EXHIBIT 99.1
BLUE VALLEY BAN CORP NEWS RELEASE
11935 Riley
Overland Park, Kansas 66225-6128 CONTACT:
Mark A. Fortino
Chief Financial Officer
(913) 338-1000
For Immediate Release Wednesday, October 12, 2005
BLUE VALLEY BAN CORP REPORTS THIRD QUARTER 2005 EARNINGS
Overland Park, Kansas, October 12, 2005 - Blue Valley Ban Corp (OTCBB: BVBC)
("the Company") today announced net income of $1.6 million, or fully-diluted
earnings per share of $0.67, for the third quarter of 2005, compared to net
income of $533,000, or $0.23 per share for the same period in 2004. Net income
for the nine months ended September 30, 2005 was $3.2 million or $1.34 per
share, compared to $1.9 million or $0.82 per share for the same period in 2004.
"I'm very pleased with our financial results for the third quarter. We saw our
net interest margin continue to increase and it's close to reaching what we
consider an acceptable level for our Company. In addition, during the third
quarter we refinanced a trust preferred issue and sold our old Olathe banking
center facility. We expect both events to enhance our profitability going
forward" said Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp.
OPERATING RESULTS
During the third quarter of 2005, net interest income increased 37.3% to $5.9
million compared to $4.3 million for the same period in the prior year,
primarily due to expansion of our net interest margin resulting from a higher
yield on, and growth of, average earning assets. Noninterest income remained
stable at $3.3 million during both this quarter and in the prior year quarter.
Noninterest expense increased 3.1% to $6.6 million compared to $6.4 million in
the prior year quarter, primarily due to increases in operational expenses.
For the nine-month period ending September 30, 2005, net interest income
increased 29.1% to $16.1 million compared to $12.5 million for the same period
in 2004, primarily due to expansion of our net interest margin resulting from a
higher yield on, and growth of, average earning assets. Noninterest income
decreased to $8.8 million during this period from $10.8 million in the prior
year, a decrease of 18.4%, primarily due to lower mortgage loan origination
volume. Noninterest expense increased slightly by 0.4% to $19.6 million compared
to $19.5 million in the prior year period.
Total assets, loans and deposits at September 30, 2005 were $707.2 million,
$513.9 million and $545.7 million, respectively, compared to $669.9 million,
$477.8 million and $530.7 million one year earlier, respectively, increases of
5.6%, 7.6%, and 2.8%, respectively.
SALE OF OLD OLATHE PROPERTY
During September, the Company completed the sale of the Olathe property located
on the northwest corner of Ridgeview and Santa Fe. This property used to be the
location of the Olathe Banking Center until the Company moved it to a more
suitable location across the street during 2001. The Company realized a $342,000
pre-tax gain on the sale of this property and this income is included in
non-interest income for the quarter.
REFINANCE OF TRUST PREFERRED SECURITIES
During the quarter, the Company completed the private placement of $11.5 million
in trust preferred securities by a newly formed and wholly-owned trust
subsidiary, BVBC Capital Trust III. The proceeds of the Debt Securities were
used on September 30, 2005 to redeem, in whole, the Company's $11.5 million
Junior Subordinated Debentures issued by BVBC Capital Trust I in July 2000. The
Company expects this refinancing to reduce interest expense going forward.
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
THIRD QUARTER 2005
CONSOLIDATED FINANCIAL HIGHLIGHTS
(all dollars in thousands, except per share data)
(unaudited)
Three Months Ended September 30 2005 2004
Net interest income $ 5,858 $ 4,264
Provision for loan losses -- 400
Non-interest income 3,328 3,269
Non-interest expense 6,628 6,427
Net income 1,594 533
Net income per share - Basic 0.68 0.23
Net income per share - Diluted 0.67 0.23
Return on average assets 0.90% 0.32%
Return on average equity 14.34% 5.16%
Nine Months Ended September 30
Net interest income $ 16,074 $ 12,454
Provision for loan losses 155 1,050
Non-interest income 8,804 10,784
Non-interest expense 19,583 19,501
Net income 3,194 1,924
Net income per share - Basic 1.36 0.84
Net income per share - Diluted 1.34 0.82
Return on average assets 0.62% 0.40%
Return on average equity 9.92% 6.27%
At September 30
Assets $707,188 $669,892
Loans 513,924 477,761
Deposits 545,693 530,698
Stockholders' Equity 45,124 42,028