Salinas, CA – August 5, 2020 – Pacific Valley Bank (OTC Pink: PVBK) announced its unaudited second quarter 2020 Net Income of $735 thousand or $0.18 basic earnings per share. This represents an increase of 9% over the same period of the prior year, $674 thousand or $0.17 basic earnings per share at June 30, 2019.
Second Quarter 2020 Financial Highlights (annualized)
Return on Average Assets (ROAA): 0.75%
Net Interest Margin (NIM): 3.59%
Efficiency Ratio: 68.92%
The Bank committed all possible resources to supporting businesses in the community through its participation in the Small Business Administration’s Paycheck Protection Program (PPP). Anker Fanoe, President and CEO, affirmed, “The opportunity to provide stabilizing assistance to local businesses has been both humbling and rewarding for our team.” Carol Corsetti, EVP & Chief Credit Officer, stated, “We funded approximately 500 PPP loans totaling $87 million which we believe saved approximately 3,000 local jobs.” Mr. Fanoe commented that “Net revenue, attributed to the PPP loans for the three months ended June 30, 2020, was $250 thousand. The yield, while lower than our other loan assets, is 2.48% for the PPP loan sector.”
As of June 30, 2020, total assets were $424.3 million. Since March 31, 2020, total assets have increased $90 million or 27%, and $103 million or 32% since June 30, 2019. The increase is primarily attributable to the PPP loans funded in the second quarter of 2020.
Total gross loans outstanding, excluding PPP loans, were $258 million as of June 30, 2020. This exceeded gross loan balances at June 30, 2019, by $15 million representing an increase of 6% year-over-year. Non-PPP loans decreased slightly in the second quarter when compared with the first quarter of 2020 by $6.6 million. The Bank’s asset quality in 2020 was good with non-accruing assets accounting for less than 1% of the Bank’s total assets at June 30, 2020, and no loans greater than 30 days past-due.
Shareholder Equity was $37.2 million at June 30, 2020, representing growth of $2.9 million over a year ago. This increase was the result of strong profitability. The Bank is considered to be well capitalized and its Capital Ratios well exceed regulatory minimums.
Net Interest Income, before the Provision for Loan Losses, was $3.4 million, $3.2 million and $3.0 million for the three months ending June 30, 2020, March 31, 2020, and June 30, 2019, respectively. Year-to-date Net Interest Income was $6.5 million, an increase of $623 thousand, or 11%, year-over-year.
For the three months ended June 30, 2020, Non-Interest Income was $179 thousand compared with March 31, 2020, at $157 thousand, and $149 thousand for the same period of 2019, representing increases of 14% and 20% respectively. Non-Interest Income year-to-date of $336 thousand increased 20% compared with the same period of 2019.