- Strong Credit Quality and Core Deposits
- Strong Capital Ratios
- Strong Liquidity
Company Website:
http://www.SCVBank.com
SANTA PAULA, Calif. -- (Business Wire)
Santa Clara Valley Bank (SCVBank; OTCBB: SCVE) Chairman of the Board,
Leslie Cornejo, today announced the Bank's 2014 third quarter results.
Board Chairman Leslie Cornejo reported that portfolio quality continues
to demonstrate solid performance. Past due plus non-accrual loans
achieved a record low of 0.41% of loans outstanding, with credit
strength further demonstrated by just $7,638 in net loan losses,
year-to-date 2014.
SCVBank continues to maintain a strong capital position with a Tier 1
Leverage Capital Ratio of 11.06%, up from 10.83% at December 31, 2013.
Liquidity continues to be very strong as cash, interest bearing deposits
at financial institutions and investments totaled 47% of total assets at
quarter end.
SCVBank recorded a net loss of $239,000 for the third quarter of 2014
compared to a net loss of $25,000 for the third quarter of 2013.
Expenses in the third quarter included $150,000 related to the upcoming
merger with the Bank of the Sierra, scheduled for the fourth quarter of
2014. The year to date net loss through September 2014 was $368,000
compared to a net loss of $116,000 for the same nine month period in
2013. The net losses are primarily attributable to declining loan
balances from 2013 to 2014.
President Cheryl Knight commented that, "Challenges remain due
to weak loan demand and very low interest rates; however, loans in
process have recently increased and core deposits continue to be very
strong.” Chairman Cornejo added that, “The bank continues to seek
good quality business and commercial real estate loans in Ventura County
and North Los Angeles County.As good quality loans are funded,
the financial performance of SCVBank will continue to strengthen.”
Founded in 1998, SCVBank currently operates three branches in Santa
Paula, Fillmore, and Valencia. Executive and Loan Offices are located at
866 East Main Street, Santa Paula, Ca. Under its stock symbol of SCVE,
SCVBank’s stock is traded through McAdams Wright Ragen, Raymond James &
Associates Inc., and Monroe Securities. The Bank’s web site is www.SCVBank.com.
Santa Clara Valley Bank Corporation Headquarters
901 East Main
Street
Santa Paula, California 93060
(805) 525-1999
FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking information about
Santa Clara Valley Bank (the “Company”), that is intended to be covered
by the safe harbor for “forward looking statements” provided by the
Private Securities Litigation Reform Act of 1995. All statements other
than statements of historical fact are forward-looking statements. Such
statements involve inherent risks and uncertainties, many of which are
difficult to predict and are generally beyond the control of the
Company. Forward-looking statements speak only as of the date they are
made and we assume no duty to update such statements. We caution readers
that a number of important factors could cause actual results to differ
materially from those expressed in, implied or projected by, such
forward-looking statements. Risks and uncertainties include, but are not
limited to: lower than expected revenues; credit quality deterioration
or a reduction in real estate values could cause an increase in the
allowance for credit losses and a reduction in net earnings; increased
competitive pressure among depository institutions; the possibility that
personnel changes will not proceed as planned; a change in the interest
rate environment reduces net interest margins; asset/liability repricing
risks and liquidity risks; legal matters could be filed against the
Company and could take longer or cost more than expected to resolve or
may be resolved adversely to the Company; general economic conditions,
either nationally or in the market areas in which the Company does or
anticipates doing business, are less favorable than expected;
environmental conditions, including natural disasters and drought, may
disrupt our business, impede our operations, negatively impact the
values of collateral securing the Company’s loans and leases or impair
the ability of our borrowers to support their debt obligations; the
economic and regulatory effects of the continuing war on terrorism and
other events of war, including the conflicts in the Middle East;
legislative or regulatory requirements or changes adversely affecting
the Company’s business; and changes in the securities markets.
Additional risks and uncertainties relating to the proposed transaction
with Sierra Bancorp and the Bank of Sierra include, but are not limited
to: the ability to complete the proposed transaction, including
obtaining regulatory approvals and approvals by the shareholders of the
Company; the length of time necessary to consummate the proposed
transaction; unexpected costs relating to the proposed transaction; and
the potential impact on the institutions’ respective businesses as a
result of uncertainty surrounding the proposed transaction. If any of
these risks or uncertainties materializes or if any of the assumptions
underlying such forward-looking statements proves to be incorrect, the
Company’s results could differ materially from those expressed in,
implied or projected by such forward-looking statements. The Company
assumes no obligation to update such forward-looking statements.
SIERRA, BANK OF SIERRA AND SANTA CLARA VALLEY BANK
MERGER ANNOUNCEMENT
On July 17, 2014, an announcement was issued that the Company, Sierra
Bancorp, Bank of Sierra had entered into an Agreement and Plan of
Consolidation (the “Consolidation Agreement”) pursuant to which Sierra
Bancorp will acquire the Company through a series of steps whereby Santa
Clara Valley Bank will be merged in to Bank of Sierra (the “Merger”).
Bank of Sierra will survive the Merger and will continue the commercial
banking operations of the combined bank following the Merger. Under the
terms of the Consolidation Agreement, holders of Company common stock
will receive $6.00 per share for each share of Company common stock. The
holders of all outstanding shares of Company preferred stock, will
receive, in exchange for those shares, $1,000.00 per share. The Merger
is subject to customary closing conditions, including regulatory and
shareholder approvals.
In connection with the proposed Merger the Company will hold a meeting
of its shareholders to approve the Merger on October 29, 2014. A
definitive proxy statement was mailed to the shareholders of the Company
on or about September 22, 2014, seeking the required stockholder
approval of the Merger by Company security holders. Before making any
voting decision, security holders of the Company are urged to carefully
read the entire proxy statement as well as any amendments or supplements
thereto, because it contains important information about the proposed
transaction. Company security holders will be able to obtain the proxy
statement free of charge from the Company by writing to Santa Clara
Valley Bank, N.A., 901 East Main Street, Santa Paula, California 93060,
Attention: Cheryl Knight, President and Chief Executive Officer.
The Company and its directors and executive officers may be deemed to be
participants in the solicitation of proxies from the shareholders of the
Company in connection with the transaction. Information about the
directors and executive officers of the Company is set forth in the
proxy statement.
Additional information regarding the interests of these participants and
other persons who may be deemed participants in the Merger may be
obtained by reading the proxy statement regarding the Merger.
This communication does not constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of any
vote or approval.
Santa Clara Valley Bank, N. A. |
|
|
| |
|
| |
| | | | | | |
|
Balance Sheets | | | | Unaudited | | | Audited |
| | | | September 30, 2014 | | | December 31, 2013 |
Assets: | | | | | | | |
Cash and noninterest-bearing due from banks
| | | |
$
|
2,836,000
| | | |
$
|
4,006,000
| |
Federal funds sold and interest bearing deposits
| | | | | | | |
at financial institutions
| | | | |
13,093,000
| | | | |
5,900,000
| |
Investments
| | | | |
44,969,000
| | | | |
50,001,000
| |
Loans
| | | | |
63,370,000
| | | | |
66,233,000
| |
Allowance for loan losses
| | | | |
(1,165,000
|
)
| | | |
(1,173,000
|
)
|
Other assets
| | | |
|
6,288,000
|
| | |
|
6,400,000
|
|
Total Assets
| | | |
$
|
129,391,000
|
| | |
$
|
131,367,000
|
|
| | | | | | |
|
Liabilities and Stockholders' Equity: | | | | | | | |
Deposits
| | | |
$
|
107,318,000
| | | |
$
|
111,639,000
| |
Borrowed Funds
| | | | |
8,000,000
| | | | |
6,000,000
| |
Other liabilities
| | | | |
251,000
| | | | |
344,000
| |
Stockholders' equity
| | | |
|
13,822,000
|
| | |
|
13,384,000
|
|
Total Liabilities and Stockholders' Equity
| | | |
$
|
129,391,000
|
| | |
$
|
131,367,000
|
|
| | | | | | |
|
Book value per common share
| | | |
$
|
5.60
| | | |
$
|
5.39
| |
Common shares outstanding (end of period)
| | | | |
1,932,167
| | | | |
1,926,167
| |
Tier 1 leverage ratio
| | | | |
11.06
|
%
| | | |
10.84
|
%
|
Total risk-based capital ratio
| | | | |
22.29
|
%
| | | |
21.35
|
%
|
| | | | | | |
|
| | | | For the Three Months Ended |
Statements of Income(unaudited)
| | | | September 30, 2014 | | | September 30, 2013 |
Interest income
| | | |
$
|
1,081,000
| | | |
$
|
1,210,000
| |
Interest expense
| | | |
|
49,000
|
| | |
|
97,000
|
|
Net interest income
| | | | |
1,032,000
| | | | |
1,113,000
| |
Provision for loan losses
| | | | |
-
| | | | |
-
| |
Noninterest income
| | | | |
164,000
| | | | |
196,000
| |
Noninterest expense
| | | |
|
1,435,000
|
| | |
|
1,334,000
|
|
Income (loss) before taxes
| | | | |
(239,000
|
)
| | | |
(25,000
|
)
|
Income tax provision
| | | |
|
-
|
| | |
|
-
|
|
Net Income (Loss)
| | | | |
(239,000
|
)
| | | |
(25,000
|
)
|
Preferred stock dividends or accretion
| | | |
|
-
|
| | |
|
-
|
|
Net income (loss) applicable to common shares
| | | |
$
|
(239,000
|
)
| | |
$
|
(25,000
|
)
|
Income (Loss) per common share, basic
| | | | |
($0.12
|
)
| | | |
($0.01
|
)
|
Return on average assets
| | | | |
0.72
|
%
| | | |
-0.08
|
%
|
Return on average equity
| | | | |
-6.40
|
%
| | | |
-0.70
|
%
|
| | | | | | |
|
| | | | Year to date through |
Statements of Income
(unaudited) | | | | September 30, 2014 | | | September 30, 2013 |
Interest income
| | | |
$
|
3,365,000
| | | |
$
|
3,714,000
| |
Interest expense
| | | |
|
158,000
|
| | |
|
310,000
|
|
Net interest income
| | | | |
3,207,000
| | | | |
3,404,000
| |
Provision for loan losses
| | | | |
-
| | | | |
-
| |
Noninterest income
| | | | |
496,000
| | | | |
620,000
| |
Noninterest expense
| | | |
|
4,071,000
|
| | |
|
4,140,000
|
|
Income (loss) before taxes
| | | | |
(368,000
|
)
| | | |
(116,000
|
)
|
Income tax provision
| | | |
|
-
|
| | |
|
-
|
|
Net Income (Loss)
| | | |
$
|
(368,000
|
)
| | |
$
|
(116,000
|
)
|
Preferred stock dividends or accretion
| | | |
|
-
|
| | |
|
-
|
|
Net income (loss) applicable to common shares
| | | |
$
|
(368,000
|
)
| | |
$
|
(116,000
|
)
|
Income (Loss) per common share, basic
| | | | |
($0.19
|
)
| | | |
($0.08
|
)
|
Return on average assets
| | | | |
-0.39
|
%
| | | |
-0.12
|
%
|
Return on average equity
| | | | |
-3.64
|
%
| | | |
-1.09
|
%
|
Contacts:
Santa Clara Valley Bank
Cheryl Knight, 805-525-1999
President
and Chief Executive Officer
or
Fred Antrim, 805-525-5871
Executive
Vice President & Chief Financial Officer
Source: Santa Clara Valley Bank
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