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 $21,289,000,
and fully diluted earnings per common share of $1.54 for the year ended
December 31, 2018, compared to $14,026,000 and $1.10 per fully diluted
common share for the year ended December 31, 2017.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
-
Net loans increased $17.7 million or 1.98%, and total assets decreased
$123.8 million or 7.45% at December 31, 2018 compared to December 31,
2017.
-
Total deposits decreased 10.06% to $1.28 billion at December 31, 2018
compared to December 31, 2017.
-
Total cost of deposits remain at record low levels at 0.10% and 0.08%
for the quarter ended December 31, 2018 and 2017, respectively.
-
Average non-interest bearing demand deposit accounts as a percentage
of total average deposits was 43.06% and 40.40% for the quarters ended
December 31, 2018 and 2017, respectively.
-
Capital positions remain strong at December 31, 2018 with a 11.48%
Tier 1 Leverage Ratio; a 15.13% Common Equity Tier 1 Ratio; a 15.59%
Tier 1 Risk-Based Capital Ratio; and a 16.44% Total Risk-Based Capital
Ratio.
-
The Company increased its quarterly dividend to $0.10 per common
share, payable on February 22, 2019 to shareholders of record on
February 8, 2019.
“2018 was another successful year for our Company with earnings at
record highs and strong levels of capital. Our Central Valley Community
Bank team has remained focused on serving client needs, a historic
practice for our 39-year-old Bank that has resulted in improved
financial performance, rewarding our long term shareholders. To that
end, the Company began execution late in the fourth quarter on our stock
repurchase authorization and the Directors have declared a third
consecutive increase in our quarterly dividend to $0.10 per share on the
Company’s common stock,” stated James M. Ford, President & CEO of
Central Valley Community Bank and Central Valley Community Bancorp.
“Our strategic plan remains viable as we continue to expand our presence
in the San Joaquin Valley and Greater Sacramento regions by offering
personalized financial service and competitive products,” concluded Ford.
Net income for the year ended December 31, 2018 increased 51.78%
compared to 2017, primarily driven by an increase in net interest income
and a decrease in the 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 year
ended December 31, 2017. During the year ended December 31, 2018, the
Company recorded a $50,000 provision for credit losses, compared to a
$1,150,000 reverse provision during the year ended December 31, 2017.
Net interest income before the provision for credit losses for the year
ended December 31, 2018 was $62,703,000, compared to $56,239,000 for the
year ended December 31, 2017, an increase of $6,464,000 or 11.49%. The
impact to interest income from the accretion of the loan marks on
acquired loans was $1,158,000 and $829,000 for the year ended December
31, 2018 and 2017, respectively. In addition, net interest income before
the provision for credit losses for the year ended December 31, 2018 was
benefited by approximately $498,000 in nonrecurring income from
prepayment penalties and payoff of loans previously on nonaccrual
status, as compared to a $1,313,000 net benefit for the year ended
December 31, 2017. Excluding these reversals and benefits, net interest
income for the year ended December 31, 2018 increased by $7,279,000
compared to the year ended December 31, 2017. Approximately, $4,304,000
of the increase in net interest income was attributable to the Folsom
Lake Bank (FLB) acquisition completed in 2017, and approximately
$2,975,000 from our continued organic growth.
During the year ended December 31, 2018, the Company’s shareholders’
equity increased $10,179,000, or 4.86%, 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 year ended December 31, 2018 was
10.07%, compared to 7.69% for the year ended December 31, 2017. The
increase in ROE was primarily due to the increase in net income compared
to last year. The Company declared and paid $0.31 and $0.24 per share in
cash dividends to holders of common stock during the year ended December
31, 2018 and 2017, respectively. Annualized return on average assets
(ROA) was 1.35% for the year ended December 31, 2018 and 0.94% for the
year ended December 31, 2017. During the year ended December 31, 2018,
the Company’s total assets decreased 7.45%, and total liabilities
decreased 9.23%, compared to December 31, 2017.
Non-performing assets decreased by $205,000, or 6.96%, to $2,740,000 at
December 31, 2018, compared to $2,945,000 at December 31, 2017. During
the year ended December 31, 2018, the Company recorded $276,000 in net
loan recoveries, compared to $602,000 in net recoveries for the year
ended December 31, 2017. The net charge-off (recovery) ratio, which
reflects annualized net recoveries to average loans, was (0.03)% for the
year ended December 31, 2018, compared to (0.08)% for the same period in
2017. Total non-performing assets were 0.18% of total assets as of
December 31, 2018 and December 31, 2017.
At December 31, 2018, the allowance for credit losses was $9,104,000,
compared to $8,778,000 at December 31, 2017, a net increase of $326,000
reflecting the net recoveries and provision during the period. The
allowance for credit losses as a percentage of total loans was 0.99% at
December 31, 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 $189,719,000 at December 31, 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 1.25% and 1.34% as of December 31, 2018 and December 31, 2017,
respectively, and general reserves associated with non-impaired loans to
total non-impaired loans was 1.25% 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
December 31, 2018.
The Company’s net interest margin (fully tax equivalent basis) was 4.44%
for the year ended December 31, 2018, compared to 4.40% for the year
ended December 31, 2017. The increase in net interest margin in the
period-to-period comparison resulted primarily from the increase in the
effective yield on interest earning deposits in other banks and Federal
Funds sold, offset by the decrease in the effective yield on average
investment securities, and the decrease in the yield on the Company’s
loan portfolio.
For the year ended December 31, 2018, the effective yield on average
total earning assets increased 6 basis points to 4.54% compared to 4.48%
for the year ended December 31, 2017, while the cost of average total
interest-bearing liabilities increased to 0.19% for the year ended
December 31, 2018 as compared to 0.14% for the year ended December 31,
2017. Over the same periods, the cost of average total deposits
increased to 0.09% for the year ended December 31, 2018 compared to
0.08% for the same period in 2017.
For the year ended December 31, 2018, the Company’s average investment
securities, including interest-earning deposits in other banks and
Federal funds sold, totaled $526,606,000, a decrease of $41,820,000, or
7.36%, compared to the year ended December 31, 2017. The effective yield
on average investment securities, including interest earning deposits in
other banks and Federal funds sold, decreased to 2.88% for the year
ended December 31, 2018, compared to 3.06% for the year ended
December 31, 2017.
Total average loans (including nonaccrual), which generally yield higher
rates than investment securities, increased $118,785,000, from
$793,343,000 for the year ended December 31, 2017 to $912,128,000 for
the year ended December 31, 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 was primarily due to the acquisition of FLB
in 2017. The effective yield on average loans decreased slightly to
5.50% for the year ended December 31, 2018, compared to 5.51% for the
year ended December 31, 2017 primarily due to competitive pressures in
the Company’s lending markets.
Total average assets for the year ended December 31, 2018 was
$1,577,410,000 compared to $1,491,696,000 for the year ended
December 31, 2017, an increase of $85,714,000 or 5.75%. During the year
ended December 31, 2018 and 2017, the loan-to-deposit ratio was 71.64%
and 63.18%, respectively. Total average deposits increased $49,449,000
or 3.85% to $1,333,754,000 for the year ended December 31, 2018,
compared to $1,284,305,000 for the year ended December 31, 2017. Average
interest-bearing deposits decreased $3,869,000, or 0.49%, and average
non-interest bearing demand deposits increased $53,318,000, or 10.66%,
for the year ended December 31, 2018, compared to the year ended
December 31, 2017. The Company’s ratio of average non-interest bearing
deposits to total deposits was 41.48% for the year ended December 31,
2018, compared to 38.93% for the year ended December 31, 2017. The
year-over-year growth was primarily driven by the FLB acquisition which
closed on October 1, 2017.
Non-interest income for the year ended December 31, 2018 decreased by
$512,000 to $10,324,000, compared to $10,836,000 for the year ended
December 31, 2017, primarily driven by a decrease of $1,488,000 in net
realized gains on sales and calls of investment securities. A net gain
of $462,000 on the sale of the Company’s credit card portfolio, an
increase in appreciation in cash surrender value of bank owned life
insurance of $74,000, a $147,000 increase in Federal Home Loan Bank
dividends, a $4,000 increase in interchange fees, and an increase in
loan placement fees of $2,000, were offset by a $67,000 decrease in
service charge income.
Non-interest expense for the year ended December 31, 2018 increased
$662,000, or 1.49%, to $45,068,000 compared to $44,406,000 for the year
ended December 31, 2017. The net increase year over year was primarily
attributable to the FLB acquisition, which resulted in increases in
salaries and employee benefits of $1,483,000, occupancy and equipment
expenses of $786,000, operating losses of $302,000, and information
technology of $295,000, offset by decrease in acquisition and
integration expenses of $1,611,000, a decrease of $124,000 in credit
card expenses, and a decrease of $132,000 in directors’ expenses in 2018
compared to 2017.
The Company recorded an income tax provision of $6,620,000 for the year
ended December 31, 2018, compared to $9,793,000 for the year ended
December 31, 2017. The effective tax rate for the year ended
December 31, 2018 was 23.72% compared to 41.11% for the year ended
December 31, 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 December 31, 2018
For the quarter ended December 31, 2018, the Company reported unaudited
consolidated net income of $5,281,000 and earnings per diluted common
share of $0.38, compared to consolidated net income of $335,000 and
$0.02 per diluted share for the same period in 2017. The increase in net
income during the fourth quarter of 2018 compared to the same period in
2017 was primarily due to an increase in net interest income of
$406,000, a decrease in the provision for income taxes of $2,378,000, a
decrease in total non-interest expenses of $1,699,000, and an increase
in non-interest income of $463,000. The effective tax rate decreased to
24.20% from 92.38% for the quarters ended December 31, 2018 and
December 31, 2017, respectively, primarily due to the revaluation of
deferred tax assets in 2017 as a result of the change in the marginal
2018 federal tax rate from 35% to 21%. Net income for the immediately
trailing quarter ended September 30, 2018 was $5,752,000, or $0.42 per
diluted common share.
Annualized return on average equity (ROE) for the fourth quarter of 2018
was 9.82%, compared to 0.64% for the same period of 2017. The increase
in ROE reflects increase in net income, notwithstanding an increase in
shareholders’ equity. Annualized return on average assets (ROA) was
1.37% for the fourth quarter of 2018 compared to 0.08% for the same
period in 2017. This increase is due to an increase in net income
notwithstanding a decrease in average assets.
In comparing the fourth quarter of 2018 to the fourth quarter of 2017,
average total loans increased by $22,565,000, or 2.53%. During the
fourth quarter of 2018, the Company recorded net loan recoveries of
$79,000 compared to $138,000 net loan charge-offs for the same period in
2017. The net charge-off (recovery) ratio, which reflects annualized net
charge-offs to average loans, was (0.03)% for the quarter ended
December 31, 2018 compared to 0.06% for the quarter ended December 31,
2017.
Average total deposits for the fourth quarter of 2018 decreased
$106,083,000 or 7.55% to $1,299,796,000 compared to $1,405,879,000 for
the same period of 2017. In comparing the fourth quarter of 2018 to the
fourth quarter of 2017, average borrowed funds decreased $1,907,000 or
(23.58)% to $6,179,000 compared to $8,086,000.
The Company’s net interest margin (fully tax equivalent basis) was 4.55%
for the quarter ended December 31, 2018, compared to 4.34% for the
quarter ended December 31, 2017. Net interest income, before provision
for credit losses, increased $406,000, or 2.61%, to $15,973,000 for the
fourth quarter of 2018, compared to $15,567,000 for the same period in
2017. The accretion of the loan marks on acquired loans increased
interest income by $252,000 and $242,000 during the quarters ended
December 31, 2018 and 2017, respectively. Net interest income during the
fourth quarters of 2018 and 2017 benefited by approximately $142,000 and
$96,000, respectively, from prepayment penalties and payoff of loans
previously on nonaccrual status. The net interest margin
period-to-period comparisons were impacted by an increase in the yield
on the average investment securities and the loan portfolio. Over the
same periods, the cost of total deposits increased to 0.10% from 0.08%.
For the quarter ended December 31, 2018, the Company’s average
investment securities, including interest-earning deposits in other
banks and Federal funds sold, decreased by $111,645,000, or 18.43%,
compared to the quarter ended December 31, 2017, and decreased by
$9,076,000, or 1.80%, compared to the quarter ended September 30, 2018.
The effective yield on average investment securities, including interest
earning deposits in other banks and Federal funds sold, was 3.07% for
the quarter ended December 31, 2018, compared to 2.91% for the quarter
ended December 31, 2017 and 3.05% for the quarter ended September 30,
2018. Total average loans, which generally yield higher rates than
investment securities, increased by $22,565,000 to $912,916,000 for the
quarter ended December 31, 2018, from $890,351,000 for the quarter ended
December 31, 2017 and decreased by $1,369,000 from $914,285,000 for the
quarter ended September 30, 2018. The effective yield on average loans
was 5.54% for the quarter ended December 31, 2018, compared to 5.48% and
5.53% for the quarters ended December 31, 2017 and September 30, 2018,
respectively.
Total average assets for the quarter ended December 31, 2018 were
$1,541,936,000 compared to $1,644,685,000 for the quarter ended
December 31, 2017 and $1,555,704,000 for the quarter ended September 30,
2018, a decrease of $102,749,000 and a decrease of $13,768,000, or 6.25%
and 0.89%, respectively.
Total average deposits decreased $106,083,000, or 7.55%, to
$1,299,796,000 for the quarter ended December 31, 2018, compared to
$1,405,879,000 for the quarter ended December 31, 2017. Total average
deposits decreased $15,654,000, or 1.19%, for the quarter ended
December 31, 2018, compared to $1,315,450,000 for the quarter ended
September 30, 2018. The Company’s ratio of average non-interest bearing
deposits to total deposits was 43.06% for the quarter ended December 31,
2018, compared to 40.40% and 42.09% for the quarters ended December 31,
2017 and September 30, 2018, respectively.
Non-interest income increased $463,000, or 23.85%, to $2,404,000 for the
fourth quarter of 2018 compared to $1,941,000 for the same period in
2017. For the quarter ended December 31, 2018, non-interest income
included $37,000 net realized gains on sales and calls of investment
securities compared to net realized losses of $6,000 for the same period
in 2017, a $43,000 increase. Federal Home Loan Bank dividends increased
$111,000 for the quarter ended December 31, 2018, compared to the
quarter ended December 31, 2017. During the fourth quarter 2018
interchange fees decreased $27,000, loan placement fees decreased
$18,000, and service charge income decreased $2,000 compared to the same
period in 2017. Non-interest income for the quarter ended December 31,
2018 decreased by $59,000 to $2,404,000, compared to $2,463,000 for the
quarter ended September 30, 2018. The decrease compared to the trailing
quarter was primarily a $343,000 decrease in net realized gains on sales
and calls of investment securities, offset by a $27,000 increase in
service charges, and a $100,000 increase in other income.
Non-interest expense for the quarter ended December 31, 2018 decreased
$1,699,000, or 12.96%, to $11,410,000 compared to $13,109,000 for the
quarter ended December 31, 2017. The net decrease quarter over quarter
was a result of a decrease in acquisition and integration expenses of
$1,211,000, a decrease in salaries and employee benefits of $289,000, a
decrease in occupancy and equipment expenses of $141,000, a decrease in
professional services of $74,000, and a decrease of $27,000 in
regulatory assessments, partially offset by an increase of $206,000 in
operating losses, an increase of $264,000 in information technology
expenses, an increase of $81,000 in amortization of core deposit
intangibles, and an increase of $35,000 in advertising expenses.
Non-interest expense for the quarter ended December 31, 2018 increased
by $619,000 compared to $10,791,000 for the trailing quarter ended
September 30, 2018. The increase compared to the trailing quarter was
primarily due to an increase in salaries and employee benefits of
$198,000, a $306,000 increase in information technology expenses, and a
$261,000 increase in other non-interest expenses, partially offset by a
decrease in occupancy and equipment expense of $120,000, and a decrease
of $74,000 in directors’ expenses.
The majority of the $261,000 increase in other non-interest expenses was
comprised of an operations related loss of $146,000, in addition to a
$26,000 increase in stationery and supplies, and a $41,000 increase in
personnel costs. The increase in salaries and employee benefits of
$198,000 was the result of increased profit sharing expense of $103,000
and increased 401K match of $26,000.
The Company recorded an income tax provision of $1,686,000 for the
quarter ended December 31, 2018, compared to $4,064,000 for the quarter
ended December 31, 2017. The effective tax rate for the quarter ended
December 31, 2018 was 24.20% compared to 92.38% for the same period in
2017. The 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.
On July 17, 2018, the Company announced the approval of a stock
repurchase plan to repurchase up to $10 million of the Company’s common
stock. Through December 31, 2018, the Company repurchased 47,862 shares
of common stock for approximately $894,000.
Quarterly Dividend Announcement
On January 23, 2019, the Board of Directors of the Company declared an
increase in the regular quarterly cash dividend to $0.10 per share on
the Company’s common stock. The dividend is payable on February 22, 2019
to shareholders of record as of February 8, 2019. This represents the
fourth dividend increase within the past five quarters, and reflects the
increased profitability of the Company.
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
20 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; (3) a decline in economic conditions at the international,
national or local level on the Company’s results of operations; (4) the
Company’s ability to continue its internal growth at historical rates;
(5) the Company’s ability to maintain its net interest margin; (6) the
quality of the Company’s earning assets; (7) changes in the regulatory
environment; (8) fluctuations in the real estate market; (9) changes in
business conditions and inflation; (10) changes in securities markets;
and (11) the other risks set forth in the Company’s reports filed with
the Securities and Exchange Commission (“SEC”), including its Annual
Report on Form 10-K for the year ended December 31, 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) |
|
| |
| |
| |
| | December 31, | | September 30, | | December 30, |
| (In thousands, except share amounts) | | 2018 | | 2018 | | 2017 |
| | | | | |
|
| ASSETS | | | | | | |
|
Cash and due from banks
| |
$
|
24,954
| | |
$
|
29,748
| | |
$
|
38,286
|
|
Interest-earning deposits in other banks
| |
6,725
| | |
17,528
| | |
62,080
|
|
Federal funds sold
| |
48
|
| |
31
|
| |
17
|
|
Total cash and cash equivalents
| |
31,727
| | |
47,307
| | |
100,383
|
|
Available-for-sale investment securities
| |
463,905
| | |
434,697
| | |
535,281
|
|
Equity securities
| |
7,254
| | |
7,184
| | |
7,423
|
|
Loans, less allowance for credit losses of $9,104, $9,025 and $8,778
at December 31, 2018, September 30, 2018, and December 31, 2017,
respectively
| |
909,591
| | |
902,852
| | |
891,901
|
|
Bank premises and equipment, net
| |
8,484
| | |
8,869
| | |
9,398
|
|
Bank owned life insurance
| |
28,502
| | |
28,329
| | |
27,807
|
| Federal Home Loan Bank stock
| |
6,843
| | |
6,843
| | |
6,843
|
| Goodwill | |
53,777
| | |
53,777
| | |
53,777
|
|
Core deposit intangibles
| |
2,572
| | |
2,746
| | |
3,027
|
|
Accrued interest receivable and other assets
| |
25,181
|
| |
26,822
|
| |
25,815
|
|
Total assets
| |
$
|
1,537,836
|
| |
$
|
1,519,426
|
| |
$
|
1,661,655
|
| | | | | |
|
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
|
Deposits:
| | | | | | |
|
Non-interest bearing
| |
$
|
550,657
| | |
$
|
534,636
| | |
$
|
585,039
|
|
Interest bearing
| |
731,641
|
| |
740,893
|
| |
840,648
|
|
Total deposits
| |
1,282,298
| | |
1,275,529
| | |
1,425,687
|
|
Short-term borrowings
| |
10,000
| | |
—
| | |
—
|
|
Junior subordinated deferrable interest debentures
| |
5,155
| | |
5,155
| | |
5,155
|
|
Accrued interest payable and other liabilities
| |
20,645
|
| |
25,307
|
| |
21,254
|
|
Total liabilities
| |
1,318,098
|
| |
1,305,991
|
| |
1,452,096
|
| Shareholders’ equity: | | | | | | |
|
Preferred stock, no par value; 10,000,000 shares authorized, none
issued and outstanding
| |
—
| | |
—
| | |
—
|
|
Common stock, no par value; 80,000,000 shares authorized; issued and
outstanding: 13,754,965, 13,796,489, and 13,696,722, at December 31,
2018, September 30, 2018, and December 31, 2017, respectively
| |
103,851
| | |
104,506
| | |
103,314
|
|
Retained earnings
| |
120,294
| | |
116,255
| | |
103,419
|
|
Accumulated other comprehensive (loss) income, net of tax
| |
(4,407
|
)
| |
(7,326
|
)
| |
2,826
|
|
Total shareholders’ equity
| |
219,738
|
| |
213,435
|
| |
209,559
|
|
Total liabilities and shareholders’ equity
| |
$
|
1,537,836
|
| |
$
|
1,519,426
|
| |
$
|
1,661,655
|
| | | | | | | | | | |
|
CENTRAL VALLEY COMMUNITY BANCORP CONSOLIDATED INCOME STATEMENTS (Unaudited) |
|
| |
| |
| | For the Three Months Ended, | | For the Years Ended |
| | December 31, |
| September 30, |
| December 31, | | December 31, |
| (In thousands, except share and per share amounts) | | 2018 | | 2018 | | 2017 | | 2018 |
| 2017 |
|
INTEREST INCOME:
| | | | | | | | | | |
|
Interest and fees on loans
| |
$
|
12,720
| | |
$
|
12,691
| | |
$
|
12,247
| | |
$
|
49,936
| | |
$
|
43,534
| |
|
Interest on deposits in other banks
| |
147
| | |
170
| | |
220
| | |
459
| | |
424
| |
|
Interest and dividends on investment securities:
| | | | | | | | | | |
|
Taxable
| |
2,977
| | |
2,533
| | |
1,962
| | |
10,254
| | |
6,526
| |
|
Exempt from Federal income taxes
| |
530
|
| |
896
|
| |
1,464
|
| |
3,538
|
| |
6,892
|
|
|
Total interest income
| |
16,374
|
| |
16,290
|
| |
15,893
|
| |
64,187
|
| |
57,376
|
|
|
INTEREST EXPENSE:
| | | | | | | | | | |
|
Interest on deposits
| |
343
| | |
320
| | |
279
| | |
1,153
| | |
969
| |
|
Interest on junior subordinated deferrable interest debentures
| |
52
| | |
52
| | |
39
| | |
199
| | |
147
| |
|
Other
| |
6
|
| |
11
|
| |
8
|
| |
132
|
| |
21
|
|
|
Total interest expense
| |
401
|
| |
383
|
| |
326
|
| |
1,484
|
| |
1,137
|
|
|
Net interest income before provision for credit losses
| |
15,973
| | |
15,907
| | |
15,567
| | |
62,703
| | |
56,239
| |
|
PROVISION FOR (REVERSAL OF) CREDIT LOSSES
| |
—
|
| |
—
|
| |
—
|
| |
50
|
| |
(1,150
|
)
|
|
Net interest income after provision for credit losses
| |
15,973
|
| |
15,907
|
| |
15,567
|
| |
62,653
|
| |
57,389
|
|
|
NON-INTEREST INCOME:
| | | | | | | | | | |
|
Service charges
| |
766
| | |
739
| | |
768
| | |
2,986
| | |
3,053
| |
|
Net realized gains (losses) on sales of credit card portfolio
| |
—
| | |
(116
|
)
| |
—
| | |
462
| | |
—
| |
|
Appreciation in cash surrender value of bank owned life insurance
| |
173
| | |
175
| | |
171
| | |
695
| | |
621
| |
|
Interchange fees
| |
356
| | |
381
| | |
383
| | |
1,462
| | |
1,458
| |
|
Loan placement fees
| |
162
| | |
207
| | |
180
| | |
708
| | |
706
| |
|
Net realized gains (losses) on sales and calls of investment
securities
| |
37
| | |
380
| | |
(6
|
)
| |
1,314
| | |
2,802
| |
| Federal Home Loan Bank dividends
| |
232
| | |
119
| | |
121
| | |
590
| | |
443
| |
|
Other income
| |
678
|
| |
578
|
| |
324
|
| |
2,107
|
| |
1,753
|
|
|
Total non-interest income
| |
2,404
|
| |
2,463
|
| |
1,941
|
| |
10,324
|
| |
10,836
|
|
|
NON-INTEREST EXPENSES:
| | | | | | | | | | |
|
Salaries and employee benefits
| |
6,585
| | |
6,387
| | |
6,874
| | |
26,221
| | |
24,738
| |
|
Occupancy and equipment
| |
1,369
| | |
1,489
| | |
1,510
| | |
5,972
| | |
5,186
| |
|
Acquisition and integration expenses
| |
—
| | |
—
| | |
1,211
| | |
217
| | |
1,828
| |
|
Professional services
| |
331
| | |
343
| | |
405
| | |
1,475
| | |
1,509
| |
|
Data processing expense
| |
407
| | |
409
| | |
490
| | |
1,666
| | |
1,740
| |
|
Directors’ expenses
| |
84
| | |
158
| | |
105
| | |
465
| | |
597
| |
|
ATM/Debit card expenses
| |
170
| | |
192
| | |
197
| | |
739
| | |
750
| |
|
Information technology
| |
492
| | |
186
| | |
228
| | |
1,113
| | |
818
| |
|
Regulatory assessments
| |
143
| | |
154
| | |
170
| | |
619
| | |
652
| |
|
Advertising
| |
189
| | |
192
| | |
154
| | |
758
| | |
638
| |
|
Internet banking expenses
| |
190
| | |
172
| | |
182
| | |
732
| | |
705
| |
|
Amortization of core deposit intangibles
| |
174
| | |
94
| | |
93
| | |
455
| | |
234
| |
|
Other expense
| |
1,276
|
| |
1,015
|
| |
1,490
|
| |
4,636
|
| |
5,011
|
|
|
Total non-interest expenses
| |
11,410
|
| |
10,791
|
| |
13,109
|
| |
45,068
|
| |
44,406
|
|
|
Income before provision for income taxes
| |
6,967
| | |
7,579
| | |
4,399
| | |
27,909
| | |
23,819
| |
|
PROVISION FOR INCOME TAXES
| |
1,686
|
| |
1,827
|
| |
4,064
|
| |
6,620
|
| |
9,793
|
|
|
Net income
| |
$
|
5,281
|
| |
$
|
5,752
|
| |
$
|
335
|
| |
$
|
21,289
|
| |
$
|
14,026
|
|
| | | | | | | | | |
|
|
Net income per common share:
| | | | | | | | | | |
|
Basic earnings per common share
| |
$
|
0.38
|
| |
$
|
0.42
|
| |
$
|
0.02
|
| |
$
|
1.55
|
| |
$
|
1.12
|
|
|
Weighted average common shares used in basic computation
| |
13,721,087
|
| |
13,715,141
|
| |
13,533,677
|
| |
13,699,823
|
| |
12,472,095
|
|
|
Diluted earnings per common share
| |
$
|
0.38
|
| |
$
|
0.42
|
| |
$
|
0.02
|
| |
$
|
1.54
|
| |
$
|
1.10
|
|
|
Weighted average common shares used in diluted computation
| |
13,834,662
|
| |
13,836,828
|
| |
13,730,434
|
| |
13,825,008
|
| |
12,722,350
|
|
|
Cash dividends per common share
| |
$
|
0.09
|
| |
$
|
0.08
|
| |
$
|
0.06
|
| |
$
|
0.31
|
| |
$
|
0.24
|
|
| | | | | | | | | | | | | | | | | | | |
|
CENTRAL VALLEY COMMUNITY BANCORP CONDENSED CONSOLIDATED INCOME STATEMENTS (Unaudited) |
|
| |
| |
| |
| |
| |
| | Dec. 31, | | Sep. 30 | | Jun. 30, | | Mar. 31 | | Dec. 31, |
| For the three months ended | | 2018 | | 2018 | | 2018 | | 2018 | | 2017 |
| (In thousands, except share and per share amounts) | | | | | | | | | | |
|
Net interest income
| |
$
|
15,973
| | |
$
|
15,907
| | |
$
|
15,397
| | |
$
|
15,426
| | |
$
|
15,567
|
|
Provision for (reversal of) credit losses
| |
|
—
|
| |
|
—
|
| |
|
50
|
| |
|
—
|
| |
|
—
|
|
Net interest income after provision for credit losses
| | |
15,973
| | | |
15,907
| | | |
15,347
| | | |
15,426
| | | |
15,567
|
|
Total non-interest income
| | |
2,404
| | | |
2,463
| | | |
2,686
| | | |
2,771
| | | |
1,941
|
|
Total non-interest expense
| | |
11,410
| | | |
10,791
| | | |
11,499
| | | |
11,368
| | | |
13,109
|
|
Provision for income taxes
| |
|
1,686
|
| |
|
1,827
|
| |
|
1,569
|
| |
|
1,538
|
| |
|
4,064
|
|
Net income
| |
$
|
5,281
|
| |
$
|
5,752
|
| |
$
|
4,965
|
| |
$
|
5,291
|
| |
$
|
335
|
|
Basic earnings per common share
| |
$
|
0.38
|
| |
$
|
0.42
|
| |
$
|
0.36
|
| |
$
|
0.39
|
| |
$
|
0.02
|
|
Weighted average common shares used in basic computation
| |
|
13,721,087
|
| |
|
13,715,141
|
| |
|
13,692,358
|
| |
|
13,669,976
|
| |
|
13,533,677
|
|
Diluted earnings per common share
| |
$
|
0.38
|
| |
$
|
0.42
|
| |
$
|
0.36
|
| |
$
|
0.38
|
| |
$
|
0.02
|
|
Weighted average common shares used in diluted computation
| |
|
13,834,662
|
| |
|
13,836,828
|
| |
|
13,823,278
|
| |
|
13,804,480
|
| |
|
13,730,434
|
| | | | | | | | | | | | | |
|
CENTRAL VALLEY COMMUNITY BANCORP SELECTED RATIOS (Unaudited) |
|
| |
| |
| |
| |
| |
| | Dec. 31, | | Sept. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, |
| As of and for the three months ended | | 2018 | | 2018 | | 2018 | | 2018 | | 2017 |
| (Dollars in thousands, except per share amounts) | | | | | | | | | | |
|
Allowance for credit losses to total loans
| |
0.99
|
%
| |
0.99
|
%
| |
0.95
|
%
| |
0.96
|
%
| |
0.97
|
%
|
|
Non-performing assets to total assets
| |
0.18
|
%
| |
0.27
|
%
| |
0.26
|
%
| |
0.25
|
%
| |
0.18
|
%
|
|
Total non-performing assets
| |
$
|
2,740
| | |
$
|
4,133
| | |
$
|
4,092
| | |
$
|
4,058
| | |
$
|
2,945
| |
|
Total nonaccrual loans
| |
$
|
2,740
| | |
$
|
4,133
| | |
$
|
4,092
| | |
$
|
4,058
| | |
$
|
2,875
| |
|
Net loan charge-offs (recoveries)
| |
$
|
(79
|
)
| |
$
|
(105
|
)
| |
$
|
(82
|
)
| |
$
|
(10
|
)
| |
$
|
138
| |
|
Net charge-offs (recoveries) to average loans (annualized)
| |
(0.03
|
)%
| |
(0.05
|
)%
| |
(0.04
|
)%
| |
—
|
%
| |
0.06
|
%
|
|
Book value per share
| |
$
|
15.98
| | |
$
|
15.47
| | |
$
|
15.32
| | |
$
|
15.12
| | |
$
|
15.30
| |
|
Tangible book value per share
| |
$
|
11.87
| | |
$
|
11.37
| | |
$
|
11.21
| | |
$
|
11.00
| | |
$
|
11.15
| |
|
Tangible common equity
| |
$
|
163,389
| | |
$
|
156,911
| | |
$
|
154,567
| | |
$
|
151,232
| | |
$
|
152,755
| |
|
Cost of total deposits
| |
0.10
|
%
| |
0.10
|
%
| |
0.08
|
%
| |
0.07
|
%
| |
0.08
|
%
|
|
Interest and dividends on investment securities exempt from Federal
income taxes
| |
$
|
530
| | |
$
|
896
| | |
$
|
1,045
| | |
$
|
1,067
| | |
$
|
1,464
| |
|
Net interest margin (calculated on a fully tax equivalent basis) (1)
| |
4.55
|
%
| |
4.53
|
%
| |
4.33
|
%
| |
4.26
|
%
| |
4.34
|
%
|
|
Return on average assets (2)
| |
1.37
|
%
| |
1.48
|
%
| |
1.25
|
%
| |
1.30
|
%
| |
0.08
|
%
|
|
Return on average equity (2)
| |
9.82
|
%
| |
10.80
|
%
| |
9.53
|
%
| |
10.15
|
%
| |
0.64
|
%
|
|
Loan to deposit ratio
| |
71.64
|
%
| |
71.49
|
%
| |
70.60
|
%
| |
65.96
|
%
| |
63.18
|
%
|
|
Efficiency ratio
| |
60.80
|
%
| |
58.65
|
%
| |
62.99
|
%
| |
62.59
|
%
| |
64.20
|
%
|
|
Tier 1 leverage - Bancorp
| |
11.48
|
%
| |
11.16
|
%
| |
10.59
|
%
| |
10.10
|
%
| |
9.71
|
%
|
|
Tier 1 leverage - Bank
| |
11.32
|
%
| |
11.06
|
%
| |
10.44
|
%
| |
9.89
|
%
| |
9.46
|
%
|
|
Common equity tier 1 - Bancorp
| |
15.13
|
%
| |
15.17
|
%
| |
14.35
|
%
| |
14.01
|
%
| |
12.90
|
%
|
|
Common equity tier 1 - Bank
| |
15.38
|
%
| |
15.51
|
%
| |
14.59
|
%
| |
14.17
|
%
| |
12.96
|
%
|
|
Tier 1 risk-based capital - Bancorp
| |
15.59
|
%
| |
15.64
|
%
| |
14.80
|
%
| |
14.47
|
%
| |
13.28
|
%
|
|
Tier 1 risk-based capital - Bank
| |
15.38
|
%
| |
15.51
|
%
| |
14.59
|
%
| |
14.17
|
%
| |
12.96
|
%
|
|
Total risk-based capital - Bancorp
| |
16.44
|
%
| |
16.51
|
%
| |
15.64
|
%
| |
15.30
|
%
| |
14.07
|
%
|
|
Total risk based capital - Bank
| |
16.23
|
%
| |
16.37
|
%
| |
15.43
|
%
| |
15.01
|
%
| |
13.74
|
%
|
|
(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 Years Ended |
| AVERAGE AMOUNTS | | December 31, |
| September 30, |
| December 31, | | December 31, |
| December 31, |
| (Dollars in thousands) | | 2018 | | 2018 | | 2017 | | 2018 | | 2017 |
|
Federal funds sold
| |
$
|
42
| | |
$
|
22
| | |
$
|
7
| | |
$
|
40
| | |
$
|
35
| |
|
Interest-bearing deposits in other banks
| |
25,677
| | |
33,939
| | |
64,830
| | |
24,055
| | |
36,709
| |
|
Investments
| |
468,410
| | |
469,244
| | |
540,937
| | |
502,511
| | |
531,682
| |
|
Loans (1)
| |
910,330
|
| |
910,164
|
| |
887,374
|
| |
908,419
|
| |
790,504
|
|
|
Earning assets
| |
1,404,459
| | |
1,413,369
| | |
1,493,148
| | |
1,435,025
| | |
1,358,930
| |
|
Allowance for credit losses
| |
(9,074
|
)
| |
(9,005
|
)
| |
(8,910
|
)
| |
(8,924
|
)
| |
(9,258
|
)
|
|
Nonaccrual loans
| |
2,586
| | |
4,121
| | |
2,977
| | |
3,709
| | |
2,839
| |
|
Other non-earning assets
| |
143,965
|
| |
147,219
|
| |
157,470
|
| |
147,600
|
| |
139,185
|
|
|
Total assets
| |
$
|
1,541,936
|
| |
$
|
1,555,704
|
| |
$
|
1,644,685
|
| |
$
|
1,577,410
|
| |
$
|
1,491,696
|
|
| | | | | | | | | |
|
|
Interest bearing deposits
| |
$
|
740,143
| | |
$
|
761,736
| | |
$
|
837,904
| | |
$
|
780,449
| | |
$
|
784,318
| |
|
Other borrowings
| |
6,179
|
| |
7,052
|
| |
8,086
|
| |
12,180
|
| |
6,930
|
|
|
Total interest-bearing liabilities
| |
746,322
|
| |
768,788
|
| |
845,990
|
| |
792,629
|
| |
791,248
|
|
|
Non-interest bearing demand deposits
| |
559,653
| | |
553,714
| | |
567,975
| | |
553,305
| | |
499,987
| |
|
Non-interest bearing liabilities
| |
20,859
|
| |
20,174
|
| |
20,047
|
| |
20,152
|
| |
17,954
|
|
|
Total liabilities
| |
1,326,834
|
| |
1,342,676
|
| |
1,434,012
|
| |
1,366,086
|
| |
1,309,189
|
|
|
Total equity
| |
215,102
|
| |
213,028
|
| |
210,673
|
| |
211,324
|
|
|
182,507
|
|
|
Total liabilities and equity
| |
$
|
1,541,936
|
| |
$
|
1,555,704
|
| |
$
|
1,644,685
|
| |
$
|
1,577,410
|
| |
$
|
1,491,696
|
|
| | | | | | | | | |
|
| AVERAGE RATES |
|
|
|
|
|
|
|
|
|
|
|
Federal funds sold
| |
2.20
|
%
| |
1.95
|
%
| |
1.50
|
%
| |
2.10
|
%
| |
1.50
|
%
|
|
Interest-earning deposits in other banks
| |
2.29
|
%
| |
1.99
|
%
| |
1.36
|
%
| |
1.91
|
%
| |
1.16
|
%
|
|
Investments
| |
3.12
|
%
| |
3.13
|
%
| |
3.09
|
%
| |
2.93
|
%
| |
3.19
|
%
|
|
Loans (3)
| |
5.54
|
%
| |
5.53
|
%
| |
5.48
|
%
| |
5.50
|
%
| |
5.51
|
%
|
|
Earning assets
| |
4.67
|
%
| |
4.64
|
%
| |
4.42
|
%
| |
4.54
|
%
| |
4.48
|
%
|
|
Interest-bearing deposits
| |
0.18
|
%
| |
0.17
|
%
| |
0.13
|
%
| |
0.15
|
%
| |
0.12
|
%
|
|
Other borrowings
| |
3.82
|
%
| |
3.52
|
%
| |
2.33
|
%
| |
2.72
|
%
| |
2.42
|
%
|
|
Total interest-bearing liabilities
| |
0.21
|
%
| |
0.20
|
%
| |
0.15
|
%
| |
0.19
|
%
| |
0.14
|
%
|
|
Net interest margin (calculated on a fully tax equivalent basis) (2)
| |
4.55
|
%
| |
4.53
|
%
| |
4.34
|
%
| |
4.44
|
%
| |
4.40
|
%
|
|
(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 $141,
$238, and $754, for the three months ended December 31, 2018,
September 30, 2018, and December 31, 2017, respectively. The Federal
tax benefits relating to income earned on municipal bonds totaled
$940 and $3,551 for the year ended December 31, 2018 and 2017,
respectively.
|
|
(3)
| |
Loan yield includes loan fees (costs) for the three months ended
December 31, 2018, September 30, 2018, and December 31, 2017 of
$(8), $176, and $264, respectively. Loan yield includes loan fees
for the year ended December 31, 2018 and 2017 of $397 and $684,
respectively.
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190123005766/en/
Investor Contact:
Dave Kinross
Executive Vice President and
Chief Financial Officer
Central Valley Community Bancorp
559-323-3420
Media Contact:
Debbie Nalchajian-Cohen
Marketing Director
Central
Valley Community Bancorp
559-222-1322
Source: Central Valley Community Bancorp