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Blue Valley Ban Corp. Announces Second Quarter 2018 Operating ResultsBlue Valley Ban Corp. (OTCQX: BVBC) (the "Company") today reported consolidated earnings for the quarter ended June 30, 2018 of $1.8 million compared to $1.1 million for the comparable period ended June 30, 2017. For the six months ended June 30, 2018, the Company earned $3.2 million compared to $2.0 million for the six months ended June 30, 2017. Earnings per common share for the quarter- and year-to-date periods ended June 30, 2018 was $0.32 and $0.58, respectively, compared to $0.20 and $0.37, respectively, for the quarter- and year-to-date periods ended June 30, 2017. Numerous key aspects of the operating results and financial condition for the Company reflected positive trends and results as of and during the periods ended June 30, 2018. Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp. commented, "We continue to be focused on realizing future business opportunities and developing relationships. Our loan quality is strong and foreclosed assets held for sale, net, are less than 0.09% of total assets. We remain committed to continued future prudent growth and improved operational efficiency." For the quarter ended June 30, 2018, net interest income increased by $434,000, or 7.7%. The Company's non-interest income increased by $618,000, or 53.9%, compared to the prior year period, primarily due to the Company's adoption of ASU 2016-01 which required the Company to measure equity investments at fair value and recognize the changes in fair value in net income. The Company recognized a net unrealized gain of $415,000 on equity securities during the quarter ended June 30, 2018. For the quarter ended June 30, 2018, the Company's non-interest expense increased by $352,000, or 7.0%, compared to the prior year period. The Tax Cuts and Jobs Act (Tax Reform) enacted in December 2017, positively impacted consolidated earnings in the second quarter of 2018. The Tax Reform reduced the Company's effective tax rate to 26% in the second quarter of 2018 compared to 37% in 2017. The lower effective tax rate resulted in a tax savings of approximately $246,000 for the quarter ended June 30, 2018. As a result of the volume and composition of loan growth and other factors used to determine the level of the allowance for loan losses, the Company recorded a $100,000 provision for loan loss for the quarter ended June 30, 2018, compared to no provision recorded during the same period in the prior year. The Company's ratio of total reserves to non-accrual loans was approximately 643% as of June 30, 2018, which exceeds the most recent Uniform Bank Performance Report (UBPR) peer group ratio of 451%. At June 30, 2018, the Bank's ratio of nonperforming loans to total loans for the Company's subsidiary, Bank of Blue Valley, was 0.18%, which compares favorably with the most recent UBPR peer group ratio of 0.67%. 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. 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 Company's market areas; legislative or regulatory changes; regulatory action; continued adverse developments in the Company's loan or investment portfolio; any inability to obtain funding on favorable terms; the Company's non-payment on Trust Preferred Securities or other debt; 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.
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