Pacific Valley Bancorp Announces Its First Quarter 2024 Financial Results
FINANCIAL HIGHLIGHTS:
- Net income for the quarter ended
March 31, 2024 , was$1.2 million representing an increase of 2.8% or$32 thousand from the quarter endedDecember 31, 2023 . The increase was primarily the result of higher loan interest income and lower deposit interest expense, partially offset by lower Fed Funds income and higher borrowing costs. Basic earnings per share for the quarter was$0.24 compared to$0.26 per share for the prior quarter. Earnings per share for the first quarter of 2024 reflects a 10% stock dividend at the end of the quarter. Earnings per share for the prior quarter would have been$0.24 if the dividend were applied retroactively. - Net interest margin for the first quarter
March 31, 2024 was 3.57% compared with 3.67% for the same period in 2023. The decrease is primarily the result of higher interest expense. - Gross loans outstanding grew by 10.6% or
$43.0 million fromMarch 31, 2023 toMarch 31, 2024 , primarily as a result of increased CRE loans. - Non-Performing loans to gross loans for the quarter ended
March 31, 2024 , was 0.11% compared to 0.25% as ofMarch 31, 2023 . - The Bank subsidiary's Community Bank Leverage Ratio has been consistently strong. As of March 31, 2024 the ratio was 13.48%, compared to 13.02% on
December 31, 2023 , and 12.42% onMarch 31, 2023 . The regulatory requirement for this ratio is 9.00%.
"The Company maintained consistent income, credit quality and operating efficiency in the first quarter of 2024 despite the pressure from rising interest expense on net interest margin. Loans have grown 11% over the prior year quarter which will provide momentum for interest income growth in 2024. While the cost of funds for the first quarter increased to 2.14% compared to 1.18% in the prior year quarter, we have maintained cost controls and kept non-interest expense to average assets below 2.50%. We will be investing in loan and deposit production and support personnel in 2024 to drive growth in both of those areas. This will be an investing year to position the Bank to achieve greater profitability. Despite the volatile economic environment, I am excited about the Company's prospects in 2024 and beyond. The Bank is committed to maintaining conservative lending and investment policies to be able to serve the community for years to come," said
"Our deposits decreased substantially in the first quarter due to seasonal agricultural deposits that come into the Bank in December and go out in January. Those amounts were
"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 12.4% 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 first quarter of 2024 or in the entire year of 2023. The lack of provision in 2024 and 2023 reflects the quality of the Company's loan portfolio. The allowance for credit losses was 1.67% of gross loans as of
For the quarter ended
Non-interest expense was
Return on average assets was 0.92% for the three months ended
Pacific Valley Bancorp |
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Assets |
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March 31, 2023 |
Cash and Due From Banks |
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26,411 |
|
26,946 |
|
27,579 |
Gross Loans Outstanding |
449,361 |
|
452,532 |
|
406,337 |
Allowance for Credit Losses |
(7,513) |
|
(7,512) |
|
(7,512) |
Other Assets |
16,181 |
|
16,634 |
|
15,230 |
Total Assets |
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Liabilities and Capital |
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March 31, 2023 |
Non-Interest Bearing Deposits |
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Interest Bearing Deposits |
290,578 |
|
253,374 |
|
256,963 |
Borrowings |
16,841 |
|
16,828 |
|
16,789 |
Other Liabilities |
3,361 |
|
4,404 |
|
2,347 |
Equity |
52,745 |
|
51,677 |
|
47,615 |
Total Liabilities and Capital |
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Key Ratios: |
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March 31, 2023 |
|
98.17 % |
|
86.73 % |
|
88.28 % |
Allowance for credit losses to gross loans |
1.67 % |
|
1.66 % |
|
1.85 % |
Non-performing loans to gross loans |
0.11 % |
|
0.02 % |
|
0.25 % |
Equity to Year-to-Date Average Assets |
10.12 % |
|
9.78 % |
|
9.16 % |
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 |
2,487 |
|
2,389 |
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Net Interest Income |
4,495 |
|
4,707 |
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Provision for Credit Losses |
0 |
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0 |
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Non-Interest Income |
351 |
|
372 |
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Non-Interest Expense |
3,140 |
|
3,392 |
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Income Tax |
503 |
|
516 |
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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 |
3.57 % |
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3.69 % |
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3.67 % |
Quarter Efficiency Ratio |
64.80 % |
|
66.80 % |
|
63.43 % |
Return on Average Assets, annualized |
0.92 % |
|
0.88 % |
|
0.98 % |
Return on Average Equity, annualized |
9.14 % |
|
9.12 % |
|
10.47 % |
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
Contact
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