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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: May 7, 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))







ITEM 7.01 REGULATION FD DISCLOSURE.

On March 7, 2019, Central Valley Community Bancorp met with investors at the D. A. Davidson & Co. 21st Annual Financial Institutions Conference in Broomfield, Colorado.
A copy of the information in the investor presentation is included as Exhibit 99.1 to this Current Report on Form 8-K and incorporated herein by reference.
The information in this Form 8-K filed on May 7, 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       Investor Relations Presentation of Central Valley Community Bancorp presented on May 7, 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:
May 7, 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




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Section 2: EX-99.1 (EXHIBIT 99.1)

cvcyirpresentationdadco5
Investor Presentation D. A. Davidson & Co. 21st Annual Financial Institutions Conference May 6-8, 2019 Jim Ford President & CEO Dave Kinross EVP CFO


 
Forward-Looking Statements Certain matters discussed herein 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 will undertake no obligation to revise or publically release any revision or update to the forward looking statements to reflect events or circumstances that occur after the date on which statements were made. 2


 
Experienced Management Team Years at Years of Executive Position CVCY Experience James M. Ford President & CEO 4 38 David A. Kinross EVP, Chief Financial Officer 12 28 James J. Kim EVP, Chief Operating Officer 1 18 Gary D. Quisenberry EVP Commercial & Business Banking 18 33 Lydia E. Shaw EVP Community Banking 11 33 Patrick J. Carman EVP, Chief Credit Officer 9 46 Teresa Gilio EVP, Chief Administrative Officer 10 37 3


 
Overview 21 Branches in 9 Contiguous Counties NASDAQ Symbol CVCY Market Capitalization $267 Million Institutional Ownership 48% Insider Ownership 17% Total Assets $1.56 Billion Headquarters Fresno, CA Number of Branches 21 Year Established 1980 Strategic Footprint Bakersfield to Sacramento As of March 31, 2019 4


 
Overview of the Region Seven Metropolitan Statistical Areas • Agricultural products from the region totaled $26.9 billion in 2017, more than 48 states. • Regional GDP equaled $245.7 billion in 2017, more than 26 states including Oregon and Nevada. • Regional Population equaled 5.6 million in 2018, more than 28 states. • All 10 counties in the region have population growth exceeding California and U.S. growth. • Includes Capitol of 5th largest economy in the world • Encompasses a large part of Northern California Megaregion 5


 
Region Comparative Data Fresno MSA Stockton Sacramento California USA MSA MSA Job Growth (1 year, Dec 2017-18) 2.5% 2.6% 1.6% 1.7% 1.8% (5 years, Dec 2013-18) 17.2% 18.2% 13.5% 12.6% 9.4% Population Growth (1 year, 2017-2018) 1.1% 1.3% 1.4% 0.5% 0.6% (5 years, 2013-2018) 5.3% 7.4% 5.4% 3.6% 3.5% Median Household Income (2017) $51,800 $61,164 $67,902 $71,805 $60,336 Median Home Value (Dec 2018) $248,200 $362,000 $406,900 $547,400 $223,900 Home Price Growth (1 year, Dec 2017-18) 6.4% 6.9% 4.8% 4.7% 7.6% (5 years, Dec 2013-18) 45.3% 61.1% 41.3% 40.2% 36.9% 6


 
Financial Highlights 2019 Q1 2018 2017 Total Assets $1.56 Billion $1.54 Billion $1.66 Billion Net Income $5.22 Million $21.29 Million $14.03 Million Diluted EPS $0.38 $1.54 $1.10 Net Interest Margin 4.63% 4.44% 4.40% ROAA 1.35% 1.35% 0.94% ROAE 9.42% 10.07% 7.69% Cash Dividends per share $0.10 $0.31 $0.24 Total Cost of Funds 0.12% 0.09% 0.08% NPAs to Total Assets 0.10% 0.18% 0.18% Leverage Capital Ratio 11.69% 11.48% 9.71% Common Equity Tier 1 Ratio 15.13% 15.13% 12.90% Tier 1 Risk Based Capital Ratio 15.58% 15.59% 13.28% Total Risk Based Capital Ratio 16.41% 16.44% 14.07% 7


 
Attractive Investment Opportunity CVCY Stock Price 25 20 15 Price 10 5 0 1/1/2010 1/1/2011 1/1/2012 1/1/2013 1/1/2014 1/1/2015 1/1/2016 1/1/2017 1/1/2018 1/1/2019 As of April 25, 2019 Source: NASDAQ Monthly Closing Price Data 8


 
Growing Franchise Average Total Assets 1,800,000 1,600,000 1,400,000 1,200,000 1,000,000 Thousands 800,000 1,577,410 1,491,696 1,540,721 1,321,007 1,222,526 600,000 1,157,483 400,000 200,000 0 2014 2015 2016 2017 2018 2019 Q1 Note: Acquisitions of Visalia Community Bank occurred on July 1, 2013, Sierra Vista Bank occurred on October 1, 2016, and Folsom Lake Bank occurred on October 1, 2017 9


 
Strong Net Income and NIM 25,000 4.70 4.63 4.60 20,000 4.44 4.50 4.40 4.40 4.40 15,000 4.30 4.20 4.11 Percent Thousands 21,289 10,000 4.06 4.10 4.01 17,561 15,182 4.00 14,026 10,964 5,000 3.90 5,294 5,216 3.80 0 3.70 2014 2015 2016 2017 2017* 2018 2019 Q1 Net Income Net Interest Margin * Excluding DTA revaluation 10


 
Solid Earnings ROAA / ROAE 1.60 12.00 10.07 1.40 9.84 9.62 9.42 10.00 1.20 8.12 7.69 8.00 1.00 0.80 6.00 1.35 1.35 Percent ROAE Percent ROAA 4.06 0.60 1.15 1.18 4.00 0.90 0.94 0.40 2.00 0.20 0.46 - - 2014 2015 2016 2017 2017* 2018 2019 Q1 ROAA ROAE * Excluding DTA revaluation 11


 
Steady Deposit Growth and Lowest Cost of Funds Average Total Deposits 1,600,000 0.14 0.12 1,400,000 0.12 0.11 1,200,000 0.09 0.10 0.09 0.09 1,000,000 0.08 0.08 800,000 Percent Thousands 1,284,305 1,333,754 1,290,012 0.06 600,000 1,144,231 1,065,798 1,006,560 0.04 400,000 0.02 200,000 0 0.00 2014 2015 2016 2017 2018 2019 Q1 Avg Deposits Cost of Funds 12


 
Attractive Deposit Mix Total Deposits = $1.29 Billion TCDs 7% Money Market 21% Non-Interest Bearing 43% Now/Savings 29% As of March 31, 2019 13


 
Loan Totals and Yield Average Total Loans 1,000,000 5.64 5.70 900,000 5.60 800,000 5.53 5.51 5.50 700,000 5.50 600,000 5.40 500,000 908,419 5.29 5.27 Percent Thousands 790,504 5.30 400,000 903,415 644,282 300,000 578,899 5.20 533,531 200,000 5.10 100,000 0 5.00 2014 2015 2016 2017 2018 2019 Q1 Total Loans Loan Yield 14


 
Well Diversified Loan Portfolio Consumer & Total Loans = $920 Million Equity Loans and Installment, 4% Lines, 8% Other Real Estate, Commercial & 4% Industrial, 11% Agriculture Production & Land, 9% Owner Occupied Real Estate, 21% Commercial Real Estate, 33% R/E Construction & Land, 11% As of March 31, 2019 Excludes Deferred Loan Fees 15


 
Agricultural Loan Commitments Pistachios Citrus 0% 1% Cotton Tree Fruit 3% Almonds 10% 17% Cherries Table Grapes 7% 4% Raisins 7% Open Land 17% Tomatoes 11% Row Crops Walnuts 3% Wine Grapes 9% Other 7% 4% As of March 31, 2019 16


 
Conservative Investment Portfolio Total = $489 Million Equity Mutual Yield = 3.17% Funds Effective Duration 3.31 Years Corporate Debt 2% US Government 1% Agencies Fed Funds Sold 4% 1% Private Label Mortgage and Asset Backed Agency CMO, MBS & 26% Other Securities 45% Municipal Securities 22% As of March 31, 2019 17


 
On the Horizon Improve Efficiencies Organic Loan & Deposit Growth Invest in Team & Technology Realize Benefits from Branch Optimization Strategy Monitor Agriculture Impacts from Water, Regulation, Tariffs, Labor and Global Pricing 18


 
Investing in Relationships 19


 
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