Central Valley Community Bancorp Reports Excellent Year End Earnings for 2005.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:CVCY), the parent company of Central Valley Community Bank (Bank), reported unaudited consolidated net income of $6,044,000, or $0.94 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 (diluted 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 year ended December December: see month. 31, 2005, compared to $3,695,000, or $0.64 diluted EPS in the same period 2004. The 47% increase in diluted EPS occurred even though the Company issued 522,106 additional shares effective January January: see month. 1, 2005 as the result of the merger with Bank of Madera County (BMC (BMC Software, Inc., Houston, TX, www.bmc.com) A leading supplier of software that supports and improves the availability, performance, and recovery of applications in complex computing environments. ). The 64% increase in net income and the 47% increase in diluted EPS reflect the successful completion of the Company's first acquisition, the positive impact of the increasing interest rate environment, and the Company's continued organic growth. Diluted EPS reflect the 2-for-1 stock split distributed by the Company in the fourth quarter of 2005. Return on average equity for 2005 was 15.63% compared to 13.10% for 2004 and return on average assets increased to 1.33% for 2005 compared to 1.07% for 2004. Earnings for the fourth quarter of 2005 provide further indication of the Company's successful year with net income of $1,668,000 for the fourth quarter of 2005 compared to $1,041,000 for the fourth quarter of 2004. Diluted EPS were $0.25 for the fourth quarter of 2005 compared to $0.18 in the fourth quarter of 2004. "The Company completed its first full year of operations following the merger with Bank of Madera County and we are pleased to report that all anticipated benefits of the merger were achieved. The significant growth in assets, loans and deposits for 2005 was attributable to the merger, as well as the continued internal growth of the Bank," 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. "Looking into 2006, the Bank is preparing to open its tenth office in February February: see month. 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. and the Board of Directors and management team have high expectations for excellent performance and continued growth in all areas in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite facing continued increases in competition from new banks and branches of competitors," continued Doyle. In 2005, the $6,044,000 record earnings included a provision for credit loss of $510,000 and the operations of the two additional branches added in the merger. Comparing 2005 to 2004, average total loans increased by $82,632,000, or 42% while the $99,735,000, or 32% increase in average deposits provided the funding. The net interest margin was 5.46% for the year ended 2005 compared to 4.91% for the same period 2004 reflecting the overall positive impact of the rising interest rate environment. The Federal Open Market Committee (FOMC See Federal Open Market Committee. FOMC See Federal Open Market Committee (FOMC). ) raised interest rates 8 times or 200 basis points in 2005. The Company's 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 increased 33% in 2005 to $414,257,000 compared to $311,456,000 in 2004. Asset quality remained strong in 2005 as the average loans increased 42% to $277,855,000 compared to $195,223,000 in 2004. However the Company reported a provision to credit losses for the first time in 3 years. Two related commercial loans totaling $688,000 were charged off in the fourth quarter of 2005 bringing the net charge offs to $619,000 for 2005 compared to net recoveries of $272,000 for 2004. Net charge offs as a percentage of average total loans was 0.22% for 2005 compared to net recoveries of 0.14% in 2004. Non performing loans at December 31, 2005 were $616,000 or 0.20% of total loans. Non interest income Non-interest income is derived from the execution/processing business, the advisory business and any principal business that does not appear on the balance sheet. Financial institutions that wish to maximize execution/processing income depend on volume and efficiency for profits. decreased 5% in 2005 compared to 2004 due mainly to the decrease of $391,000 in gains realized on the sale of investments. Non interest expense increased 20% in 2005 compared to 2004 reflecting the additional two branches and personnel from the BMC merger and normal increases in salary and benefits, incentive compensation and increases for equipment and occupancy expenses. The 60% increase in net income for the fourth quarter of 2005 compared to the fourth quarter of 2004 reflects the 31% increase in average earnings assets and the two 25 basis point increases in interest rates by the FOMC in the fourth quarter. Average loans for the fourth quarter of 2005 were $297,170,000 compared to $204,886,000 for the fourth quarter of 2004, a 45% increase. This increase was funded by the 31% increase in average deposits. Average deposits for the fourth quarter of 2005 were $423,452,000 compared to $324,441,000 for 2004. The effective yield on loans for the fourth quarter of 2005 was 8.01% compared to 7.22% for the same period of 2004. The effective rate on total deposits for the fourth quarter of 2005 was 1.12% compared to 0.62% for the same period of 2004. The tax-equivalent net interest margin for the fourth quarter of 2005 was 5.65% compared to 5.18% for the same period 2004. Return on average equity was 16.26% for the fourth quarter of 2005 compared to 14.09% for the same period of 2004 and return on average assets increased to 1.41% compared to 1.14% when comparing the quarters. Non interest income increased 10% in the fourth quarter of 2005 mainly 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 the increases in service charges and loan placement fees. Non-interest expense increased 9% when comparing the fourth quarter 2005 to the same period of 2004. Salaries, benefits, and incentive-based compensation increased due to the merger and the loan and deposit growth. 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 nine full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. offices in Clovis, Fresno, 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. , Madera, Oakhurst Oakhurst is the name of several communities in the United States of America:
Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. . A tenth office is scheduled to open in Downtown Fresno in February 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 America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. . Members of Central Valley Community Bancorp's and the Bank's Board of Directors are: Daniel N. Cunningham (Chairman), Sidney Sidney, city (1990 pop. 18,710), seat of Shelby co., W central Ohio, on the Great Miami River, in a farm area; founded 1811, inc. 1834. Refrigerator parts and machinery are among the items produced there. 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 Darden most often refers to the Darden Graduate School of Business Administration at the University of Virginia. Other uses of the name may include: People:
n. 1. Voice; speech; language. Ye have as merry a steven As any angel hath that is in heaven. - Chaucer. 2. An outcry; a loud call; a clamor. To set steven to make an appointment. 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 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-KSB for the year ended December 31, 2004. 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)
Dec. 31, Dec. 31,
(In thousands except share amounts) 2005 2004
-------------------------------------------------- --------- ---------
ASSETS
Cash and cash equivalents $ 23,083 $ 20,112
Federal funds sold 29,830 26,307
Available-for-sale investment securities 105,592 98,983
Loans, less allowance for credit losses of $3,339
at Dec. 31, 2005 and $2,697 at Dec. 31, 2004 298,463 206,582
Bank premises and equipment, net 2,912 2,724
Goodwill and intangible assets 10,241 -
Accrued interest receivable and other assets 13,556 13,439
--------- ---------
Total assets $483,677 $368,147
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $153,004 $105,235
Interest bearing 277,985 220,951
--------- ---------
Total deposits 430,989 326,186
Borrowings 6,500 8,500
Accrued interest payable and other liabilities 4,665 3,855
--------- ---------
Total liabilities 442,154 338,541
--------- ---------
Shareholders equity:
Common Stock, no par value, 80,000,000 shares
authorized, 5,891,820 and 5,257,734 shares
issued and outstanding at Dec. 31, 2005 and
Dec. 31, 2004. 13,053 6,343
Retained earnings 28,977 22,933
Accumulated other comprehensive (loss) income,
net of taxes (507) 330
--------- ---------
Total shareholders' equity 41,523 29,606
--------- ---------
Total liabilities and shareholders' equity $483,677 $368,147
========= =========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Dec. 31, Dec. 31,
For the years ended 2005 2004
---------------------------------------------------- -------- --------
(In thousands except per share amounts)
Net interest income $21,931 $14,821
Provision for credit losses 510 0
-------- --------
Net interest income after provision for credit losses 21,421 14,821
Total non-interest income 3,760 3,937
Total non-interest expense 15,793 13,119
Provision for income taxes 3,344 1,944
-------- --------
NET INCOME $ 6,044 $ 3,695
======== ========
Basic Earnings per Share $ 1.03 $ 0.71
======== ========
Diluted Earnings per Share $ 0.94 $ 0.64
======== ========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
For the three months ended 2005 2005 2005 2005 2004
------------------------------ ------ ------ ------ ------ ------
(In thousands except per share
amounts)
Net Interest Income $5,945 $5,592 $5,357 $5,037 $4,170
Provision for credit losses 500 10 - - -
------- ------- ------- ------- -------
Net interest income after
provision for credit losses 5,445 5,582 5,357 5,037 4,170
Total Non-Interest Income 933 960 1,012 855 852
Total Non-Interest Expense 3,811 3,953 3,978 4,051 3,496
Provision for Income Taxes 899 940 858 647 485
------- ------- ------- ------- -------
NET INCOME $1,668 $1,649 $1,533 $1,194 $1,041
======= ======= ======= ======= =======
Basic Earnings per Share $ 0.28 $ 0.28 $ 0.26 $ 0.21 $ 0.20
======= ======= ======= ======= =======
Diluted Earnings per Share $ 0.25 $ 0.26 $ 0.24 $ 0.19 $ 0.18
======= ======= ======= ======= =======
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
For the three months ended 2005 2005 2005 2005 2004
------------------------------ ------ ------ ------ ------ ------
(Dollars in thousands)
Allowance for credit losses to
total loans 1.11% 1.21% 1.26% 1.31% 1.29%
Nonperforming loans to total
loans 0.20% 0.20% 0.36% 0.50% 0.00%
Total nonperforming assets $ 616 $ 591 $1,023 $1,308 $ -
Net interest margin
(calculated on a fully tax
equivalent basis) 5.65% 5.57% 5.40% 5.19% 5.18%
Return on average assets 1.41% 1.45% 1.36% 1.08% 1.14%
Return on average equity 16.26% 16.67% 16.15% 13.22% 14.09%
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