More annual reports from Central Valley Community Bancorp:
2021 ReportPeers and competitors of Central Valley Community Bancorp:
Eagle Bancorp Montana Inc %
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As Ccntral Valley Community Rank
coinnieniol-atcs R qirarter-ccntury of succcss
:incl satishction, we're proud of h o w hr- the
Bank h s cmme. But we're wen more pro~rd
of continuing t o 1-crnaiii closc t o our core
v d u e s since 1980. Integrity. Trustworthiness.
Caring. L o y ~ It y . L e d er-ship. Te;irnwork.
At Centl-al killey Corninunity Llank, thcse
valires ;ire woven into the h h i c o f the way
tlw Hank does lmsincss. Tlwy dccpen o u r
comm i triient t o the coiiimu ni ty aroirnd us,
and chive LIS to comtmtly seek t o improve
it. And they provicle inspiration t o support
cha ritirs, progra ins m d cvc tits tlia t cri ha nce
the qL1:ility ol' life wvc all enjoy. 'I'hat's ;I
cornniitnient you can count on from Ccwtral
V d l e y Community Uank, f o r years t o ~mtiie.
P
Central Valle
Communi&
Bancorp
To Our Shareholders
A Success Story 25 Years In The Making
As your community lxink cclctxites 25 ye:irs in Inisincss, it is muzing how m i ~ : h has cliangccl since we opened
in 1980. From o i ~ r cxiginal 12-persvn team, tlic I3mk is now liomc t o ovcr 150 cniployees. Prom oiir single
Clovis office, w e now loc.)lc forw:ird to opening oiir tenth office in 2005. From oiir Iwginning nsscts of o n l y $2
million, the I3:ink's :issets now cxcced $/IS0 million. Fiwn our origind :tbility t o lend less than. $500,000, we can
now proviclc credit o f more than $7 niillion. 'I'lie kink's growtli lias truly Iwen rem:irk:iblc.
Yet, much remains the same :It (kntral Valley Col-1-iriiunity H:tnlc. Four ol' CNII- origind directors still serve on our
h):ird, while thrcc others 1i:ive servecl for uvei- 15 ye:trs. Tlir.ougliout our 25-year history, the Hank lias hac1 oiily
two (liief Executive Officers, providing :I scccire foundation i i pm wliicli t o grow. And o f the ~iic)rc tliari 30
Fresno Chiinty txinks :ind s:ivings-nncl-lc,ans opxiting when we opcnccl in 1980, only Central Valley Cotiitiicrtiity
k t
nk 11 :is riot changed ow nersli i I:, ,
In 1980, as tod:iy, the Hank has grown hy sewing tlic coiiiinunily :ind liclping the local ccononiy. We 1i:ive donc
this witli competitivta, liigli qiidity products ;inel services that I)uild long-term rclationships. 'l'lie Ikinlc has J x o
~~rovicled time- :ind inoncy-saving conveniences and niany other servic'rs t o the coniiiiiinities we serve.
A Solid Investment
Ownerdiip o f (:entr.;il Vallcy Coriirnunity H;incorp stwh has proven t o 1x~ '1 good invcstiiient, :is the (:ompiny
h s grown t o he l i w c l on the NASIIAC) rxcliangc. At h i \ writing, a n original irivrstnient o f $10,000 is now
v:iluecl
2004, the D o m i o f lhrcctors announcwl ;I $0 10 cash cliviclend on c0111~110~1 stock, py:itde t o sliarelioldcrs of
record on Jiuic 4, 2004 - yet mother way in whicli we :ire pleasc~l to iticrcase strareholder value.
:it approxini'itcly $268,000, not incliiclhig tlic irlany c:ih divid~vcls that w c i c p i c 1 tlirough the ye;ir.s. In
Milestones: Our First Acquisition and Continued Growth
The highlight ol' 2004 w:is the ;iccluisition o f h n l c o f Maclcra County, finalized Lifter the close of hisiness on
I>ecembcr 31, 2OO4. By bringing together IW O sinii1:ir hanlcing franchises and :I s1i;ired c:ultui'c o f cirswiiier
service, we cari iiieet the needs of custoniers in new inarlccts wliile providing cireer opportunities for
eiiiployccs. Tlic nierger :iddt.d ncw offices in M:idera and Oalrliurst, :is well as 3 temi o f ncw cmployees who
will coritiiiire to serve hotli new a r i d t.shl)lislied c:ustoincrs. Tlic Bank h:is suct:essfully compl
integr:ition axid we :ire excited d r o i i t the iniinecliate and fiituir bendits this acquisition will provide oiir Coiripany.
Tlic Bank's expansion is also taking p1:ic.e in 1)owntswii l?resno, where we await tlic opening o f o u r new o f f i c ~ ~
in tlic smiiiier o f 2005, allowing CIS t o inc'rt
this h c y district. We will also be relocating o u r Clovis M Herndon Tn-Store oU~-c tu :I new, expmded Save Mart
Siipcriil:irket 1oc:ition at Fnwlcr & Herndon Avenues.
c our local presence :ind contribute t o tlie economic. vitality of
Doing Our Part To Improve The Local Economy
With favorat+ long-term interest rates, the :irca's lioirsing and construc:tion trxlc did very well in 20C)4.
Likewise, it was :I hetter yew for ocir fitrm :ind agricii1tiir;iI customers, with geiicrnlly impi-oved crop prices in
tlic S:in Joaquin Valley. The niecli:in price o f homcs in this tnx+ket lias grown rapiclly in the last. two years,
a t one o f the highest paces in h e coimtry. Even witli I.li:it, this market is still m e o f tlie most affc)rclablc in
(hlifornia, and tlie popul:ition continues t o exceed tlic ;ivcla.gc growtli K i t e in the state, LTnfortunately, while the
cineriiploymcnt rate in lresno ( h i n t y impimved in the past year, it still remains in douhle digits. Tlic chllenge
fiicing this rcgjnn is t o provide meaiiingfiil ciireer opportimitics wtiilc increasing the level o f cclucatccl cinployres
in the workforce. To tlifit end, the Han-k is actively involved in several initiatives, such :is the Rcgiorial Jobs
Iniliative - :I pulAic./privatc partnership t o crcatc 30,000 new jobs ovcr tlic acxt five years.
2
Strong Performance Despite Obstacles
The first half o f ZOO4 providecl some challcngcs as interest wtcs were at their lowest Ic'vcl in over 40 years,
(Treating downward press~ire on o u r net interest iixirgin. In tlic second t i d f o f the ycar., w e s:iw improverncnt 3s
thc Federal Keserve Ixgan to incrc e interest r-atc's, aiicl likewise, improvc'incnt in oiir net consolidatcd earnings.
Tt appc;irs inierest Kites will continue t o move upward in the n e x term, which s1ic)iild provide for ;I more
t3vor.a hlc: rict interest margin and core earnings for 21)05.
Ovenll, 2004 was :I gre:it ye:ir, with xict conso1id:ited e;ir.nings increming l O ( X ) , (with a 36% increase in the fourth
qu:irter), average 1o:ins increasing .I 2?4, and a v e ~ i g e deposits incrc:ising 14?+ with nomintcrest k i r i n g deposits
itiiig 31% o f total :iver;igc deposits. bkjidly irxiportant w:is the HanIc's ability to niaintain :i high lcvcl
qidity in tlie loan prtf-c)lio with no net c:li;-trgc-c)ffs ~ O I - the ye:ir, and c'ncling the y e x with no iio~i-
pcrforining 1o:ins. As we ciitcr 2005, we will inhcrit a few non-performing loaiis froill TS:tnk of M a d c ~ i County,
h i t we will :ilso havc' tlic lwnefit o f :in increased Al1owanc:e for Crcdit Losses. We Ihelieve: the opportunities in
tliis new marlcct will allow LIS t o grow prolitaMy. And for the fifth ye:^ in :I row, the H a n k lias Iwen recognized
:is the :ires 1c:ackr in SBA 504 1o:ins.
Expanding lending rrlntionships within the Hank's 1)riiii:iry m:irlcct area continues to l7e :i nxijor focus. Likewise,
w e cxpecl to see inipr'ovcnicnt in the kink's cfficiciicy ratio in 2005, wliicli h s Iwen below o w peers in h e
p:ist. One o f the main rcasms for this has hccn OLII low lo:in-to-clcposit mtio, driven by strong core deposits,
:ind deriving rcvcnuc h i 1 1 investmc'nt sccurities :it :I 1esst.r. rntc than 1o:tn yield.
New Regulations Bring New Challenges
The lmilring industry cwntiniics to Lice esc:il:iting costs clue t o conipliancc: with new laws :ind growing oversight.
The l.T,S. Patriot Act, Ikinlc Secrwy Act and S:irh;incs Oxlcy regu1:itions aclcl layers o f reporting :ind expense i o
the Hank - iicitlicr o f w1iic:li prc'viclc :I return in profits to (I)CII- s1i:ireholders. Conitined with the ncccl to provicle
our employccs with competitivc' lxmcfits in this era o f rising Iiealtli c:ire costs, wc are looking for ways to be
hotli respcmsiblc and comp1i;int.
Anothclr iiinjor 1nancl:iie from thc Fccler31 Keseivel in 2004 w3s tlie (:heck 21 project, clesignecl to iiiovc the
sclttlcmcnt process for c~licc~lcs froin :i p:iper b,isc~ to electronic clexing system. Also, :is we arc n o w clefined :is
:I "1;ir;~c txmk" ~incler- the (:ornrnunity Reinvestinem Act (CKA), we 1i;ivc cxpmdecl o u r Inform,itioti Systems to
coiiiply with tlie :idditional reporting requir.cnicnts and ol)lig:itions, Tlic Bmk continues to tx well-positioned to
coiiipl y wit1 1 t1 i e regiil ato ry rcq ci iremen ts with no iicg:i Live i 111 p:ic't on (3 CII-
c CI stc miers.
Bright Future In 2005 And Beyond
Tn 2005, we will continue our' coniniitment to providing ouist:tndir~g scrvicc arid expanding oiii' services, including
lending opportuni~ies, to mcct ( ~ C I I - ciistoniers' neccls, :is we know o u r clients h v e m:iny :iv;.iilal~lc options for
fin;incial services. With r~xpaiiclccl tmncli lo(-ations, great er-nployees, conipctitive produc:ts, a h ~ c u s m i :I s:iles and
;I strong service c~iltiirt:, the Conipany is poisccl for continued swccss. We t1i:ink you for. your sLipport, :ind look
foiwarcl to continuing oiir' tradition of fin;inc-ial strength, security and sta Mity in 2005 and tlic f ~ i t ~ i r e .
3
A 25-Year Tradition of Service & Dedication
Central Valley Comiiiunity kincorp (the “Coiiilmiy”) was esr:il)lishcd on Novemt)er 15, 2000, 3s the holcling
company for Centr:tl V:illc=y Coniinunity Hank (the “Bank”) ;ind is registered :is :I b;mk liolcling cotiip’any with the
I3o:ird of Governors of tlic Fccle~il I
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