FOR IMMEDIATE RELEASE
CONTACT: Daniel J. Doyle
President/CEO
(559) 298-1775
CENTRAL VALLEY COMMUNITY BANCORP REPORTS
PROFITABLE FIRST QUARTER EARNINGS
CLOVIS, CALIFORNIA...April 8, 2002... Central Valley Community Bancorp (OTC Bulletin Board: CVCY) the parent company for Clovis Community Bank reported today net income of $683,000, for the 3-month period ending March 31, 2002, compared to $720,000 for the same period in 2001. However, when excluding extraordinary non-recurring income and expense items, consolidated net income increased 51% in the 3-month period ending March 31, 2002, compared to $452,000 during same period in 2001,
The primary contributing factors in the reduction of net income for first quarter 2002 compared to the same period in 2001, resulted from the Bank recognizing certain non-recurring income and expenses, including receiving funds as part of an insurance settlement in 2001.
Average assets grew to $224,810,000 at March 31, 2002, compared to $197,124,000 at March 31, 2001, an increase of 14.0%. Average gross loans grew 37.8% and average deposits increased 14.4% for the 3-month period ending March 31, 2002 compared to same period in 2001.
"We're proud to report that the Bank continues to grow in all financial categories including offering our customers ever-increasing delivery channels for conducting their personal and business banking needs. On March 18, 2002 we relocated our existing River Park office in Fresno to an expanded 5,000 square foot stand-alone branch in the same complex located in River Park's booming business district. And, in first quarter 2002, we opened our first full-service Northern Valley location in Sacramento, California, under the name Central Valley Community Bank, a division of Clovis Community Bank, specializing in serving private and professional banking clients in the surrounding area," stated Daniel J. Doyle, President and CEO of Clovis Community Bank and Central Valley Community Bancorp.
Central Valley Community Bancorp trades over-the-counter under the symbol CVCY.OB. Clovis Community Bank headquartered in Clovis, California, was founded in 1979, and is the sole subsidiary of Central Valley Community Bancorp. The Bank operates five full-service offices in Clovis, Fresno, and Prather, and one branch in Sacramento under the name of Central Valley Community Bank, a division of Clovis Community Bank. Real Estate Lending and SBA Lending Departments are located in Clovis, with an Agribusiness Lending Department located in Fresno. Investment services, provided by Investment Centers of America are housed at the Bank's main office in Clovis. Members of Central Valley Community Bancorp and the Bank's Board of Directors are: Daniel N. Cunningham (Chairman), Elaine Bernard, David E. Cook, Sidney B. Cox, Edwin S. Darden, Jr., Daniel J. Doyle, Steven D. McDonald, Louis McMurray, Wanda L. Rogers, William S. Smittcamp, and Joseph B. Weirick. Additional information about Clovis Community Bank can be found at www.clovisbank.com and www.cvcb.com.
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Forward-looking Statements—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) changes in the interest rate environment resulting in reduced margins; (3) general economic conditions, either nationally or regionally, are less favorable than expected, resulting in, among other things, a deterioration in credit quality; (4) changes in the regulatory environment; (5) fluctuations in the real estate market; (6) changes in business conditions and inflation; and (7) changes in securities markets. 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
MARCH 31, 2002 AND 2001
| | (In Thousands Except Share Amounts) | ||||||||
|---|---|---|---|---|---|---|---|---|---|
| | March 31, 2002 (Unaudited) | March 31, 2001 (Unaudited) | |||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 14,948 | $ | 10,081 | |||||
| Interest bearing deposits with other banks | 100 | 100 | |||||||
| Federal funds sold | 8,691 | 6,100 | |||||||
| Available for sale investment securities (book value of $59,188 at March 31, 2002 and $63,849 at March 31, 2001) | 60,516 | 65,694 | |||||||
| Loans less allowance for credit losses of $2,217 at March 31, 2002 and $2,253 at March 31, 2001 | 142,432 | 101,977 | |||||||
| Equipment leased to others, net | 970 | 2,165 | |||||||
| Bank premises and equipment, net | 2,803 | 1,962 | |||||||
| Accrued interest receivable and other assets | 7,294 | 5,592 | |||||||
| Total assets | $ | 237,754 | $ | 193,671 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
| Non-interest bearing | $ | 51,303 | $ | 41,262 | |||||
| Interest bearing | 148,888 | 130,494 | |||||||
| Total deposits | 200,191 | 171,756 | |||||||
| Short-term borrowings | 6,000 | — | |||||||
| Long-term borrowings | 7,000 | — | |||||||
| Accrued interest payable and other liabilities | 3,317 | 2,287 | |||||||
| Total liabilities | 216,508 | 174,043 | |||||||
| Shareholders' equity: | |||||||||
| Preferred stock, no par value: 10,000,000 shares authorized, no shares issued or outstanding | — | — | |||||||
| Common stock, no par value; 20,000,000 shares authorized, 1,295,489 and 1,304,957shares issued and outstanding at March 31, 2002 and March 31, 2001 | 6,163 | 6,447 | |||||||
| Retained earnings | 14,286 | 12,074 | |||||||
| Accumulated other comprehensive income | 797 | 1,107 | |||||||
| Total shareholders' equity | 21,246 | 19,628 | |||||||
| Total liabilities and shareholders' equity | $ | 237,754 | $ | 193,671 | |||||
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Month Periods Ended March 31, 2002 and 2001
(In Thousands Except Earnings Per Share Amounts) (Unaudited)
| | For the Three Months Ended March 31 | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| | 2002 | 2001 | ||||||||
| INTEREST INCOME: | ||||||||||
| Interest and fees on loans | $ | 2,609 | $ | 2,552 | ||||||
| Interest on Federal funds sold | 24 | 57 | ||||||||
| Interest and dividends on investment securities: | ||||||||||
| Taxable | 657 | 1,033 | ||||||||
| Exempt from Federal income taxes | 121 | 118 | ||||||||
| Interest on deposits with other banks | 2 | 2 | ||||||||
| Total interest income | 3,413 | 3,762 | ||||||||
| INTEREST EXPENSE: | ||||||||||
| Interest on deposits | 615 | 1,216 | ||||||||
| Other | 61 | 11 | ||||||||
| Total interest expense | 676 | 1,227 | ||||||||
| Net interest income before provision for credit losses | 2,737 | 2,535 | ||||||||
| PROVISION FOR CREDIT LOSSES | -0- | 463 | ||||||||
| Net interest income after provision for credit losses | 2,737 | 2,072 | ||||||||
| NON-INTEREST INCOME: | ||||||||||
| Service charges | 352 | 249 | ||||||||
| Rentals from equipment leased to others | 346 | 345 | ||||||||
| Loan placement fees | 83 | 42 | ||||||||
| Net realized gain on sales of investment securities | 26 | 316 | ||||||||
| Other income | 194 | 843 | ||||||||
Total non-interest income | 1,001 | 1,795 | ||||||||
| NON-INTEREST EXPENSES: | ||||||||||
| Salaries and employee benefits | 1,401 | 1,259 | ||||||||
| Occupancy and equipment | 248 | 225 | ||||||||
| Depreciation and provision for losses on equipment leased to others | 247 | 451 | ||||||||
| Other expense | 786 | 809 | ||||||||
| Total non-interest expenses | 2,682 | 2,744 | ||||||||
| Income from continuing operations before income taxes | 1,056 | 1,123 | ||||||||
| INCOME TAX EXPENSE | 373 | 400 | ||||||||
| Income from continuing operations after income taxes | 683 | 723 | ||||||||
| DISCONTINUED OPERATIONS: | ||||||||||
| Loss from operations of Clovest less applicable income tax benefit of $2 for the three month ended March 31, 2001. | (3 | ) | ||||||||
| �� | Net income | $ | 683 | $ | 720 | |||||
| Basic earnings per share from continuing operations | $ | 0.53 | $ | 0.55 | ||||||
| Diluted earnings per share from continuing operations | $ | 0.50 | $ | 0.54 | ||||||
| Basic earnings per share | $ | 0.53 | $ | 0.55 | ||||||
| Diluted earnings per share | $ | 0.50 | $ | 0.54 | ||||||
| Selected Financial Data: | 03/31/2002 | 03/31/2001 | ||||||||
| Annualized Return on: | ||||||||||
| Average Assets | 1.22 | % | 1.46 | % | ||||||
| Average Equity | 12.80 | % | 15.08 | % | ||||||
Net Interest Margin | 5.46 | % | 5.81 | % | ||||||
