Central Valley(CVCY) - 2021 Q1 - Quarterly Report

Financial Performance - Net income for the quarter ended March 31, 2021, was $7,479 thousand, up from $6,623 thousand for the same period in 2020, reflecting a year-over-year increase of 12.9%[15] - Basic earnings per share increased to $0.60 for the quarter ended March 31, 2021, compared to $0.52 for the same period in 2020, reflecting a growth of 15.4%[15] - The company reported a comprehensive loss of $2,115 thousand for the quarter, compared to a comprehensive income of $2,478 thousand in the same quarter of the previous year[18] - The company’s net income for Q1 2021 increased by $856,000 or 12.92% to $7,479,000 compared to $6,623,000 in Q1 2020[122] - The annualized return on average equity (ROE) was 12.17% for Q1 2021, up from 11.62% in Q1 2020[122] Asset and Deposit Growth - Total assets increased to $2,200,523 thousand as of March 31, 2021, compared to $2,004,096 thousand at December 31, 2020, representing a growth of 9.8%[11] - Total deposits reached $1,922,403 thousand, an increase of 11.6% from $1,722,710 thousand at the end of 2020[11] - Total average assets increased by $506,013,000 or 31.66% to $2,104,077,000 in Q1 2021 compared to the same period in 2020[122] - Total deposits increased by $199,693,000 or 11.59% to $1,922,403,000 as of March 31, 2021, compared to $1,722,710,000 as of December 31, 2020[182] Income and Expense Analysis - Net interest income after provision for credit losses rose to $19,355 thousand, compared to $14,654 thousand in the prior year, marking a significant increase of 32.1%[15] - Non-interest income decreased to $1,999 thousand from $6,541 thousand year-over-year, primarily due to lower net realized gains on sales of investment securities[15] - Total non-interest expenses were $11,388 thousand, down from $12,078 thousand in the previous year, indicating a reduction of 5.7%[15] - Non-interest income decreased by $4,542,000 or 69.44% to $1,999,000 in Q1 2021 compared to $6,541,000 in Q1 2020[124] - Non-interest expenses decreased by $690,000 or 5.71% to $11,388,000 for the three months ended March 31, 2021, compared to $12,078,000 for the same period in 2020[153] Credit Quality and Loan Performance - The allowance for credit losses was $12,056 thousand as of March 31, 2021, down from $12,915 thousand at December 31, 2020, indicating improved credit quality[11] - The provision for credit losses showed a reversal of $(1,800,000) in Q1 2021, compared to a provision of $1,375,000 in Q1 2020, indicating improved credit quality[24] - Nonperforming loans increased to $3,783,000 at March 31, 2021, representing 0.35% of total loans, compared to $3,278,000 and 0.30% at December 31, 2020[148] - The total allowance for credit losses decreased to $12,056,000 as of March 31, 2021, from $12,915,000 as of December 31, 2020, reflecting a reversal of provision for credit losses of $1,800,000 during the quarter[148] - The company had no defaults on troubled debt restructurings within twelve months following modification during the three months ended March 31, 2021[89] Investment Portfolio - The total investment portfolio increased by 27.35% to $959,977,000 as of March 31, 2021, compared to $753,829,000 at December 31, 2020[160] - The fair value of the available-for-sale investment portfolio reflected a net unrealized gain of $7,470,000 at March 31, 2021, down from $21,091,000 at December 31, 2020[162] - Total available-for-sale securities amounted to $768,719,000 as of March 31, 2021, with gross unrealized gains of $15,362,000 and losses of $7,892,000[58] Liquidity and Capital Position - Cash and cash equivalents increased by 205.70% to $214,841,000 as of March 31, 2021, from $70,278,000 at December 31, 2020, indicating enhanced liquidity[192] - The Company had unpledged securities totaling $598,281,000 available as a secondary source of liquidity as of March 31, 2021[192] - The Common Equity Tier 1 Ratio (CET 1) increased to 14.68% as of March 31, 2021, compared to 14.41% at the end of 2020, reflecting improved capital adequacy[189] - The Company is committed to a stock repurchase program intending to buy back up to $12 million worth of common stock, which began on March 18, 2021[187] Shareholder Returns - The company declared a cash dividend of $0.11 per common share, consistent with the previous year[15] - The Company declared and paid cash dividends totaling $1,377,000 ($0.11 per common share) during the first three months of 2021, and $5,530,000 ($0.44 per common share) for the year ended December 31, 2020[187]