MORENO VALLEY, Calif., April 29, 2004 (PRIMEZONE) -- Valley Bank (OTCBB:VMOY), a community bank that serves the fast-growing Inland region of Southern California, reported record results in the first quarter ended March 31, 2004.
The Moreno Valley-based bank earned $310,000, or 12 cents a share, in the quarter. During the same period a year ago, the bank reported net income of $206,000, or 8 cents a share. Results from 2003 included $304,000 from the sale of a surplus building and property.
"Steps we took last year to improve the balance sheet and loan quality paid off," said Gene Wood, Valley Bank president and chief executive. "Solid growth in core earnings in the first quarter shows we are on track for a strong performance in 2004."
An increase in overall loans and a decline in problem loans allowed the bank to report net interest income of $1.2 million, up from $844,000 a year ago. At the same time, interest expense in the quarter fell to $87,000 from $108,000 a year ago.
At the end of the first quarter, Valley Bank had $71.2 million in loans, a 12.3 percent increase from $63.4 million a year ago.
Non-interest income from the sale of loans, fees and mortgage originations reached $627,000 in the quarter, down slightly from $651,000 reported a year ago. Non-interest expenses, which included employee salaries and benefits and facility costs, were $1.5 million in the quarter, up from $1.2 million a year earlier.
Problem loans in the quarter were down dramatically. In the first quarter of 2004, Valley Bank had $266,000 in non-accruing loans. A year ago problem and non-accrual loans stood at about $2.7 million.
Assets as of March 31, were $89.3 million, up 12.5 percent from $79.4 million 12 months earlier.
Valley Bank is a 44-year-old state-chartered community bank with branches in Moreno Valley, Grand Terrace, the Woodcrest area of Riverside and Perris, a construction loan center in Moreno Valley and a mortgage loan office in Fontana.