Pacific Valley Bancorp Announces Its Second Quarter 2024 Financial Results
FINANCIAL HIGHLIGHTS:
- Net income for the quarter ended
June 30, 2024 , was$1.0 million , a decrease of 15.7% or$189 thousand from the quarter endedMarch 31, 2024 . The decrease was primarily the result of higher deposit interest expense and lower fed funds interest income, partially offset by higher loan interest income. Basic earnings per share for the quarter was$0.21 compared to$0.24 per share for the prior quarter. - Net income for the six months ended
June 30, 2024 was$2.2 million , a decrease of 8.5% or$206 thousand from the six months endedJune 30, 2023 . As was the case for the quarter, higher deposit interest expense and lower fed funds interest income were partially offset by higher loan interest income. - Net interest margin for the second quarter
June 30, 2024 was 3.32% compared with 3.45% for the same period in 2023. The decrease is primarily the result of higher interest expense. - Net interest margin for the six months ended
June 30, 2024 was 3.45% compared with 3.54% for the same period in 2023. The decrease is primarily the result of higher interest expense. - Gross loans outstanding grew by 11.0% or
$45.1 million fromJune 30, 2023 toJune 30, 2024 , primarily as a result of increased CRE loans. - Non-Performing loans to gross loans for the quarter ended
June 30, 2024 , was 0.22% compared to 0.24% as ofJune 30, 2023 . - The Bank subsidiary's Community Bank Leverage Ratio has been consistently strong. As of
June 30, 2024 the ratio was 13.75%, compared to 13.48% onMarch 31, 2024 , and 12.60% onJune 30, 2023 . The regulatory requirement for this ratio is 9.00%.
"The Company results for the second quarter of 2024 showed the continuing impact of rising interest expense as we experienced declines in our net interest margin and net income. Loans have grown 11% over the prior year quarter which will contribute to future profitability. While the cost of funds for the second quarter increased to 2.36% compared to 2.14% in the first quarter, we have maintained cost controls and kept non-interest expense to average assets below 2.50%," said
"Changes in our market resulting from the acquisitions of competitor banks present opportunities for growth. We have increased loan and deposit production and support personnel to meet these opportunities and will be increasing our spending on marketing. These investments will reduce current net income, but we believe they will lead to greater profitability in the long term. I am excited about the Company's prospects as our market changes. Our deposits increased
"Our liquidity position remains strong, as our primary liquidity ratio (cash, deposits held in other banks and securities as a percentage of total assets) was 12.9% on
As of
The investment securities portfolio totaled
Total gross loans outstanding were
As of
Shareholders' Equity was
Net Interest Income was
No provision for credit losses was recorded in the second quarter of 2024 or in the second quarter of the prior year. The lack of provision in 2024 and 2023 reflects the quality of the Company's loan portfolio. The allowance for credit losses was 1.66% of gross loans as of
Credit quality remains very strong; non-performing loans to gross loans as of
For the quarter ended
Non-interest expense was
Return on average assets was 0.78% and 0.85% for the three months and six months ended
Selected Financial Data ‐ Unaudited $ In thousands, Except per Share Data
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Assets |
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Cash and Due From Banks |
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26,966 |
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26,411 |
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26,862 |
Gross Loans Outstanding |
455,811 |
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449,361 |
|
410,668 |
Allowance for Credit Losses |
(7,544) |
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(7,513) |
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(7,512) |
Other Assets |
16,823 |
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16,181 |
|
14,193 |
Total Assets |
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Liabilities and Capital |
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Non-Interest Bearing Deposits |
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Interest Bearing Deposits |
285,856 |
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290,578 |
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274,455 |
Borrowings |
16,855 |
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16,841 |
|
16,802 |
Other Liabilities |
3,398 |
|
3,361 |
|
2,300 |
Equity |
53,899 |
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52,745 |
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48,527 |
Total Liabilities and Capital |
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Key Ratios: |
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97.53 % |
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98.17 % |
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85.37 % |
Allowance for credit losses to gross loans |
1.66 % |
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1.67 % |
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1.83 % |
Non-performing loans to gross loans |
0.22 % |
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0.11 % |
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0.24 % |
Equity to Year-to-Date Average Assets |
10.37 % |
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10.12 % |
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9.32 % |
Book Value per Share |
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Income Statement, Three Months Ended |
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Interest Income |
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Interest Expense |
2,699 |
|
2,487 |
|
1,881 |
Net Interest Income |
4,155 |
|
4,495 |
|
4,312 |
Provision for Credit Losses |
0 |
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0 |
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0 |
Non-Interest Income |
412 |
|
351 |
|
399 |
Non-Interest Expense |
3,133 |
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3,140 |
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3,087 |
Income Tax |
420 |
|
503 |
|
476 |
Net Income |
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Key Ratios, Three Months Ended: |
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Earnings per basic share |
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Net Interest Margin, annualized |
3.32 % |
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3.57 % |
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3.45 % |
Quarter Efficiency Ratio |
68.60 % |
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64.80 % |
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65.53 % |
Return on Average Assets, annualized |
0.78 % |
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0.92 % |
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0.88 % |
Return on Average Equity, annualized |
7.40 % |
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9.14 % |
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9.52 % |
Selected Financial Data ‐ Unaudited $ In thousands, Except per Share Data |
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Income Statement, Six Months Ended |
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Interest Income |
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Interest Expense |
5,186 |
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3,268 |
Net Interest Income |
8,650 |
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8,861 |
Provision for Credit Losses |
0 |
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0 |
Non-Interest Income |
763 |
|
767 |
Non-Interest Expense |
6,274 |
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6,206 |
Income Tax |
923 |
|
1,000 |
Net Income |
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Key Ratios, Six Months Ended |
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Earnings per basic share |
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Net Interest Margin, annualized |
3.45 % |
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3.54 % |
Efficiency Ratio |
66.65 % |
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64.46 % |
Return on Average Assets |
0.85 % |
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0.93 % |
Return on Average Equity |
8.26 % |
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10.00 % |
ABOUT
For more information, visit www.pacificvalleybank.com .
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results, performance and/or achievements to differ materially from those projected. Accordingly, readers should not place undue reliance on these forward- looking statements. These risks and uncertainties include, but are not limited to, economic conditions in all areas in which the Company conducts business, including the competitive environment for attracting loans and deposits; supply and demand for real estate and periodic deterioration in real estate prices and/or values in
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