Written by The Business Journal Staff
Valley Republic Bancorp, parent company of Bakersfield-based Valley Republic Bank, announced record income for the second quarter of the year.
Net income for the second quarter was $4.55 million compared to $3.67 million reported in the same quarter in the prior year, an increase of $876,000 or 23.8%. Earnings per share for the second quarter of 2021 were $1.07 per diluted share outstanding compared to $0.87 per diluted share reported in the second quarter of 2020, an increase 23.0%.
For the six months ended June 30, net income was $8.26 million compared to $5.93 million in the same period in the prior year, an increase of $2.32 million or 39.3%. Year to date earnings were $1.94 per diluted share compared to $1.41 in the same period of 2020.
Geraud Smith, president and CEO stated, “Given the difficult interest rate environment, I am extremely pleased with our Company’s financial performance. Our dedicated team remains laser focused on serving our existing customers and bringing net new names into the Bank, which is evidenced by our core balance sheet growth during the first six months of the year. In addition, our intentional focus on non-interest income through an expansion of our Treasury Management capabilities drove our 29%, year-to-date, year-over-year increase in non-interest income, when excluding our previous years gain on sale of securities. Non-interest income and the development of net new relationships remain top priorities for our Company.”
Total assets increased 12% to $1.36 billion.
The Bank began originating PPP loans to both customers and noncustomers at the outset of the program in 2020 and continued to do so until funding was exhausted in the second quarter.
PPP1 originations totaled $219.38 million to 672 borrowers. PPP2 originations totaled $108.71 million to 527 borrowers. PPP1 forgiveness application submission began in 4th quarter 2020 and was nearly completed by June 30. As of June 30, total PPP loans outstanding totaled $170.9 million.
As of June 30, PPP loan fees net of costs totaling $4.44 million had yet to be accreted as a component of interest and fees on loans. In the second quarter of 2021, PPP loans generated $2.31 million in interest and fee income as compared to $711,000 in the same quarter of the prior year.
Valley Republic Bank is an insured, state-chartered, non-member bank of the Federal Reserve System. Valley Republic Bank is a full-service, community bank with three full-service banking offices in Bakersfield, one full-service banking office in Delano, and a loan production office in Fresno.