More annual reports from Central Valley Community Bancorp:
2021 ReportPeers and competitors of Central Valley Community Bancorp:
Oak Valley Bancorp The year 2003 will be remembered as
a year of continued success for Central
Valley Community Bancorp, and a year
of continued growth for our primary
subsidiary, Central Valley Community Bank.
We are grateful for the trust and support
given to us by the communities we
serve. We consider it a privilege to give
something back to those communities
- namely, financial support for the many
charities, philanthropies, programs and
events that add so much to the quality of
life we all enjoy.
Serving our communities is more than
just our responsibility, it’s our passion
- something we are both honored and
humbled to do. The greatest reward for
serving? The opportunity to serve even
more. That’s what we intend to do, in
2004 and beyond.
Central Valle
Communi&
Bancorp
Good Decisions Bearing Fruit
As you review o u r annual report and performmce for 2003, we Mieve yc-)u’ll find that Central Valley Cmirricrnity
Hancorp has sut:ceeded in providing shareholdc?r value and iiieeting the needs o f tlie coriimunities we serve. A
record year in earnings arid growth, 2003 will be rcrriciribcrcd as the year we began to enjoy the lxnefits of c)ur
past strategic clecisioiis, inclucling tlic Bank’s 2002 name change to Central Valley Community Hank, expanding
our Central Valley geographic coverage with tlic cstablislirncnt o f two hranch offices in Siicnirnento and Kermm,
arid the r.elocation/expansinn of two Frcsno-lxtsed offices. O u r perforri1:ince in 2003 is evidence t1i:it our strategic
dccisioris arc paying off.
Shareholders Celebrate
2005 p,r.oved to be another great ywr t o be ;I Central Vdley (hiimunity kincwrp shlireliolder, as our stork
price increased 54% over the previous year-cnd price. This follows two successive years of stock appreciation
in cxccss ol 40%. In fact, our stoch outperformed tlic Stanclard & Poors 500, the Standard & Poors Bank Index
and the NASDAQ Bank Index for this saiiie period. As a sector, coiiiriicinity arid rcgional bank stocks have
ocrtperfwiiiecl thc iiiarket in the recent past, and Central Valley Coiriiiicinity Baricorp stock lias outpcrlc)rinccl
cvcri this thriving sectc)r. In addition, our cliliitccl earnings per share was $ I , I (I per diluted h r c , a 17%) increase
(3vcr 2002, rctiirii on average assets was 1.10% arid return on avcragc equity was 13.230/0 for 2005.
Elfcctivc March 4, 2004, Central Wley Coiiiiriiiiiity Baiicorp was accepted to be listed on the NASDAQ, thus
enabling sliarcbolders to buy and sell stock froiii a wider soiircc of brokerage firms. We lxlicvc this opportunity
is anotlier milestone in the growth o f the Conipmy and will create aclclitional sliareholcler value by provieling
inore liquidily in tlie Company’s common stock.
Growth In Quantity And Quality
Ceiilral Valley Coniiriunity B:incorp’s rilain subsicliary, Central kdey Community Bank, experimcecl growth in
all hilancial cakgories in 2003, both in quantity and quality. Net consolidated earnings lor the year grew hy
2196, average assets grew hy 2394, averagc riet loans grew by 18% and average deposits grew by 27%. We arc
proucl of our firiaricial results, and eqcrally proud of the c l d i t y of our earning assets, ;is cleirioiistratecl by very
low levels o f non-perforiiiing assets and virtually no net charge-ofis frorn loans - both inc1ic:itions tllat the Bank
continues t o operate with a very solid found:ition. ’l‘lie Bank 1 ~ s
:ilso Iielcl the line on expenses in 2003. With
the exception of salaries, benefits :ind rekited expenses, all otlier expenses remained flat in 2003 for the third
consecutive ywr. These positive rcsiilts 1i:lvc all lxen achieved in the lowest interest rate environnient in four
dec:ides, which 1i:is cre:ited unique challenges and downward pressure o n our net interest margin.
Smart Expansion
In 2003, o c ~ r priinary f o c u s was on incre:ising the num1)er of 1,otli 1)usinesse.s ;ind consuiner Iiouseholcls
wrved by the Bank, as well as increasing tlie nuinl)er of services we provide t o our customers. We achieved
this tlirougli our outst:inding employees :ind our exp’ande‘d geographic service area. Addition;illy, the k i n k
consolidated :incl re1oc:ited its :idministrative 1ieadqu:irters in order t o :iccoinmodate the space needed t o expand
o u r Centralized Branch Support Center. All four o f o u r new locations :ire now sliowing a profit :ind offering
fiirtlier opportunities for growth.
ongoing upgrades t o o w systems enhance ow cornpliance wjth repilatory changcs, assure tlie safety arid
priviicy o f o u r customers’ inform:ition :ind enhance our growing line of products. As the Hank grows, so do
additional regu1:itory dem:inds :IS we :ire now considered :I “large” b m k under Fl>TC guidelines. Hut n o matter
how “1:irge” tlic Bank t,ecoiries, our numt)er-one objective is a1w:iys t o deliver services in the same responsive,
coiriiiiunity bank iiioclel tllat llas scrslained LIS for 24 years.
2
Leadership For A Changing Market
While Central Valley Conimunity k i n k scrvcs rrlarkets :is h r north as Sacraniento, tlie Fresno County arca has
considered tlie Hank's basc region. This area has facccl several econoriiic challcngcs, :md the
1iistoric:illy 1 ~ ~ n
Bank continues to adclress them. The construction and real estate industries saw growth in 2003, fuclccl largely
hy low intercst rates m c l Iiigh housing clcniancl. Major real estate projects sucli ;is the Save Mart Ccnter, the
Tnternal Rcvcnuc Services building ancl the Federal Courthouse - as well :is I-msiness owners takiiig advantage o f
the low rates - llave kept the construction tr;ides l~usy. Tlic agriculturd segment showccl soiiie improvement jn
crop prices, yields :ind demand, but overall the industry remains challenged.
Fresno County's popii1:ition has grown dr:ttx~tically in recent ycars, :ind tllat trend is expcctcd to continue.
While popu1:ition growth can provide lxncfits to a centrally located comniunity, there is evidrncc that Fresno's
unemploymrnt rate (wli~cli h s run in the 14% range for over a decaclt.) could tie cause for future concern. '1'0
deal with tliesc clxillenges, r h k imnagcment is active in leadership roles in :i numher o f coiiinimity initiatives
designed to address the region's critical issues and stiinu1;tte job growth.
Outstanding Employees
While the growth of Ceiitral Valley Community Bank llas tieen exemplary in recent years, the impwtancc of
retaining key employees aiid customers will coiitiriiic to he a priority and 3 challcnge in 2004. O u r cornrxiitnicnt
to conqxtitive conipens:ition, training and career growth llas emhled Lis to Littract arid retain :in outstmding
teain of prc)fcssionals, and build a strong, positive culture within our Compny. We Ixlicvc this will help u s
succeed, as our key competitive advantage is o w team of employees who :ire focused on cloing the right thing
for the customer :ind providing a high level o f personal service.
Our top-perforilling employees are recogni7ed cach year in the Circle of Excellcricc. 1:roni tliis group, the best
are named to the Circle 01 Elite. In 2003, Circle of Elite member\ inchiclecl: Diane H:imp, Vice Presiclent, Loan
Service M:indgcr; Tim I larris, Vice Presiclcnt, Private kinking Manager; Lesley Lang-I,ope7, Vice President, ST3A
M m a g e r ; Steve Morales, Vice President, Inlormation Systrnis Manager; Jemnine Welton, Vice President, 13~inc.h
M:inager; and Carol Worstein, Vice President, Sirlall Uusiness 1 )evelopnient Officer.
Looking Forward
As we look ahe:id to 2004, we believe the persistent low interest rate environment will cre:ite challenges for
increasing net interest incoiiie. In 2003, we experienced deposit growth 01 32% over the previous year - by
comparison, the Fresno County market grew clcposits by 11%1 and tlie statc grew by 15% in the sainc period. 'lhe
irlarket is I)ewiiiiiig more coiiipetitive, and we have already seen aggressive t,elow-m:irket pricing on loms and
a bove-market pricing on elelmsits from sonic of o u r competitors. Still, wc believe the Hank is positioned t o be
very competitive in 2004. '1'0 h i t end, the Bank llas signed ;I lcasc to open a I)r:inch office in ;I new conimercial
hiilding in the heart of 1:resno's revitalized Downtown. Likewise, we are coilsidering mother braiicli office site
in Clovis. While it is unlikely tllat either location will be open before year-end 2004, we Ixlievc the Bank is well-
positioned to competc with other hmks planning to open new offices in our p i m i r y imrket.
A Productive Year, A Positive Outlook
As we close the books on 2003, we enter 2004 with nlomentum, enthusiasiri :md expect:itions of continued
success. The k i n k has begun its 25th ye:ir o f operation - a milestone that could not have heen acliicvccl without
the suppor-t o f our customers, employccs, sharellolders, directors ancl conmninity. We arc tnily gr:iteful for the
trust and encourxgcnient you have demonstrated through the years. Kest :issured, we will work t o earn your
continued confidence every day, in everything we do.
-wL
Daniel N . Cunningham
Chainnnn o f the 13o;it.d
l>anieI J. My~c
President and chicf Executive Officer
3
Dedication and Commitment
Central Valley Corninunity Bancorp (the “Conipany”) was estaldishcd on Novernber 15, 2000 ;is the lioldirig
compmy for Central W l e y Community Hank (the “Bank”) and is registered as :I bank holding company with the
Board o f Governors of the Federal Kcscrve System. ’lhc Company currently conducts no operation other t h l
tbrougli its ownership o f the B m k . The common stock of the Conipany trades on the NASDAQ under the
syrnbc )I cvc Y.
A History of Growth
Central Valley Coml-iicrnity Hank, founded in 1979 as Clovis Cornniunity Bank, is ;a California State chartered hank
with clcposjt accounts insured hy the Federal Deposit Insurance Corp(.)r:ition. Tlic Bank cotnmenccd operations
o n J:inu:iry 10, -1 980, in Clovis, California, with 12 professional lxmkers a n d twginning :Issets o f $2,000,000.
Currently, the Bank operates seven full-service offices in Clovis, Vresno, Prather, Kerrrlan and Sacramento, plus
Real Estite Lending, SHA Lending and Agribusiness Lciicling 1 kpartl-nents. Investment services are :ilso provided
by Investment Centers o f America. Now with over 125 cixiployees, assets of over $327,000,000 and over 14,000
customer households, Central Valley Coriimunity Bank h:is grown into a well-capit:ilizc:cl institution, will1
proven track record of financial strength, security arid st:ihility. Yet clcspite the Bank’s growth, it has renlained
true t o its origiml “roots” - a commitment t o tlic core values of integrity, trustwortliiness, (::iring, loyalty,
1e:idership and teamwork.
Ce t i t f:i 1 Valle y Communi t y Bank clis t ingu is hes i t self from
other financial institutions hy providing superior client
service a n d by renlaining independent since opening
24 years ago. In recent years, the f3ank lias cxpanded
its unique tmnd of pcrsondized service by expmding
its markets in tlic Central Xilley and opening new
administralive 1icadqu:irters h i t are better suited t o
growing the institution. C;uided by ;I hands-on board
of directors and a s1:
the Hiink continues t o focus on customer service :tnd
retention wliilc rcinaining connriittecl to the ongoing
a ddit i on ()f 1 iigli-qua lity e m pl‘lc )yew.
oned senior manager-nent t e ~ n ,
Ceiitral Vallcy ComiTiunity Bank Scnior Mmxgrrrieht from Irft t o right
Shirlry Willxit 11, Ihut.1 J Doyle, (;nylc Grdi:iiri, Gdiy C_)urwtibetry,
TI^^^^^^^^^ I. sorlllrirl
More Products, More Convenience Than Ever
Ckntral Va1lc.y Community Bank maintains st:ite-of-thc-art
c h i processing :ind inforination systems, and offers a cnmplete line 01 competitive hsincss and personal
deposit arid loan products. For maxii-nurn convenience, Personal and Business Internet Banking is av:iihblc at
www.cvcb.com and 24-ho~ir Auto~nated Teller Machines ( ATMs) are avaihble ;it most Central Valley Coinrnunity
kink ofliccs. Additionally, 24-hoiir telephone Lxinlring is :iv:iilal>le to provide custoirit”i acc
inforination, deposit and withdrawal history, interest earned o r paid and the ability t o tran
savings funds vi,i touch-tone phone throiigh kinkline.
“Relationship Banking” Means Service
The Hank is c‘oinmitted to increasing and enhyncing the products and services ollerecl to custmicrs, while
emph:isizing needs-hased consulting within the lxincli environment. Serving t d i new arid long-time
c‘ustomers continues t o lie a n importmt kictor in tlie 13:ink’s growth 3s eviclcncecl in ongoing customer referrals.
lkpendahle values :ind security have :ilways heen important to America’s banking ciistmricrs, and thc. Hanb
is well-positioned t o provide them, witli :in increased eiripkasis on privacy, security a r i d convenience. The
Hiink t:ikes protecting the privacy and security o f customer information very wrioiisly, as clerrionstratc-cl by :i
range o f exp‘anded oper:ition;il security 1ne:isures. These include specidized softwxe, procedures and lielpfd
customer tools like the Rank’s identity theft protection kit. All designed to give Central Valley Conimcinity Banh’s
customers iimxiirium protection anel peacc of iiiincl.
Central Valley Corriiriiinity Bmk offers investment services providecl b y liccnsccl rcprcscnta tivcs from tlic
Investment Centers of America. Tlic Bank’s Real Estate Department proviclcs coriiprclicnsivc proccssing of
rcsidentinl and commercial intcrirn constniction h m s , all types of single-family icsidential loans and other red-
estate related transactions. Thc Hank supports small business growth and comrnunity job crwtion, as evidenced
hy its certification in SHA’s Preferxd Lender Program, which allows for rapid loan response to local sinal1
business customers throughout the San Joaclirin Vallcy. Cciitral Valley Conimunity Hank has 13ccn recognized for
the fourth consecutive year :is being the top lcnclcr in the Sinall Husiness Administration 504 loan program in the
counties it serves. The Bank’s participation in progressive aricl specializccl lciicling programs for small businesses
in d l arcas of tlic Central Valley clenionstrates its c-mgoing commitment t o builcling :I stronger, liealtliier Valley
econoniy .
Ccntral Valley Comniunity Bank has h i l t a reput:ition for siiperior hanking service by offering personalized
“relationship banking” for tmsincsses, professionals, and individiials. Serving the tiiisincss conimrnity lias always
been a primary focus for Central Vallcy Coiriiiicinity Bank and tlic Bank contiiiircs to expand its coiriiiicrcial
banking team to enhance tlic level of service to even iiiore indiviclual ancl tiusincss custonicrs. This sector is
fiirthcr scrvcd hy courier stmice lor coniriiercial/t)iisiiless customers houglioiit Clovis, Fresno :mcl Sacraniento.
“Community”, It’s More Than Just the Bank’s Middle Name
At Central Valley Cornrnunity Hank, serving ;I coiriirilriiity iiicans more than just being in business there.
More than rneclting the tnatrrial needs of its people. It iricans investing tiriic, talent, and rcsoiirccs to makc ;7
community a strong :ind satisfying place to live. That’s a mlc the Hank talses very scrioiisly.
Which is why C:entr:il Eilley Community H a n k supports such ;I wide variety of 1oc:il charities, :igencies :ind
phi1:inthropies. From education:il c a i ~ s e s to disease rcsearch, the arts to the underprivileged, all are helped each
year by Central Eilley (.hriimiinity Hank. A n d not only witli tlic Hank’s financixl support, 1mt xlso with its people
who generously volunteer their time to serve these iniportant c;iiisc:s. Corritnunity is truly more than just the
H:i nk’s middle nmie I
$ 175.000
$150,000
$ 1 LO
$ I .ou
$0 no
$0.60
$0 20
00
$?50,000
$200,000
9 150,000
$100,000
$50,000
0
IO09 2000 2001 2002
2003
IOC)9 2000
2001 2002
2003
224.58%
135 .fiOo/il
96.85%
Note: Thy stock price perforrnrznce shown in tlic graphs a h v c should nol 1)c indicxlivc o f polential
fiitur'e 5tock price prrforrriarice.
rr;
0
0
N
1. J
v .,
5
r.
INTEREST LLYCOME:
Intcrcst and fccs Of1 loruns
I Intel-esl i m Frt1rr;il f u n d s sold
Interest m d clivitlcrrtls or1 invrslmrnl wcuritics:
T3xhlc
Excmpt from Pcclci-~d irii,i)iiir 1:1xrs
Total interest income
INTEREST EXPENSE:
Iiitereal o n ileixxils (Nolr 7 )
Other (Note 8 )
l h t a l interest expense
I
1
Net interest income bcforc provision for credit losses
PROVISION FOR CREDIT LOSSES (NOTE 3 )
Net Interest income after provkion for credit losses
NON-INT"1'
INCOME:
Srrvicr charges
Ikrilals lrorli rquiptnrnt Icwcd to othcrs (Note 4 )
Loan plnccmcnt lcca
Ne1 re:rlizrd giins on s:ilcs nrid c d k (-if invcallrienl sr('iit-itirs (Note 2)
Appreciation in cash aiiri-enilrr v ; ~ I w of insuruncc corntrwta ( N i ) l r 1.5)
Olhei- incotnc
krlarics and cmplnycc Iwl1elils ( N o l r u 3 ;ind 13)
Occupancy xid equipment ( Nolrs 5 ;ind 10)
L)cprcciation xid (rccluctioi) i n ) provision for :iIIowi~icc for I~)aaea
on rquipmcnt Ic~iscd tt-1 othcrs (Ni)re 41
Total non-interest income
NON-INTEREST EXPENSES:
(-)[her expenses (Noles 10 n n d 12)
I INCOME TAX EXPENSE (NOTE 9)
I Dilutcd earnings per share (Note 11)
Basic e a r n i n g p e r share (Note 11)
Nct income
Tootal non-interest cxpcnses
Income beforc income taxes
200s
2002
200~l
E
2,034
512
14,530
2,505
335
2.7"
I 1,808
1 1,808
1,922
I,094
3Ci-i
27
274
531
4,212
(1,232
1,231
377
3,545
11,988
4,032
1,248
$
B
B
2,784
1 0 8
1 0 2
$
$
$
I ,'"
754
14.370
2,004
280
2,290
12,hXO
12,08(1
2,2 I5
485
488
506
303
549
,i,546
7,152
1,570
202
3,425
12,355
4 ,87 I
I , 199
3,372
I 3 1
1 IO
1 I),j80
240
.5,47x
470
14,577
1,115
2.5
4,138
10,433
h2.5
9,810
1,137
1,441
201
4h8
199
1 , l X h
4,602
5,315
9so
I ,SO8
3,252
10,855
3,653
1,275
2,378
0 2
XO
$
$
E
Corrnotl Stock
shares
Amount
Rdalticd
Earllin!$4
Accumulated
Other
thnptclm&
CLOss) Incotiic
Shareholders' Comprehensive
Equity
Income
2,378
2,378 $
2,378
195
IO5
195
2,784
2,784 $
2,784
812
812
812
3,372
3,372 $
3,372
(735)
(735)
( 7 3 5 )
$
(1,084) s
831
s
349
I !)
470
28 1
2003
2 0 0 2
2001
,-
$
3,372
ri;
2,784
d
2378
CASH FLOWS FROM OI’EKATING ACTTVITW,S:
Net inconic
Atljuslmrnts to reconcile nCt inconic to net
(,;isti prwiclrd b y oprralinji :ictivitics:
I’rt)vision for- crrclit losscs
( Keclucl i( )n i ri ) pi-( )vi si( ) t i f o I- ;I Ilowancc for rcsicluul
losscs o n cquipmcnt leased to ollirrs
de itivrs1tiirti! srwrities
i c w m r i t i Gist1 surrender v:iluc of life insurmcc
I t
Net (irlcrcnsc) clccrasr in ac.c.i-iirt1 interest
rcccivnblc and othcr xscts
c ~ ~ u r c l
interest p:iy:iblc and
13cfcrrccl incornc raxes
N r t c;~sh pi-ovidrcl by operating :ictivitics
CASH FLOWS FROM INVESTWG ACI’IVITIES:
1’iirch;isrs o f svail;ihlr-for-s:ilc. invcstriicnt securities
I’r~ccccls lrorri sales or c:alls o t ;iv;ril;ihle-for-s:ilc invcstmcnt sccuritic:,
P~-ocrrels from maturity of av3ilal,lc-lr)lr-sale i n v e
1 rrp;iymcnts of availnblc-
hcaring clcposits in olhrr h n k s
Ne1 iti(w;~sc in loans
Purchases of prcmiscs u r l d eqitiptiien!
I’rocrrcls fi-om sale of rquipmcnt
I’ui-ch;isr of rcluipment lensed to others
I ’ r o c w t l s f r o n i s a l r o f rcluipmcnt Icsscd to others
r)eposita on singlr prrtnium cash sur
r vnluc life ir1suraric.r polic,irs
Net cash uscd in investing Lict
CASH FLOWS FROM FINANCLNG ACTIVITIES:
N r t iricwmr in drtri;1ncl, interest-bcnring and swings cleposila
Net incrcnsc (cIccr~3sc) in tiirie deposils
I’aytrienls on notes ~ ; I Y ; I I ~ L >
PrrJccccls frc)rri borrowings f
Rrpaymcnts to Fcdcral I lor1
( . h h p i c 1 lot- clividrnd;
ShLirc rcpurctiase ancl re1 i reri ie t i
Proceeds from cxcrcisc of stock optic-)rrs
l
Net cnsh provided by fmarlcing ai:! ivil ies
i n c~:tsIi and Kish rcluivalcnts
CASH AND CASH EQIJIVALENTS AT BEGINNING OF W
CASH AND CASH EQIJIVATJ?NTS AT END OF YFAR
SUPI’LEMENTAI. n1SC:I~OSURE OF CASH FLOW INPOKMATION:
Cash pLiicI cluring the yexr lot-:
Tntrrrst rxpcnsc
Inc.orrie laxzs
NON-CASH INVESTING ACTIVITIES:
Net changc in unrcalizecl g:iiti on ;iv;iil;i}.)~r-f[)i--
s;11e invcstmcnt securities
, ,
1 rmrsler ol‘ ecliiiptiirtit 1e;i;ecI t o others to assets
hclcl for 5:ile
NON-CASH FMANCLIYG A(~~TIVITIES:
Xix brncfit from stock options cxcrcixd
-rhe , . .
xcompnnying notes Lire x i integrd p t r ! o f l l i r s r finsncial stntcn~cnts
5.435
(65,192)
!I, I05
1,030
34,oso
(48.720)
40,743
S,48i
42.134
(1,151)
S6,482
35,331
2,327
1,080
( 1 , i i w
4,095
(35,559)
1,955
165
16,686
(wo)
(25,583)
( 1,858)
1 !)
21
(1,475)
(it(>. 12‘))
18,358
18,124
30,482
5
$
$
d
5
$
78
$
86
5.440
(24,455)
17,267
3,995
17,509
(S7,582)
(399)
(181)
16s
(447)
( 24,130)
15,158
(3,978)
(36)
5,t )I )I1
(2,000)
(490)
83
13.728
(4,053)
‘5,077
18,124
4,258
5.30
324
1 I 6
d
s
$
ri;
ri;
200%
Gross
Gross
Ainortizc.d
Ilnrcalizrtl Unrcalizccl
Gains
I.ossrs
( T n thousands)
Est ima tcd
M;irkrl
Vdue
R
880
s
11,505
1,117
41
(144,
45,194
1,015
4.548
B
74,991 S
2,977
s
( 2 4 5 ) $
77,723
2.
AVAILABLE-FOR-SALE INVESTMENT SEC:lJRITIES ((:ontiniicd )
Invest tricnl ,seciii-ilics with iiiirvdizcd losses
siiiiiiil:ii-i>,rcl ;ind chssifictl :iceorcling I O the clur:i!ion 01
foll C)WS!
Dccernbrr 31, 200.5 ;*re
the loss period L I ~
4. EQUIPMENT TEASEI) TO OTHEKS
6. ACCRUED INTEREST RE(:EIVABLE AND OTHER ASSETS
Fqriipriient It.asccl t(-) others consistc4 o f thr following:
Dcccr11bcr 31,
2003
2002
(1 t i thnusands)
9
653 9
( 6 1 5 )
3,102
(2,740)
(20.1)
$
38
$
24i1
interest rccc-iv;iblr
AZCCI~LICC~
Cash surrcndc.r v d u r of lifr iiisiii-xrii:t. (Note 13)
Net drfrt-1-et1 lax assets (Note 9 )
I'repaicl cxpcnscs
Fcclcr31 IIomc L o a n Lhnk slovk
C)thLY
$
(It1 rllousands I
1,239 $
5,879
803
287
572
64 1
1,207
5,581
419
221
650
730
Clxingcs in thc al1ow;inc.r f o r rrsitlu:+l losses were 3s fdlows:
~ a l a n c r , Ixginning o f y r x r
1.0sszs c.li:+i-getl 10 piwvision
(Kcductio~i i!i) provision
for d h w m c r incliidetl
in oper:itiorls
$
203 $
203 $
( 2 0 3 )
U;II:IW,
~ . I X I (.)I ye:+~-
$
-
$
203
$
10 I
( 1 )
I00
203
I)epre('ialion expcrisc totdccl $405,000, $977,000 and $1,208,001) for the
yc':irs cnclccl Dcccriihcr 31, 2005, 2001 ;i tic1 200 I ,
trrsprclivrly.
Minimum future rciikil inconic on operaling lrasrs for tlir yrar rntling
rkcclnbcr .31, 2001 is $,38,000.
5. BANK PREMISES AND EQUIPMENT
aiicl cquipmciit consistcad of thr following:
7. DEPOSITS
kivings
Money market
NOW ;icc(.)~iiils
'l'iiiir, $ i o o , o o i ~ or rriorc
'I'irrw, unclcr $100,000
L~cccmbcr 5 1,
200.3
2002
hritl
nuildings 2nd improvements
Furniture, fixturcs :ind rquipmml
Lc:ischold improvcmrnts
(1 t i thnusands)
9
250 9
1,161
3,440
1.734
250
1,185
3,145
1,515
$
9,421
$
8,877
lkcrnihrr .3 1 ,
2003
2002
$
16,888 5
71,382
44,547
25,980
3 4 , W
14,918
59,.3Y2
40,887
2 1,624
3 5,094
$
103,hZO
$
172,515
$
40,430
10,108
1,250
Interest expense rccojinizrd on iii~rres~-l)r;~ri
fdlowing:
t i # tlrposits consistccl nf the
Yc3r E11clccl Dccc111bcr 31,
2003
2002
(Ill l h o l l r a n ~ l ~ )
zoo 1
Sxvings
Money rnurkct
NOW accounts
Tiinr cri-lific.:rlrs 0 1 deposit
$
66 5
( 7 5 0
49
1,230
88 $
817
80
1,408
144
1,360
11')
2,486
$
z,OO4 $
2,303 $
4,115
8. SHORT-TERM OOKKOWINGS, LONG-TERM DEBT AND OTHER
BORKOWNG AKRANGEMENTS
Net del'crrrtl f3x :issets
4
80-3 $
419
$
$
1,258 s
280
$
1,538
I,l(l2 $
337
$
1.400
Incoiric tax cxprrisc
io. COMMITMENTS AND CONTINGENCIES
I
s4u
311
2 39
ISI
1h4
206
$
1,510
Thc L3;ink 1i:is lease rciicwnl options toi- ils branch f:icilitics and
:idiiiinislriilive offices 3s follows:
I.( )cation
1,r;iw Expimtion Dutc
k n r w a l Options
August 31, 2004
Lkceiiilxi- 1, 2005
Clovis - SHA
Clovis - Ik:d Estate
(levis - AdiiiiIiistration August 14, 2006
Clovis - Tr;iining
Fig C;:ii-tlen
Fig (hrclcn
Shaver Like
Kcrman
Sacramrn10
River P;I irk
Clovis - In-Slorc I3r:itnch July I , 2OO5
April -30, 2005
M:irch 15, LOO5
SrpIrlll1)er 1, 2010
M:iy 31, 2005
Scptcinhcr 30, 2004
April 30, 1007
March 31, 201 2
Two thrcAr-yrar Iri-rris
Two fivr-yrxr terms
* ,
I wo onc-year tcrms
Oiic thrcc-year Irrrtt
O n r five-year tertii
(.)ne eight-year term
One live-ycar tcrrn
'I'hrcc onc-yr;ll- l r l - l l l s
Onc fivr-yrw lei-nr
Two fivr-yeir leriiis
One fivr-yrxr term
Comiiiitiiic~nts lo rxlrrid credit
Jkttri-s 01. cwdit
$
$
91,409 9
1,180 $
65,21 1
1,177
Cntniiiitmcnts to exlriitl (,reelit consist pi-ii~~;ii-iIy o f iinl'utidcd sing1~~-
family rcsidrnli;il : t i i t 1 cotnmcrcid real rsl;ilr (~)ristr~iction
commei-(ill revolving 1inc.s uf ct-rdil. (:orirtructinn lonns :ire rs~dilishecl
u n d e r st:rricIxd undcnvri~ing gtiiclelirrcs :inel policies and ;irr sec-urccl hy
loans snrl
25,595 7.Wh $
22,236 8.iI'Hl
N c t inconic
$
3,372 $
2,784
$
2,378
24,509 7.5% $
2!4974 7.6%
Wrightrtl w e r ~ g r
sharcs oi.itsts nding
13,915 5.0%
N e t incnmr per share
11.1.52 4.0%
liilulecl Eirnings Per Shai-r:
N e t inc,nme
Weighted average
sl lares ( ) i i tskinding
2,586,352
2,585,433
2,504,332
1.30 $
1.08 $
.92
3,372 $
2,784
x
2,378
$
$
2,580,352
2,585,433
2,594,332
Effrct of dilutivc stock options
242,480
150,3 I O
84,298
2,XZX,83H
4 7 4 1,743
L,h78,h30
Stock (3aiions - During 1002, !he Hiink establisllcrl :L Stock Cjption J'lan
f o r which sh;ircs iirc resc~vrtl fol- ihsuaricc 10 cniployres ant! directors
under irlccnlivc ;ind nonstirtutory qqecmrnts. The C
:ill obligations rirldcl- this plan as of Noverilhrr 15, 2
1xm:hase shares of the (;ornp;iny's C O ~ I T I C ) ~ stock w
options t o piirchasc shares of coimnon stock of !lie
t1i:rt the oplion price irlay not be less thnn thc kiir miirkct valur o f the stc.)Ck
;II the d x c Ihc option is granted, and thal Ihc c.)ption price niusl be paid in
fill1 at the lirric jl is exercised. 'I'hc options untler the p h n cxpirc on dales
clcterrnined by ~ h c Hoard of Directors, but 1101 later than ICII years t
the
' r ~ i ~
daic of grant. 'The vesting period is deiermincd b y the Board of I)ircclors
:incl is gcnrrally ovci- five ycirs. ~ulstaIldiIkg option5 i i n d e ~ ~
the 1992 plan
3rc excrciaable until thrir cxpiration; howcvrr, no new options will b e
jirantcd Limier this plnn.
On Navrinbrr 15, 2000, the Comp:~riy ;itlopted, and subscquent!y
atnendcd on Lkccnit)cr 20, 2ooi), the Ceiiiral killcy Coinrnunjty Dancorp
2000 Stock Oplion I4an lor which (78(;,000 shiii.cs ;Ire rrservetl for issu;incc
t o employers and clireclors under incentive and nnnst;il utory agreemrnts.
25,595 11.7'%1 $
24.509 11.2% $
lj,101 6.004) $
8,713 4.0% $
28,020 12.8"I
$
26,934 12.3% $
18,549 lO.0wJ
14,830 8.0%
%lock Snlit - On jx1wiry 6, 2003, the (:nmpany rl'l'cctrd a twwfor-mr
stock splil. All per share,, slxirrs oulstancling and stock option (lata in the
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