Central Valley(US:CVCY)2024-04-18 20:08Financial Performance - For the three months ended March 31, 2024, the company reported a net income of $3,676,000, a decrease of 47.3% from $6,970,000 for the same period in 2023[1]. - Fully diluted earnings per share for the first quarter of 2024 were $0.31, down from $0.59 in the first quarter of 2023[1]. - The annualized return on average equity (ROAE) for the quarter was 7.08%, significantly lower than 15.30% for the same period in 2023[16]. - Net interest income for the three months ended March 31, 2024, was $19,445 thousand, with a net interest margin of 3.42%[62]. - Net income for Q1 2024 decreased to $3,676,000 or $0.31 per diluted common share, compared to $5,893,000 and $0.50 in Q4 2023[68]. Income and Expenses - Net interest income before provision for credit losses was $19,073,000, a decline of 11.8% from $21,581,000 in the same quarter of the previous year[5]. - Total non-interest expenses rose to $15,333,000, an increase of 15.9% from $13,205,000 in the same quarter of 2023[5]. - Total non-interest income was $1,636,000, an increase of 3.9% from $1,575,000 for the same period in 2023[41]. - Total non-interest expenses increased by $2,128,000, or 16.1%, to $15,333,000 compared to $13,205,000 for the same period in 2023[42]. - The company incurred merger and acquisition expenses of $383,000 during the quarter ended March 31, 2024[42]. Assets and Deposits - The company's total assets as of March 31, 2024, were $2,415,624,000, a slight decrease from $2,433,426,000 as of December 31, 2023[33]. - Total average deposits decreased by $26,117,000, or 1.25%, to $2,055,141,000 compared to $2,081,258,000 for the quarter ended March 31, 2023[21]. - Total deposits were $2,031,249,000 as of March 31, 2024, slightly down from $2,041,612,000 at December 31, 2023[47]. - Total average gross loans increased by $14,746,000 or 1.16% compared to the previous quarter and by $22,890,000 or 1.82% year-over-year[44]. Loans and Credit Quality - Total average loans increased by $22,890,000 to $1,283,068,000 for the quarter ended March 31, 2024, compared to $1,260,178,000 for the same period in 2023[39]. - The allowance for credit losses for loans was $14,658,000, remaining stable at 1.14% of total loans as of March 31, 2024[51]. - Net loan charge-offs for the first quarter of 2024 were $525,000, resulting in a net charge-off ratio of 0.16%[48]. - There were no non-performing assets for the quarter ended March 31, 2024, with net loan charge-offs of $525,000[68]. Dividends and Shareholder Returns - Cash dividends per common share remained stable at $0.12 for the quarters ended March 31, 2024, March 31, 2023, and December 31, 2023[35]. - The Company declared a quarterly cash dividend of $0.12 per share, payable on May 17, 2024[52]. - The Company declared a $0.12 per common share cash dividend, payable on May 17, 2024, to shareholders of record as of May 3, 2024[68]. Mergers and Acquisitions - The company completed its acquisition of Community West Bancshares on April 1, 2024, marking its largest acquisition in 44 years[3]. - The merger with Central Valley Community Bancorp was completed on April 1, 2024, with Community West Bank becoming a wholly-owned subsidiary[53]. Liquidity and Capital - The Company has significant liquidity sources totaling $1,196,196,000 as of March 31, 2024[48]. - Capital positions remain strong with a 9.34% Tier 1 Leverage Ratio, a 12.94% Common Equity Tier 1 Ratio, a 13.24% Tier 1 Risk-Based Capital Ratio, and a 16.25% Total Risk-Based Capital Ratio as of March 31, 2024[68].