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

Blue Valley Ban Corp. (OTCQX: BVBC) (the “Company”) today reported consolidated earnings for the quarter ended September 30, 2017 of $1,137,000, compared to $562,000 for the comparable period ended September 30, 2016. For the nine months ended September 30, 2017, the Company earned $3,162,000 compared to $1,432,000 for the nine months ended September 30, 2016. Earnings per common share for the quarter- and year-to-date periods ended September 30, 2017 were $0.21 and $0.58, respectively, compared to $0.10 and $0.27, respectively, for the quarter- and year-to-date periods ended September 30, 2016. 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, 2017.

Robert D. Regnier, Chairman and CEO of Blue Valley Ban Corp., commented, “The Company’s improved operating results for the quarter and nine months ended September 30, 2017 resulted from our continued focus on implementation of strategic initiatives, which included loan growth, improved earning asset mix, deposit growth, improvements to asset quality including the mitigation of foreclosed asset balances and a continued focus on operational efficiencies. The credit quality of our loan portfolio, validated by recent internal and external assessments, enabled the Company to record a negative provision for loan losses during the quarter ended September 30, 2017. In addition, we reduced the balance of foreclosed assets by $1.1 million during the quarter. We are resolute in our commitment to the foundation for growth and success reflected by our strategic initiatives, which we have established over the past several years.”

For the quarter ended September 30, 2017, net interest income increased $870,000, while the Company’s non-interest income declined by $487,000, compared to the prior year period. For the quarter ended September 30, 2017, the Company’s non-interest expense declined by $112,000, compared to the prior year period.

The Company recorded a $500,000 negative provision for loans losses during the quarter ended September 30, 2017, compared to no provision during the quarter ended September 30, 2016. Management evaluates credit risk on an ongoing basis to determine an appropriate level for the allowance for loan losses (ALLL). Net recoveries to the ALLL as well as the Company’s persistently low ratio of nonperforming loans to total loans, net of the impact of loan growth during the period, were key factors for the determination of the level for the ALLL for the quarter ended September 30, 2017. The negative provision reduced the Company’s ALLL to $5,900,000 and the Company’s ratio of ALLL to total loans to 1.11% as of September 30, 2017. The Company’s ratio of total reserves to non-accrual loans was approximately 565.75% as of September 30, 2017, which exceeds the most recent Uniform Bank Performance Report (UBPR) peer group ratio of 4.06%. The Company’s ratio of nonperforming loans to total loans was 0.20% as of September 30, 2017, which was below the most recent UBPR peer group of 0.80%.

At September 30, 2017, the Company’s ratio of non-accrual loans plus loans greater than 90 days past due to total loans was 0.20%, which compares favorably with the most recent UBPR peer group ratio of 0.77%.

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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