Salinas, CA – September 28, 2020 – Pacific Valley Bank (OTC Pink: PVBK) announced its unaudited third quarter 2020 Net Income of $979 thousand or $0.25 basic earnings per share. This represents a 25% increase over the same period of the prior year. Earnings per share for the first nine months of 2020 was $0.58 compared with $0.50 for the first nine months of 2019.
Third Quarter 2020 Financial Highlights (annualized)
Return on Average Assets (ROAA): 0.93%
Net Interest Margin (NIM): 3.66%
Efficiency Ratio: 68.06%
Anker Fanoe, President and CEO, commented, “We are once again pleased with our strong quarterly results which saw net income increase by 33% from $786 thousand in the third quarter of 2019 to $979 thousand in the same quarter of 2020. Since the onset of the COVID-19 pandemic, we have worked closely with those customers requiring hardship relief, including loan forbearance, waived fees and other accommodations, when appropriate. We were very pleased to see loan balances with COVID-related modifications drop from $32.2 million at June 30, 2020, to $18.3 million which equates to 7% of non-PPP loans at September 30, 2020.” 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 $261 million as of September 30, 2020. This exceeded gross loan balances at September 30, 2019, by $8 million representing an increase of 3% year-over-year. Non-PPP loans increased slightly in the third quarter when compared with the second quarter of 2020 by $86 thousand. 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 September 30, 2020, and no loans greater than 30 days past-due.
Shareholder Equity was $38.2 million at September 30, 2020, representing growth of $3.1 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 $3.6 million, $3.4 million and $3.1 million for the three months ending September 30, 2020, June 30, 2020, and September 30, 2019, respectively. Year-to-date Net Interest Income was $10.2 million, an increase of $1.1 million, or 12%, year-over-year.
For the three months ended September 30, 2020, Non-Interest Income was $218 thousand compared with June 30, 2020, at $179 thousand, and $150 thousand for the same period of 2019, representing increases of 22% and 45%, respectively. Non-Interest Income year-to-date of $554 thousand increased 29% compared with the same period of 2019.