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Section 1: 8-K (8-K)

Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report: April 17, 2019
(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, Fresno, CA
(Address of principal executive offices)
 
93720
(Zip Code)
559-298-1775
(Registrant’s telephone number, including area code)
 
Not Applicable
(Former Name or Former Address, if changed since last report)


Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  o





Item 2.02. Results of Operations and Financial Condition

On April 17, 2019, Central Valley Community Bancorp issued a press release containing unaudited financial information and accompanying discussion for the quarter and year ended March 31, 2019. The press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.

Item 8.01             Other Events
 
On April 17, 2019, the Board of Directors of Central Valley Community Bancorp declared a $0.11 per share cash dividend payable on May 17, 2019 to shareholders of record as of May 3, 2019.

The information in this Form 8-K filed on April 17, 2019 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:
            None
(b) Pro forma financial information:
            None
(c) Shell company transactions:
            None
(d) Exhibits
            99.1       Press Release of Central Valley Community Bancorp dated April 17, 2019




SIGNATURE

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.
Dated:
April 17, 2019
CENTRAL VALLEY COMMUNITY BANCORP

By:  /s/ David A. Kinross                   
      David A. Kinross
      Executive Vice President and Chief Financial Officer (Principal
      Accounting Officer)

Exhibit Index
Exhibit No.
Description
99.1
Press Release of Central Valley Community Bancorp dated
 
April 17, 2019




(Back To Top)

Section 2: EX-99.1 (EXHIBIT 99.1)

Exhibit

Central Valley Community Bancorp -- page 1


397561333_cvcbankcorplogoclra01a01a34.jpg
FOR IMMEDIATE RELEASE

CENTRAL VALLEY COMMUNITY BANCORP REPORTS EARNINGS RESULTS FOR THE QUARTER ENDED MARCH 31, 2019, AND QUARTERLY DIVIDEND

FRESNO, CALIFORNIA…April 17, 2019… 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 $5,216,000, and fully diluted earnings per common share of $0.38 for the three months ended March 31, 2019, compared to $5,291,000 and $0.38 per fully diluted common share for the three months ended March 31, 2018.
FIRST QUARTER FINANCIAL HIGHLIGHTS
Net loans increased $3.1 million or 0.34%, and total assets increased $26.4 million or 1.72% at March 31, 2019 compared to December 31, 2018.
Total deposits increased 0.80% to $1.29 billion at March 31, 2019 compared to December 31, 2018.
Total cost of deposits remain at low levels at 0.12% and 0.07% for the quarter ended March 31, 2019 and 2018, respectively.
Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 42.10% and 40.01% for the quarters ended March 31, 2019 and 2018, respectively.
Capital positions remain strong at March 31, 2019 with a 11.69% Tier 1 Leverage Ratio; a 15.13% Common Equity Tier 1 Ratio; a 15.58% Tier 1 Risk-Based Capital Ratio; and a 16.41% Total Risk-Based Capital Ratio.
The Company declared a $0.11 per common share cash dividend, payable on May 17, 2019 to shareholders of record on May 3, 2019.
During the quarter ended March 31, 2019, the Company repurchased and retired a total of 97,479 shares at an average price paid per share of $19.20. Since the Company approved the stock repurchased program on July 18, 2018, the Company has repurchased and retired a total of 145,341 shares at an average price paid per share of $19.03.

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Central Valley Community Bancorp -- page 2


After extensive evaluation, the Company will consolidate the Rancho Cordova and Fair Oaks offices and open a new full-service branch in Gold River during the second quarter of 2019.
“While we experienced modest loan and deposit growth in the first quarter, we have maintained our strong core deposit mix which allows us to continue to deliver our relationship approach to community banking,” stated James M. Ford, President & CEO of Central Valley Community Bank and Central Valley Community Bancorp. “With very low levels of nonperforming assets and strong capital levels, we stand ready to meet the needs of our communities.” Ford went on to state, “Our plans to further reduce overhead expenses are taking hold and with the consolidation of two branches in the second quarter, we are positioned to further improve delivery and efficiency.”
Net income for the three months ended March 31, 2019 decreased 1.42%, primarily driven by an increase in non-interest expense and an increase in the provision for income taxes, partially offset by an increase in net interest income and an increase in net realized gains on sales and calls of investment securities compared to the three months ended March 31, 2018. During the three months ended March 31, 2019, the Company recorded a $25,000 reverse provision for credit losses, compared to no provision during the three months ended March 31, 2018. Net interest income before the provision for credit losses for the three months ended March 31, 2019 was $15,835,000, compared to $15,426,000 for the three months ended March 31, 2018, an increase of $409,000 or 2.65%. The impact to interest income from the accretion of the loan marks on acquired loans was $259,000 and $258,000 for the three months ended March 31, 2019 and 2018, respectively. In addition, net interest income before the provision for credit losses for the three months ended March 31, 2019 was benefited by approximately $127,000 in nonrecurring income from prepayment penalties and payoff of loans previously on nonaccrual status, as compared to a $21,000 in income reversals for the three months ended March 31, 2018. Excluding these reversals and benefits, net interest income for the three months ended March 31, 2019 increased by $261,000 compared to the three months ended March 31, 2018.
During the three months ended March 31, 2019, the Company’s shareholders’ equity increased $7,717,000, or 3.51%, 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).

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Central Valley Community Bancorp -- page 3


Return on average equity (ROE) for the three months ended March 31, 2019 was 9.42%, compared to 10.15% for the three months ended March 31, 2018. The decrease in ROE was primarily due to the increase in shareholders’ equity compared to last year. The Company declared and paid $0.10 and $0.07 per share in cash dividends to holders of common stock during the three months ended March 31, 2019 and 2018, respectively. Annualized return on average assets (ROA) was 1.35% for the three months ended March 31, 2019 and 1.30% for the three months ended March 31, 2018. During the three months ended March 31, 2019, the Company’s total assets increased 1.72%, and total liabilities increased 1.42%, compared to December 31, 2018.
Non-performing assets decreased by $1,192,000, or 43.50%, to $1,548,000 at March 31, 2019, compared to $2,740,000 at December 31, 2018. During the three months ended March 31, 2019, the Company recorded $39,000 in net loan recoveries, compared to $10,000 in net recoveries for the three months ended March 31, 2018. The net charge-off (recovery) ratio, which reflects annualized net recoveries to average loans, was (0.02)% for the three months ended March 31, 2019, compared to 0.00% for the same period in 2018. Total non-performing assets were 0.10% and 0.18% of total assets as of March 31, 2019 and December 31, 2018, respectively.
At March 31, 2019, the allowance for credit losses was $9,118,000, compared to $9,104,000 at December 31, 2018, a net increase of $14,000 reflecting the net recoveries and reverse provision during the period. The allowance for credit losses as a percentage of total loans was 0.99% at both March 31, 2019 and December 31, 2018. 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 $175,177,000 at March 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 1.22% and 1.25% as of March 31, 2019 and December 31, 2018, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 1.22% 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 March 31, 2019.
The Company’s net interest margin (fully tax equivalent basis) was 4.63% for the three months ended March 31, 2019, compared to 4.31% for the three months ended March 31, 2018. The increase in net interest

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Central Valley Community Bancorp -- page 4


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 three months ended March 31, 2019, the effective yield on average total earning assets increased 36 basis points to 4.76% compared to 4.40% for the three months ended March 31, 2018, while the cost of average total interest-bearing liabilities increased to 0.24% for the three months ended March 31, 2019 as compared to 0.15% for the three months ended March 31, 2018. Over the same periods, the cost of average total deposits increased to 0.12% for the three months ended March 31, 2019 compared to 0.07% for the same period in 2018.
For the three months ended March 31, 2019, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $495,805,000, a decrease of $81,956,000, or 14.19%, compared to the three months March 31, 2018. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, increased to 3.13% for the three months ended March 31, 2019, compared to 2.77% for the three months ended March 31, 2018.
Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased $3,207,000, from $902,904,000 for the three months ended March 31, 2018 to $906,111,000 for the three months ended March 31, 2019. The increase in loans was partially offset by the sale of the Company’s credit card portfolio of approximately $2,504,000 during the second quarter of 2018. The effective yield on average loans increased to 5.64% for the three months ended March 31, 2019, compared to 5.42% for the three months ended March 31, 2018.
Total average assets for the three months ended March 31, 2019 was $1,540,721,000 compared to $1,624,504,000 for the three months ended March 31, 2018, a decrease of $83,783,000 or 5.16%. During the three months ended March 31, 2019 and 2018, the loan-to-deposit ratio was 71.32% and 65.96%, respectively. Total average deposits decreased $94,641,000 or 6.83% to $1,290,012,000 for the three months ended March 31, 2019, compared to $1,384,653,000 for the three months ended March 31, 2018. Average interest-bearing deposits decreased $83,847,000, or 10.09%, and average non-interest bearing demand deposits decreased $10,794,000, or 1.95%, for the three months ended March 31, 2019, compared to the three months ended March 31, 2018. The

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Central Valley Community Bancorp -- page 5


Company’s ratio of average non-interest bearing deposits to total deposits was 42.10% for the three months ended March 31, 2019, compared to 40.01% for the three months ended March 31, 2018.
Non-interest income for the three months ended March 31, 2019 increased by $205,000 to $2,976,000, compared to $2,771,000 for the three months ended March 31, 2018, primarily driven by an increase of $237,000 in net realized gains on sales and calls of investment securities and an increase of $62,000 in other income, offset by a decrease in loan placement fees of $27,000 and a decrease in service charge income of $65,000.
Non-interest expense for the three months ended March 31, 2019 increased $299,000, or 2.63%, to $11,667,000 compared to $11,368,000 for the three months ended March 31, 2018. The net increase year over year resulted from increases in information technology of $565,000, salaries and employee benefits of $74,000, directors’ expenses of $86,000, and credit card expenses of $53,000, offset by decreases in acquisition and integration expenses of $217,000, professional services of $111,000, data processing expenses of $85,000, and occupancy and equipment expenses of $58,000 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 directors’ expenses was related to the change in the discount rate used to calculate the liability for deferred compensation and split dollar plans.
The Company recorded an income tax provision of $1,953,000 for the three months ended March 31, 2019, compared to $1,538,000 for the three months ended March 31, 2018. The effective tax rate for the three months March 31, 2019 was 27.24% compared to 22.52% for the three months March 31, 2018. The increase in the effective rate was a result of a decrease in tax-exempt interest.
Quarterly Dividend Announcement
On April 17, 2019, the Board of Directors of the Company declared an increase in the regular quarterly cash dividend to $0.11 per share on the Company’s common stock. The dividend is payable on May 17, 2019 to shareholders of record as of May 3, 2019.
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 21 full-service offices throughout California’s San Joaquin Valley and Greater Sacramento Region.  Additionally, the Bank

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Central Valley Community Bancorp -- page 6


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 (Lead Independent Director), 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, 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.

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Central Valley Community Bancorp -- page 7


CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
March 31,
 
December 31,
 
March 31,
(In thousands, except share amounts)
 
2019
 
2018
 
2018
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
Cash and due from banks
 
$
29,762

 
$
24,954

 
$
26,092

Interest-earning deposits in other banks
 
2,404

 
6,725

 
16,016

Federal funds sold
 
69

 
48

 
115

Total cash and cash equivalents
 
32,235

 
31,727

 
42,223

Available-for-sale investment securities
 
479,622

 
463,905

 
537,389

Equity securities
 
7,346

 
7,254

 
7,296

Loans, less allowance for credit losses of $9,118, $9,104 and $8,788 at March 31, 2019, December 31, 2018, and March 31, 2018, respectively
 
912,692

 
909,591

 
908,701

Bank premises and equipment, net
 
8,096

 
8,484

 
9,429

Bank owned life insurance
 
29,673

 
28,502

 
27,978

Federal Home Loan Bank stock
 
6,843

 
6,843

 
6,843

Goodwill
 
53,777

 
53,777

 
53,777

Core deposit intangibles
 
2,399

 
2,572

 
2,934

Accrued interest receivable and other assets
 
31,554

 
25,181

 
26,427

Total assets
 
$
1,564,237

 
$
1,537,836

 
$
1,622,997

 
 
 
 
 
 
 
LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
Non-interest bearing
 
$
550,410

 
$
550,657

 
$
561,490

Interest bearing
 
742,154

 
731,641

 
829,420

Total deposits
 
1,292,564

 
1,282,298

 
1,390,910

Short-term borrowings
 
7,000

 
10,000

 

Junior subordinated deferrable interest debentures
 
5,155

 
5,155

 
5,155

Accrued interest payable and other liabilities
 
32,063

 
20,645

 
18,989

Total liabilities
 
1,336,782

 
1,318,098

 
1,415,054

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: 13,680,930, 13,754,965, and 13,752,037, at March 31, 2019, December 31, 2018, and March 31, 2018, respectively
 
102,395

 
103,851

 
103,980

Retained earnings
 
124,138

 
120,294

 
107,544

Accumulated other comprehensive income (loss), net of tax
 
922

 
(4,407
)
 
(3,581
)
Total shareholders’ equity
 
227,455

 
219,738

 
207,943

Total liabilities and shareholders’ equity
 
$
1,564,237

 
$
1,537,836

 
$
1,622,997


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Central Valley Community Bancorp -- page 8


CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
 
 
For the Three Months Ended,
 
 
March 31,
 
December 31,
 
March 31,
(In thousands, except share and per share amounts)
 
2019
 
2018
 
2018
INTEREST INCOME:
 
 
 
 
 
 
Interest and fees on loans
 
$
12,554

 
$
12,720

 
$
12,006

Interest on deposits in other banks
 
150

 
147

 
98

Interest and dividends on investment securities:
 
 
 
 
 
 
Taxable
 
3,023

 
2,977

 
2,559

Exempt from Federal income taxes
 
562

 
530

 
1,067

Total interest income
 
16,289

 
16,374

 
15,730

INTEREST EXPENSE:
 
 
 
 
 
 
Interest on deposits
 
393

 
343

 
238

Interest on junior subordinated deferrable interest debentures
 
57

 
52

 
43

Other
 
4

 
6

 
23

Total interest expense
 
454

 
401

 
304

Net interest income before provision for credit losses
 
15,835

 
15,973

 
15,426

PROVISION FOR (REVERSAL OF) CREDIT LOSSES
 
(25
)
 

 

Net interest income after provision for credit losses
 
15,860

 
15,973

 
15,426

NON-INTEREST INCOME:
 
 
 
 
 
 
Service charges
 
690

 
766

 
755

Appreciation in cash surrender value of bank owned life insurance
 
171

 
173

 
171

Interchange fees
 
343

 
356

 
345

Loan placement fees
 
139

 
162

 
166

Net realized gains on sales and calls of investment securities
 
1,052

 
37

 
815

Federal Home Loan Bank dividends
 
121

 
232

 
121

Other income
 
460

 
678

 
398

Total non-interest income
 
2,976

 
2,404

 
2,771

NON-INTEREST EXPENSES:
 
 
 
 
 
 
Salaries and employee benefits
 
6,490

 
6,585

 
6,416

Occupancy and equipment
 
1,479

 
1,369

 
1,537

Acquisition and integration expenses
 

 

 
217

Professional services

327


331

 
438

Data processing expense
 
395

 
407

 
480

Directors’ expenses
 
176

 
84

 
90

ATM/Debit card expenses
 
191

 
170

 
201

Information technology
 
777

 
492

 
212

Regulatory assessments
 
152

 
143

 
162

Advertising
 
202

 
189

 
189

Internet banking expenses
 
194

 
190

 
195

Amortization of core deposit intangibles
 
174

 
174

 
94

Other expense
 
1,110

 
1,276

 
1,137

Total non-interest expenses
 
11,667

 
11,410

 
11,368

Income before provision for income taxes
 
7,169

 
6,967

 
6,829

PROVISION FOR INCOME TAXES
 
1,953

 
1,686

 
1,538

Net income
 
$
5,216

 
$
5,281

 
$
5,291

 
 
 
 
 
 
 
Net income per common share:
 
 
 
 
 
 
Basic earnings per common share
 
$
0.38

 
$
0.38

 
$
0.39

Weighted average common shares used in basic computation
 
13,646,489

 
13,721,087

 
13,669,976

Diluted earnings per common share
 
$
0.38

 
$
0.38

 
$
0.38

Weighted average common shares used in diluted computation
 
13,755,615

 
13,834,662

 
13,804,480

Cash dividends per common share
 
$
0.10

 
$
0.09

 
$
0.07


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Central Valley Community Bancorp -- page 9


CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
 
 
Mar, 31
 
Dec. 31,
 
Sep. 30
 
Jun. 30,
 
Mar. 31
For the three months ended
 
2019
 
2018
 
2018
 
2018
 
2018
(In thousands, except share and per share amounts)
 
 
 
 
 
 
 
 
 
 
Net interest income
 
$
15,835

 
$
15,973

 
$
15,907

 
$
15,397

 
$
15,426

Provision for (reversal of) credit losses
 
(25
)
 

 

 
50

 

Net interest income after provision for credit losses
 
15,860

 
15,973

 
15,907

 
15,347

 
15,426

Total non-interest income
 
2,976

 
2,404

 
2,463

 
2,686

 
2,771

Total non-interest expense
 
11,667

 
11,410

 
10,791

 
11,499

 
11,368

Provision for income taxes
 
1,953

 
1,686

 
1,827

 
1,569

 
1,538

Net income
 
$
5,216

 
$
5,281

 
$
5,752

 
$
4,965

 
$
5,291

Basic earnings per common share
 
$
0.38

 
$
0.38

 
$
0.42

 
$
0.36

 
$
0.39

Weighted average common shares used in basic computation
 
13,646,489

 
13,721,087

 
13,715,141

 
13,692,358

 
13,669,976

Diluted earnings per common share
 
$
0.38

 
$
0.38

 
$
0.42

 
$
0.36

 
$
0.38

Weighted average common shares used in diluted computation
 
13,755,615

 
13,834,662

 
13,836,828

 
13,823,278

 
13,804,480


CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
 
 
Mar. 31,
 
Dec. 31,
 
Sept. 30,
 
Jun. 30,
 
Mar. 31,
As of and for the three months ended
 
2019
 
2018
 
2018
 
2018
 
2018
(Dollars in thousands, except per share amounts)
 
 
 
 
 

 
 
 
 
Allowance for credit losses to total loans
 
0.99
 %
 
0.99
 %
 
0.99
 %
 
0.95
 %
 
0.96
 %
Non-performing assets to total assets
 
0.10
 %
 
0.18
 %
 
0.27
 %
 
0.26
 %
 
0.25
 %
Total non-performing assets
 
$
1,548

 
$
2,740

 
$
4,133

 
$
4,092

 
$
4,058

Total nonaccrual loans
 
$
1,548

 
$
2,740

 
$
4,133

 
$
4,092

 
$
4,058

Net loan charge-offs (recoveries)
 
$
(39
)
 
$
(79
)
 
$
(105
)
 
$
(82
)
 
$
(10
)
Net charge-offs (recoveries) to average loans (annualized)
 
(0.02
)%
 
(0.03
)%
 
(0.05
)%
 
(0.04
)%
 
 %
Book value per share
 
$
16.63

 
$
15.98

 
$
15.47

 
$
15.32

 
$
15.12

Tangible book value per share
 
$
12.52

 
$
11.87

 
$
11.37

 
$
11.21

 
$
11.00

Tangible common equity
 
$
171,279

 
$
163,389

 
$
156,911

 
$
154,567

 
$
151,232

Cost of total deposits
 
0.12
 %
 
0.10
 %
 
0.10
 %
 
0.08
 %
 
0.07
 %
Interest and dividends on investment securities exempt from Federal income taxes
 
$
562

 
$
530

 
$
896

 
$
1,045

 
$
1,067

Net interest margin (calculated on a fully tax equivalent basis) (1)
 
4.63
 %
 
4.55
 %
 
4.53
 %
 
4.33
 %
 
4.31
 %
Return on average assets (2)
 
1.35
 %
 
1.37
 %
 
1.48
 %
 
1.25
 %
 
1.30
 %
Return on average equity (2)
 
9.42
 %
 
9.82
 %
 
10.80
 %
 
9.53
 %
 
10.15
 %
Loan to deposit ratio
 
71.32
 %
 
71.64
 %
 
71.49
 %
 
70.60
 %
 
65.96
 %
Efficiency ratio
 
63.92
 %
 
60.80
 %
 
58.65
 %
 
62.99
 %
 
62.59
 %
Tier 1 leverage - Bancorp
 
11.69
 %
 
11.48
 %
 
11.16
 %
 
10.59
 %
 
10.10
 %
Tier 1 leverage - Bank
 
11.64
 %
 
11.32
 %
 
11.06
 %
 
10.44
 %
 
9.89
 %
Common equity tier 1 - Bancorp
 
15.13
 %
 
15.13
 %
 
15.17
 %
 
14.35
 %
 
14.01
 %
Common equity tier 1 - Bank
 
15.50
 %
 
15.38
 %
 
15.51
 %
 
14.59
 %
 
14.17
 %
Tier 1 risk-based capital - Bancorp
 
15.58
 %
 
15.59
 %
 
15.64
 %
 
14.80
 %
 
14.47
 %
Tier 1 risk-based capital - Bank
 
15.50
 %
 
15.38
 %
 
15.51
 %
 
14.59
 %
 
14.17
 %
Total risk-based capital - Bancorp
 
16.41
 %
 
16.44
 %
 
16.51
 %
 
15.64
 %
 
15.30
 %
Total risk based capital - Bank
 
16.34
 %
 
16.23
 %
 
16.37
 %
 
15.43
 %
 
15.01
 %
(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.


- more -


Central Valley Community Bancorp -- page 10


CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
 
 
For the Three Months Ended
AVERAGE AMOUNTS
 
March 31,
 
December 31,
 
March 31,
(Dollars in thousands)
 
2019
 
2018
 
2018
Federal funds sold
 
$
105

 
$
42

 
$
61

Interest-bearing deposits in other banks
 
24,571

 
25,677

 
25,458

Investments
 
471,129

 
468,410

 
552,242

Loans (1)
 
903,415

 
910,330

 
898,811

Earning assets
 
1,399,220

 
1,404,459

 
1,476,572

Allowance for credit losses
 
(9,124
)
 
(9,074
)
 
(8,789
)
Nonaccrual loans
 
2,696

 
2,586

 
4,093

Other non-earning assets
 
147,929

 
143,965

 
152,628

Total assets
 
$
1,540,721

 
$
1,541,936

 
$
1,624,504

 
 
 
 
 
 
 
Interest bearing deposits
 
$
746,875

 
$
740,143

 
$
830,722

Other borrowings
 
5,766

 
6,179

 
10,899

Total interest-bearing liabilities
 
752,641

 
746,322

 
841,621

Non-interest bearing demand deposits
 
543,137

 
559,653

 
553,931

Non-interest bearing liabilities
 
23,433

 
20,859

 
20,352

Total liabilities
 
1,319,211

 
1,326,834

 
1,415,904

Total equity
 
221,510

 
215,102

 
208,600

Total liabilities and equity
 
$
1,540,721

 
$
1,541,936

 
$
1,624,504

 
 
 
 
 
 
 
AVERAGE RATES
 
 
 
 
 
 
Federal funds sold
 
2.40
%
 
2.20
%
 
1.51
%
Interest-earning deposits in other banks
 
2.44
%
 
2.29
%
 
1.54
%
Investments
 
3.17
%
 
3.12
%
 
2.83
%
Loans (3)
 
5.64
%
 
5.54
%
 
5.42
%
Earning assets
 
4.76
%
 
4.67
%
 
4.40
%
Interest-bearing deposits
 
0.21
%
 
0.18
%
 
0.12
%
Other borrowings
 
4.23
%
 
3.82
%
 
2.42
%
Total interest-bearing liabilities
 
0.24
%
 
0.21
%
 
0.15
%
Net interest margin (calculated on a fully tax equivalent basis) (2)
 
4.63
%
 
4.55
%
 
4.31
%
(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 $150, $141, and $284, for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018, respectively.
(3)
Loan yield includes loan fees (costs) for the three months ended March 31, 2019, December 31, 2018, and March 31, 2018 of $26, $(8), and $121, respectively.

CONTACT: 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


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