Central Valley(CVCY) - 2022 Q1 - Quarterly Report

Financial Performance - Net income for the three months ended March 31, 2022, was $6,086 thousand, down from $7,479 thousand for the same period in 2021, reflecting a decrease of about 18.6%[13] - Basic earnings per share decreased to $0.51 for the three months ended March 31, 2022, from $0.60 in the same period of 2021, reflecting a decline of 15%[13] - Non-interest income totaled $1,834 thousand for the three months ended March 31, 2022, down from $1,999 thousand in the same period of 2021, a decrease of about 8.3%[13] - Other comprehensive loss for the three months ended March 31, 2022, was $(56,919) thousand, compared to $(9,594) thousand in the same period of 2021, indicating a significant increase in losses[16] - The company declared a cash dividend of $0.12 per common share for the three months ended March 31, 2022, compared to $0.11 in the same period of 2021, reflecting a 9.1% increase[13] Assets and Liabilities - Total assets decreased to $2,423,030 thousand as of March 31, 2022, from $2,450,139 thousand at December 31, 2021, representing a decline of approximately 1.1%[9] - Total liabilities increased to $2,231,370 thousand as of March 31, 2022, from $2,202,294 thousand at December 31, 2021, an increase of approximately 1.3%[9] - Cash and cash equivalents decreased to $88,837 thousand as of March 31, 2022, from $163,467 thousand at December 31, 2021, a decline of approximately 45.6%[9] - Total deposits rose to $2,162,360 thousand as of March 31, 2022, compared to $2,122,797 thousand at December 31, 2021, indicating an increase of approximately 1.9%[9] Income and Expenses - Total interest income increased to $18,182 thousand for the three months ended March 31, 2022, compared to $17,847 thousand in the prior year, marking a growth of approximately 1.9%[13] - The provision for income taxes for the three months ended March 31, 2022, was $1,900 thousand, compared to $2,487 thousand in the same period of 2021, a decrease of about 23.5%[13] - Net cash used in operating activities was $(635,000) for the three months ended March 31, 2022, compared to $6,379,000 for the same period in 2021[21] - Net cash used in investing activities was $(107,836,000), compared to $(60,189,000) for the same period in 2021, indicating increased investment activity[21] - The Company recognized interest expense of $333,000 for the three months ended March 31, 2022, compared to $24,000 for the same period in 2021, indicating a significant increase of 1,287.5%[82] Investment and Securities - The company reported unrealized holding losses of $80,603 thousand during the period, compared to $13,621 thousand in the prior year, indicating a significant increase in losses[16] - The investment portfolio had a net unrealized loss of $(69,974,000) as of March 31, 2022, compared to an unrealized gain of $10,835,000 at December 31, 2021[47] - Total available-for-sale securities amounted to $1,098,373,000 with gross unrealized losses of $(9,538,000) as of December 31, 2021[49] - The fair value of U.S. Treasury securities was $9,258,000 with unrealized losses of $(730,000) as of March 31, 2022[49] - Corporate debt securities had an amortized cost of $1,231,730,000 and gross unrealized losses of $(72,359,000) as of March 31, 2022[49] Loans and Credit - Total gross loans as of March 31, 2022, were 1,039,111 thousand, with a total of 20,625 thousand in loans originated under SBA programs[62] - The total loan portfolio amounted to $1,010,963,000, with a past due amount of $39,901,000[66] - The company reported a total of $1,038,240,000 in loans as of December 31, 2021, with $40,845,000 past due[66] - The recorded investment in troubled debt restructurings (TDR) was $3,467,000, down from $7,640,000 as of December 31, 2021[74] - The company had 23 PPP loans totaling 3,554 thousand outstanding as of March 31, 2022[62] Equity and Capital - Shareholders' equity decreased to $191,660 thousand as of March 31, 2022, from $247,845 thousand at December 31, 2021, representing a decrease of about 22.7%[9] - Total subordinated debentures amounted to $39,490,000 as of March 31, 2022, slightly up from $39,454,000 as of December 31, 2021[81] - The company completed a private placement of $35.0 million in subordinated notes on November 12, 2021, which will mature on December 1, 2031[83] - The Company had commitments to extend credit amounting to $346,752,000, an increase from $326,108,000 at December 31, 2021, representing a growth of approximately 4.99%[84] - The Company’s undisbursed lines of credit totaled $346,140,000 as of March 31, 2022, compared to $325,674,000 at December 31, 2021, marking an increase of approximately 6.23%[84]