FRESNO, CA -- (Marketwired) -- 10/19/16 -- 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 $12,575,000, and diluted earnings per common share of $1.14 for the nine months ended September 30, 2016, compared to $8,061,000 and $0.73 per diluted common share for the nine months ended September 30, 2015.
THIRD QUARTER FINANCIAL HIGHLIGHTS
- The Company recorded a reverse provision for credit losses of $1,000,000 in the third quarter of 2016, compared to a provision of $100,000 during the third quarter of 2015.
- Net loan recoveries in the third quarter of 2016 were $427,000, compared to $279,000 in the third quarter of 2015.
- Net loans increased $32.03 million or 5.44%, while total assets increased $31.04 million or 2.43% at September 30, 2016 compared to December 31, 2015.
- Total cost of funds remained unchanged at 0.09% as compared to the same period in 2015.
- Capital positions remain strong at September 30, 2016 with a 9.35% Tier 1 Leverage Ratio; a 13.80% Common Equity Tier 1 Ratio; a 14.23% Tier 1 Risk-Based Capital Ratio; and a 15.39% Total Risk-Based Capital Ratio.
- The Company completed its acquisition of Sierra Vista Bank on October 1, 2016. Consolidated results of operations and balance sheets reflecting the acquisition will be presented as of and for the quarter ending December 31, 2016.
"We are pleased with the financial results of the third quarter -- a testament to the dedicated efforts of our team during a busy period with the integration of Sierra Vista Bank. The acquisition closed on schedule on October 1, 2016. Signage at our three new Greater Sacramento offices will change during the month of October and the systems conversions are scheduled for early November. The commitment and dedication of our newly combined team continues to be focused on a smooth integration for our new customers. We welcome our new team, customers and shareholders to the Central Valley Community Bank family and look forward to expanding our brand in the Greater Sacramento region where growth and opportunity abounds," stated James M. Ford, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank.
Net income for the period increased 56.00% in 2016 compared to 2015, primarily driven by a decrease in provision for credit losses, as well as an increase in net interest income, partially offset by an increase in non-interest expenses, and an increase in provision for income taxes. During the nine months ended September 30, 2016, the Company recorded a reverse provision for credit losses of $5,850,000, compared to a $600,000 provision during the nine months ended September 30, 2015. Net interest income before the provision for credit losses for the nine months ended September 30, 2016 was $32,806,000, compared to $30,137,000 for the nine months ended September 30, 2015, an increase of $2,669,000 or 8.86%. Net interest income during the first nine months of 2016 and 2015 benefited by approximately $501,000 and $274,000, respectively, in nonrecurring income from prepayment penalties and payoff of loans previously on nonaccrual status. Excluding these benefits, net interest income for the first nine months ended September 30, 2016 increased by $2,442,000 compared to the nine months ended September 30, 2015.
During the nine months ended September 30, 2016, the Company's shareholders' equity increased $16,999,000, or 12.20%. The increase in shareholders' equity was driven by the retention of earnings, net of dividends paid, and an increase in unrealized gains on available-for-sale (AFS) securities recorded in accumulated other comprehensive income (AOCI). The increase in the unrealized gains on AFS securities was partially a result of the reclassification in the first quarter of 2016 of the held-to-maturity (HTM) securities to available-for-sale designation, with $2,272,000 of the $5,988,000 AOCI increase related to the HTM securities transfer.
Annualized return on average equity (ROE) for the nine months ended September 30, 2016 was 11.21%, compared to 8.01% for the nine months ended September 30, 2015. Notwithstanding an increase in shareholders' equity, this increase in ROE was achieved due to an increase in net income. The Company declared and paid $0.18 per share in cash dividends to holders of common stock during the nine months of 2016 compared to $0.12 during the nine months of 2015. Annualized return on average assets (ROA) was 1.31% for the nine months ended September 30, 2016 and 0.89% for the nine months ended September 30, 2015. During the nine months ended September 30, 2016, the Company's total assets increased 2.43%, and total liabilities increased 1.23%, compared to those at December 31, 2015.
Non-performing assets decreased by $776,000, or 32.16%, to $1,637,000 at September 30, 2016, compared to $2,413,000 at December 31, 2015. During the nine months ended September 30, 2016, the Company recorded $5,539,000 in net loan recoveries, compared to $185,000 in net recoveries for the nine months ended September 30, 2015. The net (recovery) charge-off ratio, which reflects annualized net (recoveries) charge-offs to average loans, was (1.20)% for the nine months ended September 30, 2016, compared to (0.04)% for the same period in 2015.
At September 30, 2016, the allowance for credit losses was $9,299,000, compared to $9,610,000 at December 31, 2015, a net decrease of $311,000 reflecting the reverse provision of $5,850,000 and the net recoveries during the period. The allowance for credit losses as a percentage of total loans was 1.48% at September 30, 2016, and 1.61% at December 31, 2015. Total loans included loans acquired in the acquisition of Visalia Community Bank in 2013 ("VCB loans") that were recorded at fair value in connection with the acquisition. The value of the VCB loans totaled $50,568,000 at September 30, 2016 and $62,395,000 at December 31, 2015. Excluding these VCB loans from the calculation, the allowance for credit losses to total gross loans was 1.61% and 1.79% as of September 30, 2016 and December 31, 2015, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 1.59% and 1.79%, respectively. The Company believes the allowance for credit losses is adequate to provide for probable incurred credit losses within the loan portfolio at September 30, 2016.
Total non-performing assets were $1,637,000, or 0.13% of total assets as of September 30, 2016, compared to $2,413,000, or 0.19% of total assets as of December 31, 2015. The following provides a reconciliation of the change in nonaccrual loans for 2016.
Transfer to
Additions Fore-
Balances to closed Returns Balances
Decemb- Nonacc- Collat- to September
er 31, rual Net Pay eral - Accrual Charge 30,
(In thousands) 2015 Loans Downs OREO Status -Offs 2016
------ ------- ------- ------- ------ ------ -------
Nonaccrual loans:
Commercial and
industrial $ -- $ 1,185 $ (279) $ (321) $ -- $ (493) $ 92
Real estate 891 263 (367) -- -- -- 787
Equity loans and
lines of credit 172 373 (80) -- -- (97) 368
Consumer 13 60 (6) (42) -- (18) 7
Restructured loans
(non-accruing):
Commercial and
industrial 29 -- (29) -- -- -- --
Real estate 23 -- (3) -- -- -- 20
Equity loans and
lines of credit 1,285 -- (1,285) -- -- -- --
------ ------- ------- ------- ------ ------ -------
Total nonaccrual $2,413 $ 1,881 $(2,049) $ (363) $ -- $ (608) $ 1,274
====== ======= ======= ======= ====== ====== =======
The Company's net interest margin (fully tax equivalent basis) was 4.05% for the nine months ended September 30, 2016, compared to 4.01% for the nine months ended September 30, 2015. The increase in net interest margin in the period-to-period comparison resulted from an increase in the effective yield on average investment securities, an increase in the yield on the Company's loan portfolio, and a decrease in the Company's cost of funds. Net interest income during the first nine months of 2016 and 2015 benefited by approximately $501,000 and $274,000, respectively, in nonrecurring income from prepayment penalties and payoff of loans previously on nonaccrual status.
For the nine months ended September 30, 2016, the effective yield on total earning assets increased 4 basis points to 4.14% compared to 4.10% for the nine months ended September 30, 2015, while the cost of total interest-bearing liabilities decreased 1 basis point to 0.15% compared to 0.16% for the nine months ended September 30, 2015. The cost of total deposits decreased 1 basis point to 0.08% for the nine months ended September 30, 2016, compared to 0.09% for the nine months ended September 30, 2015.
For the nine months ended September 30, 2016, the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $552,840,000, an increase of $36,597,000, or 7.09%, compared to the nine months ended September 30, 2015. During the nine months ended September 30, 2016, the Company was required to reclassify investment securities totaling $23.1 million from held-to-maturity to available-for-sale designation as a result of the sale of certain investment securities classified as held-to-maturity. The unrealized gain on those securities approximates $3,861,000 as of September 30, 2016.
The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, increased to 2.84% for the nine months ended September 30, 2016, compared to 2.75% for the nine months ended September 30, 2015. Total average loans, which generally yield higher rates than investment securities, increased $27,348,000, from $586,033,000 for the nine months ended September 30, 2015 to $613,381,000 for the nine months ended September 30, 2016. The effective yield on average loans increased to 5.29% for the nine months ended September 30, 2016, compared to 5.26% for the nine months ended September 30, 2015.
Total average assets for the nine months ended September 30, 2016 was $1,276,214,000 compared to $1,209,143,000, for the nine months ended September 30, 2015, an increase of $67,071,000 or 5.55%. During the nine months ended September 30, 2016 and September 30, 2015, the average loan to deposit ratio was 55.57% and 55.64%, respectively. Total average deposits increased $50,448,000 or 4.79% to $1,103,755,000 for the nine months ended September 30, 2016, compared to $1,053,307,000 for the nine months ended September 30, 2015. Average interest-bearing deposits increased $25,245,000, or 3.76%, and average non-interest bearing demand deposits increased $25,203,000, or 6.60%, for the nine months ended September 30, 2016, compared to the nine months ended September 30, 2015. The Company's ratio of average non-interest bearing deposits to total deposits was 36.86% for the nine months ended September 30, 2016, compared to 36.23% for the nine months ended September 30, 2015.
Non-interest income for the nine months ended September 30, 2016 decreased by $155,000 to $7,353,000, compared to $7,508,000 for the nine months ended September 30, 2015, primarily driven by a $160,000 decrease in Federal Home Loan Bank dividends, a $94,000 decrease in service charge income, and a $112,000 decrease in other income, partially offset by an increase of $377,000 in net realized gains on sales and calls of investment securities. The Company also realized $190,000 and $345,000 tax-free gains related to the collection of life insurance proceeds in the nine month period during 2016 and 2015, respectively, which are included in other non-interest income. In addition, the Company recorded an other-than-temporary impairment loss of $136,000 during the nine months ended September 30, 2016.
Non-interest expense for the nine months ended September 30, 2016 increased $995,000, or 3.68%, to $28,008,000 compared to $27,013,000 for the nine months ended September 30, 2015. The net increase year over year was a result of increases in salaries and employee benefits of $832,000, increases in data processing expenses of $283,000, increases in acquisition and integration expenses of $515,000, increases in directors' expenses of $158,000, and increases in ATM/Debit card expenses of $58,000, partially offset by decreases in regulatory assessments of $352,000, decreases in professional services of $241,000, decreases in internet banking expenses of $44,000, decreases in occupancy and equipment expenses of $11,000, and decreases in license and maintenance contracts of $4,000.
The Company recorded an income tax provision of $5,426,000 for the nine months ended September 30, 2016, compared to $1,971,000 for the nine months ended September 30, 2015. The effective tax rate for the nine months ended September 30, 2016 was 30.14% compared to 19.65% for the nine months ended September 30, 2015.
Quarter Ended September 30, 2016
For the quarter ended September 30, 2016, the Company reported unaudited consolidated net income of $3,114,000 and earnings per diluted common share of $0.28, compared to consolidated net income of $2,517,000 and $0.23 per diluted share for the same period in 2015. The increase in net income during the third quarter of 2016 compared to the same period in 2015 is primarily due to a decrease in provision for credit losses, and an increase in net interest income, partially offset by an increase in provision for income taxes and increases in non-interest expense. The Company recorded a $1,000,000 reverse provision for credit losses during the third quarter of 2016 compared to a provision for credit losses of $100,000 during the same period in 2015.
Annualized return on average equity (ROE) for the third quarter of 2016 was 8.01%, compared to 7.47% for the same period of 2015. The increase in ROE reflects an increase in net income, offset by an increase in shareholders' equity. Annualized return on average assets (ROA) was 0.96% for the third quarter of 2016 compared to 0.82% for the same period in 2015. This increase is due to an increase in net income, notwithstanding an increase in average assets.
In comparing the third quarter of 2016 to the third quarter of 2015, average total loans increased by $26,556,000, or 4.44%. During the third quarter of 2016, the Company recorded net loan recoveries of $427,000 compared to $279,000 for the same period in 2015. The net charge-off (recovery) ratio, which reflects annualized net charge-offs to average loans, was (0.27)% for the quarter ended September 30, 2016 compared to (0.19)% for the quarter ended September 30, 2015.
The following provides a reconciliation of the change in nonaccrual loans for the quarter ended September 30, 2016.
Transfer to
Additions Fore-
Balances to closed Returns Balances
June Nonacc- Collat- to Septem-
(Dollars in 30, rual Net Pay eral - Accrual Charge ber 30,
thousands) 2016 Loans Downs OREO Status -Offs 2016
------ ------- ------- ------- ------ ------ -------
Nonaccrual loans:
Commercial and
industrial $ 907 $ 92 $ (93) $ (321) $ -- $ (493) $ 92
Real estate 721 92 (26) -- -- -- 787
Equity loans and
lines of credit 92 278 (2) -- -- -- 368
Consumer 9 60 (2) (42) -- (18) 7
Restructured loans
(non-accruing):
Real estate 21 -- (1) -- -- -- 20
------ ------- ------- ------- ------ ------ -------
Total nonaccrual $1,750 $ 522 $ (124) $ (363) $ -- $ (511) $ 1,274
====== ======= ======= ======= ====== ====== =======
Average total deposits for the third quarter of 2016 increased $42,465,000 or 3.95% to $1,117,123,000 compared to $1,074,658,000 for the same period of 2015.
The Company's net interest margin (fully tax equivalent basis) was 4.01% for the quarter ended September 30, 2016, compared to 4.01% for the quarter ended September 30, 2015. Net interest income, before provision for credit losses, increased $643,000, or 6.21%, to $10,995,000 for the third quarter of 2016, compared to $10,352,000 for the same period in 2015. The net interest margin period-to-period comparisons showed an increase in the yield on the average investment securities, no change in the yield on the Company's loan portfolio, and no change in the Company's cost of funds. Over the same periods, the cost of total deposits remained unchanged at 0.09% as compared to 2015.
For the quarter ended September 30, 2016, the Company's average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased by $32,621,000, or 6.18%, compared to the quarter ended September 30, 2015 and increased by $21,760,000, or 4.04%, compared to the quarter ended June 30, 2016.
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 September 30, 2016, compared to 2.80% for the quarter ended September 30, 2015 and 2.91% for the quarter ended June 30, 2016. Total average loans, which generally yield higher rates than investment securities, increased by $26,556,000 to $624,284,000 for the quarter ended September 30, 2016, from $597,728,000 for the quarter ended September 30, 2015 and increased by $4,021,000 from $620,263,000 for the quarter ended June 30, 2016. The effective yield on average loans was 5.18% for the quarter ended September 30, 2016, compared to 5.18% and 5.45% for the quarters ended September 30, 2015 and June 30, 2016, respectively.
Net income for the immediately trailing quarter ended June 30, 2016 was $6,058,000, or $0.55 per diluted common share. Total average assets for the quarter ended September 30, 2016 were $1,297,207,000 compared to $1,230,687,000 for the quarter ended September 30, 2015 and $1,267,643,000 for the quarter ended June 30, 2016, an increase of $66,520,000 and $29,564,000, or 5.41% and 2.33%, respectively.
Total average deposits increased $42,465,000, or 3.95%, to $1,117,123,000 for the quarter ended September 30, 2016, compared to $1,074,658,000 for the quarter ended September 30, 2015. Total average deposits increased $21,723,000, or 1.98%, for the quarter ended September 30, 2016, compared to $1,095,400,000 for the quarter ended June 30, 2016. The Company's ratio of average non-interest bearing deposits to total deposits was 36.88% for the quarter ended September 30, 2016, compared to 37.35% and 36.11% for the quarters ended September 30, 2015 and June 30, 2016, respectively.
Non-interest income increased $413,000, or 23.98%, to $2,135,000 for the third quarter of 2016 compared to $1,722,000 for the same period in 2015. The third quarter 2016 non-interest income included $286,000 net realized gains on sales and calls of investment securities compared to none for the same period in 2015. For the quarter ended September 30, 2016, service charge income increased $43,000, and interchange fee income increased $15,000 while, FHLB dividends decreased $10,000, and appreciation in cash surrender value of bank owned life insurance decreased $11,000, compared to the same period in 2015. Non-interest income for the quarter ended September 30, 2016 decreased by $379,000 to $2,135,000, compared to $2,514,000 for the quarter ended June 30, 2016. The decrease, as compared to the trailing quarter, is primarily due to a $134,000 decrease in realized gains on sales and calls of investment securities and a $345,000 decrease in other income, partially offset by a $93,000 increase in loan placement fees.
Non-interest expense for the quarter ended September 30, 2016 increased $627,000, or 6.95%, to $9,655,000 compared to $9,028,000 for the quarter ended September 30, 2015. The net increase quarter over quarter was a result of increases in salaries and employee benefits of $354,000, increases in acquisition and integration expenses of $363,000, an increase in data processing expenses of $103,000 and an increase in directors' expenses of $39,000, offset by, a decrease of $89,000 in regulatory assessments, a decrease of $49,000 in professional services, and a decrease of $51,000 in amortization of core deposit intangibles. Non-interest expense for the quarter ended September 30, 2016 increased by $278,000 compared to $9,377,000 for the trailing quarter ended June 30, 2016. The increase, as compared to the trailing quarter, is primarily due to a $211,000 increase in acquisition costs and a $166,000 increase in salaries and benefits, partially offset by $56,000 and $58,000 decreases in occupancy and regulatory assessment expenses, respectively.
The Company recorded an income tax provision of $1,361,000 for the quarter ended September 30, 2016, compared to $429,000 for the quarter ended September 30, 2015. The effective tax rate for the quarter ended September 30, 2016 was 30.41%.
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 23 full service offices in Cameron Park, Clovis, Exeter, Fair Oaks, Fresno, Folsom, 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.
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, Gary D. Gall, Steven D. McDonald, Louis McMurray, William S. Smittcamp, and Joseph B. Weirick. 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, 2015. 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)
September 30, December 31,
(In thousands, except share amounts) 2016 2015
-------------- --------------
ASSETS
Cash and due from banks $ 23,274 $ 23,339
Interest-earning deposits in other banks 21,803 70,988
Federal funds sold 1 290
-------------- --------------
Total cash and cash equivalents 45,078 94,617
Available-for-sale investment securities
(Amortized cost of $533,044 at September 30,
2016 and $470,080 at December 31, 2015) 551,075 477,554
Held-to-maturity investment securities (Fair
value of $35,142 at December 31, 2015) -- 31,712
Loans, less allowance for credit losses of
$9,299 at September 30, 2016 and $9,610 at
December 31, 2015 620,528 588,501
Bank premises and equipment, net 8,906 9,292
Bank owned life insurance 20,377 20,702
Federal Home Loan Bank stock 4,823 4,823
Goodwill 29,917 29,917
Core deposit intangibles 922 1,024
Accrued interest receivable and other assets 26,149 18,594
-------------- --------------
Total assets $ 1,307,775 $ 1,276,736
============== ==============
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 423,183 $ 428,773
Interest bearing 704,314 687,494
-------------- --------------
Total deposits 1,127,497 1,116,267
Junior subordinated deferrable interest
debentures 5,155 5,155
Accrued interest payable and other liabilities 18,801 15,991
-------------- --------------
Total liabilities 1,151,453 1,137,413
-------------- --------------
Shareholders' equity:
Common stock, no par value; 80,000,000 shares
authorized; issued and outstanding:
11,081,854 at September 30, 2016 and
10,996,773 at December 31, 2015 54,846 54,424
Retained earnings 91,026 80,437
Accumulated other comprehensive income, net of
tax 10,450 4,462
-------------- --------------
Total shareholders' equity 156,322 139,323
-------------- --------------
Total liabilities and shareholders'
equity $ 1,307,775 $ 1,276,736
============== ==============
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
------------------------ ------------------------
(In thousands, except
share and per share
amounts) 2016 2015 2016 2015
----------- ----------- ----------- -----------
INTEREST INCOME:
Interest and fees on
loans $ 8,112 $ 7,747 $ 24,208 $ 22,677
Interest on deposits in
other banks 71 49 210 147
Interest and dividends
on investment
securities:
Taxable 1,500 1,234 4,486 3,477
Exempt from Federal
income taxes 1,582 1,593 4,680 4,627
----------- ----------- ----------- -----------
Total interest
income 11,265 10,623 33,584 30,928
----------- ----------- ----------- -----------
INTEREST EXPENSE:
Interest on deposits 240 246 690 718
Interest on junior
subordinated deferrable
interest debentures 30 25 88 73
----------- ----------- ----------- -----------
Total interest
expense 270 271 778 791
----------- ----------- ----------- -----------
Net interest income
before provision for
credit losses 10,995 10,352 32,806 30,137
PROVISION FOR CREDIT
LOSSES (1,000) 100 (5,850) 600
----------- ----------- ----------- -----------
Net interest income
after provision for
credit losses 11,995 10,252 38,656 29,537
----------- ----------- ----------- -----------
NON-INTEREST INCOME:
Service charges 743 700 2,227 2,321
Appreciation in cash
surrender value of bank
owned life insurance 131 142 411 451
Interchange fees 312 297 904 881
Loan placement fees 347 241 792 794
Net gain on disposal of
other real estate owned -- -- -- 11
Net realized gains on
sales and calls of
investment securities 286 -- 1,836 1,459
Other-than-temporary
impairment loss on
investment securities -- -- (136) --
Federal Home Loan Bank
dividends 110 120 314 474
Other income 206 222 1,005 1,117
----------- ----------- ----------- -----------
Total non-interest
income 2,135 1,722 7,353 7,508
----------- ----------- ----------- -----------
NON-INTEREST EXPENSES:
Salaries and employee
benefits 5,608 5,254 16,304 15,472
Occupancy and equipment 1,124 1,204 3,511 3,522
Professional services 346 395 971 1,212
Data processing expense 390 287 1,145 862
Directors' expenses 163 124 474 316
ATM/Debit card expenses 159 145 469 411
License & maintenance
contracts 125 123 388 392
Regulatory assessments 134 223 469 821
Advertising 131 157 444 474
Internet banking
expenses 170 167 497 541
Acquisition and
integration 363 -- 515 --
Amortization of core
deposit intangibles 34 85 102 253
Other expense 908 864 2,719 2,737
----------- ----------- ----------- -----------
Total non-interest
expenses 9,655 9,028 28,008 27,013
----------- ----------- ----------- -----------
Income before
provision for
income taxes 4,475 2,946 18,001 10,032
PROVISION FOR INCOME TAXES 1,361 429 5,426 1,971
----------- ----------- ----------- -----------
Net income $ 3,114 $ 2,517 $ 12,575 $ 8,061
=========== =========== =========== ===========
Net income per common
share:
Basic earnings per
common share $ 0.28 $ 0.23 $ 1.15 $ 0.74
=========== =========== =========== ===========
Weighted average common
shares used in basic
computation 10,984,141 10,938,160 10,969,633 10,928,780
=========== =========== =========== ===========
Diluted earnings per
common share $ 0.28 $ 0.23 $ 1.14 $ 0.73
=========== =========== =========== ===========
Weighted average common
shares used in diluted
computation 11,092,674 11,024,954 11,068,045 11,012,024
=========== =========== =========== ===========
Cash dividends per common
share $ 0.06 $ 0.06 $ 0.18 $ 0.12
=========== =========== =========== ===========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
For the three
months ended 2016 2016 2016 2015 2015
----------- ----------- ----------- ----------- -----------
(In
thousands,
except share
and per
share
amounts)
Net interest
income $ 10,995 $ 11,208 $ 10,603 $ 10,638 $ 10,352
Provision for
credit
losses (1,000) (4,600) (250) -- 100
----------- ----------- ----------- ----------- -----------
Net interest
income after
provision
for credit
losses 11,995 15,808 10,853 10,638 10,252
Total non-
interest
income 2,135 2,514 2,704 1,879 1,722
Total non-
interest
expense 9,655 9,377 8,976 9,003 9,028
Provision for
income taxes 1,361 2,887 1,178 611 429
----------- ----------- ----------- ----------- -----------
Net income $ 3,114 $ 6,058 $ 3,403 $ 2,903 $ 2,517
=========== =========== =========== =========== ===========
Basic
earnings per
common share $ 0.28 $ 0.55 $ 0.31 $ 0.27 $ 0.23
=========== =========== =========== =========== ===========
Weighted
average
common
shares used
in basic
computation 10,984,141 10,970,782 10,953,845 10,941,280 10,938,160
=========== =========== =========== =========== ===========
Diluted
earnings per
common share $ 0.28 $ 0.55 $ 0.31 $ 0.26 $ 0.23
=========== =========== =========== =========== ===========
Weighted
average
common
shares used
in diluted
computation 11,092,674 11,067,890 11,040,790 11,030,470 11,024,954
=========== =========== =========== =========== ===========
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Sep. 30, Jun. 30, Mar. 31, Dec. 31, Sep. 30,
As of and for the
three months ended 2016 2016 2016 2015 2015
-------- -------- -------- -------- --------
(Dollars in
thousands, except
per share amounts)
Allowance for credit
losses to total
loans 1.48% 1.56% 1.66% 1.61% 1.52%
Non-performing assets
to total assets 0.13% 0.14% 0.29% 0.19% 0.20%
Total non-performing
assets $ 1,637 $ 1,750 $ 3,679 $ 2,413 $ 2,494
Total nonaccrual
loans $ 1,274 $ 1,750 $ 3,679 $ 2,413 $ 2,494
Net loan charge-offs
(recoveries) $ (427) $ (4,336) $ (776) $ (517) $ (279)
Net charge-offs
(recoveries) to
average loans
(annualized) (0.27)% (2.80)% (0.52)% (0.35)% (0.19)%
Book value per share $ 14.11 $ 14.21 $ 13.22 $ 12.67 $ 12.50
Tangible book value
per share $ 11.32 $ 11.41 $ 10.42 $ 9.86 $ 9.68
Tangible common
equity $125,483 $125,802 $114,872 $108,382 $106,445
Cost of total
deposits 0.09% 0.08% 0.08% 0.08% 0.09%
Interest and
dividends on
investment
securities exempt
from Federal income
taxes $ 1,582 $ 1,575 $ 1,523 $ 1,688 $ 1,593
Net interest margin
(calculated on a
fully tax equivalent
basis) (1) 4.01% 4.18% 3.97% 4.01% 4.01%
Return on average
assets (2) 0.96% 1.91% 1.08% 0.92% 0.82%
Return on average
equity (2) 8.01% 16.24% 9.47% 8.42% 7.47%
Loan to deposit ratio 55.86% 56.83% 55.19% 53.58% 55.76%
Tier 1 leverage -
Bancorp 9.35% 9.34% 8.91% 8.65% 8.68%
Tier 1 leverage -
Bank 8.40% 8.78% 8.83% 8.58% 8.55%
Common equity tier 1
- Bancorp 13.80% 13.90% 13.45% 13.44% 13.18%
Common equity tier 1
- Bank 12.93% 13.49% 13.78% 13.67% 13.34%
Tier 1 risk-based
capital - Bancorp 14.23% 14.35% 13.91% 13.79% 13.54%
Tier 1 risk-based
capital - Bank 12.93% 13.49% 13.78% 13.67% 13.34%
Total risk-based
capital - Bancorp 15.39% 15.61% 15.17% 15.04% 14.76%
Total risk based
capital - Bank 14.10% 14.75% 15.04% 14.93% 14.57%
(1) Net Interest Margin is computed by dividing annualized quarterly net
interest income by quarterly average interest-bearing assets.
(2) Computed by annualizing quarterly net income.
CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
For the Three Months For the Nine Months
AVERAGE AMOUNTS Ended September 30, Ended September 30,
------------------------ ------------------------
(Dollars in thousands) 2016 2015 2016 2015
----------- ----------- ----------- -----------
Federal funds sold $ 74 $ 249 $ 150 $ 242
Interest-bearing
deposits in other banks 54,618 60,569 53,613 62,664
Investments 505,635 466,888 499,077 453,337
Loans (1) 622,955 593,395 610,932 576,356
Federal Home Loan Bank
stock 4,823 4,823 4,825 4,810
----------- ----------- ----------- -----------
Earning assets 1,188,105 1,125,924 1,168,597 1,097,409
Allowance for credit
losses (9,982) (8,857) (10,353) (8,782)
Nonaccrual loans 1,329 4,333 2,449 9,677
Other real estate owned 150 -- 50 45
Other non-earning assets 117,605 109,287 115,471 110,794
----------- ----------- ----------- -----------
Total assets $ 1,297,207 $ 1,230,687 $ 1,276,214 $ 1,209,143
=========== =========== =========== ===========
Interest bearing
deposits $ 705,080 $ 673,273 $ 696,899 $ 671,654
Other borrowings 5,155 5,155 5,155 5,156
----------- ----------- ----------- -----------
Total interest-bearing
liabilities 710,235 678,428 702,054 676,810
----------- ----------- ----------- -----------
Non-interest bearing
demand deposits 412,043 401,385 406,856 381,653
Non-interest bearing
liabilities 19,334 16,165 17,756 16,571
----------- ----------- ----------- -----------
Total liabilities 1,141,612 1,095,978 1,126,666 1,075,034
----------- ----------- ----------- -----------
Total equity 155,595 134,709 149,548 134,109
----------- ----------- ----------- -----------
Total liabilities and
equity $ 1,297,207 $ 1,230,687 $ 1,276,214 $ 1,209,143
=========== =========== =========== ===========
AVERAGE RATES
----------- ----------- ----------- -----------
Federal funds sold 0.50% 0.25% 0.50% 0.25%
Interest-earning
deposits in other banks 0.52% 0.32% 0.52% 0.31%
Investments 3.08% 3.12% 3.09% 3.08%
Loans (3) 5.18% 5.18% 5.29% 5.26%
Earning assets 4.10% 4.11% 4.14% 4.10%
Interest-bearing
deposits 0.14% 0.14% 0.13% 0.14%
Other borrowings 2.33% 1.90% 2.28% 1.89%
Total interest-bearing
liabilities 0.15% 0.16% 0.15% 0.16%
Net interest margin
(calculated on a fully
tax equivalent basis)
(2) 4.01% 4.01% 4.05% 4.01%
(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 $815 and $820
for the three months ended September 30, 2016 and 2015, respectively.
The Federal tax benefits relating to income earned on municipal bonds
totaled $2,411 and $2,383 for the nine months ended September 30, 2016
and 2015, respectively.
(3) Loan yield includes loan (costs) fees for the three months ended
September 30, 2016 and 2015 of $(53) and $(54), respectively. Loan yield
includes loan (costs) fees for the nine months ended September 30, 2016
and 2015 of $(31) and $96 respectively.
