Community Valley Bancorp (CVLL, Financial) filed Quarterly Report for the period ended 2009-03-31.
Community Valley Bancorp is the parent company of Butte Community Bank a progressive Northern California bank that combines traditional deposit and lending services with innovative banking solutions and CVB Insurance Agency LLC a full-service insurance agency offering all lines of coverage from auto and health to commercial and farm packages. It also operates loan production offices in Citrus Heights and Gridley. Community Valley Bancorp has headquarters in Chico California. Community Valley Bancorp has a market cap of $25.3 million; its shares were traded at around $3.77 with a P/E ratio of 12.5 and P/S ratio of 0.5.
We experienced a compression of the net interest margin of 138 basis points as yields on earning assets decreased 210 basis points while rates paid on interest bearing liabilities decreased 92 basis points. The compression is a direct result of the Federal Open market Committee of the Federal Reserve System (FOMC) reducing the Federal funds rate to a range of 0% - .25% in December 2008. Additionally, for the first quarter ended March 31, 2009 we increased the provision for loan losses to $3,100,000 compared to $225,000 for the first quarter of 2008. This was partially mitigated by the sale of the merchant processing portfolio for $2.6 million in March 2009 and other non-interest income.
Total assets of the Company increased by $8,676,000 or 1.5% from $595,244,000 at December 31, 2008 to $603,920,000 at March 31, 2009. Cash and cash equivalents increased to $72,597,000, up $14,249,000 or 24.4%. Net loans decreased to $473,655,000, down $12,867,000 or 2.64% from December 31, 2008. Deposit balances at March 31, 2009 increased to $535,384,000, up $8,899,000 or 1.7% from December 31, 2008. Premises and equipment decreased to $6,618,000, down $395,000 or 5.6%. Shareholders equity decreased to $40,136,000, down $3,000.
For example, Table Two shows that interest income from loans for the three months ended March 31, 2009 decreased by $1,898,000 from $8,945,000 at March 31, 2008 to $7,047,000. The average balance of loans increased from $449,986,000 to $490,644,000 and the interest rate earned decreased from 8.00% to 5.84%. Table Three shows the $1,898,000 decrease in interest income from loans was actually the result of an $800,000 increase in interest income from the higher balance of loans and a $2,698,000 decrease from the decrease in yields earned in the first quarter of 2009 compared to the same period in 2008.
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Community Valley Bancorp is the parent company of Butte Community Bank a progressive Northern California bank that combines traditional deposit and lending services with innovative banking solutions and CVB Insurance Agency LLC a full-service insurance agency offering all lines of coverage from auto and health to commercial and farm packages. It also operates loan production offices in Citrus Heights and Gridley. Community Valley Bancorp has headquarters in Chico California. Community Valley Bancorp has a market cap of $25.3 million; its shares were traded at around $3.77 with a P/E ratio of 12.5 and P/S ratio of 0.5.
Highlight of Business Operations:
The Company recorded net income of $100,000 for the quarter ended March 31, 2009, which was an 87.9% decrease from the $824,000 reported for the same period of 2008. Diluted earnings per share for the first quarter of 2009 were $0.02, compared to the $0.11 recorded in the first quarter of 2008. The annualized return on average equity (ROAE) and annualized return on average assets (ROAA) for the first quarter of 2009 were 1.00% and .07%, respectively, as compared to 6.80% and .58%, respectively, for the same period in 2008. The primary reasons for the decline in earnings for the first quarter ended March 31, 2009, are the increase in the level of the provision for loan losses, a decline in net interest income which was partially offset by the net gain on the sale of the merchant processing portfolio and decreases in the level of income taxes.We experienced a compression of the net interest margin of 138 basis points as yields on earning assets decreased 210 basis points while rates paid on interest bearing liabilities decreased 92 basis points. The compression is a direct result of the Federal Open market Committee of the Federal Reserve System (FOMC) reducing the Federal funds rate to a range of 0% - .25% in December 2008. Additionally, for the first quarter ended March 31, 2009 we increased the provision for loan losses to $3,100,000 compared to $225,000 for the first quarter of 2008. This was partially mitigated by the sale of the merchant processing portfolio for $2.6 million in March 2009 and other non-interest income.
Total assets of the Company increased by $8,676,000 or 1.5% from $595,244,000 at December 31, 2008 to $603,920,000 at March 31, 2009. Cash and cash equivalents increased to $72,597,000, up $14,249,000 or 24.4%. Net loans decreased to $473,655,000, down $12,867,000 or 2.64% from December 31, 2008. Deposit balances at March 31, 2009 increased to $535,384,000, up $8,899,000 or 1.7% from December 31, 2008. Premises and equipment decreased to $6,618,000, down $395,000 or 5.6%. Shareholders equity decreased to $40,136,000, down $3,000.
For example, Table Two shows that interest income from loans for the three months ended March 31, 2009 decreased by $1,898,000 from $8,945,000 at March 31, 2008 to $7,047,000. The average balance of loans increased from $449,986,000 to $490,644,000 and the interest rate earned decreased from 8.00% to 5.84%. Table Three shows the $1,898,000 decrease in interest income from loans was actually the result of an $800,000 increase in interest income from the higher balance of loans and a $2,698,000 decrease from the decrease in yields earned in the first quarter of 2009 compared to the same period in 2008.
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