Central Valley Community Bancorp Reports Earnings Growth for Second 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), reported today unaudited consolidated net income of $1,669,000, or $0.26 per 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. share, for the quarter ended June June: see month. 30, 2006, representing an increase of 8.87%, compared to $1,533,000, or $0.24 per diluted share, for the same period in 2005. The net income includes a $100,000 pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta addition to the allowance for credit losses. There was no provision for the same period in 2005. The increase in net income is primarily a result of the growth in average 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 and the increases in interest rates which continue to have an overall positive impact on the net interest margin. These increases were partially offset by increases in non-interest expenses. In comparing the second quarter 2006 to 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 $31,163,000, or 11.48% in the three months ended June 30, 2006, compared to the same period in 2005. Asset quality continues to be strong. The Company had one non-accrual loan at June 30, 2006 totaling $29,000, compared to one non-accrual loan totaling $591,000 at June 30, 2005. The Company did not have any Other 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 June 30, 2006, compared to a balance of $432,000 as of June 30, 2005. During the second quarter of 2006, the Company recorded $130,000 in net recoveries of credit losses. Average deposits for the second quarter of 2006 were relatively unchanged at $403,209,000 compared to $402,542,000 for the same period of 2005. However, as a result of the increased interest rate environment a portion of the deposits appear to be moving to the higher yielding equity markets, with deposits at June 30, 2006 declining by $30,262,000 or 7.02% compared to deposits at December December: see month. 31, 2005. Management believes that core customer relationships are not adversely affected by this trend. Annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. return on average equity for the second quarter of 2006 was 15.41%, compared to 16.15% for the same period of 2005. This decrease is reflective Refers to light hitting an opaque surface such as a printed page or mirror and bouncing back. See reflective media and reflective LCD. of an increase in capital primarily from net income included in retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . Annualized return on average assets was 1.45% for the second quarter of 2006 compared to 1.36% for the same period in 2005. The Company's net interest margin (fully tax equivalent basis) increased 44 basis points from 5.40% for the three months ended June 30, 2005 to 5.84% for the three months ended June 30, 2006. This increase was due primarily to the increase in total average interest earning assets of $16,609,000 or 4.07%, from $407,780,000 for the second quarter of 2005 to $424,389,000 for the second quarter of 2006, coupled with the recent interest rate increases on the Company's variable-rate loan Variable-rate loan Loan made at an interest rate that fluctuates depending on a base interest rate, such as the prime rate or LIBOR. portfolio. Net interest income increased 12.84% for the second quarter of 2006, compared to the same period in 2005. In spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite the significant increase in interest expense during the current quarter, the Company still maintains a favorable position Noun 1. favorable position - the quality of being at a competitive advantage favourable position, superiority advantage, vantage - the quality of having a superior or more favorable position; "the experience gave him the advantage over me" relative to its peers in interest expense primarily due to the relatively high level (33%) of non-interest bearing deposits. Non-interest income increased 4.94% during the second quarter of 2006 compared to the same period in 2005. Comparing the two periods, non-interest expense increased 9.65% mainly due to salary expenses from an increase in the number of employees, ordinary increases in salaries and benefits, and incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. Incremental cost is additional or increased cost of an item or service apart from its actual cost. expenses from newly opened branches. For the six-month period ended June 30, 2006, the Company reported net income of $3,099,000, or $0.48 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of , compared to $2,727,000, or $0.43 diluted earnings per share in the same period of 2005, representing an increase of 13.64%. Results for the first six months of 2006 included $500,000 pre tax addition to the provision for credit losses compared to no provision in 2005. In the first half of 2006, the Company recorded a $527,000 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. The addition of $500,000 to the allowance for credit losses was to restore the allowance to the level of estimated reserves for probable losses in the portfolio. The Company's net interest margin (fully tax equivalent basis) increased 49 basis points from 5.30% for the six months ended June 30, 2005 to 5.79% for the six months ended June 30, 2006. Net interest income for the six months ended June 30, 2006 was $12,010,000, compared to $10,394,000 for the same period in 2005, an increase of $1,616,000 or 15.55%. The increase in net interest income is primarily the result of increased levels of earning assets coupled with increases in interest rates. Non-interest income for the six months ended June 30, 2006 increased $175,000 or 9.37% compared to the same period in 2005 mainly due to gains from the sales of certain investment securities, as well as increases in bank card merchant fees. Non-interest expenses for the six months ended June 30, 2006 increased $653,000, or 8.13% compared to the same period in 2005, mainly due to salary expenses from an increase in the number of employees, ordinary increases in salaries and benefits and incremental expenses from newly opened branches. For the six-month period ended June 30, 2006, annualized return on average equity was 14.30%, compared to 14.72% for the same period of 2005. This decrease is reflective of an increase in capital primarily from net income included in retained earnings. Annualized return on average assets was 1.33% for the first half of 2006, compared to 1.22% for the same period in 2005. "The second quarter of 2006 reflects continued strong earnings even with the impact of the Federal Reserve increasing rates seventeen times in the past two years," 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. "During the second quarter we broke ground on our eleventh In music or music theory an eleventh is the note eleven scale degrees from the root of a chord and also the interval between the root and the eleventh. Since there are only seven degrees in a diatonic scale the eleventh degree is the same as the subdominant and the interval office in the Sunnyside Sunnyside may refer to the following: Communities and neighborhoods in the United States
2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of our Kerman Kerman (kĕrmän`), city (1991 pop. 311,643), capital of Kerman prov., E central Iran. It is noted for making and exporting carpets. Cotton textiles and goats-wool shawls are also manufactured. office into a new Company-owned facility that will begin construction in the third quarter of 2006. Both of these new facilities will help compliment Not to be confused with Complement. Compliment may be
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 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 http://www.cvcb.com. 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. -- Certain matters discussed in this press release constitute forward-looking statements 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
(Unaudited)
----------------------------------------------------------------------
June 30, December 31, June 30,
(In thousands, except share amounts) 2006 2005 2005
----------------------------------------------------------------------
ASSETS
Cash and deposits in other banks $ 20,621 $ 23,083 $ 20,413
Federal funds sold 13,081 29,830 18,158
Available-for-sale investment
securities 101,067 105,592 108,277
Loans, less allowance for credit
losses of $3,425 at June 30, 2006,
$3,339 at Dec. 31, 2005 and $3,546
at June 30, 2005 301,598 298,463 277,200
Bank premises and equipment, net 2,981 2,912 3,014
Other real estate 432
Goodwill and intangible assets 10,112 10,241 10,348
Accrued interest receivable and other
assets 14,420 13,556 12,710
--------- ------------ ---------
Total assets $463,880 $483,677 $450,552
========= ============ =========
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Non-interest bearing $132,243 $153,004 $122,014
Interest bearing 268,484 277,985 279,199
--------- ------------ ---------
Total deposits 400,727 430,989 401,213
Borrowings 13,663 6,500 6,500
Accrued interest payable and other
liabilities 4,992 4,665 4,120
--------- ------------ ---------
Total liabilities 419,382 442,154 411,833
--------- ------------ ---------
Shareholders equity:
Common Stock, no par value;
80,000,000 shares authorized;
outstanding 5,975,880,
5,891,820, and 5,847,620 13,793 13,053 12,785
Retained earnings 32,076 28,977 25,660
Accumulated other comprehensive
(loss) income, net of taxes (1,371) (507) 274
--------- ------------ ---------
Total shareholders' equity 44,498 41,523 38,719
--------- ------------ ---------
Total liabilities and
shareholders' equity $463,880 $483,677 $450,552
========= ============ =========
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
June 30, June 30,
For the six months ended 2006 2005
----------------------------------------------------------------------
(In thousands except per share amounts)
Net Interest Income $ 12,010 $ 10,394
Provision for credit losses 500 -
---------------------
Net interest income after provision for
credit losses 11,510 10,394
Total Non-Interest Income 2,042 1,867
Total Non-Interest Expense 8,682 8,029
Provision for Income Taxes 1,771 1,505
---------------------
NET INCOME $ 3,099 $ 2,727
=====================
Basic Earnings per Share $ 0.52 $ 0.47
=====================
Diluted Earnings per Share $ 0.48 $ 0.43
=====================
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
June March Dec. Sept. June
30, 31, 31, 30, 30,
For the three months ended 2006 2006 2005 2005 2005
----------------------------------------------------------------------
(In thousands except per
share amounts)
Net interest income $6,045 $5,965 $5,945 $5,592 $5,357
Provision for credit losses 100 400 500 10 -
------- ------- ------- ------- -------
Net interest income after
provision for credit losses 5,945 5,565 5,445 5,582 5,357
Total non-interest income 1,062 980 933 960 1,012
Total non-interest expense 4,362 4,320 3,811 3,953 3,978
Provision for income taxes 976 795 899 940 858
------- ------- ------- ------- -------
Net income $1,669 $1,430 $1,668 $1,649 $1,533
======= ======= ======= ======= =======
Basic earnings per share $0.28 $0.24 $0.28 $0.28 $0.26
======= ======= ======= ======= =======
Diluted earnings per share $0.26 $0.22 $0.25 $0.26 $0.24
======= ======= ======= ======= =======
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
June March Dec. Sept. June
30, 31, 31, 30, 30,
For the three months ended 2006 2006 2005 2005 2005
------------------------------
(Dollars in thousands)
Allowance for credit losses to
total loans 1.12% 1.09% 1.11% 1.21% 1.26%
Nonperforming loans to total
loans 0.01% 0.20% 0.20% 0.20% 0.36%
Total nonperforming assets $29 $591 $616 $591 $1,023
Net interest margin
(calculated on a fully tax
equivalent basis) 5.84% 5.74% 5.65% 5.57% 5.40%
Annualized return on average
assets 1.45% 1.22% 1.41% 1.45% 1.36%
Annualized return on average
equity 15.41% 13.40% 16.26% 16.67% 16.15%
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