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Community Valley Bank Announces Net Profit Increase of 100% for 2013

February 5, 2014

EL CENTRO, Calif. --(BUSINESS WIRE)-- Community Valley Bank (CVB) is pleased to report its operating results for 2013 reflected its 13 th consecutive quarter of profitability. Fourth quarter profits were $540,000 resulting in a net profit for 2013 of $1,240,000 , a 100% increase over 2012s annual net profit. As of December 30, 2013 , total assets grew by $9 million over year-end 2012 to $117 million . Deposits rose to $98 million , an increase of $8 million from 2012 year-end. In 2013, the bank experienced a net reduction in total loans of $4.2 million ending the year at $74.9 million . This was caused in large part by unanticipated payoffs of several large loans during the fourth quarter, explains CVB Chairman, Jon Edney . Total Equity Capital was $12.3 million while Tier 1 Leverage Capital Ratio was 11.27%. This is well above the regulatory ratio required to be considered a well-capitalized bank, says Edney. CVBs stock (CMUV) recently traded above $5.00 per share, up from $4.51 as of June 30 . The book value as of year-end was $6.10 . The bank expects continued success as the economy continues to show signs of improvement. It will continue to be the business bank of choice in both the Imperial and Coachella Valleys. As an SBA preferred lender, along with a vast array of other financial products, the bank is able to serve the many needs of the business community. The Allowance for Loan and Lease Losses (ALLL) was $1.21 million or 1.6% of gross loans as of year-end. CVB Board and Management believe the ALLL is fully funded based on the quarterly analysis. The banks ratio matches CVBs peer bank average and provides a strong reserve against potential future losses. CVB is entering its seventh year of serving the financial needs of the Imperial and Coachella Valleys. We are pleased with the progress we have made in that time and are excited about the future potential of the bank, notes Wayne Gale , CVB President and CEO. We are optimistic that the recent improvement in the economy will continue to enhance our ability to grow and increase profitability, he adds. Recent news projecting interest rates rising in the next year to 18 months requires CVB to closely monitor the local economies while examining alternative strategies going forward. CVBs motto This is Your Valley . This is Your Bank is how CVB operates, as it focuses on serving the local business communities. 2013 December 31, 2013 December 31, 2012 Consolidated Financial Condition Data Assets Loans receivable - net $ 73,703,000 $ 79,195,000 Cash and cash equivalents 35,037,000 21,628,000 Investment Securities 1,466,000 1,003,000 Federal Home Loan Bank Stock 447,000 283,000 Other Assets 6,950,000 6,565,000 Total Assets $ 117,603,000 $ 108,674,000 Liabilities Deposits 98,164,000 90,340,000 Borrowings (FHLB) 6,000,000 6,000,000 Mortgage Indebtedness 684,000 744,000 Other Liabilities 464,000 446,000 Total Liabilities 105,312,000 97,530,000 Preferred Stock 2,400,000 2,400,000 Common Stock 14,298,000 14,271,000 Costs/Dividends (100,000 ) (52,000 ) Surplus 537,000 498,000 Total Undivided Profits (4,727,000 ) (5,973,000 ) Unrealized Gain/Loss (117,000 ) 17,000 Stockholder's Equity - net 12,291,000 11,144,000 Total Liabilities and Shareholder Equity $ 117,603,000 $ 108,674,000 December 31, 2013 December 31, 2012 Selected Consolidated Earnings Data Total Interest Income/Fees $ 5,420,000 $ 4,665,000 Total Interest Expense (712,000 ) (681,000 ) Net Interest Income 4,708,000 3,984,000 Provision For Losses on Loans (615,000 ) (540,000 ) Net Interest Income After Provision For Losses on Loans 4,093,000 3,444,000 Total Other Income (Noninterest Income) 910,000 961,000 General Administrative and Other Expenses (4,163,000 ) (3,784,000 ) Income Tax (Expense) Benefit 400,000 (5,000 ) Net Profit/Loss Year To Date $ 1,240,000 $ 621,000 Community Valley Bank Wayne D. Gale , President and CEO (760) 352-1889 mediarelations@yourcvb.com Source: Community Valley Bank


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