EX-99.1 2 cvcy032022earningsreleasee.htm EX-99.1 EARNINGS RELEASE 03 31 2022 Document

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FOR IMMEDIATE RELEASE

CENTRAL VALLEY COMMUNITY BANCORP REPORTS EARNINGS RESULTS FOR THE QUARTER ENDED MARCH 31, 2022, AND QUARTERLY DIVIDEND

FRESNO, CALIFORNIA…April 20, 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 $6,086,000, and fully diluted earnings per common share of $0.51 for the three months ended March 31, 2022, compared to $7,479,000 and $0.60 per fully diluted common share for the three months ended March 31, 2021.
FIRST QUARTER FINANCIAL HIGHLIGHTS
•Net income for the first quarter of 2022 decreased to $6,086,000 or $0.51 per diluted common share, compared to $6,838,000 and $0.57, respectively, in the fourth quarter of 2021.
•Net loans decreased $27.3 million or 2.65%, and total assets decreased $27.1 million or 1.11% at March 31, 2022 compared to December 31, 2021. The net loan decrease consisted of a decrease of $15.0 million in SBA Paycheck Protection Program (PPP) loans, as well as a decrease of $12.3 million in non-PPP loans.
•Total deposits increased 1.86% to $2.16 billion at March 31, 2022 compared to December 31, 2021.
•Total cost of deposits remained at low levels at 0.05% and 0.06% for the quarters ended March 31, 2022 and 2021, respectively.
•Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 43.77% and 46.39% for the quarters ended March 31, 2022 and 2021, respectively.
•Non-performing assets were $292,000, net loan recoveries were $264,000, and loans delinquent more than 30 days were $16,000 for the quarter ended March 31, 2022.
•The Company did not record a reversal of or a provision for credit losses during the quarter ended March 31, 2022.
•Capital positions remain strong at March 31, 2022 with a 7.87% Tier 1 Leverage Ratio; a 12.06% Common Equity Tier 1 Ratio; a 12.38% Tier 1 Risk-Based Capital Ratio; and a 15.27% Total Risk-Based Capital Ratio.
•The Company declared a $0.12 per common share cash dividend, payable on May 20, 2022 to shareholders of record as of May 6, 2022.
•During the quarter ended March 31, 2022, the Company repurchased and retired a total of 195,873 shares of common stock at an average price paid per share of $22.87.
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“The Company’s financial results reflect the impact of the interest rate increases during the quarter. An increasing rate environment positively influences our overall financial performance,” said James J. Kim, President & CEO. “We thank our team for their continued success in the marketplace – both in relation to new relationships and a strong pipeline of prospects going forward. Additionally, our Company continues to attract great bankers as evidenced by our recently announced addition to our executive management team, Jeff Martin, Executive Vice President, Market Executive. We’re excited that he will be leading our Northern region and helping us attract additional great bankers and clients,” concluded Kim.
Net income for the three months ended March 31, 2022 decreased 18.63%, compared to the three months ended March 31, 2021, driven by no reversal of provision for credit losses, a decrease in loan placement fees, an increase in non-interest expense, partially offset by an increase in net interest income, an increase in interchange fees, an increase in net realized gains on sales and calls of investment securities, an increase in service charge income, and a decrease in the provision for income taxes. During the three months ended March 31, 2022, the Company recorded no provision for credit losses, compared to a $1,800,000 reversal of provision during the three months ended March 31, 2021. Net interest income before the reversal of provision for credit losses for the three months ended March 31, 2022 was $17,597,000, compared to $17,555,000 for the three months ended March 31, 2021, an increase of $42,000 or 0.24%. The impact to interest income from the accretion of the loan marks on acquired loans was $222,000 and $173,000 for the three months ended March 31, 2022 and 2021, respectively. In addition, net interest income before the reversal of provision for credit losses for the three months ended March 31, 2022 was impacted by approximately $286,000 in loan prepayment penalties, as compared to $430,000 for the three months ended March 31, 2021. Excluding the loan mark accretion and prepayment penalties, net interest income for the three months ended March 31, 2022 increased by $137,000 compared to the three months ended March 31, 2021.
During the three months ended March 31, 2022, the Company’s shareholders’ equity decreased $56,185,000, or 22.67%, compared to December 31, 2021. The decrease in shareholders’ equity was driven by the decrease in unrealized gains on available-for-sale (AFS) securities, and share repurchases, offset by the retention of earnings, net of dividends paid.
Return on average equity (ROE) for the three months ended March 31, 2022 was 10.51%, compared to 12.17% for the three months ended March 31, 2021. 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 $0.12 and $0.11 per share in cash dividends to holders of common stock during the years ended March 31, 2022 and 2021, respectively. Return on average assets (ROA) was 0.99% for the three months ended March 31, 2022 and 1.42% for the three months ended March 31, 2021. This decrease was due to the decrease in net income. During the three months ended March 31, 2022, the Company’s total assets decreased 1.11%, and total liabilities increased 1.32%, compared to December 31, 2021.
Non-performing assets decreased by $654,000, or 69.13%, to $292,000 at March 31, 2022, compared to $946,000 at December 31, 2021. During the three months ended March 31, 2022, the Company recorded
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$264,000 in net loan recoveries, compared to $941,000 for the three months ended March 31, 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.10)% for the three months ended March 31, 2022, compared to (0.35)% for the same period in 2021. Total non-performing assets were 0.01% and 0.04% of total assets as of March 31, 2022 and December 31, 2021, respectively.
The Company’s net interest margin (fully tax equivalent basis) was 3.19% for the three months ended March 31, 2022, compared to 3.76% for the three months ended March 31, 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, the decrease in the effective yield on average investment securities, and the increase on the cost of interest bearing liabilities, offset by the increase in the effective yield on interest earning deposits in other banks and Federal Funds sold.
For the three months ended March 31, 2022, the effective yield on average total earning assets decreased 53 basis points to 3.29% compared to 3.82% for the three months ended March 31, 2021, while the cost of average total interest-bearing liabilities increased to 0.19% for the three months ended March 31, 2022 as compared to 0.12% for the three months ended March 31, 2021. Over the same periods, the cost of average total deposits decreased to 0.05% for the three months ended March 31, 2022 compared to 0.06% for the same period in 2021.
For the three months ended March 31, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $1,267,880,000, an increase of $411,248,000, or 48.01%, compared to the three months ended March 31, 2021. The effective yield on average investment securities, including interest-earning deposits in other banks and Federal funds sold, decreased to 2.02% for the three months ended March 31, 2022, compared to 2.07% for the three months ended March 31, 2021.
Total average loans (including nonaccrual), which generally yield higher rates than investment securities, decreased $63,163,000 to $1,017,689,000 for the three months ended March 31, 2022 from $1,080,852,000 for the three months ended March 31, 2021. The effective yield on average loans decreased to 4.85% for the three months ended March 31, 2022, compared to 5.18% for the three months ended March 31, 2021. Total average PPP loans, which have a 1.00% interest rate in addition to loan fees, were $11,329,000 for the three months ended March 31, 2022 as compared to $178,956,000 at March 31, 2021. Excluding PPP loans from total average loans, the effective yield on average loans for the three months ended March 31, 2022 and 2021 was 4.87% and 5.11%, respectively.
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The following table shows the Company’s outstanding loan portfolio as of March 31, 2022 and December 31, 2021.
Loan Type (dollars in thousands)March 31, 2022% of Total
Loans		December 31, 2021% of Total
Loans
Commercial:
Commercial and industrial$116,927 11.6 %$136,847 13.2 %
Agricultural production32,045 3.2 %40,860 3.9 %
Total commercial148,972 14.8 %177,707 17.1 %
Real estate:
Owner occupied204,272 20.2 %212,234 20.4 %
Real estate construction and other land loans73,358 7.2 %61,586 5.9 %
Commercial real estate375,017 37.2 %369,529 35.6 %
Agricultural real estate94,462 9.3 %98,481 9.5 %
Other real estate25,351 2.5 %26,084 2.5 %
Total real estate772,460 76.4 %767,914 73.9 %
Consumer:
Equity loans and lines of credit54,706 5.4 %55,620 5.4 %
Consumer and installment34,825 3.4 %36,999 3.6 %
Total consumer89,531 8.8 %92,619 9.0 %
Net deferred origination fees1,079 871 
Total gross loans1,012,042 100.0 %1,039,111 100.0 %
Allowance for credit losses(9,864)(9,600)
Total loans$1,002,178 $1,029,511 
The following table shows the Company’s loan portfolio allocated by management’s internal risk ratings:
Loan Risk Rating (In thousands)March 31, 2022December 31, 2021March 31, 2021
Pass$960,323 $988,855 $1,019,829 
Special mention39,901 40,845 39,406 
Substandard10,739 8,540 34,276 
Doubtful— — — 
Total$1,010,963 $1,038,240 $1,093,511 
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.
At March 31, 2022, the allowance for credit losses was $9,864,000, compared to $9,600,000 at December 31, 2021, a net increase of $264,000 reflecting the 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 0.97% and 0.92% as of March 31, 2022 and December 31, 2021, respectively. Total loans include loans acquired in the acquisitions of Folsom Lake Bank on October 1, 2017,
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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 $85,346,000 at March 31, 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 1.06% and 1.01% as of March 31, 2022 and December 31, 2021, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 1.01% and 0.98%, respectively. As of March 31, 2022, gross loans included $3,554,000 related to PPP loans, which are fully guaranteed by the SBA as compared to $18,553,000.00 at December 31, 2021. Excluding PPP loans and the acquired loans from the calculation, the allowance for credit losses to total gross loans was 1.07% and 1.04% as of March 31, 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 March 31, 2022.
Total average assets for the three months ended March 31, 2022 was $2,460,025,000 compared to $2,104,077,000 for the three months ended March 31, 2021, an increase of $355,948,000 or 16.92%. During the quarters ended March 31, 2022 and 2021, the loan-to-deposit ratio was 46.80% and 56.72%, respectively. Total average deposits increased $327,974,000 or 18.00% to $2,149,801,000 for the three months ended March 31, 2022, compared to $1,821,827,000 for the three months ended March 31, 2021. Average interest-bearing deposits increased $232,076,000, or 23.76%, and average non-interest bearing demand deposits increased $95,898,000, or 11.35%, for the three months ended March 31, 2022, compared to the three months ended March 31, 2021. The Company’s ratio of average non-interest bearing deposits to total deposits was 43.77% for the three months ended March 31, 2022, compared to 46.39% for the three months ended March 31, 2021.
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The composition of the deposits at March 31, 2022 and December 31, 2021 is summarized in the table below.
(Dollars in thousands)March 31, 2022% of
Total
Deposits		December 31, 2021% of
Total
Deposits
NOW accounts$382,907 17.7 %$360,462 17.0 %
MMA accounts558,308 25.8 %511,448 24.1 %
Time deposits84,702 3.9 %90,030 4.2 %
Savings deposits210,376 9.8 %197,273 9.3 %
Total interest-bearing1,236,293 57.2 %1,159,213 54.6 %
Non-interest bearing926,067 42.8 %963,584 45.4 %
Total deposits$2,162,360 100.0 %$2,122,797 100.0 %

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)March 31, 2022December 31, 2021$ Change% Change
Service charges$539 $515 $24 4.7 %
Appreciation in cash surrender value of bank owned life insurance242 244 (2)(0.8)%
Interchange fees442 471 (29)(6.2)%
Loan placement fees299 340 (41)(12.1)%
Net realized gains on sales and calls of investment securities206 463 (257)(55.5)%
Federal Home Loan Bank dividends85 84 1 1.2 %
Other Income21 664 (643)(96.8)%
Total non-interest income$1,834 $2,781 $(947)(34.1)%

Other income for the three months ended December 31, 2021 included $228,000 of income distributions related to various SBIC fund investments. In addition, the equity investment FMV loss adjustment was $345,000 higher during the quarter ended March 31, 2022 compared to the trailing quarter ended December 31, 2021.
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The following table presents the key components of non-interest income for the periods indicated:
Three months ended
(Dollars in thousands)March 31, 2022March 31, 2021$ Change% Change
Service charges$539 $432 $107 24.8 %
Appreciation in cash surrender value of bank owned life insurance242 173 69 39.9 %
Interchange fees442 370 72 19.5 %
Loan placement fees299 657 (358)(54.5)%
Net realized gains on sales and calls of investment securities206 — 206 — %
Federal Home Loan Bank dividends85 70 15 21.4 %
Other Income21 297 (276)(92.9)%
Total non-interest income$1,834 $1,999 $(165)(8.3)%

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)March 31, 2022December 31, 2021$ Change% Change
Salaries and employee benefits$6,944 $7,712 $(768)(10.0)%
Occupancy and equipment1,162 1,344 (182)(13.5)%
Information Technology758 807 (49)(6.1)%
Regulatory assessments222 279 (57)(20.4)%
Data processing expense541 553 (12)(2.2)%
Professional services374 327 47 14.4 %
ATM/Debit card expenses195 203 (8)(3.9)%
Internet banking expense21 58 (37)(63.8)%
Advertising140 141 (1)(0.7)%
Directors’ expenses45 116 (71)(61.2)%
Amortization of core deposit intangibles140 140 — — %
Loan related expenses 71 141 (70)(49.6)%
Personnel other103 139 (36)(25.9)%
Other expense729 802 (73)(9.1)%
Total non-interest expenses$11,445 $12,762 $(1,317)(10.3)%

The decrease in total salaries and employee benefits was the result of a decrease of $402,000 in officers’ expenses related to the change in the discount rate used to calculate the liability for salary continuation, deferred compensation, and split dollar plans; as well as a decrease of approximately $388,000 in salaries and benefits, offset by an increase in loan origination of $23,000.
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The following table presents the key components of non-interest expense for the periods indicated:
Three months ended
(Dollars in thousands)March 31, 2022March 31, 2021$ Change% Change
Salaries and employee benefits$6,944 $6,938 $6 0.1 %
Occupancy and equipment1,162 1,113 49 4.4 %
Information Technology758 559 199 35.6 %
Regulatory assessments222 161 61 37.9 %
Data processing expense541 617 (76)(12.3)%
Professional services374 356 18 5.1 %
ATM/Debit card expenses195 225 (30)(13.3)%
Internet banking expense21 124 (103)(83.1)%
Advertising140 129 11 8.5 %
Directors’ expenses45 41 4 9.8 %
Amortization of core deposit intangibles140 174 (34)(19.5)%
Loan related expenses71 65 6 9.2 %
Personnel other103 173 (70)(40.5)%
Other expense729 713 16 2.2 %
Total non-interest expenses$11,445 $11,388 $57 0.5 %

The Company recorded an income tax provision of $1,900,000 for the three months ended March 31, 2022, compared to $2,487,000 for the three months ended March 31, 2021. The effective tax rate for the three months ended March 31, 2022 was 23.79% compared to 24.95% for the three months ended March 31, 2021. The effective tax rate was affected 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.
Capital Management
On April 20, 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 May 20, 2022 to shareholders of record as of May 6, 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. Sidney B. Cox is Director Emeritus.
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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.
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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 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, 2021. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.
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CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,December 31,March 31,
(In thousands, except share amounts)202220212021
ASSETS
Cash and due from banks$32,263 $29,412 $31,083 
Interest-earning deposits in other banks56,574 134,055 183,758 
Total cash and cash equivalents88,837 163,467 214,841 
Available-for-sale investment securities 1,161,756 1,109,208 768,719 
Equity securities7,071 7,416 7,500 
Loans, less allowance for credit losses of $9,864, $9,600, and $12,056 at March 31, 2022, December 31, 2021, and March 31, 2021, respectively1,002,178 1,029,511 1,078,284 
Bank premises and equipment, net8,178 8,380 8,349 
Bank owned life insurance39,795 39,553 28,886 
Federal Home Loan Bank stock5,595 5,595 5,595 
Goodwill53,777 53,777 53,777 
Core deposit intangibles382 522 1,009 
Accrued interest receivable and other assets55,461 32,710 33,563 
Total assets$2,423,030 $2,450,139 $2,200,523 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Deposits:
Non-interest bearing$926,067 $963,584 $885,654 
Interest bearing1,236,293 1,159,213 1,036,749 
Total deposits2,162,360 2,122,797 1,922,403 
Subordinated debentures39,490 39,454 5,155 
Accrued interest payable and other liabilities29,520 40,043 31,120 
Total liabilities2,231,370 2,202,294 1,958,678 
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: 11,752,623, 11,916,651, and 12,524,609, at March 31, 2022, December 31, 2021, and March 31, 2021, respectively62,893 66,820 79,732 
Retained earnings178,054 173,393 156,851 
Accumulated other comprehensive (loss) income, net of tax(49,287)7,632 5,262 
Total shareholders’ equity191,660 247,845 241,845 
Total liabilities and shareholders’ equity$2,423,030 $2,450,139 $2,200,523 
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CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
For the Three Months Ended,
March 31,December 31,March 31,
(In thousands, except share and per-share amounts)202220212021
INTEREST INCOME:
Interest and fees on loans$12,161 $13,548 $13,765 
Interest on deposits in other banks57 40 32 
Interest and dividends on investment securities:
Taxable4,524 4,106 2,733 
Exempt from Federal income taxes1,440 1,463 1,317 
Total interest income18,182 19,157 17,847 
INTEREST EXPENSE:
Interest on deposits252 253 268 
Interest on subordinated debentures333 196 24 
Total interest expense585 449 292 
Net interest income before provision for credit losses17,597 18,708 17,555 
(REVERSAL OF) PROVISION FOR CREDIT LOSSES— (500)(1,800)
Net interest income after provision for credit losses17,597 19,208 19,355 
NON-INTEREST INCOME:
Service charges539 515 432 
Net realized gains on sales and calls of investment securities206 463 — 
Other income1,089 1,803 1,567 
Total non-interest income1,834 2,781 1,999 
NON-INTEREST EXPENSES:
Salaries and employee benefits6,944 7,712 6,938 
Occupancy and equipment1,162 1,344 1,113 
Other expense3,339 3,706 3,337 
Total non-interest expenses11,445 12,762 11,388 
Income before provision for income taxes7,986 9,227 9,966 
PROVISION FOR INCOME TAXES1,900 2,389 2,487 
Net income$6,086 $6,838 $7,479 
Net income per common share:
Basic earnings per common share$0.51 $0.57 $0.60 
Weighted average common shares used in basic computation11,829,245 11,956,045 12,495,606 
Diluted earnings per common share$0.51 $0.57 $0.60 
Weighted average common shares used in diluted computation11,872,025 11,994,590 12,547,137 
Cash dividends per common share$0.12 $0.12 $0.11 
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CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,
For the three months ended20222021202120212021
(In thousands, except share and per share amounts)
Net interest income$17,597 $18,708 $18,210 $18,081 $17,555 
(Reversal of) provision for credit losses— (500)(500)(1,500)(1,800)
Net interest income after provision for credit losses17,597 19,208 18,710 19,581 19,355 
Total non-interest income1,834 2,781 2,148 2,077 1,999 
Total non-interest expense11,445 12,762 12,062 11,630 11,388 
Provision for income taxes1,900 2,389 2,275 2,465 2,487 
Net income$6,086 $6,838 $6,521 $7,563 $7,479 
Basic earnings per common share$0.51 $0.57 $0.54 $0.61 $0.60 
Weighted average common shares used in basic computation11,829,245 11,956,045 12,007,689 12,498,809 12,495,606 
Diluted earnings per common share$0.51 $0.57 $0.54 $0.60 $0.60 
Weighted average common shares used in diluted computation11,872,025 11,994,590 12,044,896 12,548,044 12,547,137 

CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,
As of and for the three months ended20222021202120212021
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans0.97 %0.92 %0.93 %0.98 %1.11 %
Non-performing assets to total assets0.01 %0.04 %0.07 %0.09 %0.17 %
Total non-performing assets$292 $946 $1,597 $2,035 $3,783 
Total nonaccrual loans$292 $946 $1,597 $2,035 $3,783 
Total substandard loans$10,739 $8,540 $23,065 $32,938 $34,276 
Total special mention loans$39,901 $40,845 $26,612 $18,710 $39,406 
Net loan charge-offs (recoveries)$(264)$(39)$(122)$117 $(941)
Net charge-offs (recoveries) to average loans (annualized)(0.10)%(0.01)%(0.05)%0.04 %(0.35)%
Book value per share$16.31 $20.80 $20.57 $20.36 $19.31 
Tangible book value per share$11.70 $16.24 $16.03 $15.93 $14.94 
Tangible common equity$137,501 $193,546 $192,109 $196,437 $187,059 
Cost of total deposits0.05 %0.05 %0.05 %0.05 %0.06 %
Interest and dividends on investment securities exempt from Federal income taxes$1,440 $1,463 $1,417 $1,409 $1,317 
Net interest margin (calculated on a fully tax equivalent basis) (1)3.19 %3.39 %3.47 %3.60 %3.76 %
Return on average assets (2)0.99 %1.13 %1.13 %1.36 %1.42 %
Return on average equity (2)10.51 %11.21 %10.41 %12.25 %12.17 %
Loan to deposit ratio46.80 %48.95 %52.65 %54.06 %56.72 %
Efficiency ratio57.66 %58.94 %57.66 %55.58 %56.34 %
Tier 1 leverage - Bancorp7.87 %8.03 %8.24 %8.63 %9.09 %
Tier 1 leverage - Bank8.54 %8.47 %8.18 %8.51 %9.03 %
Common equity tier 1 - Bancorp12.06 %12.48 %12.34 %13.43 %14.38 %
Common equity tier 1 - Bank13.43 %13.52 %12.59 %13.61 %14.68 %
Tier 1 risk-based capital - Bancorp12.38 %12.82 %12.68 %13.80 %14.78 %
Tier 1 risk-based capital - Bank13.43 %13.52 %12.59 %13.61 %14.68 %
Total risk-based capital - Bancorp15.27 %15.80 %13.39 %14.58 %15.76 %
Total risk based capital - Bank14.08 %14.18 %13.29 %14.40 %15.66 %
(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.
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Central Valley Community Bancorp -- page 13

CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
For the Three Months Ended
AVERAGE AMOUNTSMarch 31,December 31,March 31,
(Dollars in thousands)202220212021
Interest-bearing deposits in other banks
$129,877 $104,725 $129,185 
Investments1,138,003 1,081,842 727,447 
Loans (1)1,017,280 1,046,602 1,077,140 
Earning assets2,285,160 2,233,169 1,933,772 
Allowance for credit losses(9,832)(10,036)(13,453)
Nonaccrual loans409 1,139 3,712 
Other non-earning assets184,288 192,318 180,046 
Total assets$2,460,025 $2,416,590 $2,104,077 
Interest bearing deposits$1,208,838 $1,158,542 $976,762 
Other borrowings39,474 23,837 5,155 
Total interest-bearing liabilities1,248,312 1,182,379 981,917 
Non-interest bearing demand deposits940,963 944,816 845,065 
Non-interest bearing liabilities39,044 45,349 31,182 
Total liabilities2,228,319 2,172,544 1,858,164 
Total equity231,706 244,046 245,913 
Total liabilities and equity$2,460,025 $2,416,590 $2,104,077 
AVERAGE RATES
Interest-earning deposits in other banks
0.18 %0.15 %0.10 %
Investments2.23 %2.20 %2.42 %
Loans (3)4.85 %5.14 %5.18 %
Earning assets3.29 %3.47 %3.82 %
Interest-bearing deposits0.08 %0.09 %0.11 %
Other borrowings3.37 %3.29 %1.86 %
Total interest-bearing liabilities0.19 %0.15 %0.12 %
Net interest margin (calculated on a fully tax equivalent basis) (2)
3.19 %3.39 %3.76 %
(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 $383, $389, and $350, for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.
(3)    Loan yield includes loan fees for the three months ended March 31, 2022, December 31, 2021, and March 31, 2021 of $264, $1,508, and $2,068, respectively.

CONTACT: 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