News Details

Central Valley Community Bancorp Reports Earnings Results for the Quarter and Nine Months Ended September 30, 2012

October 17, 2012

FRESNO, CA -- (Marketwire) -- 10/17/12 -- 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 $5,878,000, and diluted earnings per common share of $0.58 for the nine months ended September 30, 2012, compared to $4,769,000 and $0.46 per diluted common share for the nine months ended September 30, 2011. Net income increased 23.25%, primarily driven by a decrease in non-interest expense and increases in non-interest income, partially offset by a decrease in net interest income in the first three quarters of 2012 compared to the first three quarters of 2011. Non-performing assets decreased $4,244,000 or 29.40% to $10,190,000 at September 30, 2012, compared to $14,434,000 at December 31, 2011. Shareholders' equity increased $10,004,000, or 9.31% during the nine months ended September 30, 2012. The growth in shareholders' equity was driven by net income during the period, an increase in other comprehensive income, and the issuance of common stock from the exercise of stock options. Unaudited consolidated net income and diluted earnings per common share for the quarter ended September 30, 2012, were higher than in the first two quarters of 2012 and the corresponding quarter in 2011.

During the first three quarters of 2012, the Company's total assets increased 4.56%, total liabilities increased 3.87%, and shareholders' equity increased 9.31% compared to December 31, 2011. Annualized return on average equity (ROE) for the nine months ended September 30, 2012 was 6.91%, compared to 6.21% for the nine months ended September 30, 2011. 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 0.93% and 0.81% for the nine months ended September 30, 2012 and 2011, respectively. The increase in ROA is due to an increase in net income, notwithstanding an increase in average assets.

During the nine months ended September 30, 2012, the Company recorded a provision for credit losses of $500,000, compared to $750,000 for the nine months ended September 30, 2011. During the nine months ended September 30, 2012, the Company recorded $1,682,000 in net loan charge-offs, compared to $733,000 for the nine months ended September 30, 2011. The net charge-off ratio, which reflects net charge-offs to average loans, was 0.55% for the nine months ended September 30, 2012, compared to 0.23% for the same period in 2011. The Company also recorded OREO related expenses of $78,000 during 2012 compared to $11,000 for the nine months ended September 30, 2011.

At September 30, 2012, the allowance for credit losses stood at $10,214,000, compared to $11,396,000 at December 31, 2011, a net decrease of $1,182,000. The allowance for credit losses as a percentage of total loans was 2.56% at September 30, 2012, and 2.67% at December 31, 2011. The Company believes the allowance for credit losses is adequate to provide for probable losses inherent within the loan portfolio at September 30, 2012.

Total non-performing assets were $10,190,000, or 1.15% of total assets as of September 30, 2012 compared to $14,434,000 or 1.70% of total assets as of December 31, 2011. Total non-performing assets as of September 30, 2011 were $17,064,000 or 2.04% of total assets.

The following provides a reconciliation of the change in non-accrual loans for the first three quarters of 2012.

                       Additions         Transfer to  Returns       Balances
              Balances  to Non-         Foreclosed     to          September
(Dollars in   December  accrual  Net Pay Collateral- Accrual Charge    30,
 thousands)   31, 2011   Loans    Downs     OREO    Status   Offs     2012
              -------- --------- -------  -------  ------- -------  --------
Non-accrual
 loans:
 Commercial
  and
  industrial  $    267 $       4 $   (32) $  (155) $    -- $   (84) $     --
 Real estate     2,787       294     (15)  (2,175)      --    (381)      510
 Equity loans
  and lines of
  credit           705        79    (470)      --       --     (75)      239
 Consumer           74        73      (4)      --       --    (143)       --
Restructured
 loans (non-
 accruing):
 Real estate     2,129       425     (58)      (7)      --  (1,103)    1,386
 Real estate
  construction
  and land
  development    6,823        --    (395)      --       --      --     6,428
 Equity loans
  and lines of
  credit         1,649        75     (97)      --       --      --     1,627
              -------- --------- -------  -------  ------- -------  --------
  Total non-
   accrual    $ 14,434 $     950 $(1,071) $(2,337) $    -- $(1,786) $ 10,190
              ======== ========= =======  =======  ======= =======  ========

The following provides a summary of the change in the OREO balance for the nine months ended September 30, 2012:

                                                Nine Months
                                                   Ended
                                               September 30,
               (Dollars in thousands)               2012
                                               -------------
               Balance, Beginning of period    $          --
               Additions                               2,337
               Dispositions                           (2,349)
               Write-downs                                --
               Net gain on disposition                    12
                                               -------------
               Balance, End of period          $          --
                                               =============

The Company's net interest margin (fully tax equivalent basis) was 4.30% for the nine months ended September 30, 2012, compared to 4.68% for the nine months ended September 30, 2011. The decrease in net interest margin 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, 2012, the effective yield on total earning assets decreased 54 basis points to 4.57% compared to 5.11% for the nine months ended September 30, 2011, while the cost of total interest-bearing liabilities decreased 22 basis points to 0.39% compared to 0.61% for the nine months ended September 30, 2011. The cost of total deposits decreased 17 basis points to 0.25% for the nine months ended September 30, 2012, compared to 0.42% for the nine months ended September 30, 2011. For the nine months ended September 30, 2012, the amount of the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased $71,200,000 or 25.11% compared to the nine months ended September 30, 2012. The effective yield on average investment securities decreased to 2.88% for the nine months ended September 30, 2012, compared to 3.42% for the nine months ended September 30, 2011. The decrease in yield in the Company's investment securities during 2012 resulted primarily from the purchase of lower yielding investment securities. Average loans, which generally yield higher rates than investment securities, decreased $22,416,000, from $431,506,000 for the nine months ended September 30, 2011 to $409,090,000 for the nine months ended September 30, 2012. The effective yield on average loans decreased to 6.12% from 6.32% between September 30, 2011 and September 30, 2012. Net interest income before the provision for credit losses for the nine months ended September 30, 2012 was $22,748,000, compared to $23,341,000 for the nine months ended September 30, 2011, a decrease of $593,000 or 2.54%. Net interest income decreased as a result of these yield changes and an increase in interest-bearing liabilities, partially offset by an increase in average earning assets.

Total average assets for the nine months ended September 30, 2012 were $842,477,000 compared to $786,394,000, for the nine months ended September 30, 2011, an increase of $56,083,000 or 7.13%. Total average loans were $409,090,000 for the first three quarters of 2012, compared to $431,506,000 for the same period in 2011, representing a decrease of $22,416,000. Total average investments, including deposits in other banks and Federal funds sold, increased to $354,767,000 for the nine months ended September 30, 2012, from $283,567,000 for the nine months ended September 30, 2011, representing an increase of $71,200,000 or 25.11%. Total average deposits increased $45,505,000 or 6.84% to $710,698,000 for the nine months ended September 30, 2012, compared to $665,193,000 for the nine months ended September 30, 2011. Average interest-bearing deposits increased $11,380,000, or 2.33%, and average non-interest bearing demand deposits increased $34,125,000, or 19.39%, for the nine months ended September 30, 2012, compared to the nine months ended September 30, 2011. The Company's ratio of average non-interest bearing deposits to total deposits was 29.57% for the nine months ended September 30, 2012, compared to 26.46% for the nine months ended September 30, 2011.

Non-interest income for the nine months ended September 30, 2012 increased $473,000 to $5,413,000, compared to $4,940,000 for the nine months ended September 30, 2011, driven primarily by an increase of $1,038,000 in net realized gains on sales and calls of investment securities, and a $223,000 increase in loan placement fees, partially offset by a decrease of $596,000 in gains on the sale of other real estate owned, and a $128,000 decrease in service charge income. The net gain realized on sales and calls of investment securities was the result of a partial restructuring of the investment portfolio designed to improve the future performance of the portfolio.

Non-interest expense for the nine months ended September 30, 2012 decreased $1,151,000, or 5.37%, to $20,291,000 compared to $21,442,000 for the nine months ended September 30, 2011, primarily due to decreases in occupancy and equipment expenses of $184,000, advertising fees of $129,000, legal fees of $148,000, salaries and employee benefits of $275,000, and regulatory assessments of $176,000, partially offset by increases in other real estate owned expenses of $67,000 and audit and accounting fees of $42,000.

The Company recorded an income tax expense of $1,492,000 for the nine months ended September 30, 2012, compared to $1,320,000 for the nine months ended September 30, 2011. The effective tax rate for 2012 was 20.24% compared to 21.68% for the nine months ended September 30, 2011.

Quarter Ended September 30, 2012
For the quarter ended September 30, 2012, the Company reported unaudited consolidated net income of $2,456,000 and diluted earnings per common share of $0.25, compared to $1,408,000 and $0.13 per diluted share, for the same period in 2011, and $1,709,000 and $0.17 per diluted share, for the quarter ended June 30, 2012. The increase in net income during the third quarter of 2012 compared to the same period in 2011 is primarily due to decreases in net interest income, provision for credit losses, and non-interest expense; and increases in non-interest income.

Annualized return on average equity for the third quarter of 2012 was 8.43%, compared to 5.34% for the same period of 2011. This increase is reflective of an increase in net income partially offset by an increase in capital. Annualized return on average assets was 1.14% for the third quarter of 2012 compared to 0.7% for the same period in 2011. This increase is due to an increase in net income notwithstanding an increase in average assets.

In comparing the third quarter of 2012 to the third quarter of 2011, average total loans decreased $31,274,000, or 7.19%. During the third quarter of 2012, the Company did not record a provision for credit losses, compared to $400,000 for the same period in 2011. During the third quarter of 2012, the Company recorded $74,000 in net loan recoveries compared to $404,000 net loan charge-offs for the same period in 2011. The net charge-off ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.07)% for the quarter ended September 30, 2012 compared to 0.37% for the quarter ended September 30, 2011.

The following provides a reconciliation of the change in non-accrual loans for the quarter ended September 30, 2012.

                       Additions         Transfer to Returns        Balances
              Balances  to Non-          Foreclosed   to           September
(Dollars in   June 30,  accrual  Net Pay Collateral- Accrual Charge   30,
 thousands)     2012     Loans    Downs     OREO    Status   Offs     2012
              -------- --------- -------  -------- ------- -------  --------
Non-accrual
 loans:
 Real estate  $    220 $     294 $    (4) $     -- $    -- $    --  $    510
 Equity loans
  and lines of
  credit           318        --     (79)       --      --      --       239
 Consumer           71        73      (1)       --      --    (143)       --
Restructured
 loans (non-
 accruing):
 Real estate     1,411        --     (25)       --      --      --     1,386
 Real estate
  construction
  and land
  development    6,562        --    (134)       --      --      --     6,428
 Equity loans
  and lines of
  credit         1,660        --     (33)       --      --      --     1,627
              -------- --------- -------  -------- ------- -------  --------
  Total non-
   accrual    $ 10,242 $     367 $  (276) $     -- $    -- $  (143) $ 10,190
              ======== ========= =======  ======== ======= =======  ========

The following provides a summary of the change in the OREO balance for the quarter ended September 30, 2012:

                                               Quarter Ended
                                               September 30,
               (Dollars in thousands)               2012
                                               -------------
               Balance, Beginning of period    $       2,098
               Additions                                  --
               Dispositions                           (2,098)
               Write-downs                                --
               Net gain (loss) on disposition             --
                                               -------------
               Balance, End of period          $          --
                                               =============

Average total deposits for the third quarter of 2012 increased $35,168,000 or 5.14% to $719,889,000 compared to $684,721,000 for the same period of 2011.

The Company's net interest margin (fully tax equivalent basis) decreased 45 basis points to 4.21% for the quarter ended September 30, 2012, from 4.66% for the quarter ended September 30, 2011. Net interest income, before provision for credit losses, decreased $377,000 or 4.74% to $7,572,000 for the third quarter of 2012, compared to $7,949,000 for the same period in 2011. The decreases in net interest margin and in net interest income are primarily due to a decrease in the yield on interest-earning assets and a decrease in average loan balances. Over the same periods, the cost of total deposits decreased 17 basis points to 0.20% compared to 0.37% in 2011.

Non-interest income increased $689,000 or 43.20% to $2,284,000 for the third quarter of 2012 compared to $1,595,000 for the same period in 2011. The third quarter of 2012 non-interest income included $843,000 in net realized gains on sales and calls of investment securities compared to $223,000 for the same period in 2011. Non-interest expense decreased $567,000 or 7.85% for the same periods mainly due to decreases in salaries and employee benefits, occupancy expense, regulatory assessments, advertising expense, and legal fees, partially offset by increases in audit and accounting fees.

"The third quarter of 2012 showed consistent and improved earnings due to expense reduction and non-interest income increase from securities called/sold and from loan placement fees. This along with continued asset quality improvement highlights the safety and financial strength of our company," stated Daniel J. Doyle, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank.

"Gross loans decreased during the quarter as a result of customer paydowns. The market for loans continues to experience competitive pricing and terms. We are seeing some increase in loan commitments, but reduced usage on lines of credit due to the economic uncertainty factors affecting our business borrowers and the profitability of many of our agriculture-related borrowers," 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, Merced, Modesto, Oakhurst, Prather, Sacramento, Stockton, and Tracy, 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, 2011. 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)                  2012          2011
                                                 ------------- -------------
                                                  (Unaudited)
ASSETS
Cash and due from banks                          $      21,124 $      19,409
Interest-earning deposits in other banks                55,074        24,467
Federal funds sold                                         721           928
                                                 ------------- -------------
      Total cash and cash equivalents                   76,919        44,804
Available-for-sale investment securities
 (Amortized cost of $351,037 at September 30,
 2012 and $321,405 at December 31, 2011)               364,808       328,413
Loans, less allowance for credit losses of
 $10,214 at September 30, 2012 and $11,396 at
 December 31, 2011                                     388,922       415,999
Bank premises and equipment, net                         6,296         5,872
Bank owned life insurance                               12,063        11,655
Federal Home Loan Bank stock                             3,850         2,893
Goodwill                                                23,577        23,577
Core deposit intangibles                                   633           783
Accrued interest receivable and other assets            10,669        15,027
                                                 ------------- -------------
      Total assets                               $     887,737 $     849,023
                                                 ============= =============

LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
  Non-interest bearing                           $     229,089 $     208,025
  Interest bearing                                     508,197       504,961
                                                 ------------- -------------
    Total deposits                                     737,286       712,986
Short-term borrowings                                    4,000            --
Long-term debt                                              --         4,000
Junior subordinated deferrable interest
 debentures                                              5,155         5,155
Accrued interest payable and other liabilities          23,810        19,400
                                                 ------------- -------------
      Total liabilities                                770,251       741,541
                                                 ------------- -------------
Commitments and contingencies
Shareholders' equity:
Preferred stock, no par value, $1,000 per share
 liquidation preference; 10,000,000 shares
 authorized, Series C, issued and outstanding:
 7,000 shares at September 30, 2012 and December
 31, 2011                                                7,000         7,000
Common stock, no par value; 80,000,000 shares
 authorized; issued and outstanding: 9,605,766
 at September 30, 2012 and 9,547,816 at December
 31, 2011                                               40,960        40,552
Retained earnings                                       61,422        55,806
Accumulated other comprehensive income, net of
 tax                                                     8,104         4,124
                                                 ------------- -------------
      Total shareholders' equity                       117,486       107,482
                                                 ------------- -------------
      Total liabilities and shareholders' equity $     887,737 $     849,023
                                                 ============= =============



                      CENTRAL VALLEY COMMUNITY BANCORP
                     CONSOLIDATED STATEMENTS OF INCOME
                                (Unaudited)

                                For the Three Months   For the Nine Months
                                 Ended September 30,   Ended September 30,
                                --------------------- ---------------------
(In thousands, except share and
 per share amounts)                2012       2011       2012       2011
                                ---------- ---------- ---------- ----------

INTEREST INCOME:
  Interest and fees on loans    $    6,111 $    6,640 $   18,248 $   19,662
  Interest on deposits in other
   banks                                36         46         70        141
  Interest on Federal funds
   sold                                 --         --          1          1
  Interest and dividends on
   investment securities:
    Taxable                            741      1,079      2,694      3,307
    Exempt from Federal income
     taxes                           1,118        892      3,233      2,522
                                ---------- ---------- ---------- ----------
      Total interest income          8,006      8,657     24,246     25,633
                                ---------- ---------- ---------- ----------
INTEREST EXPENSE:
  Interest on deposits                 371        647      1,307      2,076
  Interest on junior
   subordinated deferrable
   interest debentures                  27         24         82         73
  Other                                 36         37        109        143
                                ---------- ---------- ---------- ----------
    Total interest expense             434        708      1,498      2,292
                                ---------- ---------- ---------- ----------
    Net interest income before
     provision for credit
     losses                          7,572      7,949     22,748     23,341
PROVISION FOR CREDIT LOSSES             --        400        500        750
                                ---------- ---------- ---------- ----------
    Net interest income after
     provision for credit
     losses                          7,572      7,549     22,248     22,591
                                ---------- ---------- ---------- ----------
NON-INTEREST INCOME:
  Service charges                      690        735      2,055      2,183
  Appreciation in cash
   surrender value of bank
   owned life insurance                101         96        291        289
  Loan placement fees                  181         51        408        185
  Net gain on disposal of other
   real estate owned                    --         75         12        608
  Net realized gain on sale of
   assets                               --         --          4         --
  Net realized gains on sales
   and calls of investment
   securities                          843        223      1,287        249
  Other-than-temporary
   impairment loss:
    Total impairment loss               --         --         --        (31)
    Loss recognized in other
     comprehensive income               --         --         --         --
                                ---------- ---------- ---------- ----------
      Net impairment loss
       recognized in earnings           --         --         --        (31)
  Federal Home Loan Bank
   dividends                             4          1         11          6
  Other income                         465        414      1,345      1,451
                                ---------- ---------- ---------- ----------
    Total non-interest income        2,284      1,595      5,413      4,940
                                ---------- ---------- ---------- ----------
NON-INTEREST EXPENSES:
  Salaries and employee
   benefits                          3,773      4,058     11,859     12,134
  Occupancy and equipment              906        978      2,664      2,848
  Regulatory assessments               163        181        488        664
  Data processing expense              274        295        851        857
  Advertising                          139        182        419        548
  Audit and accounting fees            126        112        379        337
  Legal fees                            36         90        118        266
  Other real estate owned                6          9         78         11
  Amortization of core deposit
   intangibles                          50        104        150        311
  Other expense                      1,182      1,213      3,285      3,466
                                ---------- ---------- ---------- ----------
    Total non-interest expenses      6,655      7,222     20,291     21,442
                                ---------- ---------- ---------- ----------
      Income before provision
       for income taxes              3,201      1,922      7,370      6,089
PROVISION FOR INCOME TAXES             745        514      1,492      1,320
                                ---------- ---------- ---------- ----------
    Net income                  $    2,456 $    1,408 $    5,878 $    4,769
                                ========== ========== ========== ==========
Net income                      $    2,456 $    1,408 $    5,878 $    4,769
Preferred stock dividends and
 accretion                              87        202        262        400
                                ---------- ---------- ---------- ----------
    Net income available to
     common shareholders        $    2,369 $    1,206 $    5,616 $    4,369
                                ========== ========== ========== ==========
Net income per common share:
  Basic earnings per common
   share                        $     0.25 $     0.13 $     0.59 $     0.46
                                ========== ========== ========== ==========
  Weighted average common
   shares used in basic
   computation                   9,602,473  9,547,816  9,588,321  9,513,387
                                ========== ========== ========== ==========
  Diluted earnings per common
   share                        $     0.25 $     0.13 $     0.58 $     0.46
                                ========== ========== ========== ==========
  Weighted average common
   shares used in diluted
   computation                   9,635,339  9,557,609  9,613,202  9,534,426
                                ========== ========== ========== ==========



                      CENTRAL VALLEY COMMUNITY BANCORP
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                                 (Unaudited)

For the three months
 ended                 Sep. 30,   Jun. 30,   Mar. 31,   Dec. 31,   Sep. 30,
                         2012       2,012      2,012      2,011      2,011
                      ---------- ---------- ---------- ---------- ----------
(In thousands, except
 share and per share
 amounts)
Net interest income   $    7,572 $    7,510 $    7,666 $    8,016 $    7,949
Provision for credit
 losses                       --        100        400        300        400
                      ---------- ---------- ---------- ---------- ----------
Net interest income
 after provision for
 credit losses             7,572      7,410      7,266      7,716      7,549
Total non-interest
 income                    2,284      1,471      1,658      1,336      1,595
Total non-interest
 expense                   6,655      6,718      6,918      6,803      7,222
Provision for income
 taxes                       745        454        293        541        514
                      ---------- ---------- ---------- ---------- ----------
Net income            $    2,456 $    1,709 $    1,713 $    1,708 $    1,408
                      ========== ========== ========== ========== ==========
Net income available
 to common
 shareholders         $    2,369 $    1,622 $    1,625 $    1,622 $    1,206
                      ========== ========== ========== ========== ==========
Basic earnings per
 common share         $     0.25 $     0.17 $     0.17 $     0.17 $     0.13
                      ========== ========== ========== ========== ==========
Weighted average
 common shares used
 in basic computation  9,602,473  9,592,045  9,570,297  9,547,816  9,547,816
                      ========== ========== ========== ========== ==========
Diluted earnings per
 common share         $     0.25 $     0.17 $     0.17 $     0.17 $     0.13
                      ========== ========== ========== ========== ==========
Weighted average
 common shares used
 in diluted
 computation           9,635,339  9,618,976  9,577,432  9,552,043  9,557,609
                      ========== ========== ========== ========== ==========



                      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               2012      2012      2012      2011       2011
                          -------   --------  --------  --------   --------
(Dollars in thousands,
 except per share
 amounts)
Allowance for credit
 losses to total loans       2.56%      2.45%     2.52%     2.67%      2.59%
Nonperforming assets to
 total assets                1.15%      1.48%     1.48%     1.70%      2.04%
Total nonperforming
 assets                   $10,190   $ 12,340  $ 12,395  $ 14,434   $ 17,064
Net loan charge offs
 (recoveries)             $   (74)  $    245  $  1,511  $    (66)  $    404
Net charge offs
 (recoveries) to average
 loans (annualized)         (0.07)%     0.24%     1.46%    (0.06)%     0.37%
Book value per share      $  11.5   $  11.08  $  10.82  $  10.52   $  10.41
Tangible book value per
 share                    $  8.98   $   8.55  $   8.28  $   7.97   $   7.84
Tangible common equity    $86,276   $ 81,999  $ 79,422  $ 76,122   $ 74,883
Interest and dividends on
 investment securities
 exempt from Federal
 income taxes             $ 1,118   $  1,078  $  1,037  $    942   $    892
Net interest margin
 (calculated on a fully
 tax equivalent basis)
 (1)                         4.21%      4.33%     4.37%     4.50%      4.66%
Return on average assets
 (2)                         1.14%      0.82%     0.82%     0.81%      0.70%
Return on average equity
 (2)                         8.43%      6.06%     6.19%     6.41%      5.34%
Tier 1 leverage - Bancorp   10.78%     10.70%    10.33%    10.13%     10.19%
Tier 1 leverage - Bank      10.35%     10.60%    10.21%    10.01%     10.07%
Tier 1 risk-based capital
 - Bancorp                  18.27%     17.29%    16.97%    16.20%     15.95%
Tier 1 risk-based capital
 - Bank                     17.56%     17.14%    16.78%    16.02%     15.76%
Total risk-based capital
 - Bancorp                  19.57%     18.58%    18.25%    17.49%     17.25%
Total risk based capital
 - Bank                     18.86%     18.43%    18.06%    17.31%     17.05%

(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
AVERAGE AMOUNTS                   Ended September 30,   Ended September 30,
                                 --------------------  --------------------
(Dollars in thousands)              2012       2011       2012       2011
                                 ---------  ---------  ---------  ---------
Federal funds sold               $     653  $     610  $     575  $     643
Interest-bearing deposits in
 other banks                        51,441     72,532     35,326     73,148
Investments                        324,291    226,050    318,866    209,776
Loans (1)                          393,600    420,392    398,459    415,983
Federal Home Loan Bank stock         3,850      2,907      3,441      2,981
                                 ---------  ---------  ---------  ---------
Earning assets                     773,835    722,491    756,667    702,531
Allowance for credit losses        (10,200)   (11,024)   (10,457)   (10,994)
Non-accrual loans                   10,111     14,593     10,631     15,523
Other real estate owned                570        128      1,227        266
Other non-earning assets            86,223     81,407     84,409     79,068
                                 ---------  ---------  ---------  ---------
Total assets                     $ 860,539  $ 807,595  $ 842,477  $ 786,394
                                 =========  =========  =========  =========

Interest bearing deposits        $ 496,915  $ 499,773  $ 500,555  $ 489,175
Other borrowings                     9,155      9,155      9,157     10,639
                                 ---------  ---------  ---------  ---------
Total interest-bearing
 liabilities                       506,070    508,928    509,712    499,814
Non-interest bearing demand
 deposits                          222,974    184,948    210,143    176,018
Non-interest bearing liabilities    14,960      8,234      9,264      8,241
                                 ---------  ---------  ---------  ---------
Total liabilities                  744,004    702,110    729,119    684,073
                                 ---------  ---------  ---------  ---------
Total equity                       116,535    105,485    113,358    102,321
                                 ---------  ---------  ---------
Total liabilities and equity     $ 860,539  $ 807,595  $ 842,477  $ 786,394
                                 =========  =========  =========  =========


AVERAGE RATES
Federal funds sold                    0.25%      0.25%      0.30%      0.21%
Interest-earning deposits in
 other banks                          0.28%      0.25%      0.26%      0.26%
Investments                           3.00%      4.30%      3.17%      4.53%
Loans                                 6.16%      6.27%      6.12%      6.32%
Earning assets                        4.44%      5.05%      4.57%      5.11%
Interest-bearing deposits             0.30%      0.51%      0.35%      0.57%
Other borrowings                      2.73%      2.64%      2.79%      2.71%
Total interest-bearing
 liabilities                          0.34%      0.55%      0.39%      0.61%
Net interest margin (calculated
 on a fully tax equivalent
 basis) (2)                           4.21%      4.66%      4.30%      4.68%

(1) Average loans do not include non-accrual loans.
(2) Calculated on a fully tax equivalent basis, which includes Federal tax
    benefits relating to income earned on municipal bonds totaling $576 and
    $461 for the quarters ended September 30, 2012 and 2011, respectively.
    The Federal tax benefits relating to income earned on municipal bonds
    totaled $1,665 and $1,299 for the nine months ended September 30, 2012
    and 2011, respectively.

Source: Central Valley Community Bancorp