YUBA CITY, Calif.--()--River Valley Community Bank (OTC Markets: RVVY) headquartered in Yuba City, California closed out 2012 with record annual earnings of $1,451,065 or $.85 basic earnings per share. This compares to $1,256,245 or $.73 per share earned for the year 2011. For the fourth quarter, the Bank earned $361,611 compared to $307,827 in the corresponding quarter a year ago. The Bank which opened in June of 2006 now has posted 22 consecutive profitable quarters.
Total Assets and Deposits of $151,986,002 and $130,376,163 were up 8% respectively from the previous year. Non-Interest Bearing Deposits were at $35,176,216 at year end, a 7% increase from year end 2011. Gross Loans grew 18% from the prior year to $55,236,582. There were no past due or nonaccrual loans at year end. Loan charge offs for the year totaled 0.05% of Gross Loans. Shareholder Equity increased 7% for the year to $19,516,606; again, this was primarily driven by earnings and to a lesser degree by the unrealized gains in the Bank’s investment portfolio. Book Value per share increased from $10.67 at year end 2011 to $11.36 at the end of 2012.
Net Interest Income of $4,615,531 was relatively flat for the year as the Net Interest Margin (NIM) dropped to 3.53% primarily as a result of the continued Federal Reserve’s quantitative easing policies; this compares to the 3.64% NIM in 2011. The Bank’s Efficiency Ratio was 60% for the year compared to 59% in 2011. Return on Average Equity and Return on Average Assets were 7.57% and 1.01% for the year compared to 7.34% and 0.93% in 2011.
John I. Jelavich, President and CEO commented, “2012 was another excellent year for the Bank driven by solid loan growth. The fact that we were able to deliver the loan growth in difficult economic times while maintaining credit quality at very high standards was particularly pleasing. Margin compression and weak loan demand continues to persist and we don’t expect conditions to improve anytime soon. We will continue to execute towards our plan of growing our quality base of relationship customers which we expect will continue to add value for our shareholders going forward.”
“In December, 2012 we declared and paid a special cash dividend of $0.30 per share in advance of the recent tax law changes. While Equity Capital was reduced by more than $500,000 to accommodate this special event, our Capital and Liquidity levels continue to be above industry norms which leaves us with ample capital to grow the Bank,” Jelavich concluded.
River Valley Community Bank is located at 1629 Colusa Avenue, Yuba City, California. For more information please contact John Jelavich at 530-821-2460 or visit our website at: www.rivervalleycommunitybank.com.
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.