River Valley Community Bank reports strong 1st quarter earnings
April 23, 2017
River Valley Community Bank reported strong financial results for the quarter ended March 31.
The Yuba City-based bank has a local branch at 426 Sutton Way, Grass Valley.
Net income for the quarter ended March 31, 2017 was $629,000 or $0.26 per basic share, a rise from the $248,000 or $0.11 per basic share for the quarter ended March 31, 2016 and close to even with $648,000 or $0.27 per basic share for the quarter ended Dec. 31, 2016.
Total assets were $319.4 million as of March 31, 2017, compared to $246.0 million as of March 31, 2016 and $321.2 million as of Dec. 31, 2016.
Net interest income of $2,123,000 for the quarter ended March 31, 2017 increased by $386,000 or 22.2% from $1,737,000 for the quarter ended March 31, 2016 and $65,000 or 3.2% from $2,058,000 for the quarter ended Dec. 31, 2016.
The bank's book value per share was $10.96 per common share as of March 31, 2017 compared to $10.18 as of March 31, 2016 and $10.60 as of Dec. 31, 2016.
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"The bank's strategy to leverage excess capital by purchasing investment securities utilizing both on and off balance sheet liquidity is proving to have a positive impact on net income and return on average equity," said CFO Michael Finn. "The bank remains strong with capital ratios exceeding regulatory requirements."
CEO John M. Jelavich agreed.
"We are very pleased with our strong results for the first quarter of 2017, and believe the Bank remains well positioned for continued success," Jelavich said. "Our strong loan growth is expected to drive growth in our interest income. Furthermore, our bank operates highly efficiently, as measured by our efficiency ratio, which positions us well for addressing market opportunities and in making further investment in our bank's growth."
Jelavich referred to news announced earlier this year that the bank is in the process of forming a holding company.
"Good progress is being made on that initiative," he said. "This new corporate structure will provide us with additional flexibility in our capital management, supports our continued growth, and enhances our ability to serve our markets."