Central Valley Community Bancorp (CVCY) Reports Q3 2023 Earnings, Showcases Stable Performance ...
Central Valley Community Bancorp (NASDAQ:CVCY) reported unaudited consolidated net income of $6,390,000 for Q3 2023.
Net loans increased by $14.4 million or 1.16%, and total assets increased by $12.8 million or 0.53% at the end of Q3 2023.
Total deposits increased by 2.34% to $2.15 billion at the end of Q3 2023.
The company declared a $0.12 per common share cash dividend, payable on November 17, 2023.
Central Valley Community Bancorp (NASDAQ:CVCY) released its earnings report for the period ending September 30, 2023, on October 19, 2023. The report showcased the company's ability to maintain stable earnings while organically growing both loans and deposits, despite navigating inflation and cost of deposits impacting operating expenses.
Financial Performance
For the quarter ended September 30, 2023, CVCY reported unaudited consolidated net income of $6,390,000 and earnings per diluted common share of $0.54. This is compared to consolidated net income of $6,384,000 and $0.55 per diluted share for the same period in 2022. The net income for the period was impacted by an increase in net interest income after provision for credit losses of $672,000, an increase in non-interest income of $103,000, partially offset by an increase in total non-interest expenses of $633,000 and an increase in the provision for income taxes of $136,000.
Income Statement Highlights
Net interest income before provision for credit losses was $20,527,000. After accounting for the provision for credit losses, net interest income was $20,341,000. Total non-interest income was $1,583,000, while total non-interest expenses amounted to $13,436,000. The income before provision for income taxes was $8,488,000, and after accounting for income taxes, the net income was $6,390,000.
Balance Sheet and Cash Flow Statement Highlights
Net loans increased by $14.4 million or 1.16%, and total assets increased by $12.8 million or 0.53% at the end of Q3 2023. Total deposits increased by 2.34% to $2.15 billion at the end of Q3 2023. The company's capital positions remain strong with a 8.70% Tier 1 Leverage Ratio, a 12.51% Common Equity Tier 1 Ratio, a 12.81% Tier 1 Risk-Based Capital Ratio, and a 15.81% Total Risk-Based Capital Ratio.
Company's Commentary
The Companys third quarter financial performance showcased its ability to maintain stable earnings compared to the prior quarter and year while organically growing both loans and deposits. This occurred even as the Company continues to navigate inflation and cost of deposits which impact operating expenses. I could not be more pleased with our bankers for driving this performance while providing a level of service to clients and communities that was and is truly exceptional, said James J. Kim, President and CEO.
Dividend Declaration
The Company declared a $0.12 per common share cash dividend, payable on November 17, 2023 to shareholders of record as of November 3, 2023.
Despite the challenges posed by the current economic environment, Central Valley Community Bancorp (NASDAQ:CVCY) continues to showcase strong financial performance, demonstrating its resilience and commitment to delivering value to its shareholders.
This article first appeared on GuruFocus.
