Valley Republic Bancorp Announces Third Quarter 2017 Financial Results

BAKERSFIELD, Calif., Oct. 19, 2017 /PRNewswire/ -- Valley Republic Bancorp (OTCQX: VLLX) today announced its financial results for the quarter which ended September 30, 2017.

Highlights for the 3^nd Quarter of 2017 Compared to the 3^nd Quarter of 2016:

• Net income ? up 40%
• Net loans - up 20%
• Deposits - up 24%
• Total assets - up 22%
• Basic earnings per share ? up 36% ($0.45 vs. $0.33)
• Book value per share ? up $1.39 ($15.49 vs. $14.10)

Financial Performance

Valley Republic Bancorp reported record net income for the third quarter of 2017 of $1,632,000, compared to $1,165,000 for the same quarter in the prior year, an increase of $467,000, or 40%.  Basic earnings per share for the third quarter of 2017 were $0.45, compared to $0.33 basic earnings per share reported for the same quarter last year. 

As of September 30, 2017, year to date net income was $4,292,000, compared to $3,312,000 for the same period in the prior year. This represents an increase of $980,000, or 30%, year over year. Basic earnings per share were $1.20 as of September 30, 2017 compared to $0.94 in the same period in the prior year.

Bruce Jay, President & CEO, stated, "We are pleased with Valley Republic Bank's performance in 2017, including record earnings in the 3^rd quarter.  Deposit and loan growth have been exceptional all year.  Our previous investment in infrastructure has created the capacity to grow assets without a comparable increase in overhead, which is driving record profitability."

Growth

Total assets were $669,565,000 at the end of the third quarter 2017, an increase of $90,510,000, or 16%, compared to $579,055,000 at year-end 2016. Total assets grew $121,476,000, or 22%, compared to $548,089,000 at the end of the third quarter of 2016.      

Total net loans were $434,787,000 at September 30, 2017, representing an increase of $50,239,000, or 13%, compared to $384,548,000 at December 31, 2016, and an increase of $71,572,000, or 20%, compared to $363,215,000 at September 30, 2016.   At September 30, 2017, the Bank had no nonperforming loans or loan payments that were more than 30 days delinquent. 

At September 30, 2017, total deposits were $605,689,000, an increase of $87,189,000, or 17%, compared to $518,500,000 at year-end 2016. Total deposits were up approximately $115,473,000, or 24%, compared to $490,216,000 at September 30, 2016.    

Bruce Jay further stated, "The growth of Valley Republic Bank, not only during 2017 but since inception in 2009, has been remarkable.  Out of approximately 5,800 banks in the United States, Valley Republic Bank is now in the top 20%, ranked by size.  To surpass over 4,700 banks in just eight and a half years is a tribute to the greater Bakersfield community and the entire team at Valley Republic Bank."

Capital

Total shareholders' equity at September 30, 2017 was $55,536,000, an increase of $5,057,000, or 10%, compared to $50,479,000 at December 31, 2016. Total shareholders' equity increased by $5,819,000, or 12%, compared to $49,717,000 at September 30, 2016.

According to Eugene Voiland, Chairman of the Board, "The Board of Directors remains engaged in the oversight of Valley Republic Bancorp and Valley Republic Bank to ensure a safe Company that provides quality banking services on a relationship basis for the Bakersfield and Kern County market.  In addition to strong capital, our high quality loan portfolio, with no delinquent or nonperforming assets, provides that assurance."

About Valley Republic Bancorp and Valley Republic Bank

Valley Republic Bancorp is a bank holding company formed in 2016. Valley Republic Bank, a wholly-owned subsidiary of Valley Republic Bancorp, is a community bank headquartered in Bakersfield, California. The Bancorp is subject to the regulatory oversight of the Federal Reserve Bank, and the Bank is subject to the regulatory oversight of the Federal Deposit Insurance Corporation and the California Department of Business Oversight. Valley Republic Bank is an insured, state-chartered, non-member bank of the Federal Reserve System. The Bank is in its ninth year of operation, having been established in 2009. Valley Republic Bank is a full-service, community bank with three full-service banking offices in Bakersfield and one full-service banking office in Delano. Valley Republic Bank emphasizes professional, high quality banking services provided to a wide range of businesses and professionals. The Bank also provides a full complement of banking services that are available to individuals and non-profit organizations.  

Forward Looking Statements

This news release may include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended, and Valley Republic Bancorp and Valley Republic Bank (together, the "Company") intend for such forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. Future events are difficult to predict, and the expectations described above are necessarily subject to risk and uncertainty that may cause actual results to differ materially and adversely.

Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could," or "may." These forward-looking statements are not guarantees of future performance, nor should they be relied upon as representing management's views as of any subsequent date. Forward-looking statements involve significant risks and uncertainties and actual results may differ materially from those presented, either expressed or implied, in this news release. Factors that might cause such differences include, but are not limited to: the Company's ability to successfully execute its business plans and achieve its objectives; changes in general economic and financial market conditions, either nationally or locally, in areas in which the Company conducts its operations; changes in interest rates; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; increased competitive challenges and expanding product and pricing pressures among financial institutions; legislation or regulatory changes which adversely affect the Company's operations or business; loss of key personnel; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies.

The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

SOURCE Valley Republic Bancorp