Press Releases
4/30/2009 - PREMIER VALLEY BANK ANNOUNCED ITS FIRST QUARTER 2009 FINANCIAL RESULTS
In addition, the Bank announced revisions to its previously-reported unaudited consolidated financial position for the year ended December 31, 2008.
FRESNO, CALIFORNIA - April 30, 2009 - Premier Valley Bank (OTC Bulletin Board PVLY) today announced its first quarter 2009 financial results. Net income for the first quarter of 2009 totaled $606 thousand ($.05 per share), a 41% decrease compared to $1.02 million ($.09 per share) for the quarter ended March 31, 2008. At March 31, 2009, total assets stood at $475 million, down from $488 million at December 31, 2008 and from $485 million at March 31, 2008. As of March 31, 2009, deposits totaled $409 million, basically flat compared to March 31, 2008, while loans outstanding were $369 million, a 9% improvement over the last twelve months. Shareholders' equity at March 31, 2009 was approximately $57 million, reflecting a very strong capital ratio of 12% of total assets.
In addition, the Bank announced revisions to its previously-reported unaudited consolidated financial position and results of operations for the year ended December 31, 2008, including filing of an amended Consolidated Reports of Condition and Income (Call Report) as of December 31, 2008. The revisions result from a re-examination of the Bank's impairment valuation methodologies and a determination that additional impairment deterioration needed to be recognized. Management completed the re-examination process following an internal assessment which was conducted in light of concerns over unstable national and local economic conditions.
The revision of the previously-reported unaudited consolidated financial position and results of operations for the year ended December 31, 2008 is related to 1) the recognition of an additional valuation adjustment for an other than temporarily impaired investment security in the amount of approximately $1.9 million ($1.1 million after tax), reflective of the highly volatile and illiquid nature of the securities markets at this time; 2) the recognition of an additional valuation adjustment for a stalled real estate development project in the amount of approximately $2.0 million ($1.2 million after tax), which was based on an updated appraisal and is reflective of the continuing deterioration and distressed nature of the local real estate market; and 3) the timing of charge off of a collateral dependent loan. As a result, the Bank is reporting net income for the year ended December 31, 2008 of $1.0 million ($.08 per share) rather than $3.3 million ($.28 per share) as previously reported.
J. Mike McGowan, President and Chief Executive Officer, stated, "The revision of our previously-reported unaudited December 31, 2008 consolidated financial position and results of operations and amended Call Report are based upon non-cash charges related to the determination of the fair value of two assets. Premier Valley Bank remains in a very strong financial position with capital ratios well in excess of amounts to be considered well capitalized by all regulatory standards."
"The 2009 first quarter results are clearly reflective of the current environment in which we operate, significantly impacted by unprecedented low short-term interest rates and continuing softness in local economic conditions, including real estate markets. However, we have adjusted our business plan, refocused on the basics, and remain committed to being in a position to take advantage of the opportunities that will be available when this economic cycle turns."
Premier Valley Bank is a full service bank known as "THE" Business and Professional Bank in Central California and "THE" Community Bank Serving the Sierra. The Bank's Directors are Jerry E. Cook; Mateo F. De Soto, M.D.; Surinder P. Dhillon, M.D.; Linda F. East; Richard H. Lehman; Michael S. Mathiesen; J. Mike McGowan; Thomas G. Richards; and Joe Williams.
Cautionary Statement: This release may contain certain forward-looking statements which are not historical facts and may pertain to future operating results. These forward-looking statements are within the meaning of the Private Securities Litigation Reform Act of 1995. Any such statements are subject to risks and uncertainties that could cause the Bank's actual results to be materially different from the results discussed herein. These risks and uncertainties include those related to the economic environment particularly in the region where Premier Valley Bank does business, competitive products and pricing, general interest rate changes, the fiscal and monetary policies of the United States Government, credit risk management, regulatory actions, and other risks and uncertainties. Words such "anticipate," "believe," "estimate," "expect," "should," "intend," "project," and words or phrases of similar meaning are intended to identify forward-looking statements.
