FRESNO, CA--(Marketwire - 10/21/10) - The Board of Directors of Central Valley Community Bancorp (Company) (NASDAQ:CVCY - News), the parent company of Central Valley Community Bank (Bank), reported today unaudited consolidated net income of $2,660,000, and diluted earnings per common share of $0.26 for the nine months ended September 30, 2010, compared to $2,102,000 and $0.23 per diluted common share for the nine months ended September 30, 2009. The increase in net income was primarily driven by lower provision for credit losses, partially offset by decreases in net interest income and non-interest income, and an increase in non-interest expenses in 2010 compared to 2009.
Like all the banks that reported thus far, CVCY's core operating earning was softer 3Q/2Q, but partially to blame was the extra expense on OREO and collection. Without the reduced provision for losses, we'd have seen lower earnings.
The good news is really the across the board in loan quality which speaks well of the underlying collateral--esp. RE--in this country. Maybe improved employment would come next. Cheers.
You could be right, but this is in no way contradictory to what I have seen in the past week, all across the continent, i. e., reduction of provision while NAL are leveling off or even increasing. I don't work in this field, so I can't judge the individual banks, but 40 banks is pretty good size of samples to make inference. Sacramento Commercial Bank just reported. No surprise, an earning increase.
Yeah, I kept notes on each and every one of those little banks that reported early. This should qualify me as a fanatic. :-)
I wish I have your ability to dissect bank reports. Still learning.