For more information call Angela S. Salgado at 352-6181.
GAFCU presents tax law seminar Thursday
The Government Agencies Federal Credit Union members financial services program will host a tax law change seminar Thursday beginning at 6 p.m. at the GAFCU's Salton City branch.
Contact a local GAFCU branch or GAFCU's call center at 337-4200 to make reservations.
El Centro Chamber to host mixer Thursday
The El Centro Chamber of Commerce & Visitors Bureau will have its November mixer from 5 to 7 p.m. Thursday at 356 E. Main St. in El Centro.
DB Pump & Supply is sponsoring this month's mixer. All El Centro chamber members are invited and encouraged to attend.
For more information call 352-3681.
VIB reports third quarter net income slightly down
VIB Corp. (Nasdaq: VIBC) reported its third quarter net income was $2.24 million, or 18 cents per diluted share, compared to $2.26 million, or 18 cents per diluted share, for the like quarter of 2000.
Fully diluted cash earnings per share remained level year over year at 20 cents for the quarter. Net income for the first nine months ended Sept. 30, grew 9 percent to $6.64 million, or 52 cents per diluted share, from $6.08 million, or 48 cents per diluted share, in the like period last year. Per share figures have been adjusted for the 3 percent stock dividend issued June 15.
"This year's declining interest rate environment has begun to put pressure on our margins, reducing net interest income," said Dennis Kern, VIB president and chief executive officer. "Positive actions were taken in previous quarters to restructure our balance sheet and reduce interest rate risk. However, these actions have not been able to quite keep pace with the continuous aggressive lowering of interest rates, causing some margin compression this quarter. We remain solidly profitable and are still growing for the foreseeable future, although perhaps at a slower rate than previously anticipated."
Non-interest income rose 15 percent to $2.6 million for the third quarter of 2001, compared to $2.3 million in the like quarter last year. Increased service charges and fees contributed to the improvement.
"We increased fees and service charges during the third quarter to be more in line with our competition," said Kern. "We will complete the implementation of those service charge changes during the fourth quarter, which should raise non-interest income significantly in the coming year."
Non-interest income for the first three quarters of 2001 improved 29 percent to $8.7 million compared to $6.8 million in the like period of 2000.
VIB Corp.'s revenues (net interest income before provision for credit losses, plus non-interest income) increased 6 percent to $14.8 million in the quarter compared to $14 million in the like quarter a year ago. Revenues for the first nine months of 2001 grew 10 percent to $44.9 million compared to $41 million in the like period last year.
"Last quarter we announced the strategic decision to discontinue our mortgage banking division," said Kern. "This created about $50,000 in additional expenses to finalize the implementation of the decision during the third quarter, but is expected to translate into long-term annualized savings of over $1 million." Non-interest expense for the third quarter was $10.7 million, down sequentially from $11.0 million in the second quarter of 2001. Non-interest expense was $9.9 million in the third quarter of 2000.
Total assets at Sept. 30 increased 7 percent to $1.17 billion, compared to $1.10 billion at Sept. 30, 2000. Stockholders' equity grew 21 percent to $80 million from $66.0 million a year earlier. Book value at Sept. 30 increased 20 percent to $6.32 per share from $5.26 per share a year earlier.
Net loans grew 6 percent to $835.8 million from $786.9 million a year ago. Deposits rose 5 percent to $891.3 million compared to $845.2 million last year.
"Loan growth is steady and our pipeline remains strong, in spite of the current economic climate," said Kern. "Even though building deposits is difficult in the current interest rate environment, we are experiencing continued core deposit growth."