Central Valley(US:CVCY)2022-08-03 16:00Financial Performance - Net income for the three months ended June 30, 2022, was $6,542 thousand, a decrease of 13.4% from $7,563 thousand in the same period of 2021[16]. - Net income for the six months ended June 30, 2022, was $12,628,000, compared to $15,042,000 for the same period in 2021, representing a decrease of 16.8%[25]. - Basic earnings per share for the three months ended June 30, 2022, was $0.56, down from $0.61 in the same period of 2021, a decrease of about 8.2%[16]. - Basic earnings per share for the six months ended June 30, 2022, was $1.08, a decrease from $1.20 for the same period in 2021[104]. - Consolidated net income for Q2 2022 was $6,542,000, a decrease of 13.48% from $7,563,000 in Q2 2021[120]. Assets and Liabilities - Total assets decreased to $2,353,592 thousand as of June 30, 2022, down from $2,450,139 thousand at December 31, 2021, representing a decline of approximately 3.9%[12]. - Total deposits decreased to $2,105,997 thousand as of June 30, 2022, down from $2,122,797 thousand at December 31, 2021, indicating a reduction of approximately 0.8%[12]. - Total shareholders' equity decreased to $170,253 thousand as of June 30, 2022, down from $247,845 thousand at December 31, 2021, a decline of approximately 31.2%[12]. - Cash and cash equivalents at the end of the period were $27,233,000, down from $120,666,000 at the end of June 30, 2021, indicating a decrease of 77.6%[25]. - Total average assets increased by $284,707,000 or 13.14% to $2,450,903,000 for the six months ended June 30, 2022 compared to $2,166,196,000 for the same period in 2021[141]. Income and Expenses - Net interest income before provision for credit losses increased to $19,810 thousand for the three months ended June 30, 2022, compared to $18,081 thousand for the same period in 2021, reflecting a growth of about 9.6%[16]. - Non-interest income for the three months ended June 30, 2022, was $770 thousand, significantly lower than $2,077 thousand in the same period of 2021, a decline of about 62.9%[16]. - Total non-interest expenses increased to $12,083 thousand for the three months ended June 30, 2022, compared to $11,630 thousand for the same period in 2021, an increase of approximately 3.9%[16]. - Non-interest income decreased by $1,472,000 or 36.11% to $2,604,000 for the six months ended June 30, 2022, compared to $4,076,000 for the same period in 2021[129]. - Non-interest expenses increased by $510,000 or 2.22% to $23,528,000 for the six months ended June 30, 2022, driven by increases in information technology and regulatory assessments[156]. Loans and Credit Quality - Total gross loans as of June 30, 2022, amounted to $1,135,964,000, an increase from $1,039,111,000 as of December 31, 2021[72]. - The allowance for credit losses was $9,873,000 as of June 30, 2022, compared to $9,600,000 at December 31, 2021, indicating a slight increase in provisions[73]. - Total past due loans were $207,000, with $145,000 in equity loans and lines of credit and $62,000 in consumer and installment loans[81]. - The total recorded investment for loans greater than 90 days accruing was $271,000, indicating a low level of non-accrual loans[81]. - The company had no loans past due more than 90 days and still accruing interest as of June 30, 2022[190]. Investment Portfolio - The investment portfolio had a net unrealized loss of $(80,011,000) as of June 30, 2022, compared to an unrealized gain of $10,835,000 at December 31, 2021[54]. - Total available-for-sale securities amounted to $790,492,000 with gross unrealized losses of $(80,237,000) as of June 30, 2022[56]. - The fair value of the available-for-sale investment portfolio reflected a net unrealized loss of $80,011,000 at June 30, 2022, compared to a net unrealized gain of $10,835,000 at December 31, 2021[183]. - The fair value of U.S. Treasury securities was $8,931,000 as of June 30, 2022, with an amortized cost of $9,989,000[56]. - The fair value of corporate debt securities was $45,000,000 as of June 30, 2022, with an amortized cost of $45,932,000[56]. Regulatory and Compliance - The Company has established an internal task force for compliance with the new CECL standard, focusing on potential loan pool segmentation and economic loss drivers[31]. - The Company is evaluating the provisions of ASU 2020-04 regarding reference rate reform, believing it will not materially impact consolidated financial statements[34]. - The Company is currently assessing the impact of ASU 2022-02 on its disclosures and control structure, but does not expect a material impact on consolidated financial statements[34]. - The Company applied guidance from the CARES Act to loan modifications related to COVID-19, which reduced the number of reported troubled debt restructurings (TDRs)[35]. - The effective income tax rate was 23.39% for the six months ended June 30, 2022, down from 24.77% for the same period in 2021, with an income tax provision of $3,855,000[161]. Shareholder Information - The Board of Directors declared a cash dividend of $0.12 per share, payable on August 20, 2022, to shareholders of record as of August 5, 2022[116]. - The Company repurchased 300,761 shares at an average cost of $22.63 per share, totaling $6,814,000 during the first half of 2022[204]. - The intrinsic value of restricted common stock awards was $3,517,000 at June 30, 2022[109]. - The Company recognized share-based compensation costs of $181,000 for the six months ended June 30, 2022, down from $210,000 in 2021[106]. - The Company had $39,526,000 in total subordinated debentures as of June 30, 2022, compared to $39,454,000 at December 31, 2021[98].