OVERLAND PARK, Kan.--(BUSINESS WIRE)--

Blue Valley Ban Corp. (OTCQX: BVBC) (the “Company”) today reported consolidated earnings for the quarter ended September 30, 2018 of $1.8 million compared to $1.1 million for the comparable period ended September 30, 2017. For the nine months ended September 30, 2018, the Company earned $5.0 million compared to $3.2 million for the nine months ended September 30, 2017. Earnings per common share for the quarter- and year-to-date periods ended September 30, 2018 was $0.32 and $0.90, respectively, compared to $0.21 and $0.58, respectively, for the quarter- and year-to-date periods ended September 30, 2017. Numerous key aspects of the operating results and financial condition for the Company reflected positive trends and results as of and during the periods ended September 30, 2018.

Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp., commented, "We continue to develop new customer relationships and expand services to our current customer base. This is evident in the strong core deposit growth we experienced this year with total deposits up $38.6 million or 6.8% since December 31, 2017. We remain committed to growth through relationships in our community."

For the quarter ended September 30, 2018, net interest income increased by $225,000, or 3.9%, compared to the prior year period. The Company’s non-interest income increased by $441,000, or 39.0%, compared to the prior year period, primarily due to gains of $226,000 recognized on sales of OREO properties and additional rental income of $142,000 as a result of a fully leased property held for sale. For the quarter ended September 30, 2018, the Company’s non-interest expense decreased by $473,000, or 8.4%, compared to the prior year period.

The Tax Cuts and Jobs Act (Tax Reform), enacted in December 2017, positively impacted consolidated earnings in the third quarter of 2018. The Tax Reform reduced the Company’s effective tax rate to 27.3% in the third quarter of 2018 compared to 36.5% in 2017. The lower effective tax rate resulted in a tax savings of approximately $223,000 for the quarter ended September 30, 2018.

As a result of the volume and composition of loan growth and other factors used to determine the level of the allowance for loan losses, the Company did not record a provision for loan loss for the quarter ended September 30, 2018, compared to a negative provision of $500,000 recorded during the same period in the prior year. The Company’s ratio of total reserves to non-accrual loans was approximately 1,024% as of September 30, 2018, which exceeds the most recent Uniform Bank Performance Report (UBPR) peer group ratio of 463%. At September 30, 2018, the Company’s ratio of nonperforming loans to total loans was 0.11%, which compares favorably with the most recent UBPR peer group ratio of 0.64%.

About Blue Valley Ban Corp.

Blue Valley Ban Corp. is a bank holding company that, through its subsidiaries, provides banking services to closely-held businesses, their owners, professionals and individuals in Johnson County, Kansas.

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 "anticipate," "believe," "can," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," or the negative of these terms or other comparable terminology. 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; inability to maintain or increase deposit base and secure adequate funding; a continued deterioration of general economic conditions or the demand for housing in the Company's market areas; legislative or regulatory changes; regulatory action; continued adverse developments in the Company's loan or investment portfolio; any inability to obtain funding on favorable terms; the Company’s non-payment on Trust Preferred Securities or other debt; the loss of key personnel; significant increases in competition; potential unfavorable actions from rating agencies; potential unfavorable results of litigation to which the Company may become a party, 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. We operate in a very competitive and rapidly changing environment. New risks emerge from time to time, and it is not possible for us to predict all risk factors. Nor can we address the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

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