community valley bancorp annual report 2006
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Building for your future
community valley bancorp2006 Annual Report
Shareholder Letter ............. 2Profiles ............................... 3Financial Growth ....................42006 Highlights ......................6Discussion and Analysis ......... 8Condensed Statements ........ 12Board of Directors ..............14Management .......................... 15Locations .............................. 16Community Support .................17Our people ........................... 18Corporate Information .........20
Table of Contents:
COMMUN I TY VALLEY
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s Dear Shareholder:
2006 was a year involving great change in our company. It was a year where we performed at the top of our peer group with better than 15% Return on Equity, but suffered the effects of some nonrecurring expenses. These expenses offset the increases in 2006 gross income.
In this year we started to see the fruits of the completion of our expansion in the North State. We opened new branch locations in Corning, Red Bluff, Redding and Marysville. We started the construction of a new branch in Anderson and second branches in both the Redding and Yuba City markets. These additional financial centers should be operational during the second half of 2007. We also started the remodel of our original branch site in Paradise and put into place the Payroll Division outlined last year.
All of these long term goals and investments do come with the related expenses of construction, disruption of services and the cost of staffing and training for the future. Even with this challenge, we were able to enhance our gross revenues. This helped us to overcome the tremendous increase in interest expense by our industry as a result of the many significant increases in the interest rates during the year and the slow down in the housing and construction markets.
The regulatory environment of the last few years saw us having to make the nonrecurring adjustments to the expense allocations for our Employee Retirement Account, ESOP and Option Share expense. These one time assessments were instrumental in our reporting flat earnings per share for the year.
We believe that the recognition of these changes and the investments we continue to make in the future with new branches and experienced bankers to staff them, will pay large benefits as we continue to grow as a premier high performing bank.
Keith RobbinsPresidentChief Executive Officer
Don LeforceChairman of the Board
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Butte Community Bank, a subsidiary of Community Valley Bancorp, is a progressive Northern California bank that combines traditional deposit and lending services with innovative banking solutions. Founded in December, 1990, Butte Community Bank is state-chartered with 13 branches in 10 cities including Chico, Magalia, Oroville, Paradise, Yuba City, Red Bluff, Marysville, Colusa, Corning and Redding. It also operates loan production offices in Citrus Heights and Gridley.
Butte Community Insurance Agency, LLC, a subsidiary of Community Valley Bancorp, is a full-service insurance agency offering all lines of coverage from auto and health to commercial and farm packages. We offer insurance products from industry leaders:
- AIG - Chubb - Golden Eagle- American Modern - Financial Pacific - Hartford - Blue Shield of California - Liberty Mutual - State Compensation Insurance Fund- Blue Cross of California - Lloyd’s of London - Zurich
Butte Community Financial Services, a division of Butte Community Bank, offers the following investment options through LPL Financial Services:
- 401k Rollovers - Estate Planning - Mutual Funds - Annuities - Retirement Planning - Portfolio Management - Asset Allocation Planning - Tax Strategies - Individual Retirement Accounts - Stocks & Bonds - Direct Investments - Education & College Planning
Butte Community Payroll Systems, a division of Butte Community Bank, provides Northern California businesses with all essential payroll and tax services. We offer tax processing for all 50 states, custom reports, fax and online data input, job costing, general ledger service and complete training and support. We stay current on hundreds of regulation changes each year to keep our customers compliant with the ever changing federal, state and local tax laws.
Butte Community Bank and Butte Community Insurance Agency are subsidiaries of Community Valley Bancorp, a financial holding company. Community Valley Bancorp was founded in 2002 to provide a wider range of financial services to the communities it serves. It has headquarters in Chico, California.
Banking products such as checking accounts, savings accounts and certificates of deposit are FDIC insured and are offered through Butte Community Bank, an FDIC member.
Butte Community Bank and LPL Financial Services are not affiliated. Investments available through LPL Financial Services are not insured by the FDIC, or any other regulatory agency, are not deposits or obligations of, nor guaranteed by, Butte Community Bank or any other affiliated entity. Investments are subject to investment risks including loss of the principal invested.
Butte Community Insurance Agency, LLC is a wholly owned subsidiary of Community Valley Bancorp and can process insurance requests for both Butte Community Bank customers and non-customers. Purchasing insurance from Butte Community Insurance Agency is not a condition of obtaining credit at Butte Community Bank.
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deposits
‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
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assets
‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
600,000,000
500,000,000
400,000,000
300,000,000
200,000,000
100,000,000
0
fin
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COMMUN I TY VALLEY
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loans
‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
500,000,000
450,000,000
400,000,000
350,000,000
300,000,000
250,000,000
200,000,000
150,000,000
100,000,000
50,000,000
0
income
‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
8,000,000
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
0
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january february march
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april may june
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october november december
January 20, 2006RecordEarningsfor2005Community Valley Bancorp announced record earnings for the year ended December 31, 2005. The Company achieved earnings of $7.198 million, an increase of 28.3% compared to earnings of $5.610 million for the year ended December 31, 2004. Fourth quarter earnings were $1.855 million, an increase of 26.8% from 2004 fourth quarter earnings of $1.463 million.
February 24, 2006ButteCommunityPayrollSystems The Bank announces the formation of a payroll services division. Butte Community Payroll Systems will provide Northern California businesses with all essential payroll and tax services. Opening in March, the new division will offer tax processing for all 50 states, custom reports, fax and online data input, job costing, general ledger service and complete training and support.
March 15, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 25% increase in its quarterly dividend from $0.04 to $0.05 per share.
April 14, 2006AcceptanceintotheNASDAQCapitalMarketCommunity Valley Bancorp announced its acceptance into The NASDAQ Capital Market under the trading symbol CVLL. The initial trade date was May 1, 2006.
May 25, 2006AnnualShareholdersMeetingIn recognition of the Bank’s 15-Year Anniversary, the 2006 Annual Shareholders Meeting was help at Lakeside Pavilion at California Park in Chico, California.
June 26, 2006NewRedBluffLocationButte Community Bank relocates its Red Bluff branch to 10 Gilmore Road, right across the street from its old location in the Belle Mill Landing shopping center. The purpose-built 4,500 square-foot facility offers full-service banking, including 24-hour ATM and drive-through banking. The Bank leases adjacent space under the same roof to Cingular Wireless and Subway Restaurant.
June 27, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 20% increase in its quarterly dividend from $0.05 to $0.06 per share.
July 31, 2006NewReddingLocationButte Community Bank relocates its Redding branch to 2951 Churn Creek Road, at the corner of Churn Creek and Hartnell. The 6,500 square-foot facility offers full-service banking, commercial lending, government lending and 24-hour ATM.
August 22, 2006OnlineLiveChatServiceIntroducedButte Community Bank announces the installation of live chat service on selected pages of its main website at www.buttecommunity.com. The new system enables Bank customer relations agents to provide live online assistance to website visitors when they request help.
September 15, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 16.7% increase in its quarterly dividend from $0.06 to $0.07 per share.
October 30, 2006NewMarysvilleLocationButte Community Bank moves its Marysville branch to 904 B Street at the new Watermarke Plaza on the east shore of Ellis Lake. The much-anticipated facility offers full-service banking, including 24-hour ATM and drive-through banking.
November 20, 2006NewCorningLocationButte Community Bank relocates its Corning branch to 950 Highway 99W directly across from its previous location. The purpose-built 4,300 square-foot facility offers full-service banking, including 24-hour ATM and drive-through banking.
November 20, 2006BankRanked#1BusinessandIndustryLenderintheNation Butte Community Bank announces that it has been ranked the number one USDA Business and Industry (B&I) Lender in the United States for the fiscal year ending September 30, 2006. Administrative vice president Glenn Rilinger and his staff at the government lending division of Butte Community Bank originated 15 loans totaling over $46.1 million.
December 1, 2006America’sCommunityBankersNASDAQIndex Community Valley Bancorp added to the America’s Community Bankers NASDAQ Index. The index includes 529 community banks with a market capitalization of about $210 billion and is the most broadly representative stock index for the community bank segment of the banking industry.
December 22, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 14.3% increase in its quarterly dividend from $0.07 to $0.08 per share.
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January 20, 2006RecordEarningsfor2005Community Valley Bancorp announced record earnings for the year ended December 31, 2005. The Company achieved earnings of $7.198 million, an increase of 28.3% compared to earnings of $5.610 million for the year ended December 31, 2004. Fourth quarter earnings were $1.855 million, an increase of 26.8% from 2004 fourth quarter earnings of $1.463 million.
February 24, 2006ButteCommunityPayrollSystems The Bank announces the formation of a payroll services division. Butte Community Payroll Systems will provide Northern California businesses with all essential payroll and tax services. Opening in March, the new division will offer tax processing for all 50 states, custom reports, fax and online data input, job costing, general ledger service and complete training and support.
March 15, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 25% increase in its quarterly dividend from $0.04 to $0.05 per share.
April 14, 2006AcceptanceintotheNASDAQCapitalMarketCommunity Valley Bancorp announced its acceptance into The NASDAQ Capital Market under the trading symbol CVLL. The initial trade date was May 1, 2006.
May 25, 2006AnnualShareholdersMeetingIn recognition of the Bank’s 15-Year Anniversary, the 2006 Annual Shareholders Meeting was help at Lakeside Pavilion at California Park in Chico, California.
June 26, 2006NewRedBluffLocationButte Community Bank relocates its Red Bluff branch to 10 Gilmore Road, right across the street from its old location in the Belle Mill Landing shopping center. The purpose-built 4,500 square-foot facility offers full-service banking, including 24-hour ATM and drive-through banking. The Bank leases adjacent space under the same roof to Cingular Wireless and Subway Restaurant.
June 27, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 20% increase in its quarterly dividend from $0.05 to $0.06 per share.
July 31, 2006NewReddingLocationButte Community Bank relocates its Redding branch to 2951 Churn Creek Road, at the corner of Churn Creek and Hartnell. The 6,500 square-foot facility offers full-service banking, commercial lending, government lending and 24-hour ATM.
August 22, 2006OnlineLiveChatServiceIntroducedButte Community Bank announces the installation of live chat service on selected pages of its main website at www.buttecommunity.com. The new system enables Bank customer relations agents to provide live online assistance to website visitors when they request help.
September 15, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 16.7% increase in its quarterly dividend from $0.06 to $0.07 per share.
October 30, 2006NewMarysvilleLocationButte Community Bank moves its Marysville branch to 904 B Street at the new Watermarke Plaza on the east shore of Ellis Lake. The much-anticipated facility offers full-service banking, including 24-hour ATM and drive-through banking.
November 20, 2006NewCorningLocationButte Community Bank relocates its Corning branch to 950 Highway 99W directly across from its previous location. The purpose-built 4,300 square-foot facility offers full-service banking, including 24-hour ATM and drive-through banking.
November 20, 2006BankRanked#1BusinessandIndustryLenderintheNation Butte Community Bank announces that it has been ranked the number one USDA Business and Industry (B&I) Lender in the United States for the fiscal year ending September 30, 2006. Administrative vice president Glenn Rilinger and his staff at the government lending division of Butte Community Bank originated 15 loans totaling over $46.1 million.
December 1, 2006America’sCommunityBankersNASDAQIndex Community Valley Bancorp added to the America’s Community Bankers NASDAQ Index. The index includes 529 community banks with a market capitalization of about $210 billion and is the most broadly representative stock index for the community bank segment of the banking industry.
December 22, 2006QuarterlyDividendIncreasesCommunity Valley Bancorp announced a 14.3% increase in its quarterly dividend from $0.07 to $0.08 per share.
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Management’s Discussion and Analysis Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2006 and 2005.
This condensed discussion and analysis of the Company’s financial position and results of operations should be read in connection with the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.
OverviewNet income was $7,151,000 ($0.98 basic earning per share) for 2006 compared to 2005 earnings of $7,198,000 ($1.00 basic earnings per share). Return on beginning shareholders’ equity was 15.99% in 2006 and 18.82% in 2005. Return on average assets in 2006 and 2005 was 1.38% and 1.51%, respectively.
As of December 31, 2006, total assets were $550 million, or an 11% increase over the $495 million at year end 2005. The Company had portfolio loans totaling $442 million at December 31, 2006, for an increase of $41 million, or 10% over the $401 million at December 31, 2005. Deposits also increased 12% to $485 million from the previous year end total of $434 million. The Company’s continued growth in its branch banking system along with the introduction of new and varied banking products were principal factors in the increased totals.
Net Interest IncomeNet interest income is the difference between total interest income and total interest expense. It is expressed as a percentage of average earning assets and is referred to as net interest margin. It is used to measure the difference between the average rate of interest earned on assets and the average rate of interest that must be paid on liabilities used to fund those assets. The Company’s net interest margin for 2006 was 6.62%, up from 6.32% in the year 2005. During 2006, the Company’s net interest margin improved primarily as a result of the increase in loan volume and the increase in interest rates charged on these loans. On an average basis, the rates on loans increased by 79 basis points resulting in an increase in interest income of $3.7 million. This increase in rates was augmented by the increase in the average volume of loans of $62 million that generated an additional $4.9 million in loan related interest income. During 2006 overall interest income on earning assets increased by $8.4 million. The Company’s mix of deposits changed in 2006 as the average balances of lower cost interest bearing demand deposits declined by $7 million and higher cost certificates of deposit increased by $50 million. The average rates paid on interest bearing deposits for 2006 was 2.33% compared to 1.42% in 2005.
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Non-Interest IncomeNon-interest income of $6.7 million was unchanged over the 2005 total. The primary traditional sources of non-interest income for the Company are service charges on deposit accounts, gains on the sale of loans, loan servicing income, alternative investment fees earned on the sales of non-deposit investment products and merchant credit card fees.
Non-Interest ExpenseThe Company’s total non-interest expense increased to $25 million in 2006, as compared to $21 million in 2005. Refer to the Income Statement in the accompanying Consolidated Financial Statements for a detailed description on non-interest expense.
Salaries and BenefitsSalaries and employee benefits increased in 2006 by $3.2 million, or 25.7% from 2005. These increases were primarily due to normal salary and benefit cost increases, salaries paid to new employees, and increases in compensation costs related to the ESOP.
Other ExpensesOccupancy and equipment expenses were $3,480,000, an increase of $511,000 or 17% when compared to the 2005 total of $2,969,000. Much of the increase in occupancy expense was related to furniture, fixtures and equipment for the new Red Bluff, Redding, Corning, and Marysville branches that were relocated into new facilities during 2006. Expenses representing accounting and other professional fees, telephone and data communications, postage and mail, stationery and supplies, director fees and retirement accruals, advertising and promotion, and other expenses totaled $6,118,000 for 2006 compared to $5,686,000 in 2005. Management considers this increase in expenses commensurate with the growth of the Company.
Provision for TaxesThe effective tax rate for 2006 was 41.6% compared to 40.8% for 2005. The provision for current taxes results from applying the current tax rate to taxable income, and is in essence the actual current income tax liability. Some items of income and expense are recognized in different years for tax purposes than when applying accounting principles generally accepted in the United States of America, however, leading to differences between the Company’s actual tax liability and the amount accrued for this liability based on book income.
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LoansA comparative schedule of outstanding loan balances is presented in Note 3 to the Consolidated Financial Statements. Loan balances net of the allowance for loan losses at December 31, 2006 were $442.2 million, an increase of 18% from the $401.2 million at year-end 2005. This increase, primarily in the real estate lending area, is due to the Company’s decision to continue to concentrate on short-term secured loans.
Risk ElementsThe majority of the Company’s loan activity is with customers located within the service area of its branches or lending offices. Approximately 90% of the total loan portfolio is located within the Company’s service area. Significant concentrations of credit risk may exist if a number of loan customers are engaged in similar activities and have similar economic characteristics. The Company believes that it has policies and procedures in place to monitor, mitigate and identify any concentration of credit risk in the portfolio.
Non-Performing AssetsManagement classifies all loans as non-accrual when they become more than 90 days past due, or earlier when the timely collection of interest or principal becomes questionable. A loan remains in non-accrual status until principal and interest are current for a sufficient period of time and also meets the Company’s cash flow and collateral requirements. When this criterion is not met, the loan is charged-off against the allowance for loan losses, or in the case of real estate loans, is transferred to other real estate. The Company’s non-performing assets as a percent of net loans totaled 0.51% at December 31, 2006 and 0.002% at December 31, 2005.
Allowances for Loan LossesThe provision for loan losses charged to operations is based on the Company’s monthly evaluation of the loan portfolio and the adequacy of the allowance in relation to total loans outstanding. The provision for loan losses amounted to $775,000 in 2006 and $724,000 in 2005. This change in the provision is a reflection of the growth in total loans and management’s evaluation and assessment of the loan portfolio. The Company maintains a separate allowance for losses related to undisbursed loan commitments. Management estimates the amount of probable losses by applying the loss factors used in the allowance for loan loss methodology to an estimate of the expected usage and applies the factor to the unused portion of undisbursed lines of credit. The allowance totaled $619,000 and $481,000 at December 31, 2006 and 2005, respectively, and is included in accrued interest payable and other liabilities on the balance sheet. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can reasonably be anticipated. The allowance and relevant changes are shown in Note 3 to the
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Consolidated Financial Statements. At December 31, 2006 the allowance for loan losses was $5.3 million or 1.18% of total loans, compared to $4.7 million or 1.16% in 2005. The Company recorded net charge-offs of $80,000 in 2006 compared to net charge-offs of $8,000 in 2005. The continued low level of charge-offs compared to industry standards reflects the Company’s sound underwriting policies and collection procedures.
Capital The Company and the Bank are subject to certain regulatory capital requirements administered by the FDIC. The FDIC has adopted risk-based capital guidelines which establish a risk-adjusted ratio relating capital to various categories of assets and off balance sheet exposures. The table showing the FDIC required ratios and the Company’s and the Bank’s actual ratios are shown in the Consolidated Financial Statements in Note 11. At December 31, 2006, the Company’s total risk-based capital ratio was 11.9%, the Tier 1 risk-based capital was 10.9% and the leverage capital ratio was 10.1%. All ratios exceed the minimum guidelines of 8%, 4% and 4% respectively. The ratios at December 31, 2005 were 12.5%, 11.4% and 9.8%, respectively.
Liquidity ManagementThe Bank’s liquidity is determined by the level of liquid assets (such as cash, federal funds sold and securities classified as available for sale) that are convertible to cash to meet customer withdrawal and borrowing needs. The Company’s asset and liability policy is used to monitor and determine liquidity needs. At December 31, 2006, the Company’s liquidity ratio (cash, fed funds, and securities) as a percentage of total liabilities was 13% as compared to 12% at December 31, 2005.
Asset and Liability ManagementThe objective of asset and liability management is to manage the sensitivity of net interest rate spreads to changes in interest rates. Management also attempts to balance risk with profitability. Interest rate sensitivity measures the difference in both the timing and amount at which certain assets and liabilities are re-priced. The Company historically maintains the majority of its assets and liabilities with relatively short maturities to protect its net interest income from major shifts in rates.
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Condensed Consolidated Balance Sheets (in thousands) YearEndedDecember31, 2006 2005
Assets: Cash and cash equivalents $62,628 $48,003 Securities 5,127 6,676 Net loans, including loans held for sale 443,041 403,418 Other assets 39,241 36,680 Totalassets $550,037 $494,777 Liabilities and shareholders’ equity: Deposits $484,856 $434,018 Borrowings 1,217 1,782 Other liabilities 18,237 17,422 Totalliabilities 504,310 453,222 Shareholders’ equity 45,727 41,555 Totalliabilitiesandshareholders’equity $550,037 $494,777
Condensed Consolidated statements of income(in thousands, except per share data) YearEndedDecember31, 2006 2005 2004 Interest income $40,814 $32,438 $24,980 Interest expense 9,532 5,331 4,056 Netinterestincome 31,282 27,107 20,924
Provision for loan losses 775 724 734 Noninterest income 6,769 6,711 6,018 Operating expense 25,023 20,925 16,795 Income before provision for income taxes 12,253 12,169 9,413 Provision for income taxes 5,102 4,971 3,803
Netincome $7,151 $7,198 $5,610
Net income per share, basic $0.98 $1.00 $0.79 Net income per share, diluted $0.93 $0.95 $0.74 Shares used to compute net income per share, basic 7,280 7,166 7,112 Shares used to compute net income per share, diluted 7,680 7,612 7,601 Dividends paid per share $0.22 $0.16 $0.15
These are unaudited condensed financial statements that have been derived from the audited financial information and should be read in conjunction with the full consolidated financial statements of the Company in its Annual Report on Form 10-K
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Condensed Consolidated statements of changes in shareholders’ equity(in thousands) YearEndedDecember31, 2006 2005 2004 Beginningbalance $41,555 $34,531 $29,949
Exercise of stock options 1,000 1,039 532 Cash dividends (1,933) (1,092) (1,097)Earned ESOP shares 609 251 180 Shares acquired by ESOP (354) (348) (150)Changes in unrealized gain (loss) on securities available for sale 22 (24) 9 Stock Option Expense 175 Repurchase and retirement of common stock (2,498) (502)Net income 7,151 7,198 5,610 Endingbalance $45,727 $41,555 $34,531
Condensed Consolidated statements of cash flows (in thousands)
YearEndedDecember31, 2006 2005 2004
Cash flows from operating activities: Net income $7,151 $7,198 $5,610 Adjustments to reconcile net income to net cash provided by operations 2,936 2,892 5,788 Netcashprovidedbyoperatingactivities 10,087 10,090 11,398 Cash flows from investing activities: (Purchases) and sales or maturities of securities, net 5,935 2,341 (3,446) Net increase in loans made to customers (41,361) (62,477) (69,722) Other, net (6,820) (5,187) (1,908) Netcashusedininvestingactivities (42,246) (65,323) (75,076) Cash flows from financing activities: Net increase in deposits 50,838 34,959 56,548 ESOP note, net (119) (199) (149) Dividends paid (1,637) (1,069) (1,089) Cash paid for fractional shares (6) Proceeds from exercise of stock options 1,000 527 284 Repurchase of common stock (2,498) (502) Proceeds from note payable (800) 800 Net cash provided by financing activities 46,784 35,018 55,086
Decrease in cash and cash equivalents 14,625 (20,215) (8,592) Cash and cash equivalents at beginning of year 48,003 68,218 76,810 Cashandcashequivalentsatendofyear $62,628 $48,003 $68,218
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M. Robert Ching, MDOrthopedic Surgeon
John CogerExecutive Vice President, Chief Financial Officer and Chief Operating Officer of Butte Community Bank and Community Valley Bancorp.
Eugene B. EvenRetired
John D. LanamRetired
Donald W. LeforceChairman of the Board. Retired. Past President and Secretary/Treasurer of Compass Equipment, Inc., a distributor of mining and heavy construction equipment.
Charles MathewsOwner of Mathews Farms since 1965 and partner in Mathews Rice Dryer since 1980.
Ellis L. MatthewsRetired
Luther McLaughlin, CPA Certified Public Accountant, an owner and past president of Matson & Isom, a public accountancy corporation.
Robert L. Morgan, MD Retired
James S. RickardsSecretary. Real Estate Broker associated with Century 21 Select.
Keith RobbinsPresident and Chief Executive Officer of Butte Community Bank and Community Valley Bancorp.
Jack B. SchmelkeEmeritus
Gary B. Strauss, MDVice Chairman / Retired
Hubert TownshendRetired. Formerly involved in general engineering, contracting and equipment rental.
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Executive GroupKeithRobbins President/Chief Executive Officer
JohnCoger Executive Vice President/Chief Financial Officer and Chief Operating Officer
BruceBarnett Senior Vice President/Chief Information Officer
Roger Janis Senior Vice President/Area Administrator
Steve Johnson Senior Vice President/RE Development and Risk Management
Craig Larson Senior Vice President/Chief Lending Officer
Russ Wittmeier Senior Vice President/Product Development Executive
Debbie Miley Administrative Vice President/Operations and HR Administrator
Brad Rudkin Administrative Vice President/Branch Banking Executive
Administrative ManagementGayle Lee Senior Vice President/Controller
Beverly Brinker Administrative Vice President/Audit Compliance Manager
Kash Gill Administrative Vice President/Regional Manager
Michelle Beich Vice President/Note Department Manager
Lee Brown Vice President/Special Assets Manager
Jeri Cerrato Vice President/Credit Services Manager
Jeff Collins Vice President/Technology Officer
Barbara Crouse Vice President/Senior Financial Officer
Phil Papeman Vice President/Director of Web Services
Jim Wabs Vice President/Staff Appraiser
Julia Wilson Vice President/Electronic Banking Manager
Carla Geyer Assistant Vice President/Executive Assistant
Becky Hard Assistant Vice President/Systems Administrator
Patti Hernandez-Reeson Assistant Vice President/Security Officer
Deanna McKillop Assistant Vice President/Call Center Operations Manager
Kim Schreckengost Assistant Vice President/Real Estate Department Manager
Beth Turner Assistant Vice President/HR Manager
Bank Branch ManagementCheryl Almeida Vice President/Regional Branch Manager
Laurie Beibers Vice President/Branch Manager - Senior Commercial Lender
Cindy Brown Vice President/Branch Manager
Rosemary Daoust Vice President/Branch Manager
Cindy Fisher Assistant Vice President/Branch Manager
Diane Modes Vice President/Branch Manager
Janet Olsen Vice President/Branch Manager
Katy Thoma Vice President/Branch Manager
Andrea White Vice President/Branch Manager
Margaret Corona Assistant Vice President/Branch Manager
Manny Phagura Assistant Vice President/Branch Manager
LendingGlenn Rilinger Administrative Vice President/SBA and Commercial Loans
Doug Weigand Administrative Vice President/Commercial Lender
Kevin Kaiser Corporate Vice President/Senior Commercial Lender
Marcy Sutcliffe Corporate Vice President/Senior Commercial Lender
Joel Arnold Vice President/Senior Commercial Lender
Erika Bender Vice President/Senior Commercial Lender
Ruth Gildea Vice President/Commercial Loan Officer
Roger Hart Vice President/Senior Commercial Lender
Bob Hetherwick Vice President/Commercial Loan Officer
Tim James Vice President/Senior Construction Lender
Steve Montandon Vice President/Senior Commercial Lender
Butte Community Financial ServicesJadee Carter Vice President/LPL Registered Representative
Ellen Hunt Assistant Vice President/LPL Registered Principal
Butte Community Insurance AgencyDee Sousa Agency Manager/Commercial Agent
Butte Community Payroll SystemsScott Reynolds Manager
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Full-Service Northern California BranchesChicoCentral900 Mangrove Ave, Chico, CA 95926(530) 891-9000
ChicoNorth237 West East Ave, Chico, CA 95926(530) 899-2347
ChicoSouth2041 Forest Ave, Chico, CA 95928(530) 891-3494
Colusa1017 Bridge St, Colusa, CA 95932(inside Holiday Quality Foods)(530) 458-5430
Corning950 Highway 99W, Corning, CA 96021(530) 824-3966
Magalia14001 Lakeridge Cir, Magalia, CA 95954(inside Holiday Quality Foods)(530) 873-6854
Marysville904 “B” St, Marysville, CA 95901(530) 741-0210
Oroville2227 Myers St, Oroville, CA 95966(530) 532-0800
ParadiseNorth6653 Clark Rd, Paradise, CA 95969(530) 877-2506
ParadiseSouth672 Pearson Rd, Paradise, CA 95969(530) 877-0857
RedBluff10 Gilmore Rd, Suite C, Red Bluff, CA 96080(530) 528-3060
Redding2951 Churn Creek Rd, Redding, CA 96002(530) 722-0295
YubaCity1600 Butte House Rd, Yuba City, CA 95993(530) 751-2700
Loan Production OfficesCitrusHeights5959 Greenback Ln #450, Citrus Heights, CA 95621(916) 728-1600
Gridley1010 Spruce St, Gridley, CA 95948(530) 846-3472
DepartmentsButteCommunityInsuranceAgency936 Mangrove Ave, Chico, CA 95926(530) 893-1466
GovernmentLending936 Mangrove Ave, Chico, CA 95926(530) 332-9120
ButteCommunityFinancialServices936 Mangrove Ave, Chico, CA 95926(530) 892-4968
ButteCommunityPayrollSystems2041 Forest Ave, Chico, CA 95928(530) 899-1636
CommunityValleyBancorpStanton Center1360 East Lassen Ave, Chico, CA 95973(530) 566-1059
Redding
Red Bluff
Corning
Magalia
Paradise
Chico
Oroville
GridleyLPO
Colusa
Yuba CityMarysville
Citrus Heights LPO
SACRAMENTO
80
5
5
505
99
99
70
20
32
70
COMMUN I TY VALLEY
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Aaron Rodgers Golf “Fore” Kids Tournament
American Cancer Society Relay for Life
Arbuckle Train Depot BBQ and Car Show
The ARC of Butte County
Bidwell Generals 2006 Annual Show
Big Brothers Big Sisters of Butte County
Boys & Girls Club of Chico
Boys & Girls Club of the North Valley
Butte College Golf Tournament
Butte County Library Literacy Programs
Butte College Women’s Basketball
California Department of Forestry and Fire Protection
California State University, Chico
California Waterfowl Association
Canyon Oaks Women’s Golf Tournament
Chico AquaJets Swim Team
Chico Challenger Division Baseball
Chico Concours d’Elegance
Chico FFA Booster Club
Chico High School Grad Night
Chico Jesus Center
Chico Merchants Senior Softball
Chico Rooks Pro Soccer Foundation
Children’s Hope Foster Agency
Colusa County Fair
Colusa Parks and Community Services
Corning Car Show
Corning Hometown Christmas
Corning Olive Festival
Corning Youth Soccer League
CP Auto Racing Team
Cruisin’ Classics of Paradise Car Show
Dog Days of Fall Poker Walk
Enloe Foundation
Fairview High School
Farm City Celebration
Fremont-Rideout Hospice Program
Glenn County Fair Junior Livestock Auction
Gold Nugget Days
Gridley Education Foundation
Innovative Preschool
Jeff Stover Classic
KALF St. Jude Children’s Hospital Radiothon
Kiwanis Club Lobster Dinner
Lighthouse Christian School
Magalia Car Show 2006
Magalia Community Thanksgiving Dinner
Marysville Community Auditorium
Nelson Avenue Middle School
Northen California Ballet
North State CEO, Entrepreneur and Innovation Forum
North State Venture Forum
North Valley Community Foundation
Oroville Chamber of Commerce
Oroville Golf Foundation
Oroville Soccer League
Oroville SPCA
Pink Ribbon Open
Ponderosa Elementary School
Quota Club of Gridley
Red Bluff Round Up
Redding Air Show 2006
Redding Blackbird Spy Pilots
Redding Chamber of Commerce Industrial BBQ
Redding Haven Humane Society
Richfield Volunteer Fire Department
Shasta County Women’s Refuge
Skyway House
Snow Goose Festival
Sunshine Kids “Non-Golf” Tournament
Valley Contractors Exchange Golf Tournament
Youth for Change
Yuba-Sutter Chamber of Commerce
Commun i t y Valley Bancorp is comm i t ted to t he Northern Cal iforn i a c i t ies t ha t i t serves . Follow ing are j ust some of t he f i ne organ izat i ons t ha t we helped i n 2006 .
COMMUN I TY VALLEY
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Abdulmasih, Rita
Akers, Leslie
Aldama, Megan
Allison, Darren
Allison, Doreen
Almeida, Cheryl
Altamirano, Cindy
Andrade, Janet
Aragon, Estee
Arechar, Lesley Ann
Arnold, Joel
Aspromonte, Shellie
Azevedo, Vicki
Baker, Tyler
Bales, Teresa
Barbo, Terry
Barnes, Diane
Barnett, Bruce
Bass, Tanika
Beams, Stacy
Becraft, Molly
Becraft, Tara
Beebe, Cathy
Beibers, Laurie
Beich, Michelle
Bender, Erika
Berge, Chris
Berry, Peggy
Bondza, Suzana
Bowman, Brea
Bravo, Humberto
Bravo, Jose
Brinker, Beverly
Brown, Cindy
Brown, Lee
Brunelli, Rita
Brunello, Tammera
Buccola, Joe
Burns, Megan
Byrne, Jacqueline
Camolinga, Sylvia
Campbell, Beau
Campos, Jose
Carter, Jadee
Cartoscelli, Angela
Cast, Suzanne
Cerrato, Jeri
Chiotti, Danielle
Clark, Roger
Clausen, Kristina
Coffelt, Jake
Coffelt, Josh
Coger, John
Coger, Megan
Collins, Jeff
Conard, Margo
Conner, Jill
Cornell, Shannon
Corona, Margaret
Cromwell, Sam
Crook, Angela
Crouse, Barbara
Cupido, Katherine
Dahl, Tina
Daoust, Rosemary
Davis, Linda
Dillard, Cindy
Dipasqua, Debbie
Dodge, Kelley
Dolan, Jenny
Ellis, Ashley
Ernenwein, Justin
Esparza-Smith, Kristina
Evans, Joi
Fawns, Denise
Feazel, Betsi
Fellner, Andreas
Fisher, Cindy
Flores, Debbie
Flynn, Carly
Foreman, Jaclyn
Forlini, J. Todd
Franco, Eva
Franco, Gina
Gard, Becky
Garza, Amanda
Gates, Linda
Geyer, Carla
Gildea, Ruth
Gill, Harveen
Gill, Kashmir
Gonzalez, Mark
Graham, Rusty
Green, Cynthia
Grider, Eileen
Grimmett, Lisa
Guttierrez, Amanda
Haldorson, Sherri
Hall, Brenna
Hamblin, Deboragh
Hard, Becky
Hardesty, Brenda
Harnish, Julie
Hart, Roger
Haver, Natalie
Hayes, Marilyn
Heindell, Catherine
Helberg, Dixie
Henker, Kerry
Henshaw, Renee
Hernandez, Abel
Hernandez-Reeson, Patti
Herndon, Jeannette
Hetherwick, Bob
Hetherwick, Melissa
Hiell, Donna
Hill, Judy
Hill, Windy
Hoffie, Audrey
Hoffmann, Heather
Holland, Kathy
Hollingsworth, Kelly
Hollstrom, Krista
Holt, Brian
Hoofard, Francine
Hopper, Christina
Howarth, Aubrey
Howder, Lilia
Humlick, Cindy
Hunt, Ellen
Hunter, Andrea
Hutcheson, Shiloh
Isham, Shirley
Jackson, Helen
James, Tim
Janis, Roger
Jarboe, Curt
Jernigan, Crystal
Johnson, Steve
Jones, Jessica
Jones, Lynsie
Juanarena, Andrea
Juanarena, Susan
Kaiser, Kevin
Kearbey, Ashley
Keller, Jane
Kemp, Ashley
Kemp, Stacy
Kimbler, Jennifer
Kirk, Jerry
Klemens III, Anton
Klemens, Jill
Koehn, Patricia
COMMUN I TY VALLEY
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Konuwa, Anani
Kremer, Emmalee
Laizure, Tammy
Landis, Larry
Larson, Craig
Larson, Heidi
Lee, Gayle
Lee, Lizette
Lee, Natalie
Leen, Donald
Lehman, Darcie
Lehman, Richard
Lobban, Natalie
Lobo, Wes
MacNeill, Christina
Mandigo, Lindsey
Manion, Myles
Mansfield, Dawn
Martinez, Tammi
Matulich, Vicky
McCain, Sandy
McCarthy, Rhonda
McClure, Melanie
McDonald, Jennifer
McFall, Patricia
McGrath, Penny
McKillop, Deanna
Medina, Gabriel
Medina, Kari
Medrano, Melissa
Mercer, Annette
Mescher, Jill
Michael, Ellen
Milco, Kathy
Miles, Dee
Miley, Debbie
Miley, Jeff
Miley, Justin
Modes, Diane
Monson, Amy
Montandon, Stephen
Moody, Steve
Moreland, Sierra
Morris, Kristy
Mussmann, Michelle
Nichols, Dana
Norris, Dixie
Novo, Cari
O’Brien, Amy
Olsen, Janet
O’Neill, Lanaee
Paieri, Twyla
Paniagua, Letty
Papeman, Philip
Patterson, Amanda
Peterson, Mike
Phagura, Manny
Pineda, Anthony
Polk, David
Preecs, Carole
Presley, Liz
Price, Ben
Pritchett, William
Pruitt, Nicole
Pusch, Michelle
Ramirez, Jeannette
Reeson, Kelly
Reinbold, David
Renlund, Kate
Reyes, Christy
Reynolds, Scott
Ridley, Betty
Rilinger, Carley
Rilinger, Glenn
Rilinger, Mandy
Robbins, Keith
Robertson, Calum
Robison, Keaton
Rohleder, Ashley
Roldan, Ana
Romanshek, Kevin
Rudkin, Brad
Ryan, Alaina
Salcido, Katie
Sandow, Rachel
Schneider, Trine
Schreckengost, Kim
Sellers, Barbara
Shannon, Kate
Shields, Robin
Shores, Linda
Silver, Cori
Simon, Julieanna
Skelly, Heather
Slocum, Patty
Smith, Brian
Smith, Diana
Smith, Suzy
Soto, Adriana
Sousa, Dee
Spencer, Jim
Spencer, Lorinda
Stanton, Gary
Steele, Daniel
Stephens, Diane
Sutcliffe, Marcy
Sweeney, Britney
Taylor, Bruce
Taylor, Yolinda
Thoma, Katy
Thompson, Beverly
Thornton, Beverly
Timm, Patti
Traynor, Rhonda
Turner, Beth
Valdez, Mary
Vanderlinde, Carole
Vaughn, Mary
Vaught, Rebecca
Vega, Mona
Versola, Marquesa
Wabs, Jim
Wagner, Pam
Walker, Tawny
Webb, Shirley
Webster, Kelly
Weigand, Adam
Weigand, Doug
Welch, Brenda
Wharff, Lisa
White, Andrea
White, Brandy
Whittaker, Abigail
Wilkerson, Teresa
Williams, Jeremy
Williams, Therese
Willis, Amanda
Wilson, Becky
Wilson, Joanne
Wilson, Julia
Wilson, Lauren
Wilson, Linda
Wilson, Logan
Wittmeier, Russ
Wolter, Heather
Wolter, Niki
Woolsey, Ashley
Wright, Lori
Xiong, Pang
302 employees as of March 1, 2007.
COMMUN I TY VALLEY
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Inf
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nShareholder RelationsGayleLee Senior Vice President/ControllerCommunity Valley Bancorp6653 Clark RdParadise, CA 95969(530) 877-2506 x3161glee@communityvalleybancorp.com
Stock ListingSymbol: CVLLMarket: NASDAQ-CM
Transfer AgentU.S.StockTransferCorporation1745 Gardena Ave, Suite 200Glendale, CA 91204-2991(818) 502-1404www.usstock.com
Independent AccountantsPerry-SmithLLP400 Capitol Mall, Suite 1200Sacramento, CA 95814(916) 441-1000www.perry-smith.com
HeadquartersCommunityValleyBancorpStanton Center1360 East Lassen AveChico, CA 95973(530) 566-1059
ButteCommunityBankStanton Center1360 East Lassen AveChico, CA 95973(530) 566-1059
ButteCommunityFinancialServices936 Mangrove AveChico, CA 95926(530) 892-4968
ButteCommunityInsuranceAgency936 Mangrove AveChico, CA 95926(530) 893-1466
ButteCommunityPayrollSystems2041 Forest AveChico, CA 95928(530) 899-1636
Market MakersJohnCavenderHowe Barnes Hoefer & Arnett, Inc.555 Market St, 18th FloorSan Francisco, CA 94105(415) 538-5725www.howebarnes.com
DaveBonaccorsoKeefe, Bruyette & Woods, Inc. 101 California St, Suite 3700 San Francisco, CA 94111(415) 591-5060 www.kbw.com
ChrisMunchSandler O’Neill & Partners, LP919 Third Ave, 6th FloorNew York, NY 10022(212) 466-8027www.sandleroneill.com
TroyNorlander&MichaelNatzicThe Seidler Companies, IncPO Box 1688Big Bear Lake, CA 923151-800-288-2811www.seidlercos.com
JoeyWarmenhovenWedbush Morgan Securities4949 SW Meadows Rd, Suite 100Lake Oswego, OR 970351-800-357-3680
InternetCommunityValleyBancorpwww.communityvalleybancorp.com
ButteCommunityBankwww.buttecommunity.com
ButteCommunityInsuranceAgencywww.buttecommunityinsurance.com
ButteCommunityFinancialServiceswww.buttecommunityfinancial.com
ButteCommunityPayrollSystemswww.buttecommunitypayroll.com
Community Valley Bancorp
1360 EAst Lassen AVe.Chico Ca 95973
www.communityvalleybancorp.comwww.buttecommunity.com
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