Central Valley Community Bancorp (CVCY)

[Enterprising Investor]

CVCY Reports Earnings Results for the Year Ended December 31, 2012 (1/31/13)

FRESNO, CA--(Marketwire - Jan 31, 2013) - 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 $7,520,000, and diluted earnings per common share of $0.75 for the year ended December 31, 2012, compared to $6,477,000 and $0.63 per diluted common share for the year ended December 31, 2011. Net income increased 16.10%, primarily driven by increases in non-interest income, a decrease in non-interest expense and lower provision for credit losses, partially offset by a decrease in net interest income in 2012 compared to 2011. Non-performing assets decreased $4,739,000 or 32.83% to $9,695,000 at December 31, 2012, compared to $14,434,000 at December 31, 2011. The Company had no OREO as of December 31, 2012 or December 31, 2011. During 2012, the Company's shareholders' equity increased $10,183,000, or 9.47%. The growth in shareholders' equity was driven by net income during the period, an increase in other comprehensive income, and the issuance of common stock from the exercise of stock options. Unaudited consolidated net income for the year was the highest in the Company's 32 years of operation.

During the year ended 2012, the Company's total assets increased 4.85%, total liabilities increased 4.18%, and shareholders' equity increased 9.47% compared to December 31, 2011. Return on average equity (ROE) for the year ended December 31, 2012 was 6.56%, compared to 6.26% for the year ended December 31, 2011. The increase in ROE reflects an increase in net income, notwithstanding an increase in capital from an increase in other comprehensive income and an increase in retained earnings. Return on average assets (ROA) was 0.88% and 0.81% for the years ended December 31, 2012 and 2011, respectively. The increase in ROA is due to an increase in net income, notwithstanding an increase in average assets.

During the year ended December 31, 2012, the Company recorded a provision for credit losses of $700,000, compared to $1,050,000 for the year ended December 31, 2011. During the year ended December 31, 2012, the Company recorded $1,963,000 in net loan charge-offs, compared to $668,000 for the year ended December 31, 2011. The net charge-off ratio, which reflects net charge-offs to average loans, was 0.48% for the year ended December 31, 2012, compared to 0.16% for the same period in 2011. The charged off loans were previously identified and adequately reserved for as of December 31, 2011. The Company also recorded OREO related expenses of $78,000 during 2012 compared to $15,000 for the year ended December 31, 2011.

At December 31, 2012, the allowance for credit losses stood at $10,133,000, compared to $11,396,000 at December 31, 2011, a net decrease of $1,263,000. The allowance for credit losses as a percentage of total loans was 2.56% at December 31, 2012, and 2.67% at December 31, 2011. The Company believes the allowance for credit losses is adequate to provide for probable incurred losses inherent within the loan portfolio at December 31, 2012.

Total non-performing assets were $9,695,000, or 1.09% of total assets as of December 31, 2012 compared to $14,434,000 or 1.70% of total assets as of December 31, 2011. Total non-performing assets as of September 30, 2012 were $10,190,000 or 1.15% of total assets.

http://www.marketwire.com/press-release/central-valley-community-bancorp-reports-earnings-results-year-ended-december-31-2012-nasdaq-cvcy-1752049.htm