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Community Valley Bancorp Annual Report
2004
Community Valley Bancorp Annual Report
2004
To Our Shareholders
Coin Spinning The longest time a coin has been spun until coming to a complete rest is 19.37 seconds. It was accomplished by Britain’s Scott Day at Earl’s Court, London, UK, as part of BBC TV’s Tomorrow’s World roadshow.
Table of Contents Letter to Shareholders ..................................................... 2 ProďŹ le ......................................................................... 3 Financial Growth ............................................................ 6 Discussion & Analysis .....................................................10 Condensed Statements ...................................................16 Board of Directors .........................................................18 Management ...............................................................19 Bank Locations ............................................................ 20 Corporate Information....................................................21 Community ................................................................ 22 Our Newest Directors.................................................... 24 Our People ................................................................. 25
Annual Report 2004
To Our Shareholders Dear Shareholder: 2004 was a very busy year for Community Valley Bancorp. We continued our North Valley expansion with new branches in the communities of Red Bluff, Marysville and Colusa. We also founded CVB Insurance Agency, a full-service insurance agency that provides first class insurance products and services to our rapidly growing family of customers. In spite of this branch expansion and innovative product development, we did not lose sight of our profit goals. Our total assets grew 16.25%, total deposits grew 16.5% and total loan growth was 26%. Our net profit of $5.6 million is an increase of 6.5% over 2003 results. Once again, all 2004 year-end figures represent new highs for your bank. This continued superior level of performance resulted in an appreciation of 33.75% in our share price for the year. So far in 2005 we have already opened a new branch in Corning and will soon begin the construction of our first full-service branch in Redding. Extensive renovation of our Central Chico branch has been completed and our South Paradise location will undergo a similar transformation later this year. We also have plans to move our Marysville branch to a higher profile location at Ellis Lake. This relocation will incorporate a CVB Insurance Agency office to serve the Yuba-Sutter area. Once again, we have been named a Super Premier Performing Bank by the bank consulting firm The Findley Reports. This is our thirteenth consecutive year with this designation and Butte Community Bank is the only institution to have received this honor continuously from its first year of operation. With all this activity, we enter 2005 with great anticipation and excitement. We fully expect to see continued expansion in branches, communities and performance to show results this year and in the future.
Community Valley Bancorp
2
Keith Robbins President Chief Executive Officer
Donald Leforce Chairman of the Board
CORPORATE TIMELINE
1990 Assets: $5 million August: Butte Community Bank founded by a group of distinguished citizens from Paradise and Oroville. December: Butte Community Bank opens in Paradise and Oroville with 17 employees.
Profile Honors Butte Community Bank is proud to announce that it has received the designation of Super Premier Performing Bank from The Findley Reports for the year 2004. This is the highest designation available and the bank has received this award for 13 years in a row. That’s every year since the bank’s ratings began in 1992. For a bank to receive this honor every year since its inception is a rare achievement in the 30-year history of The Findley Reports. Butte Community Bank opened for business on December 14, 1990 and starting in 1992 has been a Super Premier Performer every year with a return on beginning equity in excess of 17%. Butte Community Bank has not been involved in any acquisitions and has done it the old fashioned way – Growing on the talents of its management, board and those employees who truly believe in what is being accomplished. Since 1967, The Findley Reports has been the foundation of the Findley Companies, providing comprehensive financial information to help management meet the challenges and complexities of bank operations. These reports provide the banking industry with performance ratings through the following annual designations: Super Premier Performing, Premier Performing, Commendable, and Not Rated. These ratings have become highly regarded and recipients are recognized throughout the California banking industry as institutions achieving exceptional financial performance. 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.
CVB Insurance Agency, LLC, the newest 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.
Founded in 1990, Butte Community Bank is state-chartered with 12 branches in 9 cities including Chico, Magalia, Oroville, Paradise, Yuba City, Red Bluff, Marysville, Colusa and Corning. It also operates loan production offices in Citrus Heights and Redding. With the summer 2005 opening of their first full-service branch in Redding, Butte Community Bank will have a total of 13 branches in Northern California.
Together with our partners at Financial Keyosk, CVB Insurance is a one-stop insurance source. We ensure you get the greatest insurance value for your money. Plus, by staying with CVB Insurance, you save time and money because you can compare plans again anytime in the future.
1991 Assets: $25 million
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.
LARGEST SINGLE BEQUEST The largest bequest was the $1 billion art collection of the American publisher, Walter Annenberg, who, on March 12, 1991, announced his intention to leave the collection to the Metropolitan Museum of Art in New York City.
3
Annual Report 2004
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.
Now you can insure your business with a wide variety of products from top-name companies such as Zurich, Hartford, Kemper Insurance, Blue Cross, Blue Shield, United Healthcare and The Travelers.
Largest Piggy Bank Collection Since 1957, Ove NordstrĂśm, of SpĂĽnga, Sweden, has collected 5,750 different piggy banks from over 40 different countries.
$449,675,462
FINANCIAL GROWTH As of December 31, 2004, total assets were $449,675,462, or a 16% increase over the $386,722,664 at year end 2003.
Financial Growth 2000
INCOME ASSETS DEPOSITS LOANS
2001
3,046,467
3,811,374
214,905,861
272,463,441
194,124,872
246,419,904
172,411,610
206,253,417
Community Valley Bancorp
6
1992
1993
Assets: $36 million
Assets: $45 million June: Bank opens its third location in the community of Magalia to an overwhelming response.
2002
2003
4,849,575
5,269,192
337,483,286
386,723,416
297,980,814
342,511,120
237,610,940
272,510,104
2004 5,609,648 449,675,462 399,059,100 339,173,900 Annual Report 2004
7
MOST VALUABLE TEDDY BEAR A Steiff bear named “Teddy Girl” was sold for $170,830 – more than 18 times the guide price – at Christie’s, London, UK, on December 5, 1994.
The
Lon ges And t-St rew an Wil Un iver es o ding M sity f th ath He ,U eU Pro sho S A K ble , w , p cur for ed r m( o ved ren tha nb Eve t t xn ein l F y r) 1 e at P rma ge +yn 630 qua r t i ’ = n s -19 z c L l to nh eto 95 as n ast Th n or g eor o so rea e ter mi luti tha n1 ons n3 995 i n . inte . ger s
$5,609,648
DISCUSSION & ANALYSIS Net income was $5,609,648 for 2004 compared to 2003 earnings of $5,269,200.
Discussion & Analysis
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2004 and 2003. 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, 2004.
Overview
Net Interest Income
Net income was $5,609,600 ($1.58 basic earning per share) for 2004 compared to 2003 earnings of $5,269,200 ($1.50 basic earnings per share). Return on beginning shareholders’ equity was 17.2% in 2004 and 19.07% in 2003. Return on average assets in 2004 and 2003 was 1.34% and 1.44%, respectively.
Net 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 2004 was 5.70%, up from 5.32% in the year 2003. During 2004, the Company’s net interest margin improved primarily as a result of the change in the mix of investment that contributed to an overall increase in yields and the decrease in the rates paid on interest bearing deposits.
As of December 31, 2004, total assets were $450 million, or a 16% increase over the $387 million at year end 2003. The Company had portfolio loans totaling $339 million at December 31, 2004, for an increase of $69 million, or a 26% increase over the $270 million at December 31, 2003. Deposits also increased 17% to $399 million from the previous year end total of $343 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.
Community Valley Bancorp
10
1994 Assets: $57 million
On an average basis, the rates on loans decreased by 40 basis points resulting in a decrease in interest income of $1.3 million. This decrease in rates was more than offset by the increase in the average volume of loans of $59 million that generated an additional $4.8 million in loan related interest income. During 2004 overall interest income on earning assets increased by $3.5 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 decreasing interest expense by $340,000 which contributed to the increase of $3.8 million in net interest income.
Non-Interest Income
Other Expenses
Non-interest income of $6 million increased $69,000 over the 2003 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.
Occupancy and other expenses increased by $1.1 million or 19%, to $6.8 million in 2004 from $5.7 million in 2003. This increase was primarily due to the opening of the three new branch offices mentioned above. There were no other material changes in the areas of data processing, accounting, legal or other professional services that make up the majority of this category.
Non-Interest Expense
Provision for Taxes
The Company’s total non-interest expense increased to $16.7 million in 2004, as compared to $13.8 million in 2003. Refer to the Income Statement in the accompanying Consolidated Financial Statements for a detailed description on non-interest income.
The effective tax rate for 2004 was 40.4% compared to 38.7% for 2003. 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.
Salaries and Benefits Salaries and employee benefits increased in 2004 by $1.8 million, or 22.4% from 2003. This increase resulted from normal cost of living raises, salaries paid to employees at the three new branch offices in Red Bluff, Marysville and Colusa, commissions paid to Butte Community Bank’s Real Estate Loan Agents and staffing additions made during the year as the Company continued to grow.
Annual Report 2004
11
1995 Assets: $72 million January: Bank opens a loan production office in Chico.
MOST VALUABLE TYPEWRITER Ian Fleming’s gold-plated typewriter, which was commissioned by the writer in 1952, was sold for $89,229 at Christie’s in London, on May 5, 1995. Fleming is best known as the creator of James Bond, the suave spy-hero of his best-selling novels.
Discussion & Analysis Loans
Non-Performing Assets
A 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, 2004 were $339.2 million, an increase of 26% from the $270.2 million at year-end 2003. 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.
Management 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 0.03% at December 31, 2004 and 0.02% at December 31, 2003.
Risk Elements The 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.
Allowances for Loan Losses The 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 $790,000 in 2004 and $655,000 in 2003. 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 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, 2004 the allowance for loan losses was $4.4 million or 1.27% of total loans, compared to $3.6 million or 1.31% in 2003. The Company recorded
Community Valley Bancorp
12
1996 Assets: $89 million September: Bank opens a full-service branch at 2041 Forest Avenue in Chico.
net recoveries of $4,000 in 2004 compared to net charge-offs of $75,000 in 2003. 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, 2004, the Company’s total risk-based capital ratio was 12.5%, the Tier 1 risk-based capital was 11.3% and the leverage capital ratio was 9.5%. All ratios exceed the minimum guidelines of 8%, 4% and 4% respectively. The ratios at December 31, 2003 were 13.3%, 12.2% and 9.9%, respectively.
Liquidity Management The 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, 2004, the Company’s liquidity ratio (cash, fed funds, and securities) as a percentage of total liabilities was 17.5% as compared to 20% at December 31, 2003.
Asset and Liability Management The 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.
Annual Report 2004
13
LARGEST GOLD RESERVES The United States Treasury had approximately 262 million fine troy ounces (8,149,000 kg) of gold during 1996, equivalent to $100 billion at the June 1996 price of $382 per fine ounce.
1997 Assets: $118 million October: Yuba City branch opened in Sutter County.
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$399,059,100
CONDENSED STATEMENTS Deposits increased 17% to $399,059,100 from the previous year end total of $342,511,120. The Company had portfolio loans totaling $339,173,900 at December 31, 2004, an increase of 26% over 2003.
Condensed Statements Condensed Consolidated Balance Sheets (in thousands)
Year Ended December 31, 2004 2003
Assets: Cash and cash equivalents ...............................................$68,218 .............................. $76,810 Securities ............................................................................ 6,961 .................................. 4,325 Net loans, including loans held for sale ............................340,664 .............................. 272,510 Other assets ..................................................................... 33,832 ................................ 33,078 Total assets ...................................................................$449,675 ............................ $386,723 Liabilities and shareholders’ equity: Deposits ....................................................................... $399,059 ............................ $342,511 Borrowings ............................................................................ 833 ................................... 832 Other liabilities ................................................................. 15,252 ................................ 13,431 Total liabilities ................................................................415,144 .............................. 356,774 Shareholders’ equity ......................................................... 34,531 ............................... 29,949 Total liabilities and shareholders’ equity .......................$449,675 ............................ $386,723
Condensed Consolidated Statements of Income (in thousands, except per share data)
Year Ended December 31, 2004 2003 2002 Interest income .....................................................................$24,980 ......... $21,516 ....... $18,977 Interest expense .......................................................................4,056 ............. 4,396 ........... 4,775 Net interest income ................................................................20,924 ........... 17,120 ......... 14,202 Provision for loan losses ...............................................................790 ............... 655 ............. 603 Noninterest income ..................................................................6,019 ............. 5,950 ........... 6,164 Operating expense .................................................................16,740 ........... 13,817 ......... 12,538 Income before provision for income taxes .................................9,413 ............. 8,598 ........... 7,225 Provision for income taxes ........................................................3,803 ............. 3,329 ........... 2,375
Community Valley Bancorp
16
Net income.............................................................................$5,610 ........... $5,269 ......... $4,850 Net income per share, basic ......................................................$1.58 ............ $1.50 .......... $1.40 Net income per share, diluted ...................................................$1.48 ............ $1.42 .......... $1.33 Shares used to compute net income per share, basic .................3,556 ............. 3,513 ........... 3,461 Shares used to compute net income per share, diluted ..............3,801 ............. 3,715 ........... 3,640 Dividends paid per share...........................................................$0.30 ............ $0.30 .......... $0.25 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
LARGEST EMPLOYER The world’s largest commercial or utility employer is Indian Railways, with 1,583,614 regular employees in March, 1997.
1998 Assets: $145 million Central Services and Real Estate Loan Center is completed in Chico.
Condensed Consolidated Statements of Cash Flows (in thousands)
Year Ended December 31, 2004 2003 2002
Cash flows from operating activities: Net income........................................................................$5,610 ........... $5,269 ......... $4,850 Adjustments to reconcile net income to net cash provided by operations ......................................5,788 ............. 5,717 .........(4,070) Net cash provided by operating activities .........................11,398 ........... 10,986 .............. 780
Cash flows from investing activities: (Purchases) and sales or maturities of securities, net ......... (3,446) ...........(4,853) .........(3,754) Net increase in loans made to customers ........................ (69,722) .........(41,383) .......(32,590) Other, net ....................................................................... (1,908) ...........(4,469) ............(235) Net cash used in investing activities ............................. (75,076) .........(50,705) .......(36,579) Cash flows from financing activities: Net increase in deposits 56,547 44,531 51,561 ESOP note, net ................................................................... (149) ............. (221) ........... (119) Dividends paid................................................................. (1,095) ...........(1,079) ............(818) Proceeds from exercise of stock options ................................ 285 ............... 267 .............. 287 Repurchase of common stock ............................................. (502) Proceeds from junior subordinated debentures ................................................................ 8,248 Net cash provided by financing activities..........................55,086 .......... 43,498 ......... 59,159 Decrease in cash and cash equivalents .............................. (8,592) ............. 3,779 ......... 23,360 Cash and cash equivalents at beginning of year.................76,810 .......... 73,031 ......... 49,671 Cash and cash equivalents at end of year ...................... $68,218 ........ $76,810 ..... $73,031
Condensed Consolidated Statements of Changes in Shareholders’ Equity (in thousands)
Year Ended December 31, 2004 2003 2002 Beginning balance ................................................................$29,949 ......... $25,380 ....... $20,820
Ending balance .....................................................................$34,531 ......... $29,949 ....... $25,380
1999 Assets: $158 million March: New telecommunications network, centralized cash management department and call center. June: Bank opens sixth full-service branch at the Albertson’s Shopping Center in North Chico.
17
Annual Report 2004
Exercise of stock options ..............................................................532 ................ 462 .............. 426 Cash dividends ...................................................................... (1,097) ...........(1,081) ............(888) Earned ESOP shares .....................................................................180 ................ 252 ............. 158 Shares acquired by ESOP .......................................................... (150) ..............(321) .................... Changes in unrealized gain on securities available for sale ...............9 ............... (12) ................ 14 Repurchase and retirement of common stock ........................... (502) Net income ...............................................................................5,610 ............. 5,269 ........... 4,850
Board of Directors
Donald W. Leforce
Chairman of the Board. President and former Secretary/Treasurer of Compass Equipment, Inc., a mining and heavy equipment manufacturing corporation.
Gary B. Strauss, MD Vice Chairman, Retired.
Eugene B. Even Retired Keith Robbins President and Chief Executive Officer of Butte Community Bank
James S. Rickards Secretary. Real Estate Broker associated with Realty World/Country Estates since 2000. Prior to that time, Broker and Owner of Northern California Properties.
M. Robert Ching, MD Orthopedic Surgeon
John Coger Executive Vice Ellis L. Matthews Retired John D. Lanam Retired Charles Mathews Owner of Mathews Farms since 1965 and partner in Mathews Rice Dryer since 1980.
President, Chief Financial Officer and Chief Operating Officer of Butte Community Bank
Certified Public Accountant and former senior partner of Matthews, Hutton & Warren, an accountancy firm.
Community Valley Bancorp
18
Hubert Townshend Luther McLaughlin, CPA
Managing Director and President of Matson & Isom Certified Public Accountants for more than ten years.
Jack B. Schmelke Robert L. Morgan, MD
Semi-retired. Involved in general engineering, contracting and equipment rental. Past partner of S&T Logging Company, Inc.
Director Emeritus
Retired
LARGEST ANNUAL SHARE TRADING VOLUME The largest annual trading volume was achieved in 1999, when 203,914,173,000 shares were traded at the New York Stock Exchange.
2000 Assets: $214 million February: Loan production office opened in Roseville.
Management Executive Group
Branch Management
Lending
Keith Robbins
Laurie Beibers
Glenn Rilinger
Executive Vice President/Chief Financial Officer and Chief Operating Officer
Cindy Brown
Doug Weigand
Steve Johnson
Diane Modes
President/Chief Executive Officer
John Coger
Senior Vice President RE Development and Risk Management
Craig Larson
Senior Vice President/Chief Lending Officer
Vice President Branch Manager - Senior Commercial Lender Vice President/Branch Manager Vice President/Branch Manager
Janet Olsen
Vice President/Branch Manager
Katy Thoma
Administrative Vice President SBA and Commercial Loans Administrative Vice President Commercial Lender
Kevin Kaiser
Corporate Vice President Senior Commercial Lender
Marcy Sutcliffe
Vice President/Branch Manager
Corporate Vice President Senior Commercial Lender
Andrea White
Joel Arnold
Administrative Vice President Operations and HR Administrator
Cheryl Almeida
Erika Bender
Brad Rudkin
Margaret Corona
Ruth Gildea
Russ Wittmeier
Senior Vice President Product Development Executive
Debbie Miley
Administrative Vice President/Branch Administrator
Vice President/Branch Manager Assistant Vice President/Regional Manager Assistant Vice President/Branch Manager
Manny Phagura
Assistant Vice President/Branch Manager
Administrative Management
Brenda Welch
Assistant Vice President/Branch Manager
Bruce Barnett
Senior Vice President/Chief Information Officer
Gayle Lee
Senior Vice President/Controller
Beverly Brinker
Administrative Vice President Audit Compliance Manager
Kash Gill
Administrative Vice President/Regional Manager
Michelle Beich
Vice President/Senior Commercial Lender Vice President/Senior Commercial Lender Vice President/Commercial Loan Officer
Tim James
Vice President/Senior Construction Lender
Steve Montandon
Vice President/Senior Commercial Lender
Jeremy Stone
Investments
Vice President/Loan Officer
Jadee Carter
Vice President/Investment Manager
CVB Insurance Agency, LLC Frank Hill
19
Vice President/Agency Manager
Annual Report 2004
Vice President/Note Department Manager
Lee Brown
Vice President Special Assets Manager and Security Officer
Phil Papeman
Vice President/Marketing Director
Carla Geyer
Assistant Vice President Senior Administrative Assistant
2001 Assets: $272 million
Bank Locations
Oroville
Colusa
2227 Myers Street Oroville, CA 95966 (530) 532-0800
1017 Bridge Street (inside Holiday Quality Foods) Colusa, CA 95932 (530) 458-5430
Chico South
Paradise South
Yuba City
1600 Butte House Road Yuba City, CA 95993 (530) 751-2700
Corning
672 Pearson Road Paradise, CA 95969 (530) 877-0857
Chico Central
Paradise North
Red Bluff
84 Belle Mill Road Red Bluff, CA 96080 (530) 528-3060
Citrus Heights LPO
6653 Clark Road Paradise, CA 95969 (530) 877-2506
Chico North
Magalia
Marysville
2041 Forest Avenue Chico, CA 95928 (530) 891-3494
900 Mangrove Avenue Chico, CA 95926 (530) 891-9000
908 Highway 99W, Suite D Corning, CA 96021 (530) 824-3966
5959 Greenback Lane #450 Citrus Heights, CA 95621 (916) 728-1600
Community Valley Bancorp
20 237 West East Avenue Chico, CA 95926 (530) 899-2347
14001 Lakeridge Circle (inside Holiday Quality Foods) Magalia, CA 95954 (530) 873-6854
812 “B” Street Marysville, CA 95901 (530) 741-0210
2002 Assets: $337 million February: Third Chico branch opened on Mangrove Avenue. April: Yuba City branch relocated to Feather Down Shopping Center. June: Community Valley Bancorp formed. Butte Community Bank is its principal asset.
Redding LPO
100 East Cypress Avenue, Ste 150 Redding, CA 96002 (530) 722-0295
GREATEST ANNUAL LOSS The greatest annual net loss by a company is $98.7 billion reported by AOL Time Warner on January 30, 2003. AOL Time Warner’s 2002 loss is approximately the same size as the gross domestic product of Israel.
Corporate Information Shareholder Relations Gayle Lee
Senior Vice President/Controller
Community Valley Bancorp 6653 Clark Rd Paradise, CA 95969 (530) 877-2506 x3161 glee@communityvalleybancorp.com
Headquarters
Community Valley Bancorp 2041 Forest Ave Chico, CA 95928 (530) 899-2344
Stock Listing
Symbol: CVLL Market: OTC Bulletin Board
Transfer Agent
U.S. Stock Transfer Corporation 1745 Gardena Ave Ste 200 Glendale, CA 91204-2991 (818) 502-1404 www.usstock.com
Independent Accountants Perry-Smith LLP 400 Capitol Mall, Suite 1200 Sacramento, CA 95814 (916) 441-1000 www.perry-smith.com
Internet
Community Valley Bancorp www.communityvalleybancorp.com Butte Community Bank www.buttecommunity.com CVB Insurance Agency, LLC www.cvbinsurance.com
Market Makers
Market Makers in Community Valley Bancorp stock are:
Dave Bonaccorso Hoefer & Arnett 555 Market St 18th Floor San Francisco, CA 94105 1-800-346-5544 www.hoeferarnett.com Troy Norlander & Michael Natzic The Seidler Companies, Inc PO Box 1688 Big Bear Lake, CA 92315 1-800-288-2811 www.seidlercos.com Ken Meyers Wachovia First Union Securities 360 Sierra College Dr, Suite 200 Grass Valley, CA 95945 1-888-383-3112
2003 Assets: $387 million May: Redding Loan Production Office opened. June: Magalia branch relocated to inside Holiday Quality Foods – Our first in-store branch. June: Second Paradise branch opened at Clark and Wagstaff.
July: Roseville loan production office relocated to Citrus Heights. September: Mangrove Center opened in Chico. November: North Chico branch relocated.
21
Annual Report 2004
Joey Warmenhoven Wedbush Morgan Securities 4949 SW Meadows Rd Ste 100 Lake Oswego, OR 97035 1-800-357-3680
Community American Cancer Society 2004 Relay for Life
Child Abuse Prevention Center 8th Annual Golf Fore Kids Sake
The ARC of Butte County 2004
CSUC Scour and Devour Community Clean-Up
Big Brothers Big Sisters of Butte County Bowl for Kids’ Sake 2004
CSUC Wildcat Century Club 3rd Annual Golf Tournament
Big Brothers Big Sisters of Butte County The Big Event 2004
Enloe Foundation Enloe Partners for Healthcare
Bob Busch All Star Baseball Classic
Fremont-Rideout Foundation Fairway to Health Golf Tournament 2004
Boys & Girls Club of Chico Links Across Time Golf Tournament Brews, Blues & BBQ Yuba City Early Riser Kiwanis Club Butte College Athletic Department Annual Holiday Bowl Butte College Small Business Development Center 6th Annual Women in Business Conference Butte Community College Foundation Spring Gala Butte County 4-H Council Center for Economic Development at CSUC 2005 Tri County Economic Forecast Conference Challenge Charter High School Yearbook Club
Community Valley Bancorp
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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 2004.
Friends of Chico Community Ballet Glenn County Fair Buyers’ Group Innovative Preschool, Inc Jesus Center Chico JP’s Paint & Body Works Knoxville Bound Benefit KALF St. Jude Children’s Hospital Radiothon Las Plumas FFA Las Plumas High School Football Program Las Plumas High School Girls Basketball Program LPGA Longs Drugs Challenge 2004
Chico Economic Planning Corporation (CEPCO) Corporate Sponsor Annual Dinner 2003
Nor Cal Think Pink Breast Cancer Awareness
Chico High School Pep Squad
North Valley Animal Disaster Group
Chico High School Ski & Snowboarding Dinner
North Valley Community Foundation
Chico FFA Parent Booster Club Chico Merchants Senior Softball
Omega Nu Alpha Beta Chapter “Swing into Spring” Table Mountain Classic
Chico Rooks Pro Soccer Foundation
Oro Dam Cruisers Gold Rush Car Show
Chico Starz Fastpitch Junior Olympic Softball
Oroville Bowling Association
2004 Assets: $450 million May: First Red Bluff branch opened. July: First Marysville branch opened. December: CVB Insurance Agency opens at Mangrove Center, Chico. First Colusa branch opened.
Oroville Chamber of Commerce City of Gold Triathlon
Red Bluff Round-Up Red Bluff - State Theatre for the Arts
Oroville Chamber of Commerce 17th Annual Table Mountain Scramble Golf Tournament
Red Bluff - Tehama County Chamber of Commerce 2004 California High School Rodeo Finals
Oroville Concert Association Rotary Club of Oroville Oroville Downtown Business Association (ODBA) Oroville Eagles Football Association Oroville High School Basketball Tournament Oroville High School Oroville High School Baseball Oroville Olives Baseball Club Oroville Sunrise Rotary Spring Wine Tasting and Arts & Crafts Sale & Show Oroville Sunrise Rotary Golf Event Palermo Community Council Paradise Blues & Brews The Exchange Club of Paradise
St. Thomas More School Evening in New York Benefit Auction St. Thomas the Apostle Catholic School Salvation Army Substance Abuse Program Silver Dollar Fair Junior Livestock Auction The Cartel Snow Goose Festival Soroptimist of Marysville/Yuba City A New York Night 2004 Soroptimist International of Downtown Redding 3rd Annual Redding Oscar Night Celebration Stover Celebrity Golf Tournament Girl Scouts of Sierra Cascade
Paradise Bowling Association Championship Bowling Tournament 2004
Sunshine Kids Club
Paradise Dash and Dine Benefit for Youth For Change
Sutter North Medical Foundation Sutter North Golf Classic
Paradise High School Graduation Night 2004
Tehama County Education Foundation SERRF After School Program Tehama District Fair 2004
Pink October Annual Survivor Fashion Show & Dinner
Tri County Economic Forecast Conference 2004
Pleasant Valley High School Grad Night
Youth For Change
Punjabi Women’s Cultural Organization
Yuba-Sutter Gold Sox Baseball
Red Bluff Junior Round-Up
Wyandotte Avenue School Oroville
MOST VALUABLE GUITAR Eric Clapton’s “Blackie” Fender Stratocaster guitar sold for $959,500 to US chain The Guitar Centre at Christie’s in New York on June 24, 2004.
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Annual Report 2004
Paradise North Little League
Our Newest Directors John Coger Joins Community Valley Bancorp Board of Directors
“It is with great pleasure that I announce the election of John Coger to serve on the Board of Directors of Community Valley Bancorp and Butte Community Bank. I know every one of us agrees that this appointment is well deserved and we congratulate John on his achievement.”
On September 21, 2004, the Board of Directors unanimously elected John Coger to serve on the board of both Butte Community Bank and its holding company, Community Valley Bancorp. A native of the West Coast, Coger grew up in Southern California and has spent over 30 years in banking. He currently serves as the Chief Financial Officer and Chief Operating Officer of Butte Community Bank and its holding company, Community Valley Bancorp. Both organizations have headquarters in Chico, California. Coger has been married to his wife Colleen for 27 years and together they have raised their two children Megan and Matthew. He has been active in coaching youth sports and has served on the board of the Boys and Girls Club of the North Valley. John and his family reside in Paradise, California.
Keith Robbins, CEO and President of Community Valley Bancorp
Luther McLaughlin Joins Community Valley Bancorp Board of Directors
Community Valley Bancorp
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On March 10, 2005, the Board of Directors unanimously elected Luther McLaughlin to serve on the board of both Butte Community Bank and its holding company, Community Valley Bancorp. McLaughlin has a 34-year career in public accounting which began when he served four years with Arthur Andersen & Co. prior to joining Matson and Isom Certified Public Accountants of Chico, California in 1975. He has served almost continually as a member of its Board of Directors for over 20 years and has been the Managing Director and President of Matson and Isom for more than ten years. Luther received a Bachelor of Science degree in accounting from Brigham Young University. He has been a member of the Chico Rotary Club since 1987 and has served with distinction on the Chico Interfaith Council. Luther and his wife Kathryn reside in Chico, California.
OLDEST MAN - LIVING Emiliano Mercado Del Toro (Puerto Rico), born in Cabo Rojo on August 21, 1891, became the oldest fully authenticated man residing in the world on January 17, 2005 at the age of 113 years and 149 days.
2005 March: First Corning branch opened. Summer: First full-service branch in Redding.
“I’m honored to announce the election of Luther McLaughlin to serve on the Board of Directors of Community Valley Bancorp and Butte Community Bank. As we continue to grow in the North Valley, Luther’s experience, expertise and leadership will be invaluable.We’re extremely fortunate that he has decided to accept our invitation.” Keith Robbins, CEO and President of Community Valley Bancorp
…
Our People
252 employees as of March 28, 2005
Fellner, Andreas Filmer, Reanette Flores, Debbie Flores, Mike Franco, Eva Franco, Gina Gates, Linda Gaussoin, Emerald Gayheart, David Geyer, Carla Ghiorso, Niki Gildea, Ruth Gill, Kashmir Glassgow, Nicole Gonzalez, Irene Grider, Eileen Gustafson, Damon Hamblin, Deboragh Hamblin, Kari Hard, Becky Hardesty, Brenda Harger, Diann Harnish, Julie Harris, Eli Hayes, Marilyn Heindell, Catherine Helberg, Dixie Hellon, Amber Hendel, Jessica Henderson, Christine Henshaw, Renee Hernandez, Abel Hernandez, Danielle Hernandez-Reeson, Patti Herndon, Jeannette Hill, Frank Hill, Windy Hoffie, Audrey Holland, Kathy Hollingsworth, Kelly Hollstrom, Krista Hoofard, Dawna Hoofard, Francine Hoover, Rachel Hopper, Christina Howder, Lilia Hughes, Johnnie Humlick, Cindy Hunt, Ellen Hunter, Andrea James, Tim Jimenez, Donna Johnson, Steve Jones, Lynsie Juanarena, Susan Kaiser, Kevin Keller, Jane Kemp, Ashley Kemp, Stacy Khamphasong, Rich Kirk, Jerry Kugelman, Kristy Laizure, Tammy Landis, Larry Larson, Craig
Larson, Heidi Lee, Gayle Lee, Lizette Leen, Donald Lindquist, Kyle Lobo, Wes MacNeill, Christina Martin, Shiloh Martin, Taryn Matulich, Vicky McCain, Sandy McCarthy, Rhonda McClure, Melanie McKillop, Deanna Medina, Gabriel Mendonca, Nancy Mercer, Annette Merck, Phyllis Michael, Ellen Milco, Kathy Miles, Dee Miley, Debbie Miley, Jeff Modes, Diane Moffitt, Sandi Montandon, Stephen Moody, Steve Morris, Stacey Mussmann, Michelle Nichols, Dana Novo, Cari Oakley, Brandon O’Brien, Amy Olsen, Janet O’Neill, Lanaee Osterlund, David Paniagua, Letty Papeman, Philip Parker, Pat Patterson, Amanda Pearman, Jonathan Pegany, Kirenjit Peters, Patty Peterson, Mike Phagura, Manny Pine, Amanda Preecs, Carole Presley, Liz Price, Ben Pritchett, William Pruitt, Nicole Reeson, Kelly Reinbold, David Renlund, Kate Reyes, Christy Richardson, Lajina Ridley, Betty Rilinger, Glenn Rilinger, Mandy Robbins, Keith Robbins, Michael Robertson, Calum Rohleder, Ashley Rudkin, Brad Ryan, Alaina
Ryan, Lisa Salcido, Katie Schneider, Trine Schooler, Andi Schreckengost, Kim Sellers, Barbara Shields, Robin Shores, Linda Siler, Adam Silver, Cori Simmons, Jan Simon, Julieanna Skelly, Heather Slocum, Patty Smith, Brian Smith, Diana Smith, Kristina Spearing, Ashley Spencer, Jim Spencer, Lorinda Stangeland, Sara Stanton, Gary Stone, Jeremy Sutcliffe, Marcy Taylor, Bruce Taylor, Yolinda Thoma, Katy Thompson, Beverly Thunen, Lisa Timm, Patti Traynor, Rhonda Turner, David Valdez, Mary Vega, Mona Versola, Marquesa Wagner, Pam Walsh, Mike Webb, Shirley Webster, Kelly Weigand, Doug Welch, Brenda West, Melanie White, Andrea White, Brandy Whittaker-Belben, Abigail Wilkerson, Teresa Williams, Jeremy Williams, Judy Willis, Amanda Wilson, Becky Wilson, Joanne Wilson, Julia Wilson, Linda Wittmeier, Russ Wolter, Heather Wright, Lori Yergenson, Brad
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Annual Report 2004
Abdulmasih, Rita Allison, Darren Allison, Doreen Almeida, Cheryl Alves, Cindy Andrade, Janet Arnold, Joel Aspromonte, Shellie Baker, Tyler Bales, Teresa Barbo, Terry Barnett, Bruce Barranti, Jill Barrett, Ryan Bass, Tanika Baumann, Amanda Becraft, Tara Beibers, Laurie Beich, Michelle Belben, Leah Bender, Erika Benson, Barrett Berge, Chris Berry, Peggy Bondza, Suzana Bowman, Brea Brannen, Karol Bravo, Jose Brinker, Beverly Brinker, Sheridan Brockman, Wendy Brown, Cindy Brown, Lee Brown, Tina Byland, Maria Carter, Jadee Carter, Rachel Cartoscelli, Angela Cerrato, Jeri Chiotti, Danielle Ciancio, Nicole Clausen, Kristina Coffelt, Jake Coffelt, Josh Coger, John Coger, Megan Cole, Bo Conard, Margo Conner, Jill Cornell, Shannon Corona, Margaret Crouse, Alyssa Crouse, Barbara Davis, Linda Dillard, Cindy Dodge, Kelley Dolan, Jenny Dorgali, Suzy Downs, Sarah Dwyer, Kathleen Eldredge, Tammy Ernenwein, Justin Evans, Joi Farwell, Becky Fawns, Denise
Community Valley Bancorp Annual Report
2004
Source of all records: Guinness World RecordsTM. 10 March 2005 http://www.guinnessworldrecords.com Pg.#’s: IV, 3, 4, 7, 8, 11, 13, 14, 16, 18, 20, 23, 24
2041 Forest Avenue, Chico CA 95928
www.communityvalleybancorp.com www.buttecommunity.com www.cvbinsurance.com