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8-K - FORM 8-K - BLUE VALLEY BAN CORP | c64608e8vk.htm |
Exhibit 99.1
Blue Valley Ban Corp.
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NEWS RELEASE | |||
11935 Riley |
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Overland Park, Kansas 66225-6128
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Contact: | Mark A. Fortino | ||
Chief Financial Officer | ||||
(913) 338-1000 |
For Immediate Release Wednesday, May 11, 2011
Blue Valley Ban Corp. Reports First Quarter 2011 Results
Overland Park, Kansas, May 11, 2011 Blue Valley Ban Corp. (OTCBB: BVBC) (the Company) today
announced a net loss for the quarter ended March 31, 2011 of $429,000, compared to net loss of
$873,000 for the quarter ended March 31, 2010, representing an improvement of 50.9%. The
fully-diluted loss per share was $0.25 for the three months ended March 31, 2011, from diluted loss
per share of $0.41 in the same period of 2010.
The Company continues to show improvement in its operating results, with improvements in net
interest income by 12.9%. The Companys subsidiary, Bank of Blue Valley, continues to maintain
capital levels in excess of the regulatory requirement for a well capitalized institution, as well
as maintains a strong liquidity position. We are working to continue this positive trend in
operating results, to improve the quality of our current loan portfolio, develop new lending
relationships and look for opportunities to expand our non-interest income. said Robert D.
Regnier, Chairman and CEO of Blue Valley Ban Corp.
Operating Results
During the first quarter of 2011, net interest income increased 12.9% to $4.1 million compared to
$3.6 million for the same period in the prior year. The increase was primarily due to a decline in
the interest expense, which decreased $1.5 million, or 36.7%, from the same period in 2010 as a
result of a decrease in rates paid on deposits. During 2010, the Company had funds from several
time deposit promotions mature, and as those higher rate time deposits matured they were renewed at
lower market rates. The increase was partially offset by a decline in interest income by $1.0
million, or 13.1%, as compared to the same period in 2010. The lower interest income was primarily
a result of a decline in the average outstanding loan balances by $57.8 million, or 10.7%, for the
three month period ended March 31, 2011, as compared to the prior year period, as a result of loan
payoffs, lower loan origination volume due to the current economic environment and loan
foreclosures.
There was no provision for loan losses for the three month period ended March 31, 2011, compared to
$250,000 provision for the same period in the prior year. The Company has experienced a reduction
in non-performing loans by $2.9 million, or 9.7%, since December 31, 2010, and $10.0 million, or
26.7%, since March 31, 2010, as management continues to work on improving the credit quality of the
loan portfolio. In addition, the Company has experienced a decline in net loan charge offs with a
net recovery of $24,000 at March 31, 2011, as compared to a net loan charge off of $1.0 million at
March 31, 2010. Based on analysis of the loan portfolio, no provision for loan losses was deemed
necessary.
Non-interest income decreased $169,000, or 10.7%, for the three month period ended March 31, 2011,
as compared to the same period in 2010. The decrease was primarily the result of lower mortgage
loans held for sale fee income during the first quarter of 2011 of $167,000, or 23.2%, as compared
with the first quarter of 2010. The decrease in mortgage loans held for sale fee income was a
result of a decline in residential mortgage loan origination and refinancing volume as a result of
the mortgage rate environment as compared to the prior year period. Also contributing to the
decrease was a decline in service fee income, specifically non-sufficient funds (NSF) charges and
service fees. NSF and service charges fee income decreased by $60,000, or 21.2%, due to fewer
overdraft items by our customers and a decrease in account service charges on commercial accounts.
Non-interest expense decreased $165,000, or 2.6%, for the three month period ended March 31, 2011,
as compared to the same period in the prior year. The decrease in non-interest expense was
attributed to the decrease in salaries and employee benefits of $152,000, or 5.1%. Salaries and
employee benefits have declined as a result of lower commissions paid due to the decline in the
volume of mortgage loan originations and refinancing for the three months ended March 31, 2011, as
compared to the same period in the prior year. Other factors contributing to the change was a
decrease in net occupancy expense by $69,000, or 9.4%, and an increase in other operating expense
by $56,000, or 2.1%, compared to the same period in 2010.
Total assets, loans and deposits at March 31, 2011 were $693.8 million, $476.8 million and $515.3
million, respectively, compared to $844.2 million, $527.1 million and $661.4 million one year
earlier, respectively, decreases of 17.8%, 9.6% and 22.1% for assets, loans and deposits,
respectively. As of March 31, 2011, the Companys subsidiary, Bank of Blue Valley, maintained
capital levels in excess of regulatory requirements for a well capitalized institution.
About Blue Valley Ban Corp.
Blue Valley Ban Corp. is a bank holding company that, through its subsidiaries, provides banking
services to closely-held businesses, their owners, professionals and individuals in Johnson County,
Kansas. In addition, the Company originates residential mortgages locally and nationwide through
its InternetMortgage.com website.
This release contains forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. The Company intends 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, and is including this statement for purposes of those
safe harbor provisions. Forward-looking statements, which are based on certain assumptions and
describe future plans, strategies and expectations of the Company, can generally be identified by
use of the words anticipate, believe, can, continue, could, estimate, expect,
intend, may, plan, potential, predict, project, should, or the negative of these
terms or other comparable terminology. The Company is unable to predict the actual results of its
future plans or strategies with certainty. Factors which could have a material adverse effect on
the operations and future prospects of the Company include, but are not limited to, fluctuations in
market rates of interest and loan and deposit pricing; inability to maintain or increase deposit
base and secure adequate funding; a continued deterioration of general economic conditions or the
demand for housing in the Companys market areas; a deterioration in the demand for mortgage
financing; legislative or regulatory changes; regulatory action; continued adverse developments in
the Companys loan or investment portfolio; any inability to obtain funding on favorable terms; the
Companys non-payment on TARP funds or Trust Preferred Securities; the loss of key personnel;
significant increases in competition; potential unfavorable actions from rating agencies; potential
unfavorable results of litigation to which the Company may become a party, and the possible
dilutive effect of potential acquisitions or expansions. These risks and uncertainties should be
considered in evaluating forward-looking statements and undue reliance should not be placed on such
statements. We operate in a very competitive and rapidly changing environment. New risks emerge
from time to time, and it is not possible for us to predict all risk factors. Nor can we address
the impact of all factors on our business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in any forward-looking
statements.
BLUE VALLEY BAN CORP.
FIRST QUARTER 2011
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(unaudited)
FIRST QUARTER 2011
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(unaudited)
2011 | 2010 | |||||||
Three Months Ended March 31
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Net interest income |
$ | 4,111 | $ | 3,641 | ||||
Provision for loan losses |
| 250 | ||||||
Non-interest income |
1,404 | 1,573 | ||||||
Non-interest expense |
6,188 | 6,353 | ||||||
Net loss |
(429 | ) | (873 | ) | ||||
Net loss available to common stockholder |
(701 | ) | (1,145 | ) | ||||
Net loss per share Basic |
(0.25 | ) | (0.41 | ) | ||||
Net loss per share Diluted |
(0.25 | ) | (0.41 | ) | ||||
Return on average assets |
(0.25 | )% | (0.44 | )% | ||||
Return on average equity |
(8.13 | )% | (12.04 | )% | ||||
At March 31 |
||||||||
Assets |
$ | 693,776 | $ | 844,228 | ||||
Mortgage loans held for sale |
352 | 2,604 | ||||||
Loans |
476,764 | 527,121 | ||||||
Deposits |
515,316 | 661,361 | ||||||
Stockholders Equity |
56,368 | 59,583 |