River Valley Community Bancorp Announces 5-for-4 Stock Split and 3rd Quarter Results (Unaudited)
River Valley Community Bancorp (RVCB) announced its financial results for Q3 2021, reporting a net income of $1.4 million or $0.56 per diluted share, up from $1.3 million in Q3 2020. The Bank's total assets were $527.7 million, reflecting a decrease from $531.1 million year-over-year. A five-for-four stock split was approved to enhance liquidity, with shares issued on November 1, 2021. Notably, total loans decreased by 7.6% year-over-year, while total deposits rose by 18.6%. The Bank maintains strong core deposit growth, aiding in reduced interest expenses.
- Net income increased by 6.3% year-over-year to $1.4 million.
- Total deposits rose by $74.5 million, an increase of 18.6% year-over-year.
- Net interest income increased by 12.7% from Q3 2020.
- Core loan growth (excluding PPP) experienced a gain of $26.2 million (12.6%) year-over-year.
- Total loans decreased by $19.9 million (7.6%) year-over-year.
- Total assets decreased by $3.4 million from $531.1 million year-over-year.
YUBA CITY, Calif., Oct. 19, 2021 (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 September 30, 2021.
Concurrent with the announcement of third quarter earnings, the Company’s Board of Directors approved a five-for-four split of the Company’s common stock (the “Split”). One of the primary purposes of the Split is to enhance the liquidity of the stock by making more shares available to all shareholders. Each shareholder of record at the close of business on October 29, 2021 will receive five shares for each four outstanding shares held on that record date. The shares relating to the Split will be issued and delivered to shareholders by electronic registration in the Direct Registration System (DRS) and a statement will be soon issued from the Bank’s transfer agent, Computershare Trust Co., reflecting the delivery of the shares. Beneficial shareholders who hold their shares in an account with a broker or other intermediary should expect to have their accounts updated to reflect the Split in accordance with the applicable intermediary's usual procedures. The Bank will not issue fractional shares as a result of the Split. In lieu thereof, each shareholder who would otherwise be entitled to receive a fractional share as a result of the Split will receive from the Bank, in cash, the fair value of such a fractional share. The Bank anticipates that trading will begin on a split-adjusted basis on November 1, 2021. In connection with the Split the below consolidated financial information presents per share data on both a pre-split and post-split basis.
Consolidated financial highlights:
- Total assets totaled
$527.7 million as of September 30, 2021, compared to$531.1 million as of September 30, 2020, and$503.3 million as of June 30, 2021. - Net income for the quarter ended September 30, 2021, totaled
$1.4 million or$0.56 per diluted share (pre-split) compared to$1.3 million or$0.54 per diluted share for the quarter ended September 30, 2020, and$1.3 million or$0.53 per diluted share (pre-split) for the quarter ended June 30, 2021. - Net interest income totaled
$4.0 million for the quarter ended September 30, 2021, compared to$3.6 million for the quarter ended September 30, 2020, and$3.9 million for the quarter ended June 30, 2021.
| Selected Consolidated Financial Information - Unaudited | ||||||||||||||||||||
| (dollar amounts in thousands, except per share data) | ||||||||||||||||||||
| As of | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
| Total investment securities | $ | 200,099 | $ | 171,710 | $ | 169,698 | $ | 168,939 | $ | 181,460 | ||||||||||
| Total loans, gross | 243,689 | 258,816 | 258,504 | 257,740 | 263,621 | |||||||||||||||
| PPP loans (non-core) | 10,307 | 26,136 | 42,383 | 45,279 | 56,422 | |||||||||||||||
| Total loans, excluding PPP | 233,382 | 232,680 | 216,121 | 212,461 | 207,199 | |||||||||||||||
| Allowance for loan losses | (3,362 | ) | (3,362 | ) | (3,362 | ) | (3,470 | ) | (3,518 | ) | ||||||||||
| Total assets | 527,734 | 503,298 | 506,850 | 496,487 | 531,065 | |||||||||||||||
| Total deposits | 475,251 | 450,895 | 457,938 | 445,162 | 400,774 | |||||||||||||||
| Borrowings | - | - | - | - | 80,000 | |||||||||||||||
| Total shareholders' equity | 48,853 | 48,439 | 45,717 | 46,782 | 45,731 | |||||||||||||||
| Loan to deposit ratio | 51 | % | 57 | % | 56 | % | 58 | % | 66 | % | ||||||||||
| Book value per common share (pre-split) | $ | 20.18 | $ | 20.03 | $ | 18.95 | $ | 19.60 | $ | 19.16 | ||||||||||
| Book value per common share (post-split) | $ | 16.14 | $ | 16.02 | $ | 15.16 | $ | 15.68 | $ | 15.32 | ||||||||||
| Subsidiary Bank's Tier 1 leverage ratio | 8.41 | % | 8.42 | % | 8.20 | % | 8.01 | % | 7.36 | % | ||||||||||
Total gross loans were
| Selected Consolidated Financial Information - Unaudited (continued) | ||||||||||||||||
| (dollar amounts in thousands, except per share data) | ||||||||||||||||
| Nine Months Ended | ||||||||||||||||
| Sept 30 | Sept 30 | Variance | ||||||||||||||
| 2021 | 2020 | Amount | Percent | |||||||||||||
| Total interest income | $ | 12,230 | $ | 11,855 | $ | 375 | 3.2 | % | ||||||||
| Total interest expense | 470 | 1,546 | (1,076 | ) | -69.6 | % | ||||||||||
| Net interest income | 11,760 | 10,309 | 1,451 | 14.1 | % | |||||||||||
| Provision for loan losses | - | 1,000 | (1,000 | ) | -100.0 | % | ||||||||||
| Total noninterest income | 614 | 1,643 | (1,029 | ) | -62.6 | % | ||||||||||
| Total noninterest expense | 6,928 | 7,262 | (334 | ) | -4.6 | % | ||||||||||
| Net income | 3,957 | 2,724 | 1,233 | 45.3 | % | |||||||||||
| Pre-Split | ||||||||||||||||
| Earnings per share - basic | $ | 1.65 | $ | 1.15 | $ | 0.50 | 43.5 | % | ||||||||
| Earnings per share - diluted | $ | 1.59 | $ | 1.12 | $ | 0.47 | 42.0 | % | ||||||||
| Post-Split | ||||||||||||||||
| Earnings per share - basic | $ | 1.32 | $ | 0.92 | $ | 0.40 | 43.5 | % | ||||||||
| Earnings per share - diluted | $ | 1.28 | $ | 0.90 | $ | 0.38 | 42.9 | % | ||||||||
| Net interest margin | 3.25 | % | 2.92 | % | 0.33 | % | 11.2 | % | ||||||||
| Net interest margin - tax equivalent | 3.29 | % | 2.96 | % | 0.33 | % | 11.1 | % | ||||||||
| Efficiency ratio | 56.40 | % | 66.54 | % | -10.14 | % | -15.2 | % | ||||||||
| Return on average assets | 1.05 | % | 0.74 | % | 0.31 | % | 41.2 | % | ||||||||
| Return on average equity | 11.06 | % | 8.71 | % | 2.36 | % | 27.1 | % | ||||||||
| For the Quarter Ended | ||||||||||||||||||||
| Sep 30, | Jun 30, | Mar 31, | Dec 31, | Sep 30, | ||||||||||||||||
| 2021 | 2021 | 2021 | 2020 | 2020 | ||||||||||||||||
| Total interest income | $ | 4,173 | $ | 4,071 | $ | 3,988 | $ | 4,087 | $ | 3,933 | ||||||||||
| Total interest expense | 153 | 156 | 160 | 228 | 366 | |||||||||||||||
| Net interest income | 4,020 | 3,915 | 3,828 | 3,859 | 3,567 | |||||||||||||||
| Provision for loan losses | - | - | - | - | - | |||||||||||||||
| Total noninterest income | 161 | 175 | 276 | 1,617 | 322 | |||||||||||||||
| Total noninterest expense | 2,265 | 2,275 | 2,388 | 3,553 | 2,081 | |||||||||||||||
| Net income | 1,397 | 1,315 | 1,245 | 1,405 | 1,324 | |||||||||||||||
| Pre-Split | ||||||||||||||||||||
| Earnings per share - basic | $ | 0.58 | $ | 0.54 | $ | 0.52 | $ | 0.59 | $ | 0.56 | ||||||||||
| Earnings per share - diluted | $ | 0.56 | $ | 0.53 | $ | 0.51 | $ | 0.57 | $ | 0.54 | ||||||||||
| Post-Split | ||||||||||||||||||||
| Earnings per share - basic | $ | 0.46 | $ | 0.43 | $ | 0.42 | $ | 0.47 | $ | 0.45 | ||||||||||
| Earnings per share - diluted | $ | 0.45 | $ | 0.42 | $ | 0.41 | $ | 0.46 | $ | 0.43 | ||||||||||
| Net interest margin | 3.21 | % | 3.28 | % | 3.26 | % | 3.24 | % | 2.85 | % | ||||||||||
| Net interest margin - tax equivalent | 3.25 | % | 3.33 | % | 3.31 | % | 3.29 | % | 2.90 | % | ||||||||||
| Efficiency ratio | 54.17 | % | 55.62 | % | 59.49 | % | 87.72 | % | 53.51 | % | ||||||||||
| Return on average assets | 1.07 | % | 1.05 | % | 1.01 | % | 1.13 | % | 1.02 | % | ||||||||||
| Return on average equity | 11.18 | % | 11.24 | % | 10.76 | % | 12.18 | % | 11.69 | % | ||||||||||
Net interest income of
CFO Kevin S. Reynolds commented, “Our outstanding PPP loan totals continued to decline during the third quarter as a function of increased PPP loan forgiveness. As PPP loans are forgiven, revenue recognition on deferred fees is accelerated into the current period which benefits our net interest income and margin. At the end of the quarter, we had about
CEO John M. Jelavich stated, “Our third quarter marked another strong quarter for the Bank. We are particularly pleased with our new account activity and strong core deposit growth which have significantly lowered our interest expense this year. On the core lending side which excludes PPP loans, our third quarter loans outstanding had increased slightly from the second quarter as we rebuilt our pipeline after the strong second quarter core loan growth we experienced. We expect core loan growth to resume in the fourth quarter and the Bank remains on pace to have a record year with net income and total assets.”
Jelavich continued, “While the economy appears poised for growth with strong demand for goods and services evident, friction remains in meeting that demand with ongoing supply chain bottlenecks, higher energy costs and labor availability. Recently we have seen increases in interest rates which can be a signal the markets believe improvements can follow. Moderate increases in longer term interest rates usually reflect a more robust economy and allow for margin expansion and increased profitability for our industry.”
“Despite the macro uncertainty, we believe the Bank remains well positioned in our markets with significant liquidity to meet the lending and banking needs of our communities. We are pleased with the interest we continue to experience in the relationship brand of banking we offer,” Jelavich concluded.
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
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
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