EXHIBIT 99.1
FOR IMMEDIATE RELEASE
| | CONTACT: | | Debra Nalchajian-Cohen |
| | | | Cohen Communications |
| | | | (559) 222-1322 |
CENTRAL VALLEY COMMUNITY BANCORP -
EARNINGS EXCEED $1 MILLION IN THIRD QUARTER
CLOVIS, CALIFORNIA…October 8, 2003… The Board of Directors of Central Valley Community Bancorp (OTC Bulletin Board: CVCY), the parent company of Central Valley Community Bank (Bank), reported today net income of $1,006,000, or $.35 per diluted share, for the quarter ending September 30, 2003, compared to $770,000, or $.28 per diluted share for the same period in 2002, a 31% increase. The significant earnings growth is due in part to gain realized during the current quarter from a security sale as part of a repositioning strategy of the investment portfolio.
Net income of $2,609,000, or $.92 per diluted share, was reported for the 9-month period ending September 30, 2003, an increase of 27% over the $2,062,000 net income reported for the same period in 2002.
Average assets grew to $300,443,000 for the 9-month period ending September 30, 2003, compared to $239,054,000 for the same period ending September 30, 2002, an increase of 26%. Average gross loans grew 17% and average deposits increased 30% for the 9-month period ending September 30, 2003 compared to the same period in 2002.
“Exceeding one million dollars in earnings this quarter is an exciting first for our nearly 24-year-old bank. This exceptional growth has been aided by the sale of securities, which was done to reposition a portion of Central Valley Community Bank’s investment portfolio,” said Daniel J. Doyle, President and CEO of Central Valley Community Bank and Central Valley Community Bancorp. “We are pleased with our operating profit levels in light of our overall growth and the continuing pressure on net interest margins in today’s economic environment. This has been a tremendous year so far, and we have every reason to expect our growth to continue.”
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 and is the sole subsidiary of Central Valley Community Bancorp. The Bank operates seven full-service offices in Clovis, Fresno, Prather, Kerman 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. Members of Central Valley Community Bancorp’s and the Bank’s Board 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.
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, 2002. 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
SEPTEMBER 30, 2003 AND DECEMBER 31, 2002
(In Thousands Except Share Amounts)
| | September 30,
2003 | | December 31,
2002 | |
| | (Unaudited) | | (Audited) | |
ASSETS | | | | | |
Cash and due from banks | | 19,573 | | 18,804 | |
Interest bearing deposits with other banks | | 500 | | 500 | |
Federal funds sold | | 11,526 | | 17,678 | |
Available-for-sale investment securities (Book value of $88,741 at September 30, 2003 and $74,992 at December 31, 2002) | | 90,464 | | 77,723 | |
Loans, less allowance for credit losses of $2,373 at September 30, 2003 and $2,433 at December 31, 2002 | | 181,738 | | 156,293 | |
Bank premises and equipment, net | | 3,048 | | 3,136 | |
Accrued interest receivable and other assets | | 9,223 | | 8,872 | |
| | | | | |
Total assets | | $ | 316,072 | | $ | 283,006 | |
| | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | |
Deposits: | | | | | |
Non-interest bearing | | 82,064 | | 73,823 | |
Interest bearing | | 196,668 | | 172,515 | |
Total deposits | | 278,732 | | 246,338 | |
Short-term borrowings | | 7,000 | | 2,000 | |
Long-term borrowings | | 1,000 | | 7,000 | |
Accrued interest payable and other liabilities | | 3,338 | | 3,569 | |
| | | | | |
Total liabilities | | 290,070 | | 258,907 | |
| | | | | |
Shareholders’ equity: | | | | | |
Preferred stock, no par value: 10,000,000 shares authorized, no shares issued or outstanding | | — | | — | |
Common stock, no par value; 40,000,000 shares authorized, 2,598,507 and 2,573,242 shares issued and outstanding at September 30, 2003 and December 31, 2002 | | 6,092 | | 5,854 | |
Retained earnings | | 18,738 | | 16,387 | |
Accumulated other comprehensive income, net of tax | | 1,172 | | 1,858 | |
Total shareholders’ equity | | 26,002 | | 24,099 | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 316,072 | | $ | 283,006 | |
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CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
For the Three and Nine Month Periods Ended September 30, 2003 and 2002
(In Thousands Except Per Share Amounts)
| | For the Three Months
Ended September 30 | | For the Nine Months
Ended September 30 | |
(Unaudited) | | 2003 | | 2002 | | 2003 | | 2002 | |
INTEREST INCOME: | | | | | | | | | |
Interest and fees on loans | | $ | 2,991 | | $ | 2,919 | | $ | 8,959 | | $ | 8,360 | |
Interest on Federal funds sold | | 34 | | 57 | | 143 | | 102 | |
Interest and dividends on investment securities: | | | | | | | | | |
Taxable | | 414 | | 666 | | 1,576 | | 1,954 | |
Exempt from Federal income taxes | | 195 | | 124 | | 554 | | 365 | |
Interest on deposits with other banks | | 2 | | 1 | | 8 | | 2 | |
Total interest income | | 3,636 | | 3,767 | | 11,240 | | 10,783 | |
INTEREST EXPENSE: | | | | | | | | | |
Interest on deposits | | 478 | | 601 | | 1,545 | | 1,797 | |
Other | | 70 | | 89 | | 218 | | 252 | |
Total interest expense | | 548 | | 690 | | 1,763 | | 2,049 | |
Net interest income before provision for credit losses | | 3,088 | | 3,077 | | 9,477 | | 8,734 | |
PROVISION FOR CREDIT LOSSES | | — | | — | | — | | — | |
Net interest income after provision for credit
losses | | 3,088 | | 3,077 | | 9,477 | | 8,734 | |
NON-INTEREST INCOME: | | | | | | | | | |
Service charges | | 592 | | 532 | | 1,616 | | 1,422 | |
Rentals from equipment leased to others | | 71 | | 214 | | 430 | | 834 | |
Loan placement fees | | 136 | | 85 | | 407 | | 232 | |
Net realized gain on sales of investment securities | | 356 | | 1 | | 356 | | 27 | |
Other income | | 197 | | 229 | | 628 | | 614 | |
Total non-interest income | | 1,352 | | 1,061 | | 3,437 | | 3,129 | |
NON-INTEREST EXPENSES: | | | | | | | | | |
Salaries and employee benefits | | 1,801 | | 1,652 | | 5,375 | | 4,578 | |
Occupancy and equipment | | 412 | | 319 | | 1,172 | | 889 | |
Depreciation and provision for losses on equipment to others | | (29 | ) | 238 | | 200 | | 732 | |
Other expense | | 830 | | 812 | | 2,527 | | 2,644 | |
Total non-interest expenses | | 3,014 | | 3,021 | | 9,274 | | 8,843 | |
Income before income taxes | | 1,426 | | 1,117 | | 3,640 | | 3,020 | |
INCOME TAX EXPENSE | | 420 | | 347 | | 1,031 | | 958 | |
Income after income taxes | | $ | 1,006 | | $ | 770 | | $ | 2,609 | | $ | 2,062 | |
| | | | | | | | | |
Basic earnings per share | | $ | 0.39 | | $ | 0.30 | | $ | 1.01 | | $ | 0.80 | |
Diluted earnings per share | | $ | 0.35 | | $ | 0.28 | | $ | 0.92 | | $ | 0.75 | |
| | For the nine-months ended | |
| | 09/30/2003 | | 09/30/2002 | |
| | (Unaudited) | | (Unaudited) | |
Selected Financial Data | | | | | |
Annualized return on: | | | | | |
Average Assets | | 1.16 | % | 1.15 | % |
Average Equity | | 13.82 | % | 12.36 | % |
Net Interest Margin | | 4.69 | % | 5.47 | % |
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