PRESS RELEASE
August 09, 2005
Contact
Ken Parsons, President/CEO
(360) 459 -1100
Venture Financial Group Reports record 2nd Quarter
Earnings
SECOND
QUARTER HIGHLIGHTS
Quarterly income and earnings per share increase 7.7% and
10.7%, respectively
Loans grow $69 million from same period in 2004
Interest income increases $1.9 million or 25% from same period
in 2004
Olympia, Wash. - August
9, 2005 - Ken F. Parsons, Sr., CEO of Venture Financial
Group, Inc. ("Venture" or the "Company"), parent company of
Venture Bank, (www.venture-bank.com)
today announced second quarter net income of $2,036,000, an
increase of 7.7% or $146,000 compared to $1,890,000 for the
second quarter 2004. The $2,036,000 represents the highest
second quarter earnings in Company history. Diluted earnings
per share were $0.31 for the quarter ended June 30, 2005 up
10.7% from $0.28 for the same quarter in 2004.
For the quarter ended June 30, 2005,
assets totaled $594 million, an increase of 12.5% over the
$528 million in total assets at June 30, 2004. Total loans
increased $69 million or 17.9% to $455 million from $386
million at June 30, 2004. Securities available for sale
decreased $6 million or 8% to $69 million from $75 million.
The cash received from this decrease has been used to fund
loan growth over the last twelve months.
Total deposits decreased by $8.9 million
or 2.2% to $389 million as of June 30, 2005. This decrease
is directly attributable to the branch divestiture in the
fourth quarter 2004. Excluding the sale of $96 million of
deposits in the branch divesture, total deposits increased
by $87 million or 21.9%.
"Our mid-year results send a clear
message that our strategic initiatives over the past year,
including our continued re-branding efforts, are working.
Our loan and deposit growth indicate that our financial
center teams are doing a great job and are committed to the
financial success of the Company," said Ken F. Parsons Sr.,
Venture Financial Group Chairman and CEO. "The strong local
economy will continue to benefit the Company’s growth, while
the flat yield curve, with short term rates rising faster
than long term rates, will begin to create challenges to our
interest rate margins. Venture Financial is up to the
challenge, and I am confident our team will continue to add
value to our franchise and shareholders," continued Parsons.
Operating Results
Quarter Ended June 30, 2005
Net Interest Income
Net interest income for the first quarter of 2005 increased
10% to $6.6 million, from $6.0 million for the quarter ended
June 30, 2004. This increase is due to a $1.9 million
increase in interest income related to a $69 million
increase in loan volume, offset by a $1.3 million increase
in interest expense primarily due to a $63 million increase
in borrowings following the sale of seven branches in the
fourth quarter 2004.
Net interest income for the six months ended June 30, 2005 increased
by $1 million, or 8.3%, compared to the same time period in 2004 to a
total of $13 million. This increase is due to a $3.1 million increase
in interest income offset by a $2.1 million increase in interest expense.
Non Interest Income
Non interest income increased by $15,000 or 0.75% to a total
of $2,003,000 for the quarter ended June 30, 2005 compared
to $1,988,000 for the same quarter in 2004. In the second
quarter 2005 there was a $206,000 decrease in service charge
income due to the sale of seven branches in the fourth
quarter 2004. This decrease was partially offset by an
increase of $123,000 in saleable mortgage income, and an
increase of $98,000 in other fee income.
Non interest income for the six months ended June 30, 2005 increased
by $269,000 or 7.1% over the same period in 2004 to a total of
$4,053,000. This increase is due largely to a one time gain on
the sale of OREO property of $300,000.
Non Interest Expense
Total non interest expense increased by $267,000 or 5.21%
for the three months ended June 30, 2005 compared to the
three months ended June 30, 2004. This increase is due to a
$71,000 increase in legal expenses, an increase in audit
fees of $77,000 due to expenses associated with Sarbanes
Oxley, and an increase in salary expense of $100,000
attributable to the increase in mortgage loan production.
For the six months ending June 30, 2005, total non interest
expense increased by $672,000 or 6.7% compared to the same
time period in 2004. This increase is due to a $248,000
increase in legal expenses, an increase in audit fees of
$110,000 due to expenses associated with Sarbanes- Oxley, an
increase of $181,000 in expenses associated with new
marketing campaigns intended to bring in new deposits, and
an increase in salary expense of $124,000 attributable to
the increase in mortgage loan production year over year.
Nonperforming Assets
Nonperforming assets (which includes nonperforming loans and
other nonperforming assets) as a percentage of total assets
was 1.03%, 1.05% and 0.56% as of June 30, 2005, December 31,
2004 and June 30, 2004 respectively. Nonperforming loans as
a percentage of total loans was 1.27%, 1.18% and 0.42% as of
June 30, 2005, December 31, 2004 and June 30, 2004
respectively.
"The loan portfolio has grown nearly 6% for the first
six months and near 18% over the last twelve months. We
continue to see good demand in the commercial, retail,
contractor and developer segments through our market area,
with good diversification as to project type, geographic
location and borrowers. The Company continues to maintain
good credit quality," indicated Bruce Marley, Executive Vice
President and Chief Lending Officer.
Venture Financial Group, through its wholly owned subsidiary
Venture Bank, has 14 offices in four western Washington
counties and offers a full spectrum of financial services
including commercial, construction, residential and consumer
lending, deposit products and other banking services.
Further information about the Bank may be found on the
Internet at
www.venture-bank.com.
Note Regarding Forward-Looking Information
This press release includes forward-looking statements
within the meaning of the "Safe-Harbor" provisions of the
Private Securities Litigation Reform Act of 1995, which
management believes are a benefit to shareholders. These
statements are necessarily subject to risk and uncertainty
and actual results could differ materially due to certain
risk factors, including those set forth from time to time in
the Company’s filings with the Securities and Exchange
Commission (the "SEC"). You should not place undue reliance
on forward-looking statements and we undertake no obligation
to update any such statements. Specific risks related to
forward-looking statements in this press release include the
continued strength of the local economy and the Company’s
ability to maintain growth in the current interest rate
environment.
Condensed Statements of Condition
Condensed Statements of
Income
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