MORENO VALLEY, Calif., July 12, 2004 (PRIMEZONE) -- Valley Bank (OTCBB:VMOY), which agreed last month to be acquired by Spain's second largest bank, reported sharply higher earnings in the second quarter ended June 30.
The Moreno Valley-based community bank said it earned $420,000 or 17 cents a share, in the quarter. During the quarter the bank recorded a tax credit of $212,000. A year ago Valley Bank earned $115,000 or 5 cents a share. Year ago results included a $48,000 gain from the sale of assets and $67,000 in one-time expenses associated with valuing stock options. Without the one-time items, the bank would have earned $134,000 in the quarter.
"A restructured balance sheet and higher loan quality contributed to strong earnings growth," said Gene Wood, Valley Bank president and chief executive. "We continue to build on momentum that started in the first quarter."
In June, Valley Bank agreed to be acquired by a subsidiary of Banco Bilbao Vizcaya Argentaria, S.A., Spain's No. 2 bank, in a cash deal valued at about $16.7 million. The sale is set to close in the third quarter.
In the first six months of 2004, Valley Bank earned $731,000, or 29 cents a share, up from $358,000, or 24 cents a share, in the same period a year ago. Loans at the end of the second quarter reached $79.8 million, up from $63.5 million a year ago. Assets as of June 30 were $91.9 million, up from $84.4 million a year ago. Deposits were $82.1 million, up from $76.7 million 12 months earlier.
Problem loans at the end of the second quarter were down significantly. A year ago Valley Bank had $759,900 in non-performing loans. At the end of the first six months of 2004, it fell to $186,800.
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.