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

Rhea-AI Summary

River Valley Community Bancorp (RVCB) announced its financial results for Q1 2022, reporting total assets of $574.8 million, down from $600.8 million in Q4 2021. Net income was $1.1 million, or $0.36 per diluted share, a decrease from $1.4 million in the previous quarter. Total gross loans decreased by 0.8% to $248.6 million, while total deposits fell 3.3% to $530.0 million. The Bank had no non-performing assets, but faced a decline in net interest income, attributed to reduced PPP fee income.

Positive

• Net interest income rose by 3.2% year-over-year to $3.9 million.
• Deposits increased by 15.7% since March 31, 2021.
• Successful completion of a core system and online banking upgrade.

Negative

• Total assets decreased by $26 million (4.3%) from last quarter.
• Net income dropped $0.3 million (21.4%) from the previous quarter.
• Total loans fell 0.8% quarter-over-quarter and 3.8% year-over-year.

YUBA CITY, Calif., April 19, 2022 (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, 2022.

Consolidated financial highlights:

• Total assets ended the quarter at $574.8 million as of March 31, 2022 compared to $600.8 million as of December 31, 2021 and $506.8 million as of March 31, 2021.  
• Net income for the quarter ended March 31, 2022 totaled $1.1 million or $0.36 per diluted share compared to $1.4 million or $0.46 per diluted share for the quarter ended December 31, 2021 and $1.2 million or $0.42 per diluted share for the quarter ended March 31, 2021.
• Net interest income totaled $3.9 million for the quarter ended March 31, 2022 compared to $4.1 million for the quarter ended December 31, 2021 and $3.9 million for the quarter ended March 31, 2021.
  

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,
			2022				2021				2021				2021				2021
Total investment securities		$	242,907			$	227,775			$	200,099			$	171,710			$	169,698
Total loans, gross			248,560				250,670				243,689				258,816				258,504
PPP loans (non-core)			1,071				3,939				10,307				26,136				42,383
Total loans, excluding PPP			247,489				246,731				233,382				232,680				216,121
Allowance for loan losses			(3,513	)			(3,513	)			(3,362	)			(3,362	)			(3,362	)
Total assets			574,805				600,849				527,734				503,298				506,850
Total deposits			530,020				548,020				475,251				450,895				457,938
Borrowings			-				-				-				-				-
Total shareholders' equity			42,332				49,428				48,853				48,439				45,717
Loan to deposit ratio			47	%			46	%			51	%			57	%			56	%
Book value per common share		$	13.85			$	16.30			$	16.14			$	16.02			$	15.16
Subsidiary Bank's Tier 1 leverage ratio			7.85	%			8.13	%			8.41	%			8.42	%			8.20	%

 

Total gross loans were $248.6 million as of March 31, 2022, which represents a decrease of $2.1 million or 0.8% (3.4% annualized) from $250.7 million as of December 31, 2021 and a decrease of $9.9 million or 3.8% from March 31, 2021. Excluding PPP loans, the Bank experienced net loan growth of $756,000 or 0.3% (1.2% annualized) since December 31, 2021 and an increase of $31.4 million or 14.5% since March 31, 2021. For the quarter ended March 31, 2022, $2.8 million of the $3.9 million remaining PPP loans were forgiven with full payments received from the Small Business Administration. Total deposits of $530.0 million as of March 31, 2022 represent a decrease of $18.0 million or 3.3% (13.1% annualized) from $548.0 million as of December 31, 2021 and an increase of $72.1 million or 15.7% from March 31, 2021. As of March 31, 2022, the Bank had no non-performing assets.     

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,
			2022				2021				2021				2021				2021
Total interest income		$	4,089			$	4,295			$	4,173			$	4,071			$	3,988
Total interest expense			140				147				153				156				160
Net interest income			3,949				4,148				4,020				3,915				3,828
Provision for loan losses			-				151				-				-				-
Total noninterest income			200				242				161				175				276
Total noninterest expense			2,567				2,340				2,265				2,275				2,388
Net income			1,142				1,392				1,397				1,315				1,245
Earnings per share - basic		$	0.38			$	0.46			$	0.46			$	0.43			$	0.42
Earnings per share - diluted		$	0.36			$	0.44			$	0.45			$	0.42			$	0.41
Net interest margin			2.79	%			3.09	%			3.21	%			3.28	%			3.26	%
Net interest margin - tax equivalent			2.83	%			3.13	%			3.25	%			3.33	%			3.31	%
Efficiency ratio			61.87	%			53.32	%			54.17	%			55.62	%			59.49	%
Return on average assets			0.78	%			1.00	%			1.07	%			1.05	%			1.01	%
Return on average equity			9.64	%			11.16	%			11.18	%			11.24	%			10.76	%

Net interest income of $3.9 million for the quarter ended March 31, 2022 is an increase of $121,000 or 3.2% from the quarter ended March 31, 2021 and a decrease of $199,000 or 4.8% (19.2% annualized) from the quarter ended December 31, 2021. The quarter-over-quarter decrease is primarily attributable to a reduction in loan fee income. As the volume of PPP loan forgiveness decreases, so does the recognition of PPP loan fee income. PPP loan fee income is fully recognized when a loan is forgiven or paid off.

CFO Reynolds stated, “Due to an increase in expectations about future rate hikes, the yield curve saw significant increases across all maturities during the quarter. This led to an increase of unrealized losses in the investment portfolio and a related decrease in the Bank’s book value per share. We manage the bond portfolio considering the Bank’s overall balance sheet. Our bond portfolio compliments are other earning assets well and is performing as it was intended. All of our investments are investment grade and/or issued by government sponsored entities, the unrealized losses are not indicative of credit deterioration. Bond prices fall as yields or rates rise.”

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.”

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
• 401 Ryland Street, Reno, NV (Loan Production Office)
  

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.

FAQ

What were River Valley Community Bancorp's financial results for Q1 2022?

RVCB reported total assets of $574.8 million, net income of $1.1 million, and earnings per share of $0.36.

How did total deposits change for RVCB in Q1 2022?

Total deposits decreased by 3.3% to $530.0 million compared to the previous quarter.

What was the net interest income for River Valley Community Bancorp in Q1 2022?

Net interest income for the quarter was $3.9 million, a decrease of $199,000 from Q4 2021.

What is the loan to deposit ratio for RVCB as of March 31, 2022?

The loan to deposit ratio stands at 47%.

Did RVCB experience any non-performing assets during Q1 2022?

No, RVCB had no non-performing assets as of March 31, 2022.