UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549
FORM 8-K CURRENT REPORT
Pursuant to Section 13 or 15(d) of the |
Date of Report: October 19, 2011
(Date of earliest event reported)
Central Valley Community Bancorp
(Exact name of registrant as specified in its charter)
CA
(State or other jurisdiction
of incorporation)
000-31977
(Commission File Number)
77-0539125
(IRS Employer
Identification Number)
7100 N. Financial Dr. Ste. 101
(Address of principal executive offices)
93720
(Zip Code)
559-323-3439
(Registrant's telephone number, including area code)
Not Applicable
(Former Name or Former Address, if changed since last report)
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Item 2.02. Results of Operations and Financial Condition On October 19, 2011, Central Valley Community Bancorp issued a press release containing unaudited financial information and accompanying discussion for the three and nine months ended September 30, 2011. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference. The information in the Form 8-K filed on October 19, 2011 shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of that Section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Securities Exchange Act of 1934, regardless of any general incorporation language in such filing.
Item 9.01. Financial Statements and Exhibits
(a) Financial statements:
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Dated: October 19, 2011 |
CENTRAL VALLEY COMMUNITY BANCORP
By: /s/ Daniel Doyle |
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| Exhibit No. | Description |
| 99.1 | Press Release of Central Valley Community Bancorp dated October 19, 2011 |
FRESNO, CA -- (Marketwire - October 19, 2011) - The Board of Directors of Central Valley Community Bancorp (Company) (NASDAQ: CVCY), the parent company of Central Valley Community Bank (Bank), reported today unaudited consolidated net income of $4,769,000, and diluted earnings per common share of $0.46 for the nine months ended September 30, 2011, compared to $2,660,000 and $0.26 per diluted common share for the nine months ended September 30, 2010. While net interest income before provision for credit losses for the period decreased compared to the corresponding period in 2010, net income increased primarily as a result of lower provision for credit losses and an increase in non-interest income.
During the first three quarters of 2011, the Company's total assets increased 7.37%, total liabilities increased 7.11% and shareholders' equity increased 9.20% compared to December 31, 2010. Annualized return on average equity (ROE) for the nine months ended September 30, 2011 was 6.21%, compared to 3.71% for the same period in 2010. The increase in ROE reflects an increase in net income, notwithstanding an increase in capital from an increase in other comprehensive income and an increase in retained earnings. Annualized return on average assets (ROA) was 0.81% for the first nine months of 2011, compared to 0.47% for the same period in 2010. The ROA increase is due to an increase in net income, notwithstanding an increase in average assets.
During the nine months ended September 30, 2011, the Company recorded a provision for credit losses of $750,000, compared to $2,900,000 for the same period in 2010. During nine months ended September 30, 2011, the Company recorded $733,000 in net loan charge-offs, compared to $1,994,000 for the same period in 2010. The annualized net charge-off ratio, which reflects net charge-offs to average loans, was 0.23% for the nine months ended September 30, 2011, and 0.58% for the same period in 2010. The Company also recorded OREO related expenses of $11,000 during the first three quarters of 2011 compared to $759,000 for the same period in 2010.
At September 30, 2011, the allowance for credit losses was $11,031,000, compared to $11,014,000 at December 31, 2010, a net increase of $17,000. The allowance for credit losses as a percentage of total loans was 2.59% at September 30, 2011, and 2.55% at December 31, 2010. The Company believes the allowance for credit losses is adequate to provide for probable losses inherent within the loan portfolio at September 30, 2011.
Total non-performing assets were $17,064,000, or 2.04% of total assets, as of September 30, 2011 compared to $19,984,000 or 2.57% of total assets as of December 31, 2010. Total non-performing assets as of June 30, 2011 were of $14,959,000 or 1.89% of total assets.
The following provides a reconciliation of the change in non-accrual loans for the first three quarters of 2011.
Transfers
to Fore-
Additions closed Returns
Balances to Non- Collat- to Balances
(Dollars in December accrual Net Pay eral - Accrual Charge September
thousands) 31, 2010 Loans Downs OREO Status Offs 30, 2011
------------ -------- --------- ------- ------- ------- ------ ---------
Non-accrual
loans:
Commercial
and
industrial $ 196 $ 371 $ (34) $ - $ - $ (172) $ 361
Real estate 1,407 1,234 (924) - (195) (26) 1,496
Real estate
construc-
tion and
other land
loans - - - - - - -
Equity
loans and
lines of
credit 669 977 (262) (244) - (229) 911
Restructured
loans (non-
accruing):
Commercial
and
industrial 1,279 - (429) - (850) - -
Real estate 7,183 2,796 (2,882) - - - 7,097
Real estate
construc-
tion and
other land
loans 7,827 - (612) - - (286) 6,929
Consumer - 82 - - - (82) -
-------- --------- ------- ------- ------- ------ ---------
Total non-
accrual $ 18,561 $ 5,460 $(5,143) $ (244) $(1,045) $ (795) $ 16,794
======== ========= ======= ======= ======= ====== =========
The following provides a summary of the change in the OREO balance for the nine months ended September 30, 2011:
Nine Months
Ended
September 30,
(Dollars in thousands) 2011
------------------------------------------------------------- -------------
Balance, December 31, 2010 $ 1,325
Additions 527
Dispositions (2,190)
Write-downs -
Net gain on disposition 608
-------------
Balance, September 30, 2011 $ 270
-------------
The Company's annualized net interest margin (fully tax equivalent basis) was 4.68% for the nine months ended September 30, 2011, compared to 5.05% for the same period in 2010. The 2011 net interest margin decrease in the period-to-period comparison resulted primarily from a decrease in the yield on the Company's investment portfolio partially offset by a decrease in the Company's cost of funds. For the nine months ended September 30, 2011, the effective yield on total earning assets decreased 61 basis points to 5.11% compared to 5.72% for the same period in 2010, while the cost of total interest-bearing liabilities decreased 28 basis points to 0.61% compared to 0.89% for the same period in 2010. The amount of the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased while the effective yield on average investment securities decreased to 3.42% for the nine months ended September 30, 2011 compared to 4.66% for the same period in 2010. The amount of the Company's average loans decreased, while the effective yield on average loans increased to 6.32% from 6.30% over the same periods. The decrease in yield in the Company's investment securities during the first nine months of 2011 resulted primarily from the purchase of lower yielding investment securities along with an increase in average balances in interest bearing deposits in other banks. The cost of total deposits decreased 20 basis points to 0.42% for the nine months ended September 30, 2011 compared to 0.62% for the same period in 2010. Net interest income before the provision for credit losses for the nine months ended September 30, 2011 was $23,341,000, compared to $24,089,000 for the same period in 2010, a decrease of $748,000 or 3.11%. Net interest income decreased as a result of these yield changes offset by an increase in average earning assets and interest-bearing liabilities.
Total average assets for the nine months ended September 30, 2011 were $786,394,000, compared to $752,883,000 for the same period in 2010, an increase of $33,511,000 or 4.45%. Total average loans were $431,506,000 for the first three quarters of 2011, compared to $458,361,000 for the same period in 2010, representing a decrease of $26,855,000 or 5.86%. Total average investments, including deposits in other banks and Federal funds sold, increased to $283,567,000 for the nine months ended September 30, 2011 from $222,965,000 for the same period in 2010, representing an increase of $60,602,000 or 27.18%. Total average deposits increased $34,360,000 or 5.45% to $665,193,000 for the nine months ended September 30, 2011, compared to $630,833,000 for the same period in 2010. Average interest-bearing deposits increased $6,595,000, or 1.37% and average non-interest bearing demand deposits increased $27,765,000 or 18.73% for the nine months ended September 30, 2011 compared to the same period in 2010. The Company's ratio of average non-interest bearing deposits to total deposits was 26.46% for the nine months ended September 30, 2011 compared to 23.50% for the same period in 2010.
Non-interest income for the nine months ended September 30, 2011 increased $1,565,000, or 46.37% to $4,940,000, compared to $3,375,000 for the same period in 2010, mainly due to an increase in gain on sale of other real estate owned of $608,000, an increase in net realized gains on sales and calls of investment securities of $217,000, a $142,000 gain related to the final distribution of the Service 1st escrow account, an $85,000 gain related to the collection of life insurance proceeds, and a decrease in other than temporary impairment charges of $669,000.
Non-interest expense for the nine months ended September 30, 2011 decreased $313,000, or 1.44% to $21,442,000 compared to $21,755,000 for the same period in 2010, primarily due to decreases in OREO expenses of $748,000, legal fees of $101,000, and regulatory assessments of $223,000, partially offset by increases in salaries and employees benefits of $590,000.
The Company recorded a provision for income taxes of $1,320,000 for the nine months ended September 30, 2011, compared to $149,000 for the same period in 2010. The effective tax rate for the first nine months of 2011 was 21.68% compared to 5.30% for the same period in 2010. The increase in the effective tax rate is primarily due to an increase in taxable income and a decrease in permanent tax differences as a percentage of taxable income.
Quarter Ended September 30, 2011
For the quarter ended September 30, 2011, the Company reported unaudited consolidated net income of $1,408,000 and diluted earnings per common share of $0.13, compared to $864,000 and $0.08 per diluted share, for the same period in 2010, and $1,773,000 and $0.18 per diluted share, for the quarter ended June 30, 2011. The increase in net income during the third quarter of 2011 compared to the same period in 2010 is primarily due to decreases in the provision for credit losses and increases in non-interest income partially offset by decreases in net interest income before the provision for credit losses.
Annualized return on average equity for the third quarter of 2011 was 5.34%, compared to 3.53% for the same period of 2010. This increase is reflective of an increase in net income partially offset by an increase in capital. Annualized return on average assets was 0.70% for the third quarter of 2011 compared to 0.46% for the same period in 2010. This increase is due to an increase in net income partially offset by an increase in average assets.
In comparing the third quarter of 2011 to the third quarter of 2010, average total loans decreased $30,125,000, or 6.48%. During the third quarter of 2011, the Company recorded a $400,000 provision for credit losses, compared to $1,300,000 for the same period in 2010. During the third quarter of 2011, the Company recorded $404,000 in net loan charge-offs compared to $1,662,000 for the same period in 2010. The net charge-off ratio, which reflects annualized net charge-offs to average loans, was 0.37% for the quarter ended September 30, 2011 compared to 1.43% for the quarter ended September 30, 2010.
The following provides a reconciliation of the change in non-accrual loans for the quarter ended September 30, 2011.
Transfers
to Fore-
Additions closed Returns
Balances to Non- Collat- to Balances
(Dollars in June 30, accrual Net Pay eral - Accrual Charge September
thousands) 2011 Loans Downs OREO Status Offs 30, 2011
-------------- -------- --------- ------- ------- ------- ------ ---------
Non-accrual
loans:
Commercial
and
industrial $ 107 $ 304 $ (9)$ - $ - $ (41) $ 361
Real estate 748 937 (189) - - - 1,496
Real estate
construction
and other
land loans - - - - - - -
Equity loans
and lines of
credit 869 413 (11) (149) - (211) 911
Restructured
loans (non-
accruing):
Commercial
and
industrial 209 - (209) - - - -
Real estate 5,536 2,796 (1,235) - - - 7,097
Real estate
construction
and other
land loans 7,490 - (275) - - (286) 6,929
Consumer - - - - - - -
-------- --------- ------- ------- ------- ------ ---------
Total non-
accrual $ 14,959 $ 4,450 $(1,928)$ (149) $ - $ (538) $ 16,794
======== ========= ======= ======= ======= ====== =========
The following provides a summary of the change in the OREO balance for the quarter ended September 30, 2011:
Three Months
Ended
September 30,
(Dollars in thousands) 2011
------------------------------------------------------------- -------------
Balance, June 30, 2011 $ -
Additions 270
Dispositions (75)
Write-downs -
Net gain on disposition 75
-------------
Balance, September 30, 2011 $ 270
=============
Average total deposits for the third quarter of 2011 increased $49,840,000 or 7.85% to $684,721,000 compared to $634,881,000 for the same period of 2010.
The Company's net interest margin (fully tax equivalent basis) decreased 44 basis points to 4.66% for the three months ended September 30, 2011, from 5.10% for the three months ended September 30, 2010. Net interest income, before provision for credit losses, decreased $224,000 or 2.74% to $7,949,000 for the third quarter of 2011, compared to $8,173,000 for the same period in 2010. The decreases in net interest margin and in net interest income are primarily due to a decrease in the yield of interest-earning assets and a decrease in average loan balances. Over the same periods, the cost of total deposits decreased 18 basis points to 0.37% compared to 0.55% in 2010.
Non-interest income increased $302,000 or 23.36% to $1,595,000 for the third quarter of 2011 compared to $1,293,000 for the same period in 2010, primarily due to an increase in net gains on sales and calls of investment securities of $242,000. The third quarter of 2011 non-interest income also included a $75,000 gain from the sale of other real estate owned. Non-interest expense decreased $187,000 or 2.52% for the same periods mainly due to decreases in regulatory assessments and other real estate owned expenses, partially offset by increases in salary and employee benefits.
During the third quarter of 2011, the Company entered into a Securities Purchase Agreement with the Small Business Lending Fund of the U.S. Treasury (the "Treasury"), under which the Company issued 7,000 shares of Senior Non-Cumulative Perpetual Preferred Stock, Series C, to the Treasury for an aggregate purchase price of $7,000,000. Simultaneously, the Company agreed with Treasury to redeem 7,000 shares of the Company's Series A Fixed Rate Cumulative Perpetual Preferred Stock originally issued pursuant to the Treasury's Capital Purchase Program in 2009 for an aggregate price of $7,000,000. The redemption of the Series A Stock resulted in an acceleration of the remaining discount and caused an increase in the preferred stock dividends and accretion of $103,000 during the third quarter of 2011. Also in connection with the repurchase of the Series A Stock, the Company repurchased the common stock warrant originally issued to Treasury in connection with the CPP transaction for total consideration of $185,000.
The Company recorded a provision for income taxes of $514,000 for the quarter ended September 30, 2011, compared to a tax benefit of $107,000 for the same period in 2010. The effective tax rate for the third quarter of 2011 was 26.74% compared to (14.13%) for the same period in 2010. The increase in the effective tax rate is due to the establishment of an $118,000 deferred tax asset valuation allowance related to a California capital loss carryforward, an increase in taxable income and a decrease in permanent tax differences as a percentage of taxable income.
"The quarter proved to be eventful with some expense-related activity including the relocation of the Modesto office, the pay-off of TARP funding, redemption of warrants, completion of funding for the Small Business Lending Fund and conversion to a new Online Banking and Bill Pay service. Following this busy quarter, the Bank ultimately remains well-positioned for growth and stability," stated Daniel J. Doyle, president and CEO for Central Valley Community Bancorp and Central Valley Community Bank.
"The Bank continues to show very strong deposit growth from new customers as a result of offices and personnel added in the past year as well as growth from existing relationships. However, profits continue to be impacted by the decline in loan growth with the deleveraging by both business and consumer customers, cyclical pay down of some agricultural loans and reductions in problem loans. While there was a slight increase in non-performing loans due to one secured borrower and a small OREO asset that has been subsequently sold, classified loans are continuing to show a declining trend," concluded Doyle.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank, headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank currently operates 17 full service offices in Clovis, Fresno, Kerman, Lodi, Madera, Oakhurst, Prather, Merced, Sacramento, Stockton, Tracy, and Modesto, California. Additionally, the Bank operates Commercial Real Estate Lending, SBA Lending and Agribusiness Lending Departments. Investment services are provided by Investment Centers of America and insurance services are offered through Central Valley Community Insurance Services LLC. Members of Central Valley Community Bancorp's and the Bank's Board of Directors are: Daniel N. Cunningham (Chairman), Sidney B. Cox, Edwin S. Darden, Jr., Daniel J. Doyle, Steven D. McDonald, Louis McMurray, Wanda L. Rogers (Director Emeritus), William S. Smittcamp, and Joseph B. Weirick.
More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com.
Forward-looking Statements- Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained herein that are not historical facts, such as statements regarding the Company's current business strategy and the Company's plans for future development and operations, are based upon current expectations. These statements are forward-looking in nature and involve a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to (1) significant increases in competitive pressure in the banking industry; (2) the impact of changes in interest rates, a decline in economic conditions at the international, national or local level on the Company's results of operations, the Company's ability to continue its internal growth at historical rates, the Company's ability to maintain its net interest margin, and the quality of the Company's earning assets; (3) changes in the regulatory environment; (4) fluctuations in the real estate market; (5) changes in business conditions and inflation; (6) changes in securities markets; and (7) the other risks set forth in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2010. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
------------- -------------
(In thousands, except share amounts) 2011 2010
------------------------------------------------ ------------- -------------
(Unaudited)
ASSETS
Cash and due from banks $ 21,014 $ 11,357
Interest-earning deposits in other banks 76,268 89,042
Federal funds sold 791 600
------------- -------------
Total cash and cash equivalents 98,073 100,999
Available-for-sale investment securities
(Amortized cost of $254,136 at September 30,
2011 and $189,682 at December 31, 2010) 262,050 191,325
Loans, less allowance for credit losses of
$11,031 at September 30, 2011 and $11,014 at
December 31, 2010 414,735 420,583
Bank premises and equipment, net 5,950 5,843
Other real estate owned 270 1,325
Bank owned life insurance 11,563 11,390
Federal Home Loan Bank stock 2,893 3,050
Goodwill 23,577 23,577
Core deposit intangibles 887 1,198
Accrued interest receivable and other assets 14,910 18,304
------------- -------------
Total assets $ 834,908 $ 777,594
------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 194,190 $ 173,867
Interest bearing 512,101 476,628
------------- -------------
Total deposits 706,291 650,495
Short-term borrowings - 10,000
Long-term debt 4,000 4,000
Junior subordinated deferrable interest
debentures 5,155 5,155
Accrued interest payable and other liabilities 13,115 10,553
------------- -------------
Total liabilities 728,561 680,203
------------- -------------
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value, $1,000 per
share liquidation preference; 10,000,000
shares authorized; Series A, no par value,
7,000 shares issued and outstanding at
December 31, 2010 - 6,864
Preferred stock, no par value, $1,000 per
share liquidation preference; 10,000,000
shares authorized; Series C, no par value,
7,000 shares issued and outstanding at
September 30, 2011 7,000 -
Common stock, no par value; 80,000,000
authorized; issued and outstanding 9,547,816
at September 30, 2011 and 9,109,154 at
December 31, 2010 40,505 38,428
Non-voting common stock, 1,000,000 authorized;
issued and outstanding 258,862 at December
31, 2010 - 1,317
Retained earnings 54,185 49,815
Accumulated other comprehensive income, net of
tax 4,657 967
------------- -------------
Total shareholders' equity 106,347 97,391
------------- -------------
Total liabilities and shareholders' equity $ 834,908 $ 777,594
============= =============
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the Nine Months
Ended September 30,
------------------------
(In thousands, except share and per share amounts) 2011 2010
-------------------------------------------------- ----------- -----------
INTEREST INCOME:
Interest and fees on loans $ 19,662 $ 20,754
Interest on deposits in other banks 141 62
Interest on Federal funds sold 1 1
Interest and dividends on investment securities:
Taxable 3,307 4,344
Exempt from Federal income taxes 2,522 2,277
----------- -----------
Total interest income 25,633 27,438
----------- -----------
INTEREST EXPENSE:
Interest on deposits 2,076 2,912
Interest on junior subordinated deferrable
interest debentures 73 84
Other 143 353
----------- -----------
Total interest expense 2,292 3,349
----------- -----------
Net interest income before provision for
credit losses 23,341 24,089
PROVISION FOR CREDIT LOSSES 750 2,900
----------- -----------
Net interest income after provision for credit
losses 22,591 21,189
----------- -----------
NON-INTEREST INCOME:
Service charges 2,183 2,487
Appreciation in cash surrender value of bank
owned life insurance 289 293
Loan placement fees 185 193
Gain on disposal of other real estate owned 608 -
Net realized gains on sales and calls of
investment securities 249 32
Total impairment on investment securities (4) (1,896)
(Decrease) increase in fair value recognized
in other comprehensive income (27) 1,196
----------- -----------
Net impairment loss recognized in earnings (31) (700)
Federal Home Loan Bank dividends 6 8
Other income 1,451 1,062
----------- -----------
Total non-interest income 4,940 3,375
----------- -----------
NON-INTEREST EXPENSES:
Salaries and employee benefits 12,134 11,544
Occupancy and equipment 2,848 2,890
Regulatory assessments 664 887
Data processing expense 857 878
Advertising 548 557
Audit and accounting fees 337 342
Legal fees 266 367
Other real estate owned 11 759
Amortization of core deposit intangibles 311 311
Loss on sale of assets - 10
Other expense 3,466 3,210
----------- -----------
Total non-interest expenses 21,442 21,755
----------- -----------
Income before provision for income taxes 6,089 2,809
PROVISION FOR INCOME TAXES 1,320 149
----------- -----------
Net income $ 4,769 $ 2,660
=========== ===========
Net income $ 4,769 $ 2,660
Preferred stock dividends and accretion 400 296
----------- -----------
Net income available to common shareholders $ 4,369 $ 2,364
=========== ===========
Net income per common share:
Basic earnings per common share $ 0.46 $ 0.26
=========== ===========
Weighted average common shares used in basic
computation 9,513,387 9,156,561
=========== ===========
Diluted earnings per common share $ 0.46 $ 0.26
=========== ===========
Weighted average common shares used in diluted
computation 9,534,426 9,244,289
=========== ===========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the three Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
months ended 2011 2011 2011 2010 2010
------------------- ---------- ---------- ---------- ---------- ----------
(In thousands,
except share and
per share amounts)
Net interest income $ 7,949 $ 7,794 $ 7,598 $ 7,641 $ 8,173
Provision for
credit losses 400 250 100 900 1,300
---------- ---------- ---------- ---------- ----------
Net interest
income after
provision for
credit losses 7,549 7,544 7,498 6,741 6,873
Total non-interest
income 1,595 1,597 1,748 347 1,293
Total non-interest
expense 7,222 7,067 7,153 6,986 7,409
Provision for
(benefit from)
income taxes 514 301 505 (517) (107)
---------- ---------- ---------- ---------- ----------
Net income $ 1,408 $ 1,773 $ 1,588 $ 619 $ 864
========== ========== ========== ========== ==========
Net income
available to
common
shareholders $ 1,206 $ 1,674 $ 1,489 $ 520 $ 766
========== ========== ========== ========== ==========
Basic earnings per
common share $ 0.13 $ 0.18 $ 0.16 $ 0.06 $ 0.08
========== ========== ========== ========== ==========
Weighted average
common shares
used in basic
computation 9,547,816 9,516,110 9,475,444 9,368,016 9,363,908
========== ========== ========== ========== ==========
Diluted earnings
per common share $ 0.13 $ 0.18 $ 0.16 $ 0.06 $ 0.08
========== ========== ========== ========== ==========
Weighted average
common shares
used in diluted
computation 9,557,609 9,540,615 9,503,313 9,429,226 9,432,301
========== ========== ========== ========== ==========
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
As of and for the three Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
months ended 2011 2011 2011 2010 2010
-------------------------- -------- -------- -------- -------- --------
(Dollars in thousands,
except per share amounts)
Allowance for credit
losses to total loans 2.59% 2.53% 2.61% 2.55% 2.42%
Nonperforming assets to
total assets 2.04% 1.89% 2.07% 2.57% 2.89%
Total nonperforming assets $ 17,064 $ 14,959 $ 15,846 $ 19,984 $ 22,119
Net loan charge offs $ 404 $ 235 $ 95 $ 992 $ 1,662
Net charge offs to average
loans (annualized) 0.37% 0.22% 0.09% 0.89% 1.43%
Book value per share $ 10.41 $ 10.15 $ 9.76 $ 9.66 $ 9.78
Tangible book value per
share $ 7.84 $ 7.58 $ 7.16 $ 7.02 $ 7.13
Tangible common equity $ 74,883 $ 72,389 $ 67,748 $ 65,753 $ 66,763
Interest and dividends on
investment securities
exempt from Federal
income taxes $ 892 $ 830 $ 800 $ 762 $ 761
Net interest margin
(calculated on a fully
tax equivalent basis) (1) 4.66% 4.71% 4.67% 4.67% 5.10%
Return on average assets
(2) 0.70% 0.91% 0.82% 0.32% 0.46%
Return on average equity
(2) 5.34% 6.92% 6.41% 2.53% 3.53%
Tier 1 leverage - Bancorp 10.19% 10.22% 9.87% 9.48% 10.07%
Tier 1 leverage - Bank 10.07% 10.04% 9.67% 9.32% 9.93%
Tier 1 risk-based capital
- Bancorp 15.95% 15.26% 14.81% 14.16% 13.75%
Tier 1 risk-based capital
- Bank 15.76% 14.99% 14.51% 13.92% 13.55%
Total risk-based capital -
Bancorp 17.25% 16.54% 16.08% 15.42% 15.03%
Total risk based capital -
Bank 17.05% 16.26% 15.78% 15.19% 14.82%
(1) Net Interest Margin is computed by dividing annualized quarterly net
interest income by quarterly average interest-bearing assets.
(2) Computed by annualizing quarterly net income.
CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
AVERAGE AMOUNTS -------------------- --------------------
(Dollars in thousands) 2011 2010 2011 2010
-------------------------------- --------- --------- --------- ---------
Federal funds sold $ 610 $ 357 $ 643 $ 715
Interest-earning deposits in
other banks 72,532 33,409 73,148 31,609
Investments 226,050 186,410 209,776 190,641
Loans (1) 420,392 449,191 415,983 441,614
Federal Home Loan Bank stock 2,907 3,050 2,981 3,095
--------- --------- --------- ---------
Earning assets 722,491 672,417 702,531 667,674
Allowance for credit losses (11,024) (11,180) (10,994) (10,796)
Non-accrual loans 14,593 15,919 15,523 16,747
Other real estate owned 128 3,643 266 3,089
Other non-earning assets 81,407 77,681 79,068 76,169
--------- --------- --------- ---------
Total assets $ 807,595 $ 758,480 $ 786,394 $ 752,883
--------- --------- --------- ---------
Interest bearing deposits $ 499,773 $ 483,459 $ 489,175 $ 482,580
Other borrowings 9,155 19,155 10,639 19,796
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Total interest-bearing
liabilities 508,928 502,614 499,814 502,376
Non-interest bearing demand
deposits 184,948 151,422 176,018 148,253
Non-interest bearing liabilities 8,234 6,551 8,241 6,675
--------- --------- --------- ---------
Total liabilities 702,110 660,587 684,073 657,304
--------- --------- --------- ---------
Total equity 105,485 97,893 102,321 95,579
--------- --------- --------- ---------
Total liabilities and equity $ 807,595 $ 758,480 $ 786,394 $ 752,883
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AVERAGE RATES
-------------------------------- --------- --------- --------- ---------
Federal funds sold 0.25% 0.25% 0.21% 0.19%
Interest-earning deposits in
other banks 0.25% 0.27% 0.26% 0.26%
Investments 4.30% 5.27% 4.53% 5.41%
Loans 6.27% 6.28% 6.32% 6.30%
Earning assets 5.05% 5.71% 5.11% 5.72%
Interest bearing deposits 0.51% 0.72% 0.57% 0.81%
Other borrowings 2.64% 3.13% 2.71% 2.95%
Total interest-bearing
liabilities 0.55% 0.81% 0.61% 0.89%
Net interest margin (calculated
on a fully tax equivalent
basis) 4.66% 5.10% 4.68% 5.05%
(1) Average loans do not include non-accrual loans.
Contact: Debbie Nalchajian-Cohen 559-222-1322