CMUV CMUV Bancorp (QB)

Community Valley Bank (CVB) is pleased to report that earnings continue at a strong pace. For the second quarter of 2014 net income was $288,000 resulting in the 15th consecutive quarter of profitability. Including a $100,000 valuation allowance credit to taxes, net profit reported for the quarter was $388,000. Year to date total net profit is $778,000.

As of June 30, 2014 total assets were $113 million. Loans grew $8.6 million from year end, ending the second quarter at $83.7 million. Deposits reached $93.6 million, a slight decrease from last year end. Total Equity Capital was $12.5 million with CVB’s equity capital ratio at 11.06%. This is well above the regulatory ratio required to be considered a well-capitalized bank.

During this second quarter the bank reduced its outstanding preferred shares by 25%. On June 30, 2014 CVB repaid $600,000 of the Small Business Lending Fund. “The bank has a capital plan that includes full repayment of the SBLF Preferred Shares by March 31, 2016,” explains Wayne Gale, CVB President and CEO.

CVB continues to see strong SBA loan requests and, as a Preferred Lender, is able to provide fast underwriting approval and funding. This, along with CVB’s array of business banking services, allows CVB to meet the banking needs of the communities served.

Midyear Allowance for Loan and Lease Losses (ALLL) ended at $1.2 million or 1.41% of loans. Board and Management believe the ALLL is fully funded based on the midyear analysis. The bank’s ratio is similar to CVB’s peer bank average providing a strong reserve against potential future losses.

CVB is nearing its seven year anniversary of serving the financial needs of the Imperial and Coachella Valleys. CVB continues to lead the market in rates paid for CDs. It is pleased with the progress made in that time and remains excited about the future potential of the bank.

      June 30, 2014 December 31, 2013 June 30, 2013 Consolidated Financial Condition Data Assets Loans receivable - net $ 82,551,000 $ 73,703,000 $ 69,688,000 Cash and cash equivalents 21,754,000 35,037,000 28,064,000 Investment Securities 1,332,000 1,466,000 787,000 Federal Home Loan Bank Stock 392,000 447,000 447,000 Other Assets 7,190,000 6,950,000 5,463,000 Total Assets $ 113,219,000   $ 117,603,000   $ 104,449,000   Liabilities Deposits 93,781,000 98,164,000 85,855,000 Borrowings (FHLB) 6,000,000 6,000,000 6,000,000 Mortgage Indebtedness 653,000 684,000 714,000 Other Liabilities 263,000 464,000 289,000 Total Liabilities 100,697,000   105,312,000   92,858,000   Preferred Stock 1,800,000 2,400,000 2,400,000 Common Stock 14,312,000 14,298,000 14,287,000 Costs/Dividends (13,000 ) (100,000 ) (57,000 ) Surplus 542,000 537,000 503,000 Total Undivided Profits (4,049,000 ) (4,727,000 ) $ (5,550,000 ) Unrealized Gain/Loss (70,000 ) (117,000 ) 8,000 Stockholder's Equity - net 12,522,000 12,291,000 11,591,000 Total Liabilities and Shareholder Equity $ 113,219,000   $ 117,603,000   104,449,000     June 30, 2014 December 31, 2013 June 30, 2013 Selected Consolidated Earnings Data Total interest income and fees $ 2,694,000 $ 5,420,000 $ 2,627,000 Total interest expense (311,000 ) (712,000 ) (346,000 ) Net interest income 2,383,000 4,708,000 2,281,000 Provision of losses on loans 0   (615,000 ) (525,000 ) Net interest income after provision for losses on loans 2,383,000 4,093,000 1,756,000 Total other income (Noninterest income) 216,000 910,000 741,000 General administrative and other expenses (2,021,000 ) (4,163,000 ) (2,049,000 ) Income tax (expense) benefit 200,000   400,000   0   Net Profit/Loss $ 778,000   $ 1,240,000   $ 448,000  

Community Valley BankWayne D. Gale, President and CEO(760) 352-1889mediarelations@yourcvb.com