Market Overview

Central Valley Community Bancorp Reports Earnings Results for the Year and Quarter Ended December 31, 2017

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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 $14,026,000,
and diluted earnings per common share of $1.10 for the year ended
December 31, 2017, compared to $15,182,000 and $1.33 per diluted common
share for the year ended December 31, 2016.

FOURTH QUARTER FINANCIAL HIGHLIGHTS

  • The Company completed its acquisition of Folsom Lake Bank on October
    1, 2017.
  • The Company recorded a one-time deferred tax revaluation expense of
    $3.54 million in the fourth quarter of 2017 related to the Tax Cuts
    and Jobs Act, which resulted in a reduction in diluted earnings per
    share of $0.26 in the quarter and $0.28 for the year.
  • Net loans increased $144.6 million or 19.35%, and total assets
    increased $218.3 million or 15.13% at December 31, 2017 compared to
    December 31, 2016.
  • Total deposits increased 13.51% to $1.43 billion at December 31, 2017
    compared to December 31, 2016.
  • Total cost of deposits remain at record low levels at 0.08% and 0.09%
    at December 31, 2017 and 2016, respectively.
  • Capital positions remain strong at December 31, 2017 with a 9.71% Tier
    1 Leverage Ratio; a 12.90% Common Equity Tier 1 Ratio; a 13.28% Tier 1
    Risk-Based Capital Ratio; and a 14.07% Total Risk-Based Capital Ratio.
  • Net loan charge-offs in the fourth quarter of 2017 were $138,000,
    compared to net loan recoveries of $27,000 in the fourth quarter of
    2016.
  • The Company will consolidate two banking offices into branches
    currently serving the same communities - one in Visalia and one in
    Folsom.

"We are pleased with the fourth quarter and full year 2017 financial
metrics. The merger with Folsom Lake Bank was completed on October 1,
2017, which contributed to the Company's historic highs in Loans,
Deposits and Pre-Tax earnings. All aspects of the merger are on target
and integration plans are progressing well. The systems conversion is on
schedule for early February," stated James M. Ford, President & CEO of
Central Valley Community Bank and Central Valley Community Bancorp.

"Our expansion in the Greater Sacramento Region has set the stage for
continued growth of the Company in 2018 and beyond. Notwithstanding the
one-time Deferred Tax Asset write-down as a result of the 2017 tax law
changes, the Company's core business continues to expand, benefiting
from our nearly 40-year community bank relationship model that's
consistently delivered throughout our territory," continued Ford.

"The strategic plan for 2018 includes consolidating two existing offices
into branches in the same communities of Visalia and Folsom during the
second quarter, allowing the Company's cost structure to further improve
and providing opportunity to invest in technology and continued growth
initiatives throughout California's San Joaquin Valley and the Greater
Sacramento Region," concluded Ford.

Net income for the year ended December 31, 2017 decreased 7.61% in 2017
compared to 2016, primarily driven by an increase of $2,876,000 in
provision for income taxes which was the result of the one-time non-cash
adjustment to deferred taxes of $3,535,000 due to the prospective change
in the federal corporate tax rate from 35% to 21%. During the year ended
December 31, 2017, the Company recorded an increase in net realized
gains on sales and calls of investment securities, and an increase in
net interest income, offset by an increase in non-interest expense
compared to the year ended December 31, 2016. During the year ended
December 31, 2017, the Company recorded a reverse provision for credit
losses of $1,150,000, compared to a $5,850,000 reverse provision during
the year ended December 31, 2016. Net interest income before the
provision for credit losses for the year ended December 31, 2017 was
$56,239,000, compared to $45,580,000 for the year ended December 31,
2016, an increase of $10,659,000 or 23.39%. Approximately $4,303,000 of
the increase in net interest income was attributed to the Sierra Vista
Bank (SVB) acquisition completed in 2016, $1,349,000 from the Folsom
Lake Bank (FLB) acquisition completed in 2017, and approximately
$5,007,000 from our continued organic growth. The impact to interest
income from the accretion of the loan marks on acquired loans was
$1,048,000 and $1,143,000 for the years ended December 31, 2017 and
2016, respectively. In addition, net interest income before the
provision for credit losses for the year ended December 31, 2017
benefited from approximately $1,313,000 in income from prepayment
penalties and payoff of loans previously on nonaccrual status, as
compared to $586,000 for the year ended December 31, 2016. Excluding
these benefits, net interest income for the year ended December 31, 2017
increased by $9,932,000 compared to the year ended December 31, 2016.

During the year ended December 31, 2017, the Company's shareholders'
equity increased $45,526,000, or 27.75%, compared to December 31, 2016.
The increase in shareholders' equity was driven by the issuance of
equity in connection with the FLB acquisition, as well as 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).

Return on average equity (ROE) for the year ended December 31, 2017 was
7.69%, compared to 9.84% for the year ended December 31, 2016. The
decrease in ROE was primarily the result of the one-time deferred tax
revaluation expense, and the increase in shareholders' equity. The
Company declared and paid $0.24 per share in cash dividends to holders
of common stock for the years ended December 31, 2017 and 2016.
Annualized return on average assets (ROA) was 0.94% for the year ended
December 31, 2017 and 1.15% for the year ended December 31, 2016. During
the year ended December 31, 2017, the Company's total assets increased
15.13%, and total liabilities increased 13.51%, compared to December 31,
2016.

On October 1, 2017, the Company completed the acquisition of FLB. With
the FLB acquisition, the Company added two full service branches,
located in Folsom, and Rancho Cordova. The FLB Roseville branch was
consolidated with the Company's Roseville branch in October 2017. The
Company's results of operations for the year ended December 31, 2017
include the FLB operations beginning October 1, 2017. Assets and
liabilities acquired included loans of $117,815,000, net of a
preliminary fair value mark of $4,057,000; bank premises and equipment
of $561,000; and deposits of $171,948,000. The Company also recorded a
core deposit intangible of $1,879,000, a premium on deposits of
$132,000, and goodwill of $13,466,000 in the acquisition. The Company
issued an aggregate of approximately 1.277 million shares of its common
stock to FLB shareholders. Based on the closing price of the Company's
common stock on September 30, 2017 of $22.30 per share, the FLB common
shareholders received aggregate merger consideration worth approximately
$28.48 million.

Non-performing assets increased by $403,000, or 15.85%, to $2,945,000 at
December 31, 2017, compared to $2,542,000 at December 31, 2016. During
the year ended December 31, 2017, the Company recorded $602,000 in net
loan recoveries, compared to $5,566,000 in net recoveries for the year
ended December 31, 2016. The net charge-off (recovery) ratio, which
reflects annualized net recoveries to average loans, was (0.08)% for the
year ended December 31, 2017, compared to (0.86)% for the same period in
2016. Total non-performing assets were 0.18% of total assets as of
December 31, 2017 and December 31, 2016.

At December 31, 2017, the allowance for credit losses was $8,778,000,
compared to $9,326,000 at December 31, 2016, a net decrease of $548,000
reflecting the reverse provision of $1,150,000 and the net recoveries
during the period. The allowance for credit losses as a percentage of
total loans was 0.97% at December 31, 2017, and 1.23% at December 31,
2016. Total loans includes loans acquired in the acquisitions of FLB on
October 1, 2017, SVB 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 $243,712,000 at
December 31, 2017 and $168,296,000 at December 31, 2016. Excluding these
acquired loans from the calculation, the allowance for credit losses to
total gross loans was 1.34% and 1.59% as of December 31, 2017 and
December 31, 2016, respectively, and general reserves associated with
non-impaired loans to total non-impaired loans was 1.34% and 1.55%,
respectively. The Company believes the allowance for credit losses is
adequate to provide for probable incurred credit losses within the loan
portfolio at December 31, 2017.

The Company's net interest margin (fully tax equivalent basis) was 4.41%
for the year ended December 31, 2017, compared to 4.09% for the year
ended December 31, 2016. The increase in net interest margin in the
period-to-period comparison resulted primarily from an increase in the
effective yield on average investment securities, and an increase in the
yield on the Company's loan portfolio. Net interest income during the
year ended December 31, 2017 and 2016, also benefited by approximately
$1,313,000 and $586,000, respectively, from prepayment penalties and
payoff of loans previously on nonaccrual status.

For the year ended December 31, 2017, the effective yield on average
total earning assets increased 32 basis points to 4.50% compared to
4.18% for the year ended December 31, 2016, while the cost of average
total interest-bearing liabilities decreased slightly to 0.14% for the
quarter ended December 31, 2017 as compared to 0.15% for the quarter
ended December 31, 2016. Over the same periods, the cost of average
total deposits decreased to 0.08% for the year ended December 31, 2017
compared to 0.09% for the same period in 2016.

For the year ended December 31, 2017, the Company's average investment
securities, including interest-earning deposits in other banks and
Federal funds sold, totaled $568,426,000, an increase of $7,566,000, or
1.35%, compared to the year ended December 31, 2016. The effective yield
on average investment securities, including interest earning deposits in
other banks and Federal funds sold, increased to 3.06% for the year
ended December 31, 2017, compared to 2.84% for the year ended
December 31, 2016.

Total average loans (including nonaccrual), which generally yield higher
rates than investment securities, increased $146,770,000, from
$646,573,000 for the year ended December 31, 2016 to $793,343,000 for
the year ended December 31, 2017. The majority of the year-over-year
loan growth compared to the prior year was due to the acquisitions of
SVB in 2016 and FLB in 2017. The effective yield on average loans
increased to 5.51% for the year ended December 31, 2017, compared to
5.29% for the year ended December 31, 2016.

Total average assets for the year ended December 31, 2017 was
$1,491,696,000 compared to $1,321,007,000 for the year ended
December 31, 2016, an increase of $170,689,000 or 12.92%. During the
year ended December 31, 2017 and 2016, the average loan-to-deposit ratio
was 61.77% and 56.51%, respectively. Total average deposits increased
$140,074,000 or 12.24% to $1,284,305,000 for the year ended December 31,
2017, compared to $1,144,231,000 for the year ended December 31, 2016.
Average interest-bearing deposits increased $57,238,000, or 7.87%, and
average non-interest bearing demand deposits increased $82,836,000, or
19.86%, for the year ended December 31, 2017, compared to the year ended
December 31, 2016. The Company's ratio of average non-interest bearing
deposits to total deposits was 38.93% for the year ended December 31,
2017, compared to 36.46% for the year ended December 31, 2016. The year
over year growth was primarily driven by the SVB and FLB acquisitions
which closed on October 1, 2016 and October 1, 2017, respectively.

Non-interest income for the year ended December 31, 2017 increased by
$1,245,000 to $10,836,000, compared to $9,591,000 for the year ended
December 31, 2016, primarily driven by an increase of $882,000 in net
realized gains on sales and calls of investment securities. A $204,000
increase in service charge income, and an increase of $294,000 in other
income was offset by a decrease in loan placement fees of $377,000 and a
$187,000 decrease in Federal Home Loan Bank dividends.

Non-interest expense for the year ended December 31, 2017 increased
$5,484,000, or 14.09%, to $44,406,000 compared to $38,922,000 for the
year ended December 31, 2016. The net increase year over year was
primarily attributable to the SVB and FLB acquisitions, which resulted
in increases in salaries and employee benefits of $2,857,000, occupancy
and equipment expenses of $432,000, license and maintenance contracts of
$287,000, professional services of $251,000, ATM/Debit card expenses of
$117,000, amortization of core deposit intangibles of $85,000,
advertising expenses of $62,000, data processing expenses of $33,000,
acquisition and integration expenses of $46,000, Internet banking
expenses of $27,000, directors' expenses of $67,000, and regulatory
assessments of $10,000. Additionally, personnel expense increased
$98,000, loan related expenses increased $97,000, donations increased
$78,000, and telephone expenses decreased $92,000 in 2017 compared to
2016.

The Company recorded an income tax provision of $9,793,000 for the year
ended December 31, 2017, compared to $6,917,000 for the year ended
December 31, 2016. As a result of the enactment of the Tax Cuts and Jobs
Act (the "Act") during the fourth quarter of 2017, the federal tax rate
applied to the Company's deferred taxes was adjusted to reflect the 2018
tax rates (the rates at which the deferred tax items are expected to
reverse). The change to the tax rates (including the rate change applied
to deferred taxes reflected in other comprehensive income and certain
tax-advantaged investments as reflected in other assets) resulted in an
increase to the Company's tax provision of $3,535,000. The Company's net
deferred tax assets consist of temporary differences associated with
assets and liabilities that are potentially subject to future valuation
adjustments, such as those acquired in business combinations. While the
Company has utilized all the information that is currently available in
determining the impact to tax expense resulting from the Act, the
potential impact of provisional amounts have not been recorded. At this
time, management believes that the resolution of these provisional
amounts associated with the Act will not have a material impact to the
financial condition or results of operations of the Company. During the
year ended December 31, 2017, the Company adopted ASU 2016-09
"Compensation-Stock Compensation (Topic 718): Improvements to Employee
Share-Based Payment Accounting" which due to the exercise of stock
options in the current period, resulted in the recognition of $807,000
in excess tax benefits. The effective tax rate for the year ended
December 31, 2017 was 41.11% compared to 31.30% for the year ended
December 31, 2016.

Quarter Ended December 31, 2017

For the quarter ended December 31, 2017, the Company reported unaudited
consolidated net income of $335,000 and earnings per diluted common
share of $0.02, compared to consolidated net income of $2,606,000 and
$0.21 per diluted share for the same period in 2016. The decrease in net
income during the fourth quarter of 2017 compared to the same period in
2016 was primarily due to an increase in the provision for income taxes
of $2,572,000, an increase in total non-interest expenses of $2,196,000,
and a decrease in non-interest income of $297,000, partially offset by
an increase in net interest income of $2,794,000. The effective tax rate
increased to 92.38% from 36.41% for the quarters ended December 31, 2017
and December 31, 2016, respectively, primarily due to the one-time
adjustment to deferred taxes of $3,535,000 due to the prospective change
in the marginal 2018 federal tax rate from 35% to 21%. Net income for
the immediately trailing quarter ended September 30, 2017 was
$4,494,000, or $0.36 per diluted common share.

Annualized return on average equity (ROE) for the fourth quarter of 2017
was 0.64%, compared to 6.19% for the same period of 2016. The decrease
in ROE reflects a decrease in net income, and an increase in
shareholders' equity. Annualized return on average assets (ROA) was
0.08% for the fourth quarter of 2017 compared to 0.72% for the same
period in 2016. This decrease is due to a decrease in net income and an
increase in average assets. The one-time deferred tax asset revaluation
expense of $3.54 million negatively impacted the Company's ROE and ROA
for the fourth quarter of 2017.

In comparing the fourth quarter of 2017 to the fourth quarter of 2016,
average total loans increased by $144,924,000, or 19.44%. The majority
of the loan growth was due to the FLB acquisition. During the fourth
quarter of 2017, the Company recorded net loan charge-offs of $138,000
compared to net recoveries of $27,000 for the same period in 2016. The
net charge-off (recovery) ratio, which reflects annualized net
charge-offs to average loans, was 0.06% for the quarter ended
December 31, 2017 compared to (0.01)% for the quarter ended December 31,
2016.

Average total deposits for the fourth quarter of 2017 increased
$141,099,000 or 11.16% to $1,405,879,000 compared to $1,264,780,000 for
the same period of 2016, primarily due to the FLB acquisition. In
comparing the fourth quarter of 2017 to the fourth quarter of 2016,
average borrowed funds increased $2,922,000 or 56.58% to $8,086,000
compared to $5,164,000.

The Company's net interest margin (fully tax equivalent basis) was 4.38%
for the quarter ended December 31, 2017, compared to 4.20% for the
quarter ended December 31, 2016. Net interest income, before provision
for credit losses, increased $2,794,000, or 21.87%, to $15,567,000 for
the fourth quarter of 2017, compared to $12,773,000 for the same period
in 2016. The accretion of the loan marks on acquired loans increased
interest income by $242,000 and $924,000 during the quarters ended
December 31, 2017 and 2016, respectively. Net interest income during the
fourth quarters of 2017 and 2016 benefited by approximately $96,000 and
$85,000, respectively, from prepayment penalties and payoff of loans
previously on nonaccrual status. The net interest margin
period-to-period comparisons were impacted by an increase in the yield
on the average investment securities and the loan portfolio. Over the
same periods, the cost of total deposits decreased to 0.08% from 0.09%.
The decrease in cost of total deposits is attributed to the decrease of
time certificate deposit with cost yield of 0.24% compared to 0.40% as
of December 31, 2017 and 2016, respectively.

For the quarter ended December 31, 2017, the Company's average
investment securities, including interest-earning deposits in other
banks and Federal funds sold, increased by $21,025,000, or 3.60%,
compared to the quarter ended December 31, 2016, and increased by
$73,848,000, or 13.88%, compared to the quarter ended September 30, 2017.

The effective yield on average investment securities, including interest
earning deposits in other banks and Federal funds sold, increased to
2.91% for the quarter ended December 31, 2017, compared to 2.85% for the
quarter ended December 31, 2016 and decreased as compared to 3.15% for
the quarter ended September 30, 2017. Total average loans, which
generally yield higher rates than investment securities, increased by
$144,924,000 to $890,351,000 for the quarter ended December 31, 2017,
from $745,427,000 for the quarter ended December 31, 2016 and increased
by $119,574,000 from $770,777,000 for the quarter ended September 30,
2017. The effective yield on average loans was 5.48% for the quarter
ended December 31, 2017, compared to 5.27% and 5.39% for the quarters
ended December 31, 2016 and September 30, 2017, respectively.

Total average assets for the quarter ended December 31, 2017 were
$1,644,685,000 compared to $1,454,412,000 for the quarter ended
December 31, 2016 and $1,427,070,000 for the quarter ended September 30,
2017, an increase of $190,273,000 and $217,615,000, or 13.08% and
15.25%, respectively.

Total average deposits increased $141,099,000, or 11.16%, to
$1,405,879,000 for the quarter ended December 31, 2017, compared to
$1,264,780,000 for the quarter ended December 31, 2016. Total average
deposits increased $182,954,000, or 14.96%, for the quarter ended
December 31, 2017, compared to $1,222,925,000 for the quarter ended
September 30, 2017. The Company's ratio of average non-interest bearing
deposits to total deposits was 40.40% for the quarter ended December 31,
2017, compared to 37.70% and 39.92% for the quarters ended December 31,
2016 and September 30, 2017, respectively.

Non-interest income decreased $297,000, or 13.27%, to $1,941,000 for the
fourth quarter of 2017 compared to $2,238,000 for the same period in
2016. For the quarter ended December 31, 2017, FHLB dividends decreased
$195,000, loan placement fees decreased $111,000, and service charge
income decreased $27,000, offset by an increase of $59,000 in
interchange fees compared to the same period in 2016. The fourth quarter
2017 non-interest income included $6,000 net realized losses on sales
and calls of investment securities compared to $84,000 net realized
gains for the same period in 2016. Non-interest income for the quarter
ended December 31, 2017 decreased by $613,000 to $1,941,000, compared to
$2,554,000 for the quarter ended September 30, 2017. The decrease
compared to the trailing quarter was primarily due to a $175,000
decrease in net realized gains on sales and calls of investment
securities, and a $391,000 decrease in other income, partially offset by
a $23,000 increase in FHLB dividends and a $3,000 increase in service
charges. The decrease in other income as compared to the quarter ended
September 30, 2017 was a result of recoveries on favorable legal
settlements in the trailing quarter.

Non-interest expense for the quarter ended December 31, 2017 increased
$2,196,000, or 20.12%, to $13,109,000 compared to $10,913,000 for the
quarter ended December 31, 2016. The net increase quarter over quarter
was a result of an increase in salaries and employee benefits of
$1,298,000, a $118,000 increase in professional services, a $85,000
increase in license and maintenance contract expense, an increase in
directors' expenses of $49,000, an increase in personnel expenses of
$63,000, and an increase of $46,000 in amortization of core deposit
intangibles, partially offset by a decrease in data processing expenses
of $72,000, a decrease in acquisition and integration expenses of
$56,000, and a decrease of $3,000 in regulatory assessments.

Non-interest expense for the quarter ended December 31, 2017 increased
by $2,715,000 compared to $10,394,000 for the trailing quarter ended
September 30, 2017. The increase compared to the trailing quarter was
primarily due to a $1,048,000 increase in acquisition and integration
expenses, a $885,000 increase in salaries and employee benefits, a
$224,000 increase in occupancy and equipment expense, a $40,000 increase
in license and maintenance contracts, and a $9,000 increase in
regulatory assessment expenses, partially offset by a decrease of
$30,000 in directors' expenses.

The Company recorded an income tax provision of $4,064,000 for the
quarter ended December 31, 2017, compared to $1,492,000 for the quarter
ended December 31, 2016. As a result of the enactment of the Tax Cuts
and Jobs Act during the fourth quarter of 2017, the federal tax rate
applied to the Company's deferred taxes was adjusted to reflect the 2018
tax rates (the rates at which the deferred tax items are expected to
reverse). The change to the tax rates (including the rate change applied
to deferred taxes reflected in other comprehensive income) resulted in
an increase to the Company's tax provision of $3,535,000. During the
year ended December 31, 2017, the Company adopted ASU 2016-09
"Compensation-Stock Compensation (Topic 718): Improvements to Employee
Share-Based Payment Accounting" which due to the exercise of stock
options in the quarter ended December 31, 2017, resulted in the
recognition of $703,000 in excess tax benefits. The effective tax rate
for the quarter ended December 31, 2017 was 92.38% compared to 36.41%
for the same period in 2016.

Branch Consolidation

The Board of Directors of the Company has authorized management to
consolidate the operations of two branch offices into neighboring branch
offices of the Bank during the second quarter of 2018. The Caldwell
office in Visalia, California, is expected to be consolidated into the
nearby Floral office which on April 20, 2018. The Folsom Prairie City
office is expected to be consolidated into the Folsom Sutter Street
office on May 11, 2018. As both neighboring branches are within two to
three miles of the branches being consolidated, management expects to be
able to continue to provide superior customer service to all customers
in the affected markets.

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
24 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 (Lead
Independent Director), Edwin S. Darden, Jr., F. T. "Tommy" Elliott, IV,
James M. Ford, Robert J. Flautt, Gary D. Gall, Steven D. McDonald, Louis
C. McMurray, Karen Musson, 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. All statements
contained herein that are not historical facts, such as statements
regarding the Company's current business strategy and the Company's
plans for future development and operations, are based upon current
expectations. 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, a decline in economic conditions at the international, national
or local level on the Company's results of operations, the Company's
ability to continue its internal growth at historical rates, the
Company's ability to maintain its net interest margin, and the quality
of the Company's earning assets; (3) changes in the regulatory
environment; (4) fluctuations in the real estate market; (5) changes in
business conditions and inflation; (6) changes in securities markets; (7)
the expected cost savings, synergies and other financial benefits for
the acquisition of Folsom Lake Bank might not be realized within the
expected time frames or at all; and (8) the other risks set forth in the
Company's reports filed with the Securities and Exchange Commission
("SEC"), including its Annual Report on Form 10-K for the year ended
December 31, 2016. 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)

 
December 31, September 30, December 31,
(In thousands, except share amounts) 2017 2017 2016
 
ASSETS
Cash and due from banks $ 38,286 $ 26,195 $ 28,185
Interest-earning deposits in other banks 62,080 9,494 10,368
Federal funds sold 17     15
Total cash and cash equivalents 100,383 35,689 38,568
Available-for-sale investment securities (Amortized cost of
$538,692, $507,477 and $548,640 at December 31, 2017, September
30,2017, and December 31, 2016, respectively)
542,704 515,077 547,749
Loans, less allowance for credit losses of $8,778, $8,916 and $9,326
at December 31, 2017, September 30, 2017, and December 31, 2016,
respectively
891,901 769,810 747,302
Bank premises and equipment, net 9,398 8,920 9,407
Bank owned life insurance 27,807 23,639 23,189
Federal Home Loan Bank stock 6,843 5,594 5,594
Goodwill 53,777 40,311 40,231
Core deposit intangibles 3,027 1,243 1,383
Accrued interest receivable and other assets 25,815   22,743   29,900
Total assets $ 1,661,655   $ 1,423,026   $ 1,443,323
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 585,039 $ 494,364 $ 495,815
Interest bearing 840,648   724,021   760,164
Total deposits 1,425,687 1,218,385 1,255,979
Short-term borrowings 400
Junior subordinated deferrable interest debentures 5,155 5,155 5,155
Accrued interest payable and other liabilities 21,254   18,254   17,756
Total liabilities 1,452,096   1,241,794   1,279,290
Commitments and contingencies
Shareholders' equity:
Total shareholders' equity 209,559   181,232   164,033
Total liabilities and shareholders' equity $ 1,661,655   $ 1,423,026   $ 1,443,323
 
   

CENTRAL VALLEY COMMUNITY BANCORP

CONSOLIDATED INCOME STATEMENTS

(Unaudited)

 
For the Three Months Ended, For the Years Ended
December 31,   September 30,   December 31, December 31,
(In thousands, except share and per share amounts) 2017 2017 2016 2017   2016
INTEREST INCOME:
Interest and fees on loans $ 12,247 $ 10,423 $ 9,843 $ 43,534 $ 34,051
Interest on deposits in other banks 220 53 78 424 289
Interest and dividends on investment securities:
Taxable 1,962 1,818 1,390 6,526 5,876
Exempt from Federal income taxes 1,464   1,531   1,780   6,892   6,460  
Total interest income 15,893   13,825   13,091   57,376   46,676  
INTEREST EXPENSE:
Interest on deposits 279 200 285 969 975

Interest on junior subordinated deferrable interest debentures

39 39 33 147 121
Other 8   8     21    
Total interest expense 326   247   318   1,137   1,096  
Net interest income before provision for credit losses 15,567 13,578 12,773 56,239 45,580
(REVERSAL OF) PROVISION FOR CREDIT LOSSES   (900 )   (1,150 ) (5,850 )
Net interest income after provision for credit losses 15,567   14,478   12,773   57,389   51,430  
NON-INTEREST INCOME:
Service charges 768 765 795 3,053 2,849
Appreciation in cash surrender value of bank owned life insurance 171 150 148 621 558
Interchange fees 383 378 324 1,458 1,228
Loan placement fees 180 279 291 706 1,083
Net realized gains on sales and calls of investment securities (6 ) 169 84 2,802 1,920
Other-than-temporary impairment loss on investment securities (136 )
Federal Home Loan Bank dividends 121 98 316 443 630
Other income 324   715   280   1,753   1,459  
Total non-interest income 1,941   2,554   2,238   10,836   9,591  
NON-INTEREST EXPENSES:
Salaries and employee benefits 6,874 5,989 5,576 24,738 21,881
Occupancy and equipment 1,510 1,286 1,243 5,186 4,754
Acquisition and integration expenses 1,211 163 1,267 1,828 1,782
Professional services 405 258 287 1,509 1,258
Data processing expense 490 407 562 1,740 1,707
Directors' expenses 105 135 56 597 530
ATM/Debit card expenses 197 216 163 750 633
License & maintenance contracts 228 188 143 818 531
Regulatory assessments 170 161 173 652 642
Advertising 154 154 132 638 576
Internet banking expenses 182 181 181 705 678
Amortization of core deposit intangibles 93 47 47 234 149
Other expense 1,490   1,209   1,083   5,011   3,801  
Total non-interest expenses 13,109   10,394   10,913   44,406   38,922  
Income before provision for income taxes 4,399 6,638 4,098 23,819 22,099
PROVISION FOR INCOME TAXES 4,064   2,144   1,492   9,793   6,917  
Net income $ 335   $ 4,494   $ 2,606   $ 14,026   $ 15,182  
Net income per common share:
Basic earnings per common share $ 0.02   0.37   $ 0.21   $ 1.12   $ 1.34  
Weighted average common shares used in basic computation 13,533,677   12,208,313   12,129,490   12,472,095   11,331,166  
Diluted earnings per common share $ 0.02   0.36   $ 0.21   $ 1.10   $ 1.33  
Weighted average common shares used in diluted computation 13,730,434   12,325,254   12,254,292   12,722,350   11,435,449  
Cash dividends per common share $ 0.06   $ 0.06   $ 0.06   $ 0.24   $ 0.24  
 
         

CENTRAL VALLEY COMMUNITY BANCORP

CONDENSED CONSOLIDATED INCOME STATEMENTS

(Unaudited)

 
Dec. 31 Sep. 30, Jun. 30, Mar. 31, Dec. 31,
For the three months ended 2017 2017 2017 2017 2016
(In thousands, except share and per share amounts)
Net interest income $ 15,567 $ 13,578 $ 13,786 $ 13,308 $ 12,773
(Reversal of) provision for credit losses   (900 ) (150 ) (100 )
Net interest income after provision for credit losses 15,567 14,478 13,936 13,408 12,773
Total non-interest income 1,941 2,554 4,096 2,246 2,238
Total non-interest expense 13,109 10,394 10,789 10,113 10,913
Provision for income taxes 4,064   2,144   2,295   1,291   1,492
Net income $ 335   $ 4,494   $ 4,948   $ 4,250   $ 2,606
Basic earnings per common share $ 0.02   $ 0.37   $ 0.41   $ 0.35   $ 0.21
Weighted average common shares used in basic computation 13,533,677   12,208,313   12,207,570   12,167,810   12,129,490
Diluted earnings per common share $ 0.02   $ 0.36   $ 0.40   $ 0.35   $ 0.21
Weighted average common shares used in diluted computation 13,730,434   12,325,254   12,338,884   12,317,579   12,254,292
 
         

CENTRAL VALLEY COMMUNITY BANCORP

SELECTED RATIOS

(Unaudited)

 
Dec. 31, Sep. 30, Jun. 30, Mar. 31, Dec. 31,
As of and for the three months ended 2017 2017 2017 2017 2016
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans 0.97 % 1.14 % 1.21 % 1.21 % 1.23 %
Non-performing assets to total assets 0.18 % 0.22 % 0.23 % 0.23 % 0.18 %
Total non-performing assets $ 2,945 $ 3,162 $ 3,293 $ 3,341 $ 2,542
Total nonaccrual loans $ 2,875 $ 2,968 $ 3,099 $ 3,079 $ 2,180
Net loan charge-offs (recoveries) $ 138 $ (519 ) $ (233 ) $ 12 $ (27 )
Net charge-offs (recoveries) to average loans (annualized) 0.06 % (0.27 )% (0.12 )% 0.01 % (0.01 )%
Book value per share $ 15.30 $ 14.84 $ 14.51 $ 13.95 $ 13.51
Tangible book value per share $ 11.15 $ 11.44 $ 11.10 $ 10.53 $ 10.08
Tangible common equity $ 152,755 $ 139,678 $ 135,567 $ 128,481 $ 122,419
Cost of total deposits 0.08 % 0.06 % 0.08 % 0.08 % 0.09 %
Interest and dividends on investment securities exempt from Federal
income taxes
$ 1,464 $ 1,531 $ 1,775 $ 2,122 $ 1,780
Net interest margin (calculated on a fully tax equivalent basis) (1) 4.38 % 4.43 % 4.48 % 4.36 % 4.20 %
Return on average assets (2) 0.08 % 1.26 % 1.37 % 1.17 % 0.72 %
Return on average equity (2) 0.64 % 10.05 % 11.41 % 10.20 % 6.19 %
Loan to deposit ratio 63.18 % 63.91 % 61.75 % 60.32 % 60.24 %
Tier 1 leverage - Bancorp 9.71 % 9.86 % 9.43 % 9.01 % 8.75 %
Tier 1 leverage - Bank 9.46 % 9.76 % 9.33 % 8.92 % 8.64 %
Common equity tier 1 - Bancorp 12.90 % 13.09 % 12.92 % 12.54 % 12.48 %
Common equity tier 1 - Bank 12.96 % 13.35 % 13.17 % 12.80 % 12.59 %
Tier 1 risk-based capital - Bancorp 13.28 % 13.48 % 13.31 % 12.93 % 12.74 %
Tier 1 risk-based capital - Bank 12.96 % 13.35 % 13.17 % 12.80 % 12.59 %
Total risk-based capital - Bancorp 14.07 % 14.39 % 14.27 % 13.89 % 13.72 %
Total risk based capital - Bank 13.74 % 14.26 % 14.14 % 13.76 % 13.57 %
(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 Years Ended
AVERAGE AMOUNTS December 31,   September 30,   December 31, December 31,   December 31,
(Dollars in thousands) 2017 2017 2016 2017 2016
Federal funds sold $ 7 $ 87 $ 16 $ 35 $ 116
Interest-bearing deposits in other banks 64,830 16,316 53,220 36,709 53,514
Investments 540,937 515,523 531,513 531,682 507,230
Loans (1) 887,374 767,770 743,612 790,504 644,282
Federal Home Loan Bank stock 6,843   5,594   5,284   5,909   4,940  
Earning assets 1,499,991 1,305,290 1,333,645 1,364,839 1,210,082
Allowance for credit losses (8,910 ) (9,382 ) (9,339 ) (9,258 ) (10,098 )
Nonaccrual loans 2,977 3,007 1,815 2,839 2,291
Other non-earning assets 150,627   128,155   128,291   133,276   118,732  
Total assets $ 1,644,685   $ 1,427,070   $ 1,454,412   $ 1,491,696   $ 1,321,007  
 
Interest bearing deposits $ 837,904 $ 734,679 $ 787,983 $ 784,318 $ 727,080
Other borrowings 8,086   7,297   5,164   6,930   5,157  
Total interest-bearing liabilities 845,990   741,976   793,147   791,248   732,237  
Non-interest bearing demand deposits 567,975 488,246 476,797 499,987 417,151
Non-interest bearing liabilities 20,047   18,075   15,917   17,954   17,294  
Total liabilities 1,434,012   1,248,297   1,285,861   1,309,189   1,166,682  
Total equity 210,673   178,773   168,551   182,507     154,325  
Total liabilities and equity $ 1,644,685   $ 1,427,070   $ 1,454,412   $ 1,491,696   $ 1,321,007  
 
AVERAGE RATES                    
Federal funds sold 1.50 % 1.25 % 0.54 % 1.50 % 0.51 %
Interest-earning deposits in other banks 1.36 % 1.30 % 0.59 % 1.16 % 0.54 %
Investments 3.09 % 3.21 % 3.08 % 3.19 % 3.09 %
Loans (3) 5.48 % 5.39 % 5.27 % 5.51 % 5.29 %
Earning assets 4.47 % 4.51 % 4.30 % 4.50 % 4.18 %
Interest-bearing deposits 0.13 % 0.11 % 0.14 % 0.12 % 0.13 %
Other borrowings 2.33 % 2.58 % 2.56 % 2.42 % 2.35 %
Total interest-bearing liabilities 0.15 % 0.13 % 0.16 % 0.14 % 0.15 %
Net interest margin (calculated on a fully tax equivalent basis) (2) 4.38 % 4.43 % 4.20 % 4.41 % 4.09 %
(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 $754,
$789, and $917, for the three months ended December 31, 2017,
September 30, 2017, and December 31, 2016, respectively. The Federal
tax benefits relating to income earned on municipal bonds totaled
$3,551 and $3,327 for the year ended December 31, 2017 and 2016,
respectively.
(3) Loan yield includes loan fees (costs) for the three months ended
December 31, 2017, September 30, 2017, and December 31, 2016 of
$264, $(49), and $165, respectively. Loan yield includes loan fees
(costs) for the year ended December 31, 2017 and 2016 of $684, and
$134, respectively.

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