River Valley Community Bank reports strong earnings | TheUnion.com
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River Valley Community Bank reports strong earnings

River Valley Community Bank reported strong earnings and growth strategies in 2013.

The bank reported unaudited earnings of $333,569 or $0.19 basic earnings per share for the period ending March 31. This compares to $335,728 or $0.20 per share earned in the first quarter of 2012.

The bank, which opened in Yuba City in June 2006, has now posted 23 consecutive profitable quarters.



Total Assets and Deposits were $158,500,064 and $137,876,185, up 10 percent and 11 percent, respectively, from March 31, 2012, and non-interest bearing deposits were up 27 percent.

Gross loans grew 8 percent to $53,964,582, while credit quality remained strong based on all measurements.




Equity increased 6 percent from the prior year period to $19,631,798, again driven by retained earnings.

Book value per share increased to $11.43 per share from $10.76 at the end of the prior year period.

Net interest income declined 6 percent to $1,091,280 from March 31, 2012, as a result of the compression of net interest margin to 3.13 percent from 3.51 percent a year ago.

Return on average equity and return on average assets were 6.89 percent and .87 percent, respectively, compared to 7.3 percent and .95 percent in last year’s first quarter.

“While pleased with the overall results, the continued margin compression clearly affected earnings results,” said River Valley Community Bank President and CEO John I. Jelavich. “During the quarter, we experienced an unusually high level of earning asset pricing adjustments. While we believe these adjustments will moderate, we expect NIM to be a concern until the economy heals.

“We continue to adjust to the current interest rate environment every step of the way. Competition remains fierce for quality loans, and we are actively competing for them. During the first quarter, we were very successful in adding new, meaningful relationships to our growing list of satisfied clients.”


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