Central Valley(US:CVCY)2025-11-06 23:07Financial Performance - Net income for the three months ended September 30, 2025, was $10,873 thousand, a significant increase of 220.5% compared to $3,385 thousand for the same period in 2024[17]. - Basic earnings per share for the three months ended September 30, 2025, was $0.57, compared to $0.18 for the same period in 2024, reflecting a growth of 216.7%[17]. - For the nine months ended September 30, 2025, net income reached $26,998,000, compared to $771,000 in 2024, indicating a remarkable increase of 3,403%[25]. - Total comprehensive income for the three months ended September 30, 2025, was $19,467,000, up from $15,203,000 in 2024, reflecting a growth of 28.9%[19]. - The total shareholders' equity as of September 30, 2025, was $397,576,000, an increase from $363,515,000 in 2024, indicating a growth of 9.4%[22]. Asset Growth - Total assets increased to $3,612,264 thousand as of September 30, 2025, up from $3,521,771 thousand at December 31, 2024, representing a growth of 2.6%[14]. - Total deposits rose to $3,075,931 thousand as of September 30, 2025, compared to $2,910,777 thousand at December 31, 2024, marking an increase of 5.7%[15]. - Cash and due from banks increased to $39,823 thousand as of September 30, 2025, compared to $28,029 thousand at December 31, 2024, an increase of 42.1%[14]. - The total number of common shares outstanding increased from 18,945,593 as of September 30, 2024, to 19,138,677 as of September 30, 2025, an increase of 1.02%[22]. Loan Portfolio - Total gross loans amounted to $2,450,274,000 as of September 30, 2025, an increase from $2,332,345,000 as of December 31, 2024, representing a growth of approximately 5.1%[58]. - The company reported a total of $1,848,301,000 in real estate loans as of September 30, 2025, up from $1,736,498,000 at the end of 2024, marking an increase of about 6.4%[58]. - Loans originated under Small Business Administration (SBA) programs totaled $20,715,000 as of September 30, 2025, with 78% secured by government guarantees[59]. - Nonaccrual loans totaled $7,072,000 as of September 30, 2025, compared to $6,461,000 as of December 31, 2024, indicating an increase of approximately 9.5%[68]. - The total loan portfolio as of September 30, 2025, amounts to $158.169 million, with a significant portion classified as Pass/Watch loans at $148.381 million[75]. Credit Losses and Provisions - The allowance for credit losses increased to $29,590 thousand as of September 30, 2025, compared to $25,803 thousand at December 31, 2024, reflecting a rise of 10.7%[14]. - The provision for credit losses for the three months ended September 30, 2025, was $667 thousand, compared to a credit of $518 thousand in the same period of 2024[17]. - The provision for credit losses for the three months ended September 30, 2025, was primarily driven by loan growth and deteriorating economic forecasts, resulting in a total provision of $3,239,000[66]. - The company’s management believes that the allowance for credit losses at September 30, 2025, appropriately reflects expected credit losses in the loan portfolio[66]. Non-Interest Income and Expenses - Non-interest expenses decreased to $22,167 thousand for the three months ended September 30, 2025, down from $27,677 thousand in the same period of 2024, a reduction of 20.0%[17]. - The total non-interest income for the three months ended September 30, 2025, was $2,966 thousand, compared to $1,105 thousand in the same period of 2024, reflecting a growth of 168.5%[17]. - Total other non-interest income for the three months ended September 30, 2025, was $2,473,000, slightly down from $2,480,000 in the same period of 2024[111]. - Total other non-interest expense for the three months ended September 30, 2025, was $6,709,000, a decrease from $11,280,000 in the same period of 2024[111]. Dividends and Shareholder Returns - Cash dividend payments on common stock for the nine months ended September 30, 2025, were $6,863,000, compared to $5,957,000 in 2024, reflecting an increase of 15.2%[25]. - The company reported a cash dividend per common share of $0.12 for both the three and nine months ended September 30, 2025, consistent with the same periods in 2024[17]. - The company declared a cash dividend of $0.12 per share on October 15, 2025, payable on November 14, 2025, to shareholders of record as of October 31, 2025[137]. Merger and Acquisition - The merger between Central Valley Community Bancorp and Community West Bancshares was completed on April 1, 2024, with Community West Bank merging into Central Valley Community Bank[38]. - The total merger consideration for Community West Bank was $143.714 million, with $139.970 million in shares issued and $2 million in cash consideration[41]. - The acquisition resulted in total assets acquired of $1.041 billion and total liabilities assumed of $940.276 million, leading to net assets acquired of $100.663 million[41]. - Goodwill from the transaction amounted to $43 million, which is nondeductible for tax purposes, reflecting the premium paid over the fair value of net tangible and intangible assets[41]. Securities and Investments - The Company reported total available-for-sale securities at a fair value of $473.075 million as of September 30, 2025, with gross unrealized losses of $42.923 million[43]. - Held-to-maturity securities had a fair value of $266.706 million as of September 30, 2025, with gross unrealized losses of $21.161 million[43]. - The fair value of acquired non-credit deteriorated loans was $892.090 million, with gross contractual amounts receivable of $1.124 billion[42]. - The company did not record an allowance for credit losses on any available-for-sale securities as of September 30, 2025, indicating no credit impairment[50].