Central Valley Community Bancorp -- page 1
FOR IMMEDIATE RELEASE
CENTRAL VALLEY COMMUNITY BANCORP REPORTS EARNINGS RESULTS FOR THE QUARTER ENDED MARCH 31, 2017
FRESNO, CALIFORNIA…April 19, 2017… 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 $4,250,000, and diluted earnings per common share of $0.35 for the three months ended March 31, 2017, compared to $3,403,000 and $0.31 per diluted common share for the three months ended March 31, 2016.
FIRST QUARTER FINANCIAL HIGHLIGHTS
| • | The Company recorded reverse provisions for credit losses of $100,000 and $250,000 in the first quarters of 2017 and 2016, respectively. |
| • | Net loans increased $7.87 million or 1.05%, while total assets increased $16.21 million or 1.12% at March 31, 2017 compared to December 31, 2016. |
| • | Total deposits increased 0.90% in 2016 to $1.27 billion at year end. |
| • | Total cost of funds remain at record low levels at 0.08% in 2017 and 2016. |
| • | Capital positions remain strong at March 31, 2017 with a 9.02% Tier 1 Leverage Ratio; a 12.55% Common Equity Tier 1 Ratio; a 12.93% Tier 1 Risk-Based Capital Ratio; and a 13.90% Total Risk-Based Capital Ratio. |
| • | Net loan charge-offs in the first quarter of 2017 were $12,000, compared to net loan recoveries of $776,000 in the first quarter of 2016. |
“We are pleased with our first quarter results that reflect the start of the first full year of operations following our expansion in Sacramento. Economic growth continues to be evident throughout our region. We also took note of the growing optimism from our current and prospective clients which has translated into more
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opportunities for loan and deposit growth throughout our territory,” stated James M. Ford, President and CEO of Central Valley Community Bancorp and Central Valley Community Bank.
Net income for the period increased 24.89% in 2017 compared to 2016, primarily driven by an increase in net interest income, partially offset by an increase in non-interest expenses, a decrease in net realized gains on sales and calls of investment securities, and an increase in provision for income taxes. During the three months ended March 31, 2017, the Company recorded a reverse provision for credit losses of $100,000, compared to a $250,000 reverse provision during the period ended March 31, 2016. Net interest income before the provision for credit losses for the three months ended March 31, 2017 was $13,308,000, compared to $10,603,000 for the three months ended March 31, 2016, an increase of $2,705,000 or 25.51%. The acquisition of Sierra Vista Bank (SVB) attributed approximately $1,470,000 of the increase in net interest income and approximately $11,838,000 was contributed from our continued organic growth. In addition, net interest income during 2017 benefited by approximately $438,000 in nonrecurring income from prepayment penalties and payoff of loans previously on nonaccrual status as compared to a $3,000 net reversal of interest income in the first quarter of 2016. Excluding these benefits, net interest income for the period ended March 31, 2017 increased by $2,264,000 compared to the period ended March 31, 2016.
During the three months ended March 31, 2017, the Company’s shareholders’ equity increased $6,095,000, or 3.72%, compared to December 31, 2016. The increase in shareholders’ equity was primarily driven by the retention of earnings, net of dividends paid, and an increase in unrealized gains on available-for-sale (AFS) securities recorded in accumulated other comprehensive income (AOCI). The increase in AOCI was primarily due to a decrease in longer term interest rates, which resulted in an increase in the market value of the Company’s available-for-sale investment securities.
Return on average equity (ROE) for the three months ended March 31, 2017 was 10.20%, compared to 9.47% for the three months ended March 31, 2016. Notwithstanding an increase in shareholders’ equity, this increase in ROE was primarily achieved due to an increase in net income. The Company declared and paid $0.06 per share in cash dividends to holders of common stock in both the 2017 and 2016 periods. Annualized return on average assets (ROA) was 1.17% for the period ended March 31, 2017 and 1.08% for the period ended March 31,
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2016. For the period ended March 31, 2017, the Company’s total assets increased 1.12%, and total liabilities increased 0.79%, compared to December 31, 2016.
Non-performing assets increased by $799,000, or 31.43%, to $3,341,000 at March 31, 2017, compared to $2,542,000 at December 31, 2016. During the three months ended March 31, 2017, the Company recorded $12,000 in net loan charge-offs, compared to $776,000 in net recoveries for the three months ended March 31, 2016. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.01% for the three months ended March 31, 2017, compared to (0.52)% for the same period in 2016. Total non-performing assets were 0.23% of total assets as of March 31, 2017, compared to 0.18% of total assets as of December 31, 2016.
At March 31, 2017, the allowance for credit losses was $9,214,000, compared to $9,326,000 at December 31, 2016, a net decrease of $112,000 reflecting the reverse provision of $100,000 and the net charge-offs during the period. The allowance for credit losses as a percentage of total loans was 1.21% at March 31, 2017, and 1.23% at December 31, 2016. Total loans includes loans acquired in the acquisitions of SVB on October 1, 2016 and Visalia Community Bank on July 1, 2013 that, at their respective acquisition dates, were recorded at fair value and did not have a related allowance for credit losses. The value of the acquired loans totaled $164,584,000 at March 31, 2017 and $168,296,000 at December 31, 2016. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 1.54% and 1.59% as of March 31, 2017 and December 31, 2016, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 1.51% and 1.55%, respectively. The Company believes the allowance for credit losses is adequate to provide for probable incurred credit losses within the loan portfolio at March 31, 2017.
The Company’s net interest margin (fully tax equivalent basis) was 4.36% for the three months ended March 31, 2017, compared to 3.97% for the three months ended March 31, 2016. The increase in net interest margin in the period-to-period comparison resulted from an increase in the effective yield on average investment securities, and an increase in the yield on the Company’s loan portfolio. Net interest income during 2017 also benefited by approximately $438,000 in nonrecurring income from prepayment penalties and payoff of loans previously on nonaccrual status.
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For the three months ended March 31, 2017, the effective yield on total earning assets increased 39 basis points to 4.45% compared to 4.06% for the three months ended March 31, 2016, while the cost of total interest-bearing liabilities decreased slightly to 0.14% for the quarter ended March 31, 2017 as compared to 0.15% for the quarter ended March 31, 2016. Over the same periods, the cost of total deposits remained unchanged at 0.08% for the quarters ended March 31, 2017 and March 31, 2016.
For the three months ended March 31, 2017, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $582,656,000, an increase of $23,112,000, or 4.13%, compared to the three months ended March 31, 2016 and a decrease of $2,093,000, or 0.36%, compared to the quarter ended December 31, 2016. The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, increased to 3.15% for the three months ended March 31, 2017, compared to 2.79% for the three months ended March 31, 2016.
Total average loans, which generally yield higher rates than investment securities, increased $150,212,000, from $595,476,000 for the three months ended March 31, 2016 to $745,688,000 for the three months ended March 31, 2017 and decreased by $261,000 from $745,427,000 for the quarter ended December 31, 2016. The majority of the quarter over quarter loan growth compared to the prior year was due to the acquisition of SVB in 2016. The effective yield on average loans increased to 5.50% for the three months ended March 31, 2017, compared to 5.25% for the three months ended March 31, 2016.
Total average assets for the three months ended March 31, 2017 was $1,450,530,000 compared to $1,263,562,000 and$1,454,412,000 for the quarters ended March 31, 2016 and December 31, 2016, an increase of $186,968,000 or 14.80% and a decrease $3,882,000 or 0.27%, respectively. During the three months ended March 31, 2017 and 2016, the average loan to deposit ratio was 59.18% and 54.20%, respectively. Total average deposits increased $161,453,000 or 14.70% to $1,260,048,000 for the three months ended March 31, 2017, compared to $1,098,595,000 for the three months ended March 31, 2016, and decreased $4,732,000, or 0.37% compared to $1,264,780,000 for the quarter ended December 31, 2016. Average interest-bearing deposits increased $100,183,000, or 14.61%, and average non-interest bearing demand deposits increased $61,270,000, or 14.84%, for the three months ended March 31, 2017, compared to the three months ended March 31, 2016. The Company’s ratio of average non-interest bearing deposits to total deposits was 37.63% for the three months ended
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March 31, 2017, compared to 37.58% for the three months ended March 31, 2016. The balance sheet increases comparing March 31, 2017 to March 31, 2016 were primarily driven by the SVB acquisition which closed on October 1, 2016.
Non-interest income for the three months ended March 31, 2017 decreased by $458,000 to $2,246,000, compared to $2,704,000 for the three months ended March 31, 2016, primarily driven by a decrease of $648,000 in net realized gains on sales and calls of investment securities and the absence of $136,000 in other-than-temporary impairment loss which was recorded during the period ended March 31, 2016. A decrease in loan placement fees of $100,000 was offset by a $49,000 increase in service charge income, a $31,000 increase in Federal Home Loan Bank dividends, and an increase of $26,000 in other income.
Non-interest expense for the three months ended March 31, 2017 increased $1,137,000, or 12.67%, to $10,113,000 compared to $8,976,000 for the three months ended March 31, 2016. The net increase year over year was a result of increases in salaries and employee benefits of $601,000, increases in professional services of $84,000, increases in data processing expenses of $77,000, increases in directors’ expenses of $58,000, increases in ATM/Debit card expenses of $44,000, increases in license and maintenance contracts of $14,000, increases in regulatory assessments of $32,000, increases in amortization of core deposit intangibles of $13,000, increases in advertising expenses of $11,000, and an increase in Internet banking expenses of $8,000, offset by decreases in occupancy and equipment expenses of $28,000. Non-interest expense for the quarter ended March 31, 2017 decreased by $800,000 compared to $10,913,000 for the trailing quarter ended December 31, 2016. The decrease, as compared to the trailing quarter, is primarily due to a $1,267,000 decrease in acquisition and integration expenses, and a $64,000 decrease in occupancy and equipment expenses, partially offset by a $279,000 increase in salaries and benefits, a $173,000 increase in directors’ expenses, and a $133,000 increase in professional services.
The Company recorded an income tax provision of $1,291,000 for the three months ended March 31, 2017, compared to $1,178,000 for the three months ended March 31, 2016. During the quarter ended March 31, 2017, the Company adopted ASU 2016-09 “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” which due to the exercise of stock options in the current period,
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resulted in the recognition of $92,000 in excess tax benefits. The effective tax rate for the three months ended March 31, 2017 was 23.30% compared to 25.71% for the three months ended March 31, 2016.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank, headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank operates 22 full service offices throughout California’s San Joaquin Valley and Greater Sacramento Region. Additionally, the Bank maintains Commercial Real Estate, Agribusiness and SBA Lending Departments. Central Valley Investment Services are provided by Investment Centers of America, Inc.
Members of Central Valley Community Bancorp’s and the Bank’s Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Lead Independent Director), Edwin S. Darden, Jr., F. T. “Tommy” Elliott, IV, James M. Ford, Gary D. Gall, Steven D. McDonald, Louis McMurray, and William S. Smittcamp. Sidney B. Cox is Director Emeritus.
More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Also, visit Central Valley Community Bank on Twitter and Facebook.
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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 (“SEC”), including its Annual Report on Form 10-K for the year ended December 31, 2016. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.
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CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| March 31, | December 31, | March 31, | ||||||||||
| (In thousands, except share amounts) | 2017 | 2016 | 2016 | |||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 24,345 | $ | 28,185 | $ | 22,525 | ||||||
| Interest-earning deposits in other banks | 45,161 | 10,368 | 55,824 | |||||||||
| Federal funds sold | 22 | 15 | 307 | |||||||||
| Total cash and cash equivalents | 69,528 | 38,568 | 78,656 | |||||||||
| Available-for-sale investment securities (Amortized cost of $526,678, $548,640 and $488,425 at March 31,2017, December 31, 2016 and March 31, 2016, respectively) | 529,240 | 547,749 | 501,978 | |||||||||
| Loans, less allowance for credit losses of $9,214, $9,326 and $10,136 at March 31, 2017, December 31, 2016 and March 31, 2016, respectively | 755,176 | 747,302 | 598,864 | |||||||||
| Bank premises and equipment, net | 9,162 | 9,407 | 9,002 | |||||||||
| Bank owned life insurance | 23,337 | 23,189 | 20,847 | |||||||||
| Federal Home Loan Bank stock | 5,594 | 5,594 | 4,823 | |||||||||
| Goodwill | 40,311 | 40,231 | 29,917 | |||||||||
| Core deposit intangibles | 1,336 | 1,383 | 990 | |||||||||
| Accrued interest receivable and other assets | 25,850 | 29,900 | 26,466 | |||||||||
| Total assets | $ | 1,459,534 | $ | 1,443,323 | $ | 1,271,543 | ||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||
| Deposits: | ||||||||||||
| Non-interest bearing | $ | 469,715 | $ | 495,815 | $ | 408,080 | ||||||
| Interest bearing | 797,601 | 760,164 | 695,399 | |||||||||
| Total deposits | 1,267,316 | 1,255,979 | 1,103,479 | |||||||||
| Short-term borrowings | — | 400 | — | |||||||||
| Junior subordinated deferrable interest debentures | 5,155 | 5,155 | 5,155 | |||||||||
| Accrued interest payable and other liabilities | 16,935 | 17,756 | 17,130 | |||||||||
| Total liabilities | 1,289,406 | 1,279,290 | 1,125,764 | |||||||||
| Shareholders’ equity: | ||||||||||||
| Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 12,198,580, 12,143,815, and 11,026,229 at March 31, 2017, December 31, 2016 and March 31, 2016, respectively | 72,219 | 71,645 | 54,624 | |||||||||
| Retained earnings | 96,424 | 92,904 | 83,180 | |||||||||
| Accumulated other comprehensive income (loss), net of tax | 1,485 | (516 | ) | 7,975 | ||||||||
| Total shareholders’ equity | 170,128 | 164,033 | 145,779 | |||||||||
| Total liabilities and shareholders’ equity | $ | 1,459,534 | $ | 1,443,323 | $ | 1,271,543 | ||||||
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CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED INCOME STATEMENTS
(Unaudited)
| For the Three Months Ended, | |||||||||||||
| March 31, | December 31, | March 31, | |||||||||||
| (In thousands, except share and per share amounts) | 2017 | 2016 | 2016 | ||||||||||
| INTEREST INCOME: | |||||||||||||
| Interest and fees on loans | $ | 10,090 | $ | 9,843 | $ | 7,733 | |||||||
| Interest on deposits in other banks | 75 | 78 | 74 | ||||||||||
| Interest and dividends on investment securities: | |||||||||||||
| Taxable | 1,303 | 1,390 | 1,523 | ||||||||||
| Exempt from Federal income taxes | 2,122 | 1,780 | 1,523 | ||||||||||
| Total interest income | 13,590 | 13,091 | 10,853 | ||||||||||
| INTEREST EXPENSE: | |||||||||||||
| Interest on deposits | 245 | 285 | 221 | ||||||||||
| Interest on junior subordinated deferrable interest debentures | 33 | 33 | 29 | ||||||||||
| Other | 4 | — | — | ||||||||||
| Total interest expense | 282 | 318 | 250 | ||||||||||
| Net interest income before provision for credit losses | 13,308 | 12,773 | 10,603 | ||||||||||
| (REVERSAL OF) PROVISION FOR CREDIT LOSSES | (100 | ) | — | (250 | ) | ||||||||
| Net interest income after provision for credit losses | 13,408 | 12,773 | 10,853 | ||||||||||
| NON-INTEREST INCOME: | |||||||||||||
| Service charges | 798 | 795 | 749 | ||||||||||
| Appreciation in cash surrender value of bank owned life insurance | 148 | 148 | 145 | ||||||||||
| Interchange fees | 324 | 324 | 279 | ||||||||||
| Loan placement fees | 91 | 291 | 191 | ||||||||||
| Net realized gains on sales and calls of investment securities | 482 | 84 | 1,130 | ||||||||||
| Other-than-temporary impairment loss on investment securities | — | — | (136 | ) | |||||||||
| Federal Home Loan Bank dividends | 128 | 316 | 97 | ||||||||||
| Other income | 275 | 280 | 249 | ||||||||||
| Total non-interest income | 2,246 | 2,238 | 2,704 | ||||||||||
| NON-INTEREST EXPENSES: | |||||||||||||
| Salaries and employee benefits | 5,855 | 5,576 | 5,254 | ||||||||||
| Occupancy and equipment | 1,179 | 1,243 | 1,207 | ||||||||||
| Professional services | 420 | 287 | 336 | ||||||||||
| Data processing expense | 424 | 562 | 347 | ||||||||||
| Directors’ expenses | 229 | 56 | 171 | ||||||||||
| ATM/Debit card expenses | 166 | 163 | 122 | ||||||||||
| License & maintenance contracts | 146 | 143 | 132 | ||||||||||
| Regulatory assessments | 175 | 173 | 143 | ||||||||||
| Advertising | 170 | 132 | 159 | ||||||||||
| Internet banking expenses | 169 | 181 | 161 | ||||||||||
| Acquisition and integration expenses | — | 1,267 | — | ||||||||||
| Amortization of core deposit intangibles | 47 | 47 | 34 | ||||||||||
| Other expense | 1,133 | 1,083 | 910 | ||||||||||
| Total non-interest expenses | 10,113 | 10,913 | 8,976 | ||||||||||
| Income before provision for income taxes | 5,541 | 4,098 | 4,581 | ||||||||||
| PROVISION FOR INCOME TAXES | 1,291 | 1,492 | 1,178 | ||||||||||
| Net income | $ | 4,250 | $ | 2,606 | $ | 3,403 | |||||||
| Net income per common share: | |||||||||||||
| Basic earnings per common share | $ | 0.35 | 0.21 | $ | 0.31 | ||||||||
| Weighted average common shares used in basic computation | 12,167,810 | 12,129,490 | 10,953,845 | ||||||||||
| Diluted earnings per common share | $ | 0.35 | 0.21 | $ | 0.31 | ||||||||
| Weighted average common shares used in diluted computation | 12,317,579 | 12,254,292 | 11,040,790 | ||||||||||
| Cash dividends per common share | $ | 0.06 | $ | 0.06 | $ | 0.06 | |||||||
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CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||
| For the three months ended | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
| (In thousands, except share and per share amounts) | ||||||||||||||||||||
| Net interest income | $ | 13,308 | $ | 12,773 | $ | 10,995 | $ | 11,208 | $ | 10,603 | ||||||||||
| (Reversal of) provision for credit losses | (100 | ) | — | (1,000 | ) | (4,600 | ) | (250 | ) | |||||||||||
| Net interest income after provision for credit losses | 13,408 | 12,773 | 11,995 | 15,808 | 10,853 | |||||||||||||||
| Total non-interest income | 2,246 | 2,238 | 2,135 | 2,514 | 2,704 | |||||||||||||||
| Total non-interest expense | 10,113 | 10,913 | 9,655 | 9,377 | 8,976 | |||||||||||||||
| Provision for income taxes | 1,291 | 1,492 | 1,361 | 2,887 | 1,178 | |||||||||||||||
| Net income | $ | 4,250 | $ | 2,606 | $ | 3,114 | $ | 6,058 | $ | 3,403 | ||||||||||
| Basic earnings per common share | $ | 0.35 | $ | 0.21 | $ | 0.28 | $ | 0.55 | $ | 0.31 | ||||||||||
| Weighted average common shares used in basic computation | 12,167,810 | 12,129,490 | 10,984,141 | 10,970,782 | 10,953,845 | |||||||||||||||
| Diluted earnings per common share | $ | 0.35 | $ | 0.21 | $ | 0.28 | $ | 0.55 | $ | 0.31 | ||||||||||
| Weighted average common shares used in diluted computation | 12,317,579 | 12,254,292 | 11,092,674 | 11,067,890 | 11,040,790 | |||||||||||||||
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
| Mar. 31, | Dec. 31, | Sep. 30, | Jun. 30, | Mar. 31, | ||||||||||||||||
| As of and for the three months ended | 2017 | 2016 | 2016 | 2016 | 2016 | |||||||||||||||
| (Dollars in thousands, except per share amounts) | ||||||||||||||||||||
| Allowance for credit losses to total loans | 1.21 | % | 1.23 | % | 1.48 | % | 1.56 | % | 1.66 | % | ||||||||||
| Non-performing assets to total assets | 0.23 | % | 0.18 | % | 0.13 | % | 0.14 | % | 0.29 | % | ||||||||||
| Total non-performing assets | $ | 3,341 | $ | 2,542 | $ | 1,637 | $ | 1,750 | $ | 3,679 | ||||||||||
| Total nonaccrual loans | $ | 3,079 | $ | 2,180 | $ | 1,274 | $ | 1,750 | $ | 3,679 | ||||||||||
| Net loan charge-offs (recoveries) | $ | 12 | $ | (27 | ) | $ | (427 | ) | $ | (4,336 | ) | $ | (776 | ) | ||||||
| Net charge-offs (recoveries) to average loans (annualized) | 0.01 | % | (0.01 | )% | (0.27 | )% | (2.80 | )% | (0.52 | )% | ||||||||||
| Book value per share | $ | 13.95 | $ | 13.51 | $ | 14.11 | $ | 14.21 | $ | 13.22 | ||||||||||
| Tangible book value per share | $ | 10.53 | $ | 10.08 | $ | 11.32 | $ | 11.41 | $ | 10.42 | ||||||||||
| Tangible common equity | $ | 128,481 | $ | 122,419 | $ | 125,483 | $ | 125,802 | $ | 114,872 | ||||||||||
| Cost of total deposits | 0.08 | % | 0.09 | % | 0.09 | % | 0.08 | % | 0.08 | % | ||||||||||
| Interest and dividends on investment securities exempt from Federal income taxes | $ | 2,122 | $ | 1,780 | $ | 1,582 | $ | 1,575 | $ | 1,523 | ||||||||||
| Net interest margin (calculated on a fully tax equivalent basis) (1) | 4.36 | % | 4.20 | % | 4.01 | % | 4.18 | % | 3.97 | % | ||||||||||
| Return on average assets (2) | 1.17 | % | 0.72 | % | 0.96 | % | 1.91 | % | 1.08 | % | ||||||||||
| Return on average equity (2) | 10.20 | % | 6.19 | % | 8.01 | % | 16.24 | % | 9.47 | % | ||||||||||
| Loan to deposit ratio | 60.32 | % | 60.24 | % | 55.86 | % | 56.83 | % | 55.19 | % | ||||||||||
| Tier 1 leverage - Bancorp | 9.02 | % | 8.75 | % | 9.35 | % | 9.34 | % | 8.91 | % | ||||||||||
| Tier 1 leverage - Bank | 8.92 | % | 8.64 | % | 8.40 | % | 8.78 | % | 8.83 | % | ||||||||||
| Common equity tier 1 - Bancorp | 12.55 | % | 12.48 | % | 13.80 | % | 13.90 | % | 13.45 | % | ||||||||||
| Common equity tier 1 - Bank | 12.80 | % | 12.59 | % | 12.93 | % | 13.49 | % | 13.78 | % | ||||||||||
| Tier 1 risk-based capital - Bancorp | 12.93 | % | 12.74 | % | 14.24 | % | 14.35 | % | 13.91 | % | ||||||||||
| Tier 1 risk-based capital - Bank | 12.80 | % | 12.59 | % | 12.93 | % | 13.49 | % | 13.78 | % | ||||||||||
| Total risk-based capital - Bancorp | 13.90 | % | 13.72 | % | 15.39 | % | 15.61 | % | 15.17 | % | ||||||||||
| Total risk based capital - Bank | 13.77 | % | 13.57 | % | 14.10 | % | 14.75 | % | 15.04 | % | ||||||||||
(1) Net Interest Margin is computed by dividing annualized quarterly net interest income by quarterly average interest-bearing assets.
(2) Computed by annualizing quarterly net income.
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CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
| For the Three Months Ended | ||||||||||||
| AVERAGE AMOUNTS | March 31, | December 31, | March 31, | |||||||||
| (Dollars in thousands) | 2017 | 2016 | 2016 | |||||||||
| Federal funds sold | $ | 9 | $ | 16 | $ | 298 | ||||||
| Interest-bearing deposits in other banks | 36,856 | 53,220 | 56,845 | |||||||||
| Investments | 545,791 | 531,513 | 502,401 | |||||||||
| Loans (1) | 743,436 | 743,612 | 592,159 | |||||||||
| Federal Home Loan Bank stock | 5,594 | 5,284 | 4,823 | |||||||||
| Earning assets | 1,331,686 | 1,333,645 | 1,156,526 | |||||||||
| Allowance for credit losses | (9,355 | ) | (9,339 | ) | (9,892 | ) | ||||||
| Nonaccrual loans | 2,252 | 1,815 | 3,317 | |||||||||
| Other non-earning assets | 125,613 | 128,291 | 113,611 | |||||||||
| Total assets | $ | 1,450,530 | $ | 1,454,412 | $ | 1,263,562 | ||||||
| Interest bearing deposits | $ | 785,911 | $ | 787,983 | $ | 685,728 | ||||||
| Other borrowings | 6,931 | 5,164 | 5,155 | |||||||||
| Total interest-bearing liabilities | 792,842 | 793,147 | 690,883 | |||||||||
| Non-interest bearing demand deposits | 474,137 | 476,797 | 412,867 | |||||||||
| Non-interest bearing liabilities | 16,814 | 15,917 | 16,063 | |||||||||
| Total liabilities | 1,283,793 | 1,285,861 | 1,119,813 | |||||||||
| Total equity | 166,737 | 168,551 | 143,749 | |||||||||
| Total liabilities and equity | $ | 1,450,530 | $ | 1,454,412 | $ | 1,263,562 | ||||||
| AVERAGE RATES | ||||||||||||
| Federal funds sold | 1.00 | % | 0.54 | % | 0.50 | % | ||||||
| Interest-earning deposits in other banks | 0.81 | % | 0.59 | % | 0.51 | % | ||||||
| Investments | 3.31 | % | 3.08 | % | 3.05 | % | ||||||
| Loans (3) | 5.50 | % | 5.27 | % | 5.25 | % | ||||||
| Earning assets | 4.45 | % | 4.30 | % | 4.06 | % | ||||||
| Interest-bearing deposits | 0.13 | % | 0.14 | % | 0.13 | % | ||||||
| Other borrowings | 2.14 | % | 2.56 | % | 2.23 | % | ||||||
| Total interest-bearing liabilities | 0.14 | % | 0.16 | % | 0.15 | % | ||||||
| Net interest margin (calculated on a fully tax equivalent basis) (2) | 4.36 | % | 4.20 | % | 3.97 | % | ||||||
| (1) | Average loans do not include nonaccrual loans. |
| (2) | Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds of $1,093, $917, and $784, for the three months ended March 31, 2017, December 31, 2016, and March 31, 2016, respectively. |
| (3) | Loan yield includes loan fees for the three months ended March 31, 2017, December 31, 2016, and March 31, 2016 of $444, $165, and $39, respectively. |
CONTACT: Investor Contact:
Dave Kinross
Executive Vice President and Chief Financial Officer
Central Valley Community Bancorp
559-323-3420
Media Contact:
Debbie Nalchajian-Cohen
Marketing Director
Central Valley Community Bancorp
559-222-1322