Svb Financial (NASDAQ:SVBF)
Historical Stock Chart
From Jul 2019 to Jul 2024
![Click Here for more Svb Financial Charts. Click Here for more Svb Financial Charts.](/p.php?pid=staticchart&s=N%5ESVBF&p=8&t=15)
Robert P. Corcoran, President and CEO of SVB Financial
Services, Inc. (NASDAQ: SVBF), the parent holding company of Somerset
Valley Bank, announced the Company's first quarter earnings.
Net income for the first quarter of 2005 was $777,000, a decrease
of $53,000 or 6% under the first quarter of last year. This net income
represents basic and diluted earnings per share of $0.19 compared to
basic and diluted earnings per share of $0.21 and $0.20 per share,
respectively in 2004. Corcoran cited a number of factors contributing
to the decrease.
The Company's net interest margin was 3.61% in the first quarter
of 2005 representing a decline of one basis point from the previous
quarter and 22 basis points from the first quarter of 2004. Loans,
which had accounted for 69% of average earning assets during the first
quarter of last year declined to 68% in 2005. While the Federal
Reserve has raised interest rates 175 basis points since June 2004,
the yield on average loans increased only three basis points from
6.31% in the first quarter of last year to 6.34% in the current
quarter. Competitive pricing for three and five year fixed rates
loans, which comprise most of the Company's commercial mortgages, have
kept these rates at approximately the same level during this period of
rising rates.
The cost of funding the Bank's earning assets increased by 29
basis points in comparison to last year. The rate paid on NOW
accounts, which make up 25% of average deposits, increased by 70 basis
points over the first quarter of last year. This was the result of
rate indexed pricing of municipal accounts and newly court mandated
pricing on certain attorney trust accounts known as IOLTA accounts.
Although the net interest margin declined, net interest income
increased $161,000 or 4% in comparison with last year. Net interest
income declined from the previous quarter by $124,000.
Non interest income declined $134,000 or 23% from the first
quarter of 2004. Income from the sale of investment and insurance
products declined by $47,000. Gains on the sales of loans and
securities declined $23,000 and $26,000, respectively, while service
charges on deposit accounts declined $19,000.
Non interest expenses increased $182,000 or 6% as a result of
normal salary increases and an overall 10.5% increase in employee
benefit costs. Occupancy expense increased $20,000 or 5%, mostly as a
result of the opening of the Company's Metuchen office. Increases in
outside services and data processing costs of $109,000 also
contributed to the increase in expense.
The provision for loan losses declined $55,000 from last year and
$114,000 from the previous quarter. The allowance for loan losses grew
to 1.03% of total loans from 0.99% at both December 31, 2004 and March
31, 2004. Non-accrual loans and loans past due 90 days or more
represented 0.49% of total loans, unchanged from year end but up from
0.27% at March 31, 2004.
Loans increased $19.6 million or 7% from last year but declined
$3.9 million or 1% since December 31, 2004. Deposits increased $30.6
million or 8% since March of last year and $1.5 million or less than
1% since December 31, 2004.
"It was a difficult quarter for loan growth and revenue, but our
pipeline of approved loans continues to expand," said Corcoran. "We
will press forward with our branch expansion and our business
development efforts in what we consider to be a very strong market
area in a reasonably good economy. We will continue to run our Bank
with the goal of long-term performance in mind and maintain our
underwriting standards to preserve the strength of our asset base and
limit rate risk exposure. As the economy settles, we expect our new
and existing markets to provide us with the kind of growth and
profitability our shareholders have come to expect."
The Bank opened its Metuchen office on 700 Middlesex Avenue in
December 2004. Somerset Valley Bank also has locations in Somerville,
Hillsborough, Bridgewater, Manville, the Arbor Glen retirement
facility, Bernards, Warren, Raritan Township and Edison. The Bank is
currently constructing its twelfth location in Flemington in Hunterdon
County. A thirteenth location has been approved for South Plainfield
in Middlesex County.
SVB Financial Services, Inc. is traded on the NASDAQ National
Market under the trading symbol SVBF and can be accessed via the
internet at www.somersetvalleybank.com.
On January 11, 2005, SVB Financial Services, Inc., signed a
definitive agreement to merge with Fulton Financial Corporation
(NASDAQ: FULT), based in Lancaster, Pennsylvania, with assets of $11.4
billion. Fulton Financial Corporation is the second largest commercial
bank holding company based in the Third Federal Reserve District. The
merger is also subject to the approval of the Board of Governors of
the Federal Reserve System, the State of New Jersey Department of
Banking and Insurance, and by SVB Financial Services Inc.'s
shareholders.
Upon completion of its acquisition of SVB Financial Services,
Inc., Fulton Financial Corporation intends to retain Somerset Valley
Bank as a separate subsidiary. Additional information on Fulton
Financial Corporation is available on the internet at www.fult.com.
The foregoing contains forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. Such
statements are not historical facts and include expressions about
management's confidence and strategies and management's expectations
about new and existing programs and products, relationships,
opportunities, technology and market conditions. These statements may
be identified by an "asterisk" (*) or may use such forward-looking
terminology as "expect", " look", " believe", " anticipate", " may", "
will", or similar statements or variations of such terms or otherwise
express views concerning trends and the future. Such forward-looking
statements involve certain risks and uncertainties. These include, but
are not limited to, the direction of interest rates, continued levels
of loan quality and origination volume, continued relationships with
major customers including sources for loans, as well as the effects of
economic conditions and legal and regulatory barriers and structure,
including those relating to the deregulation of the financial services
industry. Actual results may differ materially from such
forward-looking statements. SVB Financial Services, Inc. assumes no
obligation for updating any such forward-looking statement at any
time.
-0-
*T
SVB FINANCIAL SERVICES, INC.
Selected Consolidated Financial Data
Three Months Ended Years Ended
(in thousands except per March 31, December 31,
share data) 2005 2004 2004 2003 2002
----------------------------------------------------------------------
INCOME STATEMENT DATA:
Interest Income 5,821 5,186 21,651 20,700 20,848
Interest Expense 1,888 1,414 6,152 6,262 7,471
Net Interest Income 3,933 3,772 15,499 14,438 13,377
Provision for Loan
Losses 70 125 444 502 455
Net Interest Income After
Provision for Loan
Losses 3,863 3,647 15,055 13,936 12,922
Non-Interest Income 443 577 2,466 2,018 1,732
Non-Interest Expense 3,168 2,986 12,238 11,641 10,764
Income Before Income
Taxes 1,138 1,238 5,283 4,313 3,890
Income Tax Expense 361 408 1,742 1,429 1,435
Net Income 777 830 3,541 2,884 2,455
BALANCE SHEET DATA:
Total Assets 476,745 440,075 482,958 431,074 404,984
Federal Funds Sold and
Other Short Term
Investments 4,695 16,553 3,915 6,768 28,071
Interest Bearing Time
Deposits 11,541 13,337 13,531 13,142 13,839
Securities Available for
Sale 47,203 38,002 48,543 42,855 46,569
Securities Held to
Maturity 75,728 61,980 74,696 58,290 56,209
Loans 298,758 279,210 302,671 271,543 238,185
Deposits 415,102 384,458 413,616 379,013 364,422
Other Borrowings 22,123 20,167 31,184 18,176 9,214
Guaranteed Preferred
Beneficial Interest
in the Corporation
Subordinated Debentures 6,702 6,702 6,702 6,500 6,500
Shareholders' Equity 30,470 26,782 29,363 25,689 23,178
PERFORMANCE RATIOS:
Return on Average Assets 0.65% 0.76% 0.76% 0.69% 0.65%
Return on Average Equity 10.60% 12.86% 12.96% 11.92% 11.46%
Net Interest Margin 3.61% 3.83% 3.67% 3.77% 3.81%
ASSET QUALITY:
Loans Past Due Over 90
Days 1 -- -- -- --
Non-Accrual Loans 1,468 763 1,484 1,012 658
Net (Recoveries)/Charge
Offs (2) 33 123 229 159
Allowance for Loan Losses
to Total Loans 1.03% 0.99% 0.99% 0.99% 1.01%
PER SHARE DATA (1):
Earnings Per Share -
Basic 0.19 0.21 0.87 0.71 0.62
Earnings Per Share -
Diluted 0.19 0.20 0.85 0.70 0.61
Book Value 7.41 6.61 7.23 6.36 5.76
(1) All data has been retroactively restated for stock dividends.
*T