EX-99.1 3 c80054exv99w1.txt PRESS RELEASE EXHIBIT 99.1 BLUE VALLEY BAN CORP NEWS RELEASE 11935 Riley Overland Park, Kansas 66225-6128 CONTACT: Mark A. Fortino Treasurer (913) 338-1000 For Immediate Release Friday, October 10, 2003 BLUE VALLEY BAN CORP REPORTS THIRD QUARTER 2003 EARNINGS Overland Park, Kansas, October 10, 2003 - Blue Valley Ban Corp (OTCBB: BVBC) ("the Company") today announced net income of $1.5 million, or fully-diluted earnings per share (EPS) of $0.64, for the third quarter of 2003, compared to net income of $1.7 million, or $0.74 per share for the same period in 2002. Net income for the nine months ended September 30, 2003 was $4.9 million or $2.12 per share, compared to $4.0 million or $1.79 for the same period in 2002. "Increases in interest rates during the quarter reduced mortgage originations. We expect this trend will continue into the fourth quarter, reducing the contribution from our mortgage divisions" said Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp. OPERATING RESULTS During the third quarter of 2003, net interest income increased 8.1% to $4.6 million compared to $4.2 million for the same period in the prior year, primarily due to growth in earning assets. Noninterest income increased to $6.6 million during this period from $5.3 million in the prior year, an increase of 24.9%. The principal factor driving the increase in noninterest income was Loans Held for Sale Income earned on loans originated and sold by the Company's National and Local Mortgage divisions. The low interest rate environment prevalent throughout most of the year resulted in strong demand for residential mortgage loan originations. Noninterest expense increased 38.0% to $8.7 million compared to $6.3 million in the prior year period. The increase relates primarily to costs associated with the Company's growth and expansion. For the nine-month period ending September 30, 2003, net interest income increased 13.3% to $13.4 million compared to $11.8 million for the same period in 2002, primarily due to growth in earning assets. Noninterest income increased to $18.9 million during this period from $12.8 million in the prior year, an increase of 47.8%. Noninterest expense increased by 39.3% to $23.4 million compared to $16.8 million in the prior year period. The increase relates primarily to costs associated with the Company's growth and expansion. Total assets, loans and deposits at September 30, 2003 were $621.4 million, $413.7 million and $465.0 million, respectively, compared to $559.1 million, $357.7 million and $426.7 million one year earlier, respectively, increases of 11.1%, 15.6%, and 9.0%, respectively. ABOUT BLUE VALLEY BAN CORP Blue Valley Ban Corp is a bank holding company that, through its subsidiaries, provides banking services to closely-held business, their owners, professionals and individuals in Johnson County, Kansas. In addition, the Company originates residential mortgages locally and 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 2003 CONSOLIDATED FINANCIAL HIGHLIGHTS (all dollars in thousands, except per share data) (unaudited)
Three Months Ended September 30 2003 2002 ------------------------------- ---- ---- Net interest income $ 4,552 $ 4,212 Provision for loan losses 150 660 Non-interest income 6,637 5,312 Non-interest expense 8,713 6,316 Net income 1,495 1,656 Net income per share - Basic 0.66 0.76 Net income per share - Diluted 0.64 0.74 Return on average assets 0.89% 1.22% Return on average equity 15.31% 20.76% Nine Months Ended September 30 ------------------------------ Net interest income $ 13,427 $ 11,848 Provision for loan losses 1,350 1,730 Non-interest income 18,941 12,814 Non-interest expense 23,384 16,792 Net income 4,897 3,997 Net income per share - Basic 2.19 1.84 Net income per share - Diluted 2.12 1.77 Return on average assets 1.05% 1.02% Return on average equity 17.61% 17.62% At September 30 --------------- Assets $621,428 $559,105 Loans 413,723 357,738 Deposits 464,970 426,719 Stockholders' Equity 39,628 32,663