River Valley Community Bank earned, after tax, $284,102 for the quarter ended December 31, 2010, and $1,042,123 for the full year. The quarterly and annual results both represent records for the Bank compared to the previous bests of $282,067 and $667,565 earned in the fourth quarter and full year in 2009. The Bank has now posted 14 consecutive profitable quarters.
Total Assets and Total Deposits of $136,170,200 and $119,410,908 were also at record levels at year-end. Core deposits (total deposits less time deposits) were $101,513,002 at December 31, 2010. This represents a 44 percent improvement over the $70,683,266 recorded at year-end 2009.
Gross loans declined 4 percent from a year prior to $43,460,892 due to the continued deleveraging by businesses and consumers and increased pay downs by the Bank’s agricultural borrowers who generally experienced improved operating results. The investment portfolio was $64,801,749 at December 31, 2010. Shareholder Equity increased to $16,323,879 from $15,442,791 at the end of 2009.
Net Interest Income was $4,260,599 for the year, a 16 percent increase over 2009. This is worth noting considering the Net Interest Margin (NIM) fell to 4.18 percent in the fourth quarter of this year compared to 4.43 percent in the same period the year previous.
River Valley Community Bank anticipates the downward compression in NIM will continue until they see loan demand increase and resumption in the growth of their loan portfolio. The Efficiency Ratio of 53 percent for the quarter was at the best level ever. Return on Equity and Return on Assets were 6.78 percent and .90 percent respectively.
Mr. John I. Jelavich, President and CEO of River Valley Community Bank commented, “2010, again was an outstanding year for the Bank; core deposit growth clearly exceeded our expectations as our calling efforts and referrals continued to create new opportunities. After Tax Net Income increased a dramatic 56% over 2009. We did however fall short on our loan growth targets as acceptable opportunities were limited due to economic conditions. We have completed the realignment of our lending team and as we now begin to see signs of economic recovery, we are well positioned for growing our loan portfolio in 2011 and beyond. At year end we had no loans past due of 30 days or more and continue to be well reserved for potential credit losses. Our strong and improving financial position will continue to serve us well as we go forward.”
River Valley Community Bank offers personal and commercial banking services. Founded in 2006, River Valley Community Bank is located at 1629 Colusa Avenue, Yuba City, California.
For more information visit: www.rivervalleycommunitybank.com