Salinas, CA – November 6, 2019 – Pacific Valley Bank (OTC Pink: PVBK) announced its unaudited third quarter 2019 Net Income of $786 thousand or $0.20 basic earnings per share. Net Income for the first nine months of 2019 was $2,007,687 or $0.50 basic earnings per share, compared to the first nine months of 2018 with a reported $1,953,304 or $0.49 basic earnings per share.

Third Quarter 2019 Financial Highlights (annualized)
Return on Average Assets (ROAA): 0.96%
Net Interest Margin (NIM): 3.78%
Efficiency Ratio: 65.49%
Total Assets were at a record high: $340.3 million

Year to Date 2019 Financial Highlights (annualized)
Return on Average Assets (ROAA): 0.85%
Net Interest Margin (NIM): 3.91%
Efficiency Ratio: 69.85%

“Pacific Valley Bank has seen strong, sustained growth in 2019. Total asset growth equated to 21%, or $59 million over September 2018. Net interest income increased $1.0 million over the first nine months of 2018, although the Bank did see some margin compression due to higher rates on deposits, most of which are due to mature/re-price in the last quarter of 2019,” stated Anker Fanoe, President and CEO. “Our team is extremely pleased with the Bank’s financial performance thus far in 2019. I am very pleased to announce that Pacific Valley Bank is recognized as a 5-Star Bank by Bauer Financial.”

Total assets were $340.3 million, as of September 30, 2019. This equates to a 21% increase over total assets at September 30, 2018. As of September 30, 2019, total loans outstanding were $252.3 million, exceeding gross loan balances at September 30, 2018 by $22.1 million, or 10%. Much of the loan growth in 2019 has been in real estate secured commercial properties and commercial and industrial loans. At September 30, 2019, non-performing assets accounted for less than 1% of the Bank’s total loans outstanding. Much of this is due to the Bank’s strong underwriting and review processes. Total deposits increased $18.1 million for the three months ended at September 30, 2019, landing at $303.5 million. Since September 30, 2018, total deposits have increased $56 million, or 23%.

Shareholder Equity was $35.1 million at September 30, 2019, representing growth of $2.7 million since September 30, 2018. This increase was the result of strong profitability. The Bank is considered to be well capitalized and its Capital Ratios well exceed regulatory minimums.

Capital Ratios as reported in the September 30, 2019 Call Report:
Leverage Ratio 10.74%
Tier 1 Capital Ratio 13.64%
Total Capital Ratio 14.90%

For the first nine months of 2019, Net Interest Income totaled $9.0 million, increasing 12% over the same period in 2018. This is explained by income on the aforementioned growth in gross loan balances, as well as the increased deposit balances being swept into overnight investments.

At September 30, 2019, Non-Interest Income was $430 thousand, increasing by approximately $150 thousand each quarter in 2019. Year to date in 2019, operating costs were $6.6 million, a modest increase of 7% compared with 2018 year to date.

View 3Q 2019 Earnings Release

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