BLUE VALLEY BAN CORP NEWS RELEASE
11935 Riley
Overland Park, Kansas 66225-6128 CONTACT: Mark A. Fortino
Treasurer
(913) 338-1000
For Immediate Release Wednesday, July 14, 2004
BLUE VALLEY BAN CORP REPORTS SECOND QUARTER 2004 EARNINGS
Overland Park, Kansas, July 14, 2004 - Blue Valley Ban Corp (OTCBB: BVBC) ("the
Company") today announced net income of $681,000, or fully -diluted earnings per
share (EPS) of $0.29, for the second quarter of 2004, compared to net income of
$1.6 million, or $0.71 per share for the same period in 2003. Net income for the
six months ended June 30, 2004 was $1.4 million or $0.59 per share, compared to
$3.4 million or $1.48 per share for the same period in 2003.
"A decline in mortgage activity resulting from higher mortgage rates has
negatively impacted net interest income and non interest income revenue as
compared to 2003. Anticipated increases in short term rates should increase net
interest margins in the second half of 2004" said Robert D. Regnier, Chairman
and CEO of Blue Valley Ban Corp.
OPERATING RESULTS
During the second quarter of 2004, net interest income decreased 8.1% to $4.0
million compared to $4.4 million for the same period in the prior year,
primarily due to compression in our net interest margin resulting from lower
yields on earning assets . Noninterest income decreased to $4.1 million during
this period from $6.6 million in the prior year, a decrease of 37.9%. The
principal factor driving the decrease in non-interest income was a decrease in
Loans Held for Sale Income resulting from lower mortgage origination volume.
Noninterest expense decreased 12.0% to $6.9 million compared to $7.9 million in
the prior year period. The decrease relates primarily to lower incentive
compensation costs associated with mortgage originations.
For the six-month period ending June 30, 2004, net interest income decreased
7.5% to $8.2 million compared to $8.9 million for the same period in 2003,
primarily due to compression in our net interest margin resulting from changes
in the mix of earning assets and funding sources. Noninterest income decreased
to $7.5 million during this period from $12.3 million in the prior year, a
decrease of 39.0%. Noninterest expense decreased by 10.9% to $13.1 million
compared to $14.7 million in the prior year period. The decrease relates
primarily to lower incentive compensation costs associated with mortgage
originations.
Total assets, loans and deposits at June 30, 2004 were $637.4 million, $456.2
million and $479.0 million, respectively, compared to $628.7 million, $414.8
million and $470.4 million one year earlier, respectively, increases of 1.4%,
10.0%, and 1.8%, respectively.
NEW BANKING CENTER
On May 15th, 2004, the Bank of Blue Valley opened a full-service banking center
at 13401 Mission Road in Leawood, Kansas.
ABOUT BLUE VALLEY BAN CORP
Blue Valley Ban Corp is a bank holding company that, through its subsidiaries,
provides banking services to business, their owners, professionals and
individuals in Johnson County, Kansas. In addition, the Company originates
residential mortgages nationwide through its InternetMortgage.com website.
This release contains forward-looking statements within the meaning of Section
21E of the Securities Exchange Act of 1934, as amended. The Company intends such
forward-looking statements to be covered by the safe harbor provisions for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, and is including this statement for purposes of those safe harbor
provisions. Forward-looking statements, which are based on certain assumptions
and describe future plans, strategies and expectations of the Company, can
generally be identified by use of the words "believe," "expect," "intend,"
"anticipate," "estimate," "project," or similar expressions. The Company is
unable to predict the actual results of its future plans or strategies with
certainty. Factors which could have a material adverse effect on the operations
and future prospects of the Company include, but are not limited to,
fluctuations in market rates of interest and loan and deposit pricing; a
deterioration of general economic conditions or the demand for housing in the
Company's market areas; legislative or regulatory changes; adverse developments
in the Company's loan or investment portfolio; any inability to obtain funding
on favorable terms; the loss of key personnel; significant increases in
competition; and the possible dilutive effect of potential acquisitions or
expansions. These risks and uncertainties should be considered in evaluating
forward-looking statements and undue reliance should not be placed on such
statements.
BLUE VALLEY BAN CORP
SECOND QUARTER 2004
CONSOLIDATED FINANCIAL HIGHLIGHTS
(all dollars in thousands, except per share data)
(unaudited)
<Table>
<Caption>
Three Months Ended June 30 2004 2003
- -------------------------------------------------- --------------- ---------------
Net interest income $ 4,036 $ 4,392
Provision for loan losses 300 600
Non-interest income 4,103 6,606
Non-interest expense 6,911 7,858
Net income 681 1,627
Net income per share - Basic 0.30 0.73
Net income per share - Diluted 0.29 0.71
Return on average assets 0.43% 1.07%
Return on average equity 6.64% 17.59%
Six Months Ended June 30
- ------------------------
Net interest income $ 8,190 $ 8,854
Provision for loan losses 650 1,200
Non-interest income 7,515 12,325
Non-interest expense 13,074 14,670
Net income 1,391 3,403
Net income per share - Basic 0.61 1.53
Net income per share - Diluted 0.59 1.48
Return on average assets 0.45% 1.15%
Return on average equity 6.85% 18.86%
At June 30
- ----------
Assets $ 637,353 $ 628,697
Loans 456,175 414,829
Deposits 478,991 470,374
Stockholders' Equity 41,388 38,342
</Table>