NasdaqCM:CVCY

Stock Analysis Report

Central Valley Community Bancorp

Executive Summary

Central Valley Community Bancorp operates as the bank holding company for the Central Valley Community Bank that provides various commercial banking services to small and middle-market businesses and individuals in the central valley area of California.


Snowflake Analysis

Flawless balance sheet and undervalued.


Similar Companies

Share Price & News

How has Central Valley Community Bancorp's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CVCY's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0.5%

CVCY

9.4%

US Banks

9.9%

US Market


1 Year Return

-38.3%

CVCY

-25.1%

US Banks

-11.9%

US Market

Return vs Industry: CVCY underperformed the US Banks industry which returned -24.8% over the past year.

Return vs Market: CVCY underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

CVCYIndustryMarket
7 Day0.5%9.4%9.9%
30 Day-29.9%-26.0%-15.0%
90 Day-44.3%-38.6%-21.5%
1 Year-37.0%-38.3%-22.9%-25.1%-10.0%-11.9%
3 Year-38.1%-41.2%-17.2%-23.3%12.3%5.1%
5 Year16.9%7.0%11.6%-1.1%32.5%18.1%

Price Volatility Vs. Market

How volatile is Central Valley Community Bancorp's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Central Valley Community Bancorp undervalued compared to its fair value and its price relative to the market?

44.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CVCY ($12.06) is trading below our estimate of fair value ($21.9)

Significantly Below Fair Value: CVCY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CVCY is good value based on its PE Ratio (7.5x) compared to the Banks industry average (8.9x).

PE vs Market: CVCY is good value based on its PE Ratio (7.5x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: CVCY's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CVCY is good value based on its PB Ratio (0.7x) compared to the US Banks industry average (0.8x).


Next Steps

Future Growth

How is Central Valley Community Bancorp forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CVCY's earnings are forecast to decline over the next 3 years (-19.4% per year).

Earnings vs Market: CVCY's earnings are forecast to decline over the next 3 years (-19.4% per year).

High Growth Earnings: CVCY's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CVCY's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: CVCY's revenue is forecast to decline over the next 3 years (-5.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CVCY's Return on Equity is forecast to be low in 3 years time (6.7%).


Next Steps

Past Performance

How has Central Valley Community Bancorp performed over the past 5 years?

22.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CVCY has high quality earnings.

Growing Profit Margin: CVCY's current net profit margins (28.2%) are lower than last year (29.4%).


Past Earnings Growth Analysis

Earnings Trend: CVCY's earnings have grown significantly by 22.8% per year over the past 5 years.

Accelerating Growth: CVCY's earnings growth over the past year (0.7%) is below its 5-year average (22.8% per year).

Earnings vs Industry: CVCY earnings growth over the past year (0.7%) underperformed the Banks industry 11.2%.


Return on Equity

High ROE: CVCY's Return on Equity (9.4%) is considered low.


Next Steps

Financial Health

How is Central Valley Community Bancorp's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CVCY has a low level of unsold assets or inventory.

Debt Coverage by Assets: CVCY's debt is covered by short term assets (assets are 11.3x debt).


Financial Institutions Analysis

Asset Level: CVCY's level of assets compared to its equity is low.

Allowance for Bad Loans: CVCY has a sufficient allowance for bad loans.

Low Risk Liabilities: CVCY's liabilities are made up of primarily low risk sources of funding.

Loan Level: CVCY has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CVCY's loans are broadly funded by customer deposits.

Level of Bad Loans: CVCY has an appropriate level of bad loans (0.18%)


Next Steps

Dividend

What is Central Valley Community Bancorp's current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CVCY's dividend (3.65%) is higher than the bottom 25% of dividend payers in the US market (1.98%).

High Dividend: CVCY's dividend (3.65%) is low compared to the top 25% of dividend payers in the US market (5.45%).


Stability and Growth of Payments

Stable Dividend: CVCY has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CVCY's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (26.9%), CVCY's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CVCY's dividends in 3 years are forecast to be well covered by earnings (39.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.0yrs

Average management tenure


CEO

Jim Ford (61yo)

5s

Tenure

US$658,514

Compensation

Mr. James M. Ford, also known as Jim, has been the Chief Executive Officer, President and Director of Central Valley Community Bancorp and Central Valley Community Bank since February 1, 2015. Mr. Ford se ...


CEO Compensation Analysis

Compensation vs Market: Jim's total compensation ($USD658.51K) is below average for companies of similar size in the US market ($USD1.45M).

Compensation vs Earnings: Jim's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Ford
President5yrsUS$658.51k0.35% $536.5k
David Kinross
Executive VP13.83yrsUS$383.65k0.12% $187.5k
Patrick Carman
Executive VP & Chief Credit Officer4.92yrsUS$358.92k0.17% $257.3k
Steven McDonald
Secretary & Director20.17yrsUS$63.89k2.8% $4.3m
Le-Ann Ruiz
Assistant Corporate Secretaryno datano datano data

5.0yrs

Average Tenure

65yo

Average Age

Experienced Management: CVCY's management team is seasoned and experienced (5.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Ford
President5yrsUS$658.51k0.35% $536.5k
Steven McDonald
Secretary & Director20.17yrsUS$63.89k2.8% $4.3m
Gary Gall
Independent Director3.42yrsUS$54.80k0.50% $759.8k
Daniel Cunningham
Vice Chairman & Lead Independent Director0.83yrUS$86.69k2.59% $4.0m
Daniel Doyle
Independent Chairman of the Board5yrsUS$70.01k0.66% $1.0m
William Smittcamp
Independent Director20.17yrsUS$58.15k1.2% $1.8m
Louis McMurray
Independent Director20.17yrsUS$68.54k4.69% $7.2m
Edwin Darden
Independent Director19.17yrsUS$56.93k1.16% $1.8m
Frank Elliott
Independent Director6.67yrsUS$54.80k1.25% $1.9m
Karen Musson
Independent Director2.25yrsUS$54.80k0.015% $23.6k

5.8yrs

Average Tenure

69.5yo

Average Age

Experienced Board: CVCY's board of directors are considered experienced (5.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CVCY insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Central Valley Community Bancorp's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Central Valley Community Bancorp
  • Ticker: CVCY
  • Exchange: NasdaqCM
  • Founded: 1979
  • Industry: Regional Banks
  • Sector: Banks
  • Market Cap: US$153.303m
  • Shares outstanding: 12.71m
  • Website: https://www.cvcb.com

Number of Employees


Location

  • Central Valley Community Bancorp
  • 7100 North Financial Drive
  • Suite 101
  • Fresno
  • California
  • 93720
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CVCYNasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDJul 1995

Biography

Central Valley Community Bancorp operates as the bank holding company for the Central Valley Community Bank that provides various commercial banking services to small and middle-market businesses and individuals in the central valley area of California. The company accepts deposit products, such as savings, NOW, and money market accounts, as well as time certificates of deposit; and non-interest bearing demand deposits. Its loan products include commercial and industrial loans, as well as loans secured by crop production and livestock; owner occupied and investor commercial real estate, real estate construction and other land, agricultural real estate, and other real estate loans; and equity loans and lines of credit, and installment and other consumer loans. The company also offers domestic and international wire transfer, safe deposit box, Internet banking, and other customary banking services. As of December 31, 2018, the company operated 21 full-service banking offices in Cameron Park, Clovis, Exeter, Fair Oaks, Folsom, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Rancho Cordova, Roseville, Sacramento, Stockton, and Visalia. Central Valley Community Bancorp was founded in 1979 and is based in Fresno, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:21
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.