Community Valley Bancorp Annual Report 2005 ďŹ fteen years of excellence
II
Blank Solid Color
Serving Northern California for 15 Successful Years
(back of emboss)
Table of Contents Letter to Shareholders .........................................3 ProďŹ le ...................................................................5
1 III
Financial Growth ............................................ 6-7
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
C O M M U N I T Y VA L L E Y B A N C O R P
Discussion & Analysis ................................... 8-11
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Secure Financial Growth
Serving Northern California for 15 Successful Years
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.
To Our Shareholders Dear Shareholder: 2005 represents our completion of 15 full years of providing first class community
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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
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
C O M M U N I T Y VA L L E Y B A N C O R P
financial needs of the communities we serve.
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15 Years of Super Performance
Serving Northern California for 15 Successful Years
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.
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.
Profile CVB Insurance Agency, LLC, a subsidiary
Butte Community Payroll Systems, the
Butte Community Bank, a subsidiary of
of Community Valley Bancorp, is a full-
newest division of Butte Community Bank,
Community Valley Bancorp, is a progressive
service insurance agency offering all lines of
provides Northern California businesses
Northern California bank that combines
coverage from auto and health to commercial
with all essential payroll and tax services. We
traditional deposit and lending services with
and farm packages.
offer tax processing for all 50 states, custom
innovative banking solutions. As your one-stop insurance source, we can Founded in December, 1990, Butte
ensure you get the greatest insurance value
Community Bank is state-chartered with
for your dollar. Plus, by staying with CVB
reports, fax and online data input, job costing, general ledger service and complete training and support.
13 branches in 10 cities including Chico,
Insurance, you save time and money
We stay current on hundreds of regulation
Magalia, Oroville, Paradise, Yuba City, Red
because you can compare plans again
changes each year to keep our customers
Bluff, Marysville, Colusa, Corning and
anytime in the future.
compliant with the ever changing federal,
Redding. It also operates loan production offices in Citrus Heights and Gridley.
Now you can insure your business with a wide variety of products from top-name
From Community Workshops to complex
companies such as Zurich, Hartford, Blue
construction loans, Butte Community Bank’s
Shield, Chubb, Liberty Mutual and Lloyd’s of
mix of traditional and progressive financial
London.
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.
services is second to none in the markets we serve. Our status as a Small Business Administration (SBA) Preferred Lender
Butte Community Bank and CVB Insurance
coupled with our position as a top-ranked USDA Business & Industry Lender makes us
Butte Community Financial Services, a
the #1 choice for business and commercial
division of Butte Community Bank, offers
financing. Butte Community Bank also
the following investment options through
operates a progressive merchant services
LPL Financial Services:
department, a real estate loan division and an investment center.
• • • • • • • • • • •
401k Rollovers Annuities Asset Allocation Planning Stocks & Bonds Tax Strategies Education & College Planning Estate Planning Mutual Funds Portfolio Management Retirement Planning Individual Retirement Accounts
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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Serving Northern California for 15 Successful Years
1991
1993
(321,000) 24,632,000 21,649,000 18,246,000
Income Assets Deposits Loans
645,000 44,754,000 40,283,000 34,916,000
1992
559,000 35,592,000 31,983,000 27,921,000
1994
758,000 56,525,000 51,147,000 38,561,000
Financial Growth
C O M M U N I T Y VA L L E Y B A N C O R P
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Income Assets Deposits Loans
1995
1997
1,017,000 72,275,000 65,607,000 54,220,000
1999
1,409,000 118,419,000 108,253,000 89,738,000
1996
1,225,000 89,391,000 81,586,000 64,381,000
2001
2,223,000 158,167,000 142,876,000 118,411,000
1998
2,131,000 144,601,000 131,779,000 107,279,000
2003
3,811,000 272,464,000 246,420,000 197,875,000
2000
3,046,000 214,066,000 194,131,000 172,412,000
2005
5,269,000 386,723,000 342,511,000 270,231,000
2002
4,850,000 337,483,000 297,981,000 229,699,000
7,198,000 494,777,000 434,018,000 401,221,000
2004
5,610,000 449,675,000 399,059,000 339,174,000
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Serving Northern California for 15 Successful Years
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2005 and 2004.
Discussion & Analysis Non-Interest Income
Net interest income is the difference between
Non-interest income of $6.7 million
total interest income and total interest
increased $700,000 over the 2004 total. The
expense. It is expressed as a percentage of
primary traditional sources of non-interest
average earning assets and is referred to as
income for the Company are service charges
Overview
net interest margin. It is used to measure
on deposit accounts, gains on the sale of
the difference between the average rate of
loans, loan servicing income, alternative
Net income was $7,198,000 ($1.00 basic
interest earned on assets and the average rate
investment fees earned on the sales of non-
earnings per share) for 2005 compared to
of interest that must be paid on liabilities
deposit investment products and merchant
2004 earnings of $5,610,000 ($0.79 basic
used to fund those assets. The Company’s
credit card fees.
earnings per share). Return on beginning
net interest margin for 2005 was 6.32%, up
shareholders’ equity was 18.82% in 2005 and
from 5.70% in the year 2004. During 2005,
Non-Interest Expense
17.20% in 2004. Return on average assets
the Company’s net interest margin improved
in 2005 and 2004 was 1.51% and 1.34%,
The Company’s total non-interest expense
primarily as a result of the increase in loan
respectively.
increased to $20.9 million in 2005, as
volume and the increase in interest rates
compared to $16.8 million in 2004. Refer to
charged on these loans.
the Income Statement in the accompanying
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.
As of December 31, 2005, total assets were
Consolidated Financial Statements for a
$495 million, or a 10% increase over the
On an average basis, the rates on loans
$450 million at year end 2004. The Company
increased by 43 basis points resulting in an
had portfolio loans totaling $401 million at
increase in interest income of $1.7 million.
December 31, 2005, for an increase of $62
This increase in rates was augmented by
million, or an 18% increase over the $339
the increase in the average volume of loans
Salaries and employee benefits increased in
million at December 31, 2004. Deposits
of $69 million that generated an additional
2005 by $2.3 million, or 22.9% from 2004.
also increased 9% to $434 million from the
$5.2 million in loan related interest income.
This increase resulted from normal cost
previous year end total of $399 million. The
During 2005 overall interest income on
of living raises, salaries paid to employees
Company’s continued growth in its branch
earning assets increased by $7.5 million. Due
for a full year in 2005 at the three new
banking system along with the introduction
to the favorable changes in the Company’s
branch offices opened in 2004 in Red Bluff,
of new and varied banking products were
mix of deposits from the growth in average
Marysville and Colusa as well as the branch
principal factors in the increased totals.
balances of NOW, savings and money
office in Corning opened in March, 2005
market accounts, the Company was able to
and the branch office opened in Redding
increase the overall level of deposits while
in September, 2005. We also opened a Loan
controlling interest expense. The average
Production Office in the city of Gridley
rates paid on interest bearing deposits for
in July, 2005. Commissions paid to Butte
2005 was 1.42% compared to 1.22% in 2004.
Community Bank’s Real Estate Loan agents
detailed description of non-interest expense.
Salaries and Benefits
and staffing additions made during the year as the Company continued to grow also contributed to the increase.
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C O M M U N I T Y VA L L E Y B A N C O R P
Net Interest Income
This condensed discussion and analysis of
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Serving Northern California for 15 Successful Years
Other Expenses
Provision for Taxes
Risk Elements
Occupancy and equipment expenses were
The effective tax rate for 2005 was 40.8%
The majority of the Company’s loan
$2,969,000, an increase of $444,000 or
compared to 40.4% for 2004. The provision
activity is with customers located within
18% when compared to the 2004 total
for current taxes results from applying the
the service area of its branches or lending
of $2,525,000. Much of the increase in
current tax rate to taxable income, and is
offices. Approximately 90% of the total loan
occupancy expense was related to furniture,
in essence the actual current income tax
portfolio is located within the Company’s
fixtures and equipment for the new Red
liability. Some items of income and expense
service area. Significant concentrations of
Bluff, Marysville, and Colusa branches
are recognized in different years for tax
credit risk may exist if a number of loan
opened during 2004, and the Corning and
purposes than when applying accounting
customers are engaged in similar activities
Redding branch offices opened in 2005.
principles generally accepted in the United
and have similar economic characteristics.
The lease agreements and remodeling costs
States of America, however, leading to
The Company believes that it has policies
associated with these offices, also added to
differences between the Company’s actual
and procedures in place to monitor, mitigate
the year over year increase.
tax liability and the amount accrued for this
and identify any concentration of credit risk
liability based on book income.
in the portfolio.
Loans
Non-Performing Assets
A comparative schedule of outstanding
Management classifies all loans as non-
loan balances is presented in Note 3 to the
accrual when they become more than 90
Consolidated Financial Statements. Loan
days past due, or earlier when the timely
balances net of the allowance for loan losses
collection of interest or principal becomes
at December 31, 2005 were $401.2 million,
questionable. A loan remains in non-accrual
an increase of 18% from the $339.5 million
status until principal and interest are current
at year-end 2004. This increase, primarily
for a sufficient period of time and also meets
in the real estate lending area, is due to
the Company’s cash flow and collateral
the Company’s decision to continue to
requirements. When this criterion is not met,
concentrate on short-term secured loans.
the loan is charged-off against the allowance
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.
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.
(cont.)
Allowances for Loan Losses
Capital
Asset and Liability Management
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 $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 Company and the Bank are subject
The objective of asset and liability
to certain regulatory capital requirements
management is to manage the sensitivity
administered by the FDIC. The FDIC has
of net interest rate spreads to changes in
adopted risk-based capital guidelines which
interest rates. Management also attempts to
establish a risk-adjusted ratio relating
balance risk with profitability. Interest rate
capital to various categories of assets and off
sensitivity measures the difference in both
balance sheet exposures. The table showing
the timing and amount at which certain
the FDIC required ratios and the Company’s
assets and liabilities are re-priced. The
and the Bank’s actual ratios are shown in the
Company historically maintains the majority
Consolidated Financial Statements in Note
of its assets and liabilities with relatively
11. At December 31, 2005, the Company’s
short maturities to protect its net interest
total risk-based capital ratio was 12.5%, the
income from major shifts in rates.
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 Management The Bank’s liquidity is determined by the level of liquid assets (such as cash, federal funds sold and securities classified as
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 chargeoffs compared to industry standards reflects the Company’s sound underwriting policies and collection procedures.
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.
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C O M M U N I T Y VA L L E Y B A N C O R P
Discussion & Analysis
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Condensed Consolidated Balance Sheets (in thousands)
2005
Year Ended December 31, 2004
Serving Northern California for 15 Successful Years
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
Year Ended December 31, 2005 2004 2003 Interest income ..................................................................................... $32,438 ................$24,980......... $21,517 Interest expense ........................................................................................ 5,331 .................... 4,056............. 4,396 Net interest income...............................................................................27,107 ................. 20,924...........17,121 (in thousands, except per share data)
Provision for loan losses ............................................................................. 724 ...................... 734................ 586 Noninterest income .................................................................................. 6,711 .................... 6,018............. 5,950 Operating expense.................................................................................. 20,925 ..................16,795........... 13,887 Income before provision for income taxes .......................................... 12,169 .................... 9,413............. 8,598 Provision 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............. $0.75 Net income per share, diluted ................................................................. $0.95 .................... $0.74............. $0.71 Shares used to compute net income per share, basic .......................... 7,166 .................... 7,112............. 7,025 Shares used to compute net income per share, diluted ...................... 7,612 .................... 7,601............. 7,431 Dividends 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.
Condensed Statements Year Ended December 31, 2004 2003
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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)
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Condensed Consolidated Statements of Cash Flows (in thousands)
2005
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 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
Year Ended December 31, 2005 2004 2003 Beginning balance ................................................................................$34,531 ............. $29,949.........$25,380 (in thousands)
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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Serving Northern California for 15 Successful Years
Donald W. Leforce
Gary B. Strauss, MD
Chairman of the Board.
Vice Chairman
Retired. Past President
Retired
and Secretary/Treasurer of Compass Equipment, Inc., a distributor of mining and heavy construction equipment.
Charles Mathews Owner of Mathews Farms since 1965 and partner in Mathews Rice
John D. Lanam Retired
Dryer since 1980.
Board of Directors
James S. Rickards
Keith Robbins
John Coger
M. Robert Ching, MD
Eugene B. Even
Secretary. Real Estate
President and Chief
Executive Vice President,
Orthopedic Surgeon
Retired
Broker associated with
Executive Officer of
Chief Financial Officer
Century 21 Select.
Butte Community Bank
and Chief Operating
and Community Valley
Officer of Butte
Bancorp
Community Bank and
Ellis L. Matthews
Hubert Townshend
Jack B. Schmelke
Retired
Retired. Formerly
Retired
Community Valley Bancorp
Luther W. McLaughlin, CPA
involved in general engineering, contracting
Managing Director and
Robert L. Morgan, MD
President of Matson &
Retired
Isom Certified Public Accountants for more than ten years.
and equipment rental.
C O M M U N I T Y VA L L E Y B A N C O R P
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16
Return on Investment
Serving Northern California for 15 Successful Years
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.
Executive Group Keith Robbins
President Chief Executive Officer
John Coger
Executive Vice President Chief Financial Officer Chief Operating Officer
Bruce Barnett
Senior Vice President Chief Information Officer
Roger Janis
Senior Vice President Area Administrator
Steve Johnson
Senior Vice President RE Development and Risk Management
Craig Larson
Senior Vice President Chief Lending Officer
Russ Wittmeier
Senior Vice President Product Development Executive
Debbie Miley
Admin. Vice President Operations and HR Administrator
Brad Rudkin
Admin. Vice President Branch Banking Executive
Management Team Bank Branch Management
Lending
Gayle Lee
Cheryl Almeida
Glenn Rilinger
Senior Vice President Controller
Beverly Brinker
Admin.Vice President Audit Compliance Mgr.
Kash Gill
Admin.Vice President Regional Manager
Michelle Beich
Vice President Note Department Mgr.
Lee Brown
Vice President Special Assets Mgr. and Security Officer
Vice President Regional Branch Mgr.
Laurie Beibers
Vice President Branch Manager Sr. Commercial Lender
Cindy Brown
Vice President Branch Manager
Diane Modes
Vice President Branch Manager
Janet Olsen
Vice President Branch Manager
Phil Papeman
Katy Thoma
Carla Geyer
Andrea White
Vice President Marketing Director
Assistant Vice President Executive Assistant
Vice President Branch Manager
Vice President Branch Manager
Margaret Corona
Assistant Vice President Branch Manager
Manny Phagura
Assistant Vice President Branch Manager
Brenda Welch
Assistant Vice President Branch Manager
Admin. Vice President SBA/Commercial Loans
Doug Weigand
Admin. Vice President Commercial Lender
Kevin Kaiser
Corporate Vice President Sr. Commercial Lender
Marcy Sutcliffe
Corporate Vice President Sr. Commercial Lender
Joel Arnold
Vice President Sr. Commercial Lender
Erika Bender
Vice President Sr. Commercial Lender
Ruth Gildea
Vice President Commercial Loan Officer
Roger Hart
Vice President Sr. Commercial Lender
Butte Community Financial Services Bob Hetherwick
Vice President Commercial Loan Officer
Tim James
Vice President Sr. Construction Lender
Steve Montandon
Vice President Sr. Commercial Lender
Lorinda Spencer
Vice President Commercial Loan Officer
Jeremy Stone
Vice President Loan Officer
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Jadee Carter
Vice President LPL Registered Representative
Ellen Hunt
Assistant Vice President LPL Registered Principal
CVB Insurance Agency Frank Hill
Vice President Agency Manager
Butte Community Payroll Systems Scott Reynolds Sales Manager
C O M M U N I T Y VA L L E Y B A N C O R P
Administrative Management
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15 Years of Record Stock Price Gain
Serving Northern California for 15 Successful Years
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%.
Chico South
2041 Forest Avenue, Chico, CA 95928 (530) 891-3494
Chico Central
900 Mangrove Avenue, Chico, CA 95926 (530) 891-9000
Chico North
237 West East Avenue, Chico, CA 95926 (530) 899-2347
Bank Locations 19
Paradise South
672 Pearson Road, Paradise, CA 95969 (530) 877-0857
1600 Butte House Road Yuba City, CA 95993 (530) 751-2700
Corning
908 Highway 99W, Suite D Corning, CA 96021 (530) 824-3966
Paradise North
6653 Clark Road, Paradise, CA 95969 (530) 877-2506
Red Bluff
84 Belle Mill Road, Red Bluff, CA 96080 (530) 528-3060
Redding
100 East Cypress Avenue, Suite 150 Redding, CA 96002 (530) 722-0295
Marysville Magalia
812 “B” St, Marysville, CA 95901 (530) 741-0210
14001 Lakeridge Circle, Magalia, CA 95954 (inside Holiday Quality Foods) (530) 873-6854
Oroville
2227 Myers Street, Oroville, CA 95966 (530) 532-0800
Citrus Heights LPO
5959 Greenback Lane #450 Citrus Heights, CA 95621 (916) 728-1600
Colusa
1017 Bridge St, Colusa, CA 95932 (inside Holiday Quality Foods) (530) 458-5430
Gridley LPO
1010 Spruce Street, Gridley, CA 95948 (530) 846-3472
C O M M U N I T Y VA L L E Y B A N C O R P
Yuba City
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15 Years of Service Serving Northern California for 15 Successful Years
Beverly Brinker John Coger Gayle Lee Stacey Morris
Maria Byland Windy Hill Debbie Miley Keith Robbins
Abdulmasih, Rita Akers, Leslie Aldama, Megan Allison, Darren Allison, Doreen Almeida, Cheryl Altamirano, Cindy Andrade, Janet Arechar, Lesley Ann Arnold, Joel Aspromonte, Shellie Azevedo, Vicki Baker, Tyler Bales, Teresa Ball, Mindy Barbo, Terry Barnett, Bruce Barranti, Jill Barrett, Ryan Bass, Tanika Baumann, Amanda Beckett, Diane Becraft, Molly Becraft, Tara Beebe, Cathy Beibers, Laurie Beich, Michelle Belben, Leah Bender, Erika Benevento, Daniel Benson, Barrett Berge, Chris Berry, Peggy Bondza, Suzana Bowman, Brea Bravo, Jose Brinker, Beverly Brock, Audra Brockman, Wendy Brown, Cindy Brown, Lee Brown, Tina Brunelli, Rita Byland, Maria Byrne, Jacqueline Camolinga, Sylvia Carter, Jadee Carter, Rachel Cartoscelli, Angela Caughey, Amber
Cerrato, Jeri Chiotti, Danielle Ciancio, Nicole Clausen, Kristina Coffelt, Jake Coffelt, Josh Coger, John Coger, Megan Collins, Jeff Conard, Margo Conner, Jill Cornell, Shannon Corona, Margaret Cromwell, Sam Crouse, Barbara Davis, Linda Dillard, Cindy Dodge, Kelley Dolan, Jenny Dorgali, Suzy Eldredge, Tammy Ernenwein, Justin Esparza-Smith, Kristina Evans, Joi Fawns, Denise Fellner, Andreas Fillmer, Reanette Flores, Debbie Flores, Mike Franco, Eva Franco, Gina Gard, Becky Gates, Linda Gaussoin, Emerald Geyer, Carla Gildea, Ruth Gill, Harveen Gill, Kashmir Glassgow, Nicole Goble, Melissa Grider, Eileen Gustafson, Damon Hamblin, Deboragh
Hamblin, Kari Hard, Becky Hardesty, Brenda Harger, Diann Harnish, Julie Harris, Eli Hart, Roger Hayes, Marilyn Heindell, Catherine Helberg, Dixie Hendel, Jessica Henderson, Christine Henshaw, Renee Hernandez, Abel Hernandez-Reeson, Patti Herndon, Jeannette Hetherwick, Bob Hiell, Donna Hill, Frank Hill, Windy Hoffie, Audrey Holland, Kathy Hollingsworth, Kelly Hollstrom, Krista Hoofard, Francine Hoover, Rachel Hopper, Christina Howder, Lilia Hughes, Johnnie Humlick, Cindy Hunt, Ellen Hunter, Andrea Hutcheson, Shiloh Jackson, Helen James, Tim Janis, Roger Jimenez, Stephanie Johnson, Steve Jones, Lynsie Juanarena, Susan Kaiser, Kevin Keller, Jane Kemp, Ashley Kemp, Stacy Kirk, Jerry Klemens, Anton Koehn, Patricia
People Kremer, Emmalee Laizure, Tammy Landis, Larry Larson, Craig Larson, Heidi Lee, Gayle Lee, Lizette Leen, Donald Lehman, Darcie Lehman, Dick Lindquist, Kyle Lobo, Wes MacNeill, Christina Martin, Taryn Martinez, Tammi Matulich, Vicky McCain, Sandy McCarthy, Rhonda McClure, Melanie McKillop, Deanna Medina, Gabriel Mercer, Annette Michael, Ellen Milco, Kathy Miles, Dee Miley, Debbie Miley, Jeff Miley, Justin Miller, Justin Modes, Diane Moffitt, Sandi Monson, Amy Montandon, Stephen Moody, Steve Moore, Debbie Morris, Kristy Morris, Stacey Mussmann, Michelle Nichols, Dana Norris, Dixie Novo, Cari O’Brien, Amy Olsen, Janet On, Amber O’Neill, Lanaee Osterlund, David Paniagua, Letty Papeman, Philip Patterson, Amanda Pearman, Jonathan
Pegany, Kirenjit Peters, Patty Peterson, Mike Phagura, Manny Preecs, Carole Presley, Liz Price, Ben Pritchett, William Pruitt, Nicole Pusch, Michelle Ramirez, Jeannette Reeson, Kelly Reinbold, David Renlund, Kate Reyes, Christy Reynolds, Scott Richardson, Lajina Ridley, Betty Rilinger, Glenn Rilinger, Mandy Robbins, Keith Robertson, Calum Rohleder, Ashley Roldan, Ana Romanshek, Kevin Rudkin, Brad Ryan, Alaina Salcido, Katie Schneider, Trine Schreckengost, Kim Sellers, Barbara Shields, Robin Shoemaker, Lisa Shore, Ashely Shores, Linda Silver, Cori Simmons, Jan Simon, Julieanna Skelly, Heather Slocum, Patty
Smith, Brian Smith, Diana Spencer, Jim Spencer, Lorinda Stangeland, Sara Stanton, Gary Stone, Jeremy Sutcliffe, Marcy Sweeney, Britney Takhar, Poonam Taylor, Bruce Taylor, Carri Taylor, Yolinda Thoma, Katy Thompson, Beverly Thunen, Lisa Timm, Patti Traynor, Rhonda Turner, Beth Valdez, Mary Vanderlinde, Carole Vaughn, Mary Vaught, Rebecca Vega, Mona Vernon, Jim 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 Willis, Amanda Wilson, Becky Wilson, Joanne Wilson, Julia Wilson, Lauren Wilson, Linda Wittmeier, Russ Wolf, Brandi Wolter, Heather Wolter, Niki Woolsey, Ashley Wright, Lori
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C O M M U N I T Y VA L L E Y B A N C O R P
Our
280 Employees as of March 15, 2006
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Serving Northern California for 15 Successful Years
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.
Achieve Charter School Alzheimer’s Association Memory Walk 2005
American Cancer Society 2005 Relay for Life
American Heart Association
Heart Night at the Oscars Gala 2005
Arbuckle Revitalization Committee Annual Depot BBQ and Car Show
The ARC of Butte County Athletic Horizons Barry R. Kirshner Wildlife Foundation Big Brothers Big Sisters of Butte County Bowl for Kids’ Sake 2005
Bob Busch All Star Baseball Classic Boys & Girls Club of Chico
Links Across Time Golf Tournament Paradise Ridge Inaugural Special Recognition Dinner
Building Industry Association 14th Annual Golf Tournament
Butte College Small Business Development Center 7th Annual Women in Business Conference
California Peach Festival (Marysville) California State University, Chico Superior Ag Golf Tournament
Community Support Old Fashioned Barbecue (Yuba City)
Challenger Division Baseball Chico AquaJets Swim Team
Decorators Dream House 2005 Durham Rotary Harvest Festival Enterprise Starship Live Entertainment
Chico Concours d’Elegance
Exceptional Soccer League (Chico)
Chico High School Foundation
Family Solutions (Chico)
Chico High School Grad Night
Feather River Health Foundation
Chico Merchants
Competitive Senior Softball
Chico Museum Association Threshing Bee Sponsorship
Chico Outlaws
School Reading Program
Chico Police Department
Mounted Enforcement Team
Chico Rooks Pro Soccer Foundation Chico Senior Soft Ball Chico Sunrise Rotary Club Rotary Night at the Races
Chico Tennis Club Chico Valley Scorchers
Youth Football & Cheer Program
Chico Veterans Memorial Committee Veterans Memorial Fund
Center for Economic Development at CSUC
2005 Tri County Economic Forecast Conference
Hispanic Business Association Cinco De Mayo Fiesta
Colusa Area Little League Colusa Concerts in the Park
Feather River Scramble Golf Tournament
Focus Club of Gridley Forward Redding Foundation Fremont-Rideout Hospice Program Fairway to Health Golf Tournament
Oroville High School
Basketball Tournament
Paradise Blues & Brews
The Exchange Club of Paradise
Paradise Bowling Association
Championship Bowling Tournament 2005
Paradise High School Graduation Night 2005 Paradise Police Department Tactical Deployment Vehicle
Pediatric Brain Tumor Foundation Harris Cup Miniature Golf Tournament
Pioneer Parade (Williams)
Friends of Chico Community Ballet
Pleasant Valley High School
Future Farmers of America Booster Club
Punjabi-American Festival (Yuba City)
Girl Scouts of Sierra Cascade Stover Celebrity Golf Classic
Hamilton High School
Baseball Golf Tournament
Innovative Preschool (Chico) Spaghetti Feed
Boys Varsity Basketball Tournament
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
International Organization of Punjabi Women (Yuba City)
Skyway House (Chico)
Jesus Center (Chico)
Snow Goose Festival
Women’s Dance Festival
Benefit Golf Tournament October 3, 2005
St. Jude Children’s Hospital Radiothon KALF Radio
Kiwanis Club of Yuba City 11th Annual Lobster Feed
Marigold School (Chico) Jog-A-Thon
Annual Benefit Dinner
Superior California Economic Development Business Financing Conference Redding
Sutter North Golf Classic (Yuba City) Sutter North Medical Foundation
Taste of Tehama
Microbrew Festival
Tehama District Fair (Red Bluff)
Colusa County Fair Parade
Northern California Ballet
TOPCats on the Ridge
Corning Car Show
North Valley Community Foundation (Chico)
Wildcat Century Club
Oroville Chamber of Commerce
Woodson Bridge Nature Trail Project (Corning)
Oroville Economic Development Corporation (OEDCO)
Youth for Change
Corning Chamber of Commerce Hometown Christmas
Corning Jr. Rodeo Association
24th Annual Corning Junior Rodeo
Corning Olive Festival CP Auto Racing Team (Chico)
Table Mountain Scramble Golf Tournament
Annual Dinner 2005
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Four-Person Scramble Golf Tournament
Yuba-Sutter Chamber of Commerce
September Business After Hours: “Great Balls of Fire”
C O M M U N I T Y VA L L E Y B A N C O R P
Casa de Esperanza
Corporate Information 24
Shareholder Relations
Headquarters
Gayle Lee
Community Valley Bancorp
Senior Vice President/Controller Community Valley Bancorp
Serving Northern California for 15 Successful Years
6653 Clark Rd Paradise, CA 95969 (530) 877-2506 x3161 glee@communityvalleybancorp.com
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
2041 Forest Ave Chico, CA 95928 (530) 899-2344 www.communityvalleybancorp.com
Butte Community Bank 2041 Forest Ave Chico, CA 95928 (530) 899-7100 www.buttecommunity.com
Butte Community Financial Services 936 Mangrove Ave Chico, CA 95926 (530) 892-4968 www.buttecommunityďŹ nancial.com
CVB Insurance Agency 936 Mangrove Ave Chico, CA 95926 (530) 893-1466 www.cvbinsurance.com
Butte Community Payroll Systems 2041 Forest Ave Chico, CA 95928 (530) 899-1636 www.buttecommunitypayroll.com
Market Makers Market Makers in Community Valley Bancorp stock are:
Sandler O’Neill & Partners, LP 919 Third Ave, 6th Floor New York, NY 10022 1-800-635-6851 www.sandleroneill.com
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
Joey Warmenhoven Wedbush Morgan Securities 4949 SW Meadows Rd Ste 100 Lake Oswego, OR 97035 1-800-357-3680
C O M M U N I T Y VA L L E Y B A N C O R P
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2041 Forest Avenue, Chico CA 95928 www.communityvalleybancorp.com