FRESNO, CA -- (Marketwire) -- 07/18/12 --
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 $3,422,000, and diluted earnings per common share of $0.34 for the six months ended June 30, 2012, compared to $3,361,000 and $0.33 per diluted common share for the six months ended June 30, 2011. Net income increased 1.81%, primarily driven by a decrease in non-interest expense, partially offset by a higher provision for credit losses and decreases in non-interest income in 2012 compared to 2011. Non-performing assets decreased $2,094,000 or 14.51% to $12,340,000 at June 30, 2012, compared to $14,434,000 at December 31, 2011. Included in non-performing assets is $2,098,000 in OREO as of June 30, 2012 compared to none at December 31, 2011. Shareholders' equity increased $5,777,000, or 5.37% during the six months ended June 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 June 30, 2012, were marginally lower than in the first quarter of 2012 and the corresponding quarter in 2011.
During the first two quarters of 2012, the Company's total assets decreased 1.53%, total liabilities decreased 2.53%, and shareholders' equity increased 5.37% compared to December 31, 2011. Return on average equity (ROE) for the six months ended June 30, 2012 was 6.12%, compared to 6.67% for the six months ended June 30, 2011. The decrease in ROE reflects an increase in capital from an increase in other comprehensive income and an increase in retained earnings, which were greater than the increase in net income. Return on average assets (ROA) was 0.82% and 0.87% for the six months ended June 30, 2012 and 2011, respectively.
During the six months ended June 30, 2012, the Company recorded a provision for credit losses of $500,000, compared to $350,000 for the six months ended June 30, 2011. During the six months ended June 30, 2012, the Company recorded $1,756,000 in net loan charge-offs, compared to $330,000 for the six months ended June 30, 2011. The net charge-off ratio, which reflects net charge-offs to average loans, was 0.85% for the six months ended June 30, 2012, compared to 0.15% for the same period in 2011. The Company also recorded OREO related expenses of $72,000 during 2012 compared to $2,000 for the six months ended June 30, 2011.
At June 30, 2012, the allowance for credit losses stood at $10,140,000, compared to $11,396,000 at December 31, 2011, a net decrease of $1,256,000. The allowance for credit losses as a percentage of total loans was 2.45% at June 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 June 30, 2012.
Total non-performing assets were $12,340,000, or 1.48% of total assets as of June 30, 2012 compared to $14,434,000 or 1.70% of total assets as of December 31, 2011. Total non-performing assets as of June 30, 2011 were $14,959,000 or 1.89% of total assets.
The following provides a reconciliation of the change in non-accrual loans for the first two quarters of 2012.
Transfer
Additions to Returns
Balances to Non- Net Foreclosed to Balances
(Dollars in December accrual Pay Collateral Accrual Charge June 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 -- (11) (2,175) -- (381) 220
Equity loans
and lines of
credit 705 79 (390) -- -- (76) 318
Consumer 74 -- (3) -- -- -- 71
Restructured
loans (non-
accruing):
Real estate 2,129 425 (33) (7) -- (1,103) 1,411
Real estate
construction
and land
development 6,823 -- (261) -- -- -- 6,562
Equity loans
and lines of
credit 1,649 75 (64) -- -- -- 1,660
-------- --------- ----- ---------- ------- ------- --------
Total non-
accrual $ 14,434 $ 583 $(794)$ (2,337)$ -- $(1,644)$ 10,242
======== ========= ===== ========== ======= ======= ========
The following provides a summary of the change in the OREO balance for the six months ended June 30, 2012:
Six Months Ended
(Dollars in thousands) June 30, 2012
----------------
Balance, Beginning of period $ --
Additions 2,337
Dispositions (251)
Write-downs --
Net gain (loss) on disposition 12
----------------
Balance, End of period $ 2,098
================
The Company's net interest margin (fully tax equivalent basis) was 4.35% for the six months ended June 30, 2012, compared to 4.69% for the six months ended June 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 six months ended June 30, 2012, the effective yield on total earning assets decreased 51 basis points to 4.64% compared to 5.15% for the six months ended June 30, 2011, while the cost of total interest-bearing liabilities decreased 23 basis points to 0.42% compared to 0.65% for the six months ended June 30, 2011. For the six months ended June 30, 2012, the amount of the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased 24.75% compared to the six months ended June 30, 2012. The effective yield on average investment securities decreased to 3.02% for the six months ended June 30, 2012, compared to 3.48% for the six months ended June 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 4.17%, from $429,737,000 for the six months ended June 30, 2011 to $411,810,000 for the six months ended June 30, 2012. The effective yield on average loans decreased to 6.09% from 6.35% between June 30, 2011 and June 30, 2012. The cost of total deposits decreased 17 basis points to 0.27% for the six months ended June 30, 2012, compared to 0.44% for the six months ended June 30, 2011. Net interest income before the provision for credit losses for the six months ended June 30, 2012 was $15,176,000, compared to $15,392,000 for the six months ended June 30, 2011, a decrease of $216,000 or 1.40%. 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 six months ended June 30, 2012 were $833,345,000 compared to $775,625,000, for the six months ended June 30, 2011, an increase of $57,720,000 or 7.44%. Total average loans were $411,810,000 for 2012, compared to $429,737,000 for 2011, representing a decrease of $17,927,000 or 4.17%. Total average investments, including deposits in other banks and Federal funds sold, increased to $343,836,000 for the six months ended June 30, 2012, from $275,623,000 for the six months ended June 30, 2011, representing an increase of $68,213,000 or 24.75%. Total average deposits increased $47,288,000 or 7.22% to $702,559,000 for the six months ended June 30, 2012, compared to $655,271,000 for the six months ended June 30, 2011. Average interest-bearing deposits increased $15,109,000, or 3.12%, and average non-interest bearing demand deposits increased $32,179,000, or 18.77%, for the six months ended June 30, 2012, compared to the six months ended June 30, 2011. The Company's ratio of average non-interest bearing deposits to total deposits was 28.99% for the six months ended June 30, 2012, compared to 26.17% for the six months ended June 30, 2011.
Non-interest income for the six months ended June 30, 2012 was $3,129,000, compared to $3,345,000 for the six months ended June 30, 2011. For the six months ended June 30, 2011, the Company had $521,000 more in gains on the sale of other real estate owned, and $83,000 more in service charge income than during the six months ended June 30, 2012. These differences, netted against a $418,000 increase in net realized gains on sales and calls of investment securities, a $93,000 increase in loan placement fees, and a $31,000 change in net impairment loss recognized in earnings, were primarily the reasons for the $216,000 decrease in non-interest income for the first six months of 2012 compared to the first six months of 2011.
Non-interest expense for the six months ended June 30, 2012 decreased $584,000, or 4.11%, to $13,636,000 compared to $14,220,000 for the six months ended June 30, 2011, primarily due to decreases in occupancy and equipment expenses of $112,000, advertising fees of $86,000, legal fees of $94,000, and regulatory assessments of $158,000, partially offset by increases in other real estate owned expenses of $72,000 and salaries and employee benefits of $10,000.
The Company recorded an income tax expense of $747,000 for the six months ended June 30, 2012, compared to $806,000 for the six months ended June 30, 2011. The effective tax rate for 2012 was 17.92% compared to 19.34% for the six months ended June 30, 2011.
Quarter Ended June 30, 2012
For the quarter ended June 30, 2012, the Company reported unaudited consolidated net income of $1,709,000 and diluted earnings per common share of $0.17, compared to $1,773,000 and $0.18 per diluted share, for the same period in 2011, and $1,713,000 and $0.17 per diluted share, for the quarter ended March 31, 2012. The decrease in net income during the second quarter of 2012 compared to the same period in 2011 is primarily due to decreases in interest income and decreases in non-interest income partially offset by decreases in interest expense and a decrease in non-interest expense.
Annualized return on average equity for the second quarter of 2012 was 6.06%, compared to 6.92% for the same period of 2011. This decrease is reflective of a decrease in net income and an increase in capital. Annualized return on average assets was 0.82% for the second quarter of 2012 compared to 0.91% for the same period in 2011. This decrease is due to a decrease in net income and an increase in average assets.
In comparing the second quarter of 2012 to the second quarter of 2011, average total loans decreased $22,278,000, or 5.14%. During the second quarter of 2012, the Company recorded a $100,000 provision for credit losses, compared to $250,000 for the same period in 2011. During the second quarter of 2012, the Company recorded $245,000 in net loan charge-offs compared to $235,000 for the same period in 2011. The net charge-off ratio, which reflects annualized net charge-offs to average loans, was 0.24% for the quarter ended June 30, 2012 compared to 0.22% for the quarter ended June 30, 2011.
The following provides a reconciliation of the change in non-accrual loans for the quarter ended June 30, 2012.
Transfer
Additions to Returns
Balances to Non- Net Foreclosed to Balances
(Dollars in March accrual Pay Collateral Accrual Charge June 30,
thousands) 31, 2012 Loans Downs - OREO Status Offs 2012
-------- --------- ------ ---------- ------- ------ --------
Non-accrual
loans:
Commercial and
industrial $ 24 $ -- $ (21)$ -- $ -- $ (3)$ --
Real estate 225 -- (5) -- -- -- 220
Equity loans
and lines of
credit 504 79 (265) -- -- -- 318
Consumer 73 -- (2) -- -- -- 71
Restructured
loans (non-
accruing):
Real estate 1,004 425 (18) -- -- -- 1,411
Real estate
construction
and land
development 6,696 -- (134) -- -- -- 6,562
Equity loans
and lines of
credit 1,616 75 (31) -- -- -- 1,660
-------- --------- ------ ---------- ------- ------ --------
Total non-
accrual $ 10,142 $ 579 $ (476)$ -- $ -- $ (3)$ 10,242
======== ========= ====== ========== ======= ====== ========
The following provides a summary of the change in the OREO balance for the quarter ended June 30, 2012:
Quarter Ended
(Dollars in thousands) June 30, 2012
----------------
Balance, Beginning of period $ 2,253
Additions --
Dispositions (169)
Write-downs --
Net gain (loss) on disposition 14
----------------
Balance, End of period $ 2,098
================
Average total deposits for the second quarter of 2012 increased $39,557,000 or 5.98% to $700,598,000 compared to $661,041,000 for the same period of 2011.
The Company's net interest margin (fully tax equivalent basis) decreased 38 basis points to 4.33% for the three months ended June 30, 2012, from 4.71% for the three months ended June 30, 2011. Net interest income, before provision for credit losses, decreased $284,000 or 3.64% to $7,510,000 for the second quarter of 2012, compared to $7,794,000 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 0.26% compared to 0.43% in 2011.
Non-interest income decreased $126,000 or 7.89% to $1,471,000 for the second quarter of 2012 compared to $1,597,000 for the same period in 2011. The second quarter of 2011 non-interest income included a $142,000 gain related to the final distribution of the Service 1st escrow account and an $85,000 gain related to the collection of life insurance proceeds. Non-interest expense decreased $349,000 or 4.94% for the same periods mainly due to decreases in regulatory assessments, advertising, salaries and employee benefits, and occupancy expenses, partially offset by increases in other real estate owned expense.
"The second quarter of 2012 demonstrates overall earnings consistency. Net income for the second quarter of 2012 is flat compared to first quarter 2012, slightly lower than the same quarter of 2011, and slightly higher for the first six months of 2012 compared to the first six months of 2011," stated Daniel J. Doyle, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank.
"Asset quality continues to improve with no significant change from first quarter 2012 as the one identified OREO, comprising the bulk of OREO total at June 30, 2012, is in escrow and expected to close during the third quarter of 2012. Loan demand remains a challenge and, combined with low yields on securities, has muted the growth of gross revenue. We are seeing slow, but improving trends in the communities we serve, which we regard as a positive indicator in the economic landscape," concluded Doyle.
Central Valley Community Bancorp trades on the NASDAQ-GS 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, 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
June 30, December 31,
(In thousands, except share amounts) 2012 2011
----------- -------------
(Unaudited)
ASSETS
Cash and due from banks $ 18,643 $ 19,409
Interest-earning deposits in other banks 28,231 24,467
Federal funds sold 610 928
----------- -------------
Total cash and cash equivalents 47,484 44,804
Available-for-sale investment securities
(Amortized cost of $312,175 at June 30, 2012 and
$321,405 at December 31, 2011) 322,931 328,413
Loans, less allowance for credit losses of $10,140
at June 30, 2012 and $11,396 at December 31, 2011 404,203 415,999
Bank premises and equipment, net 6,287 5,872
Other real estate owned 2,098 --
Bank owned life insurance 11,961 11,655
Federal Home Loan Bank stock 3,850 2,893
Goodwill 23,577 23,577
Core deposit intangibles 683 783
Accrued interest receivable and other assets 12,970 15,027
----------- -------------
Total assets $ 836,044 $ 849,023
=========== =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 202,253 $ 208,025
Interest bearing 500,498 504,961
----------- -------------
Total deposits 702,751 712,986
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 10,879 19,400
----------- -------------
Total liabilities 722,785 741,541
----------- -------------
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 June 30, 2012 and December 31,
2011 7,000 7,000
Common stock, no par value; 80,000,000 shares
authorized; issued and outstanding: 9,592,166 at
June 30, 2012 and 9,547,816 at December 31, 2011 40,877 40,552
Retained earnings 59,053 55,806
Accumulated other comprehensive income, net of tax 6,329 4,124
----------- -------------
Total shareholders' equity 113,259 107,482
----------- -------------
Total liabilities and shareholders' equity $ 836,044 $ 849,023
=========== =============
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
For the Three Months For the Six Months
Ended June 30, Ended June 30,
----------------------- -----------------------
(In thousands, except
share and per share
amounts) 2012 2011 2012 2011
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
INTEREST INCOME:
Interest and fees on
loans $ 6,053 $ 6,560 $ 12,137 $ 13,022
Interest on deposits in
other banks 16 45 34 95
Interest on Federal
funds sold 1 -- 1 1
Interest and dividends
on investment
securities:
Taxable 880 1,131 1,953 2,228
Exempt from Federal
income taxes 1,078 830 2,115 1,630
----------- ----------- ----------- -----------
Total interest
income 8,028 8,566 16,240 16,976
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Interest on deposits 455 712 936 1,429
Interest on junior
subordinated deferrable
interest debentures 26 24 55 49
Other 37 36 73 106
----------- ----------- ----------- -----------
Total interest expense 518 772 1,064 1,584
----------- ----------- ----------- -----------
Net interest income
before provision for
credit losses 7,510 7,794 15,176 15,392
PROVISION FOR CREDIT
LOSSES 100 250 500 350
----------- ----------- ----------- -----------
Net interest income
after provision for
credit losses 7,410 7,544 14,676 15,042
----------- ----------- ----------- -----------
NON-INTEREST INCOME:
Service charges 676 749 1,365 1,448
Appreciation in cash
surrender value of bank
owned life insurance 96 96 190 193
Loan placement fees 99 77 227 134
Gain (loss) on disposal
of other real estate
owned 14 (12) 12 533
Net realized gain on
sale of assets 4 -- 4 --
Net realized gains on
sales and calls of
investment securities 97 42 444 26
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 3 3 7 5
Other income 482 642 880 1,037
----------- ----------- ----------- -----------
Total non-interest
income 1,471 1,597 3,129 3,345
----------- ----------- ----------- -----------
NON-INTEREST EXPENSES:
Salaries and employee
benefits 3,957 3,998 8,086 8,076
Occupancy and equipment 877 936 1,758 1,870
Regulatory assessments 169 194 325 483
Data processing expense 283 286 577 562
Advertising 140 182 280 366
Audit and accounting
fees 125 113 253 225
Legal fees 54 83 82 176
Other real estate owned 9 (7) 72 2
Amortization of core
deposit intangibles 50 103 100 207
Other expense 1,054 1,179 2,103 2,253
----------- ----------- ----------- -----------
Total non-interest
expenses 6,718 7,067 13,636 14,220
----------- ----------- ----------- -----------
Income before
provision for
income taxes 2,163 2,074 4,169 4,167
PROVISION FOR INCOME TAXES 454 301 747 806
----------- ----------- ----------- -----------
Net income $ 1,709 $ 1,773 $ 3,422 $ 3,361
=========== =========== =========== ===========
Net income $ 1,709 $ 1,773 $ 3,422 $ 3,361
Preferred stock dividends
and accretion 87 99 175 198
----------- ----------- ----------- -----------
Net income available
to common
shareholders $ 1,622 $ 1,674 $ 3,247 $ 3,163
=========== =========== =========== ===========
Net income per common
share:
Basic earnings per
common share $ 0.17 $ 0.18 $ 0.34 $ 0.33
=========== =========== =========== ===========
Weighted average common
shares used in basic
computation 9,592,045 9,516,110 9,581,172 9,495,890
=========== =========== =========== ===========
Diluted earnings per
common share $ 0.17 $ 0.18 $ 0.34 $ 0.33
=========== =========== =========== ===========
Weighted average common
shares used in diluted
computation 9,618,976 9,540,615 9,604,056 9,522,664
=========== =========== =========== ===========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Jun. 30, Mar 31, Dec. 31, Sep. 30, Jun. 30,
For the three months
ended 2012 2012 2011 2011 2011
---------- ---------- ---------- ---------- ----------
(In thousands, except
share and per share
amounts)
Net interest income $ 7,510 $ 7,666 $ 8,016 $ 7,949 $ 7,794
Provision for credit
losses 100 400 300 400 250
---------- ---------- ---------- ---------- ----------
Net interest income
after provision for
credit losses 7,410 7,266 7,716 7,549 7,544
Total non-interest
income 1,471 1,658 1,336 1,595 1,597
Total non-interest
expense 6,718 6,918 6,803 7,222 7,067
Provision for income
taxes 454 293 541 514 301
---------- ---------- ---------- ---------- ----------
Net income $ 1,709 $ 1,713 $ 1,708 $ 1,408 $ 1,773
========== ========== ========== ========== ==========
Net income available
to common
shareholders $ 1,622 $ 1,625 $ 1,622 $ 1,206 $ 1,674
========== ========== ========== ========== ==========
Basic earnings per
common share $ 0.17 $ 0.17 $ 0.17 $ 0.13 $ 0.18
========== ========== ========== ========== ==========
Weighted average
common shares used
in basic computation 9,592,045 9,570,297 9,547,816 9,547,816 9,516,110
========== ========== ========== ========== ==========
Diluted earnings per
common share $ 0.17 $ 0.17 $ 0.17 $ 0.13 $ 0.18
========== ========== ========== ========== ==========
Weighted average
common shares used
in diluted
computation 9,618,976 9,577,432 9,552,043 9,557,609 9,540,615
========== ========== ========== ========== ==========
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
As of and for the
three months ended 2012 2012 2011 2011 2011
--------- --------- --------- --------- ---------
(Dollars in
thousands, except
per share amounts)
Allowance for credit
losses to total
loans 2.45% 2.52% 2.67% 2.59% 2.53%
Nonperforming assets
to total assets 1.48% 1.48% 1.70% 2.04% 1.89%
Total nonperforming
assets $ 12,340 $ 12,395 $ 14,434 $ 17,064 $ 14,959
Net loan charge offs
(recoveries) $ 245 $ 1,511 $ (66) $ 404 $ 235
Net charge offs
(recoveries) to
average loans
(annualized) 0.24% 1.46% (0.06)% 0.37% 0.22%
Book value per share $ 11.08 $ 10.82 $ 10.52 $ 10.41 $ 10.15
Tangible book value
per share $ 8.55 $ 8.28 $ 7.97 $ 7.84 $ 7.58
Tangible common
equity $ 81,999 $ 79,422 $ 76,122 $ 74,883 $ 72,389
Interest and
dividends on
investment
securities exempt
from Federal income
taxes $ 1,078 $ 1,037 $ 942 $ 892 $ 830
Net interest margin
(calculated on a
fully tax
equivalent basis)
(1) 4.33% 4.37% 4.50% 4.66% 4.71%
Return on average
assets (2) 0.82% 0.82% 0.81% 0.70% 0.91%
Return on average
equity (2) 6.06% 6.19% 6.41% 5.34% 6.92%
Tier 1 leverage -
Bancorp 10.70% 10.33% 10.13% 10.19% 10.22%
Tier 1 leverage -
Bank 10.60% 10.21% 10.01% 10.07% 10.04%
Tier 1 risk-based
capital - Bancorp 17.29% 16.97% 16.20% 15.95% 15.26%
Tier 1 risk-based
capital - Bank 17.14% 16.78% 16.02% 15.76% 14.99%
Total risk-based
capital - Bancorp 18.58% 18.25% 17.49% 17.25% 16.53%
Total risk based
capital - Bank 18.43% 18.06% 17.31% 17.05% 16.26%
(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 Six Months
AVERAGE AMOUNTS Ended June 30, Ended June 30,
-------------------- --------------------
(Dollars in thousands) 2012 2011 2012 2011
--------- --------- --------- ---------
Federal funds sold $ 541 $ 563 $ 535 $ 660
Interest-bearing deposits in
other banks 25,298 70,339 27,178 73,460
Investments 314,884 206,500 316,123 201,503
Loans (1) 400,703 418,121 400,918 413,749
Federal Home Loan Bank stock 3,576 2,986 3,235 3,018
--------- --------- --------- ---------
Earning assets 745,002 698,509 747,989 692,390
Allowance for credit losses (10,197) (10,952) (10,587) (10,979)
Non-accrual loans 10,235 15,095 10,892 15,988
Other real estate owned 2,248 56 1,559 337
Other non-earning assets 83,853 77,758 83,492 77,889
--------- --------- --------- ---------
Total assets $ 831,141 $ 780,466 $ 833,345 $ 775,625
========= ========= ========= =========
Interest bearing deposits $ 498,834 $ 491,074 $ 498,904 $ 483,795
Other borrowings 9,155 9,155 9,158 11,393
--------- --------- --------- ---------
Total interest-bearing
liabilities 507,989 500,229 508,062 495,188
Non-interest bearing demand
deposits 201,764 169,967 203,655 171,476
Non-interest bearing liabilities 8,525 7,909 9,859 8,222
--------- --------- --------- ---------
Total liabilities 718,278 678,105 721,576 674,886
--------- --------- --------- ---------
Total equity 112,863 102,361 111,769 100,739
--------- --------- --------- ---------
Total liabilities and equity $ 831,141 $ 780,466 $ 833,345 $ 775,625
========= ========= ========= =========
AVERAGE RATES
Federal funds sold 0.25% 0.25% 0.25% 0.30%
Interest-earning deposits in
other banks 0.25% 0.26% 0.25% 0.26%
Investments 3.19% 4.62% 3.26% 4.66%
Loans 6.06% 6.29% 6.09% 6.35%
Earning assets 4.61% 5.15% 4.64% 5.15%
Interest-bearing deposits 0.37% 0.58% 0.38% 0.60%
Other borrowings 2.76% 2.63% 2.81% 2.74%
Total interest-bearing
liabilities 0.41% 0.62% 0.42% 0.65%
Net interest margin (calculated
on a fully tax equivalent
basis) (2) 4.33% 4.71% 4.35% 4.69%
(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 $555 and $426 for the quarters ended June 30, 2012 and 2011, respectively. The Federal tax benefits relating to income earned on municipal bonds totaled $1,090 and $838 for the six months ended June 30, 2012 and 2011, respectively.
Source: Central Valley Community Bancorp