CVCY
$19.43
Central Vly Cmty Bcp
($.17)
(.87%)
Earnings Details
4th Quarter December 2019
Wednesday, January 22, 2020 4:00:00 PM
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Summary

Central Vly Cmty Bcp (CVCY) Recent Earnings

Central Vly Cmty Bcp (CVCY) reported 4th Quarter December 2019 earnings of $0.34 per share on revenue of $18.3 million. The consensus earnings estimate was $0.34 per share on revenue of $18.1 million. Revenue fell 2.3% compared to the same quarter a year ago.

Central Valley Community Bancorp is a bank holding company, which through its subsidiary provides financial services in its main market area in California. Its services include personal banking and business banking services.

Results
Reported Earnings
$0.34
Earnings Whisper
-
Consensus Estimate
$0.34
Reported Revenue
$18.3 Mil
Revenue Estimate
$18.1 Mil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Central Valley Community Bancorp Reports Earnings Results for the Year and Quarter Ended December 31, 2019, Quarterly Dividends, and a Share Repurchase Program

FRESNO, Calif.--(BUSINESS WIRE)--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 $21,443,000, and fully diluted earnings per common share of $1.59 for the year ended December 31, 2019, compared to $21,289,000 and $1.54 per fully diluted common share for the year ended December 31, 2018.

FOURTH QUARTER FINANCIAL HIGHLIGHTS

  • Net loans increased $24.7 million or 2.71%, and total assets increased $58.9 million or 3.83% at December 31, 2019 compared to December 31, 2018.
  • Total deposits increased 3.98% to $1.33 billion at December 31, 2019 compared to December 31, 2018.
  • Total cost of deposits remains at low levels at 0.15% and 0.10% for the quarter ended December 31, 2019 and 2018, respectively.
  • Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 44.20% and 43.06% for the quarters ended December 31, 2019 and 2018, respectively.
  • Capital positions remain strong at December 31, 2019 with a 11.38% Tier 1 Leverage Ratio; a 14.55% Common Equity Tier 1 Ratio; a 14.98% Tier 1 Risk-Based Capital Ratio; and a 15.79% Total Risk-Based Capital Ratio.
  • The Company declared a $0.11 per common share cash dividend, payable on February 21, 2020 to shareholders of record on February 7, 2020.
  • During the quarter ended December 31, 2019, the Company repurchased and retired a total of 259,771 shares of common stock at an average price paid per share of $20.83. During the year ended December 31, 2019, the Company has repurchased and retired a total of 768,754 shares at an average price paid per share of $20.29.
  • On January 15, 2020, the Company’s board of directors authorized a new one-year $10 million share repurchase program, as the previous repurchase program was fully executed.

“We are pleased with the positive results of our Company, the achievements of our team, and we are grateful for the 40 years of confidence that our loyal clients have placed in us,” stated James M. Ford, President & CEO of Central Valley Community Bank and Central Valley Community Bancorp. “Measured growth in loans and deposits, with a focus on shareholder return has led to the positive results for 2019. Regardless of the external interest rate environment, our historic brand of relationship banking will continue to be a contributor to the success of our clients and the communities we serve.”

Net income for the year ended December 31, 2019 increased 0.72%, primarily driven by an increase in net interest income, and an increase in net realized gains on sales and calls of investment securities, partially offset by an increase in non-interest expense, an increase in the provision for credit losses, and an increase in the provision for income taxes, compared to the year ended December 31, 2018. During the year ended December 31, 2019, the Company recorded a $1,025,000 provision for credit losses, compared to a $50,000 provision during the year ended December 31, 2018. Net interest income before the provision for credit losses for the year ended December 31, 2019 was $63,772,000, compared to $62,703,000 for the year ended December 31, 2018, an increase of $1,069,000 or 1.70%. The impact to interest income from the accretion of the loan marks on acquired loans was $989,000 and $1,158,000 for the year ended December 31, 2019 and 2018, respectively. In addition, net interest income before the provision for credit losses for the year ended December 31, 2019 was benefited by approximately $779,000 in nonrecurring income from prepayment penalties and payoff of loans previously on nonaccrual status, as compared to a $498,000 in nonrecurring income for the year ended December 31, 2018. Excluding these reversals and benefits, net interest income for the year ended December 31, 2019 increased by $788,000 compared to the year ended December 31, 2018.

During the year ended December 31, 2019, the Company’s shareholders’ equity increased $8,390,000, or 3.82%, compared to December 31, 2018. The increase in shareholders’ equity was driven by the retention of earnings, net of dividends paid, and an increase in net unrealized gains on available-for-sale (AFS) securities recorded, net of estimated taxes, in accumulated other comprehensive income (AOCI).

Return on average equity (ROE) for the year ended December 31, 2019 was 9.39%, compared to 10.07% for the year ended December 31, 2018. The decrease in ROE was primarily due to the increase in shareholders’ equity compared to the prior year period. The Company declared and paid $0.43 and $0.31 per share in cash dividends to holders of common stock during the year ended December 31, 2019 and 2018, respectively. Annualized return on average assets (ROA) was 1.36% for the year ended December 31, 2019 and 1.35% for the year ended December 31, 2018. During the year ended December 31, 2019, the Company’s total assets increased 3.83%, and total liabilities increased 3.83%, compared to December 31, 2018.

Non-performing assets decreased by $1,047,000, or 38.21%, to $1,693,000 at December 31, 2019, compared to $2,740,000 at December 31, 2018. During the year ended December 31, 2019, the Company recorded $999,000 in net loan charge-offs, compared to $276,000 in net recoveries for the year ended December 31, 2018. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.11% for the year ended December 31, 2019, compared to (0.03)% for the same period in 2018. Total non-performing assets were 0.11% and 0.18% of total assets as of December 31, 2019 and December 31, 2018, respectively.

At December 31, 2019, the allowance for credit losses was $9,130,000, compared to $9,104,000 at December 31, 2018, a net increase of $26,000 reflecting the net charge-offs and provision during the period. The allowance for credit losses as a percentage of total loans was 0.97% and 0.99% as of December 31, 2019 and December 31, 2018, respectively. Total loans includes loans acquired in the acquisitions of Folsom Lake Bank on October 1, 2017, Sierra Vista Bank on October 1, 2016 and Visalia Community Bank on July 1, 2013 that, at their respective acquisition dates, were recorded at fair value and did not have a related allowance for credit losses. The recorded value of acquired loans totaled $152,735,000 at December 31, 2019 and $189,719,000 at December 31, 2018. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 1.15% and 1.25% as of December 31, 2019 and December 31, 2018, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 1.16% and 1.25%, respectively. The Company believes the allowance for credit losses is adequate to provide for probable incurred credit losses within the loan portfolio at December 31, 2019.

The Company’s net interest margin (fully tax equivalent basis) was 4.51% for the year ended December 31, 2019, compared to 4.44% for the year ended December 31, 2018. The increase in net interest margin in the period-to-period comparison resulted from the increase in the effective yield on interest earning deposits in other banks and Federal Funds sold, the increase in the effective yield on average investment securities, and the increase in the yield on the Company’s loan portfolio.

For the year ended December 31, 2019, the effective yield on average total earning assets increased 15 basis points to 4.69% compared to 4.54% for the year ended December 31, 2018, while the cost of average total interest-bearing liabilities increased to 0.34% for the year ended December 31, 2019 as compared to 0.19% for the year ended December 31, 2018. Over the same periods, the cost of average total deposits increased to 0.15% for the year ended December 31, 2019 compared to 0.09% for the same period in 2018.

For the year ended December 31, 2019, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $494,455,000, a decrease of $32,151,000, or 6.11%, compared to the year ended December 31, 2018. The effective yield on average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased to 3.08% for the year ended December 31, 2019, compared to 2.88% for the year ended December 31, 2018.

Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased $18,755,000, from $912,128,000 for the year ended December 31, 2018 to $930,883,000 for the year ended December 31, 2019. The effective yield on average loans increased to 5.54% for the year ended December 31, 2019, compared to 5.50% for the year ended December 31, 2018.

Total average assets for the year ended December 31, 2019 was $1,574,089,000 compared to $1,577,410,000 for the year ended December 31, 2018, a decrease of $3,321,000 or 0.21%. During the year ended December 31, 2019 and 2018, the loan-to-deposit ratio was 70.76% and 71.64%, respectively. Total average deposits decreased $37,974,000 or 2.85% to $1,295,780,000 for the year ended December 31, 2019, compared to $1,333,754,000 for the year ended December 31, 2018. Average interest-bearing deposits decreased $42,017,000, or 5.38%, and average non-interest bearing demand deposits increased $4,043,000, or 0.73%, for the year ended December 31, 2019, compared to the year ended December 31, 2018. The Company’s ratio of average non-interest bearing deposits to total deposits was 43.01% for the year ended December 31, 2019, compared to 41.48% for the year ended December 31, 2018.

Non-interest income for the year ended December 31, 2019 increased by $2,981,000 to $13,305,000, compared to $10,324,000 for the year ended December 31, 2018, primarily driven by an increase of $3,885,000 in net realized gains on sales and calls of investment securities, and an increase in loan placement fees of $270,000, partially offset by decrease in gain on sale of credit card portfolio of $462,000, a decrease in service charge income of $230,000, and a decrease of $364,000 in other income.

Non-interest expense for the year ended December 31, 2019 increased $1,032,000, or 2.29%, to $46,100,000 compared to $45,068,000 for the year ended December 31, 2018. The net increase year over year resulted from increases in information technology of $1,498,000, salaries and employee benefits of $433,000, amortization of core deposit intangible of $240,000, directors’ expenses of $245,000, and telephone expenses of $125,000, offset by decreases in occupancy and equipment expenses of $533,000, regulatory assessments of $368,000, acquisition and integration expenses of $217,000, professional services of $170,000, and operating losses of $350,000 in 2019 compared to 2018. The increase in the information technology expenses was a result of the Company outsourcing its network maintenance and IT support during the fourth quarter of 2018. The increase in the salaries and employee benefits as well as the directors’ expenses was primarily related to the change in the interest and discount rate used to calculate the liability for salary continuation, deferred compensation and split dollar plans which amounted to $1,720,000. There was a decrease in salaries and benefits excluding the salary continuation interest of $1,044,000. The decrease in regulatory assessments was the result of the Company receiving a portion of its small-bank assessment credit. The FDIC automatically applies small-bank assessment credits to offset regular deposit insurance assessments for assessment periods where the Deposit Insurance Fund (DIF) reserve ratio is at or above 1.38 percent.

The Company recorded an income tax provision of $8,509,000 for the year ended December 31, 2019, compared to $6,620,000 for the year ended December 31, 2018. The effective tax rate for the year ended December 31, 2019 was 28.41% compared to 23.72% for the year ended December 31, 2018. The increase in the effective rate was a result of a decrease in tax-exempt interest.

Quarter Ended December 31, 2019

For the quarter ended December 31, 2019, the Company reported unaudited consolidated net income of $4,448,000 and earnings per diluted common share of $0.34, compared to consolidated net income of $5,281,000 and $0.38 per diluted share for the same period in 2018. The decrease in net income during the fourth quarter of 2019 compared to the same period in 2018 was primarily due to an increase in provision for credit losses of $500,000, a decrease in net interest income of $186,000, a decrease in non-interest income of $395,000, and an increase in the provision for income taxes of $32,000, partially offset by a decrease in total non-interest expenses of $280,000. The effective tax rate increased to 27.86% from 24.20% for the quarters ended December 31, 2019 and December 31, 2018, respectively. Net income for the immediately trailing quarter ended September 30, 2019 was $5,691,000, or $0.42 per diluted common share.

Annualized return on average equity (ROE) for the fourth quarter of 2019 was 7.71%, compared to 9.82% for the same period of 2018. The decrease in ROE reflects a decrease in net income, coupled with an increase in shareholders’ equity. Annualized return on average assets (ROA) was 1.12% for the fourth quarter of 2019 compared to 1.37% for the same period in 2018. This decrease is due to a decrease in net income and an increase in average assets.

In comparing the fourth quarter of 2019 to the fourth quarter of 2018, average total loans increased by $16,327,000, or 1.79%. During the fourth quarter of 2019, the Company recorded net loan charge-offs of $865,000 compared to $79,000 net loan recoveries for the same period in 2018. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.37% for the quarter ended December 31, 2019 compared to (0.03)% for the quarter ended December 31, 2018.

Average total deposits for the fourth quarter of 2019 increased $15,532,000 or 1.19% to $1,315,328,000 compared to $1,299,796,000 for the same period of 2018. In comparing the fourth quarter of 2019 to the fourth quarter of 2018, average borrowed funds decreased $697,000 or 11.28% to $5,482,000 compared to $6,179,000.

The Company’s net interest margin (fully tax equivalent basis) was 4.40% for the quarter ended December 31, 2019, compared to 4.55% for the quarter ended December 31, 2018. Net interest income, before provision for credit losses, decreased $186,000, or 1.16%, to $15,787,000 for the fourth quarter of 2019, compared to $15,973,000 for the same period in 2018. The accretion of the loan marks on acquired loans increased interest income by $239,000 and $252,000 during the quarters ended December 31, 2019 and 2018, respectively. Net interest income during the fourth quarters of 2019 and 2018 benefited by approximately $186,000 and $142,000, respectively, from prepayment penalties and payoff of loans previously on nonaccrual status. The net interest margin period-to-period comparisons were impacted by the increase in the yield on total interest-bearing liabilities, as well as the decrease in the yield on the average investment securities and decrease in the yield on the loan portfolio. Over the same periods, the cost of total deposits increased to 0.15% from 0.10%.

For the quarter ended December 31, 2019, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased by $5,340,000, or 1.08%, compared to the quarter ended December 31, 2018, and increased by $13,217,000, or 2.72%, compared to the quarter ended September 30, 2019.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.93% for the quarter ended December 31, 2019, compared to 3.07% for the quarter ended December 31, 2018 and 3.07% for the quarter ended September 30, 2019. Total average loans, which generally yield higher rates than investment securities, increased by $16,327,000 to $929,243,000 for the quarter ended December 31, 2019, from $912,916,000 for the quarter ended December 31, 2018 and decreased by $19,430,000 from $948,673,000 for the quarter ended September 30, 2019. The effective yield on average loans was 5.44% for the quarter ended December 31, 2019, compared to 5.54% and 5.55% for the quarters ended December 31, 2018 and September 30, 2019, respectively.

Total average assets for the quarter ended December 31, 2019 were $1,582,529,000 compared to $1,541,936,000 for the quarter ended December 31, 2018 and $1,588,367,000 for the quarter ended September 30, 2019, an increase of $40,593,000 or 2.63% and a decrease of $5,838,000 or 0.37%, respectively.

Total average deposits increased $15,532,000, or 1.19%, to $1,315,328,000 for the quarter ended December 31, 2019, compared to $1,299,796,000 for the quarter ended December 31, 2018. Total average deposits increased $12,065,000, or 0.93%, for the quarter ended December 31, 2019, compared to $1,303,263,000 for the quarter ended September 30, 2019. The Company’s ratio of average non-interest bearing deposits to total deposits was 44.20% for the quarter ended December 31, 2019, compared to 43.06% and 43.24% for the quarters ended December 31, 2018 and September 30, 2019, respectively.

Non-interest income decreased $395,000, or 16.43%, to $2,009,000 for the fourth quarter of 2019 compared to $2,404,000 for the same period in 2018. For the quarter ended December 31, 2019, non-interest income included $3,000 net realized gains on sales and calls of investment securities compared to net realized gains of $37,000 for the same period in 2018, a $34,000 decrease. During the fourth quarter of 2019 loan placement fees increased $169,000, offset by a decrease in other income of $319,000, and a decrease in service charge income of $85,000, compared to the same period in 2018. Non-interest income for the quarter ended December 31, 2019 decreased by $1,713,000 to $2,009,000, compared to $3,722,000 for the quarter ended September 30, 2019. The decrease compared to the trailing quarter was primarily a result of a $1,682,000 decrease in net realized gains on sales and calls of investment securities and a $51,000 decrease in other income, offset by a $9,000 increase in service charges.

Non-interest expense for the quarter ended December 31, 2019 decreased $280,000, or 2.45%, to $11,130,000 compared to $11,410,000 for the quarter ended December 31, 2018. The net decrease quarter over quarter was a result of a decrease in operating losses of $239,000, a decrease in occupancy and equipment expenses of $178,000, a decrease of $109,000 in regulatory assessments, a decrease in salaries and employee benefits of $64,000, a decrease in professional services of $37,000, partially offset by an increase of $123,000 in information technology expenses, an increase of $103,000 in ATM/debit card expenses, an increase of $74,000 in directors’ expenses, and an increase of $18,000 in Internet banking expenses. The net decrease in salaries and employee benefits was representative of a decrease in the amount of $502,000 in salaries and benefits offset by an increase of $438,000 in the interest on salary continuation plans.

Non-interest expense for the quarter ended December 31, 2019 decreased by $404,000 compared to $11,534,000 for the trailing quarter ended September 30, 2019. The decrease compared to the trailing quarter was primarily due to a decrease in salaries and employee benefits of $210,000, a decrease in occupancy and equipment expense of $126,000, and a non-recurring $121,000 decrease in telephone expenses, partially offset by an increase in regulatory assessments of $103,000, and a $11,000 increase in other non-interest expenses. The decrease in salaries and employee benefits of $210,000 was the result of decreased salaries, benefits, and interest on deferred compensation plans as a result of the change in the discount rate used to calculate the liability.

The Company recorded an income tax provision of $1,718,000 for the quarter ended December 31, 2019, compared to $1,686,000 for the quarter ended December 31, 2018, and $2,452,000 for the trailing quarter ended September 30, 2019. The effective tax rate for the quarter ended December 31, 2019 was 27.86% compared to 24.20% for the same period in 2018. The increase in the effective tax rate was the result of a decrease in tax exempt interest.

Quarterly Dividend Announcement

On January 22, 2020, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.11 per share on the Company’s common stock. The dividend is payable on February 21, 2020 to shareholders of record as of February 7, 2020.

Stock Repurchase Program

On January 15, 2020, the Board of Directors of the Company approved the adoption of a program to effect repurchases of the Company’s common stock. Under the program, the Company may repurchase up to $10 million of the Company’s outstanding shares of common stock, which represents approximately 4% of the Company’s outstanding shares of common stock, or approximately 487,805 shares based on the closing stock price of the Company’s common stock on January 15, 2020 of $20.50. The share repurchase program began on January 16, 2020 and will end on January 15, 2021. The shares will be repurchased in open market transactions through brokers, subject to availability.

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 operates 20 full-service offices throughout California’s San Joaquin Valley and Greater Sacramento Region. Additionally, the Bank maintains Commercial Real Estate, Agribusiness and SBA Lending Departments. Central Valley Investment Services are provided by Raymond James Financial, Inc.

Members of Central Valley Community Bancorp’s and the Bank’s Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), Edwin S. Darden, Jr., F. T. “Tommy” Elliott, IV, James M. Ford, Robert J. Flautt, Gary D. Gall, Steven D. McDonald, Louis C. McMurray, Karen Musson, Dorothea D. Silva, and William S. Smittcamp. Sidney B. Cox is Director Emeritus.

More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Also, visit Central Valley Community Bank on Twitter and Facebook.

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; (3) a decline in economic conditions at the international, national or local level on the Company’s results of operations; (4) the Company’s ability to continue its internal growth at historical rates; (5) the Company’s ability to maintain its net interest margin; (6) the quality of the Company’s earning assets; (7) changes in the regulatory environment; (8) fluctuations in the real estate market; (9) changes in business conditions and inflation; (10) changes in securities markets; and (11) the other risks set forth in the Company’s reports filed with the Securities and Exchange Commission (“SEC”), including its Annual Report on Form 10-K for the year ended December 31, 2018. 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
(Unaudited)

 

 

December 31,

 

September 30,

 

December 31,

(In thousands, except share amounts)

 

2019

 

2019

 

2018

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

24,195

 

 

$

38,344

 

 

$

24,954

 

Interest-earning deposits in other banks

 

28,379

 

 

4,693

 

 

6,773

 

Total cash and cash equivalents

 

52,574

 

 

43,037

 

 

31,727

 

Available-for-sale investment securities

 

470,746

 

 

469,927

 

 

463,905

 

Equity securities

 

7,472

 

 

7,507

 

 

7,254

 

Loans, less allowance for credit losses of $9,130, $9,495, and $9,104 at December 31, 2019, September 30, 2019, and December 31, 2018, respectively

 

934,250

 

 

933,008

 

 

909,591

 

Bank premises and equipment, net

 

7,618

 

 

7,804

 

 

8,484

 

Bank owned life insurance

 

30,230

 

 

30,047

 

 

28,502

 

Federal Home Loan Bank stock

 

6,062

 

 

6,062

 

 

6,843

 

Goodwill

 

53,777

 

 

53,777

 

 

53,777

 

Core deposit intangibles

 

1,878

 

 

2,051

 

 

2,572

 

Accrued interest receivable and other assets

 

32,148

 

 

30,907

 

 

25,181

 

Total assets

 

$

1,596,755

 

 

$

1,584,127

 

 

$

1,537,836

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

 

$

594,627

 

 

$

572,736

 

 

$

550,657

 

Interest bearing

 

738,658

 

 

737,010

 

 

731,641

 

Total deposits

 

1,333,285

 

 

1,309,746

 

 

1,282,298

 

Short-term borrowings

 

 

 

5,000

 

 

10,000

 

Junior subordinated deferrable interest debentures

 

5,155

 

 

5,155

 

 

5,155

 

Accrued interest payable and other liabilities

 

30,187

 

 

31,044

 

 

20,645

 

Total liabilities

 

1,368,627

 

 

1,350,945

 

 

1,318,098

 

Shareholders’ equity:

 

 

 

 

 

 

Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding

 

 

 

 

 

 

Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 13,052,407, 13,301,395, and 13,754,965, at December 31, 2019, September 30, 2019, and December 31, 2018, respectively

 

89,379

 

 

94,516

 

 

103,851

 

Retained earnings

 

135,932

 

 

132,935

 

 

120,294

 

Accumulated other comprehensive income (loss), net of tax

 

2,817

 

 

5,731

 

 

(4,407

)

Total shareholders’ equity

 

228,128

 

 

233,182

 

 

219,738

 

Total liabilities and shareholders’ equity

 

$

1,596,755

 

 

$

1,584,127

 

 

$

1,537,836

 

CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED INCOME STATEMENTS
(Unaudited)

 

 

For the Three Months Ended,

 

For the Years Ended

 

 

December 31,

 

September 30,

 

December 31,

 

December 31,

(In thousands, except share and per share amounts)

 

2019

 

2019

 

2018

 

2019

 

2018

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

12,717

 

 

$

13,238

 

 

$

12,720

 

 

$

51,464

 

 

$

49,936

 

Interest on deposits in other banks

 

90

 

 

74

 

 

147

 

 

375

 

 

459

 

Interest and dividends on investment securities:

 

 

 

 

 

 

 

 

 

 

Taxable

 

3,378

 

 

3,462

 

 

2,977

 

 

13,197

 

 

10,254

 

Exempt from Federal income taxes

 

151

 

 

153

 

 

530

 

 

1,295

 

 

3,538

 

Total interest income

 

16,336

 

 

16,927

 

 

16,374

 

 

66,331

 

 

64,187

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

500

 

 

566

 

 

343

 

 

1,928

 

 

1,153

 

Interest on junior subordinated deferrable interest debentures

 

47

 

 

51

 

 

52

 

 

210

 

 

199

 

Other

 

2

 

 

105

 

 

6

 

 

421

 

 

132

 

Total interest expense

 

549

 

 

722

 

 

401

 

 

2,559

 

 

1,484

 

Net interest income before provision for credit losses

 

15,787

 

 

16,205

 

 

15,973

 

 

63,772

 

 

62,703

 

PROVISION FOR CREDIT LOSSES

 

500

 

 

250

 

 

 

 

1,025

 

 

50

 

Net interest income after provision for credit losses

 

15,287

 

 

15,955

 

 

15,973

 

 

62,747

 

 

62,653

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

Service charges

 

681

 

 

672

 

 

766

 

 

2,756

 

 

2,986

 

Net realized gains on sale of credit card portfolio

 

 

 

 

 

 

 

 

 

462

 

Appreciation in cash surrender value of bank owned life insurance

 

183

 

 

184

 

 

173

 

 

728

 

 

695

 

Interchange fees

 

345

 

 

374

 

 

356

 

 

1,446

 

 

1,462

 

Loan placement fees

 

331

 

 

288

 

 

162

 

 

978

 

 

708

 

Net realized gains on sales and calls of investment securities

 

3

 

 

1,685

 

 

37

 

 

5,199

 

 

1,314

 

Federal Home Loan Bank dividends

 

107

 

 

109

 

 

232

 

 

455

 

 

590

 

Other income

 

359

 

 

410

 

 

678

 

 

1,743

 

 

2,107

 

Total non-interest income

 

2,009

 

 

3,722

 

 

2,404

 

 

13,305

 

 

10,324

 

NON-INTEREST EXPENSES:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

6,521

 

 

6,731

 

 

6,585

 

 

26,654

 

 

26,221

 

Occupancy and equipment

 

1,191

 

 

1,317

 

 

1,369

 

 

5,439

 

 

5,972

 

Acquisition and integration expenses

 

 

 

 

 

 

 

 

 

217

 

Professional services

 

294

 

 

404

 

 

331

 

 

1,305

 

 

1,475

 

Data processing expense

 

371

 

 

390

 

 

407

 

 

1,557

 

 

1,666

 

Directors’ expenses

 

158

 

 

184

 

 

84

 

 

710

 

 

465

 

ATM/Debit card expenses

 

273

 

 

270

 

 

170

 

 

920

 

 

739

 

Information technology

 

615

 

 

614

 

 

492

 

 

2,611

 

 

1,113

 

Regulatory assessments

 

34

 

 

(69

)

 

143

 

 

251

 

 

619

 

Advertising

 

166

 

 

190

 

 

189

 

 

756

 

 

758

 

Internet banking expenses

 

208

 

 

215

 

 

190

 

 

816

 

 

732

 

Amortization of core deposit intangibles

 

174

 

 

174

 

 

174

 

 

695

 

 

455

 

Other expense

 

1,125

 

 

1,114

 

 

1,276

 

 

4,386

 

 

4,636

 

Total non-interest expenses

 

11,130

 

 

11,534

 

 

11,410

 

 

46,100

 

 

45,068

 

Income before provision for income taxes

 

6,166

 

 

8,143

 

 

6,967

 

 

29,952

 

 

27,909

 

PROVISION FOR INCOME TAXES

 

1,718

 

 

2,452

 

 

1,686

 

 

8,509

 

 

6,620

 

Net income

 

$

4,448

 

 

$

5,691

 

 

$

5,281

 

 

$

21,443

 

 

$

21,289

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.34

 

 

$

0.43

 

 

$

0.38

 

 

$

1.60

 

 

$

1.55

 

Weighted average common shares used in basic computation

 

13,118,403

 

 

13,360,030

 

 

13,721,087

 

 

13,415,118

 

 

13,699,823

 

Diluted earnings per common share

 

$

0.34

 

 

$

0.42

 

 

$

0.38

 

 

$

1.59

 

 

$

1.54

 

Weighted average common shares used in diluted computation

 

13,210,558

 

 

13,450,187

 

 

13,834,662

 

 

13,513,607

 

 

13,825,008

 

Cash dividends per common share

 

$

0.11

 

 

$

0.11

 

 

$

0.09

 

 

$

0.43

 

 

$

0.31

 

CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)

 

 

Dec. 31

 

Sept. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31,

For the three months ended

 

2019

 

2019

 

2019

 

2019

 

2018

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

15,787

 

 

$

16,205

 

 

$

15,946

 

 

$

15,835

 

 

$

15,973

 

Provision for (reversal of) credit losses

 

500

 

 

250

 

 

300

 

 

(25

)

 

 

Net interest income after provision for credit losses

 

15,287

 

 

15,955

 

 

15,646

 

 

15,860

 

 

15,973

 

Total non-interest income

 

2,009

 

 

3,722

 

 

4,598

 

 

2,976

 

 

2,404

 

Total non-interest expense

 

11,130

 

 

11,534

 

 

11,772

 

 

11,667

 

 

11,410

 

Provision for income taxes

 

1,718

 

 

2,452

 

 

2,385

 

 

1,953

 

 

1,686

 

Net income

 

$

4,448

 

 

$

5,691

 

 

$

6,087

 

 

$

5,216

 

 

$

5,281

 

Basic earnings per common share

 

$

0.34

 

 

$

0.43

 

 

$

0.45

 

 

$

0.38

 

 

$

0.38

 

Weighted average common shares used in basic computation

 

13,118,403

 

 

13,360,030

 

 

13,533,724

 

 

13,646,489

 

 

13,721,087

 

Diluted earnings per common share

 

$

0.34

 

 

$

0.42

 

 

$

0.45

 

 

$

0.38

 

 

$

0.38

 

Weighted average common shares used in diluted computation

 

13,210,558

 

 

13,450,187

 

 

13,635,834

 

 

13,755,615

 

 

13,834,662

 

CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)

 

 

Dec. 31,

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

As of and for the three months ended

 

2019

 

2019

 

2019

 

2019

 

2018

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

0.97

%

 

1.01

%

 

0.98

%

 

0.99

%

 

0.99

%

Non-performing assets to total assets

 

0.11

%

 

0.14

%

 

0.15

%

 

0.10

%

 

0.18

%

Total non-performing assets

 

$

1,693

 

 

$

2,157

 

 

$

2,442

 

 

$

1,548

 

 

$

2,740

 

Total nonaccrual loans

 

$

1,693

 

 

$

2,157

 

 

$

2,442

 

 

$

1,548

 

 

$

2,740

 

Net loan charge-offs (recoveries)

 

$

865

 

 

$

160

 

 

$

13

 

 

$

(39

)

 

$

(79

)

Net charge-offs (recoveries) to average loans (annualized)

 

0.37

%

 

0.07

%

 

0.01

%

 

(0.02

)%

 

(0.03

)%

Book value per share

 

$

17.48

 

 

$

17.53

 

 

$

17.18

 

 

$

16.63

 

 

$

15.98

 

Tangible book value per share

 

$

13.21

 

 

$

13.33

 

 

$

13.02

 

 

$

12.52

 

 

$

11.87

 

Tangible common equity

 

$

172,473

 

 

$

177,354

 

 

$

175,678

 

 

$

171,279

 

 

$

163,389

 

Cost of total deposits

 

0.15

%

 

0.17

%

 

0.15

%

 

0.12

%

 

0.10

%

Interest and dividends on investment securities exempt from Federal income taxes

 

$

151

 

 

$

153

 

 

$

429

 

 

$

562

 

 

$

530

 

Net interest margin (calculated on a fully tax equivalent basis) (1)

 

4.40

%

 

4.50

%

 

4.50

%

 

4.63

%

 

4.55

%

Return on average assets (2)

 

1.12

%

 

1.43

%

 

1.54

%

 

1.35

%

 

1.37

%

Return on average equity (2)

 

7.71

%

 

9.77

%

 

10.68

%

 

9.42

%

 

9.82

%

Loan to deposit ratio

 

70.76

%

 

71.96

%

 

74.20

%

 

71.32

%

 

71.64

%

Efficiency ratio

 

61.42

%

 

62.07

%

 

63.64

%

 

63.92

%

 

60.80

%

Tier 1 leverage - Bancorp

 

11.38

%

 

11.47

%

 

11.43

%

 

11.69

%

 

11.48

%

Tier 1 leverage - Bank

 

11.27

%

 

11.36

%

 

11.36

%

 

11.64

%

 

11.32

%

Common equity tier 1 - Bancorp

 

14.55

%

 

14.84

%

 

14.72

%

 

15.13

%

 

15.13

%

Common equity tier 1 - Bank

 

14.85

%

 

15.13

%

 

15.08

%

 

15.50

%

 

15.38

%

Tier 1 risk-based capital - Bancorp

 

14.98

%

 

15.28

%

 

15.16

%

 

15.58

%

 

15.59

%

Tier 1 risk-based capital - Bank

 

14.85

%

 

15.13

%

 

15.08

%

 

15.50

%

 

15.38

%

Total risk-based capital - Bancorp

 

15.79

%

 

16.13

%

 

16.00

%

 

16.41

%

 

16.44

%

Total risk based capital - Bank

 

15.66

%

 

15.98

%

 

15.91

%

 

16.34

%

 

16.23

%

(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 Ended

 

For the Years Ended

AVERAGE AMOUNTS

 

December 31,

 

September 30,

 

December 31,

 

December 31,

 

December 31,

(Dollars in thousands)

 

2019

 

2019

 

2018

 

2019

 

2018

Interest-bearing deposits in other banks

 

21,636

 

 

14,025

 

 

25,719

 

 

17,893

 

 

24,095

 

Investments

 

477,833

 

 

472,227

 

 

468,410

 

 

476,562

 

 

502,511

 

Loans (1)

 

927,636

 

 

946,136

 

 

910,330

 

 

928,560

 

 

908,419

 

Earning assets

 

1,427,105

 

 

1,432,388

 

 

1,404,459

 

 

1,423,015

 

 

1,435,025

 

Allowance for credit losses

 

(9,563

)

 

(9,423

)

 

(9,074

)

 

(9,337

)

 

(8,924

)

Nonaccrual loans

 

1,607

 

 

2,537

 

 

2,586

 

 

2,323

 

 

3,709

 

Other non-earning assets

 

163,380

 

 

162,865

 

 

143,965

 

 

158,088

 

 

147,600

 

Total assets

 

$

1,582,529

 

 

$

1,588,367

 

 

$

1,541,936

 

 

$

1,574,089

 

 

$

1,577,410

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

733,926

 

 

$

739,765

 

 

$

740,143

 

 

$

738,432

 

 

$

780,449

 

Other borrowings

 

5,482

 

 

22,568

 

 

6,179

 

 

21,943

 

 

12,180

 

Total interest-bearing liabilities

 

739,408

 

 

762,333

 

 

746,322

 

 

760,375

 

 

792,629

 

Non-interest bearing demand deposits

 

581,402

 

 

563,498

 

 

559,653

 

 

557,348

 

 

553,305

 

Non-interest bearing liabilities

 

30,990

 

 

29,459

 

 

20,859

 

 

28,014

 

 

20,152

 

Total liabilities

 

1,351,800

 

 

1,355,290

 

 

1,326,834

 

 

1,345,737

 

 

1,366,086

 

Total equity

 

230,729

 

 

233,077

 

 

215,102

 

 

228,352

 

 

211,324

 

Total liabilities and equity

 

$

1,582,529

 

 

$

1,588,367

 

 

$

1,541,936

 

 

$

1,574,089

 

 

$

1,577,410

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE RATES

 

 

 

 

 

 

 

 

 

 

Interest-earning deposits in other banks

 

1.66

%

 

2.11

%

 

2.29

%

 

2.10

%

 

1.91

%

Investments

 

2.99

%

 

3.10

%

 

3.12

%

 

3.11

%

 

2.93

%

Loans (3)

 

5.44

%

 

5.55

%

 

5.54

%

 

5.54

%

 

5.50

%

Earning assets

 

4.55

%

 

4.70

%

 

4.67

%

 

4.69

%

 

4.54

%

Interest-bearing deposits

 

0.27

%

 

0.30

%

 

0.18

%

 

0.26

%

 

0.15

%

Other borrowings

 

3.58

%

 

2.76

%

 

3.82

%

 

2.88

%

 

2.72

%

Total interest-bearing liabilities

 

0.29

%

 

0.38

%

 

0.21

%

 

0.34

%

 

0.19

%

Net interest margin (calculated on a fully tax equivalent basis) (2)

 

4.40

%

 

4.50

%

 

4.55

%

 

4.51

%

 

4.44

%

(1)

Average loans do not include nonaccrual loans.

(2)

Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds of $40, $41, and $141, for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018, respectively. The Federal tax benefits relating to income earned on municipal bonds totaled $344 and $940 for the year ended December 31, 2019 and 2018, respectively.

(3)

Loan yield includes loan fees (costs) for the three months ended December 31, 2019, September 30, 2019, and December 31, 2018 of $108, $72, and $(8), respectively. Loan yield includes loan fees (costs) for the year ended December 31, 2019 and 2018 of $164 and $397, respectively.

 

Investor Contact:
Dave Kinross
Executive Vice President and Chief Financial Officer
Central Valley Community Bancorp
559-323-3420

Media Contact:
Debbie Nalchajian-Cohen
Marketing Director
Central Valley Community Bancorp
559-222-1322

Source: Central Valley Community Bancorp