Central Valley(US:CVCY)2025-07-17 20:03Financial Performance - The Company reported unaudited consolidated net income of $7,832,000 and diluted earnings per share of $0.41 for Q2 2025, compared to a net loss of $6,290,000 and $0.33 per diluted share in Q2 2024[2]. - Net income for Q2 2025 was $7,832,000, a decrease of 5.6% from $8,293,000 in Q1 2025, but a significant recovery from a net loss of $6,290,000 in Q2 2024[40]. - Basic earnings per share for Q2 2025 was $0.41, down from $0.44 in Q1 2025, while it improved from a loss of $0.33 in Q2 2024[40]. Loan and Deposit Growth - Gross loans increased by $52.5 million or 2.20% for Q2 2025 compared to Q1 2025, and increased $65.2 million or 2.80% year-to-date[4]. - Total deposits increased by $66.0 million or 2.30% compared to Q1 2025 and $84.1 million or 2.90% year-to-date[4]. - Total gross loans increased by $141,862,000 or 6.40% compared to Q2 2024, reaching $2,399,387,000[21]. - Total deposits rose by $78,964,000 or 2.70% to $2,994,921,000 for Q2 2025 compared to Q2 2024[22]. Interest Income and Margin - Net interest margin increased to 4.10% for Q2 2025, up from 4.04% in Q1 2025 and 3.95% in Q4 2024[4]. - The Company's net interest margin for Q2 2025 was 4.10%, up from 3.65% in Q2 2024 and 4.04% in Q1 2025[12]. - Total interest income for Q2 2025 was $46,025,000, an increase of 4.0% from Q1 2025's $45,138,000 and up 4.6% from Q2 2024's $43,997,000[38]. - Net interest income increased by $4,247,000 or 14.62% to $33,304,000 in Q2 2025 compared to $29,057,000 in Q2 2024[12]. Credit Losses and Allowance - The provision for credit losses was $2.61 million in Q2 2025, a significant increase from a credit of $41,000 in Q1 2025, attributed to strong loan growth and deteriorating economic forecasts[4]. - The Company recorded net recoveries of $13,000 in Q2 2025, compared to net charge-offs of $41,000 in Q2 2024, resulting in a net charge-off ratio of 0.00%[26]. - The allowance for credit losses for loans was $28,722,000 as of June 30, 2025, an increase of $2,919,000 from $25,803,000 at December 31, 2024[27]. - The allowance for credit losses stood at $26,005 thousand for the six months ended June 30, 2025, compared to $20,271 thousand in the prior year[47]. Expenses and Efficiency - Non-interest expenses decreased by $1,174,000 or 5.0% to $22,296,000 in Q2 2025, driven by reductions in salaries and employee benefits[16]. - Total non-interest expenses were $22,296,000 for Q2 2025, down from $23,470,000 in Q1 2025, and a decrease from $28,503,000 in Q2 2024[40]. - The efficiency ratio improved to 62.51% in Q2 2025 from 67.38% in Q1 2025, indicating better cost management[42]. Capital and Liquidity - Capital positions remained strong with a 9.48% Tier 1 Leverage Ratio and a 13.89% Total Risk-Based Capital Ratio as of June 30, 2025[4]. - The Company's cash and cash equivalents increased by $13,975,000 to $134,373,000 as of June 30, 2025, compared to $120,398,000 at December 31, 2024[24]. - Total liquidity sources amounted to $1,314,951,000 as of June 30, 2025, up from $1,284,317,000 at December 31, 2024[25]. Dividends and Share Repurchase - The Company declared a cash dividend of $0.12 per common share, payable on August 15, 2025[2]. - A quarterly cash dividend of $0.12 per share was declared on July 16, 2025, payable on August 15, 2025[28]. - The share repurchase program was approved for up to 3% of the Company's outstanding common stock, approximately 573,915 shares[3]. Mergers and Acquisitions - The Company completed a merger with Community West Bancshares effective April 1, 2024, enhancing its market presence[29]. - The Company recorded goodwill of approximately $43 million and core deposit intangibles of $10 million due to the merger on April 1, 2024[19].