SCVBank Reports First Quarter Results

 Board Chairman Scott Rushing reported that portfolio quality continues to demonstrate solid improvement with a low level of non current loans to total loans of just 1.21% at the end of the first quarter of 2013 just 63% of the loan loss reserve allowance, substantially below a common 100% maximum benchmark ratio. President Cheryl Knight commented that “this improvement will enhance earnings and, coupled with a strong loan loss reserve and continued reduction in classified loans, will enable the bank to focus more resources on the growth of new, good quality loans in our local community.”

SCVBank recorded a net loss from operations of $90,000 for the first quarter of 2013 compared to a net profit of $181,000 for the first quarter of 2012.  The increase in expenses in 2013 is primarily due to the hiring of two additional loan officers and additional loan support staff.  Chairman Rushing stated that “these results are consistent with the bank’s strategic plan to invest in the future growth of the bank and reflects the Board’s commitment to serve the lending needs of our community by hiring top notch, experienced staff who have the expertise that only a community bank can offer to the local business community.”

Declines in loan balances combined with downward pressure on interest rates for loans and investments have had an industry wide impact on bank earnings.  The additional loan staff combined with an aggressive marketing effort planned for 2013 to serve the unique credit needs of our local business community is intended to boost loan balances, which will improve earnings.