Santa Clara Valley Bank has reported a net loss of $467,000, or $0.43 per basic share, for the first quarter ended March 31, 2009, compared to a net income of $86,000, or $0.08 per basic share, for the same quarter of 2008.
For the first quarter of 2009, assets grew to $140m from $121m at year-end 2008, an increase of 15.4%. For the first quarter of 2009, revenues were $1.87m, a 5.9% decrease compared to $1.99m for the first quarter of 2008.
Interest income was $1.71m, compared to $1.70m in the corresponding quarter of 2008. Non-interest income was $166,000, compared to $287,000 in the comparable period of 2008.
Michael Hause, president and CEO at Santa Clara Valley Bank, said: The deposit growth was both a blessing and a challenge, at least temporarily. As time deposits came to Santa Clara Valley Bank to seek safety from various other risks, the bank couldn’t deploy the deposits rapidly enough to result in an increase in net interest margin. This trend should reverse itself in the second quarter as Santa Clara Valley Bank funds new loan volume and purchases higher yielding investments.
