FRESNO, CA -- (Marketwired) -- 07/16/14 --
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 $5,309,000, and diluted earnings per common share of $0.48 for the six months ended June 30, 2014, compared to $3,070,000 and $0.30 per diluted common share for the six months ended June 30, 2013. Unless otherwise noted, material changes in year-over-year balance sheet data and operating performance in dollar (rather than percentage) terms for the six months ended June 30 were the result of the Visalia Community Bank (VCB) acquisition, which closed on July 1, 2013.
Net income increased 72.93%, primarily driven by an increase in net interest income in 2014 compared to 2013. Net interest income during the first six months of 2014 was positively impacted by the collection of nonaccrual loans totaling $1,846,000 which resulted in a recovery of interest income of $861,000.
Non-performing assets decreased by $3,144,000, or 40.43%, to $4,632,000 at June 30, 2014, compared to $7,776,000 at December 31, 2013. During the six months ended June 30, 2014, the Company's shareholders' equity increased $10,888,000, or 9.07%. The increase in shareholders' equity was driven by the retention of earnings net of dividends paid and improvement in unrealized gains on available-for-sale securities recorded in accumulated other comprehensive income (AOCI).
During the first two quarters of 2014, the Company's total assets increased 1.31%, and total liabilities increased 0.41% compared to December 31, 2013. The Company declared and paid $1,092,000 in cash dividends to holders of common stock during the first six months of 2014 ($0.10 per share). Annualized return on average equity (ROE) for the six months ended June 30, 2014 was 8.32%, compared to 5.27% for the six months ended June 30, 2013. The increase in ROE in the first six months of 2014 reflects an increase in net income, notwithstanding an increase in capital from an increase in AOCI and an increase in retained earnings as previously discussed. Annualized return on average assets (ROA) was 0.93% and 0.70% for the six months ended June 30, 2014 and 2013, respectively. The increase in ROA is due to an increase in net income, notwithstanding an increase in average assets.
During the six months ended June 30, 2014 the Company recorded a reverse provision for credit losses of $400,000. The Company did not record a provision during the six months ended June 30, 2013. During the six months ended June 30, 2014, the Company recorded $1,501,000 in net loan charge-offs, compared to $532,000 for the six months ended June 30, 2013. The net charge-off ratio, which reflects net charge-offs to average loans, was 0.57% for the six months ended June 30, 2014, compared to 0.27% for the same period in 2013. The majority of the loans charged off during the six months ended June 30, 2014 were previously classified and sufficient funds were held in the allowance for credit losses as of December 31, 2013.
At June 30, 2014, the allowance for credit losses stood at $7,307,000, compared to $9,208,000 at December 31, 2013, a net decrease of $1,901,000 reflecting the net charge offs, the majority of which related to a nonaccrual commercial and industrial loan charged off in the first quarter which was reserved for as of December 31, 2013. The allowance for credit losses as a percentage of total loans was 1.34% at June 30, 2014, and 1.80% at December 31, 2013. Part of the decrease in the ALLL as a percentage of total loans is primarily due to the inclusion of $82,262,000 from VCB loans that were recorded at fair value in connection with the acquisition and therefore have no related allowance. Excluding these VCB loans from the calculation, the allowance for credit losses to total gross loans as of June 30, 2014 was 1.58%. The Company believes the allowance for credit losses is adequate to provide for probable incurred losses inherent within the loan portfolio at June 30, 2014.
Total non-performing assets were $4,632,000, or 0.40% of total assets as of June 30, 2014, compared to $7,776,000, or 0.68% of total assets as of December 31, 2013. Total non-performing assets as of June 30, 2013 were $10,267,000 or 1.18% of total assets.
The following provides a reconciliation of the change in non-accrual loans for 2014.
Transfer
to
Addi- Fore-
tions to closed Returns
Balances Non- Colla- to Balances
(In December accrual Net Pay teral - Accrual Charge June 30,
thousands) 31, 2013 Loans Downs OREO Status Offs 2014
------------- -------- ------- ------- -------- ------- ------- --------
Non-accrual
loans:
Commercial
and
industrial $ 335$ 129$ (277) $ -- $ (20)$ (129)$ 38
Real estate 1,935 314 (995) (235) -- (183) 836
Equity loans
and lines
of credit 721 97 (242) -- -- (59) 517
Consumer -- 23 (1) -- -- -- 22
Restructured
loans (non-
accruing):
Commercial
and
industrial 1,192 -- (145) -- -- (1,047) --
Real estate 384 -- (18) -- -- -- 366
Real estate
constructio
n and land
development 1,450 -- (92) -- -- -- 1,358
Equity loans
and lines
of credit 1,565 6 (76) -- -- -- 1,495
Consumer 4 -- -- -- (4) -- --
-------- ------- ------- -------- ------- ------- --------
Total non-
accrual $ 7,586$ 569$(1,846)$ (235)$ (24)$(1,418)$ 4,632
======== ======= ======= ======== ======= ======= ========
The Company's net interest margin (fully tax equivalent basis) was 4.17% for the six months ended June 30, 2014, compared to 3.85% for the six months ended June 30, 2013. The increase in net interest margin in the period-to-period comparison resulted primarily from an increase in the yield on the Company's investment portfolio, the loan portfolio, and a decrease in the Company's cost of funds.
For the six months ended June 30, 2014, the effective yield on total earning assets increased 26 basis points to 4.28% compared to 4.02% for the six months ended June 30, 2013, while the cost of total interest-bearing liabilities decreased 7 basis points to 0.19% compared to 0.26% for the six months ended June 30, 2013. The cost of total deposits decreased 5 basis points to 0.12% for the six months ended June 30, 2014, compared to 0.17% for the six months ended June 30, 2013.
For the six months ended June 30, 2014, the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased by $113,975,000, or 28.39%, compared to the six months ended June 30, 2013.
The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, increased to 2.79% for the six months ended June 30, 2014, compared to 2.47% for the six months ended June 30, 2013. The increase in yield in the Company's investment securities during 2014 resulted primarily from a decrease in the rate of prepayments on mortgage backed securities compared to the same period of 2013. Total average loans, which generally yield higher rates than investment securities, increased $128,458,000, from $394,890,000 for the six months ended June 30, 2013 to $523,348,000 for the six months ended June 30, 2014. The effective yield on average loans increased to 5.80% for the six months ended June 30, 2014, compared to 5.69% for the six months ended June 30, 2013.
Net interest income before the provision for credit losses for the six months ended June 30, 2014 was $20,004,000, compared to $13,723,000 for the six months ended June 30, 2013, an increase of $6,281,000 or 45.77%. Net interest income increased as a result of yield changes, the recovery of $861,000 of foregone interest income from the repayment of loans previously identified as nonaccrual, asset mix changes, and an increase in average earning assets, partially offset by an increase in interest-bearing liabilities, primarily as a result of the VCB acquisition.
Total average assets for the six months ended June 30, 2014 were $1,140,602,000 compared to $874,617,000, for the six months ended June 30, 2013, an increase of $265,985,000 or 30.41%. Total average loans increased $128,458,000, or 32.53% for the six months ended June 30, 2014 compared to the six months ended June 30, 2013. Total average investments, including deposits in other banks and Federal funds sold, increased to $515,443,000 for the six months ended June 30, 2014, from $401,468,000 for the six months ended June 30, 2013, representing an increase of $113,975,000 or 28.39%. Total average deposits increased $255,650,000 or 34.63% to $993,936,000 for the six months ended June 30, 2014, compared to $738,286,000 for the six months ended June 30, 2013. Average interest-bearing deposits increased $133,573,000, or 26.07%, and average non-interest bearing demand deposits increased $122,077,000, or 54.02%, for the six months ended June 30, 2014, compared to the six months ended June 30, 2013. The Company's ratio of average non-interest bearing deposits to total deposits was 35.02% for the six months ended June 30, 2014, compared to 30.61% for the six months ended June 30, 2013.
Non-interest income for the six months ended June 30, 2014 decreased $32,000 to $4,021,000, compared to $4,053,000 for the six months ended June 30, 2013, primarily driven by a decrease of $800,000 in net realized gains on sales and calls of investment securities, and a $190,000 decrease in loan placement fees, partially offset by a $259,000 increase in service charge income, a $220,000 increase in interchange fees, a $97,000 increase in Federal Home Loan Bank dividends, and a $209,000 increase in other income.
Non-interest expense for the six months ended June 30, 2014 increased $3,314,000, or 23.41%, to $17,470,000 compared to $14,156,000 for the six months ended June 30, 2013. The net increase year over year was a result of increases in salaries and employee benefits of $1,888,000, increases in occupancy and equipment expenses of $648,000, increases in data processing expenses of $321,000, increases in Internet banking expenses of $77,000, increases in regulatory assessments of $94,000, increases in ATM/Debit card expenses of $92,000, increases in license and maintenance contracts of $59,000, increases in advertising fees of $86,000, and other non-interest expense increases of $458,000. During the six months ended June 30, 2014, other non-interest expenses included increases of $50,000 in armored courier expenses, $3,000 in legal fees, $41,000 in appraisal fees, $33,000 in postage expenses, $21,000 in personnel expenses, $7,000 in donations, and $16,000 in stationery/supplies expenses, as compared to the same period in 2013.
The Company recorded an income tax expense of $1,646,000 for the six months ended June 30, 2014, compared to $550,000 for the six months ended June 30, 2013. The effective tax rate for the first six months of 2014 was 23.67% compared to 15.19% for the six months ended June 30, 2013. The increase in the effective tax rate during 2014 was primarily due to the loss of the tax credits related to the California enterprise zone program, offset by a slight increase in interest income on non-taxable investment securities. Beginning January 1, 2014, tax credits and deductions related to the California enterprise zone program were reduced due to legislative changes affecting the program.
Quarter Ended June 30, 2014
For the quarter ended June 30, 2014, the Company reported unaudited consolidated net income of $2,693,000 and diluted earnings per common share of $0.24, compared to $1,287,000 and $0.12 per diluted share for the same period in 2013. Net income for the immediately trailing quarter ended March 31, 2014 was $2,616,000, or $0.24 per diluted common share.
The increase in net income during the second quarter of 2014 compared to the same period in 2013 was primarily driven by an increase in net interest income and a reverse provision for credit losses of $400,000, partially offset by increases in non-interest expense.
Annualized return on average equity (ROE) for the second quarter of 2014 was 8.27%, compared to 4.45% for the same period of 2013. The increase in ROE reflects an increase in net income notwithstanding an increase in capital from the retention of earnings net of dividends paid and improvement in unrealized gains on available-for-sale securities recorded in accumulated other comprehensive income (AOCI). Annualized return on average assets (ROA) was 0.93% for the second quarter of 2014 compared to 0.59% for the same period in 2013. This increase is due to an increase in net income, notwithstanding an increase in average assets.
In comparing the second quarter of 2014 to the second quarter of 2013, average total loans increased by $133,171,000, or 33.37%. During the second quarter of 2014, the Company recorded $614,000 in net loan charge-offs compared to $112,000 in net loan recoveries for the same period in 2013. The net charge-off ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.46% for the quarter ended June 30, 2014 compared to (0.11)% for the quarter ended June 30, 2013.
The following provides a reconciliation of the change in non-accrual loans for the quarter ended June 30, 2014.
Transfer
to
Addi- Fore-
tions to closed Returns
Balances Non- Net Colla to Balances
(Dollars in March accrual Pay teral - Accrual Charge June 30,
thousands) 31, 2014 Loans Downs OREO Status Offs 2014
--------------- -------- ------- ------ -------- ------- ------ --------
Non-accrual
loans:
Commercial and
industrial $ 76$ 129$ (18) $ -- $ (20)$ (129)$ 38
Real estate $ 965$ 314$ (25)$ (235) $ -- $ (183)$ 836
Equity loans
and lines of
credit 422 97 (2) -- -- -- 517
Consumer -- 23 (1) -- -- -- 22
Restructured
loans (non-
accruing):
Commercial and
industrial 215 -- (91) -- -- (124) --
Real estate 375 -- (9) -- -- -- 366
Real estate
construction
and land
development 1,401 -- (43) -- -- -- 1,358
Equity loans
and lines of
credit 1,528 6 (39) -- -- -- 1,495
Consumer -- -- -- -- -- -- --
-------- ------- ------ -------- ------- ------ --------
Total non-
accrual $ 4,982$ 569$ (228)$ (235)$ (20)$ (436)$ 4,632
======== ======= ====== ======== ======= ====== ========
The Company recorded $235,000 in OREO during the quarter ended June 30, 2014 which was disposed of prior to the end of the quarter.
Average total deposits for the second quarter of 2014 increased $261,866,000, or 35.35%, to $1,002,725,000, compared to $740,859,000 for the same period of 2013.
The Company's net interest margin (fully tax equivalent basis) increased 25 basis points to 4.09% for the quarter ended June 30, 2014, compared to 3.84% and 4.24% for the quarters ended June 30, 2013 and March 31, 2014, respectively. Net interest income, before provision for credit losses, increased $3,027,000, or 44.01%, to $9,905,000 for the second quarter of 2014, compared to $6,878,000 for the same period in 2013. The increases in net interest margin and in net interest income in the period-to-period comparison resulted primarily from an increase in the yield on investment securities and a decrease in the Company's cost of funds. Over the same periods, the cost of total deposits decreased 6 basis points to 0.11% compared to 0.17% in 2013.
For the quarter ended June 30, 2014, the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased by $114,098,000, or 28.39%, compared to the quarter ended June 30, 2013 and increased by $1,139,000, or 0.22%, compared to the quarter ended March 31, 2014.
The effective yield on average investment securities including interest earning deposits in other banks and Federal funds sold, increased to 2.83% for the quarter ended June 30, 2014, compared to 2.49% for the quarter ended June 30, 2013 and 2.74% for the quarter ended March 31, 2014. Total average loans, which generally yield higher rates than investment securities, increased by $133,171,000 to $532,230,000 for the quarter ended June 30, 2014, from $399,059,000 for the quarter ended June 30, 2013 and increased by $17,851,000 from $514,379,000 for the quarter ended March 31, 2014. The effective yield on average loans decreased to 5.54% for the quarter ended June 30, 2014, compared to 5.61% and 6.08% for the quarters ended June 30, 2013 and March 31, 2014, respectively.
Total average assets for the quarter ended June 30, 2014 were $1,152,451,000 compared to $878,766,000 for the quarter ended June 30, 2013 and $1,128,628,000 for the quarter ended March 31, 2014, an increase of $273,685,000 and $23,823,000, or 31.14% and 2.11%, respectively.
Total average deposits increased $261,866,000, or 35.35%, to $1,002,725,000 for the quarter ended June 30, 2014, compared to $740,859,000 for the quarter ended June 30, 2013. Total average deposits increased $17,676,000, or 1.79%, for the quarter ended June 30, 2014, compared to $985,049,000 for the quarter ended March 31, 2014. The Company's ratio of average non-interest bearing deposits to total deposits was 34.66% for the quarter ended June 30, 2014, compared to 30.53% and 35.38% for the quarters ended June 30, 2013 and March 31, 2014, respectively.
Non-interest income increased $217,000, or 11.88%, to $2,044,000 for the second quarter of 2014 compared to $1,827,000 for the same period in 2013. The second quarter of 2014 non-interest income included $64,000 in net realized gains on sales and calls of investment securities compared to $320,000 for the same period in 2013. For the quarter ended June 30, 2014, service charge income increased $149,000 and interchange fee income increased $129,000, compared to the same period in 2013. Loan placement fees decreased $83,000 during the second quarter of 2014, compared to the same period in 2013. Non-interest income for the quarter ended June 30, 2014 increased $67,000 to $2,044,000, compared to $1,977,000 for the quarter ended March 31, 2014.
Non-interest expense for the quarter ended June 30, 2014 increased $1,511,000, or 20.92%, to $8,734,000 compared to $7,223,000 for the quarter ended June 30, 2013. The net increase quarter over quarter was a result of increases in salaries and employee benefits of $871,000, increases in occupancy and equipment of $419,000, increases in data processing expenses of $174,000, partially offset by a decrease in acquisition and integration expenses of $380,000, and decreases in consulting and legal fees. Advertising expenses, audit and accounting fees, ATM/debit card expenses and Internet banking expenses also increased comparing the second quarter of 2014 to the same period in 2013. Non-interest expense for the quarter ended June 30, 2014 decreased $2,000 compared to $8,736,000 for the trailing quarter ended March 31, 2014.
"We are happy to report a very good second quarter in all key financial and asset quality metrics compared to the same quarter in 2013. Additionally, we are pleased that investors are seeing the benefits of the focused efforts of our team, who strive for consistent earnings and returns to our shareholders," stated Daniel J. Doyle, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank.
"The July 1, 2013 merger with Visalia Community Bank has proved valuable to our overall growth this past year. While the Central Valley of California is showing signs of growth, albeit slower than we would like, we are happy to report that the organic growth in average gross loans in the 'legacy' bank increased slightly more than 10% over the same period of 2013 and the average deposits increased 12.40% in the 'legacy' bank for that same period. Net income has been hindered in the current low interest rate environment for loans and securities and there is still slow loan growth in consumer credit and commercial and industrial loans. Loan increases have primarily come from our agriculture annual lines of credit usage, agriculture related business and commercial real estate. The drought in California will have some impact on certain agricultural yields this year due to less acreage planted, coupled with the cost of water and dependence on pumping ground water for our agricultural borrowers. While we believe our agricultural borrowers are maximizing their resources for this crop year, water storage continues to be a long term problem and may become a more critical issue in the upcoming years if improved water solutions are not determined and increased rain and snow pack is not realized," continued Doyle.
"Our succession planning is on schedule and going well with the addition of Jim Ford as President in the first quarter and the recent restructuring of titles and responsibilities within the existing Executive and Senior Management team. The remainder of 2014 looks promising with opportunities for our Bank, our valued customers and team members, and for our shareholders," 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 now operates 21 full service offices in Clovis, Exeter, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Sacramento, Stockton, Tracy, and Visalia, 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, F. T. "Tommy" Elliott, IV, Steven D. McDonald, Louis McMurray, William S. Smittcamp, Joseph B. Weirick. Wanda L. Rogers 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, 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, 2013. 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) 2014 2013
------------- -------------
(Unaudited)
ASSETS
Cash and due from banks $ 30,504$ 25,878
Interest-earning deposits in other banks 36,096 85,956
Federal funds sold 295 218
------------- -------------
Total cash and cash equivalents 66,895 112,052
Available-for-sale investment securities
(Amortized cost of $434,162 at June 30, 2014
and $447,108 at December 31, 2013) 441,223 443,224
Held-to-maturity investment securities (Fair
value of $33,666 at June 30, 2014) 31,711 --
Loans, less allowance for credit losses of
$7,307 at June 30, 2014 and $9,208 at December
31, 2013 537,848 503,149
Bank premises and equipment, net 10,540 10,541
Other real estate owned -- 190
Bank owned life insurance 20,647 19,443
Federal Home Loan Bank stock 4,791 4,499
Goodwill 29,917 29,917
Core deposit intangibles 1,512 1,680
Accrued interest receivable and other assets 15,604 20,940
------------- -------------
Total assets $ 1,160,688$ 1,145,635
============= =============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 351,341$ 356,392
Interest bearing 657,871 647,751
------------- -------------
Total deposits 1,009,212 1,004,143
Junior subordinated deferrable interest
debentures 5,155 5,155
Accrued interest payable and other liabilities 15,390 16,294
------------- -------------
Total liabilities 1,029,757 1,025,592
------------- -------------
Shareholders' equity:
Common stock, no par value; 80,000,000 shares
authorized; issued and outstanding: 10,927,925
at June 30, 2014 and 10,914,680 at December
31, 2013 54,066 53,981
Retained earnings 72,565 68,348
Accumulated other comprehensive income (loss),
net of tax 4,300 (2,286)
------------- -------------
Total shareholders' equity 130,931 120,043
------------- -------------
Total liabilities and shareholders'
equity $ 1,160,688$ 1,145,635
============= =============
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) 2014 2013 2014 2013
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
INTEREST INCOME:
Interest and fees on
loans $ 7,278$ 5,435$ 14,896$ 10,846
Interest on deposits in
other banks 44 29 97 59
Interest and dividends
on investment
securities:
Taxable 1,439 352 2,786 753
Exempt from Federal
income taxes 1,434 1,398 2,836 2,736
----------- ----------- ----------- -----------
Total interest
income 10,195 7,214 20,615 14,394
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Interest on deposits 267 312 564 605
Interest on junior
subordinated deferrable
interest debentures 23 24 47 49
Other -- -- -- 17
----------- ----------- ----------- -----------
Total interest
expense 290 336 611 671
----------- ----------- ----------- -----------
Net interest income
before provision for
credit losses 9,905 6,878 20,004 13,723
PROVISION FOR CREDIT
LOSSES (400) -- (400) --
----------- ----------- ----------- -----------
Net interest income
after provision for
credit losses 10,305 6,878 20,404 13,723
----------- ----------- ----------- -----------
NON-INTEREST INCOME:
Service charges 822 673 1,630 1,371
Appreciation in cash
surrender value of bank
owned life insurance 157 97 303 193
Interchange fees 342 213 629 409
Loan placement fees 131 214 189 379
Net (loss) gain on
disposal of other real
estate owned (1) -- 63 --
Net realized gains on
sales and calls of
investment securities 64 320 333 1,133
Federal Home Loan Bank
dividends 75 32 151 54
Other income 454 278 723 514
----------- ----------- ----------- -----------
Total non-interest
income 2,044 1,827 4,021 4,053
----------- ----------- ----------- -----------
NON-INTEREST EXPENSES:
Salaries and employee
benefits 4,845 3,974 9,756 7,868
Occupancy and equipment 1,320 901 2,450 1,802
Data processing expense 463 289 913 592
ATM/Debit card expenses 160 109 310 218
License & maintenance
contracts 128 100 258 199
Regulatory assessments 193 154 391 297
Advertising 153 80 308 222
Audit and accounting
fees 175 136 307 271
Internet banking
expenses 96 76 225 148
Acquisition and
integration -- 380 -- 513
Amortization of core
deposit intangibles 84 50 168 100
Other expense 1,117 974 2,384 1,926
----------- ----------- ----------- -----------
Total non-interest
expenses 8,734 7,223 17,470 14,156
----------- ----------- ----------- -----------
Income before
provision for
income taxes 3,615 1,482 6,955 3,620
PROVISION FOR INCOME TAXES 922 195 1,646 550
----------- ----------- ----------- -----------
Net income $ 2,693$ 1,287$ 5,309$ 3,070
=========== =========== =========== ===========
Preferred stock dividends
and accretion -- 88 -- 175
----------- ----------- ----------- -----------
Net income available
to common
shareholders $ 2,693$ 1,199$ 5,309$ 2,895
=========== =========== =========== ===========
Net income per common
share:
Basic earnings per
common share $ 0.25$ 0.13$ 0.49$ 0.30
=========== =========== =========== ===========
Weighted average common
shares used in basic
computation 10,918,065 9,587,376 10,917,010 9,573,257
=========== =========== =========== ===========
Diluted earnings per
common share $ 0.24$ 0.12$ 0.48$ 0.30
=========== =========== =========== ===========
Weighted average common
shares used in diluted
computation 10,999,663 9,644,938 10,996,572 9,629,771
=========== =========== =========== ===========
Cash dividends per common
share $ 0.05$ 0.05$ 0.10$ 0.10
=========== =========== =========== ===========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the three Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
months ended 2014 2014 2013 2013 2013
----------- ----------- ----------- ----------- -----------
(In thousands,
except share
and per share
amounts)
Net interest
income $ 9,905$ 10,099$ 9,192$ 10,536$ 6,878
Provision for
credit losses (400) -- -- -- --
----------- ----------- ----------- ----------- -----------
Net interest
income after
provision for
credit losses 10,305 10,099 9,192 10,536 6,878
Total non-
interest
income 2,044 1,977 1,965 1,813 1,827
Total non-
interest
expense 8,734 8,736 8,538 8,991 7,223
Provision for
income taxes 922 724 408 389 195
----------- ----------- ----------- ----------- -----------
Net income $ 2,693$ 2,616$ 2,211$ 2,969$ 1,287
=========== =========== =========== =========== ===========
Net income
available to
common
shareholders $ 2,693$ 2,616$ 2,123$ 2,882$ 1,199
=========== =========== =========== =========== ===========
Basic earnings
per common
share $ 0.25$ 0.24$ 0.19$ 0.26$ 0.13
=========== =========== =========== =========== ===========
Weighted
average common
shares used in
basic
computation 10,918,065 10,915,945 10,914,296 10,899,086 9,587,376
=========== =========== =========== =========== ===========
Diluted
earnings per
common share $ 0.24$ 0.24$ 0.19$ 0.26$ 0.12
=========== =========== =========== =========== ===========
Weighted
average common
shares used in
diluted
computation 10,999,663 10,998,630 10,980,390 10,958,811 9,644,938
=========== =========== =========== =========== ===========
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
As of and for the three Jun. 30, Mar. 31, Dec. 31, Sep. 30, Jun. 30,
months ended 2014 2014 2013 2013 2013
--------- --------- --------- --------- ---------
(Dollars in thousands,
except per share
amounts)
Allowance for credit
losses to total loans 1.34% 1.62% 1.80% 1.89% 2.37%
Nonperforming assets to
total assets 0.40% 0.44% 0.68% 0.75% 1.18%
Total nonperforming
assets $ 4,632$ 4,982$ 7,776$ 8,146$ 10,267
Total nonaccrual loans $ 4,632$ 4,982$ 7,586$ 8,022$ 10,267
Net loan charge-offs
(recoveries) $ 614$ 887$ 524$ (131)$ (112)
Net charge-offs
(recoveries) to average
loans (annualized) 0.46% 0.69% 0.41% (0.10)% (0.11)%
Book value per share $ 11.98$ 11.55$ 11.00$ 10.98$ 10.83
Tangible book value per
share $ 9.11$ 8.66$ 8.10$ 8.09$ 8.34
Tangible common equity $ 99,502$ 94,655$ 88,446$ 88,333$ 80,482
Interest and dividends
on investment
securities exempt from
Federal income taxes $ 1,434$ 1,402$ 1,449$ 1,593$ 1,398
Net interest margin
(calculated on a fully
tax equivalent basis)
(1) 4.09% 4.24% 3.92% 4.66% 3.84%
Return on average assets
(2) 0.93% 0.93% 0.79% 1.11% 0.59%
Return on average equity
(2) 8.27% 8.37% 7.04% 9.87% 4.45%
Loan to deposit ratio 54.02% 51.91% 51.02% 54.59% 54.84%
Tier 1 leverage -
Bancorp 8.93% 8.63% 8.14% 8.86% 10.41%
Tier 1 leverage - Bank 8.89% 8.59% 8.09% 8.78% 10.24%
Tier 1 risk-based
capital - Bancorp 14.73% 14.67% 13.88% 14.41% 17.35%
Tier 1 risk-based
capital - Bank 14.68% 14.60% 13.79% 14.23% 17.06%
Total risk-based capital
- Bancorp 15.81% 15.92% 15.13% 15.67% 18.61%
Total risk based capital
- Bank 15.76% 15.85% 15.04% 15.48% 18.32%
(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) 2014 2013 2014 2013
---------- --------- ---------- ---------
Federal funds sold $ 273$ 219$ 256$ 273
Interest-bearing deposits in
other banks 53,013 28,527 60,843 29,881
Investments 462,724 373,166 454,344 371,314
Loans (1) 527,177 388,431 517,500 384,277
Federal Home Loan Bank stock 4,714 3,826 4,607 3,838
---------- --------- ---------- ---------
Earning assets 1,047,901 794,169 1,037,550 789,583
Allowance for credit losses (8,356) (9,524) (8,787) (9,763)
Non-accrual loans 5,053 10,628 5,848 10,613
Other real estate owned 114 -- 73 --
Other non-earning assets 107,739 83,493 105,918 84,184
---------- --------- ---------- ---------
Total assets $1,152,451$ 878,766$1,140,602$ 874,617
========== ========= ========== =========
Interest bearing deposits $ 655,150$ 514,702$ 645,875$ 512,302
Other borrowings 5,155 5,226 5,155 6,143
---------- --------- ---------- ---------
Total interest-bearing
liabilities 660,305 519,928 651,030 518,445
---------- --------- ---------- ---------
Non-interest bearing demand
deposits 347,575 226,157 348,061 225,984
Non-interest bearing
liabilities 14,368 17,008 13,928 13,623
---------- --------- ---------- ---------
Total liabilities 1,022,248 763,093 1,013,019 758,052
---------- --------- ---------- ---------
Total equity 130,203 115,673 127,583 116,565
---------- --------- ---------- ---------
Total liabilities and equity $1,152,451$ 878,766$1,140,602$ 874,617
========== ========= ========== =========
AVERAGE RATES
---------------------------------------------
Federal funds sold 0.25% 0.25% 0.25% 0.25%
Interest-earning deposits in
other banks 0.33% 0.40% 0.32% 0.40%
Investments 3.12% 2.65% 3.12% 2.64%
Loans 5.54% 5.61% 5.80% 5.69%
Earning assets 4.20% 4.01% 4.28% 4.02%
Interest-bearing deposits 0.16% 0.24% 0.18% 0.24%
Other borrowings 1.79% 1.84% 1.84% 2.17%
Total interest-bearing
liabilities 0.18% 0.26% 0.19% 0.26%
Net interest margin
(calculated on a fully tax
equivalent basis) (2) 4.09% 3.84% 4.17% 3.85%
(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 totaled $739 and
$720 for the three months ended June 30, 2014 and 2013, respectively.
The Federal tax benefits relating to income earned on municipal bonds
totaled $1,460 and $1,410 for the six months ended June 30, 2014 and
2013, respectively.
Source: Central Valley Community Bancorp