EX-99.1 2 cvcy032023earningsreleasee.htm EX-99.1 Document

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FOR IMMEDIATE RELEASE

CENTRAL VALLEY COMMUNITY BANCORP REPORTS EARNINGS RESULTS FOR THE PERIOD ENDED MARCH 31, 2023, AND QUARTERLY DIVIDEND

FRESNO, CALIFORNIA....April 20, 2023... 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 $6,970,000, and fully diluted earnings per common share of $0.59 for the three months ended March 31, 2023, compared to $6,086,000 and $0.51 per fully diluted common share for the three months ended March 31, 2022.
FIRST QUARTER FINANCIAL HIGHLIGHTS
•Net income for the first quarter of 2023 decreased to $6,970,000 or $0.59 per diluted common share, compared to $7,633,000 and $0.65, respectively, in the fourth quarter of 2022. The Company recorded a $518,000 provision for credit losses and a $207,000 provision for unfunded commitments during the first quarter of 2023.
•Net loans increased $24.8 million or 1.99%, and total assets increased $41.4 million or 1.71% at March 31, 2023 compared to December 31, 2022.
•Total deposits increased 3.62% to $2.18 billion at March 31, 2023 compared to December 31, 2022.
•Total cost of deposits increased to 0.20% for the quarter ended March 31, 2023 compared to 0.09% for the quarter ended December 31, 2022.
•Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 48.92% and 43.77% for the quarters ended March 31, 2023 and 2022, respectively.
•There were no non-performing assets for the quarter ended March 31, 2023. Additionally, net loan charge-offs were $19,000 and loans delinquent more than 30 days were $22,000.
•The Company adopted and implemented Accounting Standard Update (ASU) 2016-13, more commonly referred to as the Current Expected Credit Loss (CECL) method on January 1, 2023, which resulted in an increase to the allowance for credit losses of $3,910,000, a reserve for held-to-maturity securities of $776,000, a reserve for unfunded commitments of $612,000, and a decrease, net of taxes, to retained earnings of $3,731,000.
•Net interest margin increased to 3.81% at March 31, 2023, from 3.80% at December 31, 2022.
•Capital positions remain strong at March 31, 2023 with a 8.58% Tier 1 Leverage Ratio; a 11.79% Common Equity Tier 1 Ratio; a 12.08% Tier 1 Risk-Based Capital Ratio; and a 15.03% Total Risk-Based Capital Ratio.
•The Company declared a $0.12 per common share cash dividend, payable on May 19, 2023 to shareholders of record as of May 5, 2023.
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Central Valley Community Bancorp -- page 2

“Historically, it has been during times of economic uncertainty and volatility that Central Valley Community Bank’s model of partnering with our clients shines brightest and our overall performance stands out,” said James J. Kim, President and CEO. “Our partnership model has enabled us to navigate the uncertainty of the first quarter without losing clients, due also in part to how the Company reflects the diversity of our marketplace by serving businesses and consumers across industries and socioeconomic demographics.”

“As the dust settles following this turbulent quarter for the financial sector in the post-pandemic economy, one truth is abundantly clear: the value of community banks is more evident today than ever for building strong businesses and communities. Likewise, CVCB’s momentum and commitment to our team, clients, communities and shareholders is stronger than ever, which is reflected in our first quarter performance.”

Results of Operations
For the quarter ended March 31, 2023, the Company reported unaudited consolidated net income of $6,970,000 and earnings per diluted common share of $0.59, compared to consolidated net income of $6,086,000 and $0.51 per diluted share for the same period in 2022. Net income for the period was affected by an increase in net interest income before provision for credit losses of $3,715,000, offset by an increase in total non-interest expenses of $1,606,000, a decrease in non-interest income of $259,000, and an increase in the provision for income taxes of $448,000. The effective tax rate increased to 25.20% from 23.79% for the quarters ended March 31, 2023 and March 31, 2022, respectively. Net income for the immediately trailing quarter ended December 31, 2022 was $7,633,000, or $0.65 per diluted common share.

Annualized return on average equity (ROE) for the first quarter of 2023 was 15.30%, compared to 10.51% for the same period of 2022. The increase in ROE reflects a decrease in average shareholders’ equity compared to the prior year. The decrease in shareholders’ equity was primarily driven by the increase in accumulated other comprehensive losses, dividends paid, and stock repurchases, partially offset by the retention of earnings. Annualized return on average assets (ROA) was 1.15% for the first quarter of 2023 compared to 0.99% for the same period in 2022. This increase was due to the increase in net income and a decrease in average assets.

The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.95% for the quarter ended March 31, 2023, compared to 2.02% for the quarter ended March 31, 2022 and 2.76% for the quarter ended December 31, 2022. Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased by $242,489,000 to $1,260,178,000 for the quarter ended March 31, 2023, from $1,017,689,000 for the quarter ended March 31, 2022 and increased by $21,426,000 from $1,238,752,000 for the quarter ended December 31, 2022. The effective yield on average loans was 5.31% for the quarter ended March 31, 2023, compared to 4.85% and 5.17% for the quarters ended March 31, 2022 and December 31, 2022, respectively.

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Central Valley Community Bancorp -- page 3
The Company’s net interest margin (fully tax equivalent basis) was 3.81% for the quarter ended March 31, 2023, compared to 3.19% for the quarter ended March 31, 2022. Net interest income, before provision for credit losses, increased $3,715,000, or 21.11%, to $21,312,000 for the first quarter of 2023, compared to $17,597,000 for the same period in 2022. The accretion on loan marks of acquired loans increased interest income by $67,000 and $222,000 during the quarters ended March 31, 2023 and 2022, respectively. Net interest income during the first quarters of 2023 and 2022 benefited by approximately $2,000 and $286,000, respectively, from prepayment penalties and payoff of loans. The net interest margin period-to-period comparisons were impacted by the increase in the yield on the average investment securities and the increase in the yield on the loan portfolio, offset by the increase in the yield on total interest-bearing liabilities. Over the same periods, the cost of total deposits increased to 0.20% from 0.05%.

Non-Interest Income - The following table presents the key components of non-interest income for the current and trailing quarterly period indicated:
Three months ended
(Dollars in thousands)March 31, 2023December 31, 2022$ Change% Change
Service charges$387 $457 $(70)(15.3)%
Appreciation in cash surrender value of bank owned life insurance249 248 1 0.4 %
Interchange fees446 495 (49)(9.9)%
Loan placement fees124 177 (53)(29.9)%
Net realized losses on sales and calls of investment securities(219)(953)734 (77.0)%
Federal Home Loan Bank dividends109 109 — — %
Other Income479 437 42 9.6 %
Total non-interest income$1,575 $970 $605 62.4 %

The change in the net realized losses on sales of investment securities during the quarter ended March 31, 2023 were primarily responsible for the increase in total non-interest income, when compared to the quarter ended December 31, 2022.

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Central Valley Community Bancorp -- page 4
Non-Interest Expense - The following table presents the key components of non-interest expense for the current and trailing quarterly period indicated:
Three months ended
(Dollars in thousands)March 31, 2023December 31, 2022$ Change% Change
Salaries and employee benefits$7,766 $7,416 $350 4.7 %
Occupancy and equipment1,258 1,262 (4)(0.3)%
Information technology847 879 (32)(3.6)%
Regulatory assessments210 211 (1)(0.5)%
Data processing expense650 596 54 9.1 %
Professional services353 68 285 419.1 %
ATM/Debit card expenses184 221 (37)(16.7)%
Internet banking expense34 36 (2)(5.6)%
Advertising125 141 (16)(11.3)%
Directors’ expenses163 98 65 66.3 %
Amortization of core deposit intangibles34 34 — — %
Loan related expenses 147 51 96 188.2 %
Personnel other259 104 155 149.0 %
Provision for unfunded commitments207 — 207 100.0 %
Other expense814 1,035 (221)(21.4)%
Total non-interest expenses$13,051 $12,152 $899 7.4 %

The increase in non-interest expenses was the result of increases in salaries and employee benefits, professional services, the provision for unfunded commitments, and personnel other; offset by a decrease in other expenses. The increase in salaries and benefits was the reflection of incentives paid during the quarter. The increase in personnel other was primarily the result of employee placement fees.

Balance Sheet Summary
Total assets increased $41,374,000 or 1.71% during the quarter ended March 31, 2023, and $40,863,000 or 1.69% compared to the first quarter of 2022. Asset growth during the first quarter was driven by loan growth and increases in cash and cash equivalents. Total average assets for the quarter ended March 31, 2023 were $2,415,640,000 compared to $2,460,025,000 for the quarter ended March 31, 2022 and $2,441,652,000 for the quarter ended December 31, 2022, a decrease of $44,385,000 or 1.80% and a decrease of $26,012,000 or 1.07%, respectively.

For the quarter ended March 31, 2023, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, decreased by $219,608,000, or 17.32%, compared to the quarter ended March 31, 2022, and decreased by $52,580,000, or 4.78%, compared to the quarter ended December 31, 2022. These decreases were the result of sales, maturities, and the change in the unrealized loss position on available for sale securities.

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Central Valley Community Bancorp -- page 5
In comparing the first quarter of 2023 to the prior quarter and the first quarter of 2022, total average gross loans increased by $21,426,000 or 1.73% and $242,489,000 or 23.83%, respectively. Non-owner occupied commercial real estate experienced the largest increase during the first quarter, growing $35.6 million on a gross basis.

The following table shows the Company’s outstanding loan portfolio composition as of March 31, 2023 and December 31, 2022:
Loan Type (dollars in thousands)March 31, 2023% of Total
Loans		December 31, 2022% of Total
Loans
Commercial:
Commercial and industrial$149,699 11.7 %$141,197 11.2 %
Agricultural production22,104 1.7 %37,007 2.9 %
Total commercial171,803 13.4 %178,204 14.1 %
Real estate:
Construction & other land loans112,989 8.8 %109,175 8.7 %
Commercial real estate - owner occupied196,117 15.3 %194,663 15.5 %
Commercial real estate - non-owner occupied500,420 39.0 %464,809 37.2 %
Farmland116,723 9.1 %119,648 9.5 %
Multi-family residential23,694 1.8 %24,586 2.0 %
1-4 family - close-ended91,696 7.1 %93,510 7.4 %
1-4 family - revolving27,260 2.1 %30,071 2.4 %
Total real estate1,068,899 83.2 %1,036,462 82.7 %
Consumer43,431 3.4 %40,252 3.2 %
Net deferred origination fees1,421 1,386 
Total gross loans1,285,554 100.0 %1,256,304 100.0 %
Allowance for credit losses(15,257)(10,848)
Total loans$1,270,297 $1,245,456 

Total average deposits decreased $68,543,000, or 3.19%, to $2,081,258,000 for the quarter ended March 31, 2023, compared to $2,149,801,000 for the quarter ended March 31, 2022, and decreased $87,817,000, or 4.05%, compared to $2,169,075,000 for the quarter ended December 31, 2022. The Company’s ratio of average non-interest bearing deposits to total deposits was 48.92% for the quarter ended March 31, 2023, compared to 43.77% and 50.42% for the quarters ended March 31, 2022 and December 31, 2022, respectively.
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Central Valley Community Bancorp -- page 6

The composition of deposits at March 31, 2023 and December 31, 2022 is summarized in the table below:
(Dollars in thousands)March 31, 2023% of
Total
Deposits		December 31, 2022% of
Total
Deposits
NOW accounts$294,109 13.5 %$324,089 15.4 %
MMA accounts488,344 22.4 %435,783 20.8 %
Time deposits213,032 9.8 %67,923 3.2 %
Savings deposits204,838 9.4 %215,287 10.3 %
Total interest-bearing1,200,323 55.1 %1,043,082 49.7 %
Non-interest bearing975,424 44.9 %1,056,567 50.3 %
Total deposits$2,175,747 100.0 %$2,099,649 100.0 %

The Company has significant liquidity, both on and off-balance sheet, to meet customer demand. During the quarter, the Company’s cash and cash equivalents increased $33,092,000 to $64,262,000 compared to $31,170,000 at December 31, 2022. The Company had no short-term borrowings at March 31, 2023 compared to $46,000,000 at December 31, 2022. At March 31, 2023 and December 31, 2022, the Company had the following sources of primary and secondary liquidity:

Liquidity Sources (in thousands)March 31, 2023December 31, 2022
Cash and cash equivalents$64,262 $31,170 
Unpledged investment securities727,198 758,389 
Excess pledged securities93,226 81,527 
FHLB borrowing availability318,365 319,309 
Fed bank term funding program (BTFP) availability38,209 — 
Unsecured lines of credit110,000 110,000 
Funds available through fed discount window4,792 4,702 
Total$1,356,052 $1,305,097 

Credit Quality
During the first quarter of 2023, the Company recorded net loan charge-offs of $19,000 compared to $264,000 net loan recoveries for the same period in 2022. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.01% for the quarter ended March 31, 2023 compared to (0.10)% for the quarter ended March 31, 2022. During the quarter ended March 31, 2023, the Company recorded a provision of $518,000 for credit losses, compared to no provision for the quarter ended March 31, 2022.

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Central Valley Community Bancorp -- page 7
The following table shows the Company’s loan portfolio allocated by management’s internal risk ratings:
Loan Risk Rating (In thousands)March 31, 2023December 31, 2022March 31, 2022
Pass$1,224,229 $1,196,110 $960,323 
Special mention29,061 31,023 39,901 
Substandard30,843 27,785 10,739 
Doubtful— — — 
Total$1,284,133 $1,254,918 $1,010,963 
At March 31, 2023, the allowance for credit losses was $15,257,000, compared to $10,848,000 at December 31, 2022, a net increase of $4,409,000 reflecting a CECL implementation Day 1 adjustment of $3,910,000, a provision of $518,000 and net charge-offs during the period. The allowance for credit losses as a percentage of total loans was 1.19% and 0.86% as of March 31, 2023 and December 31, 2022, 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 as of December 31, 2022. Upon adoption of CECL, all acquired loans are included in the allowance for credit losses as of January 1, 2023. The recorded value of acquired loans totaled $69,012,000 at March 31, 2023 and $73,456,000 at December 31, 2022. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.92% as of December 31, 2022. The Company believes the allowance for credit losses is adequate to provide for expected credit losses within the loan portfolio at March 31, 2023.

Cash Dividend Declared
On April 19, 2023, 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 19, 2023 to shareholders of record as of May 5, 2023. The Company continues to be well capitalized and expects to maintain adequate capital levels.

Company Overview
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.
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Central Valley Community Bancorp -- page 8

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, including the impact of inflation; (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 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, 2022. 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 -- page 9
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,December 31,March 31,
(In thousands, except share amounts)202320222022
ASSETS
Cash and due from banks$25,464 $25,485 $32,263 
Interest-earning deposits in other banks38,798 5,685 56,574 
Total cash and cash equivalents64,262 31,170 88,837 
Available-for-sale debt securities 631,524 648,825 1,161,756 
Held-to-maturity debt securities 303,844 305,107 — 
Equity securities6,663 6,558 7,071 
Loans, less allowance for credit losses of $15,257, $10,848, and $9,864 at March 31, 2023, December 31, 2022, and March 31, 2022, respectively1,270,297 1,245,456 1,002,178 
Bank premises and equipment, net8,040 7,987 8,178 
Bank owned life insurance40,786 40,537 39,795 
Federal Home Loan Bank stock6,169 6,169 5,595 
Goodwill53,777 53,777 53,777 
Accrued interest receivable and other assets78,531 76,933 55,843 
Total assets$2,463,893 $2,422,519 $2,423,030 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Deposits:
Non-interest bearing$975,424 $1,056,567 $926,067 
Interest bearing1,200,323 1,043,082 1,236,293 
Total deposits2,175,747 2,099,649 2,162,360 
Short-term borrowings— 46,000 — 
Senior debt and subordinated debentures69,635 69,599 39,490 
Accrued interest payable and other liabilities36,459 32,611 29,520 
Total liabilities2,281,841 2,247,859 2,231,370 
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: 11,754,938, 11,735,291, and 11,752,623, at March 31, 2023, December 31, 2022, and March 31, 2022, respectively61,924 61,487 62,893 
Retained earnings196,229 194,400 178,054 
Accumulated other comprehensive (loss) income, net of tax(76,101)(81,227)(49,287)
Total shareholders’ equity182,052 174,660 191,660 
Total liabilities and shareholders’ equity$2,463,893 $2,422,519 $2,423,030 

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Central Valley Community Bancorp -- page 10
CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)    
For the Three Months Ended,
March 31,December 31,March 31,
(In thousands, except share and per-share amounts)202320222022
INTEREST INCOME:
Interest and fees on loans$16,508 $16,155 $12,161 
Interest on deposits in other banks75 234 57 
Interest and dividends on investment securities:
Taxable5,886 5,426 4,524 
Exempt from Federal income taxes1,405 1,534 1,440 
Total interest income23,874 23,349 18,182 
INTEREST EXPENSE:
Interest on deposits1,004 483 252 
Interest on short-term borrowings661 — — 
Interest on senior debt and subordinated debentures897 873 333 
Total interest expense2,562 1,356 585 
Net interest income before provision for credit losses21,312 21,993 17,597 
PROVISION FOR CREDIT LOSSES518 500 — 
Net interest income after provision for credit losses20,794 21,493 17,597 
NON-INTEREST INCOME:
Service charges387 457 539 
Net realized (losses) gains on sales and calls of investment securities(219)(953)206 
Other income1,407 1,466 1,089 
Total non-interest income1,575 970 1,834 
NON-INTEREST EXPENSES:
Salaries and employee benefits7,766 7,416 6,944 
Occupancy and equipment1,258 1,262 1,162 
Other expense4,027 3,474 3,339 
Total non-interest expenses13,051 12,152 11,445 
Income before provision for income taxes9,318 10,311 7,986 
PROVISION FOR INCOME TAXES2,348 2,678 1,900 
Net income$6,970 $7,633 $6,086 
Net income per common share:
Basic earnings per common share$0.60 $0.65 $0.51 
Weighted average common shares used in basic computation11,703,813 11,690,410 11,829,245 
Diluted earnings per common share$0.59 $0.65 $0.51 
Weighted average common shares used in diluted computation11,731,135 11,708,753 11,872,025 
Cash dividends per common share$0.12 $0.12 $0.12 
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Central Valley Community Bancorp -- page 11
CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Mar. 31,Dec. 31,Sept. 30,Jun. 30,Mar. 31,
For the three months ended20232022202220222022
(In thousands, except share and per share amounts)
Net interest income$21,312 $21,993 $20,164 $19,810 $17,597 
Provision for credit losses518 500 500 — — 
Net interest income after provision for credit losses20,794 21,493 19,664 19,810 17,597 
Total non-interest income1,575 970 1,480 770 1,834 
Total non-interest expense13,051 12,152 12,798 12,083 11,445 
Provision for income taxes2,348 2,678 1,962 1,955 1,900 
Net income$6,970 $7,633 $6,384 $6,542 $6,086 
Basic earnings per common share$0.60 $0.65 $0.55 $0.56 $0.51 
Weighted average common shares used in basic computation11,703,813 11,690,410 11,678,532 11,665,074 11,829,245 
Diluted earnings per common share$0.59 $0.65 $0.55 $0.56 $0.51 
Weighted average common shares used in diluted computation11,731,135 11,708,753 11,689,323 11,685,850 11,872,025 

CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Mar. 31,Dec. 31,Sep. 30,Jun. 30,Mar. 31,
As of and for the three months ended20232022202220222022
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans1.19 %0.86 %0.85 %0.87 %0.97 %
Non-performing assets to total assets— %— %0.01 %0.01 %0.01 %
Total non-performing assets$— $— $251 $271 $292 
Total nonaccrual loans$— $— $251 $271 $292 
Total substandard loans$30,843 $27,785 $22,657 $10,756 $10,739 
Total special mention loans$29,061 $31,023 $30,894 $34,509 $39,901 
Net loan charge-offs (recoveries)$19 $18 $7 $(9)$(264)
Net charge-offs (recoveries) to average loans (annualized)0.01 %0.01 %— %— %(0.10)%
Book value per share$15.49 $14.88 $13.54 $13.90 $16.31 
Tangible book value per share$10.91 $10.30 $8.94 $9.29 $11.70 
Tangible common equity$128,240 $120,814 $104,935 $108,863 $137,501 
Cost of total deposits0.20 %0.09 %0.04 %0.04 %0.05 %
Interest and dividends on investment securities exempt from Federal income taxes$1,405 $1,534 $1,825 $1,879 $1,440 
Net interest margin (calculated on a fully tax equivalent basis) (1)3.81 %3.80 %3.57 %3.48 %3.19 %
Return on average assets (2)1.15 %1.25 %1.06 %1.07 %0.99 %
Return on average equity (2)15.30 %18.79 %14.42 %14.73 %10.51 %
Loan to deposit ratio59.09 %59.83 %57.28 %53.94 %46.80 %
Efficiency ratio55.44 %49.85 %57.20 %54.20 %57.66 %
Tier 1 leverage - Bancorp8.58 %8.37 %8.26 %7.89 %7.87 %
Tier 1 leverage - Bank11.19 %10.86 %10.73 %9.10 %8.54 %
Common equity tier 1 - Bancorp11.79 %11.92 %11.56 %11.94 %12.06 %
Common equity tier 1 - Bank15.75 %15.87 %15.41 %14.15 %13.43 %
Tier 1 risk-based capital - Bancorp12.08 %12.22 %11.86 %12.26 %12.38 %
Tier 1 risk-based capital - Bank15.75 %15.87 %15.41 %14.15 %13.43 %
Total risk-based capital - Bancorp15.03 %14.92 %14.54 %15.07 %15.27 %
Total risk based capital - Bank16.70 %16.53 %16.03 %14.78 %14.08 %
(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 12
CENTRAL VALLEY COMMUNITY BANCORP
SCHEDULE OF AVERAGE BALANCES AND AVERAGE YIELDS AND RATES
(Unaudited)

 For the Three Months Ended
March 31, 2023		For the Three Months Ended
December 31, 2022		For the Three Months Ended
March 31, 2022
(Dollars in thousands)Average
Balance		Interest
Income/
Expense		Average
Interest
Rate		Average
Balance		Interest
Income/
Expense		Average
Interest
Rate		Average
Balance		Interest
Income/
Expense		Average
Interest
Rate
ASSETS      
Interest-earning deposits in other banks$6,882 $75 4.36 %$24,607 $234 3.80 %$129,877 $57 0.18 %
Securities
Taxable securities783,938 5,886 3.00 %803,383 5,426 2.70 %881,399 4,524 2.05 %
Non-taxable securities (1)257,452 1,778 2.76 %272,862 1,942 2.85 %256,604 1,823 2.84 %
Total investment securities1,041,390 7,664 2.94 %1,076,245 7,368 2.74 %1,138,003 6,347 2.23 %
Total securities and interest-earning deposits1,048,272 7,739 2.95 %1,100,852 7,602 2.76 %1,267,880 6,404 2.02 %
Loans (2) (3)1,260,178 16,508 5.31 %1,238,592 16,155 5.17 %1,017,280 12,161 4.85 %
Total interest-earning assets2,308,450 $24,247 4.26 %2,339,444 $23,757 4.03 %2,285,160 $18,565 3.29 %
Allowance for credit losses(14,759)  (10,436)(9,832)  
Non-accrual loans—   160 409   
Cash and due from banks27,574   28,599 52,482   
Bank premises and equipment8,072   7,952 8,306   
Other assets86,303   75,933 123,500   
Total average assets$2,415,640   $2,441,652 $2,460,025   
LIABILITIES AND SHAREHOLDERS’ EQUITY      
Interest-bearing liabilities:      
Savings and NOW accounts$526,232 $92 0.07 %$561,779 $102 0.07 %$578,763 $35 0.02 %
Money market accounts468,166 837 0.73 %442,677 359 0.32 %542,666 182 0.14 %
Time certificates of deposit68,650 75 0.44 %71,026 22 0.12 %87,409 35 0.16 %
Total interest-bearing deposits1,063,048 1,004 0.38 %1,075,482 483 0.18 %1,208,838 252 0.08 %
Other borrowed funds124,480 1,558 5.01 %75,936 873 4.60 %39,474 333 3.37 %
Total interest-bearing liabilities1,187,528 $2,562 0.87 %1,151,418 $1,356 0.47 %1,248,312 $585 0.19 %
Non-interest bearing demand deposits1,018,210   1,093,593 940,963   
Other liabilities31,591   34,182 39,044   
Shareholders’ equity178,311   162,459 231,706   
Total average liabilities and shareholders’ equity$2,415,640   $2,441,652 $2,460,025   
Interest income and rate earned on average earning assets $24,247 4.26 %$23,757 4.03 % $18,565 3.29 %
Interest expense and interest cost related to average interest-bearing liabilities 2,562 0.87 %1,356 0.47 % 585 0.19 %
Net interest income and net interest margin (4) $21,685 3.81 %$22,401 3.80 % $17,980 3.19 %

(1)    Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds totaling $373, $408, and $383 at March 31, 2023, December 31, 2022, and March 31, 2022, respectively.
(2)    Loan interest income includes loan costs of $260 and $135 at March 31, 2023 and December 31, 2022, respectively, and loan fees of $264 at March 31, 2022.
(3)    Average loans do not include non-accrual loans but do include interest income recovered from previously charged off loans.
(4)    Net interest margin is computed by dividing net interest income by total average interest-earning assets.



CONTACTS: Investor Contact:                 Media Contact:
Shannon Avrett                Debbie Nalchajian-Cohen
Executive Vice President, Chief Financial Officer    Marketing Director
Central Valley Community Bancorp        Central Valley Community Bancorp
916-235-4617                    559-222-1322