CLOVIS, Calif.--(BUSINESS WIRE)--Jan. 18, 2006--The Board of
Directors of Central Valley Community Bancorp (Company) (Nasdaq:CVCY),
the parent company of Central Valley Community Bank (Bank), reported
unaudited consolidated net income of $6,044,000, or $0.94 per diluted
share (diluted EPS), for the year ended December 31, 2005, compared to
$3,695,000, or $0.64 diluted EPS in the same period 2004. The 47%
increase in diluted EPS occurred even though the Company issued
522,106 additional shares effective January 1, 2005 as the result of
the merger with Bank of Madera County (BMC). The 64% increase in net
income and the 47% increase in diluted EPS reflect the successful
completion of the Company's first acquisition, the positive impact of
the increasing interest rate environment, and the Company's continued
organic growth. Diluted EPS reflect the 2-for-1 stock split
distributed by the Company in the fourth quarter of 2005.
Return on average equity for 2005 was 15.63% compared to 13.10%
for 2004 and return on average assets increased to 1.33% for 2005
compared to 1.07% for 2004.
Earnings for the fourth quarter of 2005 provide further indication
of the Company's successful year with net income of $1,668,000 for the
fourth quarter of 2005 compared to $1,041,000 for the fourth quarter
of 2004. Diluted EPS were $0.25 for the fourth quarter of 2005
compared to $0.18 in the fourth quarter of 2004.
"The Company completed its first full year of operations following
the merger with Bank of Madera County and we are pleased to report
that all anticipated benefits of the merger were achieved. The
significant growth in assets, loans and deposits for 2005 was
attributable to the merger, as well as the continued internal growth
of the Bank," said Daniel J. Doyle, president and CEO of Central
Valley Community Bancorp and Central Valley Community Bank. "Looking
into 2006, the Bank is preparing to open its tenth office in February
in Downtown Fresno and the Board of Directors and management team have
high expectations for excellent performance and continued growth in
all areas in spite of facing continued increases in competition from
new banks and branches of competitors," continued Doyle.
In 2005, the $6,044,000 record earnings included a provision for
credit loss of $510,000 and the operations of the two additional
branches added in the merger. Comparing 2005 to 2004, average total
loans increased by $82,632,000, or 42% while the $99,735,000, or 32%
increase in average deposits provided the funding. The net interest
margin was 5.46% for the year ended 2005 compared to 4.91% for the
same period 2004 reflecting the overall positive impact of the rising
interest rate environment. The Federal Open Market Committee (FOMC)
raised interest rates 8 times or 200 basis points in 2005.
The Company's average earning assets increased 33% in 2005 to
$414,257,000 compared to $311,456,000 in 2004. Asset quality remained
strong in 2005 as the average loans increased 42% to $277,855,000
compared to $195,223,000 in 2004. However the Company reported a
provision to credit losses for the first time in 3 years. Two related
commercial loans totaling $688,000 were charged off in the fourth
quarter of 2005 bringing the net charge offs to $619,000 for 2005
compared to net recoveries of $272,000 for 2004. Net charge offs as a
percentage of average total loans was 0.22% for 2005 compared to net
recoveries of 0.14% in 2004. Non performing loans at December 31, 2005
were $616,000 or 0.20% of total loans.
Non interest income decreased 5% in 2005 compared to 2004 due
mainly to the decrease of $391,000 in gains realized on the sale of
investments. Non interest expense increased 20% in 2005 compared to
2004 reflecting the additional two branches and personnel from the BMC
merger and normal increases in salary and benefits, incentive
compensation and increases for equipment and occupancy expenses.
The 60% increase in net income for the fourth quarter of 2005
compared to the fourth quarter of 2004 reflects the 31% increase in
average earnings assets and the two 25 basis point increases in
interest rates by the FOMC in the fourth quarter.
Average loans for the fourth quarter of 2005 were $297,170,000
compared to $204,886,000 for the fourth quarter of 2004, a 45%
increase. This increase was funded by the 31% increase in average
deposits. Average deposits for the fourth quarter of 2005 were
$423,452,000 compared to $324,441,000 for 2004. The effective yield on
loans for the fourth quarter of 2005 was 8.01% compared to 7.22% for
the same period of 2004. The effective rate on total deposits for the
fourth quarter of 2005 was 1.12% compared to 0.62% for the same period
of 2004. The tax-equivalent net interest margin for the fourth quarter
of 2005 was 5.65% compared to 5.18% for the same period 2004.
Return on average equity was 16.26% for the fourth quarter of 2005
compared to 14.09% for the same period of 2004 and return on average
assets increased to 1.41% compared to 1.14% when comparing the
quarters.
Non interest income increased 10% in the fourth quarter of 2005
mainly reflective of the increases in service charges and loan
placement fees. Non-interest expense increased 9% when comparing the
fourth quarter 2005 to the same period of 2004. Salaries, benefits,
and incentive-based compensation increased due to the merger and the
loan and deposit growth.
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 scheduled to open in Downtown Fresno in February 2006.
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.
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED BALANCE SHEET
(Unaudited)
Dec. 31, Dec. 31,
(In thousands except share amounts) 2005 2004
-------------------------------------------------- --------- ---------
ASSETS
Cash and cash equivalents $ 23,083 $ 20,112
Federal funds sold 29,830 26,307
Available-for-sale investment securities 105,592 98,983
Loans, less allowance for credit losses of $3,339
at Dec. 31, 2005 and $2,697 at Dec. 31, 2004 298,463 206,582
Bank premises and equipment, net 2,912 2,724
Goodwill and intangible assets 10,241 -
Accrued interest receivable and other assets 13,556 13,439
--------- ---------
Total assets $483,677 $368,147
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $153,004 $105,235
Interest bearing 277,985 220,951
--------- ---------
Total deposits 430,989 326,186
Borrowings 6,500 8,500
Accrued interest payable and other liabilities 4,665 3,855
--------- ---------
Total liabilities 442,154 338,541
--------- ---------
Shareholders equity:
Common Stock, no par value, 80,000,000 shares
authorized, 5,891,820 and 5,257,734 shares
issued and outstanding at Dec. 31, 2005 and
Dec. 31, 2004. 13,053 6,343
Retained earnings 28,977 22,933
Accumulated other comprehensive (loss) income,
net of taxes (507) 330
--------- ---------
Total shareholders' equity 41,523 29,606
--------- ---------
Total liabilities and shareholders' equity $483,677 $368,147
========= =========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Dec. 31, Dec. 31,
For the years ended 2005 2004
---------------------------------------------------- -------- --------
(In thousands except per share amounts)
Net interest income $21,931 $14,821
Provision for credit losses 510 0
-------- --------
Net interest income after provision for credit losses 21,421 14,821
Total non-interest income 3,760 3,937
Total non-interest expense 15,793 13,119
Provision for income taxes 3,344 1,944
-------- --------
NET INCOME $ 6,044 $ 3,695
======== ========
Basic Earnings per Share $ 1.03 $ 0.71
======== ========
Diluted Earnings per Share $ 0.94 $ 0.64
======== ========
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(Unaudited)
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
For the three months ended 2005 2005 2005 2005 2004
------------------------------ ------ ------ ------ ------ ------
(In thousands except per share
amounts)
Net Interest Income $5,945 $5,592 $5,357 $5,037 $4,170
Provision for credit losses 500 10 - - -
------- ------- ------- ------- -------
Net interest income after
provision for credit losses 5,445 5,582 5,357 5,037 4,170
Total Non-Interest Income 933 960 1,012 855 852
Total Non-Interest Expense 3,811 3,953 3,978 4,051 3,496
Provision for Income Taxes 899 940 858 647 485
------- ------- ------- ------- -------
NET INCOME $1,668 $1,649 $1,533 $1,194 $1,041
======= ======= ======= ======= =======
Basic Earnings per Share $ 0.28 $ 0.28 $ 0.26 $ 0.21 $ 0.20
======= ======= ======= ======= =======
Diluted Earnings per Share $ 0.25 $ 0.26 $ 0.24 $ 0.19 $ 0.18
======= ======= ======= ======= =======
CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Dec. Sept. June March Dec.
31, 30, 30, 31, 31,
For the three months ended 2005 2005 2005 2005 2004
------------------------------ ------ ------ ------ ------ ------
(Dollars in thousands)
Allowance for credit losses to
total loans 1.11% 1.21% 1.26% 1.31% 1.29%
Nonperforming loans to total
loans 0.20% 0.20% 0.36% 0.50% 0.00%
Total nonperforming assets $ 616 $ 591 $1,023 $1,308 $ -
Net interest margin
(calculated on a fully tax
equivalent basis) 5.65% 5.57% 5.40% 5.19% 5.18%
Return on average assets 1.41% 1.45% 1.36% 1.08% 1.14%
Return on average equity 16.26% 16.67% 16.15% 13.22% 14.09%
CONTACT: Cohen Communications
Debra Nalchajian-Cohen, 559-222-1322
SOURCE: Central Valley Community Bancorp