Valley Republic Bancorp - Second Quarter 2017 Financial Results

BAKERSFIELD, Calif., July 24, 2017 /PRNewswire/ -- Valley Republic Bancorp (OTCQX: VLLX) today announced its financial results for the quarter which ended June 30, 2017.

Highlights for the 2^nd Quarter of 2017 Compared to the 2^nd Quarter of 2016:

• Net income - up 31%
• Net loans - up 17%
• Deposits - up 27%
• Total assets - up 26%
• Basic earnings per share - up 29% ($0.40 vs. $0.31)
• Book value per share – up $1.30 ($15.07 vs. $13.77)

Financial Performance

Valley Republic Bancorp reported record net income for the second quarter of 2017 of $1,423,000, compared to $1,086,000 for the same quarter in the prior year, an increase of $337,000, or 31%.  Basic earnings per share for the second quarter of 2017 were $0.40, compared to $0.31 basic earnings per share reported for the same quarter last year. 

As of June 30, 2017, year to date net income was $2,660,000, compared to $2,147,000 for the same period in the prior year. This represents an increase of $513,000 or 24%, year over year. Basic earnings per share were $0.75 as of June 30, 2017 compared to $0.61 in the same period in the prior year.

Bruce Jay, President & CEO, stated, "Valley Republic Bancorp's performance through the first half of 2017 continues to be exceptional and consistent.  The second quarter earnings set a record for the Company and follows 13 of 14 consecutive quarters of record earnings."

Valley Republic Bank opened a new full-service branch in the City of Delano, located in northern Kern County, on April 17, 2017. This new office expands the Bank's branch network outside of the greater Bakersfield market to further serve Kern County. Concurrent with the opening of this new branch, the Bank hired Rick Brauer as the branch manager.  Brauer has been a bank manager in the Delano market for approximately 15 years and has developed substantial customer relationships. 

The new Delano office expands the Bank's branch network to four offices and it is the first branch outside of the greater Bakersfield market, further increasing the Bank's service to Kern County.

Growth

Total assets were $638.7 million at the end of the second quarter 2017, an increase of $59.6 million, or 10%, compared to $579.1 million at year-end 2016. Total assets grew $130.1 million, or 26%, compared to $508.6 million at the end of the second quarter of 2016.      

Total net loans were $410.7 million at June 30, 2017, representing an increase of $26.2 million, or 7%, compared to $384.5 million at December 31, 2016, and an increase of $58.7 million, or 17%, compared to $352.0 million at June 30, 2016.   At June 30, 2017, the Bank had no nonperforming loans or loan payments that were more than 30 days delinquent. 

At June 30, 2017, total deposits were $576.0 million, an increase of $57.5 million, or 11%, compared to $518.5 million at year-end 2016. Total deposits were up approximately $124.0 million, or 27%, compared to $452.0 million at June 30, 2016.    

Eugene Voiland, Chairman of the Board, stated, "We are pleased with the continued pace of both deposit and loan growth at Valley Republic Bank in the midst of an economy which has not fully rebounded from the decline in oil prices. Our basic business is providing great service to our customers.  The local market continues to respond to our relationship-based banking with local, responsive and reliable service."

Capital

Total shareholders' equity at June 30, 2017 was $53.7 million, an increase of $3.2 million, or 6%, compared to $50.5 million at December 31, 2016. Total shareholders' equity increased by $5.1 million, or 10.5%, compared to $48.6 million at June 30, 2016. According to Jay, "Since the inception of Valley Republic Bank, our team has focused on building a safe bank that provides value to the local market.  Appropriate capital levels and a quality loan portfolio are critical components for a safe bank.  Our loan portfolio continues to be stellar with no delinquencies or non-performing loans."

About Valley Republic Bancorp and Valley Republic Bank

Valley Republic Bancorp is a bank holding company formed in 2016. Valley Republic Bank, a wholly-owned subsidiary of Valley Republic Bancorp, is a community bank headquartered in Bakersfield, California. The Bancorp is subject to the regulatory oversight of the Federal Reserve Bank, and the Bank is subject to the regulatory oversight of the Federal Deposit Insurance Corporation and the California Department of Business Oversight. Valley Republic Bank is an insured, state-chartered, non-member bank of the Federal Reserve System. The Bank is in its ninth year of operation, having been established in 2009. Valley Republic Bank is a full-service, community bank with three full-service banking offices in Bakersfield and one full-service banking office in Delano. Valley Republic Bank emphasizes professional, high quality banking service provided primarily to small and medium-sized businesses and professionals. The Bank also provides a full range of banking services that are available to individuals and non-profit organizations.  

Forward Looking Statements

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended and Valley Republic Bancorp and Valley Republic Bank (together, the "Company") intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

SOURCE Valley Republic Bancorp

Related Links

http://www.valleyrepublicbank.com