Valley Republic Bancorp Reports Record Financial Results for 2018

BAKERSFIELD, Calif., Jan. 31, 2019 /PRNewswire/ -- Valley Republic Bancorp (the "Company") (OTCQX: VLLX), the parent company of Valley Republic Bank (the "Bank"), today announced its financial results for the year and quarter ended December 31, 2018.

Highlights for the Year Ended 2018 Compared to 2017:

• Pretax income increased 22%
• Net income increased 71%
• Net loans increased 17%
• Deposits increased 17%
• Total assets increased 17%
• Basic earnings per share increased 64% ($2.29 vs. $1.40)
• Return on average assets increased to 1.25% vs. 0.83%
• Return on average equity increased to 14.65% vs. 9.73%
• Book value per share increased 13% ($16.88 vs. $14.94)

For the year ended December 31, 2018, pretax income was $11,310,000 compared to $9,240,000 in the prior year, an increase of $2,070,000 or 22%. As of December 31, 2018, year to date net income was $8,952,000, compared to $5,247,000 for the same period in the prior year. This represents an increase in earnings for 2018 of $3,705,000 or 71%. 2017 earnings were negatively affected by a one-time expense adjustment of $943,000, or $(0.25) per share, in the fourth quarter of 2017 due to the enactment of the Tax Cuts and Jobs Act (the "Tax Act") in December of that year. Further, 2018 earnings were positively affected by the Tax Act which reduced the top federal statutory tax rate from 35% in 2017 to 21% in 2018.

The Company reported record pretax income for the fourth quarter of 2018 of $3,055,000 compared to $2,705,000 in the same quarter of 2017, an increase of $350,000, or 13%. Net income for the fourth quarter of 2018 was $2,255,000, or $0.57 per share, compared to $804,000, or $0.21 per share, in 2017. This represents an increase in earnings for the fourth quarter of 2018 of $1,451,000, or 180%, and includes the impact of the Tax Act.

Bruce Jay, President/CEO stated, "The accomplishments of Valley Republic Bancorp in 2018 were exceptional and represented record performance. Year over year earnings increased 71% to almost $9 million, while total assets and loans increased approximately $112 million and $73 million, respectively.  2018 was essentially the 10^th year of operation for Valley Republic Bank, which opened February 2, 2009.  As measured by asset size, the Bank is now in the top 20% of approximately 5,600 banks in the United States.  As one of the newest banks in the country, we are proud of what Valley Republic Bank has achieved in both growth and performance in just 10 years.  We're grateful for our loyal customers and the overall community support that has fostered our success."

Eugene Voiland, Chairman of the Board of Directors added, "Valley Republic Bancorp had a remarkable year thanks to the efforts of our dedicated employees and the Board of Directors.  We focus on providing our customers excellent and timely service while running a cost effective organization.  This allows our shareholders and our community to participate in the Bank's success."

Total net loans were $514.7 million at December 31, 2018, compared to $441.7 million at the end of 2017, an increase of $73 million, or 17%. Total deposits increased by $100.4 million, or 17%, to $703.7 million at the end of 2018 compared to $603.3 million at the end of 2017. Total assets were $779.9 million at December 31, 2018, an increase of $112.2 million, or 17%, compared to $667.6 million at the prior year end. At December 31, 2018, the Bank had no nonperforming loans or loan payments that were more than 30 days delinquent.

Total shareholders' equity at December 31, 2018 was $67.2 million.  Compared to December 31, 2017, total shareholders' equity has increased by $10.7 million, or 19%, compared to $56.4 million at December 31, 2017.

About Valley Republic Bancorp and Valley Republic Bank

Valley Republic Bancorp is a bank holding company formed in 2016. Valley Republic Bank is a wholly-owned subsidiary of Valley Republic Bancorp, 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 tenth 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 services provided to a wide range of businesses and professionals. The Bank also provides a full complement of banking services that are available to individuals and non-profit organizations.

Company Website: https://www.valleyrepublicbank.com/investor-relations

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

https://www.valleyrepublicbank.com