River City Bank Reports Asset Growth
02 September 2005 - 6:09AM
PR Newswire (US)
MECHANICSVIILE, Va., Sept. 1 /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 June 30, 2005
unaudited operating results, and stated that the Bank continues to
experience solid growth and is moving towards profitability. Total
assets of the Bank at June 30, 2005 amounted to $37,887,467,
compared with $23,585,462 at December 31, 2004. Asset growth was
concentrated in net loans that amounted to $24,597,935 at June 30,
2005, representing an increase of 76.3% since December 31, 2004. At
June 30, 2005, net loans held for investment were $24,597,935
compared to $13,954,859 at December 31, 2004. The Bank had no loans
classified as available for sale. Loans held for investment as a
percentage of assets and deposits were 59.8% and 79.1%,
respectively, as of June 30, 2005. Total deposits at June 30, 2005
amounted to $29,012,296, compared to total deposits of $15,415,757
recorded as of December 31, 2004. Total deposits grew $13,596,539
or 88.2% from December 31, 2004 to June 30, 2005. Growth occurred
in each of the bank's deposit categories, including saving deposits
which increased $6,089,568 or 189.5%, demand deposits which
increased $3,204,391 or 152.9%, time deposits which increased
$3,412,713 or 53.7% and NOW and money market deposits which grew
$889,867 or 24.5%. The increase in deposits is attributed to the
Bank's marketing initiatives implemented during the quarter. The
Bank reported a net loss of $(433,021) for the six month period
ended June 30, 2005. The Bank commenced operations July 1, 2004 and
is still in its early stages of development. Due to the starting
date of operations there is not an applicable similar period of
operations for which to make annual financial comparisons. The Bank
reported a net loss of $(198,471) for the three month period ended
June 30, 2005, compared to a net loss of $(234,550) for the three
month period ended March 31, 2005. 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 $605,660, the Bank increased shareholders' equity by
$8,520,731 in the third quarter of 2005. The Bank will use the
proceeds of the offering for general corporate purposes, including
but not limited to possible branch expansion, support future
balance sheet growth, and other purposes to potentially expand the
Bank's products and services. Effective August 1, 2005, the Bank
hired Scott Olsen, a securities broker and Certified Financial
Planner, to develop its investment services division. This
division, entitled River City Financial, will offer basic to
complex investment products and services to include financial and
estate planning, wealth management and traditional securities
brokerage services. With the Bank's mortgage division fully
operational under the successful leadership of Christine Mills, the
implementation of River City Financial should continue to generate
new sources of fee income to the Bank while expanding its ability
to be a one-stop financial services provider. During September,
2005, the Bank's second office will open, and will be located at
8051 Mechanicsville Turnpike, Mechanicsville, Virginia. Mr.
Stegeman commented: "From the approximately $8.5 million in net
capital successfully generated from our recently closed secondary
stock offering, and the resulting increase to earnings by deploying
such capital, we believe that overall profitability will be
achieved by maintaining structured balanced sheet growth and
effectively managing future growth in non-interest expense." 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.
DATASOURCE: River City Bank CONTACT: Zirkle Blakey, III, EVP, CFO
of River City Bank, +1-804-730-4100, Web site:
http://www.rivercitybank.org/
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