FOR IMMEDIATE RELEASE
CENTRAL VALLEY COMMUNITY BANCORP REPORTS
40% INCREASE IN EARNINGS FOR THIRD QUARTER
CLOVIS, CALIFORNIA…October 7, 2002… Central Valley Community Bancorp (OTC Bulletin Board: CVCY), the parent company for Central Valley Community Bank, today announced results for the third quarter of 2002 and for the nine months ended September 30, 2002.
Central Valley Community Bancorp’s net income for the third quarter of 2002 increased 40% to $770,000, or $0.56 per diluted share, compared to $550,000, or $0.40 per diluted share for the same period in 2001. For the quarter, the company’s annualized return on average equity was 13.17% and its annualized return on average assets was 1.22%.
Average assets grew to $253,208,000 during the third quarter of 2002, compared to $208,813,000 for the same period in 2001, an increase of 21%. Average gross loans grew 32% and average deposits increased 16% for the third quarter of 2002 compared to the same period in 2001.
For the first nine months of 2002, Central Valley Community Bancorp’s net income increased 16% to $2,062,000, or $1.51 per diluted share, compared to $1,771,000, or $1.32 per diluted share for the comparable period in 2001. For the nine month period in 2002, the company’s annualized return on average equity was 12.36% and its annualized return on average assets was 1.15%.
Average assets grew to $239,054,000 for the first nine months of 2002, compared to $201,393,000 for the same period in 2002, an increase of 19%. Average gross loans grew 37% and average deposits increased 13% for the first nine months of 2002 compared to the same period in 2001.
“2002 has proven to be a fantastic year so far for Central Valley Community Bank. Thanks to the incredible dedication of our team, directors and support from the community, our third quarter earnings increased 40% over the same period last year. This positive result follows a very active period for the Bank including relocating our River Park and Fig Garden Village offices into expanded stand-alone facilities; establishing a branch presence in Sacramento specializing in serving private and business banking clients; and lastly introducing the new name for our bank (Central Valley Community Bank),” stated Daniel J. Doyle, President and CEO of Central Valley Community Bank and Central Valley Community Bancorp.
Central Valley Community Bancorp trades over-the-counter under the symbol CVCY.OB. Central Valley Community Bank, headquartered in Clovis, California, was founded in 1979 under
the name Clovis Community Bank, and is the sole subsidiary of Central Valley Community Bancorp. The Bank operates six full-service offices in Clovis, Fresno, Prather, and Sacramento. 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 and the River Park office in Fresno. Members of Central Valley Community Bancorp and the Bank’s Boards of Directors are: Daniel N. Cunningham (Chairman), 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 Central Valley Community Bank can be found at www.cvcb.com.
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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, including its Annual Report on Form 10-KSB for the year ended December 31, 2001. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.
2
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2002 AND DECEMBER 31, 2001
(In Thousands Except Share Amounts)
|
| September 30, |
| December 31, |
| ||
|
| (Unaudited) |
| (Audited) |
| ||
ASSETS |
|
|
|
|
| ||
Cash and due from banks |
| $ | 19,512 |
| $ | 13,863 |
|
Interest bearing deposits with other banks |
| 100 |
| 100 |
| ||
Federal funds sold |
| 18,864 |
| 4,160 |
| ||
Available for sale investment securities (Book value of $62,315 at September 30, 2002 and $58,843 at December31, 2001) |
| 65,460 |
| 60,586 |
| ||
Loans less allowance for credit losses of $2,431 at September 30, 2002 and $2,474 at December 31, 2001 |
| 154,360 |
| 130,797 |
| ||
Equipment leased to others, net |
| 485 |
| 1,217 |
| ||
Bank premises and equipment, net |
| 2,872 |
| 1,864 |
| ||
Accrued interest receivable and other assets |
| 8,275 |
| 6,479 |
| ||
Total assets |
| $ | 269,928, |
| $ | 219,066 |
|
|
|
|
|
|
| ||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
| ||
Deposits: |
|
|
|
|
| ||
Non-interest bearing |
| $ | 68,986 |
| $ | 49,016 |
|
Interest bearing |
| 163,293 |
| 143,116 |
| ||
Total deposits |
| 232,279 |
| 192,132 |
| ||
Short-term borrowings |
| 3,000 |
| 1,000 |
| ||
Long-term borrowings |
| 8,000 |
| 2,000 |
| ||
Accrued interest payable and other liabilities |
| 2,717 |
| 3,106 |
| ||
Total liabilities |
| 245,996 |
| 198,238 |
| ||
|
|
|
|
|
| ||
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, 1,297,291 and 1,285,357 shares issued and outstanding at September 30, 2002 and December 31, 2001 |
| 6,129 |
| 6,049 |
| ||
Retained earnings |
| 15,665 |
| 13,733 |
| ||
Accumulated other comprehensive income, net of tax |
| 2,138 |
| 1,046 |
| ||
Total shareholders’ equity |
| 23,932 |
| 20,828 |
| ||
Total liabilities and shareholders’ equity |
| $ | 269,928 |
| $ | 219,066 |
|
3
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
For the Three and Nine Month Periods Ended September 30, 2002 and 2001
|
| For the Three Months |
| For the Nine Months |
| ||||||||
|
|
| |||||||||||
(In thousands except earnings per share amounts) (Unaudited) |
| 2002 |
| 2001 |
| 2002 |
| 2001 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
NET INCOME: |
|
|
|
|
|
|
|
|
| ||||
Interest and fees on loans |
| $ | 2,919 |
| $ | 2,647 |
| $ | 8,360 |
| $ | 7,740 |
|
Interest on Federal funds sold |
| 57 |
| 67 |
| 102 |
| 207 |
| ||||
Interest and dividends on investment securities: |
|
|
|
|
|
|
|
|
| ||||
Taxable |
| 666 |
| 800 |
| 1,954 |
| 2,693 |
| ||||
Exempt from Federal income taxes |
| 124 |
| 120 |
| 365 |
| 356 |
| ||||
Interest on deposits with other banks |
| 1 |
| 1 |
| 2 |
| 4 |
| ||||
Total interest income |
| 3,767 |
| 3,635 |
| 10,783 |
| 11,000 |
| ||||
INTEREST EXPENSE: |
|
|
|
|
|
|
|
|
| ||||
Interest on deposits |
| 601 |
| 989 |
| 1,797 |
| 3,309 |
| ||||
Other |
| 89 |
| 1 |
| 252 |
| 11 |
| ||||
Total interest expense |
| 690 |
| 990 |
| 2,049 |
| 3,320 |
| ||||
Net interest income before provision for credit losses |
| 3,077 |
| 2,645 |
| 8,734 |
| 7,680 |
| ||||
PROVISION FOR CREDIT LOSSES |
| — |
| 50 |
| — |
| 547 |
| ||||
Net interest income after provision for credit losses |
| 3,077 |
| 2,595 |
| 8,734 |
| 7,133 |
| ||||
NON-INTEREST INCOME: |
|
|
|
|
|
|
|
|
| ||||
Service charges |
| 532 |
| 279 |
| 1,422 |
| 844 |
| ||||
Rentals from equipment leased to others |
| 214 |
| 396 |
| 834 |
| 1,085 |
| ||||
Loan placement fees |
| 85 |
| 48 |
| 232 |
| 144 |
| ||||
Net realized gain on sales of investment securities |
| 1 |
| 1 |
| 27 |
| 372 |
| ||||
Other income |
| 229 |
| 163 |
| 614 |
| 1,227 |
| ||||
Total non-interest income |
| 1,061 |
| 887 |
| 3,129 |
| 3,672 |
| ||||
NON-INTEREST EXPENSES: |
|
|
|
|
|
|
|
|
| ||||
Salaries and employee benefits |
| 1,652 |
| 1,328 |
| 4,578 |
| 3,915 |
| ||||
Occupancy and equipment |
| 319 |
| 222 |
| 889 |
| 673 |
| ||||
Depreciation and provision for losses on equipment leased to others |
| 238 |
| 309 |
| 732 |
| 1,061 |
| ||||
Other expense |
| 812 |
| 781 |
| 2,644 |
| 2,419 |
| ||||
Total non-interest expenses |
| 3,021 |
| 2,640 |
| 8,843 |
| 8,068 |
| ||||
Income from continuing operations before income taxes |
| 1,117 |
| 842 |
| 3,020 |
| 2,737 |
| ||||
INCOME TAX EXPENSE |
| 347 |
| 292 |
| 958 |
| 966 |
| ||||
Income from continuing operations after income taxes |
| 770 |
| 550 |
| 2,062 |
| 1,771 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
Basic earnings per share |
| $ | 0.59 |
| $ | 0.42 |
| $ | 1.59 |
| $ | 1.36 |
|
Diluted earnings per share |
| $ | 0.56 |
| $ | 0.40 |
| $ | 1.51 |
| $ | 1.32 |
|
|
| 9/30/2002 |
| 9/30/2001 |
|
Selected Financial Data |
| (Unaudited) |
| (Unaudited) |
|
|
|
|
|
|
|
Annualized return on: |
|
|
|
|
|
Average Assets |
| 1.15 | % | 1.17 | % |
Average Equity |
| 12.36 | % | 12.19 | % |
Net Interest Margin |
| 5.47 | % | 5.74 | % |
4
