FRESNO, Calif.--(BUSINESS WIRE)--
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 $10,256,000,
and diluted earnings per common share of $0.74 for the six months ended
June 30, 2018, compared to $9,198,000 and $0.75 per diluted common share
for the six months ended June 30, 2017.
SECOND QUARTER FINANCIAL HIGHLIGHTS
-
Net loans increased $34.0 million or 3.81%, and total assets decreased
$71.8 million or 4.32% at June 30, 2018 compared to December 31, 2017.
-
Total deposits decreased 7.12% to $1.32 billion at June 30, 2018
compared to December 31, 2017.
-
Total cost of deposits remain at record low levels at 0.08% at June
30, 2018 and 2017.
-
Capital positions remain strong at June 30, 2018 with a 10.59% Tier 1
Leverage Ratio; a 14.47% Common Equity Tier 1 Ratio; a 14.92% Tier 1
Risk-Based Capital Ratio; and a 15.77% Total Risk-Based Capital Ratio.
-
The Company sold its credit card portfolio during the second quarter
of 2018, recognizing a net gain on the sale of $578,000.
-
The Company consolidated two banking offices into branches currently
serving the same communities - one in Visalia and one in Folsom during
the second quarter of 2018. The Company will close its Tracy office
and sell the majority of the customer deposits in Tracy to another
financial institution during the third quarter of 2018. The Company
incurred approximately $257,000 in consolidation/closing costs during
the quarter.
“The second quarter marks another successful quarter for our Company.
Loans continued to grow and net income was and should remain positively
affected by strategic branch and operational initiatives. As the economy
continues to gain momentum in our market area, we are positioned to grow
with our clients and develop new relationships, particularly in our more
recent acquisition markets,” stated James M. Ford, President & CEO of
Central Valley Community Bank and Central Valley Community Bancorp.
Net income for the six months ended June 30, 2018 increased 11.50% in
2018 compared to 2017, primarily driven by an increase in net interest
income and a decrease in provision for income taxes, partially offset by
a decrease in net realized gains on sales and calls of investment
securities, and an increase in non-interest expense compared to the six
months ended June 30, 2017. During the six months ended June 30, 2018,
the Company recorded a $50,000 provision for credit losses, compared to
a $250,000 reverse provision during the six months ended June 30, 2017.
Net interest income before the provision for credit losses for the six
months ended June 30, 2018 was $30,823,000, compared to $27,094,000 for
the six months ended June 30, 2017, an increase of $3,729,000 or 13.76%.
The impact to interest income from the accretion of the loan marks on
acquired loans was $590,000 and $617,000 for the six months ended June
30, 2018 and 2017, respectively. In addition, net interest income before
the provision for credit losses for the six months ended June 30, 2018
was benefited by approximately $175,000 in nonrecurring income from
prepayment penalties and payoff of loans previously on nonaccrual
status, as compared to a $1,118,000 net benefit for the six months ended
June 30, 2017. Excluding these reversals and benefits, net interest
income for the six months ended June 30, 2018 increased by $4,672,000
compared to the six months ended June 30, 2017. Approximately,
$2,160,000 of the increase in net interest income was attributed to the
Folsom Lake Bank (FLB) acquisition completed in 2017, and approximately
$2,512,000 from our continued organic growth.
During the six months ended June 30, 2018, the Company’s shareholders’
equity increased $1,625,000, or 0.78%, compared to December 31, 2017.
The increase in shareholders’ equity was driven by the retention of
earnings, net of dividends paid, offset by a decrease in net unrealized
gains on available-for-sale (AFS) securities recorded, net of estimated
taxes, in accumulated other comprehensive income (AOCI).
Return on average equity (ROE) for the six months ended June 30, 2018
was 9.84%, compared to 10.81% for the six months ended June 30, 2017.
The decrease in ROE was primarily due to the increase in average
shareholders’ equity. The Company declared and paid $0.14 and $0.12 per
share in cash dividends to holders of common stock during the six months
ended June 30, 2018 and 2017, respectively. Annualized return on average
assets (ROA) was 1.28% for the six months ended June 30, 2018 and 1.27%
for the six months ended June 30, 2017. During the six months ended
June 30, 2018, the Company’s total assets decreased 4.32%, and total
liabilities decreased 5.05%, compared to December 31, 2017.
Non-performing assets increased by $1,147,000, or 38.95%, to $4,092,000
at June 30, 2018, compared to $2,945,000 at December 31, 2017. During
the six months ended June 30, 2018, the Company recorded $92,000 in net
loan recoveries, compared to $221,000 in net recoveries for the six
months June 30, 2017. The net charge-off (recovery) ratio, which
reflects annualized net recoveries to average loans, was (0.02)% for the
six months ended June 30, 2018, compared to (0.06)% for the same period
in 2017. Total non-performing assets were 0.26% and 0.18% of total
assets as of June 30, 2018 and December 31, 2017, respectively.
At June 30, 2018, the allowance for credit losses was $8,920,000,
compared to $8,778,000 at December 31, 2017, a net increase of $142,000
reflecting the net recoveries and provision during the period. The
allowance for credit losses as a percentage of total loans was 0.95% at
June 30, 2018, and 0.97% at December 31, 2017. Total loans includes
loans acquired in the acquisitions of FLB on October 1, 2017, Sierra
Vista Bank on October 1, 2016 and Visalia Community Bank on July 1, 2013
that, at their respective acquisition dates, were recorded at fair value
and did not have a related allowance for credit losses. The recorded
value of acquired loans totaled $216,419,000 at June 30, 2018 and
$243,712,000 at December 31, 2017. Excluding these acquired loans from
the calculation, the allowance for credit losses to total gross loans
was 1.24% and 1.34% as of June 30, 2018 and December 31, 2017,
respectively, and general reserves associated with non-impaired loans to
total non-impaired loans was 1.23% and 1.34%, respectively. The Company
believes the allowance for credit losses is adequate to provide for
probable incurred credit losses within the loan portfolio at June 30,
2018.
The Company’s net interest margin (fully tax equivalent basis) was 4.29%
for the six months ended June 30, 2018, compared to 4.41% for the six
months ended June 30, 2017. The decrease in net interest margin in the
period-to-period comparison resulted primarily from the decrease in the
effective yield on average investment securities, and the decrease in
the yield on the Company’s loan portfolio, offset by the increase in the
effective yield on interest earning deposits in other banks and Federal
Funds sold. Net interest income before the provision for credit losses
for the six months ended June 30, 2018 was benefited by approximately
$175,000 in nonrecurring income from prepayment penalties and payoff of
loans previously on nonaccrual status, as compared to a $1,118,000 net
benefit for the six months ended June 30, 2017.
For the six months ended June 30, 2018, the effective yield on average
total earning assets decreased 10 basis points to 4.39% compared to
4.49% for the six months June 30, 2017, while the cost of average total
interest-bearing liabilities increased slightly to 0.17% for the quarter
ended June 30, 2018 as compared to 0.14% for the quarter ended June 30,
2017. Over the same periods, the cost of average total deposits
decreased to 0.07% for the six months ended June 30, 2018 compared to
0.08% for the same period in 2017.
For the six months ended June 30, 2018, the Company’s average investment
securities, including interest-earning deposits in other banks and
Federal funds sold, totaled $555,009,000, a decrease of $12,984,000, or
2.29%, compared to the six months ended June 30, 2017. The effective
yield on average investment securities, including interest earning
deposits in other banks and Federal funds sold, decreased to 2.72% for
the six months ended June 30, 2018, compared to 3.10% for the six months
ended June 30, 2017.
Total average loans (including nonaccrual), which generally yield higher
rates than investment securities, increased $155,125,000, from
$755,505,000 for the six months ended June 30, 2017 to $910,630,000 for
the six months June 30, 2018. The increase in loans was partially offset
by the sale of the Company’s credit card portfolio of approximately
$2,504,000 during the second quarter of 2018. The year-over-year loan
growth compared to the prior year was primarily due to the acquisition
of FLB in 2017. The effective yield on average loans decreased to 5.46%
for the six months ended June 30, 2018, compared to 5.59% for the six
months June 30, 2017.
Total average assets for the six months ended June 30, 2018 was
$1,606,475,000 compared to $1,446,781,000 for the six months ended
June 30, 2017, an increase of $159,694,000 or 11.04%. During the six
months ended June 30, 2018 and 2017, the average loan-to-deposit ratio
was 66.94% and 60.26%, respectively. Total average deposits increased
$106,610,000 or 8.50% to $1,360,319,000 for the six months ended
June 30, 2018, compared to $1,253,709,000 for the six months ended
June 30, 2017. Average interest-bearing deposits increased $28,138,000,
or 3.60%, and average non-interest bearing demand deposits increased
$78,472,000, or 16.65%, for the six months ended June 30, 2018, compared
to the six months ended June 30, 2017. The Company’s ratio of average
non-interest bearing deposits to total deposits was 40.42% for the six
months June 30, 2018, compared to 37.60% for the six months June 30,
2017. The year over year growth was primarily driven by the FLB
acquisition which closed on October 1, 2017.
Non-interest income for the six months ended June 30, 2018 decreased by
$885,000 to $5,457,000, compared to $6,342,000 for the six months ended
June 30, 2017, primarily driven by a decrease of $1,742,000 in net
realized gains on sales and calls of investment securities. A net gain
of $578,000 on the sale of the Company’s credit card portfolio, an
increase in loan placement fees of $92,000, an increase of $136,000 in
other income, and a $15,000 increase in Federal Home Loan Bank dividends
were offset by a $39,000 decrease in service charge income.
Non-interest expense for the six months ended June 30, 2018 increased
$1,965,000, or 9.40%, to $22,867,000 compared to $20,902,000 for the six
months ended June 30, 2017. The net increase year over year was
primarily attributable to the FLB acquisition, which resulted in
increases in salaries and employee benefits of $1,373,000, occupancy and
equipment expenses of $724,000, offset by decrease in acquisition and
integration expenses of $238,000, and a decrease of $134,000 in
directors’ expenses in 2018 compared to 2017.
The Company recorded an income tax provision of $3,107,000 for the six
months June 30, 2018, compared to $3,586,000 for the six months June 30,
2017. The effective tax rate for the six months ended June 30, 2018 was
23.25% compared to 28.05% for the six months ended June 30, 2017. The
signing of the Tax Cuts and Jobs Act on December 22, 2017 changed the
Company’s federal income tax rate from 35% to 21% effective as of the
beginning of 2018.
Quarter Ended June 30, 2018
For the quarter ended June 30, 2018, the Company reported unaudited
consolidated net income of $4,965,000 and earnings per diluted common
share of $0.36, compared to consolidated net income of $4,948,000 and
$0.40 per diluted share for the same period in 2017. The increase in net
income during the second quarter of 2018 compared to the same period in
2017 was primarily due to an increase in net interest income of
$1,611,000 and a decrease in the provision for income taxes of $726,000,
partially offset by a decrease in non-interest income of $1,410,000 and
an increase in total non-interest expenses of $710,000. The effective
tax rate decreased to 24.01% from 31.69% for the quarters ended June 30,
2018 and June 30, 2017, respectively, due to the prospective change in
the marginal 2018 federal tax rate from 35% to 21%. Net income for the
immediately trailing quarter ended March 31, 2018 was $5,291,000, or
$0.38 per diluted common share.
Annualized return on average equity (ROE) for the second quarter of 2018
was 9.53%, compared to 11.41% for the same period of 2017. The decrease
in ROE reflects an increase in shareholders’ equity, offset by a slight
increase in net income. Annualized return on average assets (ROA) was
1.25% for the second quarter of 2018 compared to 1.37% for the same
period in 2017. This decrease is due to an increase in average assets,
offset by a slight increase in net income.
In comparing the second quarter of 2018 to the second quarter of 2017,
average total loans increased by $153,058,000, or 20.00%. The majority
of the loan growth was due to the FLB acquisition. During the second
quarter of 2018, the Company recorded net loan recoveries of $82,000
compared to $233,000 for the same period in 2017. The net charge-off
(recovery) ratio, which reflects annualized net charge-offs to average
loans, was (0.04)% for the quarter ended June 30, 2018 compared to
(0.12)% for the quarter ended June 30, 2017.
Average total deposits for the second quarter of 2018 increased
$88,810,000 or 7.12% to $1,336,250,000 compared to $1,247,440,000 for
the same period of 2017, primarily due to the FLB acquisition. In
comparing the second quarter of 2018 to the second quarter of 2017,
average borrowed funds increased $19,312,000 or 358.49% to $24,699,000
compared to $5,387,000.
The Company’s net interest margin (fully tax equivalent basis) was 4.33%
for the quarter ended June 30, 2018, compared to 4.47% for the quarter
ended June 30, 2017. Net interest income, before provision for credit
losses, increased $1,611,000, or 11.69%, to $15,397,000 for the second
quarter of 2018, compared to $13,786,000 for the same period in 2017.
The accretion of the loan marks on acquired loans increased interest
income by $332,000 and $219,000 during the quarters ended June 30, 2018
and 2017, respectively. Net interest income during the second quarters
of 2018 and 2017 benefited by approximately $196,000 and $680,000,
respectively, from prepayment penalties and payoff of loans previously
on nonaccrual status. The net interest margin period-to-period
comparisons were impacted by a decrease in the yield on the average
investment securities and the loan portfolio. Over the same periods, the
cost of total deposits remained at 0.08%.
For the quarter ended June 30, 2018, the Company’s average investment
securities, including interest-earning deposits in other banks and
Federal funds sold, decreased by $20,986,000, or 3.79%, compared to the
quarter ended June 30, 2017, and decreased by $45,256,000, or 7.83%,
compared to the quarter ended March 31, 2018.
The effective yield on average investment securities, including interest
earning deposits in other banks and Federal funds sold, decreased to
2.67% for the quarter ended June 30, 2018, compared to 3.04% for the
quarter ended June 30, 2017 and 2.77% for the quarter ended March 31,
2018. Total average loans, which generally yield higher rates than
investment securities, increased by $153,058,000 to $918,271,000 for the
quarter ended June 30, 2018, from $765,213,000 for the quarter ended
June 30, 2017 and increased by $15,367,000 from $902,904,000 for the
quarter ended March 31, 2018. The effective yield on average loans was
5.49% for the quarter ended June 30, 2018, compared to 5.67% and 5.42%
for the quarters ended June 30, 2017 and March 31, 2018, respectively.
Total average assets for the quarter ended June 30, 2018 were
$1,588,644,000 compared to $1,443,074,000 for the quarter ended June 30,
2017 and $1,624,504,000 for the quarter ended March 31, 2018, an
increase of $145,570,000 and a decrease of $35,860,000, or 10.09% and
(2.21)%, respectively.
Total average deposits increased $88,810,000, or 7.12%, to
$1,336,250,000 for the quarter ended June 30, 2018, compared to
$1,247,440,000 for the quarter ended June 30, 2017. Total average
deposits decreased $48,403,000, or 3.50%, for the quarter ended June 30,
2018, compared to $1,384,653,000 for the quarter ended March 31, 2018.
The Company’s ratio of average non-interest bearing deposits to total
deposits was 40.85% for the quarter ended June 30, 2018, compared to
37.57% and 40.01% for the quarters ended June 30, 2017 and March 31,
2018, respectively.
Non-interest income decreased $1,410,000, or 34.42%, to $2,686,000 for
the second quarter of 2018 compared to $4,096,000 for the same period in
2017. For the quarter ended June 30, 2018, non-interest income included
$82,000 net realized gains on sales and calls of investment securities
compared to $2,157,000 for the same period in 2017, a $2,075,000
decrease. During the second quarter 2018, the Company recognized a
$578,000 gain on the sale of its credit card portfolio. In addition, the
second quarter 2018 service charge income decreased $103,000, offset by
an increase in FHLB dividends of $22,000, an increase in loan placement
fees of $17,000, and an increase of $7,000 in interchange fees compared
to the same period in 2017. Non-interest income for the quarter ended
June 30, 2018 decreased by $85,000 to $2,686,000, compared to $2,771,000
for the quarter ended March 31, 2018. The decrease compared to the
trailing quarter was primarily due to a $733,000 decrease in net
realized gains on sales and calls of investment securities, a $29,000
decrease in service charges, and a $3,000 decrease in FHLB dividends,
partially offset by the $578,000 gain on sale of the credit card
portfolio, and a $55,000 increase in other income.
Non-interest expense for the quarter ended June 30, 2018 increased
$710,000, or 6.58%, to $11,499,000 compared to $10,789,000 for the
quarter ended June 30, 2017. The net increase quarter over quarter was a
result of an increase in salaries and employee benefits of $812,000, an
increase in occupancy and equipment expenses of $366,000, an increase of
$46,000 in amortization of core deposit intangibles, an increase of
$28,000 in advertising expenses, and an increase of $14,000 in
regulatory assessments, partially offset by a decrease in acquisition
and integration expenses of $455,000, a decrease in data processing
expenses of $49,000, a $63,000 decrease in professional services, and a
$34,000 decrease in license and maintenance contract expense.
Non-interest expense for the quarter ended June 30, 2018 increased by
$131,000 compared to $11,368,000 for the trailing quarter ended
March 31, 2018. The increase compared to the trailing quarter was
primarily due to an increase in salaries and employee benefits of
$417,000, an increase in occupancy and equipment expense of $40,000, an
increase of $43,000 in directors’ expenses, and a $10,000 increase in
license and maintenance contracts, partially offset by a $217,000
decrease in acquisition and integration expenses, a $110,000 decrease in
data processing, and a $75,000 decrease in professional services.
The Company recorded an income tax provision of $1,569,000 for the
quarter ended June 30, 2018, compared to $2,295,000 for the quarter
ended June 30, 2017. The effective tax rate for the quarter ended
June 30, 2018 was 24.01% compared to 31.69% for the same period in 2017.
With the Tax Cuts and Jobs Act which was signed into law on December 22,
2017, the Company’s federal income tax rate changed from 35% to 21%
effective as of the beginning of 2018. The slight decrease in the
effective tax rate was the result of the change in the federal rate
offset by a sizable decrease in tax exempt interest.
Subsequent to the end of the quarter, on July 12, 2018, the Company
closed its Tracy branch office and sold deposits with a balance of
$8,205,000, to BAC Community Bank. The Company expects to record a gain
on the transaction of $85,000, all of which will be included in the
third quarter 2018 results of operations.
Central Valley Community Bancorp trades on the NASDAQ stock exchange
under the symbol CVCY. Central Valley Community Bank, headquartered in
Fresno, California, was founded in 1979 and is the sole subsidiary of
Central Valley Community Bancorp. Central Valley Community Bank operates
22 full-service offices throughout California’s San Joaquin Valley and
Greater Sacramento Region. Additionally, the Bank maintains Commercial
Real Estate, Agribusiness and SBA Lending Departments. Central Valley
Investment Services are provided by Raymond James Financial, Inc.
Members of Central Valley Community Bancorp’s and the Bank’s Board of
Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Lead
Independent Director), Edwin S. Darden, Jr., F. T. “Tommy” Elliott, IV,
James M. Ford, Robert J. Flautt, Gary D. Gall, Steven D. McDonald, Louis
C. McMurray, Karen Musson, and William S. Smittcamp. Sidney B. Cox is
Director Emeritus.
More information about Central Valley Community Bancorp and Central
Valley Community Bank can be found at www.cvcb.com.
Also, visit Central Valley Community Bank on Twitter and Facebook.
Forward-looking Statements- Certain matters discussed in this
press release constitute forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. All statements
contained herein that are not historical facts, such as statements
regarding the Company’s current business strategy and the Company’s
plans for future development and operations, are based upon current
expectations. These statements are forward-looking in nature and involve
a number of risks and uncertainties. Such risks and uncertainties
include, but are not limited to (1) significant increases in competitive
pressure in the banking industry; (2) the impact of changes in interest
rates, 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 (“SEC”), including its Annual
Report on Form 10-K for the year ended December 31, 2017. 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
(Unaudited) |
|
| |
| |
| |
| | June 30, | | December 31, | | June 30, |
| (In thousands, except share amounts) | | 2018 | | 2017 | | 2017 |
| | | | | |
|
| ASSETS | | | | | | |
|
Cash and due from banks
| |
$
|
29,811
| | |
$
|
38,286
| | |
$
|
29,943
|
|
Interest-earning deposits in other banks
| |
16,812
| | |
62,080
| | |
24,594
|
|
Federal funds sold
| |
7
|
| |
17
|
| |
48
|
|
Total cash and cash equivalents
| |
46,630
| | |
100,383
| | |
54,585
|
|
Available-for-sale investment securities
| |
484,001
| | |
535,281
| | |
520,648
|
|
Equity securities
| |
7,254
| | |
7,423
| | |
7,479
|
|
Loans, less allowance for credit losses of $8,920, $8,778 and $9,297
at June 30, 2018, December 31, 2017, and June 30, 2017, respectively
| |
925,914
| | |
891,901
| | |
759,691
|
|
Bank premises and equipment, net
| |
9,131
| | |
9,398
| | |
9,166
|
|
Bank owned life insurance
| |
28,154
| | |
27,807
| | |
23,489
|
| Federal Home Loan Bank stock
| |
6,843
| | |
6,843
| | |
5,594
|
| Goodwill | |
53,777
| | |
53,777
| | |
40,311
|
|
Core deposit intangibles
| |
2,840
| | |
3,027
| | |
1,289
|
|
Accrued interest receivable and other assets
| |
25,359
|
| |
25,815
|
| |
22,584
|
|
Total assets
| |
$
|
1,589,903
|
| |
$
|
1,661,655
|
| |
$
|
1,444,836
|
| | | | | |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
|
Deposits:
| | | | | | |
|
Non-interest bearing
| |
$
|
554,465
| | |
$
|
585,039
| | |
$
|
481,120
|
|
Interest bearing
| |
769,746
|
| |
840,648
|
| |
764,271
|
|
Total deposits
| |
1,324,211
| | |
1,425,687
| | |
1,245,391
|
|
Short-term borrowings
| |
30,000
| | |
—
| | |
—
|
|
Junior subordinated deferrable interest debentures
| |
5,155
| | |
5,155
| | |
5,155
|
|
Accrued interest payable and other liabilities
| |
19,353
|
| |
21,254
|
| |
17,123
|
|
Total liabilities
| |
1,378,719
|
| |
1,452,096
|
| |
1,267,669
|
|
Commitments and contingencies
| | | | | | |
| Shareholders’ equity: | | | | | | |
|
Preferred stock, no par value, $1,000 per share liquidation
preference; 10,000,000 shares authorized, none issued and outstanding
| |
—
| | |
—
| | |
—
|
|
Common stock, no par value; 80,000,000 shares authorized; issued and
outstanding: 13,785,591, 13,696,722, and 12,211,670, at June 30,
2018, December 31, 2017, and June 30, 2017, respectively
| |
104,226
| | |
103,314
| | |
72,344
|
|
Retained earnings
| |
111,545
| | |
103,419
| | |
100,638
|
|
Accumulated other comprehensive income (loss), net of tax
| |
(4,587
|
)
| |
2,826
|
| |
4,185
|
|
Total shareholders’ equity
| |
211,184
|
| |
209,559
|
| |
177,167
|
|
Total liabilities and shareholders’ equity
| |
$
|
1,589,903
|
| |
$
|
1,661,655
|
| |
$
|
1,444,836
|
| | | | | | | | | | |
|
|
| |
| |
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED
INCOME STATEMENTS
(Unaudited) |
| | | |
|
| | For the Three Months Ended, | | For the Six Months Ended |
| | June 30, |
| March 31, |
| June 30, | | June 30, |
| (In thousands, except share and per share amounts) | | 2018 | | 2018 | | 2017 | | 2018 |
| 2017 |
|
INTEREST INCOME:
| | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
12,519
| | |
$
|
12,006
| | |
$
|
10,774
| | |
$
|
24,525
| | |
$
|
20,864
| |
|
Interest on deposits in other banks
| |
44
| | |
98
| | |
76
| | |
142
| | |
151
| |
|
Interest and dividends on investment securities:
| | | | | | | | | | |
|
Taxable
| |
2,185
| | |
2,559
| | |
1,443
| | |
4,744
| | |
2,746
| |
|
Exempt from Federal income taxes
| |
1,045
|
| |
1,067
|
| |
1,775
|
| |
2,112
|
| |
3,897
|
|
|
Total interest income
| |
15,793
|
| |
15,730
|
| |
14,068
|
| |
31,523
|
| |
27,658
|
|
|
INTEREST EXPENSE:
| | | | | | | | | | |
|
Interest on deposits
| |
252
| | |
238
| | |
245
| | |
490
| | |
490
| |
|
Interest on junior subordinated deferrable interest debentures
| |
52
| | |
43
| | |
36
| | |
95
| | |
69
| |
|
Other
| |
92
|
| |
23
|
| |
1
|
| |
115
|
| |
5
|
|
|
Total interest expense
| |
396
|
| |
304
|
| |
282
|
| |
700
|
| |
564
|
|
|
Net interest income before provision for credit losses
| |
15,397
| | |
15,426
| | |
13,786
| | |
30,823
| | |
27,094
| |
|
PROVISION FOR (REVERSAL OF) CREDIT LOSSES
| |
50
|
| |
—
|
| |
(150
|
)
| |
50
|
| |
(250
|
)
|
|
Net interest income after provision for credit losses
| |
15,347
|
| |
15,426
|
| |
13,936
|
| |
30,773
|
| |
27,344
|
|
|
NON-INTEREST INCOME:
| | | | | | | | | | |
|
Service charges
| |
726
| | |
755
| | |
829
| | |
1,481
| | |
1,520
| |
|
Net realized gains on sales of credit card portfolio
| |
578
| | |
—
| | |
—
| | |
578
| | |
—
| |
|
Appreciation in cash surrender value of bank owned life insurance
| |
176
| | |
171
| | |
152
| | |
347
| | |
300
| |
|
Interchange fees
| |
380
| | |
345
| | |
373
| | |
725
| | |
697
| |
|
Loan placement fees
| |
173
| | |
166
| | |
156
| | |
339
| | |
247
| |
|
Net realized gains on sales and calls of investment securities
| |
82
| | |
815
| | |
2,157
| | |
897
| | |
2,639
| |
| Federal Home Loan Bank dividends
| |
118
| | |
121
| | |
96
| | |
239
| | |
224
| |
|
Other income
| |
453
|
| |
398
|
| |
333
|
| |
851
|
| |
715
|
|
|
Total non-interest income
| |
2,686
|
| |
2,771
|
| |
4,096
|
| |
5,457
|
| |
6,342
|
|
|
NON-INTEREST EXPENSES:
| | | | | | | | | | |
|
Salaries and employee benefits
| |
6,833
| | |
6,416
| | |
6,021
| | |
13,249
| | |
11,876
| |
|
Occupancy and equipment
| |
1,577
| | |
1,537
| | |
1,211
| | |
3,114
| | |
2,390
| |
|
Acquisition and integration expenses
| |
—
| | |
217
| | |
455
| | |
217
| | |
455
| |
|
Professional services
| |
363
| | |
438
| | |
426
| | |
801
| | |
846
| |
|
Data processing expense
| |
370
| | |
480
| | |
419
| | |
850
| | |
843
| |
|
Directors’ expenses
| |
133
| | |
90
| | |
128
| | |
223
| | |
357
| |
|
ATM/Debit card expenses
| |
176
| | |
201
| | |
171
| | |
377
| | |
337
| |
|
License and maintenance contracts
| |
222
| | |
212
| | |
256
| | |
434
| | |
402
| |
|
Regulatory assessments
| |
160
| | |
162
| | |
146
| | |
322
| | |
321
| |
|
Advertising
| |
188
| | |
189
| | |
160
| | |
377
| | |
330
| |
|
Internet banking expenses
| |
175
| | |
195
| | |
172
| | |
370
| | |
341
| |
|
Amortization of core deposit intangibles
| |
93
| | |
94
| | |
47
| | |
187
| | |
94
| |
|
Other expense
| |
1,209
|
| |
1,137
|
| |
1,177
|
| |
2,346
|
| |
2,310
|
|
|
Total non-interest expenses
| |
11,499
|
| |
11,368
|
| |
10,789
|
| |
22,867
|
| |
20,902
|
|
|
Income before provision for income taxes
| |
6,534
| | |
6,829
| | |
7,243
| | |
13,363
| | |
12,784
| |
|
PROVISION FOR INCOME TAXES
| |
1,569
|
| |
1,538
|
| |
2,295
|
| |
3,107
|
| |
3,586
|
|
|
Net income
| |
$
|
4,965
|
| |
$
|
5,291
|
| |
$
|
4,948
|
| |
$
|
10,256
|
| |
$
|
9,198
|
|
|
Net income per common share:
| | | | | | | | | | |
|
Basic earnings per common share
| |
$
|
0.36
|
| |
$
|
0.39
|
| |
$
|
0.41
|
| |
$
|
0.75
|
| |
$
|
0.75
|
|
|
Weighted average common shares used in basic computation
| |
13,692,358
|
| |
13,669,976
|
| |
12,207,570
|
| |
13,681,229
|
| |
12,187,324
|
|
|
Diluted earnings per common share
| |
$
|
0.36
|
| |
$
|
0.38
|
| |
$
|
0.40
|
| |
$
|
0.74
|
| |
$
|
0.75
|
|
|
Weighted average common shares used in diluted computation
| |
13,823,278
|
| |
13,804,480
|
| |
12,338,884
|
| |
13,814,087
|
| |
12,327,797
|
|
|
Cash dividends per common share
| |
$
|
0.07
|
| |
$
|
0.07
|
| |
$
|
0.06
|
| |
$
|
0.14
|
| |
$
|
0.12
|
|
| | | | | | | | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED
CONSOLIDATED INCOME STATEMENTS
(Unaudited) |
| | | | | | | | | |
|
| | Jun. 30, | | Mar. 31 | | Dec. 31, | | Sep. 30, | | Jun. 30, |
| For the three months ended | | 2018 | | 2018 | | 2017 | | 2017 | | 2017 |
| (In thousands, except share and per share amounts) | | | | | | | | | | |
|
Net interest income
| |
$
|
15,397
| | |
$
|
15,426
| | |
$
|
15,567
| | |
$
|
13,578
| | |
$
|
13,786
| |
|
Provision for (reversal of) credit losses
| |
50
|
| |
—
|
| |
—
|
| |
(900
|
)
| |
(150
|
)
|
|
Net interest income after provision for credit losses
| |
15,347
| | |
15,426
| | |
15,567
| | |
14,478
| | |
13,936
| |
|
Total non-interest income
| |
2,686
| | |
2,771
| | |
1,941
| | |
2,554
| | |
4,096
| |
|
Total non-interest expense
| |
11,499
| | |
11,368
| | |
13,109
| | |
10,394
| | |
10,789
| |
|
Provision for income taxes
| |
1,569
|
| |
1,538
|
| |
4,064
|
| |
2,144
|
| |
2,295
|
|
|
Net income
| |
$
|
4,965
|
| |
$
|
5,291
|
| |
$
|
335
|
| |
$
|
4,494
|
| |
$
|
4,948
|
|
|
Basic earnings per common share
| |
$
|
0.36
|
| |
$
|
0.39
|
| |
$
|
0.02
|
| |
$
|
0.37
|
| |
$
|
0.41
|
|
|
Weighted average common shares used in basic computation
| |
13,692,358
|
| |
13,669,976
|
| |
13,533,677
|
| |
12,208,313
|
| |
12,207,570
|
|
|
Diluted earnings per common share
| |
$
|
0.36
|
| |
$
|
0.38
|
| |
$
|
0.02
|
| |
$
|
0.36
|
| |
$
|
0.40
|
|
|
Weighted average common shares used in diluted computation
| |
13,823,278
|
| |
13,804,480
|
| |
13,730,434
|
| |
12,325,254
|
| |
12,338,884
|
|
| | | | | | | | | | | | | | |
|
|
| |
| |
| |
| |
| |
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 | | 2018 | | 2018 | | 2017 | | 2017 | | 2017 |
| (Dollars in thousands, except per share amounts) | | | | | | | | | | |
|
Allowance for credit losses to total loans
| |
0.95
|
%
| |
0.96
|
%
| |
0.97
|
%
| |
1.14
|
%
| |
1.21
|
%
|
|
Non-performing assets to total assets
| |
0.26
|
%
| |
0.25
|
%
| |
0.18
|
%
| |
0.22
|
%
| |
0.23
|
%
|
|
Total non-performing assets
| |
$
|
4,092
| | |
$
|
4,058
| | |
$
|
2,945
| | |
$
|
3,162
| | |
$
|
3,293
| |
|
Total nonaccrual loans
| |
$
|
4,092
| | |
$
|
4,058
| | |
$
|
2,875
| | |
$
|
2,968
| | |
$
|
3,099
| |
|
Net loan charge-offs (recoveries)
| |
$
|
(82
|
)
| |
$
|
(10
|
)
| |
$
|
138
| | |
$
|
(519
|
)
| |
$
|
(233
|
)
|
|
Net charge-offs (recoveries) to average loans (annualized)
| |
(0.04
|
)%
| |
—
|
%
| |
0.06
|
%
| |
(0.27
|
)%
| |
(0.12
|
)%
|
|
Book value per share
| |
$
|
15.32
| | |
$
|
15.12
| | |
$
|
15.30
| | |
$
|
14.84
| | |
$
|
14.51
| |
|
Tangible book value per share
| |
$
|
11.21
| | |
$
|
11.00
| | |
$
|
11.15
| | |
$
|
11.44
| | |
$
|
11.10
| |
|
Tangible common equity
| |
$
|
154,567
| | |
$
|
151,232
| | |
$
|
152,755
| | |
$
|
139,678
| | |
$
|
135,567
| |
|
Cost of total deposits
| |
0.08
|
%
| |
0.07
|
%
| |
0.08
|
%
| |
0.06
|
%
| |
0.08
|
%
|
|
Interest and dividends on investment securities exempt from Federal
income taxes
| |
$
|
1,045
| | |
$
|
1,067
| | |
$
|
1,464
| | |
$
|
1,531
| | |
$
|
1,775
| |
|
Net interest margin (calculated on a fully tax equivalent basis) (1)
| |
4.33
|
%
| |
4.26
|
%
| |
4.37
|
%
| |
4.42
|
%
| |
4.47
|
%
|
|
Return on average assets (2)
| |
1.25
|
%
| |
1.30
|
%
| |
0.08
|
%
| |
1.26
|
%
| |
1.37
|
%
|
|
Return on average equity (2)
| |
9.53
|
%
| |
10.15
|
%
| |
0.64
|
%
| |
10.05
|
%
| |
11.41
|
%
|
|
Loan to deposit ratio
| |
70.60
|
%
| |
65.96
|
%
| |
63.18
|
%
| |
63.91
|
%
| |
61.75
|
%
|
|
Efficiency ratio
| |
64.28
|
%
| |
61.67
|
%
| |
64.20
|
%
| |
60.44
|
%
| |
61.47
|
%
|
|
Tier 1 leverage - Bancorp
| |
10.59
|
%
| |
10.10
|
%
| |
9.71
|
%
| |
9.86
|
%
| |
9.43
|
%
|
|
Tier 1 leverage - Bank
| |
10.44
|
%
| |
9.89
|
%
| |
9.46
|
%
| |
9.76
|
%
| |
9.33
|
%
|
|
Common equity tier 1 - Bancorp
| |
14.47
|
%
| |
14.01
|
%
| |
12.90
|
%
| |
13.09
|
%
| |
12.92
|
%
|
|
Common equity tier 1 - Bank
| |
14.71
|
%
| |
14.17
|
%
| |
12.96
|
%
| |
13.35
|
%
| |
13.17
|
%
|
|
Tier 1 risk-based capital - Bancorp
| |
14.92
|
%
| |
14.47
|
%
| |
13.28
|
%
| |
13.48
|
%
| |
13.31
|
%
|
|
Tier 1 risk-based capital - Bank
| |
14.71
|
%
| |
14.17
|
%
| |
12.96
|
%
| |
13.35
|
%
| |
13.17
|
%
|
|
Total risk-based capital - Bancorp
| |
15.77
|
%
| |
15.30
|
%
| |
14.07
|
%
| |
14.39
|
%
| |
14.27
|
%
|
|
Total risk based capital - Bank
| |
15.56
|
%
| |
15.01
|
%
| |
13.74
|
%
| |
14.26
|
%
| |
14.14
|
%
|
(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 Ended | | For the Six Months Ended |
| AVERAGE AMOUNTS | | June 30, |
| March 31, |
| June 30, | | June 30, |
| June 30, |
| (Dollars in thousands) | | 2018 | | 2018 | | 2017 | | 2018 | | 2017 |
|
Federal funds sold
| |
$
|
35
| | |
$
|
61
| | |
$
|
37
| | |
$
|
48
| | |
$
|
23
| |
|
Interest-bearing deposits in other banks
| |
11,037
| | |
25,458
| | |
28,748
| | |
18,208
| | |
32,780
| |
|
Investments
| |
521,433
| | |
552,242
| | |
524,706
| | |
536,753
| | |
535,190
| |
|
Loans (1)
| |
914,236
|
| |
898,811
|
| |
762,094
|
| |
906,566
|
| |
752,819
|
|
|
Earning assets
| |
1,446,741
| | |
1,476,572
| | |
1,315,585
| | |
1,461,575
| | |
1,320,812
| |
|
Allowance for credit losses
| |
(8,822
|
)
| |
(8,789
|
)
| |
(9,390
|
)
| |
(8,806
|
)
| |
(9,372
|
)
|
|
Nonaccrual loans
| |
4,035
| | |
4,093
| | |
3,119
| | |
4,064
| | |
2,686
| |
|
Other non-earning assets
| |
146,690
|
| |
152,628
|
| |
133,760
|
| |
149,642
|
| |
132,655
|
|
|
Total assets
| |
$
|
1,588,644
|
| |
$
|
1,624,504
|
| |
$
|
1,443,074
|
| |
$
|
1,606,475
|
| |
$
|
1,446,781
|
|
| | | | | | | | | |
|
|
Interest bearing deposits
| |
$
|
790,396
| | |
$
|
830,722
| | |
$
|
778,750
| | |
$
|
810,449
| | |
$
|
782,311
| |
|
Other borrowings
| |
24,699
|
| |
10,899
|
| |
5,387
|
| |
17,837
|
| |
6,155
|
|
|
Total interest-bearing liabilities
| |
815,095
|
| |
841,621
|
| |
784,137
|
| |
828,286
|
| |
788,466
|
|
|
Non-interest bearing demand deposits
| |
545,854
| | |
553,931
| | |
468,690
| | |
549,870
| | |
471,398
| |
|
Non-interest bearing liabilities
| |
19,221
|
| |
20,352
|
| |
16,842
|
| |
19,783
|
| |
16,828
|
|
|
Total liabilities
| |
1,380,170
|
| |
1,415,904
|
| |
1,269,669
|
| |
1,397,939
|
| |
1,276,692
|
|
|
Total equity
| |
208,474
|
| |
208,600
|
| |
173,405
|
| |
208,536
|
|
|
170,089
|
|
|
Total liabilities and equity
| |
$
|
1,588,644
|
| |
$
|
1,624,504
|
| |
$
|
1,443,074
|
| |
$
|
1,606,475
|
| |
$
|
1,446,781
|
|
| | | | | | | | | |
|
| AVERAGE RATES |
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold
| |
1.78
|
%
| |
1.51
|
%
| |
1.25
|
%
| |
1.61
|
%
| |
1.25
|
%
|
|
Interest-earning deposits in other banks
| |
1.63
|
%
| |
1.54
|
%
| |
1.06
|
%
| |
1.56
|
%
| |
0.92
|
%
|
|
Investments
| |
2.69
|
%
| |
2.83
|
%
| |
3.15
|
%
| |
2.76
|
%
| |
3.23
|
%
|
|
Loans (3)
| |
5.49
|
%
| |
5.42
|
%
| |
5.67
|
%
| |
5.46
|
%
| |
5.59
|
%
|
|
Earning assets
| |
4.44
|
%
| |
4.34
|
%
| |
4.56
|
%
| |
4.39
|
%
| |
4.49
|
%
|
|
Interest-bearing deposits
| |
0.13
|
%
| |
0.12
|
%
| |
0.13
|
%
| |
0.12
|
%
| |
0.13
|
%
|
|
Other borrowings
| |
2.33
|
%
| |
2.42
|
%
| |
2.75
|
%
| |
2.35
|
%
| |
2.40
|
%
|
|
Total interest-bearing liabilities
| |
0.19
|
%
| |
0.15
|
%
| |
0.14
|
%
| |
0.17
|
%
| |
0.14
|
%
|
|
Net interest margin (calculated on a fully tax equivalent basis) (2)
| |
4.33
|
%
| |
4.26
|
%
| |
4.47
|
%
| |
4.29
|
%
| |
4.41
|
%
|
|
(1)
|
|
Average loans do not include nonaccrual loans.
|
|
(2)
| |
Calculated on a fully tax equivalent basis, which includes Federal
tax benefits relating to income earned on municipal bonds of $278,
$284, and $915, for the three months ended June 30, 2018, March 31,
2018, and June 30, 2017, respectively. The Federal tax benefits
relating to income earned on municipal bonds totaled $562 and $2,008
for the six months ended June 30, 2018 and 2017, respectively.
|
|
(3)
| |
Loan yield includes loan fees for the three months ended June 30,
2018, March 31, 2018, and June 30, 2017 of $107, $121, and $25,
respectively. Loan yield includes loan fees for the six months ended
June 30, 2018 and 2017 of $228, and $468, respectively.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20180718005822/en/
Central Valley Community Bancorp
Investor Contact:
Dave
Kinross, 559-323-3420
Executive Vice President and Chief Financial
Officer
or
Media Contact:
Debbie Nalchajian-Cohen,
559-222-1322
Marketing Director
Source: Central Valley Community Bancorp