FOR IMMEDIATE RELEASE
CENTRAL VALLEY COMMUNITY BANCORP REPORTS EARNINGS RESULTS FOR THE QUARTER AND NINE MONTHS ENDED SEPTEMBER 30, 2022, AND QUARTERLY DIVIDEND
FRESNO, CALIFORNIA... October 19, 2022... 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 $6,384,000, and fully diluted earnings per common share of $0.55 for the quarter ended September 30, 2022, compared to $6,521,000 and $0.54 per fully diluted common share for the quarter ended September 30, 2021.
THIRD QUARTER FINANCIAL HIGHLIGHTS
•Net income for the third quarter of 2022 decreased to $6,384,000 or $0.55 per diluted common share, compared to $6,542,000 and $0.56, respectively, in the second quarter of 2022. The Company recorded a $500,000 provision for credit losses during the third quarter of 2022 as compared to no provision in the second quarter.
•Net loans increased $185.4 million or 18.01%, and total assets decreased $24.4 million or 1.00% at September 30, 2022 compared to December 31, 2021. The net loan increase consisted of an increase of $203.6 million in non-PPP loans, offset by a decrease of $18.2 million in SBA Paycheck Protection Program (PPP) loans.
•Total deposits increased 0.77% to $2.14 billion at September 30, 2022 compared to December 31, 2021.
•Total cost of deposits remained at low levels at 0.04% and 0.05% for the quarters ended September 30, 2022 and 2021, respectively.
•Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 48.50% and 45.30% for the quarters ended September 30, 2022 and 2021, respectively.
•Non-performing assets were $251,000, net loan recoveries were $493,000, and loans delinquent more than 30 days were $483,000 for the quarter ended September 30, 2022.
•Net interest margin increased to 3.57% at September 30, 2022, from 3.48% at June 30, 2022.
•Capital positions remain strong at September 30, 2022 with a 8.26% Tier 1 Leverage Ratio; a 11.56% Common Equity Tier 1 Ratio; a 11.86% Tier 1 Risk-Based Capital Ratio; and a 14.54% Total Risk-Based Capital Ratio.
•The Company declared a $0.12 per common share cash dividend, payable on November 18, 2022 to shareholders of record as of November 4, 2022.
Central Valley Community Bancorp -- page 2
“I am immensely proud of the Company's third quarter performance, and thank our exceptional team of bankers who are at the heart of this accomplishment,” stated James J. Kim, President and CEO. “Third quarter financial results show a continued and positive trend in loan growth, deposit strength and stability.”
“The strong 42-year foundation of our Company uniquely positions us to invest in our footprint, while prudently navigating uncertain market conditions, inflation, business confidence, and drought conditions,” continued Kim, “Our team has been a valued partner to our clients and communities in addressing these business challenges. Our commitment to them - and to building Company value for the short and long term - is unwavering.”
Quarter Ended September 30, 2022
For the quarter ended September 30, 2022, the Company reported unaudited consolidated net income of $6,384,000 and earnings per diluted common share of $0.55, compared to consolidated net income of $6,521,000 and $0.54 per diluted share for the same period in 2021. The decrease in net income during the third quarter of 2022 compared to the same period in 2021 was primarily due to a reversal of provision for credit losses recorded in 2021 versus a provision recorded in 2022. This change resulted in a difference of $1,000,000 year over year. Additionally, net income for the period was affected by an increase in total non-interest expenses of $736,000, and a decrease in non-interest income of $668,000, offset by an increase in net interest income of $1,954,000 and a decrease in the provision for income taxes of $313,000. The effective tax rate decreased to 23.51% from 25.86% for the quarters ended September 30, 2022 and September 30, 2021, respectively. Net income for the immediately trailing quarter ended June 30, 2022 was $6,542,000, or $0.56 per diluted common share.
Annualized return on average equity (ROE) for the third quarter of 2022 was 14.42%, compared to 10.41% for the same period of 2021. The increase in ROE reflects a decrease in average shareholders’ equity compared to the prior year. The decrease in shareholders’ equity was primarily driven by an increase in net unrealized loss on available-for-sale (AFS) investment securities, dividends paid, and stock repurchases, offset by the retention of earnings. Annualized return on average assets (ROA) was 1.06% for the third quarter of 2022 compared to 1.13% for the same period in 2021. This decrease was due to a decrease in net income and an increase in average assets.
In comparing the third quarter of 2022 to the third quarter of 2021, total average loans increased by $120,067,000, or 11.22%. This mix includes a decrease of $157,831,000 in PPP loans, and an increase of $277,898,000 in non-PPP loans. During the third quarter of 2022, the Company recorded net loan recoveries of $493,000 compared to $122,000 net loan recoveries for the same period in 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was less than (0.17)% for the quarter ended September 30, 2022 compared to (0.05)% for the quarter ended September 30, 2021. During the quarter ended September 30, 2022, the Company recorded a provision of $500,000 for credit losses, compared to a reversal of provision of $500,000 for the quarter ended September 30, 2021.
Central Valley Community Bancorp -- page 3
The Company’s net interest margin (fully tax equivalent basis) was 3.57% for the quarter ended September 30, 2022, compared to 3.47% for the quarter ended September 30, 2021. Net interest income, before provision for credit losses, increased $1,954,000, or 10.73%, to $20,164,000 for the third quarter of 2022, compared to $18,210,000 for the same period in 2021. The accretion on loan marks of acquired loans increased interest income by $121,000 and $231,000 during the quarters ended September 30, 2022 and 2021, respectively. Net interest income during the third quarters of 2022 and 2021 benefited by approximately $92,000 and $4,000, respectively, from prepayment penalties and payoff of loans. The net interest margin period-to-period comparisons were impacted by the increase in the yield on the average investment securities, offset by the decrease in the yield on the loan portfolio and the increase in the yield on total interest-bearing liabilities. Over the same periods, the cost of total deposits decreased to 0.04% from 0.05%.
For the quarter ended September 30, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased by $42,838,000, or 4.04%, compared to the quarter ended September 30, 2021, and decreased by $150,528,000, or 12.02%, compared to the quarter ended June 30, 2022. This decrease was primarily the result of sales and maturities that occurred late in the second quarter.
The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.46% for the quarter ended September 30, 2022, compared to 2.14% for the quarter ended September 30, 2021 and 2.58% for the quarter ended June 30, 2022. Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased by $120,067,000 to $1,190,022,000 for the quarter ended September 30, 2022, from $1,069,955,000 for the quarter ended September 30, 2021 and increased by $103,855,000 from $1,086,167,000 for the quarter ended June 30, 2022. For the quarter ended September 30, 2022, average PPP loans decreased $157,831,000 while average non-PPP loans increased $277,898,000 compared to the quarter ended September 30, 2021. The effective yield on average loans was 4.90% for the quarter ended September 30, 2022, compared to 4.91% and 4.76% for the quarters ended September 30, 2021 and June 30, 2022, respectively.
Total average assets for the quarter ended September 30, 2022 were $2,414,414,000 compared to $2,318,172,000 for the quarter ended September 30, 2021 and $2,441,881,000 for the quarter ended June 30, 2022, an increase of $96,242,000 or 4.15% and a decrease of $27,467,000 or 1.12%, respectively.
Total average deposits increased $126,133,000, or 6.24%, to $2,147,632,000 for the quarter ended September 30, 2022, compared to $2,021,499,000 for the quarter ended September 30, 2021, and decreased $10,108,000, or 0.47%, compared to $2,157,740,000 for the quarter ended June 30, 2022. The Company’s ratio of average non-interest bearing deposits to total deposits was 48.50% for the quarter ended September 30, 2022, compared to 45.30% and 43.92% for the quarters ended September 30, 2021 and June 30, 2022, respectively.
Central Valley Community Bancorp -- page 4
Non-Interest Income - The following table presents the key components of non-interest income for the current and trailing quarterly periods indicated:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | | | |
| (Dollars in thousands) | | September 30, 2022 | | June 30, 2022 | | $ Change | | % Change |
| Service charges | | $ | 475 | | | $ | 544 | | | $ | (69) | | | (12.7) | % |
| Appreciation in cash surrender value of bank owned life insurance | | 249 | | | 245 | | | 4 | | | 1.6 | % |
| Interchange fees | | 432 | | | 478 | | | (46) | | | (9.6) | % |
| Loan placement fees | | 155 | | | 268 | | | (113) | | | (42.2) | % |
| | | | | | | | |
| Net realized losses on sales and calls of investment securities | | (14) | | | (969) | | | 955 | | | (98.6) | % |
| Federal Home Loan Bank dividends | | 91 | | | 82 | | | 9 | | | 11.0 | % |
| Other Income | | 92 | | | 122 | | | (30) | | | (24.6) | % |
| Total non-interest income | | $ | 1,480 | | | $ | 770 | | | $ | 710 | | | 92.2 | % |
The change in the net realized losses on sales of investment securities during the quarter ended September 30, 2022 were primarily responsible for the increase in total non-interest income, when compared to the quarter ended June 30, 2022. This was offset by a decrease in loan placement fees and service charges.
The following table presents the key components of non-interest income for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | | | |
| (Dollars in thousands) | | September 30, 2022 | | September 30, 2021 | | $ Change | | % Change |
| Service charges | | $ | 475 | | | $ | 487 | | | $ | (12) | | | (2.5) | % |
| Appreciation in cash surrender value of bank owned life insurance | | 249 | | | 247 | | | 2 | | | 0.8 | % |
| Interchange fees | | 432 | | | 472 | | | (40) | | | (8.5) | % |
| Loan placement fees | | 155 | | | 467 | | | (312) | | | (66.8) | % |
| | | | | | | | |
| Net realized (losses) gains on sales and calls of investment securities | | (14) | | | 117 | | | (131) | | | (112.0) | % |
| Federal Home Loan Bank dividends | | 91 | | | 84 | | | 7 | | | 8.3 | % |
| Other Income | | 92 | | | 274 | | | (182) | | | (66.4) | % |
| Total non-interest income | | $ | 1,480 | | | $ | 2,148 | | | $ | (668) | | | (31.1) | % |
The decrease in loan placement fees were primarily responsible for the decrease in total non-interest income when comparing the quarters ended September 30, 2022 and September 30, 2021. This decrease was also the result of an increase in net realized losses on sales of investment securities and a decrease in other income, which was the from an increase in the equity investment loss recognized during the quarter ended September 30, 2022.
Central Valley Community Bancorp -- page 5
Non-Interest Expense - The following table presents the key components of non-interest expense for the current and trailing quarterly periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | | | |
| (Dollars in thousands) | | September 30, 2022 | | June 30, 2022 | | $ Change | | % Change |
| Salaries and employee benefits | | $ | 7,500 | | | $ | 7,057 | | | $ | 443 | | | 6.3 | % |
| Occupancy and equipment | | 1,363 | | | 1,344 | | | 19 | | | 1.4 | % |
| Information Technology | | 879 | | | 828 | | | 51 | | | 6.2 | % |
| Regulatory assessments | | 224 | | | 194 | | | 30 | | | 15.5 | % |
| Data processing expense | | 560 | | | 548 | | | 12 | | | 2.2 | % |
| Professional services | | 613 | | | 464 | | | 149 | | | 32.1 | % |
| ATM/Debit card expenses | | 176 | | | 217 | | | (41) | | | (18.9) | % |
| Internet banking expense | | 29 | | | 48 | | | (19) | | | (39.6) | % |
| Advertising | | 138 | | | 138 | | | — | | | — | % |
| Directors’ expenses | | 91 | | | 48 | | | 43 | | | 89.6 | % |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Amortization of core deposit intangibles | | 139 | | | 140 | | | (1) | | | (0.7) | % |
| Loan related expenses | | 157 | | | 68 | | | 89 | | | 130.9 | % |
| Personnel other | | 57 | | | 59 | | | (2) | | | (3.4) | % |
| | | | | | | | |
| Other expense | | 872 | | | 930 | | | (58) | | | (6.2) | % |
| Total non-interest expenses | | $ | 12,798 | | | $ | 12,083 | | | $ | 715 | | | 5.9 | % |
| | | | | | | | |
| | | | | | | | |
The following table presents the key components of non-interest expense for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Three months ended | | | | |
| (Dollars in thousands) | | September 30, 2022 | | September 30, 2021 | | $ Change | | % Change |
| Salaries and employee benefits | | $ | 7,500 | | | $ | 7,091 | | | $ | 409 | | | 5.8 | % |
| Occupancy and equipment | | 1,363 | | | 1,224 | | | 139 | | | 11.4 | % |
| Information Technology | | 879 | | | 891 | | | (12) | | | (1.3) | % |
| Regulatory assessments | | 224 | | | 219 | | | 5 | | | 2.3 | % |
| Data processing expense | | 560 | | | 599 | | | (39) | | | (6.5) | % |
| Professional services | | 613 | | | 507 | | | 106 | | | 20.9 | % |
| ATM/Debit card expenses | | 176 | | | 199 | | | (23) | | | (11.6) | % |
| Internet banking expense | | 29 | | | 54 | | | (25) | | | (46.3) | % |
| Advertising | | 138 | | | 129 | | | 9 | | | 7.0 | % |
| Directors’ expenses | | 91 | | | 152 | | | (61) | | | (40.1) | % |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Amortization of core deposit intangibles | | 139 | | | 174 | | | (35) | | | (20.1) | % |
| Loan related expenses | | 157 | | | 77 | | | 80 | | | 103.9 | % |
| Personnel other | | 57 | | | 28 | | | 29 | | | 103.6 | % |
| | | | | | | | |
| Other expense | | 872 | | | 718 | | | 154 | | | 21.4 | % |
| Total non-interest expenses | | $ | 12,798 | | | $ | 12,062 | | | $ | 736 | | | 6.1 | % |
| | | | | | | | |
| | | | | | | | |
Central Valley Community Bancorp -- page 6
The following table shows the Company’s outstanding loan portfolio as of September 30, 2022 and December 31, 2021:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loan Type (dollars in thousands) | | September 30, 2022 | | % of Total
Loans | | December 31, 2021 | | % of Total
Loans |
| Commercial: | | | | | | | | |
| Commercial and industrial | | $ | 147,715 | | | 12.1 | % | | $ | 136,847 | | | 13.2 | % |
| Agricultural production | | 35,125 | | | 2.9 | % | | 40,860 | | | 3.9 | % |
| Total commercial | | 182,840 | | | 15.0 | % | | 177,707 | | | 17.1 | % |
| Real estate: | | | | | | | | |
| Owner occupied | | 195,272 | | | 15.9 | % | | 212,234 | | | 20.4 | % |
| Real estate construction and other land loans | | 97,169 | | | 7.9 | % | | 61,586 | | | 5.9 | % |
| Commercial real estate | | 451,588 | | | 37.0 | % | | 369,529 | | | 35.6 | % |
| Agricultural real estate | | 115,477 | | | 9.4 | % | | 98,481 | | | 9.5 | % |
| Other real estate | | 85,930 | | | 7.0 | % | | 26,084 | | | 2.5 | % |
| Total real estate | | 945,436 | | | 77.2 | % | | 767,914 | | | 73.9 | % |
| Consumer: | | | | | | | | |
| Equity loans and lines of credit | | 60,151 | | | 4.9 | % | | 55,620 | | | 5.4 | % |
| Consumer and installment | | 35,546 | | | 2.9 | % | | 36,999 | | | 3.6 | % |
| Total consumer | | 95,697 | | | 7.8 | % | | 92,619 | | | 9.0 | % |
| Net deferred origination fees | | 1,297 | | | | | 871 | | | |
| Total gross loans | | 1,225,270 | | | 100.0 | % | | 1,039,111 | | | 100.0 | % |
| Allowance for credit losses | | (10,366) | | | | | (9,600) | | | |
| Total loans | | $ | 1,214,904 | | | | | $ | 1,029,511 | | | |
The following table shows the Company’s loan portfolio allocated by management’s internal risk ratings: | | | | | | | | | | | | | | | | | | | | |
| Loan Risk Rating (In thousands) | | September 30, 2022 | | June 30, 2022 | | September 30, 2021 |
| Pass | | $ | 1,170,422 | | | $ | 1,089,423 | | | $ | 1,034,229 | |
| Special mention | | 30,894 | | | 34,509 | | | 26,612 | |
| Substandard | | 22,657 | | | 10,756 | | | 23,065 | |
| Doubtful | | — | | | — | | | — | |
| Total | | $ | 1,223,973 | | | $ | 1,134,688 | | | $ | 1,083,906 | |
At September 30, 2022, the allowance for credit losses was $10,366,000, compared to $9,600,000 at December 31, 2021, a net increase of $766,000 reflecting a provision of $500,000 and net recoveries during the period. The Company is not required to implement the provisions of the CECL accounting standard until January 1, 2023, and is continuing to account for the allowance for credit losses under the incurred loss model. The allowance for credit losses as a percentage of total loans was 0.85% and 0.92% as of September 30, 2022 and December 31, 2021, respectively. Total loans include loans acquired in the acquisitions of Folsom Lake Bank on October 1, 2017, Sierra Vista Bank 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.
Central Valley Community Bancorp -- page 7
The recorded value of acquired loans totaled $79,232,000 at September 30, 2022 and $93,201,000 at December 31, 2021. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.90% and 1.01% as of September 30, 2022 and December 31, 2021, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 0.87% and 0.98%, respectively. As of September 30, 2022, gross loans included $350,000 related to PPP loans, which are fully guaranteed by the SBA as compared to $18,553,000 at December 31, 2021. Excluding PPP loans and the acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.90% and 1.04% as of September 30, 2022 and December 31, 2021, respectively. The Company believes the allowance for credit losses is adequate to provide for probable incurred credit losses within the loan portfolio at September 30, 2022.
The composition of the deposits at September 30, 2022 and December 31, 2021 is summarized in the table below: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | September 30, 2022 | | % of
Total
Deposits | | | December 31, 2021 | | % of
Total
Deposits |
| NOW accounts | | $ | 358,734 | | | 16.8 | % | | | $ | 360,462 | | | 17.0 | % |
| MMA accounts | | 439,048 | | | 20.5 | % | | | 511,448 | | | 24.1 | % |
| Time deposits | | 76,120 | | | 3.6 | % | | | 90,030 | | | 4.2 | % |
| Savings deposits | | 220,564 | | | 10.3 | % | | | 197,273 | | | 9.3 | % |
| Total interest-bearing | | 1,094,466 | | | 51.2 | % | | | 1,159,213 | | | 54.6 | % |
| Non-interest bearing | | 1,044,678 | | | 48.8 | % | | | 963,584 | | | 45.4 | % |
| Total deposits | | $ | 2,139,144 | | | 100.0 | % | | | $ | 2,122,797 | | | 100.0 | % |
Nine Months Ended September 30, 2022
Net income for the nine months ended September 30, 2022 decreased 11.83%, compared to the nine months ended September 30, 2021, driven by a provision for credit losses, a decrease in loan placement fees, an increase in the net realized loss on sales of investment securities, partially offset by an increase in service charge income, and a decrease in the provision for income taxes. During the nine months ended September 30, 2022, the Company recorded a $500,000 provision for credit losses, compared to a $3,800,000 reversal of provision during the nine months ended September 30, 2021. Net interest income before the provision for credit losses for the nine months ended September 30, 2022 was $57,571,000, compared to $53,846,000 for the nine months ended September 30, 2021, an increase of $3,725,000 or 6.92%. The impact to interest income from the accretion of the loan marks on acquired loans was $445,000 and $579,000 for the nine months ended September 30, 2022 and 2021, respectively. In addition, net interest income before the provision for credit losses for the nine months ended September 30, 2022 was impacted by approximately $562,000 in loan prepayment penalties, as compared to $438,000 for the nine months ended September 30, 2021. Excluding the loan mark accretion and prepayment penalties, net interest income for the nine months ended September 30, 2022 increased by $3,735,000 compared to the nine months ended September 30, 2021.
The Company recorded an income tax provision of $5,817,000 for the nine months ended September 30, 2022, compared to $7,227,000 for the nine months ended September 30, 2021. The effective tax rate for the nine
Central Valley Community Bancorp -- page 8
months ended September 30, 2022 was 23.43% compared to 25.10% for the nine months ended September 30, 2021. The effective tax rate was impacted by the increase in tax-exempt interest, as well as an increase in income from the appreciation in cash surrender value of bank owned life insurance.
During the nine months ended September 30, 2022, the Company’s shareholders’ equity decreased $89,031,000, or 35.92%, compared to December 31, 2021. The decrease in shareholders’ equity was driven by the adverse change in the unrealized position on available-for-sale (AFS) investment securities, and share repurchases, offset by the retention of earnings, net of dividends paid.
Return on average equity (ROE) for the nine months ended September 30, 2022 was 12.98%, compared to 11.60% for the nine months ended September 30, 2021. The increase in ROE reflects the decrease in average shareholders’ equity compared to the prior year. The Company declared and paid $0.36 and $0.35 per share in cash dividends to holders of common stock during the nine months ended September 30, 2022 and 2021, respectively. Return on average assets (ROA) was 1.04% for the nine months ended September 30, 2022 and 1.30% for the nine months ended September 30, 2021. This decrease was due to the decrease in net income and an increase in average assets. During the nine months ended September 30, 2022, the Company’s total assets decreased 1.00%, and total liabilities increased 2.93%, compared to December 31, 2021.
Non-performing assets decreased by $695,000, or 73.47%, to $251,000 at September 30, 2022, compared to $946,000 at December 31, 2021. During the nine months ended September 30, 2022, the Company recorded $766,000 in net loan recoveries, compared to $946,000 for the nine months ended September 30, 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.09)% for the nine months ended September 30, 2022, compared to (0.12)% for the same period in 2021. Total non-performing assets were 0.01% and 0.04% of total assets as of September 30, 2022 and December 31, 2021, respectively.
The Company’s net interest margin (fully tax equivalent basis) was 3.42% for the nine months ended September 30, 2022, compared to 3.60% for the nine months ended September 30, 2021. The decrease in net interest margin in the period-to-period comparison resulted from the decrease in the yield on the Company’s loan portfolio, and an increase in the balance of average interest-earning assets.
For the nine months ended September 30, 2022, the effective yield on average total earning assets decreased 12 basis points to 3.54% compared to 3.66% for the nine months ended September 30, 2021, while the cost of average total interest-bearing liabilities increased to 0.22% for the nine months ended September 30, 2022 as compared to 0.11% for the nine months ended September 30, 2021. Over the same periods, the cost of average total deposits decreased to 0.04% for the nine months ended September 30, 2022 compared to 0.05% for the same period in 2021.
For the nine months ended September 30, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $1,206,839,000, an increase of $240,734,000, or 24.92%, compared to the nine months ended September 30, 2021. The effective yield on average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased
Central Valley Community Bancorp -- page 9
to 2.35% for the nine months ended September 30, 2022, compared to 2.11% for the nine months ended September 30, 2021.
Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased $21,553,000 to $1,098,591,000 for the nine months ended September 30, 2022 from $1,077,038,000 for the nine months ended September 30, 2021. The effective yield on average loans decreased to 4.84% for the nine months ended September 30, 2022, compared to 5.04% for the nine months ended September 30, 2021. Total average PPP loans, which have a 1.00% interest rate in addition to loan fees, were $4,935,000 for the nine months ended September 30, 2022 as compared to $140,883,000 at September 30, 2021. Excluding PPP loans from total average loans, the effective yield on average loans for the nine months ended September 30, 2022 was immaterially impacted. As of September 30, 2021 the effective yield on average loans was 4.90% after excluding PPP loans.
Non-Interest Income - The following table presents the key components of non-interest income for the current and trailing periods indicated:
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine months ended | | | | |
| (Dollars in thousands) | | September 30, 2022 | | September 30, 2021 | | $ Change | | % Change |
| Service charges | | $ | 1,558 | | | $ | 1,386 | | | $ | 172 | | | 12.4 | % |
| Appreciation in cash surrender value of bank owned life insurance | | 736 | | | 596 | | | 140 | | | 23.5 | % |
| Interchange fees | | 1,352 | | | 1,313 | | | 39 | | | 3.0 | % |
| Loan placement fees | | 722 | | | 1,634 | | | (912) | | | (55.8) | % |
| | | | | | | | |
| Net realized (losses) gains on sales and calls of investment securities | | (777) | | | 38 | | | (815) | | | (2144.7) | % |
| Federal Home Loan Bank dividends | | 258 | | | 237 | | | 21 | | | 8.9 | % |
| Other Income | | 235 | | | 1,020 | | | (785) | | | (77.0) | % |
| Total non-interest income | | $ | 4,084 | | | $ | 6,224 | | | $ | (2,140) | | | (34.4) | % |
Central Valley Community Bancorp -- page 10
Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated: | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Nine months ended | | | | |
| (Dollars in thousands) | | September 30, 2022 | | September 30, 2021 | | $ Change | | % Change |
| Salaries and employee benefits | | $ | 21,501 | | | $ | 21,008 | | | $ | 493 | | | 2.3 | % |
| Occupancy and equipment | | 3,869 | | | 3,538 | | | 331 | | | 9.4 | % |
| Information Technology | | 2,465 | | | 2,061 | | | 404 | | | 19.6 | % |
| Regulatory assessments | | 640 | | | 552 | | | 88 | | | 15.9 | % |
| Data processing expense | | 1,649 | | | 1,841 | | | (192) | | | (10.4) | % |
| Professional services | | 1,451 | | | 1,338 | | | 113 | | | 8.4 | % |
| ATM/Debit card expenses | | 588 | | | 615 | | | (27) | | | (4.4) | % |
| Internet banking expense | | 98 | | | 262 | | | (164) | | | (62.6) | % |
| Advertising | | 416 | | | 386 | | | 30 | | | 7.8 | % |
| Directors’ expenses | | 184 | | | 306 | | | (122) | | | (39.9) | % |
| | | | | | | | |
| | | | | | | | |
| | | | | | | | |
| Amortization of core deposit intangibles | | 419 | | | 521 | | | (102) | | | (19.6) | % |
| Loan related expenses | | 291 | | | 216 | | | 75 | | | 34.7 | % |
| Personnel other | | 219 | | | 236 | | | (17) | | | (7.2) | % |
| | | | | | | | |
| Other expense | | 2,536 | | | 2,200 | | | 336 | | | 15.3 | % |
| Total non-interest expenses | | $ | 36,326 | | | $ | 35,080 | | | $ | 1,246 | | | 3.6 | % |
| | | | | | | | |
| | | | | | | | |
Total average assets for the nine months ended September 30, 2022 was $2,438,633,000 compared to $2,217,411,000 for the nine months ended September 30, 2021, an increase of $221,222,000 or 9.98%. During the nine months ended September 30, 2022 and 2021, the loan-to-deposit ratio was 57.28% and 52.65%, respectively. Total average deposits increased $220,541,000 or 11.42% to $2,151,717,000 for the nine months ended September 30, 2022, compared to $1,931,176,000 for the nine months ended September 30, 2021. Average interest-bearing deposits increased $128,385,000, or 12.27%, and average non-interest bearing demand deposits increased $92,156,000, or 10.41%, for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021. The Company’s ratio of average non-interest bearing deposits to total deposits was 45.41% for the nine months ended September 30, 2022, compared to 45.83% for the nine months ended September 30, 2021.
Capital Management
On September 15, 2022, the Company entered into a $30 million loan agreement with Bell Bank. Initially, payments of interest only are payable in 12 quarterly payments commencing December 31, 2022. Commencing December 31, 2025, 27 equal quarterly principal and interest payments are payable based on the outstanding balance of the loan on August 30, 2025 and an amortization of 48 quarters. A final payment of outstanding principal and accrued interest is due at maturity on September 30, 2032. Variable interest is payable at the Prime Rate (published by the Wall Street Journal) less 50 basis points. The loan is secured by the assets of
Central Valley Community Bancorp -- page 11
the Company and a pledge of the outstanding common stock of Central Valley Community Bank, the Company’s banking subsidiary. The Company may prepay the loan without penalty with one exception. If the loan is prepaid prior to August 30, 2025 with funds received from a financing source other than Bell Bank, the Company will incur a 2% prepayment penalty. The loan contains customary representations, covenants, and events of default.
On October 19, 2022, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on November 18, 2022 to shareholders of record as of November 4, 2022. The Company continues to be well capitalized and expects to maintain adequate capital levels.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank (CVCB), headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. CVCB operates full-service Banking Centers throughout California’s San Joaquin Valley and Greater Sacramento region, in addition to CVCB maintaining Commercial, Real Estate, and Agribusiness Lending, as well as Private Business Banking and Cash Management Departments.
Members of Central Valley Community Bancorp’s and CVCB’s Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), F. T. “Tommy” Elliott, IV, Robert J. Flautt, Gary D. Gall, James J. Kim, Andriana D. Majarian, Steven D. McDonald, Louis C. McMurray, Karen A. Musson, Dorothea D. Silva and William S. Smittcamp.
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, Facebook and LinkedIn.
###
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. 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; (3) a decline in economic conditions in the Central Valley and the Greater Sacramento Region, including the impact of inflation; (4) the Company’s ability to continue its internal growth at historical rates; (5) the Company’s ability to maintain its net interest margin; (6) the decline in quality of the Company’s earning assets; (7) a decline in credit quality; (8) changes in the regulatory environment; (9) fluctuations in the real estate market; (10) changes in business conditions and inflation; (11) changes in securities markets (12) risks associated with acquisitions, relating to difficulty in integrating combined operations and related negative impact on earnings, and incurrence of substantial expenses; (13) political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, pandemic diseases or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; (14) the other risks set forth in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021. 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 -- page 12
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | |
| | September 30, | | December 31, | | September 30, |
| (In thousands, except share amounts) | | 2022 | | 2021 | | 2021 |
| | | | | | |
| ASSETS | | | | | | |
| Cash and due from banks | | $ | 32,535 | | | $ | 29,412 | | | $ | 32,634 | |
| Interest-earning deposits in other banks | | 9,043 | | | 134,055 | | | 35,059 | |
| | | | | | |
| Total cash and cash equivalents | | 41,578 | | | 163,467 | | | 67,693 | |
| Available-for-sale investment securities | | 668,300 | | | 1,109,208 | | | 1,060,362 | |
| Held-to-maturity investment securities | | 305,482 | | | — | | | — | |
| Equity securities | | 6,544 | | | 7,416 | | | 7,486 | |
| Loans, less allowance for credit losses of $10,366, $9,600, and $10,061 at September 30, 2022, December 31, 2021, and September 30, 2021, respectively | | 1,214,904 | | | 1,029,511 | | | 1,073,436 | |
| Bank premises and equipment, net | | 7,909 | | | 8,380 | | | 8,429 | |
| | | | | | |
| Bank owned life insurance | | 40,289 | | | 39,553 | | | 39,309 | |
| Federal Home Loan Bank stock | | 6,169 | | | 5,595 | | | 5,595 | |
| Goodwill | | 53,777 | | | 53,777 | | | 53,777 | |
| Core deposit intangibles | | 102 | | | 522 | | | 662 | |
| Accrued interest receivable and other assets | | 80,644 | | | 32,710 | | | 31,628 | |
| Total assets | | $ | 2,425,698 | | | $ | 2,450,139 | | | $ | 2,348,377 | |
| | | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | |
| Deposits: | | | | | | |
| Non-interest bearing | | $ | 1,044,678 | | | $ | 963,584 | | | $ | 934,249 | |
| Interest bearing | | 1,094,466 | | | 1,159,213 | | | 1,123,843 | |
| Total deposits | | 2,139,144 | | | 2,122,797 | | | 2,058,092 | |
| Short-term borrowings | | 25,000 | | | — | | | — | |
| | | | | | |
| Senior debt and subordinated debentures | | 69,563 | | | 39,454 | | | 5,155 | |
| Accrued interest payable and other liabilities | | 33,177 | | | 40,043 | | | 38,582 | |
| Total liabilities | | 2,266,884 | | | 2,202,294 | | | 2,101,829 | |
| Shareholders’ equity: | | | | | | |
| Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding | | — | | | — | | | — | |
| Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,732,011, 11,916,651, and 11,987,904, at September 30, 2022, December 31, 2021, and September 30, 2021, respectively | | 61,262 | | | 66,820 | | | 68,265 | |
| | | | | | |
| Retained earnings | | 188,174 | | | 173,393 | | | 167,993 | |
| Accumulated other comprehensive (loss) income, net of tax | | (90,622) | | | 7,632 | | | 10,290 | |
| Total shareholders’ equity | | 158,814 | | | 247,845 | | | 246,548 | |
| Total liabilities and shareholders’ equity | | $ | 2,425,698 | | | $ | 2,450,139 | | | $ | 2,348,377 | |
Central Valley Community Bancorp -- page 13
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended, | | For the Nine Months Ended |
| | September 30, | | June 30, | | September 30, | | September 30, |
| (In thousands, except share and per-share amounts) | | 2022 | | 2022 | | 2021 | | 2022 | | 2021 |
| | | | | | | | | | |
| INTEREST INCOME: | | | | | | | | | | |
| Interest and fees on loans | | $ | 14,708 | | | 12,883 | | | $ | 13,208 | | | $ | 39,752 | | | $ | 40,529 | |
| Interest on deposits in other banks | | 48 | | | 52 | | | 28 | | | 157 | | | 89 | |
| | | | | | | | | | |
| Interest and dividends on investment securities: | | | | | | | | | | |
| Taxable | | 4,411 | | | 5,651 | | | 3,844 | | | 14,586 | | | 9,938 | |
| Exempt from Federal income taxes | | 1,825 | | | 1,879 | | | 1,417 | | | 5,144 | | | 4,143 | |
| Total interest income | | 20,992 | | | 20,465 | | | 18,497 | | | 59,639 | | | 54,699 | |
| INTEREST EXPENSE: | | | | | | | | | | |
| Interest on deposits | | 231 | | | 231 | | | 263 | | | 714 | | | 783 | |
| Interest on subordinated debentures and borrowings | | 597 | | | 424 | | | 24 | | | 1,354 | | | 70 | |
| | | | | | | | | | |
| Total interest expense | | 828 | | | 655 | | | 287 | | | 2,068 | | | 853 | |
| Net interest income before provision for credit losses | | 20,164 | | | 19,810 | | | 18,210 | | | 57,571 | | | 53,846 | |
| PROVISION FOR (REVERSAL OF) CREDIT LOSSES | | 500 | | | — | | | (500) | | | 500 | | | (3,800) | |
| Net interest income after provision for credit losses | | 19,664 | | | 19,810 | | | 18,710 | | | 57,071 | | | 57,646 | |
| NON-INTEREST INCOME: | | | | | | | | | | |
| Service charges | | 475 | | | 544 | | | 487 | | | 1,558 | | | 1,386 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Net realized (losses) gains on sales and calls of investment securities | | (14) | | | (969) | | | 117 | | | (777) | | | 38 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Other income | | 1,019 | | | 1,195 | | | 1,544 | | | 3,303 | | | 4,800 | |
| Total non-interest income | | 1,480 | | | 770 | | | 2,148 | | | 4,084 | | | 6,224 | |
| NON-INTEREST EXPENSES: | | | | | | | | | | |
| Salaries and employee benefits | | 7,500 | | | 7,057 | | | 7,091 | | | 21,501 | | | 21,008 | |
| Occupancy and equipment | | 1,363 | | | 1,344 | | | 1,224 | | | 3,869 | | | 3,538 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Other expense | | 3,935 | | | 3,682 | | | 3,747 | | | 10,956 | | | 10,534 | |
| Total non-interest expenses | | 12,798 | | | 12,083 | | | 12,062 | | | 36,326 | | | 35,080 | |
| Income before provision for income taxes | | 8,346 | | | 8,497 | | | 8,796 | | | 24,829 | | | 28,790 | |
| PROVISION FOR INCOME TAXES | | 1,962 | | | 1,955 | | | 2,275 | | | 5,817 | | | 7,227 | |
| Net income | | $ | 6,384 | | | $ | 6,542 | | | $ | 6,521 | | | $ | 19,012 | | | $ | 21,563 | |
| | | | | | | | | | |
| | | | | | | | | | |
| | | | | | | | | | |
| Net income per common share: | | | | | | | | | | |
| Basic earnings per common share | | $ | 0.55 | | | $ | 0.56 | | | $ | 0.54 | | | $ | 1.62 | | | $ | 1.75 | |
| Weighted average common shares used in basic computation | | 11,678,532 | | | 11,665,074 | | | 12,007,689 | | | 11,723,790 | | | 12,332,248 | |
| Diluted earnings per common share | | $ | 0.55 | | | $ | 0.56 | | | $ | 0.54 | | | $ | 1.62 | | | $ | 1.74 | |
| Weighted average common shares used in diluted computation | | 11,689,323 | | | 11,685,850 | | | 12,044,896 | | | 11,748,693 | | | 12,378,591 | |
| Cash dividends per common share | | $ | 0.12 | | | $ | 0.12 | | | $ | 0.12 | | | $ | 0.36 | | | $ | 0.35 | |
Central Valley Community Bancorp -- page 14
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, |
| For the three months ended | | 2022 | | 2022 | | 2022 | | 2021 | | 2021 |
| (In thousands, except share and per share amounts) | | | | | | | | | | |
| Net interest income | | $ | 20,164 | | | $ | 19,810 | | | $ | 17,597 | | | $ | 18,708 | | | $ | 18,210 | |
| Provision for (reversal of) credit losses | | 500 | | | — | | | — | | | (500) | | | (500) | |
| Net interest income after provision for credit losses | | 19,664 | | | 19,810 | | | 17,597 | | | 19,208 | | | 18,710 | |
| Total non-interest income | | 1,480 | | | 770 | | | 1,834 | | | 2,781 | | | 2,148 | |
| Total non-interest expense | | 12,798 | | | 12,083 | | | 11,445 | | | 12,762 | | | 12,062 | |
| Provision for income taxes | | 1,962 | | | 1,955 | | | 1,900 | | | 2,389 | | | 2,275 | |
| Net income | | $ | 6,384 | | | $ | 6,542 | | | $ | 6,086 | | | $ | 6,838 | | | $ | 6,521 | |
| | | | | | | | | | |
| Basic earnings per common share | | $ | 0.55 | | | $ | 0.56 | | | $ | 0.51 | | | $ | 0.57 | | | $ | 0.54 | |
| Weighted average common shares used in basic computation | | 11,678,532 | | | 11,665,074 | | | 11,829,245 | | | 11,956,045 | | | 12,007,689 | |
| Diluted earnings per common share | | $ | 0.55 | | | $ | 0.56 | | | $ | 0.51 | | | $ | 0.57 | | | $ | 0.54 | |
| Weighted average common shares used in diluted computation | | 11,689,323 | | | 11,685,850 | | | 11,872,025 | | | 11,994,590 | | | 12,044,896 | |
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Sep. 30, | | Jun. 30, | | Mar. 31, | | Dec. 31, | | Sep. 30, |
| As of and for the three months ended | | 2022 | | 2022 | | 2022 | | 2021 | | 2021 |
| (Dollars in thousands, except per share amounts) | | | | | | | | | | |
| Allowance for credit losses to total loans | | 0.85 | % | | 0.87 | % | | 0.97 | % | | 0.92 | % | | 0.93 | % |
| Non-performing assets to total assets | | 0.01 | % | | 0.01 | % | | 0.01 | % | | 0.04 | % | | 0.07 | % |
| Total non-performing assets | | $ | 251 | | | $ | 271 | | | $ | 292 | | | $ | 946 | | | $ | 1,597 | |
| Total nonaccrual loans | | $ | 251 | | | $ | 271 | | | $ | 292 | | | $ | 946 | | | $ | 1,597 | |
| Total substandard loans | | $ | 22,657 | | | $ | 10,756 | | | $ | 10,739 | | | $ | 8,540 | | | $ | 23,065 | |
| Total special mention loans | | $ | 30,894 | | | $ | 34,509 | | | $ | 39,901 | | | $ | 40,845 | | | $ | 26,612 | |
| Net loan charge-offs (recoveries) | | $ | (493) | | | $ | (9) | | | $ | (264) | | | $ | (39) | | | $ | (122) | |
| Net charge-offs (recoveries) to average loans (annualized) | | (0.17) | % | | — | % | | (0.10) | % | | (0.01) | % | | (0.05) | % |
| Book value per share | | $ | 13.54 | | | $ | 13.90 | | | $ | 16.31 | | | $ | 20.80 | | | $ | 20.57 | |
| Tangible book value per share | | $ | 8.94 | | | $ | 9.29 | | | $ | 11.70 | | | $ | 16.24 | | | $ | 16.03 | |
| Tangible common equity | | $ | 104,935 | | | $ | 108,863 | | | $ | 137,501 | | | $ | 193,546 | | | $ | 192,109 | |
| Cost of total deposits | | 0.04 | % | | 0.04 | % | | 0.05 | % | | 0.05 | % | | 0.05 | % |
| Interest and dividends on investment securities exempt from Federal income taxes | | $ | 1,825 | | | $ | 1,879 | | | $ | 1,440 | | | $ | 1,463 | | | $ | 1,417 | |
| Net interest margin (calculated on a fully tax equivalent basis) (1) | | 3.57 | % | | 3.48 | % | | 3.19 | % | | 3.39 | % | | 3.47 | % |
| Return on average assets (2) | | 1.06 | % | | 1.07 | % | | 0.99 | % | | 1.13 | % | | 1.13 | % |
| Return on average equity (2) | | 14.42 | % | | 14.73 | % | | 10.51 | % | | 11.21 | % | | 10.41 | % |
| Loan to deposit ratio | | 57.28 | % | | 53.94 | % | | 46.80 | % | | 48.95 | % | | 52.65 | % |
| Efficiency ratio | | 57.20 | % | | 54.20 | % | | 57.66 | % | | 58.94 | % | | 57.66 | % |
| Tier 1 leverage - Bancorp | | 8.26 | % | | 7.89 | % | | 7.87 | % | | 8.03 | % | | 8.24 | % |
| Tier 1 leverage - Bank | | 10.73 | % | | 9.10 | % | | 8.54 | % | | 8.47 | % | | 8.18 | % |
| Common equity tier 1 - Bancorp | | 11.56 | % | | 11.94 | % | | 12.06 | % | | 12.48 | % | | 12.34 | % |
| Common equity tier 1 - Bank | | 15.41 | % | | 14.15 | % | | 13.43 | % | | 13.52 | % | | 12.59 | % |
| Tier 1 risk-based capital - Bancorp | | 11.86 | % | | 12.26 | % | | 12.38 | % | | 12.82 | % | | 12.68 | % |
| Tier 1 risk-based capital - Bank | | 15.41 | % | | 14.15 | % | | 13.43 | % | | 13.52 | % | | 12.59 | % |
| Total risk-based capital - Bancorp | | 14.54 | % | | 15.07 | % | | 15.27 | % | | 15.80 | % | | 13.39 | % |
| Total risk based capital - Bank | | 16.03 | % | | 14.78 | % | | 14.08 | % | | 14.18 | % | | 13.29 | % |
(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.
Central Valley Community Bancorp -- page 15
CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | For the Three Months Ended | | For the Nine Months Ended |
| AVERAGE AMOUNTS | | September 30, | | June 30, | | September 30, | | September 30, | | September 30, |
| (Dollars in thousands) | | 2022 | | 2022 | | 2021 | | 2022 | | 2021 |
| | | | | | | | | | |
| Interest-bearing deposits in other banks | | $ | 6,192 | | | $ | 33,067 | | | $ | 70,980 | | | 55,925 | | | 104,705 | |
| Investments | | 1,095,774 | | | 1,219,427 | | | 988,148 | | | 1,150,914 | | | 861,400 | |
| Loans (1) | | 1,189,762 | | | 1,085,887 | | | 1,068,111 | | | 1,098,274 | | | 1,074,302 | |
| Earning assets | | 2,291,728 | | | 2,338,381 | | | 2,127,239 | | | 2,305,113 | | | 2,040,407 | |
| Allowance for credit losses | | (9,877) | | | (9,870) | | | (10,558) | | | (9,860) | | | (11,969) | |
| Nonaccrual loans | | 260 | | | 280 | | | 1,844 | | | 317 | | | 2,736 | |
| | | | | | | | | | |
| Other non-earning assets | | 132,303 | | | 113,090 | | | 199,647 | | | 143,063 | | | 186,237 | |
| Total assets | | $ | 2,414,414 | | | $ | 2,441,881 | | | $ | 2,318,172 | | | $ | 2,438,633 | | | $ | 2,217,411 | |
| | | | | | | | | | |
| Interest bearing deposits | | $ | 1,105,934 | | | $ | 1,210,016 | | | $ | 1,105,757 | | | $ | 1,174,553 | | | $ | 1,046,168 | |
| Other borrowings | | 60,794 | | | 78,435 | | | 5,155 | | | 59,646 | | | 5,155 | |
| Total interest-bearing liabilities | | 1,166,728 | | | 1,288,451 | | | 1,110,912 | | | 1,234,199 | | | 1,051,323 | |
| Non-interest bearing demand deposits | | 1,041,698 | | | 947,724 | | | 915,742 | | | 977,164 | | | 885,008 | |
| Non-interest bearing liabilities | | 28,905 | | | 28,091 | | | 40,998 | | | 31,975 | | | 33,266 | |
| Total liabilities | | 2,237,331 | | | 2,264,266 | | | 2,067,652 | | | 2,243,338 | | | 1,969,597 | |
| Total equity | | 177,083 | | | 177,615 | | | 250,520 | | | 195,295 | | | 247,814 | |
| Total liabilities and equity | | $ | 2,414,414 | | | $ | 2,441,881 | | | $ | 2,318,172 | | | $ | 2,438,633 | | | $ | 2,217,411 | |
| | | | | | | | | | |
| AVERAGE RATES | | | | | | | | | | |
| | | | | | | | | | |
| Interest-earning deposits in other banks | | 3.10 | % | | 0.64 | % | | 0.16 | % | | 0.37 | % | | 0.11 | % |
| Investments | | 2.45 | % | | 2.63 | % | | 2.28 | % | | 2.44 | % | | 2.35 | % |
| Loans (3) | | 4.90 | % | | 4.76 | % | | 4.91 | % | | 4.84 | % | | 5.04 | % |
| Earning assets | | 3.72 | % | | 3.60 | % | | 3.52 | % | | 3.54 | % | | 3.66 | % |
| Interest-bearing deposits | | 0.08 | % | | 0.08 | % | | 0.09 | % | | 0.08 | % | | 0.10 | % |
| Other borrowings | | 3.93 | % | | 2.16 | % | | 1.71 | % | | 3.03 | % | | 1.81 | % |
| Total interest-bearing liabilities | | 0.28 | % | | 0.20 | % | | 0.10 | % | | 0.22 | % | | 0.11 | % |
| Net interest margin (calculated on a fully tax equivalent basis) (2) | | 3.57 | % | | 3.48 | % | | 3.47 | % | | 3.42 | % | | 3.60 | % |
(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 $486, $499, and $377, for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021, respectively. The Federal tax benefits relating to income earned on municipal bonds totaled $1,368 and $1,101 for the nine months ended September 30, 2022 and 2021, respectively.
(3) Loan yield includes loan fees (costs) for the three months ended September 30, 2022, June 30, 2022, and September 30, 2021 of $(80), $226, and $1,076, respectively. Loan yield includes loan fees (costs) for the nine months ended September 30, 2022 and 2021 of $410 and $4,966, respectively.
CONTACTS: Investor Contact:
James Kim
President and Chief Executive Officer
Central Valley Community Bancorp
559-323-3446
Media Contact:
Debbie Nalchajian-Cohen
Marketing Director
Central Valley Community Bancorp
559-222-1322
