EXHIBIT 99.1
FOR IMMEDIATE RELEASE
| CONTACT: | Debra Nalchajian-Cohen
Cohen Communications
(559) 222-1322 |
CENTRAL VALLEY COMMUNITY BANCORP
REPORTS RECORD EARNINGS FOR 2003!
CLOVIS, CALIFORNIA…January 15, 2004… The Board of Directors of Central Valley Community Bancorp (OTC Bulletin Board: CVCY), the parent company of Central Valley Community Bank (Bank), reported today record earnings for fiscal year ending December 31, 2003 with unaudited consolidated net income of $3,372,000, or $1.19 per diluted share, representing an increase of 21.12% compared to $2,784,000, or $1.02 per diluted share, for the same period in 2002. Return on average assets was 1.10% and return on average equity was 13.23% for 2003.
Unaudited consolidated net income of $763,000, or $0.27 per diluted share, was reported for the quarter ending December 31, 2003, an increase of 5.68%, over the $722,000, or $0.26 per diluted share earned in the same period in 2002. The fourth quarter results include the reversal of certain previously recognized state tax benefits recorded in the first three quarters of 2003 due to recent announcements by the California Franchise Tax Board with respect to REITs. The Company formed its REIT in 2002 as a means of generating capital and recognized favorable tax treatments afforded this type of entity. The Company believes it has taken an appropriate position in its 2002 California tax filing.
Average assets grew to $306,384,000 at December 31, 2003, compared to $248,948,000 at December 31, 2002, an increase of 23.07%. Average total loans grew to $174,708,000 at December 31, 2003, an increase of 17.53%, compared to $148,654,000 at December 31, 2002. Average total deposits grew 27.06% to $270,159,000 at December 31, 2003, compared to $212,629,000 at December 31, 2002.
“We are able to look back on 2003 with pride as the Bank enjoyed another outstanding year of earnings growth,” said Daniel J. Doyle, President and CEO of Central Valley Community Bank and Central Valley Community Bancorp. “Our experienced team will continue to look for growth opportunities as key elements to ensuring the Bank’s high-quality position as a long-term survivor in our ever-changing market as we look forward with optimism toward 2004.”
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
DECEMBER 31, 2003 AND DECEMBER 31, 2002
(In Thousands Except Share Amounts)
| | December 31,
2003 | | December 31,
2002 | |
| | (Unaudited) | | (Audited) | |
ASSETS | | | | | |
Cash and due from banks | | 24,375 | | 18,804 | |
Interest bearing deposits with other banks | | 500 | | 500 | |
Federal funds sold | | 10,956 | | 17,678 | |
Available-for-sale investment securities (Book value of $94,192 at December 31, 2003 and $74,991 at December 31, 2002) | | 95,844 | | 77,723 | |
Loans, less allowance for credit losses of $2,425 at December 31, 2003 and $2,433 at December 31, 2002 | | 183,849 | | 156,293 | |
Bank premises and equipment, net | | 2,985 | | 3,131 | |
Accrued interest receivable and other assets | | 9,421 | | 8,877 | |
| | | | | |
Total assets | | $ | 327,930 | | $ | 283,006 | |
| | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | |
Deposits: | | | | | |
Non-interest bearing | | 96,945 | | 73,822 | |
Interest bearing | | 193,620 | | 172,515 | |
Total deposits | | 290,565 | | 246,337 | |
Short-term borrowings | | 7,000 | | 2,000 | |
Long-term borrowings | | — | | 7,000 | |
Accrued interest payable and other liabilities | | 3,645 | | 3,570 | |
| | | | | |
Total liabilities | | 301,210 | | 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, 2,598,927 and 2,573,242 shares issued and outstanding in 2003 and 2002, respectively | | 6,096 | | 5,854 | |
Retained earnings | | 19,501 | | 16,387 | |
Accumulated other comprehensive income, net of tax | | 1,123 | | 1,858 | |
Total shareholders’ equity | | 26,720 | | 24,099 | |
| | | | | |
Total liabilities and shareholders’ equity | | $ | 327,930 | | $ | 283,006 | |
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENT OF INCOME
FOR THE THREE AND TWELVE MONTH PERIODS ENDED
DECEMBER 31, 2003 AND DECEMBER 31, 2002
(In Thousands Except Per Share Amounts)
| | For the Three Months
Ended December 31 | | For the Twelve Months
Ended December 31 | |
(Unaudited) | | 2003 | | 2002 | | 2003 | | 2002 | |
INTEREST INCOME: | | | | | | | | | |
Interest and fees on loans | | $ | 3,080 | | $ | 2,835 | | $ | 12,039 | | $ | 11,195 | |
Interest on Federal funds sold | | 42 | | 93 | | 185 | | 195 | |
Interest and dividends on investment securities: | | | | | | | | | |
Taxable | | 408 | | 678 | | 1,992 | | 2,634 | |
Exempt from Federal income taxes | | 200 | | 147 | | 754 | | 512 | |
Total interest income | | 3,730 | | 3,753 | | 14,970 | | 14,536 | |
INTEREST EXPENSE: | | | | | | | | | |
Interest on deposits | | 459 | | 596 | | 2,004 | | 2,393 | |
Other | | 68 | | 83 | | 286 | | 335 | |
Total interest expense | | 27 | | 679 | | 2,290 | | 2,728 | |
Net interest income before provision for credit losses | | 3,203 | | 3,074 | | 12,680 | | 11,808 | |
PROVISION FOR CREDIT LOSSES | | — | | — | | — | | — | |
Net interest income after provision for credit losses | | 3,203 | | 3,074 | | 12,680 | | 11,808 | |
NON-INTEREST INCOME: | | | | | | | | | |
Service charges | | 599 | | 500 | | 2,215 | | 1,922 | |
Rentals from equipment leased to others | | 55 | | 260 | | 485 | | 1,094 | |
Loan placement fees | | 81 | | 132 | | 488 | | 364 | |
Net realized gain on sales and calls of investment securities | | 150 | | — | | 506 | | 27 | |
Other income | | 224 | | 191 | | 852 | | 805 | |
Total non-interest income | | 1,109 | | 1,083 | | 4,546 | | 4,212 | |
NON-INTEREST EXPENSES: | | | | | | | | | |
Salaries and employee benefits | | 1,777 | | 1,654 | | 7,152 | | 6,232 | |
Occupancy and equipment | | 404 | | 345 | | 1,576 | | 1,234 | |
Depreciation and provision for losses on equipment leased to others | | 2 | | 245 | | 202 | | 977 | |
Other expense | | 898 | | 901 | | 3,425 | | 3,545 | |
Total non-interest expenses | | 3,081 | | 3,145 | | 12,355 | | 11,988 | |
Income before income taxes | | 1,231 | | 1,012 | | 4,871 | | 4,032 | |
INCOME TAX EXPENSE | | 468 | | 290 | | 1,499 | | 1,248 | |
Income after income taxes | | $ | 763 | | $ | 722 | | $ | 3,372 | | $ | 2,784 | |
| | | | | | | | | |
Basic earnings per share | | $ | 0.29 | | $ | 0.28 | | $ | 1.30 | | $ | 1.08 | |
Diluted earnings per share | | $ | 0.27 | | $ | 0.26 | | $ | 1.19 | | $ | 1.02 | |
| | For the twelve months ended | |
Selected Financial Data | | 12/31/2003 | | 12/31/2002 | |
| | (Unaudited) | | (Unaudited) | |
Annualized return on: | | | | | |
Average Assets | | 1.10 | % | 1.12 | % |
Average Equity | | 13.23 | % | 12.32 | % |
Net Interest Margin | | 4.61 | % | 5.32 | % |
