Central Valley Community Bancorp Reports Increase in Second Quarter 2004 Earnings.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 today unaudited consolidated net income of $825,000, or $0.29 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 ending June June: see month. 30, 2004 compared to $822,000, or $0.29 per diluted share, for the same period in 2003. Net income for the second quarter of 2004 increased $3,000 or 0.36% as compared to the same period in 2003. Contributors to the increase included a 4.8% increase in net interest income and a 3.1% decrease in non-interest expense, which were offset mainly by a 12.1% decrease in non-interest income and a 42.2% increase in income tax expense. The decrease in non-interest expense was attributed mainly to a decrease in depreciation expense on equipment leased to others, while the decrease in non-interest income was attributed mainly to a decrease in loan placement fees and rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time from equipment leased to others. Additionally, income tax increased as a result of the Company's decision in 2004 to not recognize certain tax benefits with respect to its real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ). The net interest margin on a fully tax equivalent basis was 4.71% for second quarter 2004, compared to 5.07% in 2003. Average assets grew 13.3% to $339,216,000 during the second quarter of 2004, compared to $299,486,000 in 2003. Asset growth was driven by a 14.8% increase in deposits which averaged $301,626,000 for the second quarter of 2004, compared to $262,711,000 in 2003. Average loans increased 10.2% to $191,602,000 in the second quarter of 2004, compared to $173,819,000 for the same period in 2003. For the six month period ended June 30, 2004, the Company reported net income of $1,686,000 or $0.58 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 $1,603,000 or $0.57 diluted earnings per share in the first half of 2003. Net interest income increased $441,000 in the periods under review, primarily as the result of increased volumes in 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 combined with decreases in the cost of interest-bearing Adj. 1. interest-bearing - of financial obligations on which interest is paid liabilities. Also contributing to the increase in net income was $483,000 in gains on sale of investments in the first half of 2004. These increases were partially offset by a $130,000 net reduction in rental income from equipment leased to others, a $95,000 decrease in loan placement fee income and a $420,000 increase in income tax expenses. As noted in the 2003 Annual Report to Shareholders, the Company reversed certain previously recognized state tax benefits recorded in the first three quarters of 2003 related to its REIT due to announcements made by the California Franchise Tax Board The California Franchise Tax Board (FTB) collects state personal income tax and corporate income tax of California.[1] History In 1879 California adopted its state constitution which among many other programs created the State Board of Equalization and the . The Company will not recognize any tax benefit in 2004 related to its REIT. The Company's net interest margin on a fully tax equivalent basis was 4.73% for the six-month period ending June 30, 2004, compared to 5.01% for the six-month period ending June 30, 2003. During the first half of 2004, total average assets were $334,619,000, compared to $292,369,000 during the same period in 2003, an increase of 14.5%. Total average loans were $187,281,000 for the six-month period ending June 30, 2004, compared to $168,460,000 for the same period in 2003, an increase of 11.2%. The Company had no non-performing loans A non-performing loan is a loan that is in default or close to being in default. Many loans become non-performing after being in default for 3 months, but this can depend on the contract terms. for the quarters ended June 30, and March 31, 2004. In addition, during the first half of 2004, the Company realized net recoveries on loans previously charged off totaling $107,000 compared to net charge-offs totaling $72,000 for the first half of 2003. Total average deposits increased 15.5% to $296,358,000 during the first six months of 2004 compared to $256,628,000 during the same period in 2003. "Our continued growth in all core financial categories is directly related to strategic decisions made in recent 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. "We are proud to have maintained a consistent track record of profitability despite a continuously compressed net interest margin, which is expected to improve as interest rates rise," concluded Doyle. 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. The Bank operates seven full-service full-ser·vice adj. Associated with or offering complete service: full-service gasoline pumps; full-service banks. offices in Clovis, 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. , Prather Prather is a surname, and may refer to when one holds a pipe/bong or any other marijuana smoking device for a period longer than "two hits" also see "Prathering" V.
Sacramento (săkrəmĕn`tō), city (1990 pop. 369,365), state capital and seat of Sacramento co., central Calif. , plus 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:
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. Additional information about 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, 2003. 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 SHEET
June December June
30, 2004 31, 2003 30, 2003
(In thousands) (Unaudited) (Audited) (Unaudited)
-------------------------------- ------------ ---------- ------------
ASSETS
Cash and cash equivalents $44,928 $35,831 $34,138
Available-for-sale investment
securities 96,520 95,844 94,432
Loans, less allowance for credit
losses of $2,532 at June 30,
2004, $2,425 at Dec. 31, 2003
and $2,361 at June 30, 2003 195,673 183,849 171,628
Bank premises and equipment, net 2,897 2,985 3,055
Accrued interest receivable and
other assets 10,847 9,421 8,661
------------ ---------- ------------
Total assets $350,865 $327,930 $311,914
============ ========== ============
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits:
Non-interest bearing $99,372 $96,945 $82,365
Interest bearing 214,381 193,620 192,651
------------ ---------- ------------
Total deposits 313,753 290,565 275,016
Borrowings 7,000 7,000 8,000
Accrued interest payable and
other liabilities 3,087 3,645 3,263
------------ ---------- ------------
Total liabilities 323,840 301,210 286,279
Total shareholders' equity 27,025 26,720 25,635
------------ ---------- ------------
Total liabilities and
shareholders' equity $350,865 $327,930 $311,914
============ ========== ============
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
For the six months ended June June
(Dollars in thousands, except per share amounts) 30, 2004 30, 2003
------------------------------------------------ --------- ---------
Net Interest Income $6,830 $6,389
Total Non-Interest Income 2,243 2,085
Total Non-Interest Expense 6,356 6,260
Income Tax Expense 1,031 611
--------- ---------
NET INCOME $1,686 $1,603
========= =========
Basic Earnings per Share $0.64 $0.62
========= =========
Diluted earnings per share $0.58 $0.57
========= =========
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
At or for the six months ended June June
(Dollars in thousands) 30, 2004 30, 2003
-------------------------------------------------- -------- --------
Allowance for credit losses to loans and leases 1.28% 1.36%
Nonperforming loans and leases to total loans and
leases 0.00% 0.25%
Total non-performing assets $- $426
Net interest margin (calculated on a fully tax
equivalent basis) 4.73% 5.01%
Return on average assets 1.01% 1.10%
Return on average equity 12.33% 12.80%
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
For the three months
ended
(Dollars in thousands,
except per share June March Dec. Sept. June
amounts) 30, 2004 31, 2004 31, 2003 30, 2003 30, 2003
----------------------- -------- -------- -------- -------- --------
Net Interest Income $3,465 $3,365 $3,203 $3,088 $3,306
Total Non-Interest
Income 900 1,343 1,109 1,352 1,024
Total Non-Interest
Expense 3,102 3,254 3,081 3,014 3,200
Income Tax Expense 438 593 468 420 308
-------- -------- -------- -------- --------
NET INCOME $825 $861 $763 $1,006 $822
======== ======== ======== ======== ========
Basic Earnings per
Share $0.31 $0.33 $0.29 $0.39 $0.32
======== ======== ======== ======== ========
Diluted earnings per
share $0.29 $0.29 $0.27 $0.35 $0.29
======== ======== ======== ======== ========
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Quarter ended June March Dec. Sept. June
(Dollars in thousands) 30, 2004 31, 2004 31, 2003 30, 2003 30, 2003
------------------------ -------- -------- -------- -------- --------
Allowance for credit
losses to loans and
leases 1.28% 1.36% 1.30% 1.29% 1.36%
Nonperforming loans and
leases to total loans
and leases 0.00% 0.00% 0.34% 0.40% 0.25%
Total nonperforming
assets $- $- $634 $815 $426
Net interest margin
(calculated on a fully
tax equivalent basis) 4.71% 4.74% 4.52% 4.51% 5.07%
Return on average assets 0.97% 1.04% 0.94% 1.28% 1.10%
Return on average equity 12.25% 12.40% 11.56% 15.83% 12.90%
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