EXHIBIT 99.1
FOR IMMEDIATE RELEASE
| CONTACT: Debra Nalchajian-Cohen |
| Cohen Communications |
| (559) 222-1322 |
CENTRAL VALLEY COMMUNITY BANCORP
REPORTS SIGNIFICANT EARNINGS GROWTH FOR FIRST QUARTER 2005
CLOVIS, CALIFORNIA…April 15, 2005… 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 $1,194,000, or $0.37 per diluted share, for the quarter ended March 31, 2005, representing an increase of 39%, compared to $861,000, or $0.29 per diluted share, for the same period in 2004.
The improvement in net income is primarily a result of overall growth of loans and deposits, due to both internal growth and the merger of Bank of Madera County following the close of business on December 31, 2004, and increases in interest rates, which had a positive impact on the net interest margin.
Net interest income increased for the first quarter 2005 by 50%, compared to the first quarter 2004. This increase reflects the effect of the 175 basis point increases in the prime interest rate that have occurred since June 30, 2004. Also contributing to the increase in net interest income was a 37% increase in average earning assets to $402,252,000 for the first quarter 2005 compared to $293,482,000 for the same period in 2004. Non-interest income decreased by 36% for the first quarter 2005, which was primarily due to a securities gain of $477,000 taken in first quarter 2004. No securities gains were realized in 2005. Non-interest expense increased 20%, when comparing first quarter 2005 to first quarter 2004, partially due to the operations of the newly acquired Bank of Madera County as well as an additional write-down of $100,000 on an investment in a title and escrow company.
The Company’s net interest margin on a fully tax equivalent basis was 5.19% for the first quarter 2005, a full 45 basis point increase, compared to 4.74% in 2004. Average assets grew 34% to $442,875,000 during the first quarter of 2005, compared to $330,022,000 in 2004. This growth included $68,000,000 in assets from the merger of Bank of Madera County as of December 31, 2004. Average loans increased $74,528,000 or 41% to $257,487,000 in the first quarter of 2005, compared to $182,959,000 for the same period in 2004. $45,779,000 of the increase in total loans can be attributed to the merger with Bank of Madera County. Asset quality continues to be strong, however this quarter reflects the first non-accrual loans for the Company since February 2004. Two of the three non-accrual loans were the result of loans from the Bank of Madera County merger. Average deposits increased $104,894,000 or 36%, to $395,840,000 for the first quarter of 2005, compared to $290,946,000 in 2004. The merger of Bank of Madera County contributed $63,769,000 in total deposits.
Return on average equity was 13.22% at March 31, 2005, compared to 12.40% at March 31, 2004.
“2005 began with the solid performance anticipated, and we expect to continue on that track through the remainder of the year. The merger with Bank of Madera County is now complete, which added quality employees and customers to our Company, and provides the Bank more opportunities to serve Madera County with our unique brand of service,” said Daniel J. Doyle, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank. “Additionally, strong core deposits and increasing interest rates on loans have provided a significant improvement in the Bank’s net interest margin and are reflected in the 50% increase in net interest income for the quarter. We believe the firm foundation that was laid in the Bank’s first 25 years will ensure strong growth for the future of the Bank,” concluded Doyle.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank, headquartered in Clovis, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank currently operates nine full-service offices in Clovis,
Fresno, Kerman, Madera, Oakhurst, Prather and Sacramento. A tenth office is currently under construction and is scheduled to open in Downtown Fresno in the fall of 2005. Additionally, the Bank operates Real Estate Lending, SBA Lending and Agribusiness Lending Departments. Investment services are also provided by Investment Centers of America. 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.
More information about Central Valley Community Bancorp and 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, 2004. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.
