CORRECTION – River Valley Community Bancorp Announces 1st Quarter Results (Unaudited)

YUBA CITY, Calif., April 20, 2022 (GLOBE NEWSWIRE) — In a release issued under the same headline on Tuesday, April 19, 2022 by River Valley Community Bancorp (OTC markets: RVCB), please note that the quotes from the CFO and the CEO following the financial tables have been revised. The corrected release follows:

River Valley Community Bancorp Announces 1st Quarter Results (Unaudited)

River Valley Community Bancorp (OTC markets: RVCB) with its wholly owned subsidiary, River Valley Community Bank (collectively referred to as the “Bank”), today announced financial results for the quarter ended March 31, 2022.

Consolidated financial highlights:

• Net income for the quarter ended March 31, 2022 totaled $1.1 million or $0.36 per diluted share compared to $1.4 million or $0.46 per diluted share for the quarter ended December 31, 2021 and $1.2 million or $0.42 per diluted share for the quarter ended March 31, 2021.
• Net interest income totaled $3.9 million for the quarter ended March 31, 2022 compared to $4.1 million for the quarter ended December 31, 2021 and $3.8 million for the quarter ended March 31, 2021.
• Total assets ended the quarter at $573.7 million as of March 31, 2022 compared to $600.8 million as of
  December 31, 2021 and $506.8 million as of March 31, 2021.

Selected Consolidated Financial Information – Unaudited
(dollar amounts in thousands, except per share data)
		As of
		Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
			2022				2021				2021				2021				2021
Total investment securities		$	242,907			$	227,775			$	200,099			$	171,710			$	169,698
Total loans, gross			248,560				250,670				243,689				258,816				258,504
PPP loans (non-core)			1,071				3,939				10,307				26,136				42,383
Total loans, excluding PPP			247,489				246,731				233,382				232,680				216,121
Allowance for loan losses			(3,513	)			(3,513	)			(3,362	)			(3,362	)			(3,362	)
Total assets			574,805				600,849				527,734				503,298				506,850
Total deposits			530,020				548,020				475,251				450,895				457,938
Borrowings			–				–				–				–				–
Total shareholders’ equity			42,332				49,428				48,853				48,439				45,717
Loan to deposit ratio			47	%			46	%			51	%			57	%			56	%
Book value per common share		$	13.85			$	16.30			$	16.14			$	16.02			$	15.16
Subsidiary Bank’s Tier 1 leverage ratio			7.85	%			8.13	%			8.41	%			8.42	%			8.20	%

Total gross loans were $248.6 million as of March 31, 2022, which represents a decrease of $2.1 million or 0.8% from $250.7 million as of December 31, 2021 and a decrease of $9.9 million or 3.8% from March 31, 2021. Excluding PPP loans, the Bank experienced net loan growth of $756,000 or 0.3% since December 31, 2021 and an increase of $31.4 million or 14.5% since March 31, 2021. For the quarter ended March 31, 2022, $2.8 million of the $3.9 million remaining PPP loans were forgiven with full payments received from the Small Business Administration.   Total deposits of $530.0 million as of March 31, 2022 represent a decrease of $18.0 million or 3.3% from $548.0 million as of December 31, 2021 and an increase of $72.1 million or 15.7% from March 31, 2021.   The quarter-over-quarter decline in deposits was nearly all attributed to the Bank’s Yuba City office which benefits from seasonal agricultural related deposits that typically decline through mid-year and then rebuild later in the year. As of March 31, 2022, the Bank had no non-performing assets.   

Selected Consolidated Financial Information – Unaudited (continued)
(dollar amounts in thousands, except per share data)
		For the Quarter Ended
		Mar 31,				Dec 31,				Sep 30,				Jun 30,				Mar 31,
			2022				2021				2021				2021				2021
Total interest income		$	4,089			$	4,295			$	4,173			$	4,071			$	3,988
Total interest expense			140				147				153				156				160
Net interest income			3,949				4,148				4,020				3,915				3,828
Provision for loan losses			–				151				–				–				–
Total noninterest income			200				242				161				175				276
Total noninterest expense			2,567				2,340				2,265				2,275				2,388
Net income			1,142				1,392				1,397				1,315				1,245
Earnings per share – basic		$	0.38			$	0.46			$	0.46			$	0.43			$	0.42
Earnings per share – diluted		$	0.36			$	0.44			$	0.45			$	0.42			$	0.41
Net interest margin			2.79	%			3.09	%			3.21	%			3.28	%			3.26	%
Net interest margin – tax equivalent			2.83	%			3.13	%			3.25	%			3.33	%			3.31	%
Efficiency ratio			61.87	%			53.32	%			54.17	%			55.62	%			59.49	%
Return on average assets			0.78	%			1.00	%			1.07	%			1.05	%			1.01	%
Return on average equity			9.64	%			11.16	%			11.18	%			11.24	%			10.76	%

Net interest income of $3.9 million for the quarter ended March 31, 2022 is an increase of $121,000 or 3.2% from the quarter ended March 31, 2021 and a decrease of $199,000 or 4.8% from the quarter ended December 31, 2021. The quarter-over-quarter decrease is primarily attributed to a reduction in loan fee income related to PPP. As the volume of PPP loan forgiveness decreases, so does the recognition of PPP loan fee income. PPP loan fee income is fully recognized when a loan is forgiven or paid off.

CFO Kevin S. Reynolds stated, “During the first quarter, we saw a decline in total assets which was primarily due from expected agricultural deposit outflows but was also impacted by a decline in the market value of our investment securities portfolio. This decline in value was driven by an increase in expectations about future rate hikes, which led to a mark to market unrealized loss in the Bank’s investment portfolio. It is important to note that this is strictly an accounting adjustment and our high-quality investment securities portfolio continues to perform as intended. While volatile interest rate markets will cause fluctuations in the market value of our investment securities portfolio, we expect that any unrealized loss will reduce over time and ultimately be eliminated as the bonds mature.”

CEO John M. Jelavich stated, “We are pleased with our first quarter results. Our after-tax net income of $1.1 million came in slightly better than we anticipated and was more reflective of our core earnings as the benefit of PPP had largely played out last year. Our credit quality remains very good and our core deposits, which exclude CDs, were up 18% year-over-year and bring considerable value to our franchise. Our Reno loan production office was successfully launched early in the quarter, and we are pleased with the momentum we are gaining there.”

Jelavich continued, “After years of declining interest rates which have resulted in margin compression for our bank and the industry, we came into 2022 anticipating moderately higher interest rates. During the quarter, the Fed signaled it would likely move rates more aggressively to combat inflation. The markets reacted by pushing rates and volatility even higher. In addition, we now see many new layers of uncertainty including the war in Ukraine and lockdowns in Shanghai, both of which have added more strain on supply chains and pushed input prices higher. While there has been growing concern that higher rates could increase the likelihood of recession, we see businesses and consumers still sitting on a lot of cash, job openings remain very high and strong demand for goods and services exist. These conditions do not immediately point to recession. While it will likely be months before clarity emerges, we do know that increasing interest rates and a steepening yield curve are necessary for increased margins and earnings in our industry. Looking through the present uncertainty, we now see an outcome where our earnings can be notably better than initially anticipated for 2023 and beyond.”

“Regardless of how the macro factors settle out, we believe we are well positioned in our markets and remain focused on delivering the relationship banking service that is valued by our customers,” Jelavich concluded.

The Bank remains highly rated with BauerFinancial, Depositaccounts.com and Bankrate and serves its customer base through its offices located at:

• 1629 Colusa Avenue, Yuba City, CA
• 580 Brunswick Rd, Grass Valley, CA
• 905 Lincoln Way, Auburn, CA
• 904 B Street, Marysville, CA
• 401 Ryland Street, Reno, NV (Loan Production Office)

The Bank offers a full suite of competitive products, services, and banking technology. For more information please visit our website at www.myrvcb.com or contact John M. Jelavich at (530) 821-2469.

Forward Looking Statements: This document may contain comments and information that constitute forward‐looking statements. Forward‐looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by such statements. Forward‐looking statements speak only as to the date they are made. The Bank does not undertake to update forward‐looking statements to reflect circumstances or events that occur after the date the forward‐looking statements are made.

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