River City Bank Reports Strong Asset Growth for Year Ended December 31, 2005
15 Febbraio 2006 - 11:15PM
PR Newswire (US)
MECHANICSVILLE, Va., Feb. 15 /PRNewswire-FirstCall/ -- River City
Bank (NASDAQ:RCBK), a Virginia state-chartered bank headquartered
in Mechanicsville, VA, today reported significant asset growth.
William D. Stegeman, President & CEO, reported December 31,
2005 operating results, stating that the Bank continues to
experience strong deposit and loan growth. Total assets of the Bank
(results unaudited) at December 31, 2005 amounted to $61,036,546,
compared with $23,585,462 at December 31, 2004 representing an
increase of 158.8%. Asset growth was concentrated in net loans
originated and securities purchased. As of year-end 2005, net loans
outstanding amounted to $38,351,866 compared to $13,954,859 as of
December 31, 2004, an increase of 174.8%. Securities
available-for-sale increased to $11,916,979 as of December 31, 2005
compared to $3,470,550 as of December 31, 2004, an increase of
243.4%. The Bank had no loans classified as available for sale for
either reporting periods. Loans held for investment as a percentage
of assets and deposits were 62.8% and 85.4% respectively as of
December 31, 2005, compared to 59.2% and 90.5% as of December 31,
2004. The Bank recorded total deposits at December 31, 2005 of
$44,931,704, compared to total deposits of $15,415,757 at December
31, 2004, an increase of 191.5%. Growth occurred in each of the
bank's deposit categories, including demand deposits which
increased $3,108,618 or 148.3%, Now and money market savings which
increased $2,170,496 or 59.8%, savings deposits which increased
$9,212,834 or 287.2%, and certificate of deposits which increased
$15,023,999 or 231.9%. The increase in deposits is attributed to
the Bank's continuing marketing initiatives implemented during the
year, as well as the opening of the Bank's second full-service
depository branch which opened for business on September 5, 2005.
For the year ended December 31, 2005, the Bank recorded a
comprehensive net operating loss of $(769,298). For the period from
July 1, 2004 (inception) to December 31, 2004 the Bank recorded a
comprehensive operating loss of $(846,309). Excluding net
unrealized losses of $(176,287) for securities available-for-sale,
the Bank recorded a net operating loss of $(593,011) for the year
ended December 31, 2005, compared to a six month operating loss
$(842,991) realized in 2004. The Bank's net unrealized losses for
securities available-for-sale at December 31, 2004 amounted to
$(3,318). The Bank commenced operations on July 1, 2004. On July 5,
2005, the Bank issued 869,180 shares of its common stock, par value
$5.00 per share ("Common Stock"). Of that amount, 767,318 shares of
Common Stock were issued in a public offering at $10.50 per share,
and 101,862 shares of Common Stock were issued in a rights offering
to shareholders at $10.50 per share. Proceeds from the offering
amounted to $9,126,390. After deducting expenses related to the
offering of $608,003, the Bank increased stockholders' equity by
$8,520,731 in the third quarter of 2005. At December 31, 2005, the
Bank's total stockholders' equity amounted to $15,862,252, compared
to $8,113,163 at December 31, 2004, an increase of 95.5%. Mr.
Stegeman commented: "We are pleased to report that River City Bank
experienced continued growth across all business lines in 2005.
During our first full year of operations, we successfully
implemented a strong secondary stock offering at mid-year and
opened our second branch banking facility in September. As we
continue to decrease our operating losses and strengthen our
organization with key employee hires in 2006, we look forward to
achieving profitability in 2006. Our third branch banking location
has been identified, and regulatory applications have been filed to
open the facility by early to mid-2006 in Highland Springs,
Virginia." This press release contains forward-looking statements
as defined by federal securities laws. These statements may address
certain results that are expected or anticipated to occur or
otherwise state the company's predictions for the future. These
particular forward-looking statements and all other statements that
are not historical facts are subject to a number of risks and
uncertainties, and actual results may differ materially. Such
factors include but are not limited to: general economic
conditions, significant fluctuations in interest rates that could
reduce the net interest margin; difficulties in execution
integration plans; reduction of fee income from existing products
due to market conditions; and the amount of growth in the company's
general administrative expenses. Consequently, these cautionary
statements qualify all forward-looking statements made herein.
First Call Analyst: FCMN Contact: zirkle.blakey@rivercitybank.org
DATASOURCE: River City Bank CONTACT: Investor Relations: Zirkle
Blakey, III, EVP & CFO of River City Bank, +1-804-730-4100, or
Web site: http://www.rivercitybank.org/
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