Central Valley Community Bancorp Reports Earnings Results for the Nine Months and Quarter Ended September 30, 2020, and Quarterly Dividend

FRESNO, Calif.--()--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 $13,268,000, and fully diluted earnings per common share of $1.05 for the nine months ended September 30, 2020, compared to $16,994,000 and $1.25 per fully diluted common share for the nine months ended September 30, 2019.

THIRD QUARTER FINANCIAL HIGHLIGHTS

  • Net loans increased $161.0 million or 17.23%, and total assets increased $353.8 million or 22.16% at September 30, 2020 compared to December 31, 2019.
  • Total deposits increased 26.10% to $1.68 billion at September 30, 2020 compared to December 31, 2019.
  • Total cost of deposits remains at low levels at 0.09% and 0.17% for the quarters ended September 30, 2020 and 2019, respectively.
  • Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 48.56% and 43.24% for the quarters ended September 30, 2020 and 2019, respectively.
  • Non-performing assets were $3,458,000, net loan recoveries were $120,000, and loans delinquent more than 30 days were $250,000 for the quarter ended September 30, 2020.
  • Capital positions remain strong at September 30, 2020 with a 9.26% Tier 1 Leverage Ratio; a 14.23% Common Equity Tier 1 Ratio; a 14.65% Tier 1 Risk-Based Capital Ratio; and a 15.90% Total Risk-Based Capital Ratio.
  • The Company declared an $0.11 per common share cash dividend, payable on November 27, 2020 to shareholders of record on November 13, 2020.

“Our financial results for the three months and nine months ended September 30, 2020, demonstrate that the Bank remains well-positioned for growth and stability with the increase of deposits and total assets, though demand for loans continues to be a challenge at this time,” stated James M. Ford, President & CEO of Central Valley Community Bancorp and Central Valley Community Bank.

“Despite the ongoing challenges affecting our region, Central Valley Community Bank continues to provide the solid performance and helpful banking services our local communities have come to trust. We remain vigilant as to the direct and indirect financial impacts the pandemic and California wildfires are having on clients and our own employees. We continue to remain hopeful as there are signs of the economy slowly recovering; however, we remain cautious until the long-term impacts of the California wildfires and COVID-19 are known,” concluded Ford.

The Company’s management team has evaluated its exposure to increased loan losses related to the COVID-19 pandemic and has performed borrower analysis on the customers in the loan portfolio as of September 30, 2020. The following table includes loan-to-value ratios as of September 30, 2020 for loans collateralized by real estate based on loan commitment amounts and appraisal data performed either at the origination date of the loan or based on a more current updated appraisal.

Loan Type
(Dollars in thousands)

 

Loan
Commitment
Balance

 

Loan to Value
Ratio

Commercial Real Estate:

 

 

 

 

Owner occupied

 

$

195,189

 

 

50.7

%

Construction and other land loans

 

72,612

 

 

65.8

%

Non-owner occupied

 

318,766

 

 

52.6

%

Agricultural

 

75,747

 

 

36.5

%

Other

 

34,883

 

 

53.1

%

Consumer equity loans and lines of credit

 

58,614

 

 

58.5

%

Total

 

$

755,811

 

 

 

The Company is closely monitoring the effects of the pandemic on our loan and deposit customers. Our management team is focused on assessing the risks in our loan portfolio and working with our customers to minimize our losses. We have implemented loan programs to allow customers who were required to close or reduce their business operations to defer loan principal and interest payments for up to 90 days. As of September 30, 2020, loan customer requests to defer payments on loans totaling approximately $60 million were outstanding, of which, based on management’s customer inquiries, approximately $4 million or 7% expect to require up to an additional 90-day deferral, and $4.09 million or 6% expect they will require a loan modification.

As a preferred SBA lender, we are participating in the SBA Paycheck Protection Program (PPP) to help provide loans to our business customers to provide them with additional working capital. The Company has worked diligently with the SBA to qualify clients to receive PPP loans. As of September 30, 2020, PPP loans in the following size categories were outstanding:

PPP Loan Size Categories (Dollars in thousands)

 

Number of
Loans

 

Amount

Up to $150,000

 

783

 

 

$

41,692

 

$150,001 to $500,000

 

205

 

 

53,705

 

$500,001 to $1,000,000

 

44

 

 

30,347

 

$1,000,001 to $2,000,000

 

31

 

 

44,008

 

Over $2,000,000

 

13

 

 

40,305

 

Total

 

1,076

 

 

$

210,057

 

The SBA PPP fees net of issuance costs to be recognized by the Company over the remaining life of the loans total approximately $5.1 million. The Company has also taken measures to protect the health and safety of its employees by implementing remote work arrangements to the full extent possible, and by adjusting banking center hours and operational measures to promote social distancing. Management is closely monitoring credit metrics. Additional resources have been shifted to credit administration to closely analyze higher risk segments within the loan portfolio, monitor and track loan payment deferrals and customer liquidity, and provide timely reporting to management and the board of directors. The management team continues to analyze economic conditions in our geographic markets and perform stress testing of our investment portfolio as well as our loan portfolio. The following table shows the Company’s loan portfolio allocated by management’s internal risk ratings:

Loan Risk Rating (In thousands)

 

September 30,
2020

 

June 30,
2020

 

December 31,
2019

Pass

 

$

1,032,141

 

 

$

1,055,944

 

 

$

879,844

 

Special mention

 

43,893

 

 

35,735

 

 

28,183

 

Substandard

 

37,643

 

 

38,672

 

 

33,838

 

Doubtful

 

 

 

 

 

 

Total

 

$

1,113,677

 

 

$

1,130,351

 

 

$

941,865

 

Based on the Company’s capital levels, conservative underwriting policies, low loan-to-deposit ratio, loan concentration diversification, and suburban geographical marketplace, management expects to be able to manage the economic risks and uncertainties associated with the COVID-19 pandemic and remain adequately capitalized.

Net income for the nine months ended September 30, 2020 decreased 21.93%, driven by a decrease in net interest income, an increase in the provision for credit losses, a decrease in net realized gains on sales and calls of investment securities, and an increase in non-interest expense, partially offset by an increase in loan placement fees, and a decrease in the provision for income taxes, compared to the nine months ended September 30, 2019. During the nine months ended September 30, 2020, the Company recorded a $4,975,000 provision for credit losses, compared to a $525,000 provision during the nine months ended September 30, 2019. Net interest income before the provision for credit losses for the nine months ended September 30, 2020 was $47,646,000, compared to $47,985,000 for the nine months ended September 30, 2019, a decrease of $339,000 or 0.71%. The impact to interest income from the accretion of the loan marks on acquired loans was $1,039,000 and $750,000 for the nine months ended September 30, 2020 and 2019, respectively. In addition, net interest income before the provision for credit losses for the nine months ended September 30, 2020 was benefited by approximately $505,000 in nonrecurring income from prepayment penalties and payoff of loans, as compared to $593,000 in nonrecurring income for the nine months ended September 30, 2019. Excluding these reversals and benefits, net interest income for the nine months ended September 30, 2020 decreased by $540,000 compared to the nine months ended September 30, 2019.

During the nine months ended September 30, 2020, the Company’s shareholders’ equity increased $7,652,000, or 3.35%, compared to December 31, 2019. The increase in shareholders’ equity was driven by the retention of earnings, net of dividends paid, and an increase in net unrealized gains on available-for-sale (AFS) securities recorded, net of estimated taxes, in accumulated other comprehensive income (AOCI), offset by the decrease in common stock as a result of the share repurchase program.

Return on average equity (ROE) for the nine months ended September 30, 2020 was 7.78%, compared to 9.96% for the nine months ended September 30, 2019. The decrease in ROE reflects the decrease in net income, notwithstanding the decrease in average shareholders’ equity compared to the prior year. The Company declared and paid $0.33 and $0.32 per share in cash dividends to holders of common stock during the nine months ended September 30, 2020 and 2019, respectively. Annualized return on average assets (ROA) was 0.99% for the nine months ended September 30, 2020 and 1.44% for the nine months ended September 30, 2019. This decrease is due to a decrease in net income and an increase in average assets. During the nine months ended September 30, 2020, the Company’s total assets increased 22.16%, and total liabilities increased 25.29%, compared to December 31, 2019 primarily due to the Company’s participation in the PPP.

Non-performing assets increased by $1,765,000, or 104.25%, to $3,458,000 at September 30, 2020, compared to $1,693,000 at December 31, 2019. During the nine months ended September 30, 2020, the Company recorded $552,000 in net loan recoveries, compared to $134,000 in net loan charge-offs for the nine months ended September 30, 2019. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.07)% for the nine months ended September 30, 2020, compared to 0.02% for the same period in 2019. Total non-performing assets were 0.18% and 0.11% of total assets as of September 30, 2020 and December 31, 2019, respectively.

At September 30, 2020, the allowance for credit losses was $14,657,000, compared to $9,130,000 at December 31, 2019, a net increase of $5,527,000 reflecting the provisioning and net recoveries during the period. The Company’s provision for credit losses of $4,975,000 during the nine months ended September 30, 2020 is primarily due to an increase in qualitative factors related to the economic uncertainties caused by the COVID-19 pandemic. 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 1.32% and 0.97% as of September 30, 2020 and December 31, 2019, 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. The recorded value of acquired loans totaled $137,177,000 at September 30, 2020 and $152,735,000 at December 31, 2019. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 1.51% and 1.15% as of September 30, 2020 and December 31, 2019, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 1.84% and 1.16%, respectively. As of September 30, 2020, gross loans included $210,057,000 related to PPP loans which are fully guaranteed by the SBA. Excluding PPP loans and the acquired loans from the calculation, the allowance for credit losses to total gross loans was 1.92% and 1.15% as of September 30, 2020 and December 31, 2019, 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, 2020.

The Company’s net interest margin (fully tax equivalent basis) was 3.93% for the nine months ended September 30, 2020, compared to 4.54% for the nine months ended September 30, 2019. The decrease in net interest margin in the period-to-period comparison resulted from the decrease in the effective yield on interest earning deposits in other banks and Federal Funds sold, the decrease in the effective yield on average investment securities, and the decrease in the yield on the Company’s loan portfolio. The decrease in the loan yield was impacted by Company’s issuance of low interest PPP loans.

For the nine months ended September 30, 2020, the effective yield on average total earning assets decreased 69 basis points to 4.04% compared to 4.73% for the nine months ended September 30, 2019, while the cost of average total interest-bearing liabilities decreased to 0.21% for the nine months ended September 30, 2020 as compared to 0.35% for the nine months ended September 30, 2019. Over the same periods, the cost of average total deposits decreased to 0.10% for the nine months ended September 30, 2020 compared to 0.15% for the same period in 2019.

For the nine months ended September 30, 2020, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $587,215,000, an increase of $94,449,000, or 19.17%, compared to the nine months ended September 30, 2019. The effective yield on average investment securities, including interest-earning deposits in other banks and Federal funds sold, decreased to 2.38% for the nine months ended September 30, 2020, compared to 3.13% for the nine months ended September 30, 2019. In the normal course of managing the investment portfolio, management sold certain investment securities primarily in the private label commercial mortgage backed security sector during the nine months ended September 30, 2020 and purchased securities in the municipal investment sector to take advantage of the price and yield attributes related to these sectors at the time, and recorded a net gain on sale of investments of $4,197,000.

Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased $110,574,000 to $1,042,010,000 for the nine months ended September 30, 2020 from $931,436,000 for the nine months ended September 30, 2019 . The effective yield on average loans decreased to 4.97% for the nine months ended September 30, 2020, compared to 5.58% for the nine months ended September 30, 2019. Total average PPP loans, which yield 1.00%, were $124,303,000 for the nine months ended September 30, 2020. Excluding PPP loans from total average loans, the effective yield on average loans for the nine months ended September 30, 2020 was 5.34%.

Total average assets for the nine months ended September 30, 2020 was $1,780,716,000 compared to $1,571,245,000 for the nine months ended September 30, 2019, an increase of $209,471,000 or 13.33%. During the nine months ended September 30, 2020 and 2019, the loan-to-deposit ratio was 66.02% and 71.96%, respectively. Total average deposits increased $229,058,000 or 17.77% to $1,518,250,000 for the nine months ended September 30, 2020, compared to $1,289,192,000 for the nine months ended September 30, 2019. Average interest-bearing deposits increased $61,138,000, or 8.26%, and average non-interest bearing demand deposits increased $167,920,000, or 30.57%, for the nine months ended September 30, 2020, compared to the nine months ended September 30, 2019. The Company’s ratio of average non-interest bearing deposits to total deposits was 47.24% for the nine months ended September 30, 2020, compared to 42.60% for the nine months ended September 30, 2019.

Non-interest income for the nine months ended September 30, 2020 decreased by $637,000 to $10,659,000, compared to $11,296,000 for the nine months ended September 30, 2019, primarily driven by a decrease of $999,000 in net realized gains on sales and calls of investment securities, a decrease in service charge income of $519,000, and a decrease in FHLB dividends of $95,000, partially offset by an increase in loan placement fees of $898,000, and an increase of $193,000 in other income. The increase in other income resulted from a $463,000 gain related to the collection of life insurance proceeds.

Non-interest expense for the nine months ended September 30, 2020 increased $333,000, or 0.95%, to $35,305,000 compared to $34,972,000 for the nine months ended September 30, 2019. The net increase year over year resulted from increases in salaries and employee benefits of $920,000, professional services of $684,000, data processing of $298,000, regulatory assessments of $123,000, and operating losses of $5,000, offset by decreases in occupancy and equipment expenses of $769,000, information technology of $192,000, amortization of software of $155,000, credit card expenses of $114,000, and directors’ expenses of $84,000, in 2020 compared to 2019. The increase in salaries and employee benefits was the result of an increase of $1,379,000 in salaries and benefits (of which $525,000 related to the payment of a nonrecurring employee incentive), as well as an increase of $253,000 for directors’ and officers’ expenses related to the change in the discount rate used to calculate the liability for salary continuation, deferred compensation, and split dollar plans; offset by higher loan origination costs relating to the PPP loans processed during the second quarter of 2020 of approximately $913,000.

The Company recorded an income tax provision of $4,757,000 for the nine months ended September 30, 2020, compared to $6,790,000 for the nine months ended September 30, 2019. The effective tax rate for the nine months ended September 30, 2020 was 26.39% compared to 28.55% for the nine months ended September 30, 2019. The effective tax rate was affected by the large provision for credit losses, which resulted in lower pretax and taxable income, as well as the gain related to the collection of tax-exempt life insurance proceeds, offset by a decrease in tax-exempt interest.

Quarter Ended September 30, 2020

For the quarter ended September 30, 2020, the Company reported unaudited consolidated net income of $4,344,000 and earnings per diluted common share of $0.35, compared to consolidated net income of $5,691,000 and $0.42 per diluted share for the same period in 2019. The decrease in net income during the third quarter of 2020 compared to the same period in 2019 was primarily due to a decrease in non-interest income of $1,651,000, an increase in provision for credit losses of $350,000, an increase in total non-interest expenses of $194,000, and a decrease in net interest income of $162,000, partially offset by a decrease in the provision for income taxes of $1,010,000. The effective tax rate decreased to 24.92% from 30.11% for the quarters ended September 30, 2020 and September 30, 2019, respectively. Net income for the immediately trailing quarter ended June 30, 2020 was $2,301,000, or $0.18 per diluted common share.

Annualized return on average equity (ROE) for the third quarter of 2020 was 7.50%, compared to 9.77% for the same period of 2019. The decrease in ROE reflects a decrease in net income, coupled with an increase in shareholders’ equity. Annualized return on average assets (ROA) was 0.90% for the third quarter of 2020 compared to 1.43% for the same period in 2019. This decrease is due to a decrease in net income and an increase in average assets.

In comparing the third quarter of 2020 to the third quarter of 2019, average total loans increased by $174,643,000, or 18.41%. During the third quarter of 2020, the Company recorded net loan recoveries of $120,000 compared to $160,000 net loan charge-offs for the same period in 2019. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.04)% for the quarter ended September 30, 2020 compared to 0.07% for the quarter ended September 30, 2019. The following table shows the Company’s outstanding loan portfolio as of September 30, 2020 and December 31, 2019.

Loan Type (dollars in thousands)

 

September 30,
2020

 

% of Total
Loans

 

December 31,
2019

 

% of Total
Loans

Commercial:

 

 

 

 

 

 

 

 

Commercial and industrial

 

$

296,338

 

 

 

26.7

%

 

$

102,541

 

 

 

10.9

%

Agricultural production

 

22,902

 

 

 

2.1

%

 

23,159

 

 

 

2.6

%

Total commercial

 

319,240

 

 

 

28.8

%

 

125,700

 

 

 

13.5

%

Real estate:

 

 

 

 

 

 

 

 

Owner occupied

 

195,189

 

 

 

17.6

%

 

197,946

 

 

 

21.0

%

Real estate construction and other land loans

 

72,612

 

 

 

6.5

%

 

73,718

 

 

 

7.8

%

Commercial real estate

 

318,766

 

 

 

28.7

%

 

329,333

 

 

 

34.9

%

Agricultural real estate

 

75,747

 

 

 

6.7

%

 

76,304

 

 

 

8.1

%

Other real estate

 

34,883

 

 

 

3.1

%

 

31,241

 

 

 

3.3

%

Total real estate

 

697,197

 

 

 

62.6

%

 

708,542

 

 

 

75.1

%

Consumer:

 

 

 

 

 

 

 

 

Equity loans and lines of credit

 

58,614

 

 

 

5.3

%

 

64,841

 

 

 

6.9

%

Consumer and installment

 

38,627

 

 

 

3.3

%

 

42,782

 

 

 

4.5

%

Total consumer

 

97,241

 

 

 

8.6

%

 

107,623

 

 

 

11.4

%

Net deferred origination costs

 

(3,789

)

 

 

 

 

1,515

 

 

 

 

Total gross loans

 

1,109,889

 

 

 

100.0

%

 

943,380

 

 

 

100.0

%

Allowance for credit losses

 

(14,657

)

 

 

 

 

(9,130

)

 

 

 

Total loans

 

$

1,095,232

 

 

 

 

 

$

934,250

 

 

 

 

Average total deposits for the third quarter of 2020 increased $358,822,000 or 27.53% to $1,662,085,000 compared to $1,303,263,000 for the same period of 2019. In comparing the third quarter of 2020 to the third quarter of 2019, average borrowed funds decreased $17,413,000 or 77.16% to $5,155,000 compared to $22,568,000. The composition of the deposits at September 30, 2020 and December 31, 2019 is summarized in the table below.

(Dollars in thousands)

 

September 30,
2020

 

% of
Total
Deposits

 

 

December 31,
2019

 

% of
Total
Deposits

 

NOW accounts

 

$

318,061

 

 

18.9

%

 

 

$

266,048

 

 

20.0

%

 

MMA accounts

 

314,543

 

 

18.7

%

 

 

266,609

 

 

20.0

%

 

Time deposits

 

88,037

 

 

5.2

%

 

 

93,730

 

 

7.0

%

 

Savings deposits

 

155,680

 

 

9.3

%

 

 

112,271

 

 

8.4

%

 

Total interest-bearing

 

876,321

 

 

52.1

%

 

 

738,658

 

 

55.4

%

 

Non-interest bearing

 

804,893

 

 

47.9

%

 

 

594,627

 

 

44.6

%

 

Total deposits

 

$

1,681,214

 

 

100.0

%

 

 

$

1,333,285

 

 

100.0

%

 

The Company’s net interest margin (fully tax equivalent basis) was 3.63% for the quarter ended September 30, 2020, compared to 4.50% for the quarter ended September 30, 2019. Net interest income, before provision for credit losses, decreased $162,000, or 1.00%, to $16,043,000 for the third quarter of 2020, compared to $16,205,000 for the same period in 2019. The accretion of the loan marks on acquired loans increased interest income by $172,000 and $299,000 during the quarters ended September 30, 2020 and 2019, respectively. Net interest income during the third quarters of 2020 and 2019 benefited by approximately $52,000 and $250,000, respectively, from prepayment penalties and payoff of loans. The net interest margin period-to-period comparisons were impacted by the decrease in the yield on total interest-bearing liabilities, as well as the decrease in the yield on the average investment securities, the decrease in the yield on the loan portfolio, and the decrease in the effective yield on interest earning deposits in other banks and Federal Funds sold. Over the same periods, the cost of total deposits decreased to 0.09% from 0.17%.

For the quarter ended September 30, 2020, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased by $163,709,000, or 33.67%, compared to the quarter ended September 30, 2019, and increased by $60,634,000, or 10.29%, compared to the quarter ended June 30, 2020.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.07% for the quarter ended September 30, 2020, compared to 3.07% for the quarter ended September 30, 2019 and 2.37% for the quarter ended June 30, 2020. Total average loans, which generally yield higher rates than investment securities, increased by $174,643,000 to $1,123,316,000 for the quarter ended September 30, 2020, from $948,673,000 for the quarter ended September 30, 2019 and increased by $46,108,000 from $1,077,208,000 for the quarter ended June 30, 2020. The effective yield on average loans was 4.68% for the quarter ended September 30, 2020, compared to 5.55% and 4.71% for the quarters ended September 30, 2019 and June 30, 2020, respectively. Excluding PPP loans from the calculation, the effective yield on average loans was 5.18% for the quarter ended September 30, 2020, compared to 5.55% and 5.22% for the quarters ended September 30, 2019 and June 30, 2020, respectively.

Total average assets for the quarter ended September 30, 2020 were $1,928,594,000 compared to $1,588,367,000 for the quarter ended September 30, 2019 and $1,813,865,000 for the quarter ended June 30, 2020, an increase of $340,227,000 or 21.42% and an increase of $114,729,000 or 6.33%, respectively.

Total average deposits increased $358,822,000, or 27.53%, to $1,662,085,000 for the quarter ended September 30, 2020, compared to $1,303,263,000 for the quarter ended September 30, 2019. Total average deposits increased $105,402,000, or 6.77%, for the quarter ended September 30, 2020, compared to $1,556,683,000 for the quarter ended June 30, 2020. The Company’s deposit balances for the nine months ended September 30, 2020 increased through organic growth and PPP loan proceeds retained in customer deposit accounts. The Company’s ratio of average non-interest bearing deposits to total deposits was 48.56% for the quarter ended September 30, 2020, compared to 43.24% and 48.39% for the quarters ended September 30, 2019 and June 30, 2020, respectively.

Non-interest income decreased $1,651,000, or 44.36%, to $2,071,000 for the third quarter of 2020 compared to $3,722,000 for the same period in 2019. For the quarter ended September 30, 2020, non-interest income included $57,000 net realized gains on sales and calls of investment securities compared to net realized gains of $1,685,000 for the same period in 2019, a $1,628,000 decrease. During the third quarter of 2020 loan placement fees increased $397,000, offset by a decrease in service charge income of $209,000, a decrease of $148,000 in other income, and a decrease in interchange fees of $19,000, compared to the same period in 2019. Non-interest income for the quarter ended September 30, 2020 increased by $26,000 to $2,071,000, compared to $2,045,000 for the quarter ended June 30, 2020. The increase compared to the trailing quarter was primarily a result of $124,000 increase in loan placement fees, a $115,000 increase in net realized gains on sales and calls of investment securities, a $48,000 increase in interchange fees, and a $16,000 increase in service charges, offset by a $275,000 decrease in other income.

Non-interest expense for the quarter ended September 30, 2020 increased $194,000, or 1.68%, to $11,728,000 compared to $11,534,000 for the quarter ended September 30, 2019. The net increase quarter over quarter was a result of an increase in professional services of $311,000, an increase of $204,000 in data processing expense, and an increase of $216,000 in regulatory assessments, partially offset by a decrease in occupancy and equipment expenses of $121,000, a decrease of $44,000 in directors’ expenses, a decrease of $51,000 in mileage and travel, a decrease of $70,000 in amortization of software, a decrease of $48,000 in Internet banking expenses, and a decrease of $20,000 in information technology expenses. During the quarter ended September 30, 2020, nonrecurring expenses included $292,000 related to PPP loan forgiveness processing, and $46,000 related to additional accruals for salary continuation plans due to decreases in interest rates.

Non-interest expense for the quarter ended September 30, 2020 increased by $230,000 or 2.00% to $11,728,000 compared to $11,498,000 for the trailing quarter ended June 30, 2020. The increase compared to the trailing quarter was primarily due to an increase in data processing of $40,000, an increase in professional services of $193,000, and a $83,000 increase in other non-interest expenses, partially offset by a decrease in salaries and employee benefits of $83,000, and a decrease in ATM/debit card expense of $43,000.

The Company recorded an income tax provision of $1,442,000 for the quarter ended September 30, 2020, compared to $2,452,000 for the quarter ended September 30, 2019, and $820,000 for the trailing quarter ended June 30, 2020. The effective tax rate for the quarter ended September 30, 2020 was 24.92% compared to 30.11% for the same period in 2019. The effective tax rate was affected by the provision for credit losses and lower net realized gains on sales and calls of investment securities, which resulted in lower pretax and taxable income.

Capital Management

On October 28, 2020, the Board of Directors of the Company declared a quarterly cash dividend of $0.11 per share on the Company’s common stock. The dividend is payable on November 27, 2020 to shareholders of record as of November 13, 2020. 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, headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank operates 20 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 Raymond James Financial, Inc.

Members of Central Valley Community Bancorp’s and the Bank’s Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), F. T. “Tommy” Elliott, IV, James M. Ford, Robert J. Flautt, Gary D. Gall, Steven D. McDonald, Louis C. McMurray, Karen Musson, Dorothea D. Silva, 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.

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; (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 rapidly changing uncertainties related to the Covid-19 pandemic including, but not limited to, the potential adverse effect of the pandemic on the economy, our employees and customers, and our financial performance; (15) the impact of the federal CARES Act and the significant additional lending activities undertaken by the Company in connection with the Small Business Administration’s Paycheck Protection Program enacted thereunder, including risks to the Company with respect to the uncertain application by the Small Business Administration of new borrower and loan eligibility, forgiveness and audit criteria; and (16) 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, 2019. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.

CENTRAL VALLEY COMMUNITY BANCORP

CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

 

September 30,

 

December 31,

 

September 30,

(In thousands, except share amounts)

 

2020

 

2019

 

2019

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

33,447

 

 

$

24,195

 

 

$

38,344

 

Interest-earning deposits in other banks

 

53,563

 

 

28,379

 

 

4,693

 

Total cash and cash equivalents

 

87,010

 

 

52,574

 

 

43,037

 

Available-for-sale investment securities

 

631,854

 

 

470,746

 

 

469,927

 

Equity securities

 

7,655

 

 

7,472

 

 

7,507

 

Loans, less allowance for credit losses of $14,657, $9,130, and $9,495 at September 30,
2020, December 31, 2019, and September 30, 2019, respectively

 

1,095,232

 

 

934,250

 

 

933,008

 

Bank premises and equipment, net

 

7,257

 

 

7,618

 

 

7,804

 

Bank owned life insurance

 

29,769

 

 

30,230

 

 

30,047

 

Federal Home Loan Bank stock

 

5,595

 

 

6,062

 

 

6,062

 

Goodwill

 

53,777

 

 

53,777

 

 

53,777

 

Core deposit intangibles

 

1,356

 

 

1,878

 

 

2,051

 

Accrued interest receivable and other assets

 

31,055

 

 

32,148

 

 

30,907

 

Total assets

 

$

1,950,560

 

 

$

1,596,755

 

 

$

1,584,127

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Non-interest bearing

 

$

804,893

 

 

$

594,627

 

 

$

572,736

 

Interest bearing

 

876,321

 

 

738,658

 

 

737,010

 

Total deposits

 

1,681,214

 

 

1,333,285

 

 

1,309,746

 

Short-term borrowings

 

 

 

 

 

5,000

 

Junior subordinated deferrable interest debentures

 

5,155

 

 

5,155

 

 

5,155

 

Accrued interest payable and other liabilities

 

28,411

 

 

30,187

 

 

31,044

 

Total liabilities

 

1,714,780

 

 

1,368,627

 

 

1,350,945

 

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:
12,507,658, 13,052,407, and 13,301,395, at September 30, 2020, December 31, 2019,
and September 30, 2019, respectively

 

79,269

 

 

89,379

 

 

94,516

 

Retained earnings

 

145,045

 

 

135,932

 

 

132,935

 

Accumulated other comprehensive income, net of tax

 

11,466

 

 

2,817

 

 

5,731

 

Total shareholders’ equity

 

235,780

 

 

228,128

 

 

233,182

 

Total liabilities and shareholders’ equity

 

$

1,950,560

 

 

$

1,596,755

 

 

$

1,584,127

 

CENTRAL VALLEY COMMUNITY BANCORP

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)

 

2020

 

2020

 

 

2019

 

 

2020

 

2019

INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

Interest and fees on loans

 

$

13,190

 

 

$

12,600

 

 

 

$

13,238

 

 

 

$

38,688

 

 

$

38,747

 

Interest on deposits in other banks

 

26

 

 

13

 

 

 

74

 

 

 

222

 

 

283

 

Interest and dividends on investment securities:

 

 

 

 

 

 

 

 

 

 

Taxable

 

2,771

 

 

2,959

 

 

 

3,462

 

 

 

8,996

 

 

9,821

 

Exempt from Federal income taxes

 

444

 

 

412

 

 

 

153

 

 

 

1,015

 

 

1,144

 

Total interest income

 

16,431

 

 

15,984

 

 

 

16,927

 

 

 

48,921

 

 

49,995

 

INTEREST EXPENSE:

 

 

 

 

 

 

 

 

 

 

Interest on deposits

 

363

 

 

374

 

 

 

566

 

 

 

1,169

 

 

1,428

 

Interest on junior subordinated deferrable interest debentures

 

25

 

 

36

 

 

 

51

 

 

 

106

 

 

163

 

Other

 

 

 

 

 

 

105

 

 

 

 

 

419

 

Total interest expense

 

388

 

 

410

 

 

 

722

 

 

 

1,275

 

 

2,010

 

Net interest income before provision for credit losses

 

16,043

 

 

15,574

 

 

 

16,205

 

 

 

47,646

 

 

47,985

 

PROVISION FOR CREDIT LOSSES

 

600

 

 

3,000

 

 

 

250

 

 

 

4,975

 

 

525

 

Net interest income after provision for credit losses

 

15,443

 

 

12,574

 

 

 

15,955

 

 

 

42,671

 

 

47,460

 

NON-INTEREST INCOME:

 

 

 

 

 

 

 

 

 

 

Service charges

 

463

 

 

447

 

 

 

672

 

 

 

1,556

 

 

2,075

 

Appreciation in cash surrender value of bank owned life insurance

 

178

 

 

176

 

 

 

184

 

 

 

536

 

 

545

 

Interchange fees

 

355

 

 

307

 

 

 

374

 

 

 

995

 

 

1,101

 

Loan placement fees

 

685

 

 

561

 

 

 

288

 

 

 

1,545

 

 

647

 

Net realized gains (losses) on sales and calls of investment securities

 

57

 

 

(58

)

 

 

1,685

 

 

 

4,197

 

 

5,196

 

Federal Home Loan Bank dividends

 

71

 

 

75

 

 

 

109

 

 

 

253

 

 

348

 

Other income

 

262

 

 

537

 

 

 

410

 

 

 

1,577

 

 

1,384

 

Total non-interest income

 

2,071

 

 

2,045

 

 

 

3,722

 

 

 

10,659

 

 

11,296

 

NON-INTEREST EXPENSES:

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

6,729

 

 

6,812

 

 

 

6,731

 

 

 

21,053

 

 

20,133

 

Occupancy and equipment

 

1,196

 

 

1,139

 

 

 

1,317

 

 

 

3,479

 

 

4,248

 

Professional services

 

715

 

 

522

 

 

 

404

 

 

 

1,695

 

 

1,011

 

Data processing expense

 

594

 

 

554

 

 

 

390

 

 

 

1,484

 

 

1,186

 

Directors’ expenses

 

140

 

 

136

 

 

 

184

 

 

 

468

 

 

552

 

ATM/Debit card expenses

 

144

 

 

187

 

 

 

270

 

 

 

625

 

 

647

 

Information technology

 

594

 

 

602

 

 

 

614

 

 

 

1,804

 

 

1,996

 

Regulatory assessments

 

147

 

 

146

 

 

 

(69

)

 

 

340

 

 

217

 

Advertising

 

167

 

 

167

 

 

 

190

 

 

 

507

 

 

590

 

Internet banking expenses

 

167

 

 

182

 

 

 

215

 

 

 

545

 

 

608

 

Amortization of core deposit intangibles

 

174

 

 

173

 

 

 

174

 

 

 

521

 

 

521

 

Other expense

 

961

 

 

878

 

 

 

1,114

 

 

 

2,784

 

 

3,263

 

Total non-interest expenses

 

11,728

 

 

11,498

 

 

 

11,534

 

 

 

35,305

 

 

34,972

 

Income before provision for income taxes

 

5,786

 

 

3,121

 

 

 

8,143

 

 

 

18,025

 

 

23,784

 

PROVISION FOR INCOME TAXES

 

1,442

 

 

820

 

 

 

2,452

 

 

 

4,757

 

 

6,790

 

Net income

 

$

4,344

 

 

$

2,301

 

 

 

$

5,691

 

 

 

$

13,268

 

 

$

16,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

 

 

 

Basic earnings per common share

 

$

0.35

 

 

$

0.18

 

 

 

$

0.43

 

 

 

$

1.06

 

 

$

1.26

 

Weighted average common shares used in basic computation

 

12,471,070

 

 

12,449,283

 

 

 

13,360,030

 

 

 

12,551,480

 

 

13,515,109

 

Diluted earnings per common share

 

$

0.35

 

 

$

0.18

 

 

 

$

0.42

 

 

 

$

1.05

 

 

$

1.25

 

Weighted average common shares used in diluted computation

 

12,496,174

 

 

12,486,681

 

 

 

13,450,187

 

 

 

12,596,172

 

 

13,615,552

 

Cash dividends per common share

 

$

0.11

 

 

$

0.11

 

 

 

$

0.11

 

 

 

$

0.33

 

 

$

0.32

 

CENTRAL VALLEY COMMUNITY BANCORP

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Unaudited)

 

 

 

Sept. 30

 

Jun. 30

 

Mar. 31

 

Dec. 31

 

Sept. 30

For the three months ended

 

2020

 

2020

 

2020

 

2019

 

2019

(In thousands, except share and per share amounts)

 

 

 

 

 

 

 

 

 

 

Net interest income

 

$

16,043

 

 

$

15,574

 

 

$

16,029

 

 

$

15,787

 

 

$

16,205

 

Provision for credit losses

 

600

 

 

3,000

 

 

1,375

 

 

500

 

 

250

 

Net interest income after provision for credit losses

 

15,443

 

 

12,574

 

 

14,654

 

 

15,287

 

 

15,955

 

Total non-interest income

 

2,071

 

 

2,045

 

 

6,541

 

 

2,009

 

 

3,722

 

Total non-interest expense

 

11,728

 

 

11,498

 

 

12,078

 

 

11,130

 

 

11,534

 

Provision for income taxes

 

1,442

 

 

820

 

 

2,494

 

 

1,718

 

 

2,452

 

Net income

 

$

4,344

 

 

$

2,301

 

 

$

6,623

 

 

$

4,448

 

 

$

5,691

 

Basic earnings per common share

 

$

0.35

 

 

$

0.18

 

 

$

0.52

 

 

$

0.34

 

 

$

0.43

 

Weighted average common shares used in basic computation

 

12,471,070

 

 

12,449,283

 

 

12,734,971

 

 

13,118,403

 

 

13,360,030

 

Diluted earnings per common share

 

$

0.35

 

 

$

0.18

 

 

$

0.52

 

 

$

0.34

 

 

$

0.42

 

Weighted average common shares used in diluted computation

 

12,496,174

 

 

12,486,681

 

 

12,779,096

 

 

13,210,558

 

 

13,450,187

 

CENTRAL VALLEY COMMUNITY BANCORP

SELECTED RATIOS

(Unaudited)

 

 

 

Sept. 30,

 

Jun. 30,

 

Mar. 31,

 

Dec. 31,

 

Sept. 30,

As of and for the three months ended

 

2020

 

2020

 

 

2020

 

 

2019

 

2019

(Dollars in thousands, except per share amounts)

 

 

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans

 

1.32

 

%

 

1.24

 

%

 

1.13

 

%

 

0.97

%

 

1.01

%

Non-performing assets to total assets

 

0.18

 

%

 

0.13

 

%

 

0.07

 

%

 

0.11

%

 

0.14

%

Total non-performing assets

 

$

3,458

 

 

 

$

2,406

 

 

 

$

1,115

 

 

 

$

1,693

 

 

$

2,157

 

Total nonaccrual loans

 

$

3,458

 

 

 

$

2,406

 

 

 

$

1,115

 

 

 

$

1,693

 

 

$

2,157

 

Total substandard loans

 

$

37,643

 

 

 

$

38,672

 

 

 

$

34,420

 

 

 

$

33,838

 

 

$

19,168

 

Total special mention loans

 

$

43,893

 

 

 

$

35,735

 

 

 

$

11,936

 

 

 

$

28,183

 

 

$

52,811

 

Net loan charge-offs (recoveries)

 

$

(120

)

 

 

$

(391

)

 

 

$

(41

)

 

 

$

865

 

 

$

160

 

Net charge-offs (recoveries) to average loans (annualized)

 

(0.04

)

%

 

(0.15

)

%

 

(0.02

)

%

 

0.37

%

 

0.07

%

Book value per share

 

$

18.85

 

 

 

$

18.29

 

 

 

$

17.53

 

 

 

$

17.48

 

 

$

17.53

 

Tangible book value per share

 

$

14.44

 

 

 

$

13.87

 

 

 

$

13.08

 

 

 

$

13.21

 

 

$

13.33

 

Tangible common equity

 

$

180,647

 

 

 

$

173,251

 

 

 

$

163,192

 

 

 

$

172,473

 

 

$

177,354

 

Cost of total deposits

 

0.09

 

%

 

0.10

 

%

 

0.13

 

%

 

0.15

%

 

0.17

%

Interest and dividends on investment securities exempt from Federal income taxes

 

$

444

 

 

 

$

412

 

 

 

$

159

 

 

 

$

151

 

 

$

153

 

Net interest margin (calculated on a fully tax equivalent basis) (1)

 

3.63

 

%

 

3.79

 

%

 

4.47

 

%

 

4.40

%

 

4.50

%

Return on average assets (2)

 

0.90

 

%

 

0.51

 

%

 

1.66

 

%

 

1.12

%

 

1.43

%

Return on average equity (2)

 

7.50

 

%

 

4.14

 

%

 

11.62

 

%

 

7.71

%

 

9.77

%

Loan to deposit ratio

 

66.02

 

%

 

68.25

 

%

 

68.84

 

%

 

70.76

%

 

71.96

%

Efficiency ratio

 

63.58

 

%

 

64.27

 

%

 

65.71

 

%

 

61.42

%

 

62.07

%

Tier 1 leverage - Bancorp

 

9.26

 

%

 

9.63

 

%

 

10.93

 

%

 

11.38

%

 

11.47

%

Tier 1 leverage - Bank

 

9.20

 

%

 

9.57

 

%

 

10.86

 

%

 

11.27

%

 

11.36

%

Common equity tier 1 - Bancorp

 

14.23

 

%

 

13.66

 

%

 

13.97

 

%

 

14.55

%

 

14.84

%

Common equity tier 1 - Bank

 

14.56

 

%

 

13.99

 

%

 

14.31

 

%

 

14.85

%

 

15.13

%

Tier 1 risk-based capital - Bancorp

 

14.65

 

%

 

14.08

 

%

 

14.40

 

%

 

14.98

%

 

15.28

%

Tier 1 risk-based capital - Bank

 

14.56

 

%

 

13.99

 

%

 

14.31

 

%

 

14.85

%

 

15.13

%

Total risk-based capital - Bancorp

 

15.90

 

%

 

15.25

 

%

 

15.32

 

%

 

15.79

%

 

16.13

%

Total risk based capital - Bank

 

15.81

 

%

 

15.16

 

%

 

15.23

 

%

 

15.66

%

 

15.98

%

(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

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)

 

2020

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Interest-bearing deposits in other banks

 

$

98,869

 

 

 

$

58,277

 

 

 

$

14,025

 

 

 

70,418

 

 

 

16,633

 

 

Investments

 

551,092

 

 

 

531,050

 

 

 

472,227

 

 

 

516,797

 

 

 

476,133

 

 

Loans (1)

 

1,120,656

 

 

 

1,075,588

 

 

 

946,136

 

 

 

1,040,116

 

 

 

928,874

 

 

Earning assets

 

1,770,617

 

 

 

1,664,915

 

 

 

1,432,388

 

 

 

1,627,331

 

 

 

1,421,640

 

 

Allowance for credit losses

 

(14,261

)

 

 

(10,783

)

 

 

(9,423

)

 

 

(11,439

)

 

 

(9,261

)

 

Nonaccrual loans

 

2,660

 

 

 

1,620

 

 

 

2,537

 

 

 

1,894

 

 

 

2,562

 

 

Other non-earning assets

 

169,578

 

 

 

158,113

 

 

 

162,865

 

 

 

162,930

 

 

 

156,304

 

 

Total assets

 

$

1,928,594

 

 

 

$

1,813,865

 

 

 

$

1,588,367

 

 

 

$

1,780,716

 

 

 

$

1,571,245

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest bearing deposits

 

$

855,033

 

 

 

$

803,418

 

 

 

$

739,765

 

 

 

$

801,088

 

 

 

$

739,950

 

 

Other borrowings

 

5,155

 

 

 

5,155

 

 

 

22,568

 

 

 

5,155

 

 

 

27,490

 

 

Total interest-bearing liabilities

 

860,188

 

 

 

808,573

 

 

 

762,333

 

 

 

806,243

 

 

 

767,440

 

 

Non-interest bearing demand deposits

 

807,052

 

 

 

753,265

 

 

 

563,498

 

 

 

717,162

 

 

 

549,242

 

 

Non-interest bearing liabilities

 

29,698

 

 

 

29,548

 

 

 

29,459

 

 

 

29,917

 

 

 

27,012

 

 

Total liabilities

 

1,696,938

 

 

 

1,591,386

 

 

 

1,355,290

 

 

 

1,553,322

 

 

 

1,343,694

 

 

Total equity

 

231,656

 

 

 

222,479

 

 

 

233,077

 

 

 

227,394

 

 

 

227,551

 

 

Total liabilities and equity

 

$

1,928,594

 

 

 

$

1,813,865

 

 

 

$

1,588,367

 

 

 

$

1,780,716

 

 

 

$

1,571,245

 

 

 

 

 

 

 

 

 

 

 

 

 

AVERAGE RATES

 

 

 

 

 

 

 

 

 

 

Interest-earning deposits in other banks

 

0.11

 

%

 

0.09

 

%

 

2.11

 

%

 

0.42

 

%

 

2.28

 

%

Investments

 

2.42

 

%

 

2.62

 

%

 

3.10

 

%

 

2.65

 

%

 

3.16

 

%

Loans (3)

 

4.68

 

%

 

4.71

 

%

 

5.55

 

%

 

4.97

 

%

 

5.58

 

%

Earning assets

 

3.72

 

%

 

3.89

 

%

 

4.70

 

%

 

4.04

 

%

 

4.73

 

%

Interest-bearing deposits

 

0.17

 

%

 

0.19

 

%

 

0.30

 

%

 

0.19

 

%

 

0.26

 

%

Other borrowings

 

1.94

 

%

 

2.79

 

%

 

2.76

 

%

 

2.74

 

%

 

2.82

 

%

Total interest-bearing liabilities

 

0.18

 

%

 

0.20

 

%

 

0.38

 

%

 

0.21

 

%

 

0.35

 

%

Net interest margin (calculated on a fully tax equivalent basis) (2)

 

3.63

 

%

 

3.79

 

%

 

4.50

 

%

 

3.93

 

%

 

4.54

 

%

(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 $118, $109, and $41, for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019, respectively. The Federal tax benefits relating to income earned on municipal bonds totaled $269 and $305 for the nine months ended September 30, 2020 and 2019, respectively.

(3)

Loan yield includes loan fees (costs) for the three months ended September 30, 2020, June 30, 2020, and September 30, 2019 of $658, $291, and $72, respectively. Loan yield includes loan fees (costs) for the nine months ended September 30, 2020 and 2019 of $884 and $56, respectively.

 

Contacts

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

Release Summary

CVCY reports earnings results for the nine months and quarter ended September 30, 2020, and quarterly dividend

$Cashtags

Contacts

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