• Wed. Sep 21st, 2022

River Valley Community Bancorp Announces 4th Quarter and

ByElla E. Kidwell

Jan 18, 2022

YUBA CITY, Calif., Jan. 18, 2022 (GLOBE NEWSWIRE) — River Valley Community Bancorp (OTC Markets: RVCB) and its wholly-owned subsidiary, River Valley Community Bank (collectively, the “Bank”), today announced financial results for the quarter ended December 31, 2021.

Consolidated Financial Highlights:

  • Total assets ended the year at $600.8 million as of December 31, 2021, compared to $496.5 million as of December 31, 2020 and $527.7 million as of September 30, 2021. Total assets increased 21.0% during the year ended December 31, 2021.
  • Net earnings for the quarter ended December 31, 2021 totaled $1.4 million or $0.44 per diluted share, compared to $1.3 million or $0.46 per diluted share for the quarter ended December 31 2020 and $1.4 million or $0.45 per diluted share for the three months ended September 30, 2021. Net income for the year ended December 31, 2021 was $5.4 million or $1.73 per diluted share, which was up 28.0% over the prior year.
  • Net interest income totaled $4.2 million for the quarter ended December 31, 2021, compared to $3.9 million for the quarter ended December 31, 2020 and $4.0 million for the quarter ended September 30, 2021. Net interest income for the year ended December 31, 2021, was $15.9 million, an increase of 12.3% over the year ended December 31, 2020.
Selected consolidated financial information – unaudited
(amounts in thousands of dollars, except per share data)
From
December 31st September 30 June 30th, March, 31st December 31st
2021 2021 2021 2021 2020
Total investment securities $ 227,775 $ 200,099 $ 171,710 $ 169,698 $ 168,939
Total loans, gross 250 670 243,689 258,816 258,504 257,740
PPP loans (non-core) 3,939 10,307 26 136 42,383 45,279
Total loans, excluding PPP 246,731 233,382 232,680 216 121 212,461
Allowance for loan losses (3,513) (3,362) (3,362) (3,362) (3,470)
Total assets 600 849 527,734 503 298 506 850 496 487
Total deposits 548,020 475 251 450 895 457,938 445 162
Loans
Total equity 49,428 48,853 48,439 45,717 46,782
Loan to deposit ratio 46% 51% 57% 56% 58%
Book value per common share $ 4:30 p.m. $ 16.14 $ 16.02 $ 15.16 $ 15.68
Subsidiary Tier 1 leverage ratio 8.13% 8.41% 8.42% 8.20% 8.01%

Total gross loans were $250.6 million as of December 31, 2021, representing a decrease of $7.1 million or 2.7% from $257.7 million as of December 31, 2020, and an increase of $7.0 million or 2.9% from $243.7 million as at September 30. 2021. The decrease in lending is primarily due to PPP loan repayments received during the twelve-month period ended December 31, 2021. Excluding PPP lending, the Bank recorded loan growth of $34.3 million or 16.1% from December 31, 2020, and $13.3 million or 5.7% from September 30, 2021 (22.9% annualized). Total deposits of $548.0 million as of December 31, 2021 represent an increase of $102.9 million or 23.1% from $445.1 million as of December 31, 2020, and an increase of 72. $8 million or 15.3% (61.2% annualized) from $475.3 million as of December 31, 2020. September 30, 2021. As of December 31, 2021, the Bank’s non-performing assets totaled $225,000 .

Selected consolidated financial information – Unaudited (continued)
(amounts in thousands of dollars, except per share data)
For the year ended
December 31st December 31st Variance
2021 2020 Quantity Percent
Total interest income $ 16,525 $ 15,942 $ 583 3.7%
Total interest expense 617 1,775 (1,158) -65.2%
Net interest income 15,908 14,167 1,741 12.3%
Allowance for loan losses 151 1,000 (849) -84.9%
Total non-interest income 855 3,260 (2,405) -73.8%
Total non-interest expense 9,268 10,814 (1,546) -14.3%
Net revenue 5,350 4,129 1,221 29.6%
Earnings per share – basic $ 1.77 $ 1.39 $ 0.38 27.2%
Earnings per share – diluted $ 1.73 $ 1.35 $ 0.38 28.0%
Net interest margin 3.20% 3.00% 0.20% 6.8%
Net interest margin – tax equivalent 3.25% 3.05% 0.20% 6.7%
Efficiency report 55.59% 72.27% -16.68% -23.1%
Average return on assets 1.03% 0.84% 0.19% 23.1%
return on average equity 11.09% 9.64% 1.45% 15.0%
Selected consolidated financial information – Unaudited (continued)
(amounts in thousands of dollars, except per share data)
For the quarter ended
December 31st September 30 June 30th, March, 31st December 31st
2021 2021 2021 2021 2020
Total interest income $ 4,295 $ 4,173 $ 4,071 $ 3,988 $ 4,087
Total interest expense 147 153 156 160 228
Net interest income 4,148 4,020 3,915 3,828 3,859
Allowance for loan losses 151
Total non-interest income 242 161 175 276 1,617
Total non-interest expense 2,340 2,265 2,275 2,388 3,553
Net revenue 1,392 1,397 1,315 1,245 1,405
Earnings per share – basic $ 0.46 $ 0.46 $ 0.43 $ 0.42 $ 0.47
Earnings per share – diluted $ 0.44 $ 0.45 $ 0.42 $ 0.41 $ 0.46
Net interest margin 3.09% 3.21% 3.28% 3.26% 3.24%
Net interest margin – tax equivalent 3.13% 3.25% 3.33% 3.31% 3.29%
Efficiency report 53.32% 54.17% 55.62% 59.49% 87.72%
Average return on assets 1.00% 1.07% 1.05% 1.01% 1.13%
return on average equity 11.16% 11.18% 11.24% 10.76% 12.18%

Net interest income of $15.9 million for the year ended December 31, 2021 represents an increase of $1.7 million or 12.3% over the year ended December 31, 2020. The Bank’s net interest income continued to benefit from the accelerated recognition of fee income on the forgiveness of PPP loans. In addition, the Bank’s net interest income benefited from strong growth in core non-PPP lending and the Bank’s increased investment in debt securities. The Bank recorded an allowance for loan losses of $151,000 during the three months ended December 31, 2021, primarily due to growth in the Bank’s core non-P3 loans.

Concurrent with the announcement of fourth quarter results, the company’s board of directors approved the opening of a loan origination office in Reno, NV. The office opened on January 3, 2022.

Chief Financial Officer Kevin S. Reynolds said, “The Bank posted record net income for the year ended December 31, 2021. A significant driver of this achievement was the recognized benefit on the forgiveness of PPP loans. When PPP loans are written off, revenue recognition of PPP fees is accelerated, which has increased the Bank’s interest income on loans. The Bank received forgiveness payments of $59.2 million on PPP loans in 2021. The Bank continues to benefit from ample liquidity and a balance sheet well positioned for loan growth.

CEO John M. Jelavich said, “Despite many challenges, 2021 has been an excellent year for the Bank. We are proud to have produced record profits and total assets that exceeded $600 million by the end of the year. We are also proud of the growth in core loans and deposits we achieved during the year. Notably, the growth of our deposits was strongly influenced by the growth of demand deposits, which helped reduce our overall funding costs during the year. In addition, we have also made significant investments in new banking technologies and in the expansion of our lending and credit team, which position the Bank well for 2022 and beyond. Our team has continued to demonstrate its adaptability and commitment to our clients, and we are very proud of the collective effort and the positive impact the Bank has had on our communities.

Jelavich continued, “Looking to 2022, we expect to have a strong year, although we don’t expect the earnings advantage provided by PPP that we experienced in 2021. We expect pressure continues to impact our margins due to the low interest rate environment we have experienced, however. , recent Fed comments suggesting rate hikes in 2022 bode well for future margin and earnings expansion for our bank and the industry.

“Finally, we are pleased to be able to open our loan origination office in Reno, Nevada. Between our Board of Directors, our banking team and our customers, we have many business ties in the Reno market. Reno is a large and growing market, and one that values ​​the relationship brand of business banking that we currently offer in our adjacent Northern California footprint.We look forward to leveraging these synergies and are excited. opportunity to offer a relationship banking alternative in the Reno market,” concluded Jelavich.

The Bank continues to be highly rated with BauerFinancial, Depositaccounts.com and Bankrate and serves its clients through its offices located at:

  • 1629 Colusa Avenue, Yuba City, CA
  • 580 Brunswick Road, Grass Valley, CA
  • 905 Lincoln Way, Auburn, CA
  • 904 B Street, Marysville, CA
  • 401 Ryland Street, Reno, NV (Loan Origination Office)

The Bank offers a full range of competitive banking products, services and technologies. 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 or implied by such statements. Forward-looking statements speak only as of the date on which they are made. The Bank undertakes no obligation to update forward-looking statements to reflect circumstances or events that occur after the date on which the forward-looking statements are made.