Golden Valley Bancshares Reports First Quarter 2023 Results (Unaudited)

Rhea-AI Summary

Golden Valley Bancshares (GVYB) reported a net profit of $990,796 for Q1 2023, down from $1,168,966 in Q1 2022. Higher interest expenses on deposit accounts, primarily due to rising interest rates, contributed to this decline. Despite the decrease in earnings, performance exceeded the Bank's forecasts. Loans grew by 8.1% to $241.3 million, while asset quality remained strong with no non-performing loans. The allowance for credit losses stands at $3.94 million, indicating preparedness for potential economic challenges. Although deposits fell by 1.3% to $436.5 million, activity has increased post-quarter. The Bank continues to be well-capitalized and is on track with its Oroville office construction, expected to open this summer.

Positive

• Net profit of $990,796 exceeded forecasts despite a year-over-year decrease.
• Loans increased by 8.1% to $241.3 million.
• Strong asset quality with no non-performing loans.
• Preparedness indicated by $3.94 million set aside for credit losses.
• Continuing construction of the Oroville office expected to open this summer.

Negative

• Net profit decreased from $1,168,966 in Q1 2022.
• Deposits declined by 1.3% to $436.5 million.

CHICO, CA / ACCESSWIRE / April 24, 2023 / Golden Valley Bancshares (OTC Markets:GVYB), with its wholly owned subsidiary, Golden Valley Bank headquartered in Chico, California today reported first quarter 2023 net profit of $990,796 compared to $1,168,966 for the quarter ended March 31, 2022. While earnings were down year over year, they were ahead of the Bank's forecast for the first three months. The difference in earnings is primarily attributed to higher interest expense on deposit accounts, a result of the increased interest rate environment.

Loans increased $18.0 million or 8.1% to $241.3 million as of March 31, 2023, compared to $223.3 million as of March 31, 2022, net of the Paycheck Protection Program. Asset quality continues to be excellent as there were no loans considered to be non-performing. By comparison, the average was 0.47% of total assets for the Bank's national peer group, based on data provided as of December 31, 2022 (the most recent data available). The company has set aside $3.94 million in allowance for credit losses to protect it from future economic uncertainties.

"We are happy with our first quarter results, especially with the uncertainty in the banking industry that occurred at the end of the quarter," said President and Chief Executive Officer Mark Francis, "we are doing better than we expected and are ready to respond to our customers needs."

While deposits were down slightly in the quarter, 1.3% to $436.5 million compared to the same period last year, the Bank has seen increasing activity since quarter end. The Bank has experienced extraordinary deposit growth since 2018 due to natural disasters and the pandemic stimulus.

"We continue to be a safe and secure bank for our customers and the community," said Francis. "Our Oroville office construction continues and we expect to open this summer."

Golden Valley continues to be a well-capitalized bank and far exceeds minimum regulatory requirements. More complete financial information can be viewed on the Bank's website.

Golden Valley Bancshares, a bank holding company with its wholly owned subsidiary, Golden Valley Bank is a locally owned and operated commercial bank serving the needs of individuals and businesses in northern California. The Bank has full service offices in Chico and Redding, California. For more information regarding the bank please call at (530) 894-1000 or visit goldenvalley.bank.

Forward-Looking Statements

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results are pre-fiscal year-end audit and may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, balance sheet management, expanded net interest margin, the ability to control costs and expenses, interest rate changes, technological factors (including external fraud and cybersecurity threats), natural disasters, pandemics such as COVID-19 and financial policies of the United States government and general economic conditions. Golden Valley Bancshares disclaims any obligation to update any such factors.

Contact:

Mark Francis
President & CEO
530-894-4920
mfrancis@goldenvalley.bank

SOURCE: GOLDEN VY BANCSHARES INC.

View source version on accesswire.com:
https://www.accesswire.com/750939/Golden-Valley-Bancshares-Reports-First-Quarter-2023-Results-Unaudited

FAQ

What was Golden Valley Bancshares' net profit in Q1 2023?

Golden Valley Bancshares reported a net profit of $990,796 for Q1 2023.

How much did loans increase for Golden Valley Bancshares in Q1 2023?

Loans increased by 8.1% to $241.3 million as of March 31, 2023.

What caused Golden Valley Bancshares' net profit decline in Q1 2023?

The decline in net profit was primarily due to higher interest expenses on deposit accounts.

What measures has Golden Valley Bancshares taken for credit risk?

The company has set aside $3.94 million in allowance for credit losses.

When is the Oroville office of Golden Valley Bank expected to open?

The Oroville office is expected to open in the summer of 2023.

What was the amount of deposits for Golden Valley Bancshares in Q1 2023?

Deposits for Golden Valley Bancshares were $436.5 million, a decrease of 1.3% compared to the previous year.