets 1.01%  1.13%  1.02%  0.52%  0.66%
Return on average equity 10.76%  12.18%  11.69%  6.45%  7.59%

Net interest income of $3.8 million for the quarter ended March 31, 2021 is an increase of $583,000 or 18.0% from the quarter ended March 31, 2020 and a decrease of $31,000 or 0.8% (3.2% annualized) from the quarter ended
December 31, 2020.  The quarter-over-quarter decrease is primarily attributable to a reduction in loan fees recognized upon the forgiveness of PPP loans.

CEO John M. Jelavich stated, “We are off to a great start in 2021 and are pleased with our first quarter results.  During the quarter, we saw continued strength in our loan pipeline and solid deposit growth.  Over the past year, not only have our deposits grown significantly, but our deposit mix also improved which assists in lowering our overall funding costs.  During the quarter, we also saw longer term interest rates increase with the improved outlook for the economy.  Increasing rates have reduced some of the unrealized gains in our investment securities portfolio from year-end, however longer-term, moderately increasing rates and a sustained positive sloping yield curve should be beneficial for our margins and earnings.”

Jelavich continued, “During the first quarter, we made significant strides in positioning the bank for the future by completing a major core system and online banking upgrade.  We believe our investment in technology will serve the Bank and our customers well and I am very proud of our amazing banking team for their tireless efforts in the conversion process.”

“Last, I would like to acknowledge Michael Finn who has done a fantastic job serving as the Bank’s Chief Financial Officer over the last five years.  Michael departed the Bank last week to pursue a new angle on his career.  With the advance notice Michael gave, we have been able to get a good start on recruitment and hope to announce a new CFO joining the RVCB team soon,” Jelavich concluded.

The Bank remains highly rated with BauerFinancial, Depositaccounts.com and Bankrate and serves its customer base through its offices located at:

  • 1629 Colusa Avenue, Yuba City, CA
  • 580 Brunswick Rd, Grass Valley, CA
  • 905 Lincoln Way, Auburn, CA
  • 904 B Street, Marysville, CA

The Bank offers a full suite of competitive products, services, and banking technology. For more information please visit our website at www.myrvcb.com or contact John M. Jelavich at (530) 821-2469.

Forward Looking Statements: This document may contain comments and information that constitute forward‐looking statements.  Forward‐looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements.  Forward‐looking statements speak only as to the date they are made. The Bank does not undertake to update forward‐looking statements to reflect circumstances or events that occur after the date the forward‐looking statements are made.