Welcome!

News Feed Item

Central Valley Community Bancorp Reports Earnings Results for the Nine Months and Quarter Ended September 30, 2016

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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Mobile device usage has increased exponentially during the past several years, as consumers rely on handhelds for everything from news and weather to banking and purchases. What can we expect in the next few years? The way in which we interact with our devices will fundamentally change, as businesses leverage Artificial Intelligence. We already see this taking shape as businesses leverage AI for cost savings and customer responsiveness. This trend will continue, as AI is used for more sophistica...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
Real IoT production deployments running at scale are collecting sensor data from hundreds / thousands / millions of devices. The goal is to take business-critical actions on the real-time data and find insights from stored datasets. In his session at @ThingsExpo, John Walicki, Watson IoT Developer Advocate at IBM Cloud, will provide a fast-paced developer journey that follows the IoT sensor data from generation, to edge gateway, to edge analytics, to encryption, to the IBM Bluemix cloud, to Wa...
What is the best strategy for selecting the right offshore company for your business? In his session at 21st Cloud Expo, Alan Winters, U.S. Head of Business Development at MobiDev, will discuss the things to look for - positive and negative - in evaluating your options. He will also discuss how to maximize productivity with your offshore developers. Before you start your search, clearly understand your business needs and how that impacts software choices.
Enterprises are moving to the cloud faster than most of us in security expected. CIOs are going from 0 to 100 in cloud adoption and leaving security teams in the dust. Once cloud is part of an enterprise stack, it’s unclear who has responsibility for the protection of applications, services, and data. When cloud breaches occur, whether active compromise or a publicly accessible database, the blame must fall on both service providers and users. In his session at 21st Cloud Expo, Ben Johnson, C...
Most of the time there is a lot of work involved to move to the cloud, and most of that isn't really related to AWS or Azure or Google Cloud. Before we talk about public cloud vendors and DevOps tools, there are usually several technical and non-technical challenges that are connected to it and that every company needs to solve to move to the cloud. In his session at 21st Cloud Expo, Stefano Bellasio, CEO and founder of Cloud Academy Inc., will discuss what the tools, disciplines, and cultural...
SYS-CON Events announced today that Fusic will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Fusic Co. provides mocks as virtual IoT devices. You can customize mocks, and get any amount of data at any time in your test. For more information, visit https://fusic.co.jp/english/.
SYS-CON Events announced today that Massive Networks, that helps your business operate seamlessly with fast, reliable, and secure internet and network solutions, has been named "Exhibitor" of SYS-CON's 21st International Cloud Expo ®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. As a premier telecommunications provider, Massive Networks is headquartered out of Louisville, Colorado. With years of experience under their belt, their team of...
21st International Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Me...
SYS-CON Events announced today that Enroute Lab will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Enroute Lab is an industrial design, research and development company of unmanned robotic vehicle system. For more information, please visit http://elab.co.jp/.
SYS-CON Events announced today that MIRAI Inc. will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MIRAI Inc. are IT consultants from the public sector whose mission is to solve social issues by technology and innovation and to create a meaningful future for people.
With the rise of DevOps, containers are at the brink of becoming a pervasive technology in Enterprise IT to accelerate application delivery for the business. When it comes to adopting containers in the enterprise, security is the highest adoption barrier. Is your organization ready to address the security risks with containers for your DevOps environment? In his session at @DevOpsSummit at 21st Cloud Expo, Chris Van Tuin, Chief Technologist, NA West at Red Hat, will discuss: The top security r...
IBM helps FinTechs and financial services companies build and monetize cognitive-enabled financial services apps quickly and at scale. Hosted on IBM Bluemix, IBM’s platform builds in customer insights, regulatory compliance analytics and security to help reduce development time and testing. In his session at 21st Cloud Expo, Lennart Frantzell, a Developer Advocate with IBM, will discuss how these tools simplify the time-consuming tasks of selection, mapping and data integration, allowing devel...
SYS-CON Events announced today that Mobile Create USA will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Mobile Create USA Inc. is an MVNO-based business model that uses portable communication devices and cellular-based infrastructure in the development, sales, operation and mobile communications systems incorporating GPS capabi...
There is huge complexity in implementing a successful digital business that requires efficient on-premise and cloud back-end infrastructure, IT and Internet of Things (IoT) data, analytics, Machine Learning, Artificial Intelligence (AI) and Digital Applications. In the data center alone, there are physical and virtual infrastructures, multiple operating systems, multiple applications and new and emerging business and technological paradigms such as cloud computing and XaaS. And then there are pe...