Earnings Up 21% and Growth Up 32% Year-over-Year
Salinas, CA – February 8, 2021 – Pacific Valley Bank (OTC Pink: PVBK) announced its unaudited earnings results for 2020. Net Income for the twelve months ended December 31, 2020, was $3.25 million representing an increase of 21% compared with the same period of 2019. Earnings per share for the year 2020 were $0.81 compared with $0.67 for the year 2019. Net Income for the fourth quarter was $939 thousand or $0.24 basic earnings per share.
Fourth Quarter 2020 Financial Highlights (annualized)
Return on Average Assets (ROAA): 0.75%
Net Interest Margin (NIM): 3.68%
Efficiency Ratio: 65.99%
As of December 31, 2020, total assets were $464.9 million. Since September 30, 2020, total assets have increased $44.7 million or 11%, and since December 31, 2019, total assets have increased by $113.9 million or 32%. Anker Fanoe, President and CEO, commented, “Pacific Valley Bank was able to post record earnings for 2020 despite the extraordinary economic circumstances faced throughout the year.” Fanoe continued, “Our staff rose to the challenge of supporting our community and our clients by providing outstanding customer service and responsiveness at a time when it was needed most.”
Total gross loans outstanding were $338.7 million as of December 31, 2020, which includes $73.2 million in Paycheck Protection Program (PPP) loans. This exceeded gross loan balances at December 31, 2019, by $72.7 million representing an increase of 27% year-over-year; however, gross loans net of PPP loans decreased slightly when compared to December 31, 2019. The Bank posted a $300 thousand provision for the loan loss allowance during the fourth quarter of 2020 due to continued economic uncertainties surrounding the COVID-19 pandemic.
Shareholder Equity was $39.2 million at December 31, 2020, representing growth of $3.3 million, or 9.3% over a year ago. 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 $3.9 million, $3.6 million and $3.2 million for the three months ending December 31, 2020, September 30, 2020, and December 31, 2019, respectively. Net Interest Income for 2020 was $14.1 million, an increase of $1.8 million, or 23%, year-over-year.
For the three months ended December 31, 2020, Non-Interest Income was $225 thousand compared with September 30, 2020, at $218 thousand, and $139 thousand for the same period of 2019, representing increases of 3% and 62%, respectively. Non-Interest Income for 2020 of $779 thousand increased 37% compared with 2019.