Central Valley Community Bancorp Reports Earnings Growth for First Quarter 2006.CLOVIS Clovis. 1 City (1990 pop. 50,323), Fresno co., S central Calif., near the foothills of the Sierra Nevada range; inc. 1912. It is a growing trade center in a farm and vineyard area; the population more than tripled from 1970 to 1990. , Calif. -- The Board of Directors of Central Valley Community Bancorp (Company) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CVCY), the parent company of Central Valley Community Bank (Bank), are extremely pleased to report that unaudited consolidated net income for the first three months of 2006 exceeded the first quarter of 2005 by 20%. The net income reflects a $400,000 addition to the allowance for credit losses. Diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. EPS (Encapsulated PostScript) A PostScript file format used to transfer a graphic image between applications and platforms. EPS files contain PostScript code as well as an optional preview image in TIFF, WMF, PICT or EPSI, the latter being an ASCII-only format. for the first three months of 2006 was $0.22 compared to $0.19 for the first three months of 2005. Net income for the first three months of 2006 was $1,430,000 compared to $1,194,000 for the same period in 2005. Return on average equity for the first three months of 2006 was 13.40% compared to 13.22% for the same period of 2005. Return on average assets was 1.22% for the first quarter of 2006 compared to 1.08% for the same period in 2005. "First quarter 2006 launched the year with strong earnings performance, the opening of the Bank's tenth office in Downtown Fresno Fresno (frĕz`nō), city (1990 pop. 354,202), seat of Fresno co., S central Calif.; inc. 1885. Settled in 1872 as a station on the Central Pacific RR, Fresno profited from irrigated farming as early as the 1880s. in February February: see month. , and the announcement of plans to expand our service area in Fresno's Sunnyside Sunnyside may refer to the following: Communities and neighborhoods in the United States
Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval office by the end of the year," said Daniel Daniel, book of the Bible Daniel, book of the Bible. It combines "court" tales, perhaps originating from the 6th cent. B.C., and a series of apocalyptic visions arising from the time of the Maccabean emergency (167–164 B.C. J. Doyle Doyle , Sir Arthur Conan 1859-1930. British writer known chiefly for a series of stories featuring the brilliant detective Sherlock Holmes, including The Hound of the Baskervilles (1902). , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of Central Valley Community Bancorp and Central Valley Community Bank. In comparing first quarter 2006 to first quarter 2005, total loans continued to grow at a double-digit dou·ble-dig·it adj. Being between 10 and 99 percent: double-digit inflation. pace. Average total loans increased $38,477,000 or 15% in the first three months of 2006 compared to the first three months of 2005. Asset quality continues to be strong. The Company had one non-accrual loan at March 31, 2006 totaling $591,000, compared to three loans totaling $1,308,000 at March 31, 2005, and had no real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most at March 31, 2006 or 2005. In the first quarter of 2006, the Company recorded a charge-off Eliminate or write off. The term charge-off is used to describe the process of removing from the records of a company something that was once regarded as an asset but has subsequently become worthless. , related to one commercial relationship in the Sacramento Sacramento, city, United States Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. area. The addition of $400,000 to the allowance for credit losses was to restore the allowance for the charge-off and to accommodate loan growth over the past year. Average deposits for the first quarter of 2006 were $417,555,000 compared to $395,840,000 for the same period of 2005, a 5% increase. The Company's net interest margin (fully tax equivalent basis) increased 55 basis points in the periods under review, as total average interest earning assets Earning Assets Any income-earning asset owned by a company. Notes: These assets are generally interest-bearing accounts, bonds, and securities available for sale. See also: Asset, Asset Valuation, Earnings, Net Interest Margin increased $26,134,000, from $402,252,000 for the first quarter of 2005 to $428,386,000 for the first quarter of 2006. Non-interest income increased 14.6% in the periods under review mostly due to a gain on sale of investments as the Company repositioned its short term municipal portfolio and realized a gain of $125,000. Non-interest expense increased 6.6% mainly due to salary expenses from an increase in the number of employees and ordinary increases in salaries and benefits. The influence of the Company's agricultural portfolio, particularly for raisins and nuts, is reflected in the differences in loan and deposit volumes from December December: see month. 31, 2005 to March 31, 2006. Generally, agricultural processors sell the crops harvested in the fourth quarter of each year and hold the funds to be disbursed to the farmers until the first quarter of the following year, creating a temporary increase in deposits. In the first quarter of each year, the farmers then pay down their agricultural loans with their crop proceeds. This trend is reflected in the first quarter loan and deposit numbers. Total assets decreased 2.0% during the first three months of 2006 from $483,677,000 as of December 31, 2005, to $474,151,000 as of March 31, 2006. Total gross loans decreased 2.7% to $293,618,000 as of March 31, 2006, compared to $301,802,000 as of December 31, 2005. Total deposits decreased 2.5% to $420,101,000 as of March 31, 2006, compared to $430,989,000 as of December 31, 2005. The agricultural borrowings are expected to increase as the farmers begin their new crop year. The loan to deposit ratio at March 31, 2006 was 69.9% compared to 70.0% at December 31, 2005. Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank, headquartered in Clovis, California Clovis is a city in Fresno County, California, North East of Fresno. As of 2006, the city had an estimated population of 89,924. History The City of Clovis began as a freight stop along the San Joaquin Valley Railroad. , was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank currently operates ten full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. offices in Clovis, Fresno, Kerman, Madera, Oakhurst, Prather and Sacramento. An eleventh office is currently scheduled to open in the Sunnyside area of Fresno by the end of 2006. Additionally, the Bank operates Real Estate Lending, SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government Lending and Agribusiness agribusiness Agriculture operated by business; specifically, that part of a modern national economy devoted to the production, processing, and distribution of food and fibre products and byproducts. Lending Departments. Investment services are also provided by Investment Centers of America. Members of Central Valley Community Bancorp's and the Bank's Board of Directors are: Daniel N. Cunningham (Chairman), Sidney B. Cox, Edwin S Edwin or Eadwin (both: ĕd`wĭn), 585?–632, king of Northumbria (616–32), The son and heir of Ælla, king of Deira, he was kept from his inheritance by Æthelfrith. . Darden, Jr., Daniel J. Doyle, Steven D. McDonald, Louis McMurray, Wanda L. Rogers, William S William, crown prince of Germany William or Frederick William, 1882–1951, crown prince of Germany, son of William II. In World War I he commanded (1914) an army on the Western Front and was nominal commander in the German attack . Smittcamp, and Joseph B. Weirick. More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Forward-looking Statements- Certain matters discussed in this press release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All statements contained herein that are not historical facts, such as statements regarding the Company's current business strategy and the Company's plans for future development and operations, are based upon current expectations. These statements are forward-looking in nature and involve a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to (1) significant increases in competitive pressure in the banking industry; (2) the impact of changes in interest rates, a decline in economic conditions at the international, national or local level on the Company's results of operations, the Company's ability to continue its internal growth at historical rates, the Company's ability to maintain its net interest margin, and the quality of the Company's earning assets; (3) changes in the regulatory environment; (4) fluctuations in the real estate market; (5) changes in business conditions and inflation; (6) changes in securities markets; and (7) the other risks set forth in the Company's reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2005. 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
CONDENSED CONSOLIDATED BALANCE SHEET
March 31, December 31, March 31,
(In thousands, except share amounts) 2006 2005 2005
----------------------------------------------------------------------
ASSETS
Cash and deposits in other banks $19,478 $23,083 $18,807
Federal funds sold 31,315 29,830 25,398
Available-for-sale investment
securities 106,116 105,592 118,950
Loans, less allowance for credit
losses of $3,195 at March 31, 2006,
$3,339 at Dec. 31, 2005 and $3,457
at March 31, 2005 290,423 298,463 259,767
Bank premises and equipment, net 3,078 2,912 3,080
Goodwill and intangible assets 10,166 10,241 10,401
Accrued interest receivable and other
assets 13,575 13,556 13,148
------ ------ ------
Total assets $474,151 $483,677 $449,551
======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $131,534 $153,004 $123,902
Interest bearing 288,567 277,985 278,829
-------- -------- --------
Total deposits 420,101 430,989 402,731
Borrowings 4,188 6,500 6,500
Accrued interest payable and other
liabilities 6,848 4,665 4,330
-------- -------- --------
Total liabilities 431,137 442,154 413,561
-------- -------- --------
Shareholders equity:
Common Stock and paid-in capital,
80,000,000 shares authorized;
outstanding 5,923,540,
5,891,820, and 5,781,860 13,287 13,053 12,437
Retained earnings 30,407 28,977 24,127
Accumulated other comprehensive
loss, net of taxes (680) (507) (574)
-------- -------- --------
Total shareholders' equity 43,014 41,523 35,990
-------- -------- --------
Total liabilities and
shareholders' equity $474,151 $483,677 $449,551
======== ======== ========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
March Dec. Sept. June March
31, 31, 30, 30, 31,
For the three months ended 2006 2005 2005 2005 2005
----------------------------------------------------------------------
(In thousands except per share amounts)
Net interest income $5,965 $5,945 $5,592 $5,357 $5,037
Provision for credit losses 400 500 10 - -
----- ----- ----- ----- -----
Net interest income after
provision for credit losses 5,565 5,445 5,582 5,357 5,037
Total non-interest income 980 933 960 1,012 855
Total non-interest expense 4,320 3,811 3,953 3,978 4,051
Provision for income taxes 795 899 940 858 647
----- ----- ----- ----- -----
Net income $1,430 $1,668 $1,649 $1,533 $1,194
===== ===== ===== ===== =====
Basic earnings per share $0.24 $0.28 $0.28 $0.26 $0.21
===== ===== ===== ===== =====
Diluted earnings per share $0.22 $0.25 $0.26 $0.24 $0.19
===== ===== ===== ===== =====
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
March Dec. Sept. June March
31, 31, 30, 30, 31,
For the three months ended 2006 2005 2005 2005 2005
----------------------------------------------------------------------
(Dollars in thousands)
Allowance for credit losses to total
loans 1.09% 1.11% 1.21% 1.26% 1.31%
Nonperforming loans to total loans 0.20% 0.20% 0.20% 0.36% 0.50%
Total nonperforming assets $591 $616 $591 $1,023 $1,308
Net interest margin (calculated
on a fully tax equivalent basis) 5.74% 5.65% 5.57% 5.40% 5.19%
Return on average assets 1.22% 1.41% 1.45% 1.36% 1.08%
Return on average equity 13.40% 16.26% 16.67% 16.15% 13.22%
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