Central Valley Community Bancorp (CVCY)

[Enterprising Investor]

Central Valley Community Bancorp Reports Earnings Results for the Quarter Ended March 31, 2013 (4/17/13)

FRESNO, CA--(Marketwired - Apr 17, 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 $1,793,000, and diluted earnings per common share of $0.18 for the three months ended March 31, 2013, compared to $1,713,000 and $0.17 per diluted common share for the three months ended March 31, 2012. Net income increased 4.67%, primarily driven by increases in non-interest income and lower provision for credit losses, partially offset by a slight increase in non-interest expense and a decrease in net interest income in 2013 compared to 2012. Non-performing assets increased $1,320,000 or 13.62% to $11,015,000 at March 31, 2013, compared to $9,695,000 at December 31, 2012. The Company had no OREO as of March 31, 2013 or December 31, 2012. During the first quarter of 2013, the Company's shareholders' equity decreased $440,000, or 0.37%. The reduction in shareholders' equity was driven by a decrease in other comprehensive income, partially offset by a net increase in retained earnings. The Company also declared and paid $478,000 in cash dividends to holders of common stock during the first quarter of 2013 ($0.05 per share).

During the first quarter of 2013, the Company's total assets decreased 0.43%, total liabilities decreased 0.44%, and shareholders' equity decreased 0.37% compared to December 31, 2012. Return on average equity (ROE) for the three months ended March 31, 2013 was 6.11%, compared to 6.19% for the three months ended March 31, 2012. ROE decreased, notwithstanding an increase in net income, due to an increase in capital resulting from an increase in retained earnings, offset by a decrease in other comprehensive income. Return on average assets (ROA) was 0.82% for both quarters ended March 31, 2013 and 2012.

During the three months ended March 31, 2013, the Company did not record a provision for credit losses, compared to $400,000 for the three months ended March 31, 2012. During the three months ended March 31, 2013, the Company recorded $644,000 in net loan charge-offs, compared to $1,511,000 for the three months ended March 31, 2012. The net charge-off ratio, which reflects net charge-offs to average loans, was 0.66% for the three months ended March 31, 2013, compared to 1.46% for the same period in 2012. The loans charged off in first quarter 2013 were previously identified and adequately reserved for as of December 31, 2012.

At March 31, 2013, the allowance for credit losses stood at $9,489,000, compared to $10,133,000 at December 31, 2012, a net decrease of $644,000. The allowance for credit losses as a percentage of total loans was 2.43% at March 31, 2013, and 2.56% at December 31, 2012. The Company believes the allowance for credit losses is adequate to provide for probable incurred losses inherent within the loan portfolio at March 31, 2013.

Total non-performing assets were $11,015,000, or 1.24% of total assets as of March 31, 2013 compared to $9,695,000 or 1.09% of total assets as of December 31, 2012. Total non-performing assets as of March 31, 2012 were $12,395,000 or 1.48% of total assets.

http://online.wsj.com/article/PR-CO-20130417-912534.html?mod=googlenews_wsj&cb=logged0.18585218745622534