Central Valley Community Bank photo via downtownfresno.org
Written by Breanna Hardy
Central Valley Community Bancorp, parent company of Central Valley Community Bank, reported consistent growth in the first quarter ending March 31.
Net income in the first quarter increased 12.92% compared to the same period last year. The increase is attributed to a reversal of provision for credit losses and an increase in net interest income and loan placement fees. The net income increase is also due in part to a decrease in noninterest expense, provision for income taxes. It was partially offset by a decrease in net realized gains on sales and calls of investment securities, and a decrease in service charge income.
Central Valley Community Bank is headquartered in Fresno and has locations from Exeter to Roseville.
“The first quarter of 2021 showed consistent growth in all key financial and asset quality metrics.
Improvements have also been seen in most economic measures within our territory in part due to Paycheck Protection Program loan funding for businesses – a program we proudly offer, the COVID-19 vaccination rollout, and reopening of businesses with California’s recent announcements,” said James Ford, president and CEO of Central Valley Community Bank.
The bank started lending for the PPP in its infancy in spring 2020. Ford said it will continue to fund the second round of the program through the May 31 deadline next month.
Total assets increased $196.4 million, or 9.8% by the end of the first quarter from Dec. 31, 2020 to March 31 of this year. Total deposits increased 11.59%, and the earnings report stated that the total cost of deposits year-over-year in the first quarter remained low from 2020 to 2021 at 0.06% and 0.13%, respectively.
The company also recorded a reversal of provision for credit losses of $1.8 million during the first quarter. This was compared to a $1.375 million provision during the first quarter in 2020. It declared an increase in regular quarterly cash dividend to $0.12 per common share, payable on May 21 to shareholders as of May 7.
“The resilience of our team and their steadfast commitment to provide exceptional client service throughout this historic period remains a source of pride. As we look forward with optimism, our company is well-positioned to support our mission to invest in our communities to ensure they thrive,” Ford said.
Additional resources have been given to credit administration to closely analyze higher risk segments within the loan portfolio, monitor and track loan payment deferrals and customer liquidity, and provide timely reporting to management and board of directors.