SALINAS, Calif., April 25, 2024 /PRNewswire/ -- Pacific Valley Bancorp (OTC:PVBK) announced its unaudited financial results for the first quarter of 2024. Net income for the quarter ended March 31, 2024, was $1.2 million representing a decrease of 5.6% or $71 thousand from the quarter ended March 31, 2023, primarily due to higher interest expense. FINANCIAL HIGHLIGHTS: Net income for the quarter ended March 31, 2024, was $1.2 million representing an increase of 2.8% or $32 thousand from the quarter ended December 31, 2023. The increase was primarily the result of higher loan interest income and lower deposit interest expense, partially offset by lower Fed Funds income and higher borrowing costs. Basic earnings per share for the quarter was $0.24 compared to $0.26 per share for the prior quarter. Earnings per share for the first quarter of 2024 reflects a 10% stock dividend at the end of the quarter. Earnings per share for the prior quarter would have been $0.24 if the dividend were applied retroactively. Net interest margin for the first quarter March 31, 2024 was 3.57% compared with 3.67% for the same period in 2023. The decrease is primarily the result of higher interest expense. Gross loans outstanding grew by 10.6% or $43.0 million from March 31, 2023 to March 31, 2024, primarily as a result of increased CRE loans. Non-Performing loans to gross loans for the quarter ended March 31, 2024, was 0.11% compared to 0.25% as of March 31, 2023. The Bank subsidiary's Community Bank Leverage Ratio has been consistently strong. As of March 31, 2024 the ratio was 13.48%, compared to 13.02% on December 31, 2023, and 12.42% on March 31, 2023. The regulatory requirement for this ratio is 9.00%. "The Company maintained consistent income, credit quality and operating efficiency in the first quarter of 2024 despite the pressure from rising interest expense on net interest margin. Loans have grown 11% over the prior year quarter which will provide momentum for interest income growth in 2024. While the cost of funds for the first quarter increased to 2.14% compared to 1.18% in the prior year quarter, we have maintained cost controls and kept non-interest expense to average assets below 2.50%. We will be investing in loan and deposit production and support personnel in 2024 to drive growth in both of those areas. This will be an investing year to position the Bank to achieve greater profitability. Despite the volatile economic environment, I am excited about the Company's prospects in 2024 and beyond. The Bank is committed to maintaining conservative lending and investment policies to be able to serve the community for years to come," said Anker Fanoe, President and CEO. "Our deposits decreased substantially in the first quarter due to seasonal agricultural deposits that come into the Bank in December and go out in January. Those amounts were $72 million in 2024 and $43 million in 2023. The combination of seasonal deposits outflow and the Bank's loan growth has resulted in a borrowing need in the first quarter that has been addressed with $20 million in long term brokered deposits which are callable in six months," stated CEO Fanoe. "Our liquidity position remains strong, as our primary liquidity ratio (cash, deposits held in other banks and securities as a percentage of total assets) was 12.4% on December 31, 2023 compared to 19.3% on March 31, 2023, which was prior to our loan growth. As of March 31, 2024, on-balance sheet liquidity totaled $65 million. Contingent liquidity, which includes borrowing capacity with the Federal Home Loan Bank, correspondent banks and brokered deposits, exceeds $259 million. Our combined on-balance sheet liquidity and contingent liquidity equate to 150% of our uninsured deposits," said Steve Leen, Executive Vice President and CFO. As of March 31, 2024, total assets were $523.0 million. Since March 31, 2023, total assets have increased $4.5 million or 0.9%, as a result of earnings over the last 12 months. Since December 31, 2023, total assets have decreased by $63.0 million or 10.7% primarily due to seasonal withdrawals of agricultural deposits. The investment securities portfolio totaled $26.4 million as of March 31, 2024, $26.9 million as of December 31, 2023, and $27.6 million as of March 31, 2023; the unrealized losses in the portfolio were $1.2 million, $1.1 million, and $1.0 million for the comparable periods, respectively. The overall securities portfolio made up 5.0% of total assets and the unrealized loss was 4.6% of the investment portfolio as of March 31, 2024. Total gross loans outstanding were $449.4 million as of March 31, 2024. Gross loans grew by 10.6% or $43.0 million from March 31, 2023 to March 31, 2024. In the first quarter, since December 31, 2023, the Company's loan portfolio decreased by $3.2 million or 0.7%. Decreased agricultural and multifamily loans were partially offset by increased farmland and residential real estate loans. As of March 31, 2024, total deposits were $450.1 million. Total deposits have decreased by $1.7 million or 0.4% compared to the prior year quarter. The decrease resulted from lower checking and money market accounts, partially offset by higher certificates of deposit. Shareholders' Equity was $52.7 million on March 31, 2024, representing growth of $5.1 million, or 10.8% over a year ago, directly attributable to increased retained earnings. For the Company's subsidiary, Pacific Valley Bank, equity increased to $69.3 million on March 31, 2024 compared to $68.1 million on December 31, 2023. The Bank is classified as well capitalized with a Community Bank Leverage Ratio of 13.48%, significantly above the regulatory minimum of 9.00%. Net Interest Income was $4.50 million for the quarter ended March 31, 2024, compared to $4.55 million for the quarter ended March 31, 2023. Net interest income was affected by increased interest expense of $1.1 million partially offset by ...