VALLEY COMMERCE BANCORP 
By VISALIA, Calif., Oct. 23, 2013 /PRNewswire/ -- Valley Commerce Bancorp, (OTCBB: VCBP), a bank holding company and the parent company of Valley Business Bank, today announced third quarter 2013 net income of $905 thousand or $0.32 per diluted share. This compared to earnings of $839 thousand, or $0.30 per diluted share, for the third quarter of 2012. For the nine months ended September 30, 2013, the Company reported net income of $3.3 million, or $1.16 per diluted share. This compared to earnings of $2.6 million, or $0.89 per diluted share, for the nine months ended September 30, 2012.
Allan W. Stone, President and Chief Executive Officer, remarked, "I am very pleased to report solid earnings for the third quarter of 2013 and that we are on track for record earnings in 2013. Our determined efforts to maintain high credit quality are evidenced by our continued reduction in classified loans, net recoveries of loans previously charged-off and the release of loan loss reserves. We anticipate that the overall quality of our loan portfolio will remain favorable which will enhance our ability to meet the many economic and regulatory challenges facing the community banking industry." Mr. Stone commented further, "As we commence our annual planning efforts, our team is already in high gear addressing these challenges. I am very confident in our team and believe that our bank will continue to demonstrate strong financial performance as it makes the changes needed to remain successful over the longer term."
Selected financial information is presented in the following table:
Nine Months ended September 30, December 31,
-------------------------------
2013 2012 2012*
---- ---- ----
ANNUALIZED KEY FINANCIAL RATIOS
Net income $3,279,220 $2,590,606 $3,232,906
Return on average equity 11.29% 9.04% 8.47%
Return on average assets 1.20% 0.99% 0.92%
Net interest margin 4.20% 4.49% 4.50%
Efficiency ratio 68.55% 66.49% 69.50%
Loan to deposit ratio at period
end 74.81% 77.26% 72.04%
Tier 1 leverage ratio 11.7% 11.2% 11.3%
Tier 1 risk based ratio 16.1% 15.2% 15.6%
Total risk-based capital ratio 17.4% 16.5% 16.9%
SHARE AND PER SHARE DATA
Basic earnings per common
share $1.17 $0.90 $1.13
Diluted earnings per common
share $1.16 $0.89 $1.12
Weighted average common shares
outstanding 2,805,410 2,784,593 2,788,018
Weighted avg. diluted common
shares outstanding 2,820,754 2,792,100 2,797,835
Book value per common share $14.19 $13.35 $13.46
Total common shares outstanding 2,784,229 2,784,593 2,815,036
*For the year ended December 31, 2012
Loans
Net loans were $232.6 million at September 30, 2013, an increase of $5.4 million or 2% from the $227.3 million at December 31, 2012. The increase occurred primarily in real estate-mortgage and construction loans. Average gross loans were $230.0 million for the nine months ended September 30, 2013 and $226.0 million for the nine months ended September 30, 2012, an increase of $4.0 million or 2%.
Net loans at September 30, 2013, December 31, 2012, and September 30, 2012 are summarized in the following table:
September 30, December 31, September 30,
2013 2012 2012
-------------- ------------- --------------
Commercial $38,460,805 16% $41,270,395 18% $39,976,678 17%
Real
estate -
mortgage 173,374,307 73 170,868,701 74 172,715,551 74
Real
estate -
construction 19,794,496 8 15,521,971 6 15,178,846 6
Agricultural 3,602,363 2 3,700,775 1 3,909,712 2
Consumer
and
other 1,593,826 1 1,508,824 1 1,999,533 1
--------- --- --------- --- --------- ---
Subtotal 236,825,797 100% 232,870,666 100% 233,780,320 100%
=== === ===
Deferred
loan
fees,
net (298,850) (417,743) (385,607)
Allowance
for loan
and lease
losses (3,893,357) (5,192,436) (5,193,852)
---------- ---------- ----------
Total
loans,
net $232,633,590 $227,260,487 $228,200,861
========== ========== ==========
Average
loans
outstanding $230,025,913 $227,979,257 $225,995,961
========== ========== ==========
Investment Securities
Available-for-sale investment securities were $65.7 million at September 30, 2013 compared to $53.0 million at December 31, 2012, an increase of $12.7 million or 24%. There were $23.1 million of investment securities purchased during the nine months ended September 30, 2013 which were offset by normal repayments, maturities, calls, and sales. Gain on sale of investment securities was $126 thousand for the nine months of 2013 compared to $152 thousand for the same period in 2012.
The amortized cost and estimated fair value of available-for-sale investment securities at the dates indicated consisted of the following:
September 30, 2013
------------------
Gross Gross Estimated
Amortized Unrealized Unrealized Fair
Cost Gains Losses Value
---- ----- ------ -----
Debt securities:
U.S. Government sponsored entities and agencies $4,232,685 $29,297 $(79,982) $4,182,000
Mortgage-backed securities:
U.S. Government sponsored entities and agencies 30,079,496 194,046 (568,542) 29,705,000
Small Business Administration 10,243,263 401,847 (110) 10,645,000
Obligations of states and political subdivisions 21,077,675 273,555 (150,230) 21,201,000
---------- ------- -------- ----------
Total $65,633,119 $898,745 $(798,864) $65,733,000
=========== ======== ========= ===========
December 31, 2012
-----------------
Gross Gross Estimated
Amortized
Unrealized
Unrealized
Fair
Cost
Gains
Losses
Value
-----
Debt securities:
U.S. Government sponsored entities and agencies $5,544,809 $192,191 $ - $5,737,000
Mortgage-backed securities:
U.S. Government sponsored entities and agencies 16,413,277 380,508 (3,785) 16,790,000
Small Business Administration 10,547,108 353,892 - 10,901,000
Obligations of states and political subdivisions 18,696,003 898,613 (21,616) 19,573,000
---------- ------- ------- ----------
Total $51,201,197 $1,825,204 $(25,401) $53,001,000
=========== ========== ======== ===========
Deposits
Total deposits decreased by $4.5 million or 1%, from $315.5 million at December 31, 2012 to $311.0 million at September 30, 2013. The decrease resulted from management's decision to not renew approximately $18 million in public funds deposit contracts for the purpose of managing deposit concentrations. However, these public funds were replaced by organic deposit growth in the areas of both time deposits and non-interest bearing deposits. Average total deposits were $317.3 million for the nine months ended September 30, 2013, a $13.6 million or 4% increase from the $303.7 million in average total deposits for the nine months ended September 30, 2012.
Total deposits at September 30, 2013, December 31, 2012, and September 30, 2012 are summarized in the following table:
September 30, 2013 December 31, 2012 September 30,
2012
------------------ ----------------- --------------
Non-interest bearing $123,525,101 40% $120,900,110 38% $105,968,329 36%
Interest bearing 123,920,315 40 127,819,122 41 120,891,019 41
Time deposits 63,516,140 20 66,764,761 21 68,505,022 23
---------- --- ---------- --- ---------- ---
Total $310,961,556 100% $315,483,993 100% $295,364,370 100%
============ ============ ==========
Shareholders' Equity
Total shareholders' equity was $39.5 million at September 30, 2013, an increase of $2.4 million or 6%, from the $37.9 million at December 31, 2012. The increase was due to earnings of $3.3 million offset by a reduction in accumulated other comprehensive income of $1.0 million resulting from a decrease in the value of investment securities and to a lesser extent the repurchase of common stock and cash dividends paid. During the nine months ended September 30, 2013 and 2012 the Company paid common stock cash dividends totaling $336 thousand or $0.12 per share and $222.8 thousand or $0.08 per share, respectively. Common stock repurchases during the nine months ended September 30, 2013 totaled $602 thousand, at an average of $13.47 per share. There were no common stock repurchases during 2012.
Asset Quality
Nonperforming loans at September 30, 2013 were comprised of ten nonaccrual loans spread among six customer relationships with an aggregate balance of $4.1 million compared with twelve nonaccrual loans spread among eight customer relationships at December 31, 2012 with an aggregate balance of $4.4 million. The Company had no other real estate owned at December 31, 2012 or September 30, 2013.
Impaired loans totaled $7.6 million and $8.0 million at September 30, 3013 and December 31, 2012, respectively, and were comprised of the nonaccrual loans included in nonperforming assets and certain accruing loans whose terms have been modified from the original loan agreement.
A summary of nonperforming assets is set forth below:
September 30, December 31, September 30,
2013 2012 2012
---- ---- ----
Nonperforming loans $4,062,127 $4,422,050 $4,590,963
Loans past due 90 days or more and still accruing
- - -
Total nonperforming loans $4,062,127 $4,422,050 $4,590,963
---------- ---------- ----------
Other real estate owned $ - $ - $1,140,547
Total nonperforming assets $4,062,127 $4,422,050 $5,731,510
========== ========== ==========
Specific loss reserves on impaired loans $411,599 $590,890 $604,637
Nonperforming assets to total loans 1.71 % 1.90% 2.45%
Nonperforming loans to total loans 1.75 % 1.95% 2.01%
Nonperforming assets to total assets 1.13 % 1.23% 1.69%
Classified loans $14,325,970 $16,360,586 $20,490,696
30-89 Day Delinquent loans $ -- $200,000 $ --
A summary of troubled debt restructured loans outstanding as of the dates indicated are set forth below:
September 30, 2013 December 31, 2012
------------------ -----------------
Specific Specific
loan No. of loan
loss loss No. of
Amount reserve Loans Amount reserve Loans
------ ------- ----- ------ ------- -----
Nonperforming
loans $3,356,950 $41,935 9 $2,913,258 $59,765 7
Performing
loans 1,839,993 131,658 6 1,676,136 425,632 6
Total troubled
debt
restructured
loans $5,196,943 $173,593 15 $4,589,394 $485,397 13
======== ====== === ======== ====== ===
The following table summarizes the changes in the allowance for loan and lease losses (ALLL) for the periods indicated:
Nine Months Ended
September 30, 2013 Nine Months Ended Year Ended
September 30, 2012 December 31, 2012
Balance
at
beginning
of
period $5,192,436 $5,468,758 $5,468,758
Charge-
offs:
Commercial
and
agricultural - - -
Real
estate
mortgage - (318,777) (318,877)
Real
estate
construction - - -
Consumer (1,021) (97,106) (100,523)
Total
charge-
offs (1,021) (415,983) (419,400)
------ -------- --------
Recoveries:
Commercial
and
agricultural 201,942 141,077 143,078
Real
estate
mortgage - - -
Real
estate
construction - - -
Consumer - - -
Total
recoveries 201,942 141,077 143,078
------- ------- -------
Net
recoveries
(charge-
offs) 200,941 (274,906) (276,322)
Reversal
of
provision
for loan
losses (1,500,000) - -
Balance
at end
of
period $3,893,357 $5,193,852 $5,192,436
======== ======== ========
Net
recoveries
(charge-
offs) to
average
loans
outstanding 0.087% (0.122)% (0.121)%
Ending
allowance
to total
loans
outstanding
at end
of
period 1.64% 2.23% 2.23%
During the nine months ended September 30, 2013 we recorded a $1.5 million reversal of provision for loan losses. The reversal was recorded during the second quarter. There was no loan loss provisioning in the third quarter of 2013 or for the year ended 2012. In determining the amount of ALLL required at September 30, 2013, management analyzed the composition and strength of the Company's loan portfolio, including borrower performance trends, the potential for losses in loans classified nonperforming, the potential for loan loss recoveries, and the results of recent internal credit reviews.
Net Interest Income and Net Interest Margin
The following table presents the Company's average balance sheet, including weighted average yields and rates on a taxable-equivalent basis, for the nine-month periods indicated:
Average balances and weighted average yields
and costs
Nine months ended September 30,
-------------------------------
2013 2012
---- ----
Interest Average Interest Average
Average income/ yield/ income/ yield/
Average
Balance Expense Cost Expense Cost
Balance
-------
(dollars in thousands)
ASSETS
Due from banks $40,953 $83 0.27% $30,543 $62 0.27%
Available-for-sale
investment
securities:
Taxable 36,038 460 1.71% 36,836 538 1.95%
Exempt from Federal
income taxes (1) 18,394 512 5.64% 19,216 589 6.20%
--- ---- ------ --- ----
Total securities (1) 54,432 972 3.04% 56,052 1,127 3.41%
Loans (2) (3) 229,681 9,495 5.55% 225,644 9,839 5.82%
------- ----- ---- ------- ----- ----
Total interest-
earning assets (1) 325,066 10,550 4.47% 312,239 11,028 4.85%
Noninterest-earning
assets, net of
allowance for loan
losses 38,896 37,091
------ ------
Total assets $363,962 $349,330
======== ======
LIABILITIES AND
SHAREHOLDERS' EQUITY
Deposits:
Other interest bearing $128,978 $295 0.31% $124,219 $364 0.39%
Time deposits less
than $100,000 18,762 77 0.55% 20,555 108 0.70%
Time deposits $100,000
or more 47,204 199 0.56% 49,343 266 0.72%
------ --- ---- ------ --- ----
Total interest-
bearing deposits 194,944 571 0.39% 194,117 738 0.51%
Long-term debt - - -% 8 - -%
Junior subordinated
deferrable interest
debentures 3,093 84 3.63% 3,093 90 3.89%
----- --- ---- ----- --- ----
Total interest-
bearing liabilities 198,037 655 0.44% 197,218 828 0.56%
Noninterest bearing
deposits 122,336 109,565
Other liabilities 4,757 4,269
----- -----
Total liabilities 325,130 311,052
Shareholders' equity 38,832 38,278
------ ------
Total liabilities and
shareholders' equity $363,962 $349,330
======== ======
$
9,895
Net interest income
and margin (1) 4.20% $10,200 4.49%
==== ======= ====
(1) Interest
income is
not
presented
on a
taxable-
equivalent
basis,
however,
the
average
yield was
calculated
on a
taxable-
equivalent
basis by
using a
marginal
tax rate
of 34%.
(2) Nonaccrual
loans are
included
in total
loans.
Interest
income is
included
on
nonaccrual
loans only
to the
extent
cash
payments
have been
received.
There was
$177
thousand
and $471
thousand
in
foregone
interest
on
nonaccrual
loans for
the nine
months
ended
September
30, 2013
and 2012,
respectively.
Income
received
from
nonaccrual
loans was
$263
thousand
in the
2013
period and
$129 in
the 2012
period.
(3) Interest
income on
loans
includes
amortized
loan
fees, net
of costs,
of $395
thousand
and $362
thousand
for 2013
and 2012,
respectively.
Net interest income before provision for loan and lease losses for the nine month periods ended September 30, 2013 and 2012 was $9.9 million and $10.2 million, respectively, a decrease of $306 thousand or 3%. Net interest income decreased during the 2013 period due to a decrease in the average yields of loans and investment securities offset by reduced cost of interest-bearing liabilities. The impact of decreasing loan yield was slightly offset by a $4.0 million or 2 percent increase in the average balance of loans.
Net interest margin was 4.20% and 4.49% for the periods ended September 30, 2013 and 2012, a 29 basis point (bps) decrease. Average loan yield was 5.55% and 5.82% for the nine months ended September 30, 2013 and 2012, respectively, a decrease of 27 bps, which reflected the strongly competitive environment for high quality loan customers. This decrease was offset by a 12 bps decrease in the average rate paid on deposits and other interest-bearing liabilities that reflected weak competition for deposits as well as a reduction in the average balances of time deposits. Average noninterest-bearing deposits increased by $12.8 million or 12 percent. These funds were primarily deployed into low yielding overnight deposits which adversely impacted the net interest margin for the 2013 period but provided an overall beneficial contribution to the growth in net interest income and net income.
Non-Interest Income
The following table describes the components of non-interest income for the nine-month periods ended September 30, 2013 and 2012:
Non-interest income
-------------------
Nine Months ended
September 30,
-------------
2013 2012 Increase (Decrease)
---- ---- -------------------
Service charges $477,476 $523,808 $(46,332)
Gain on sale of available-for-sale investment securities 125,926 152,224 (26,298)
Gain on sale of other real estate - 1,208 (1,208)
Mortgage loan brokerage fees 44,487 59,976 (15,489)
Earnings on cash surrender value of life insurance policies 233,524 249,009 (15,485)
Other 224,021 182,634 41,387
------- ------- ------
Total non-interest income $1,105,434 $1,168,859 $(63,425)
======== ======== ========
For the period ended September 30, 2013, non-interest income totaled $1.1 million, a decrease of $63 thousand or 5% from the $1.2 million recorded during the period ended September 30, 2012. Decreases in service charges, reduced gains on sales of investment securities, mortgage loan underwriting fees and cash surrender value of life insurance policies contributed to the decrease in non-interest income during the 2013 period, which were offset by an increase in FHLB stock dividends. Service charge income decreased due to fewer occurrences of non-sufficient funds charges.
Non-Interest Expense
The following table describes the components of non-interest expense for the nine-month periods ended September 30, 2013 and 2012:
Non-interest expense
--------------------
Nine Months ended
September 30,
-------------
2013 2012 Increase (Decrease)
---- ----
Salaries and employee benefits $4,367,768 $4,488,822 $(121,054)
Occupancy and equipment 1,107,887 992,898 114,989
Other real estate owned - 20,474 (20,474)
Data processing 388,730 479,443 (90,713)
Operations 242,241 258,338 (16,097)
Professional and legal 269,611 263,680 5,931
Advertising and business development 175,889 190,471 (14,582)
Telephone and postal 174,607 167,847 6,760
Supplies 157,315 126,153 31,162
Assessment and insurance 205,962 224,910 (18,948)
Other expenses 450,217 346,096 104,121
------- -------
Total non-interest expense $7,540,227 $7,559,132 $(18,905)
======== ======== ========
For the periods ended September 30, 2013 and 2012, non-interest expense was $7.5 million and $7.6 million a decrease of $19 thousand or .03%. Occupancy and equipment expense increased by $115 thousand or 12% due to contracted costs for new software applications, supplies increased by $31 thousand or 25% due to timing of forms ordered, and other expenses increased by $104 thousand or 30% due to increased training expense and sundry losses. These were offset by a $121 thousand or 3% decrease in salaries and employee benefit expense due to staff reductions and reductions in stock option expense. In addition, FDIC insurance and assessment expense decreased by $19 thousand or 8% due to more favorable methodology for calculating insurance premiums. There also was a $91 thousand or 19% decrease in data processing costs due to renegotiation of data processing service contracts.
OTHER INFORMATION: Valley Commerce Bancorp stock trades on NASDAQ's Over the Counter Bulletin Board under the symbol VCBP. Valley Business Bank, the wholly owned subsidiary of Valley Commerce Bancorp, is a commercial bank that commenced operations in 1996. Valley Business Bank operates through Business Banking Centers in Visalia, Tulare, and Fresno, California and has branch offices in Woodlake and Tipton, California. Additional information about Valley Business Bank is available from the Bank's website at http://www.valleybusinessbank.net.
FORWARD-LOOKING STATEMENTS: In addition to historical information, this release includes forward-looking statements, which reflect management's current expectations for Valley Commerce Bancorp's future financial results, business prospects and business developments. Management's expectations for Valley Commerce Bancorp's future necessarily involve assumptions, estimates and the evaluation of risks and uncertainties. Various factors could cause actual events or results to differ materially from those expectations. The forward-looking statements contained herein represent management's expectations as of the date of this release. Valley Commerce Bancorp undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. For those statements, the Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
VALLEY COMMERCE BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
September December 31, September
30, 30,
2013 2012 2012
---- ---- ----
Assets
------
Cash and due from
banks $37,792,907 $57,573,424 $31,843,399
Available-for-
sale investment
securities, at
fair value 65,733,000 53,001,000 55,831,000
Loans, net of
deferred fees 236,526,947 232,452,923 233,394,713
Less: allowance for
loan and lease
losses 3,893,357 5,192,436 5,193,852
--------- --------- ---------
Net Loans 232,633,590 227,260,487 228,200,861
Bank premises and
equipment, net 7,819,063 7,995,072 7,918,597
Cash surrender
value of bank-
owned life
insurance 8,202,185 7,992,697 7,921,419
Other real estate
owned - - 1,140,547
Accrued interest
receivable and
other assets 5,942,915 7,056,100 7,092,505
--------- --------- ---------
Total assets $358,123,660 $360,878,780 $339,948,328
========== ========== ==========
Liabilities and
Shareholders'
Equity
---------------
Deposits:
Noninterest-bearing $123,525,101 $120,900,110 $105,968,329
Interest-bearing 187,436,455 194,583,883 189,396,041
----------- ----------- -----------
Total deposits 310,961,556 315,483,993 295,364,370
Accrued interest
payable and other
liabilities 4,559,647 4,398,621 4,327,420
Junior subordinated
deferrable
interest
debentures 3,093,000 3,093,000 3,093,000
--------- --------- ---------
Total liabilities 318,614,203 322,975,614 302,784,790
----------- ----------- -----------
Commitments and
contingencies
Shareholders'
equity:
Common stock 27,905,468 28,080,655 27,704,938
Retained earnings 11,545,209 8,763,327 8,346,229
Accumulated other
comprehensive
income, net of
taxes 58,780 1,059,184 1,112,371
------ --------- ---------
Total shareholders'
equity 39,509,457 37,903,166 37,163,538
---------- ---------- ----------
Total liabilities
and shareholders'
equity $358,123,660 $360,878,780 $339,948,328
========== ========== ==========
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
For the Three
Months For the Nine Months
Ended September
30, Ended September, 30
-------------------
2013 2012 2013 2012
---- ---- ---- ----
Interest Income:
Interest and fees on loans $3,190,213 $3,265,028 $9,494,359 $9,838,590
Interest on investment securities:
Taxable 201,398 165,654 460,267 538,509
Exempt from Federal income taxes 176,866 180,863 512,107 589,526
Interest on deposits in banks 20,889 16,913 82,887 61,822
------ ------ ------ ------
Total interest income 3,589,366 3,628,458 10,549,620 11,028,447
--------- --------- ---------- ----------
Interest Expense:
Interest on deposits 172,911 235,920 570,525 738,026
Interest on short-term debt - 5 - 173
Interest on junior subordinated
deferrable interest debentures 28,209 29,688 84,082 89,369
------ ------ ------ ------
Total interest expense 201,120 265,613 654,607 827,528
------- ------- ------- -------
Net interest income before
reversal of provision for loan
losses 3,388,246 3,362,845 9,895,013 10,200,879
Reversal of provision for loan
losses - - (1,500,000) -
--- --- --------- ---
Net interest income after
reversal of provision for loan
losses 3,388,246 3,362,845 11,395,013 10,200,879
--------- --------- ---------- ----------
Non-Interest Income:
Service charges 164,122 170,141 477,476 523,808
Gain on sale of available-for-
sale investment securities, net - - 125,926 152,224
Gain on sale of other real estate - 1,208 - 1,208
Mortgage loan brokerage fees 14,370 38,974 44,487 59,976
Earnings on cash surrender value
of life insurance policies 78,046 81,365 233,524 249,009
Other 90,700 57,228 224,021 182,634
------ ------ ------- -------
Total non-interest income 347,238 348,916 1,105,434 1,168,859
------- ------- --------- ---------
Non-Interest Expense:
Salaries and employee benefits 1,420,927 1,461,406 4,367,768 4,488,822
Occupancy and equipment 382,388 354,921 1,107,887 992,898
Other 641,290 683,082 2,064,572 2,077,412
------- ------- --------- ---------
Total non-interest expense 2,444,605 2,499,409 7,540,227 7,559,132
--------- --------- --------- ---------
Income before provision for
income taxes 1,290,879 1,212,352 4,960,220 3,810,606
Provision for income taxes 386,000 373,000 1,681,000 1,220,000
------- ------- --------- ---------
Net income $904,879 $839,352 $3,279,220 $2,590,606
Dividends accrued and discount
accreted on preferred shares - - - 93,209
=== === === ======
Net income available to common
shareholders $904,879 $839,352 $3,279,220 $2,497,397
======== ======== ========
Basic earnings per share $0.32 $0.30 $1.17 $0.90
===== ===== ===== =====
Diluted earnings per share $0.32 $0.30 $1.16 $0.89
===== ===== ===== =====
Cash dividends paid per common
share $0.06 $0.04 $0.12 $0.08
===== ===== ===== =====
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(UNAUDITED)
For the Years Ended December 31, 2011 and 2012 and Nine Months Ended September 30, 2013
Accumulated
Other
Comprehensive
Income
(Loss)
(Net of
Taxes)
--------
Total
Shareholders'
Equity
------
Preferred Stock Common Stock
--------------- ------------
Retained
Earnings
--------
Shares Amount Shares Amount
------ ------ ------ ------
Balance, January 1, 2011 8,085 $7,821,800 2,630,480 $26,137,158 $4,831,883 $(41,149) $38,749,692
Net income 3,103,979 3,103,979
Other comprehensive income 855,670 855,670
Dividend and accretion on
preferred stock
77,000 (494,346) (417,346)
Stock dividend 131,243 1,181,187 (1,181,187)
Cash paid for fractional shares (2,529) - (2,529)
Restricted stock grant 2,927
Stock options exercised and
related tax benefit
19,943 117,000 117,000
Stock-based compensation
expense 98,946 98,946
------ ------
Balance, December 31, 2011 8,085 $7,898,800 2,784,593 $27,534,291 $6,257,800 $814,521 $42,505,412
Net income 3,232,906 244,663 3,232,906
Other comprehensive income 244,663
Dividend and accretion on
preferred stock
186,200 (279,409) (93,209)
Preferred stock repurchased (8,085) (8,085,000) (8,085,000)
Cash dividends $0.16 per common
share (447,970) (447,970)
Stock options exercised and
related tax benefit
30,443 272,248 272,248
Stock-based compensation
expense 274,116 274,116
------- -------
Balance, December 31, 2012 - $ - 2,815,036 $28,080,655 $8,763,327 $1,059,184 $37,903,166
Net income 3,279,220 3,279,220
Other comprehensive loss (1,000,404) (1,000,404)
Cash dividends $0.12 per Common
share (335,694) (335,694)
Common stock repurchased (44,700) (440,636) (161,644) (602,280)
Stock options exercised and
related tax benefit 13,893 153,576 153,576
Stock-based compensation
expense 111,873 111,873
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Balance, September 30, 2013 - $ - 2,784,229 $27,905,468 $11,545,209 $58,780 $39,509,457
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SOURCE Valley Commerce Bancorp
