community valley bancorp annual report 2005
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Community Valley Bancorp Annual Report 2005TRANSCRIPT
Community Valley Bancorp Annual Report 2005
fifteen years of excellence
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Letter to Shareholders .........................................3
Profile ...................................................................5
Financial Growth ............................................ 6-7
Discussion & Analysis ................................... 8-11
Condensed Statements ................................ 12-13
Board of Directors ....................................... 14-15
Management Team ..................................... 16-17
Bank Locations ............................................ 18-19
Our People ................................................... 20-21
Community Support ................................... 22-23
Corporate Information ......................................24
Table of Contents
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Secure Financial Growth
As of December 31, 2005, total assets were $495 million, or a 10% increase over the $450 million at year end 2004. Deposits also increased 9% to $434 million in 2005.
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Dear Shareholder:
2005 represents our completion of 15 full years of providing first class community
banking to the North State. We can look back at great accomplishments and great
financial results for all concerned. A central theme of our success is that we continue
to innovate and develop new products and services that meet and exceed the
financial needs of the communities we serve.
Since its launch in December 2004, CVB Insurance Agency has secured multiple
appointments with the best insurance providers in the industry. This has enabled
Community Valley Bancorp to offer competitive insurance products that meet every
personal and business requirement.
In 2005 we enhanced our collection of commercial services by creating Butte
Community Payroll Systems, a division of Butte Community Bank that provides
Northern California businesses with all essential payroll and tax services. As we
develop these new products, our Bank maintains its growth and Community Valley
Bancorp continues to produce record earnings.
Also in 2005, we opened our first Redding branch and began construction of a
second Redding office. Plans are also underway to build new branches in Red Bluff,
Corning and Marysville to further expand our footprint in these communities.
For the 14th year in a row we have been recognized as a Super Premier Performing
bank by The Findley Reports. Community Valley Bancorp is committed to providing
a broad spectrum of financial services to our customers. We firmly believe that this
strategy will pay great dividends for years to come.
Keith Robbins
President
Chief Executive Officer
Donald Leforce
Chairman of the Board
To Our Shareholders
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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.
CVB 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 CVB Insurance Agency is not a
condition of obtaining credit at Butte Community Bank.
15 Years of Super Performance
Butte Community Bank has received the highest designation of Super Premier Performing Bank from The Findley Reports every year since the bank’s ratings began in 1992.
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Profile
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.
From Community Workshops to complex
construction loans, Butte Community Bank’s
mix of traditional and progressive financial
services is second to none in the markets
we serve. Our status as a Small Business
Administration (SBA) Preferred Lender
coupled with our position as a top-ranked
USDA Business & Industry Lender makes us
the #1 choice for business and commercial
financing. Butte Community Bank also
operates a progressive merchant services
department, a real estate loan division and
an investment center.
CVB 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.
As your one-stop insurance source, we can
ensure you get the greatest insurance value
for your dollar. Plus, by staying with CVB
Insurance, you save time and money
because you can compare plans again
anytime in the future.
Now you can insure your business with a
wide variety of products from top-name
companies such as Zurich, Hartford, Blue
Shield, Chubb, Liberty Mutual and Lloyd’s of
London.
Butte Community Financial Services, a
division of Butte Community Bank, offers
the following investment options through
LPL Financial Services:
• 401k Rollovers • Annuities • Asset Allocation Planning • Stocks & Bonds • Tax Strategies • Education & College Planning • Estate Planning • Mutual Funds • Portfolio Management • Retirement Planning • Individual Retirement Accounts
Butte Community Payroll Systems, the
newest 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
Payroll Systems assumes full responsibility
for the accuracy and timely filing of all your
business payroll tax deposits.
Butte Community Bank and CVB Insurance
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.
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1991(321,000)24,632,00021,649,00018,246,000
1993645,00044,754,00040,283,00034,916,000
1992559,00035,592,00031,983,00027,921,000
1994758,00056,525,00051,147,00038,561,000
IncomeAssets
DepositsLoans
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Financial Growth
19951,017,00072,275,00065,607,00054,220,000
19992,223,000158,167,000142,876,000 118,411,000
Income
Assets
Deposits
Loans
19971,409,000118,419,000108,253,00089,738,000
20013,811,000272,464,000246,420,000197,875,000
20035,269,000386,723,000342,511,000 270,231,000
19961,225,00089,391,00081,586,00064,381,000
20003,046,000214,066,000194,131,000172,412,000
19982,131,000144,601,000131,779,000107,279,000
20024,850,000337,483,000297,981,000229,699,000
20045,610,000449,675,000399,059,000339,174,000
20057,198,000 494,777,000 434,018,000 401,221,000
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Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2005 and 2004.
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Discussion & Analysis
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, 2005.
OverviewNet income was $7,198,000 ($1.00 basic
earnings per share) for 2005 compared to
2004 earnings of $5,610,000 ($0.79 basic
earnings per share). Return on beginning
shareholders’ equity was 18.82% in 2005 and
17.20% in 2004. Return on average assets
in 2005 and 2004 was 1.51% and 1.34%,
respectively.
As of December 31, 2005, total assets were
$495 million, or a 10% increase over the
$450 million at year end 2004. The Company
had portfolio loans totaling $401 million at
December 31, 2005, for an increase of $62
million, or an 18% increase over the $339
million at December 31, 2004. Deposits
also increased 9% to $434 million from the
previous year end total of $399 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 2005 was 6.32%, up
from 5.70% in the year 2004. During 2005,
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 43 basis points resulting in an
increase in interest income of $1.7 million.
This increase in rates was augmented by
the increase in the average volume of loans
of $69 million that generated an additional
$5.2 million in loan related interest income.
During 2005 overall interest income on
earning assets increased by $7.5 million. Due
to the favorable changes in the Company’s
mix of deposits from the growth in average
balances of NOW, savings and money
market accounts, the Company was able to
increase the overall level of deposits while
controlling interest expense. The average
rates paid on interest bearing deposits for
2005 was 1.42% compared to 1.22% in 2004.
Non-Interest IncomeNon-interest income of $6.7 million
increased $700,000 over the 2004 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 $20.9 million in 2005, as
compared to $16.8 million in 2004. Refer to
the Income Statement in the accompanying
Consolidated Financial Statements for a
detailed description of non-interest expense.
Salaries and BenefitsSalaries and employee benefits increased in
2005 by $2.3 million, or 22.9% from 2004.
This increase resulted from normal cost
of living raises, salaries paid to employees
for a full year in 2005 at the three new
branch offices opened in 2004 in Red Bluff,
Marysville and Colusa as well as the branch
office in Corning opened in March, 2005
and the branch office opened in Redding
in September, 2005. We also opened a Loan
Production Office in the city of Gridley
in July, 2005. Commissions paid to Butte
Community Bank’s Real Estate Loan agents
and staffing additions made during the year
as the Company continued to grow also
contributed to the increase.
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Provision for TaxesThe effective tax rate for 2005 was 40.8%
compared to 40.4% for 2004. 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.
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, 2005 were $401.2 million,
an increase of 18% from the $339.5 million
at year-end 2004. 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 0.002% at
December 31, 2005 and 0.03% at December
31, 2004.
Other ExpensesOccupancy and equipment expenses were
$2,969,000, an increase of $444,000 or
18% when compared to the 2004 total
of $2,525,000. Much of the increase in
occupancy expense was related to furniture,
fixtures and equipment for the new Red
Bluff, Marysville, and Colusa branches
opened during 2004, and the Corning and
Redding branch offices opened in 2005.
The lease agreements and remodeling costs
associated with these offices, also added to
the year over year increase.
Expenses representing telephone and
data communications, postage and mail,
stationery and supplies, director fees
and retirement accruals, advertising and
promotion, and other expenses totaled
$4,651,000 for 2005 compared to $3,657,000
in 2004. Management considers this increase
in expenses commensurate with the growth
of the Company.
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Discussion & Analysis (cont.)
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 $724,000 in 2005
and $734,000 in 2004. 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 $481,000 and
$381,000 at December 31, 2005 and 2004,
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 Consolidated
Financial Statements. At December 31,
2005 the allowance for loan losses was $4.7
million or 1.16% of total loans, compared
to $4.0 million or 1.16% in 2004. The
Company recorded net charge-offs of $8,000
in 2005 compared to net recoveries of $4,000
in 2004. 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, 2005, the Company’s
total risk-based capital ratio was 12.5%, the
Tier 1 risk-based capital was 11.4% and the
leverage capital ratio was 9.8%. All ratios
exceed the minimum guidelines of 8%, 4%
and 4% respectively. The ratios at December
31, 2004 were 12.5%, 11.3% and 9.5%,
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, 2005, the
Company’s liquidity ratio (cash, fed funds,
and securities) as a percentage of total
liabilities was 12% as compared to 18% at
December 31, 2004.
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) Year Ended December 31, 2005 2004
Assets: Cash and cash equivalents ......................................................... $48,003 ....................................... $68,218 Securities ........................................................................................... 6,676 ........................................... 6,961 Net loans, including loans held for sale .................................... 403,418 ....................................... 341,045 Other assets .................................................................................... 36,680 ......................................... 33,832 Total assets ............................................................................... $494,777 .................................... $450,056
Liabilities and shareholders’ equity: Deposits ..................................................................................... $434,018 ..................................... $399,059 Borrowings ....................................................................................... 1,782 .............................................. 833 Other liabilities ............................................................................. 17,422 ......................................... 15,633 Total liabilities ........................................................................... 453,222 .......................................415,525 Shareholders’ equity ...................................................................... 41,555 ......................................... 34,531 Total liabilities and shareholders’ equity ............................ $494,777 .................................... $450,056
Condensed Consolidated Statements of Income(in thousands, except per share data) Year Ended December 31, 2005 2004 2003
Interest income ..................................................................................... $32,438 ................$24,980 ......... $21,517Interest expense ........................................................................................ 5,331 .................... 4,056 ............. 4,396Net interest income ...............................................................................27,107 ................. 20,924 ...........17,121
Provision for loan losses ............................................................................. 724 ...................... 734 ................ 586Noninterest income .................................................................................. 6,711 .................... 6,018 ............. 5,950Operating expense .................................................................................. 20,925 ..................16,795 ........... 13,887
Income before provision for income taxes .......................................... 12,169 .................... 9,413 ............. 8,598Provision for income taxes ...................................................................... 4,971 .................... 3,803 ............. 3,329
Net income .............................................................................................$7,198 ................. $5,610 ...........$5,269
Net income per share, basic .................................................................... $1.00 .................... $0.79 ............. $0.75Net income per share, diluted ................................................................. $0.95 .................... $0.74 ............. $0.71Shares used to compute net income per share, basic .......................... 7,166 .................... 7,112 ............. 7,025Shares used to compute net income per share, diluted ...................... 7,612 .................... 7,601 ............. 7,431Dividends paid per share ......................................................................... $0.16 .................... $0.15 ............. $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 Statements
Condensed Consolidated Statements of Cash Flows(in thousands) Year Ended December 31, 2005 2004 2003
Cash flows from operating activities: Net income ..................................................................................... $7,198 ..................$5,610 ........... $5,269 Adjustments to reconcile net income to net cash provided by operations ........................................... 2,892 .................... 5,788 ............. 5,717 Net cash provided by operating activities ...............................10,090 ................. 11,398 ...........10,986
Cash flows from investing activities: (Purchases) and sales or maturities of securities, net ................. 2,341 ................. (3,446) .......... (4,853) Net increase in loans made to customers ................................ (62,477) ...............(69,722) ........ (41,383) Other, net ....................................................................................... (5,187) ................. (1,908) .......... (4,469) Net cash used in investing activities .................................... (65,323) ..............(75,076) ....... (50,705)
Cash flows from financing activities:Net increase in deposits ......................................................................... 34,959 ..................56,548 ........... 44,531
ESOP note, net ................................................................................. (199) .................... (149) ............. (221) Dividends paid .............................................................................. (1,069) ................. (1,089) .......... (1,079) Cash paid for fractional shares ......................................................................................... (6) Proceeds from exercise of stock options .......................................... 527 ....................... 284 ................ 267 Repurchase of common stock ....................................................................................... (502) Proceeds from note payable .............................................................. 800 Net cash provided by financing activities ................................35,018 ................. 55,086 ...........43,498
Decrease in cash and cash equivalents ..................................... (20,215) ................. (8,592) ............. 3,779 Cash and cash equivalents at beginning of year ........................ 68,218 ..................76,810 ........... 73,031
Cash and cash equivalents at end of year ...................................... $48,003 ............... $68,218 .........$76,810
Condensed Consolidated Statements of Changes in Shareholders’ Equity (in thousands) Year Ended December 31, 2005 2004 2003
Beginning balance ................................................................................$34,531 ............. $29,949 .........$25,380 Exercise of stock options ...................................................................1,039 ..................... 532 ................ 462 Cash dividends .................................................................................(1,092) ............... (1,097) .......... (1,081) Earned ESOP shares ..............................................................................251 ..................... 180 ................ 252 Shares acquired by ESOP ...................................................................(348) .................. (150) ............. (321) Changes in unrealized gain (loss) on securities available for sale ..(24) ......................... 9 ................(12) Repurchase and retirement of common stock ............................................................ (502) Net income ..........................................................................................7,198 .................. 5,610 ............. 5,269
Ending balance ......................................................................................$41,555 ............. $34,531 .........$29,949
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Donald W. LeforceChairman of the Board.
Retired. Past President
and Secretary/Treasurer
of Compass Equipment,
Inc., a distributor of
mining and heavy
construction equipment.
John D. LanamRetired
Gary B. Strauss, MDVice Chairman
Retired
Charles MathewsOwner of Mathews
Farms since 1965 and
partner in Mathews Rice
Dryer since 1980.
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Board of Directors
James S. RickardsSecretary. Real Estate
Broker associated with
Century 21 Select.
Ellis L. MatthewsRetired
Keith RobbinsPresident and Chief
Executive Officer of
Butte Community Bank
and Community Valley
Bancorp
Luther W. McLaughlin, CPAManaging Director and
President of Matson &
Isom Certified Public
Accountants for more
than ten years.
John CogerExecutive Vice President,
Chief Financial Officer
and Chief Operating
Officer of Butte
Community Bank and
Community Valley
Bancorp
Robert L. Morgan, MD Retired
M. Robert Ching, MDOrthopedic Surgeon
Hubert TownshendRetired. Formerly
involved in general
engineering, contracting
and equipment rental.
Eugene B. EvenRetired
Jack B. SchmelkeRetired
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Executive GroupKeith Robbins
President Chief Executive Officer
John CogerExecutive Vice President Chief Financial Officer Chief Operating Officer
Bruce BarnettSenior Vice President Chief Information Officer
Roger JanisSenior Vice President Area Administrator
Steve JohnsonSenior Vice President RE Development and Risk Management
Craig LarsonSenior Vice President Chief Lending Officer
Russ WittmeierSenior Vice President Product Development Executive
Debbie MileyAdmin. Vice President Operations and HR Administrator
Brad RudkinAdmin. Vice President Branch Banking Executive
Return on Investment
Net income was $7,198,000 for 2005 compared to 2004 earnings of $5,610,000. Return on beginning shareholders’ equity was 18.82% in 2005 and 17.20% in 2004.
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Management Team
Administrative ManagementGayle Lee
Senior Vice President Controller
Beverly BrinkerAdmin.Vice President Audit Compliance Mgr.
Kash GillAdmin.Vice President Regional Manager
Michelle BeichVice President Note Department Mgr.
Lee BrownVice President Special Assets Mgr. and Security Officer
Phil PapemanVice President Marketing Director
Carla GeyerAssistant Vice President Executive Assistant
Bank Branch ManagementCheryl Almeida
Vice President Regional Branch Mgr.
Laurie BeibersVice President Branch Manager Sr. Commercial Lender
Cindy BrownVice President Branch Manager
Diane ModesVice President Branch Manager
Janet OlsenVice President Branch Manager
Katy ThomaVice President Branch Manager
Andrea WhiteVice President Branch Manager
Margaret CoronaAssistant Vice President Branch Manager
Manny PhaguraAssistant Vice President Branch Manager
Brenda WelchAssistant Vice President Branch Manager
Lending
Glenn RilingerAdmin. Vice President SBA/Commercial Loans
Doug WeigandAdmin. Vice President Commercial Lender
Kevin KaiserCorporate Vice President Sr. Commercial Lender
Marcy SutcliffeCorporate Vice President Sr. Commercial Lender
Joel ArnoldVice President Sr. Commercial Lender
Erika BenderVice President Sr. Commercial Lender
Ruth GildeaVice President Commercial Loan Officer
Roger HartVice President Sr. Commercial Lender
Bob HetherwickVice President Commercial Loan Officer
Tim JamesVice President Sr. Construction Lender
Steve MontandonVice President Sr. Commercial Lender
Lorinda Spencer Vice President Commercial Loan Officer
Jeremy StoneVice President Loan Officer
Butte Community Financial ServicesJadee Carter
Vice President LPL Registered Representative
Ellen HuntAssistant Vice President LPL Registered Principal
CVB Insurance AgencyFrank Hill
Vice President Agency Manager
Butte Community Payroll SystemsScott Reynolds
Sales Manager
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Chico South2041 Forest Avenue, Chico, CA 95928 (530) 891-3494
Chico Central900 Mangrove Avenue, Chico, CA 95926 (530) 891-9000
Chico North237 West East Avenue, Chico, CA 95926 (530) 899-2347
15 Years of Record Stock Price Gain
An original share of Butte Community Bank stock cost $10. Adjusted for eight stock splits, that’s only $0.67 per share. As of December 31, 2005, that single share has increased in value 2,035%.
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Bank Locations
Paradise South672 Pearson Road, Paradise, CA 95969 (530) 877-0857
Paradise North6653 Clark Road, Paradise, CA 95969 (530) 877-2506
Magalia14001 Lakeridge Circle, Magalia, CA 95954 (inside Holiday Quality Foods) (530) 873-6854
Oroville2227 Myers Street, Oroville, CA 95966 (530) 532-0800
Yuba City1600 Butte House Road Yuba City, CA 95993 (530) 751-2700
Red Bluff84 Belle Mill Road, Red Bluff, CA 96080 (530) 528-3060
Marysville812 “B” St, Marysville, CA 95901 (530) 741-0210
Colusa1017 Bridge St, Colusa, CA 95932 (inside Holiday Quality Foods) (530) 458-5430
Corning 908 Highway 99W, Suite D Corning, CA 96021 (530) 824-3966
Redding100 East Cypress Avenue, Suite 150 Redding, CA 96002 (530) 722-0295
Citrus Heights LPO5959 Greenback Lane #450 Citrus Heights, CA 95621 (916) 728-1600
Gridley LPO 1010 Spruce Street, Gridley, CA 95948 (530) 846-3472
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Abdulmasih, RitaAkers, LeslieAldama, MeganAllison, DarrenAllison, DoreenAlmeida, CherylAltamirano, CindyAndrade, JanetArechar, Lesley AnnArnold, JoelAspromonte, ShellieAzevedo, VickiBaker, TylerBales, TeresaBall, MindyBarbo, TerryBarnett, BruceBarranti, Jill Barrett, RyanBass, TanikaBaumann, AmandaBeckett, DianeBecraft, MollyBecraft, TaraBeebe, CathyBeibers, LaurieBeich, MichelleBelben, LeahBender, ErikaBenevento, DanielBenson, BarrettBerge, ChrisBerry, PeggyBondza, SuzanaBowman, BreaBravo, JoseBrinker, BeverlyBrock, AudraBrockman, WendyBrown, CindyBrown, LeeBrown, TinaBrunelli, RitaByland, MariaByrne, JacquelineCamolinga, SylviaCarter, JadeeCarter, RachelCartoscelli, AngelaCaughey, Amber
15 Years of Service
Beverly Brinker Maria Byland John Coger Windy Hill Gayle Lee Debbie Miley Stacey Morris Keith Robbins
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Our People
280 Employees as of March 15, 2006
Cerrato, JeriChiotti, DanielleCiancio, NicoleClausen, KristinaCoffelt, JakeCoffelt, JoshCoger, JohnCoger, MeganCollins, JeffConard, MargoConner, JillCornell, ShannonCorona, MargaretCromwell, SamCrouse, BarbaraDavis, LindaDillard, CindyDodge, KelleyDolan, JennyDorgali, SuzyEldredge, TammyErnenwein, JustinEsparza-Smith, KristinaEvans, JoiFawns, DeniseFellner, AndreasFillmer, ReanetteFlores, DebbieFlores, MikeFranco, EvaFranco, GinaGard, BeckyGates, LindaGaussoin, EmeraldGeyer, CarlaGildea, RuthGill, HarveenGill, KashmirGlassgow, NicoleGoble, MelissaGrider, EileenGustafson, DamonHamblin, Deboragh
Hamblin, KariHard, BeckyHardesty, BrendaHarger, DiannHarnish, JulieHarris, EliHart, RogerHayes, MarilynHeindell, CatherineHelberg, DixieHendel, JessicaHenderson, ChristineHenshaw, ReneeHernandez, AbelHernandez-Reeson, PattiHerndon, JeannetteHetherwick, BobHiell, DonnaHill, FrankHill, WindyHoffie, AudreyHolland, KathyHollingsworth, KellyHollstrom, KristaHoofard, FrancineHoover, RachelHopper, ChristinaHowder, LiliaHughes, JohnnieHumlick, CindyHunt, EllenHunter, AndreaHutcheson, ShilohJackson, HelenJames, TimJanis, RogerJimenez, StephanieJohnson, SteveJones, LynsieJuanarena, SusanKaiser, KevinKeller, JaneKemp, AshleyKemp, StacyKirk, JerryKlemens, AntonKoehn, Patricia
Kremer, EmmaleeLaizure, TammyLandis, LarryLarson, CraigLarson, HeidiLee, GayleLee, LizetteLeen, DonaldLehman, DarcieLehman, DickLindquist, KyleLobo, WesMacNeill, ChristinaMartin, TarynMartinez, TammiMatulich, VickyMcCain, SandyMcCarthy, RhondaMcClure, MelanieMcKillop, DeannaMedina, GabrielMercer, AnnetteMichael, EllenMilco, KathyMiles, DeeMiley, DebbieMiley, JeffMiley, JustinMiller, JustinModes, DianeMoffitt, SandiMonson, AmyMontandon, StephenMoody, SteveMoore, DebbieMorris, KristyMorris, StaceyMussmann, MichelleNichols, DanaNorris, DixieNovo, CariO’Brien, AmyOlsen, JanetOn, AmberO’Neill, LanaeeOsterlund, DavidPaniagua, LettyPapeman, PhilipPatterson, AmandaPearman, Jonathan
Pegany, KirenjitPeters, PattyPeterson, MikePhagura, MannyPreecs, CarolePresley, LizPrice, BenPritchett, WilliamPruitt, NicolePusch, MichelleRamirez, JeannetteReeson, KellyReinbold, DavidRenlund, KateReyes, ChristyReynolds, ScottRichardson, LajinaRidley, BettyRilinger, GlennRilinger, MandyRobbins, KeithRobertson, CalumRohleder, AshleyRoldan, AnaRomanshek, KevinRudkin, BradRyan, AlainaSalcido, KatieSchneider, TrineSchreckengost, KimSellers, BarbaraShields, RobinShoemaker, LisaShore, AshelyShores, LindaSilver, CoriSimmons, JanSimon, JulieannaSkelly, HeatherSlocum, Patty
Smith, BrianSmith, DianaSpencer, JimSpencer, LorindaStangeland, SaraStanton, GaryStone, JeremySutcliffe, MarcySweeney, BritneyTakhar, PoonamTaylor, BruceTaylor, CarriTaylor, YolindaThoma, KatyThompson, BeverlyThunen, LisaTimm, PattiTraynor, RhondaTurner, BethValdez, MaryVanderlinde, CaroleVaughn, MaryVaught, RebeccaVega, MonaVernon, JimVersola, MarquesaWagner, PamWalsh, MikeWebb, ShirleyWebster, KellyWeigand, DougWelch, BrendaWest, MelanieWhite, AndreaWhite, BrandyWhittaker-Belben, AbigailWilkerson, TeresaWilliams, JeremyWillis, AmandaWilson, BeckyWilson, JoanneWilson, JuliaWilson, LaurenWilson, LindaWittmeier, RussWolf, BrandiWolter, HeatherWolter, NikiWoolsey, AshleyWright, Lori
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Achieve Charter School
Alzheimer’s AssociationMemory Walk 2005
American Cancer Society2005 Relay for Life
American Heart AssociationHeart Night at the Oscars Gala 2005
Arbuckle Revitalization CommitteeAnnual Depot BBQ and Car Show
The ARC of Butte County
Athletic Horizons
Barry R. Kirshner Wildlife Foundation
Big Brothers Big Sisters of Butte CountyBowl for Kids’ Sake 2005
Bob Busch All Star Baseball Classic
Boys & Girls Club of ChicoLinks Across Time Golf TournamentParadise Ridge Inaugural Special Recognition Dinner
Building Industry Association14th Annual Golf Tournament
Butte College Small Business Development Center7th Annual Women in Business Conference
California Peach Festival (Marysville)
California State University, ChicoSuperior Ag Golf Tournament
Butte Community Bank is committed to the Northern California cities that we serve. Following are just some of the fine organizations and local events that we helped in 2005.
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Community Support
Casa de EsperanzaOld Fashioned Barbecue (Yuba City)
Challenger Division Baseball
Chico AquaJets Swim Team
Chico Concours d’Elegance
Chico High School Foundation
Chico High School Grad Night
Chico MerchantsCompetitive Senior Softball
Chico Museum AssociationThreshing Bee Sponsorship
Chico OutlawsSchool Reading Program
Chico Police DepartmentMounted Enforcement Team
Chico Rooks Pro Soccer Foundation
Chico Senior Soft Ball
Chico Sunrise Rotary ClubRotary Night at the Races
Chico Tennis Club
Chico Valley ScorchersYouth Football & Cheer Program
Chico Veterans Memorial CommitteeVeterans Memorial Fund
Center for Economic Development at CSUC2005 Tri County Economic Forecast Conference
Hispanic Business AssociationCinco De Mayo Fiesta
Colusa Area Little League
Colusa Concerts in the Park
Colusa County Fair Parade
Corning Car Show
Corning Chamber of CommerceHometown Christmas
Corning Jr. Rodeo Association24th Annual Corning Junior Rodeo
Corning Olive Festival
CP Auto Racing Team (Chico)
Decorators Dream House 2005
Durham Rotary Harvest Festival
Enterprise StarshipLive Entertainment
Exceptional Soccer League (Chico)
Family Solutions (Chico)
Feather River Health FoundationFeather River Scramble Golf Tournament
Focus Club of Gridley
Forward Redding Foundation
Fremont-Rideout Hospice ProgramFairway to Health Golf Tournament
Friends of Chico Community Ballet
Future Farmers of America Booster Club
Girl Scouts of Sierra CascadeStover Celebrity Golf Classic
Hamilton High SchoolBaseball Golf Tournament
Innovative Preschool (Chico)Spaghetti Feed
International Organization of Punjabi Women (Yuba City)Women’s Dance Festival
Jesus Center (Chico)Benefit Golf Tournament October 3, 2005
St. Jude Children’s Hospital RadiothonKALF Radio
Kiwanis Club of Yuba City11th Annual Lobster Feed
Marigold School (Chico)Jog-A-Thon
Northern California Ballet
North Valley Community Foundation (Chico)
Oroville Chamber of CommerceTable Mountain Scramble Golf Tournament
Oroville Economic Development Corporation (OEDCO)Annual Dinner 2005
Oroville High SchoolBasketball Tournament
Paradise Blues & BrewsThe Exchange Club of Paradise
Paradise Bowling AssociationChampionship Bowling Tournament 2005
Paradise High School Graduation Night 2005
Paradise Police DepartmentTactical Deployment Vehicle
Pediatric Brain Tumor FoundationHarris Cup Miniature Golf Tournament
Pioneer Parade (Williams)
Pleasant Valley High SchoolBoys Varsity Basketball Tournament
Punjabi-American Festival (Yuba City)
Red Bluff Round Up
Red Bluff Junior Round-Up
Shasta County Women’s Refuge (Redding)
Shoes That Fit
Sikh Temple Gurdwara (Yuba City)Annual Parade
Skyway House (Chico)Annual Benefit Dinner
Snow Goose Festival
Superior California Economic DevelopmentBusiness Financing Conference Redding
Sutter North Golf Classic (Yuba City)Sutter North Medical Foundation
Taste of TehamaMicrobrew Festival
Tehama District Fair (Red Bluff)
TOPCats on the Ridge
Wildcat Century ClubFour-Person Scramble Golf Tournament
Woodson Bridge Nature Trail Project (Corning)
Youth for Change
Yuba-Sutter Chamber of CommerceSeptember Business After Hours: “Great Balls of Fire”
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Corporate Information
Shareholder RelationsGayle LeeSenior Vice President/Controller Community Valley Bancorp
6653 Clark Rd Paradise, CA 95969 (530) 877-2506 x3161 [email protected]
Stock ListingSymbol: CVLLMarket: OTC Bulletin Board
Transfer AgentU.S. Stock Transfer Corporation
1745 Gardena Ave Ste 200 Glendale, CA 91204-2991 (818) 502-1404 www.usstock.com
Independent AccountantsPerry-Smith LLP
400 Capitol Mall, Suite 1200 Sacramento, CA 95814 (916) 441-1000 www.perry-smith.com
HeadquartersCommunity Valley Bancorp
2041 Forest Ave Chico, CA 95928 (530) 899-2344 www.communityvalleybancorp.com
Butte Community Bank2041 Forest Ave Chico, CA 95928 (530) 899-7100 www.buttecommunity.com
Butte Community Financial Services936 Mangrove Ave Chico, CA 95926 (530) 892-4968 www.buttecommunityfinancial.com
CVB Insurance Agency936 Mangrove Ave Chico, CA 95926 (530) 893-1466 www.cvbinsurance.com
Butte Community Payroll Systems2041 Forest Ave Chico, CA 95928 (530) 899-1636 www.buttecommunitypayroll.com
Market MakersMarket Makers in Community Valley Bancorp stock are:
Sandler O’Neill & Partners, LP919 Third Ave, 6th Floor New York, NY 10022 1-800-635-6851 www.sandleroneill.com
Dave BonaccorsoHoefer & Arnett
555 Market St 18th Floor San Francisco, CA 94105 1-800-346-5544 www.hoeferarnett.com
Troy Norlander & Michael NatzicThe Seidler Companies, Inc
PO Box 1688 Big Bear Lake, CA 92315 1-800-288-2811 www.seidlercos.com
Joey WarmenhovenWedbush Morgan Securities
4949 SW Meadows Rd Ste 100 Lake Oswego, OR 97035 1-800-357-3680
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2041 Forest Avenue, Chico CA 95928 www.communityvalleybancorp.com