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FOR IMMEDIATE RELEASE

CENTRAL VALLEY COMMUNITY BANCORP REPORTS EARNINGS RESULTS FOR THE YEAR AND QUARTER ENDED DECEMBER 31, 2022, AND QUARTERLY DIVIDEND

FRESNO, CALIFORNIA....January 26, 2023... The Board of Directors of Central Valley Community Bancorp (Company) (NASDAQ: CVCY), the parent company of Central Valley Community Bank (Bank), reported today unaudited consolidated net income of $26,645,000, and fully diluted earnings per common share of $2.27 for the year ended December 31, 2022, compared to $28,401,000 and $2.31 per fully diluted common share for the year ended December 31, 2021.
FOURTH QUARTER FINANCIAL HIGHLIGHTS
•Net income for the fourth quarter of 2022 increased to $7,633,000 or $0.65 per diluted common share, compared to $6,384,000 and $0.55, respectively, in the third quarter of 2022. The Company recorded a $500,000 provision for credit losses during the fourth quarter and the third quarter of 2022.
•Net loans increased $215.9 million or 20.98%, and total assets decreased $27.6 million or 1.13% at December 31, 2022 compared to December 31, 2021. The net loan increase consisted of an increase of $234.2 million in non-PPP loans, offset by a decrease of $18.2 million in SBA Paycheck Protection Program (PPP) loans.
•Total deposits decreased 1.09% to $2.10 billion at December 31, 2022 compared to December 31, 2021.
•Total cost of deposits increased to 0.09% for the quarter ended December 31, 2022 compared to 0.05% for the quarter ended December 31, 2021.
•Average non-interest bearing demand deposit accounts as a percentage of total average deposits was 50.42% and 44.92% for the quarters ended December 31, 2022 and 2021, respectively.
•Non-performing assets were $0, net loan charge-offs were $18,000, and loans delinquent more than 30 days were $5,895,000 for the quarter ended December 31, 2022.
•Net interest margin increased to 3.80% at December 31, 2022, from 3.57% at September 30, 2022.
•Capital positions remain strong at December 31, 2022 with a 8.37% Tier 1 Leverage Ratio; a 11.92% Common Equity Tier 1 Ratio; a 12.22% Tier 1 Risk-Based Capital Ratio; and a 14.92% Total Risk-Based Capital Ratio.
•The Company declared a $0.12 per common share cash dividend, payable on February 24, 2023 to shareholders of record as of February 10, 2023.

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“The Company’s financial success in 2022 encompasses the full range of financial objectives, including earnings, growth, asset quality and liquidity,” said James J. Kim, President and CEO. “The positive result of these metrics is due, in no small part, to our team. First and foremost, I want to thank them for their service through a volatile year. We also deeply appreciate the support of our clients, shareholders and our communities, all of which contribute to our success.”
“Moving forward, the Company continues its commitment to advance exceptional client service and impact by investing in both physical facilities and banking technologies.” concluded Kim.

Quarter Ended December 31, 2022
For the quarter ended December 31, 2022, the Company reported unaudited consolidated net income of $7,633,000 and earnings per diluted common share of $0.65, compared to consolidated net income of $6,838,000 and $0.57 per diluted share for the same period in 2021. Net income for the period was affected by an increase in net interest income before provision for credit losses of $3,285,000 and a decrease in total non-interest expenses of $610,000, partially offset by a decrease in non-interest income of $1,811,000 and an increase in the provision for income taxes of $289,000. The effective tax rate increased to 25.97% from 25.89% for the quarters ended December 31, 2022 and December 31, 2021, respectively. Net income for the immediately trailing quarter ended September 30, 2022 was $6,384,000, or $0.55 per diluted common share.
Annualized return on average equity (ROE) for the fourth quarter of 2022 was 18.79%, compared to 11.21% for the same period of 2021. The increase in ROE reflects a decrease in average shareholders’ equity compared to the prior year. The decrease in shareholders’ equity was primarily driven by a $88,859,000 increase in net unrealized loss on investment securities, dividends paid, and stock repurchases, partially offset by the retention of earnings. Annualized return on average assets (ROA) was 1.25% for the fourth quarter of 2022 compared to 1.13% for the same period in 2021. This increase was due to the increase in net income outpacing the relative increase in average assets.
In comparing the fourth quarter of 2022 to the fourth quarter of 2021, total average loans increased by $191,011,000, or 18.23%. This mix includes a decrease of $40,417,000 in PPP loans, and an increase of $231,428,000 in non-PPP loans. During the fourth quarter of 2022, the Company recorded net loan charge-offs of $18,000 compared to $39,000 net loan recoveries for the same period in 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was 0.01% for the quarter ended December 31, 2022 compared to (0.01)% for the quarter ended December 31, 2021. During the quarter ended December 31, 2022, the Company recorded a provision of $500,000 for credit losses, compared to a reversal of provision of $500,000 for the quarter ended December 31, 2021.
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The Company’s net interest margin (fully tax equivalent basis) was 3.80% for the quarter ended December 31, 2022, compared to 3.39% for the quarter ended December 31, 2021. Net interest income, before provision for credit losses, increased $3,285,000, or 17.56%, to $21,993,000 for the fourth quarter of 2022, compared to $18,708,000 for the same period in 2021. The accretion on loan marks of acquired loans increased interest income by $76,000 and $223,000 during the quarters ended December 31, 2022 and 2021, respectively. Net interest income during the fourth quarters of 2022 and 2021 benefited by approximately $87,000 and $238,000, respectively, from prepayment penalties and payoff of loans. The net interest margin period-to-period comparisons were impacted by the increase in the yield on the average investment securities and the increase in the yield on the loan portfolio, offset by the increase in the yield on total interest-bearing liabilities. Over the same periods, the cost of total deposits increased to 0.09% from 0.05%.
For the quarter ended December 31, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, decreased by $85,715,000, or 7.22%, compared to the quarter ended December 31, 2021, and decreased by $1,114,000, or 0.09%, compared to the quarter ended September 30, 2022. This decrease was the result of sales and maturities that occurred during the fourth quarter of 2022. The year over year decrease was primarily the result of the increase in the unrealized loss on available for sale securities.
The effective yield on average investment securities, including interest earning deposits in other banks and Federal funds sold, was 2.76% for the quarter ended December 31, 2022, compared to 2.02% for the quarter ended December 31, 2021 and 2.46% for the quarter ended September 30, 2022. Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased by $191,011,000 to $1,238,752,000 for the quarter ended December 31, 2022, from $1,047,741,000 for the quarter ended December 31, 2021 and increased by $48,730,000 from $1,190,022,000 for the quarter ended September 30, 2022. For the quarter ended December 31, 2022, average PPP loans decreased $40,417,000 while average non-PPP loans increased $231,428,000 compared to the quarter ended December 31, 2021. The effective yield on average loans was 5.17% for the quarter ended December 31, 2022, compared to 5.14% and 4.90% for the quarters ended December 31, 2021 and September 30, 2022, respectively.
Total average assets for the quarter ended December 31, 2022 were $2,441,652,000 compared to $2,416,590,000 for the quarter ended December 31, 2021 and $2,414,414,000 for the quarter ended September 30, 2022, an increase of $25,062,000 or 1.04% and an increase of $27,238,000 or 1.12%, respectively.
Total average deposits increased $65,717,000, or 3.12%, to $2,169,075,000 for the quarter ended December 31, 2022, compared to $2,103,358,000 for the quarter ended December 31, 2021, and decreased $21,443,000, or 0.99%, compared to $2,147,632,000 for the quarter ended September 30, 2022. The Company’s ratio of average non-interest bearing deposits to total deposits was 50.42% for the quarter ended December 31, 2022, compared to 44.92% and 48.50% for the quarters ended December 31, 2021 and September 30, 2022, respectively.

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Non-Interest Income - The following table presents the key components of non-interest income for the current and trailing quarterly periods indicated:
Three months ended
(Dollars in thousands)December 31, 2022September 30, 2022$ Change% Change
Service charges$457 $475 $(18)(3.8)%
Appreciation in cash surrender value of bank owned life insurance248 249 (1)(0.4)%
Interchange fees495 432 63 14.6 %
Loan placement fees177 155 22 14.2 %
Net realized losses on sales and calls of investment securities(953)(14)(939)6707.1 %
Federal Home Loan Bank dividends109 91 18 19.8 %
Other Income437 92 345 375.0 %
Total non-interest income$970 $1,480 $(510)(34.5)%

The change in the net realized losses on sales of investment securities during the quarter ended December 31, 2022 were primarily responsible for the decrease in total non-interest income, when compared to the quarter ended September 30, 2022. This was offset by an increase in other income which was impacted by the increase in the gain on equity investment recognized during the quarter.

The following table presents the key components of non-interest income for the periods indicated:
Three months ended
(Dollars in thousands)December 31, 2022December 31, 2021$ Change% Change
Service charges$457 $515 $(58)(11.3)%
Appreciation in cash surrender value of bank owned life insurance248 244 4 1.6 %
Interchange fees495 471 24 5.1 %
Loan placement fees177 340 (163)(47.9)%
Net realized (losses) gains on sales and calls of investment securities(953)463 (1,416)(305.8)%
Federal Home Loan Bank dividends109 84 25 29.8 %
Other Income437 664 (227)(34.2)%
Total non-interest income$970 $2,781 $(1,811)(65.1)%

This decrease was primarily the result of an increase in net realized losses on sales of investment securities and a decrease in other income, which was from a decrease in fair value on equity investments recognized during the quarter ended December 31, 2022 compared to the quarter ended December 31, 2021. The decrease in loan placement fees was also responsible for the decrease in total non-interest income when comparing the quarters ended December 31, 2022 and December 31, 2021.
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Non-Interest Expense - The following table presents the key components of non-interest expense for the current and trailing quarterly periods indicated:
Three months ended
(Dollars in thousands)December 31, 2022September 30, 2022$ Change% Change
Salaries and employee benefits$7,416 $7,500 $(84)(1.1)%
Occupancy and equipment1,262 1,363 (101)(7.4)%
Information Technology879 879 — — %
Regulatory assessments211 224 (13)(5.8)%
Data processing expense596 560 36 6.4 %
Professional services68 613 (545)(88.9)%
ATM/Debit card expenses221 176 45 25.6 %
Internet banking expense36 29 7 24.1 %
Advertising141 138 3 2.2 %
Directors’ expenses98 91 7 7.7 %
Amortization of core deposit intangibles34 139 (105)(75.5)%
Loan related expenses 51 152 (101)(66.4)%
Personnel other104 57 47 82.5 %
Other expense1,035 877 158 18.0 %
Total non-interest expenses$12,152 $12,798 $(646)(5.0)%

The following table presents the key components of non-interest expense for the periods indicated:
Three months ended
(Dollars in thousands)December 31, 2022December 31, 2021$ Change% Change
Salaries and employee benefits$7,416 $7,712 $(296)(3.8)%
Occupancy and equipment1,262 1,344 (82)(6.1)%
Information Technology879 807 72 8.9 %
Regulatory assessments211 279 (68)(24.4)%
Data processing expense596 553 43 7.8 %
Professional services68 327 (259)(79.2)%
ATM/Debit card expenses221 203 18 8.9 %
Internet banking expense36 58 (22)(37.9)%
Advertising141 141 — — %
Directors’ expenses98 116 (18)(15.5)%
Amortization of core deposit intangibles34 140 (106)(75.7)%
Loan related expenses51 88 (37)(42.0)%
Personnel other104 139 (35)(25.2)%
Other expense1,035 855 180 21.1 %
Total non-interest expenses$12,152 $12,762 $(610)(4.8)%

The decrease in non-interest expenses was the result of a reversal of over-accrual in professional services and lower salaries and employee benefits. The lower salaries and benefits was the reflection of lower incentive and profit expense offset by higher compensation expense.
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The following table shows the Company’s outstanding loan portfolio as of December 31, 2022 and December 31, 2021:
Loan Type (dollars in thousands)December 31, 2022% of Total
Loans		December 31, 2021% of Total
Loans
Commercial:
Commercial and industrial$141,197 11.2 %$136,847 13.2 %
Agricultural production39,007 3.1 %40,860 3.9 %
Total commercial180,204 14.3 %177,707 17.1 %
Real estate:
Owner occupied194,663 15.5 %212,234 20.4 %
Real estate construction and other land loans109,175 8.7 %61,586 5.9 %
Commercial real estate464,809 37.1 %369,529 35.6 %
Agricultural real estate117,648 9.4 %98,481 9.5 %
Other real estate24,586 2.0 %26,084 2.5 %
Total real estate910,881 72.7 %767,914 73.9 %
Consumer:
Equity loans and lines of credit123,581 9.8 %55,620 5.4 %
Consumer and installment40,252 3.2 %36,999 3.6 %
Total consumer163,833 13.0 %92,619 9.0 %
Net deferred origination fees1,386 871 
Total gross loans1,256,304 100.0 %1,039,111 100.0 %
Allowance for credit losses(10,848)(9,600)
Total loans$1,245,456 $1,029,511 

The following table shows the Company’s loan portfolio allocated by management’s internal risk ratings:
Loan Risk Rating (In thousands)December 31, 2022September 30, 2022December 31, 2021
Pass$1,196,110 $1,170,422 $988,855 
Special mention31,023 30,894 40,845 
Substandard27,785 22,657 8,540 
Doubtful— — — 
Total$1,254,918 $1,223,973 $1,038,240 
At December 31, 2022, the allowance for credit losses was $10,848,000, compared to $9,600,000 at December 31, 2021, a net increase of $1,248,000 reflecting a provision of $1,000,000 and net recoveries during the period. The Company is not required to implement the provisions of the CECL accounting standard until January 1, 2023, and is continuing to account for the allowance for credit losses under the incurred loss model. The allowance for credit losses as a percentage of total loans was 0.86% and 0.92% as of December 31, 2022 and December 31, 2021, respectively. Total loans include loans acquired in the acquisitions of Folsom Lake Bank on October 1, 2017, Sierra Vista Bank on October 1, 2016 and Visalia Community Bank on July 1, 2013 that, at their
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respective acquisition dates, were recorded at fair value and did not have a related allowance for credit losses. The recorded value of acquired loans totaled $73,456,000 at December 31, 2022 and $93,201,000 at December 31, 2021. Excluding these acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.92% and 1.01% as of December 31, 2022 and December 31, 2021, respectively, and general reserves associated with non-impaired loans to total non-impaired loans was 0.89% and 0.98%, respectively. As of December 31, 2022, gross loans included $333,000 related to PPP loans, which are fully guaranteed by the SBA as compared to $18,553,000 at December 31, 2021. Excluding PPP loans and the acquired loans from the calculation, the allowance for credit losses to total gross loans was 0.92% and 1.04% as of December 31, 2022 and December 31, 2021, respectively. The Company believes the allowance for credit losses is adequate to provide for probable incurred credit losses within the loan portfolio at December 31, 2022.
The composition of the deposits at December 31, 2022 and December 31, 2021 is summarized in the table below:
(Dollars in thousands)December 31, 2022% of
Total
Deposits		December 31, 2021% of
Total
Deposits
NOW accounts$324,089 15.4 %$360,462 17.0 %
MMA accounts435,783 20.8 %511,448 24.1 %
Time deposits67,923 3.2 %90,030 4.2 %
Savings deposits215,287 10.3 %197,273 9.3 %
Total interest-bearing1,043,082 49.7 %1,159,213 54.6 %
Non-interest bearing1,056,567 50.3 %963,584 45.4 %
Total deposits$2,099,649 100.0 %$2,122,797 100.0 %

Year Ended December 31, 2022
Net income for the year ended December 31, 2022 decreased 6.18%, compared to the year ended December 31, 2021, driven by a provision for credit losses, a decrease in loan placement fees, an increase in the net realized loss on sales of investment securities, partially offset by an increase in service charge income, and a decrease in the provision for income taxes. During the year ended December 31, 2022, the Company recorded a $1,000,000 provision for credit losses, compared to a $4,300,000 reversal of provision during the year ended December 31, 2021. Net interest income before the provision for credit losses for the year ended December 31, 2022 was $79,566,000, compared to $72,554,000 for the year ended December 31, 2021, an increase of $7,012,000 or 9.66%. The impact to interest income from the accretion of the loan marks on acquired loans was $521,000 and $802,000 for the year ended December 31, 2022 and 2021, respectively. In addition, net interest income before the provision for credit losses for the year ended December 31, 2022 was impacted by approximately $649,000 in loan prepayment penalties, as compared to $676,000 for the year ended December 31, 2021. Excluding the loan mark accretion and prepayment penalties, net interest income for the year ended December 31, 2022 increased by $7,320,000 compared to the year ended December 31, 2021.
The Company recorded an income tax provision of $8,496,000 for the year ended December 31, 2022, compared to $9,616,000 for the year ended December 31, 2021. The effective tax rate for the year ended
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December 31, 2022 was 24.18% compared to 25.29% for the year ended December 31, 2021. The effective tax rate was impacted by the increase in tax-exempt interest, as well as an increase in income from the appreciation in cash surrender value of bank owned life insurance.
During the year ended December 31, 2022, the Company’s shareholders’ equity decreased $73,185,000, or 29.53%, compared to December 31, 2021. The decrease in shareholders’ equity was driven by the adverse change in the unrealized position on investment securities, and share repurchases, offset by the retention of earnings, net of dividends paid. The change in the unrealized position was a loss in the amount of $88,859,000.
Return on average equity (ROE) for the year ended December 31, 2022 was 14.25%, compared to 11.50% for the year ended December 31, 2021. The increase in ROE reflects the decrease in average shareholders’ equity compared to the prior year. The Company declared and paid $0.48 and $0.47 per share in cash dividends to holders of common stock during the year ended December 31, 2022 and 2021, respectively. Return on average assets (ROA) was 1.09% for the year ended December 31, 2022 and 1.25% for the year ended December 31, 2021. This decrease was due to the decrease in net income and an increase in average assets. During the year ended December 31, 2022, the Company’s total assets decreased 1.13%, and total liabilities increased 2.07%, compared to December 31, 2021.
Non-performing assets decreased by $946,000, or 100.00%, to $0 at December 31, 2022, compared to $946,000 at December 31, 2021. During the year ended December 31, 2022, the Company recorded $248,000 in net loan recoveries, compared to $985,000 for the year ended December 31, 2021. The net charge-off (recovery) ratio, which reflects annualized net charge-offs (recoveries) to average loans, was (0.02)% for the year ended December 31, 2022, compared to (0.09)% for the same period in 2021. Total non-performing assets were 0.00% and 0.04% of total assets as of December 31, 2022 and December 31, 2021, respectively.
The Company’s net interest margin (fully tax equivalent basis) was 3.52% for the year ended December 31, 2022, compared to 3.54% for the year ended December 31, 2021. The decrease in net interest margin in the period-to-period comparison resulted from the decrease in the yield on the Company’s loan portfolio, and an increase in the balance of average interest-earning assets.
For the year ended December 31, 2022, the effective yield on average total earning assets increased 5 basis points to 3.66% compared to 3.61% for the year ended December 31, 2021, while the cost of average total interest-bearing liabilities increased to 0.28% for the year ended December 31, 2022 as compared to 0.12% for the year ended December 31, 2021. Over the same periods, the cost of average total deposits increased to 0.06% for the year ended December 31, 2022 compared to 0.05% for the same period in 2021.
For the year ended December 31, 2022, the Company’s average investment securities, including interest-earning deposits in other banks and Federal funds sold, totaled $1,180,125,000, an increase of $158,452,000, or 15.51%, compared to the year ended December 31, 2021. The effective yield on average investment securities, including interest-earning deposits in other banks and Federal funds sold, increased to 2.45% for the year ended December 31, 2022, compared to 2.08% for the year ended December 31, 2021.
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Total average loans (including nonaccrual), which generally yield higher rates than investment securities, increased $64,266,000 to $1,133,919,000 for the year ended December 31, 2022 from $1,069,653,000 for the year ended December 31, 2021. The effective yield on average loans decreased to 4.93% for the year ended December 31, 2022, compared to 5.07% for the year ended December 31, 2021. Total average PPP loans, which have a 1.00% interest rate in addition to loan fees, were $3,786,000 for the year ended December 31, 2022 as compared to $116,030,000 at December 31, 2021. Excluding PPP loans from total average loans, the effective yield on average loans for the year ended December 31, 2022 was immaterially impacted. As of December 31, 2021 the effective yield on average loans was 4.85% after excluding PPP loans.

Non-Interest Income - The following table presents the key components of non-interest income for the current and trailing periods indicated:
Year ended
(Dollars in thousands)December 31, 2022December 31, 2021$ Change% Change
Service charges$2,014 $1,901 $113 5.9 %
Appreciation in cash surrender value of bank owned life insurance985 840 145 17.3 %
Interchange fees1,847 1,784 63 3.5 %
Loan placement fees899 1,974 (1,075)(54.5)%
Net realized (losses) gains on sales and calls of investment securities(1,730)501 (2,231)(445.3)%
Federal Home Loan Bank dividends367 321 46 14.3 %
Other Income672 1,684 (1,012)(60.1)%
Total non-interest income$5,054 $9,005 $(3,951)(43.9)%

The decrease in non-interest income was the result of an increase in net realized losses on sales of investment securities and a decrease in other income, which resulted from a decrease in fair value on equity investments recognized during the year ended December 31, 2022 compared to the year ended December 31, 2021. The decrease in loan placement fees and change in other miscellaneous processing fees were also responsible for the decrease in total non-interest income when comparing the years ended December 31, 2022 and December 31, 2021.
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Non-Interest Expense - The following table presents the key components of non-interest expense for the periods indicated:
Year ended
(Dollars in thousands)December 31, 2022December 31, 2021$ Change% Change
Salaries and employee benefits$28,917 $28,720 $197 0.7 %
Occupancy and equipment5,131 4,882 249 5.1 %
Information Technology3,344 2,868 476 16.6 %
Regulatory assessments851 831 20 2.4 %
Data processing expense2,245 2,394 (149)(6.2)%
Professional services1,519 1,665 (146)(8.8)%
ATM/Debit card expenses809 818 (9)(1.1)%
Internet banking expense134 320 (186)(58.1)%
Advertising557 527 30 5.7 %
Directors’ expenses282 422 (140)(33.2)%
Amortization of core deposit intangibles454 661 (207)(31.3)%
Loan related expenses 341 357 (16)(4.5)%
Personnel other323 374 (51)(13.6)%
Other expense3,572 3,003 569 18.9 %
Total non-interest expenses$48,479 $47,842 $637 1.3 %

Total average assets for the year ended December 31, 2022 was $2,439,394,000 compared to $2,267,615,000 for the year ended December 31, 2021, an increase of $171,779,000 or 7.58%. During the year ended December 31, 2022 and 2021, the loan-to-deposit ratio was 59.83% and 48.95%, respectively. Total average deposits increased $181,516,000 or 9.19% to $2,156,092,000 for the year ended December 31, 2022, compared to $1,974,576,000 for the year ended December 31, 2021. Average interest-bearing deposits increased $75,088,000, or 6.99%, and average non-interest bearing demand deposits increased $106,428,000, or 11.82%, for the year ended December 31, 2022, compared to the year ended December 31, 2021. The Company’s ratio of average non-interest bearing deposits to total deposits was 46.68% for the year ended December 31, 2022, compared to 45.58% for the year ended December 31, 2021.

Capital Management
On January 26, 2023, the Board of Directors of the Company declared a regular quarterly cash dividend of $0.12 per share on the Company’s common stock. The dividend is payable on February 24, 2023 to shareholders of record as of February 10, 2023. The Company continues to be well capitalized and expects to maintain adequate capital levels.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY. Central Valley Community Bank (CVCB), headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. CVCB operates full-service Banking Centers throughout
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California’s San Joaquin Valley and Greater Sacramento region, in addition to CVCB maintaining Commercial, Real Estate, and Agribusiness Lending, as well as Private Business Banking and Cash Management Departments.
Members of Central Valley Community Bancorp’s and CVCB’s Board of Directors are: Daniel J. Doyle (Chairman), Daniel N. Cunningham (Vice Chairman), F. T. “Tommy” Elliott, IV, Robert J. Flautt, Gary D. Gall, James J. Kim, Andriana D. Majarian, Steven D. McDonald, Louis C. McMurray, Karen A. Musson, Dorothea D. Silva and William S. Smittcamp.
More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com. Also, visit Central Valley Community Bank on Twitter, Facebook and LinkedIn.
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Forward-looking Statements- Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are forward-looking in nature and involve a number of risks and uncertainties. Such risks and uncertainties include, but are not limited to (1) significant increases in competitive pressure in the banking industry; (2) the impact of changes in interest rates; (3) a decline in economic conditions in the Central Valley and the Greater Sacramento Region, including the impact of inflation; (4) the Company’s ability to continue its internal growth at historical rates; (5) the Company’s ability to maintain its net interest margin; (6) the decline in quality of the Company’s earning assets; (7) a decline in credit quality; (8) changes in the regulatory environment; (9) fluctuations in the real estate market; (10) changes in business conditions and inflation; (11) changes in securities markets (12) risks associated with acquisitions, relating to difficulty in integrating combined operations and related negative impact on earnings, and incurrence of substantial expenses; (13) political developments, uncertainties or instability, catastrophic events, acts of war or terrorism, or natural disasters, such as earthquakes, drought, pandemic diseases or extreme weather events, any of which may affect services we use or affect our customers, employees or third parties with which we conduct business; (14) the other risks set forth in the Company’s reports filed with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2021. Therefore, the information set forth in such forward-looking statements should be carefully considered when evaluating the business prospects of the Company.
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Central Valley Community Bancorp -- page 12

CENTRAL VALLEY COMMUNITY BANCORP
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31,September 30,December 31,
(In thousands, except share amounts)202220222021
ASSETS
Cash and due from banks$25,485 $32,535 $29,412 
Interest-earning deposits in other banks5,685 9,043 134,055 
Total cash and cash equivalents31,170 41,578 163,467 
Available-for-sale investment securities 648,825 668,300 1,109,208 
Held-to-maturity investment securities 305,107 305,482 — 
Equity securities6,558 6,544 7,416 
Loans, less allowance for credit losses of $10,848, $10,366, and $9,600 at December 31, 2022, September 30, 2022, and December 31, 2021, respectively1,245,456 1,214,904 1,029,511 
Bank premises and equipment, net7,987 7,909 8,380 
Bank owned life insurance40,537 40,289 39,553 
Federal Home Loan Bank stock6,169 6,169 5,595 
Goodwill53,777 53,777 53,777 
Core deposit intangibles68 102 522 
Accrued interest receivable and other assets76,865 80,644 32,710 
Total assets$2,422,519 $2,425,698 $2,450,139 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Deposits:
Non-interest bearing$1,056,567 $1,044,678 $963,584 
Interest bearing1,043,082 1,094,466 1,159,213 
Total deposits2,099,649 2,139,144 2,122,797 
Short-term borrowings46,000 25,000 — 
Senior debt and subordinated debentures69,599 69,563 39,454 
Accrued interest payable and other liabilities32,611 33,177 40,043 
Total liabilities2,247,859 2,266,884 2,202,294 
Shareholders’ equity:
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding
— — — 
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,735,291, 11,732,011, and 11,916,651, at December 31, 2022, September 30, 2022, and December 31, 2021, respectively61,487 61,262 66,820 
Retained earnings194,400 188,174 173,393 
Accumulated other comprehensive (loss) income, net of tax(81,227)(90,622)7,632 
Total shareholders’ equity174,660 158,814 247,845 
Total liabilities and shareholders’ equity$2,422,519 $2,425,698 $2,450,139 
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Central Valley Community Bancorp -- page 13

CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)    
For the Three Months Ended,For the Years Ended
December 31,September 31,December 31,December 31,
(In thousands, except share and per-share amounts)20222022202120222021
INTEREST INCOME:
Interest and fees on loans$16,155 $14,708 $13,548 $55,907 $54,077 
Interest on deposits in other banks234 48 40 391 129 
Interest and dividends on investment securities:
Taxable5,426 4,411 4,106 20,011 14,044 
Exempt from Federal income taxes1,534 1,825 1,463 6,679 5,606 
Total interest income23,349 20,992 19,157 82,988 73,856 
INTEREST EXPENSE:
Interest on deposits483 231 253 1,197 1,036 
Interest on subordinated debentures and borrowings873 597 196 2,225 266 
Total interest expense1,356 828 449 3,422 1,302 
Net interest income before provision for credit losses21,993 20,164 18,708 79,566 72,554 
PROVISION FOR (REVERSAL OF) CREDIT LOSSES500 500 (500)1,000 (4,300)
Net interest income after provision for credit losses21,493 19,664 19,208 78,566 76,854 
NON-INTEREST INCOME:
Service charges457 475 515 2,014 1,901 
Net realized (losses) gains on sales and calls of investment securities(953)(14)463 (1,730)501 
Other income1,466 1,019 1,803 4,770 6,603 
Total non-interest income970 1,480 2,781 5,054 9,005 
NON-INTEREST EXPENSES:
Salaries and employee benefits7,416 7,500 7,712 28,917 28,720 
Occupancy and equipment1,262 1,363 1,344 5,131 4,882 
Other expense3,474 3,935 3,706 14,431 14,240 
Total non-interest expenses12,152 12,798 12,762 48,479 47,842 
Income before provision for income taxes10,311 8,346 9,227 35,141 38,017 
PROVISION FOR INCOME TAXES2,678 1,962 2,389 8,496 9,616 
Net income$7,633 $6,384 $6,838 $26,645 $28,401 
Net income per common share:
Basic earnings per common share$0.65 $0.55 $0.57 $2.27 $2.32 
Weighted average common shares used in basic computation11,690,410 11,678,532 11,956,045 11,715,376 12,237,424 
Diluted earnings per common share$0.65 $0.55 $0.57 $2.27 $2.31 
Weighted average common shares used in diluted computation11,708,753 11,689,323 11,994,590 11,739,074 12,281,932 
Cash dividends per common share$0.12 $0.12 $0.12 $0.48 $0.47 
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Central Valley Community Bancorp -- page 14

CENTRAL VALLEY COMMUNITY BANCORP
CONDENSED CONSOLIDATED INCOME STATEMENTS
(Unaudited)
Dec. 31,Sept. 30,Jun. 30,Mar. 31,Dec. 31,
For the three months ended20222022202220222021
(In thousands, except share and per share amounts)
Net interest income$21,993 $20,164 $19,810 $17,597 $18,708 
Provision for (reversal of) credit losses500 500 — — (500)
Net interest income after provision for credit losses21,493 19,664 19,810 17,597 19,208 
Total non-interest income970 1,480 770 1,834 2,781 
Total non-interest expense12,152 12,798 12,083 11,445 12,762 
Provision for income taxes2,678 1,962 1,955 1,900 2,389 
Net income$7,633 $6,384 $6,542 $6,086 $6,838 
Basic earnings per common share$0.65 $0.55 $0.56 $0.51 $0.57 
Weighted average common shares used in basic computation11,690,410 11,678,532 11,665,074 11,829,245 11,956,045 
Diluted earnings per common share$0.65 $0.55 $0.56 $0.51 $0.57 
Weighted average common shares used in diluted computation11,708,753 11,689,323 11,685,850 11,872,025 11,994,590 

CENTRAL VALLEY COMMUNITY BANCORP
SELECTED RATIOS
(Unaudited)
Dec. 31,Sep. 30,Jun. 30,Mar. 31,Dec. 31,
As of and for the three months ended20222022202220222021
(Dollars in thousands, except per share amounts)
Allowance for credit losses to total loans0.86 %0.85 %0.87 %0.97 %0.92 %
Non-performing assets to total assets— %0.01 %0.01 %0.01 %0.04 %
Total non-performing assets$— $251 $271 $292 $946 
Total nonaccrual loans$— $251 $271 $292 $946 
Total substandard loans$27,785 $22,657 $10,756 $10,739 $8,540 
Total special mention loans$31,023 $30,894 $34,509 $39,901 $40,845 
Net loan charge-offs (recoveries)$18 $7 $(9)$(264)$(39)
Net charge-offs (recoveries) to average loans (annualized)0.01 %— %— %(0.10)%(0.01)%
Book value per share$14.88 $13.54 $13.90 $16.31 $20.80 
Tangible book value per share$10.30 $8.94 $9.29 $11.70 $16.24 
Tangible common equity$120,814 $104,935 $108,863 $137,501 $193,546 
Cost of total deposits0.09 %0.04 %0.04 %0.05 %0.05 %
Interest and dividends on investment securities exempt from Federal income taxes$1,534 $1,825 $1,879 $1,440 $1,463 
Net interest margin (calculated on a fully tax equivalent basis) (1)3.80 %3.57 %3.48 %3.19 %3.39 %
Return on average assets (2)1.25 %1.06 %1.07 %0.99 %1.13 %
Return on average equity (2)18.79 %14.42 %14.73 %10.51 %11.21 %
Loan to deposit ratio59.83 %57.28 %53.94 %46.80 %48.95 %
Efficiency ratio49.85 %57.20 %54.20 %57.66 %58.94 %
Tier 1 leverage - Bancorp8.37 %8.26 %7.89 %7.87 %8.03 %
Tier 1 leverage - Bank10.86 %10.73 %9.10 %8.54 %8.47 %
Common equity tier 1 - Bancorp11.92 %11.56 %11.94 %12.06 %12.48 %
Common equity tier 1 - Bank15.87 %15.41 %14.15 %13.43 %13.52 %
Tier 1 risk-based capital - Bancorp12.22 %11.86 %12.26 %12.38 %12.82 %
Tier 1 risk-based capital - Bank15.87 %15.41 %14.15 %13.43 %13.52 %
Total risk-based capital - Bancorp14.92 %14.54 %15.07 %15.27 %15.80 %
Total risk based capital - Bank16.53 %16.03 %14.78 %14.08 %14.18 %
(1) Net Interest Margin is computed by dividing annualized quarterly net interest income by quarterly average interest-bearing assets.
(2) Computed by annualizing quarterly net income.
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Central Valley Community Bancorp -- page 15

CENTRAL VALLEY COMMUNITY BANCORP
AVERAGE BALANCES AND RATES
(Unaudited)
For the Three Months EndedFor the Years Ended
AVERAGE AMOUNTSDecember 31,September 30,December 31,December 31,December 31,
(Dollars in thousands)20222022202120222021
Interest-bearing deposits in other banks$24,607 $6,192 $104,725 $48,032 $104,710 
Investments1,076,245 1,095,774 1,081,842 1,132,093 916,963 
Loans (1)1,238,592 1,189,762 1,046,602 1,133,641 1,067,316 
Earning assets2,339,444 2,291,728 2,233,169 2,313,766 2,088,989 
Allowance for credit losses(10,436)(9,877)(10,036)(10,005)(11,482)
Nonaccrual loans160 260 1,139 278 2,337 
Other non-earning assets112,484 132,303 192,318 135,355 187,771 
Total assets$2,441,652 $2,414,414 $2,416,590 $2,439,394 $2,267,615 
Interest bearing deposits$1,075,482 $1,105,934 $1,158,542 $1,149,581 $1,074,493 
Other borrowings75,936 60,794 23,837 63,752 9,864 
Total interest-bearing liabilities1,151,418 1,166,728 1,182,379 1,213,333 1,084,357 
Non-interest bearing demand deposits1,093,593 1,041,698 944,816 1,006,511 900,083 
Non-interest bearing liabilities34,182 28,905 45,349 32,532 36,311 
Total liabilities2,279,193 2,237,331 2,172,544 2,252,376 2,020,751 
Total equity162,459 177,083 244,046 187,018 246,864 
Total liabilities and equity$2,441,652 $2,414,414 $2,416,590 $2,439,394 $2,267,615 
AVERAGE RATES
Interest-earning deposits in other banks3.80 %3.10 %0.15 %0.81 %0.12 %
Investments2.74 %2.45 %2.20 %2.51 %2.31 %
Loans (3)5.17 %4.90 %5.14 %4.93 %5.07 %
Earning assets4.03 %3.72 %3.47 %3.66 %3.61 %
Interest-bearing deposits0.18 %0.08 %0.09 %0.10 %0.10 %
Other borrowings4.60 %3.93 %3.29 %3.49 %2.70 %
Total interest-bearing liabilities0.47 %0.28 %0.15 %0.28 %0.12 %
Net interest margin (calculated on a fully tax equivalent basis) (2)
3.80 %3.57 %3.39 %3.52 %3.54 %
(1)Average loans do not include nonaccrual loans.
(2)    Calculated on a fully tax equivalent basis, which includes Federal tax benefits relating to income earned on municipal bonds of $408, $486, and $389, for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively. The Federal tax benefits relating to income earned on municipal bonds totaled $1,775 and $1,490 for the year ended December 31, 2022 and 2021, respectively.
(3)    Loan yield includes loan (costs) fees for the three months ended December 31, 2022, September 30, 2022, and December 31, 2021 of $(135), $(80), and $1,508, respectively. Loan yield includes loan fees (costs) for the year ended December 31, 2022 and 2021 of $274 and $6,474, respectively.


CONTACTS: Investor Contact:
James Kim
President and Chief Executive Officer
Central Valley Community Bancorp
559-323-3446

Media Contact:
Debbie Nalchajian-Cohen
Marketing Director
Central Valley Community Bancorp
559-222-1322