Building for your future
community valley bancorp 2006 Annual Report
Table of Contents: Shareholder Letter.............. 2 Profiles................................ 3 Financial Growth..................... 4 2006 Highlights.......................6 Discussion and Analysis.......... 8 Condensed Statements......... 12 Board of Directors...............14 Management........................... 15 Locations............................... 16 Community Support..................17 Our people............................ 18 Corporate Information.......... 20
to our shareholders
Dear Shareholder:
2006 was a year involving great change in our company. It was a year where we performed at the top of our peer group with better than 15% Return on Equity, but suffered the effects of some nonrecurring expenses. These expenses offset the increases in 2006 gross income. In this year we started to see the fruits of the completion of our expansion in the North State. We opened new branch locations in Corning, Red Bluff, Redding and Marysville. We started the construction of a new branch in Anderson and second branches in both the Redding and Yuba City markets. These additional financial centers should be operational during the second half of 2007. We also started the remodel of our original branch site in Paradise and put into place the Payroll Division outlined last year. All of these long term goals and investments do come with the related expenses of construction, disruption of services and the cost of staffing and training for the future. Even with this challenge, we were able to enhance our gross revenues. This helped us to overcome the tremendous increase in interest expense by our industry as a result of the many significant increases in the interest rates during the year and the slow down in the housing and construction markets. The regulatory environment of the last few years saw us having to make the nonrecurring adjustments to the expense allocations for our Employee Retirement Account, ESOP and Option Share expense. These one time assessments were instrumental in our reporting flat earnings per share for the year. We believe that the recognition of these changes and the investments we continue to make in the future with new branches and experienced bankers to staff them, will pay large benefits as we continue to grow as a premier high performing bank.
Keith Robbins President Chief Executive Officer
Don Leforce Chairman of the Board COMMUNITY VALLEY BANCORP
2006 annual report
Butte Community Insurance Agency, LLC, a subsidiary of Community Valley Bancorp, is a fullservice insurance agency offering all lines of coverage from auto and health to commercial and farm packages. We offer insurance products from industry leaders: - AIG - American Modern - Blue Shield of California - Blue Cross of California
- Chubb - Financial Pacific - Liberty Mutual - Lloyd’s of London
profiles
Butte Community Bank, a subsidiary of Community Valley Bancorp, is a progressive Northern California bank that combines traditional deposit and lending services with innovative banking solutions. Founded in December, 1990, Butte Community Bank is state-chartered with 13 branches in 10 cities including Chico, Magalia, Oroville, Paradise, Yuba City, Red Bluff, Marysville, Colusa, Corning and Redding. It also operates loan production offices in Citrus Heights and Gridley.
- Golden Eagle - Hartford - State Compensation Insurance Fund - Zurich
Butte Community Financial Services, a division of Butte Community Bank, offers the following investment options through LPL Financial Services: - 401k Rollovers - Annuities - Asset Allocation Planning - Stocks & Bonds
- Estate Planning - Retirement Planning - Tax Strategies - Direct Investments
- Mutual Funds - Portfolio Management - Individual Retirement Accounts - Education & College Planning
Butte Community Payroll Systems, a division of Butte Community Bank, provides Northern California businesses with all essential payroll and tax services. We offer tax processing for all 50 states, custom reports, fax and online data input, job costing, general ledger service and complete training and support. We stay current on hundreds of regulation changes each year to keep our customers compliant with the ever changing federal, state and local tax laws. COMMUNITY VALLEY BANCORP
Butte Community Bank and Butte Community Insurance Agency are subsidiaries of Community Valley Bancorp, a financial holding company. Community Valley Bancorp was founded in 2002 to provide a wider range of financial services to the communities it serves. It has headquarters in Chico, California.
2006 annual report
Banking products such as checking accounts, savings accounts and certificates of deposit are FDIC insured and are offered through Butte Community Bank, an FDIC member. Butte Community Bank and LPL Financial Services are not affiliated. Investments available through LPL Financial Services are not insured by the FDIC, or any other regulatory agency, are not deposits or obligations of, nor guaranteed by, Butte Community Bank or any other affiliated entity. Investments are subject to investment risks including loss of the principal invested. Butte Community Insurance Agency, LLC is a wholly owned subsidiary of Community Valley Bancorp and can process insurance requests for both Butte Community Bank customers and non-customers. Purchasing insurance from Butte Community Insurance Agency is not a condition of obtaining credit at Butte Community Bank.
financial growth
assets
600,000,000 500,000,000 400,000,000 300,000,000 200,000,000 100,000,000 0 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
deposits
600,000,000 500,000,000 400,000,000 300,000,000 COMMUNITY VALLEY BANCORP
200,000,000 100,000,000
2006 annual report
0 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
loans
financial growth
500,000,000 450,000,000 400,000,000 350,000,000 300,000,000 250,000,000 200,000,000 150,000,000 100,000,000 50,000,000 0
‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
income
8,000,000 7,000,000 6,000,000 5,000,000 4,000,000
COMMUNITY VALLEY BANCORP
3,000,000 2,000,000 1,000,000 0
2006 ‘91 ‘92 ‘93 ‘94 ‘95 ‘96 ‘97 ‘98 ‘99 ‘00 ‘01 ‘02 ‘03 ‘04 ‘05 ‘06
annual report
2006 highlights COMMUNITY VALLEY BANCORP
2006 annual report
q 1
january
q 2
april
q 3
july
q 4
october
January 20, 2006 Record Earnings for 2005 Community Valley Bancorp announced record earnings for the year ended December 31, 2005. The Company achieved earnings of $7.198 million, an increase of 28.3% compared to earnings of $5.610 million for the year ended December 31, 2004. Fourth quarter earnings were $1.855 million, an increase of 26.8% from 2004 fourth quarter earnings of $1.463 million.
April 14, 2006 Acceptance into the NASDAQ Capital Market Community Valley Bancorp announced its acceptance into The NASDAQ Capital Market under the trading symbol CVLL. The initial trade date was May 1, 2006.
July 31, 2006 New Redding Location Butte Community Bank relocates its Redding branch to 2951 Churn Creek Road, at the corner of Churn Creek and Hartnell. The 6,500 squarefoot facility offers full-service banking, commercial lending, government lending and 24-hour ATM.
October 30, 2006 New Marysville Location Butte Community Bank moves its Marysville branch to 904 B Street at the new Watermarke Plaza on the east shore of Ellis Lake. The much-anticipated facility offers full-service banking, including 24-hour ATM and drive-through banking.
february February 24, 2006 Butte Community Payroll Systems The Bank announces the formation of a payroll services division. Butte Community Payroll Systems will provide Northern California businesses with all essential payroll and tax services. Opening in March, the new division will offer tax processing for all 50 states, custom reports, fax and online data input, job costing, general ledger service and complete training and support.
may May 25, 2006 Annual Shareholders Meeting In recognition of the Bank’s 15-Year Anniversary, the 2006 Annual Shareholders Meeting was help at Lakeside Pavilion at California Park in Chico, California.
august August 22, 2006 Online Live Chat Service Introduced Butte Community Bank announces the installation of live chat service on selected pages of its main website at www.buttecommunity.com. The new system enables Bank customer relations agents to provide live online assistance to website visitors when they request help.
november November 20, 2006 New Corning Location Butte Community Bank relocates its Corning branch to 950 Highway 99W directly across from its previous location. The purpose-built 4,300 square-foot facility offers full-service banking, including 24-hour ATM and drive-through banking. November 20, 2006 Bank Ranked #1 Business and Industry Lender in the Nation Butte Community Bank announces that it has been ranked the number one USDA Business and Industry (B&I) Lender in the United States for the fiscal year ending September 30, 2006. Administrative vice president Glenn Rilinger and his staff at the government lending division of Butte Community Bank originated 15 loans totaling over $46.1 million.
march
june June 26, 2006 New Red Bluff Location Butte Community Bank relocates its Red Bluff branch to 10 Gilmore Road, right across the street from its old location in the Belle Mill Landing shopping center. The purpose-built 4,500 squarefoot facility offers full-service banking, including 24-hour ATM and drive-through banking. The Bank leases adjacent space under the same roof to Cingular Wireless and Subway Restaurant.
2006 Highlights
March 15, 2006 Quarterly Dividend Increases Community Valley Bancorp announced a 25% increase in its quarterly dividend from $0.04 to $0.05 per share.
June 27, 2006 Quarterly Dividend Increases Community Valley Bancorp announced a 20% increase in its quarterly dividend from $0.05 to $0.06 per share.
september September 15, 2006 Quarterly Dividend Increases Community Valley Bancorp announced a 16.7% increase in its quarterly dividend from $0.06 to $0.07 per share.
december December 1, 2006 America’s Community Bankers NASDAQ Index Community Valley Bancorp added to the America’s Community Bankers NASDAQ Index. The index includes 529 community banks with a market capitalization of about $210 billion and is the most broadly representative stock index for the community bank segment of the banking industry. December 22, 2006 Quarterly Dividend Increases Community Valley Bancorp announced a 14.3% increase in its quarterly dividend from $0.07 to $0.08 per share.
COMMUNITY VALLEY BANCORP
2006 annual report
discussion & analysis
Management’s Discussion and Analysis Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2006 and 2005. This condensed discussion and analysis of the Company’s financial position and results of operations should be read in connection with the Company’s Annual Report on Form 10-K for the year ended December 31, 2006.
Overview Net income was $7,151,000 ($0.98 basic earning per share) for 2006 compared to 2005 earnings of $7,198,000 ($1.00 basic earnings per share). Return on beginning shareholders’ equity was 15.99% in 2006 and 18.82% in 2005. Return on average assets in 2006 and 2005 was 1.38% and 1.51%, respectively. As of December 31, 2006, total assets were $550 million, or an 11% increase over the $495 million at year end 2005. The Company had portfolio loans totaling $442 million at December 31, 2006, for an increase of $41 million, or 10% over the $401 million at December 31, 2005. Deposits also increased 12% to $485 million from the previous year end total of $434 million. The Company’s continued growth in its branch banking system along with the introduction of new and varied banking products were principal factors in the increased totals.
Net Interest Income
COMMUNITY VALLEY BANCORP
2006 annual report
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 2006 was 6.62%, up from 6.32% in the year 2005. During 2006, the Company’s net interest margin improved primarily as a result of the increase in loan volume and the increase in interest rates charged on these loans. On an average basis, the rates on loans increased by 79 basis points resulting in an increase in interest income of $3.7 million. This increase in rates was augmented by the increase in the average volume of loans of $62 million that generated an additional $4.9 million in loan related interest income. During 2006 overall interest income on earning assets increased by $8.4 million. The Company’s mix of deposits changed in 2006 as the average balances of lower cost interest bearing demand deposits declined by $7 million and higher cost certificates of deposit increased by $50 million. The average rates paid on interest bearing deposits for 2006 was 2.33% compared to 1.42% in 2005.
Non-interest income of $6.7 million was unchanged over the 2005 total. The primary traditional sources of non-interest income for the Company are service charges on deposit accounts, gains on the sale of loans, loan servicing income, alternative investment fees earned on the sales of non-deposit investment products and merchant credit card fees.
Non-Interest Expense
discussion & analysis
Non-Interest Income
The Company’s total non-interest expense increased to $25 million in 2006, as compared to $21 million in 2005. Refer to the Income Statement in the accompanying Consolidated Financial Statements for a detailed description on non-interest expense.
Salaries and Benefits Salaries and employee benefits increased in 2006 by $3.2 million, or 25.7% from 2005. These increases were primarily due to normal salary and benefit cost increases, salaries paid to new employees, and increases in compensation costs related to the ESOP.
Other Expenses Occupancy and equipment expenses were $3,480,000, an increase of $511,000 or 17% when compared to the 2005 total of $2,969,000. Much of the increase in occupancy expense was related to furniture, fixtures and equipment for the new Red Bluff, Redding, Corning, and Marysville branches that were relocated into new facilities during 2006. Expenses representing accounting and other professional fees, telephone and data communications, postage and mail, stationery and supplies, director fees and retirement accruals, advertising and promotion, and other expenses totaled $6,118,000 for 2006 compared to $5,686,000 in 2005. Management considers this increase in expenses commensurate with the growth of the Company.
Provision for Taxes The effective tax rate for 2006 was 41.6% compared to 40.8% for 2005. The provision for current taxes results from applying the current tax rate to taxable income, and is in essence the actual current income tax liability. Some items of income and expense are recognized in different years for tax purposes than when applying accounting principles generally accepted in the United States of America, however, leading to differences between the Company’s actual tax liability and the amount accrued for this liability based on book income.
COMMUNITY VALLEY BANCORP
2006 annual report
discussion & analysis
Loans 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, 2006 were $442.2 million, an increase of 18% from the $401.2 million at year-end 2005. This increase, primarily in the real estate lending area, is due to the Company’s decision to continue to concentrate on shortterm secured loans.
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.
Non-Performing Assets 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 nonaccrual 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 chargedoff against the allowance for loan losses, or in the case of real estate loans, is transferred to other real estate. The Company’s non-performing assets as a percent of net loans totaled 0.51% at December 31, 2006 and 0.002% at December 31, 2005.
Allowances for Loan Losses
COMMUNITY VALLEY BANCORP
2006 annual report
10
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 $775,000 in 2006 and $724,000 in 2005. This change in the provision is a reflection of the growth in total loans and management’s evaluation and assessment of the loan portfolio. The Company maintains a separate allowance for losses related to undisbursed loan commitments. Management estimates the amount of probable losses by applying the loss factors used in the allowance for loan loss methodology to an estimate of the expected usage and applies the factor to the unused portion of undisbursed lines of credit. The allowance totaled $619,000 and $481,000 at December 31, 2006 and 2005, respectively, and is included in accrued interest payable and other liabilities on the balance sheet. The allowance for loan losses is maintained at a level considered adequate to provide for losses that can reasonably be anticipated. The allowance and relevant changes are shown in Note 3 to the
Capital
discussion & analysis
Consolidated Financial Statements. At December 31, 2006 the allowance for loan losses was $5.3 million or 1.18% of total loans, compared to $4.7 million or 1.16% in 2005. The Company recorded net charge-offs of $80,000 in 2006 compared to net charge-offs of $8,000 in 2005. The continued low level of charge-offs compared to industry standards reflects the Company’s sound underwriting policies and collection procedures.
The Company and the Bank are subject to certain regulatory capital requirements administered by the FDIC. The FDIC has adopted risk-based capital guidelines which establish a risk-adjusted ratio relating capital to various categories of assets and off balance sheet exposures. The table showing the FDIC required ratios and the Company’s and the Bank’s actual ratios are shown in the Consolidated Financial Statements in Note 11. At December 31, 2006, the Company’s total riskbased capital ratio was 11.9%, the Tier 1 risk-based capital was 10.9% and the leverage capital ratio was 10.1%. All ratios exceed the minimum guidelines of 8%, 4% and 4% respectively. The ratios at December 31, 2005 were 12.5%, 11.4% and 9.8%, respectively.
Liquidity 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, 2006, the Company’s liquidity ratio (cash, fed funds, and securities) as a percentage of total liabilities was 13% as compared to 12% at December 31, 2005.
Asset and Liability 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.
COMMUNITY VALLEY BANCORP
2006 annual report
11
Condensed Consolidated Balance Sheets
condensed Statements
(in thousands)
Year Ended December 31, 2006 2005
Assets: Cash and cash equivalents $62,628 $48,003 Securities 5,127 6,676 Net loans, including loans held for sale 443,041 403,418 Other assets 39,241 36,680 Total assets $550,037 $494,777 Liabilities and shareholders’ equity: Deposits $484,856 $434,018 Borrowings 1,217 1,782 Other liabilities 18,237 17,422 Total liabilities 504,310 453,222 Shareholders’ equity 45,727 41,555 Total liabilities and shareholders’ equity $550,037 $494,777
Condensed Consolidated statements of income (in thousands, except per share data)
Year Ended December 31, 2006 2005 2004 Interest income $40,814 $32,438 $24,980 Interest expense 9,532 5,331 4,056 Net interest income 31,282 27,107 20,924 Provision for loan losses 775 724 734 Noninterest income 6,769 6,711 6,018 Operating expense 25,023 20,925 16,795 Income before provision for income taxes 12,253 12,169 9,413 Provision for income taxes 5,102 4,971 3,803 Net income
COMMUNITY VALLEY BANCORP
2006 annual report
12
Net income per share, basic Net income per share, diluted Shares used to compute net income per share, basic Shares used to compute net income per share, diluted Dividends paid per share
$7,151
$7,198
$5,610
$0.98 $0.93 7,280 7,680 $0.22
$1.00 $0.95 7,166 7,612 $0.16
$0.79 $0.74 7,112 7,601 $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 Consolidated statements of changes in shareholders’ equity (in thousands)
Exercise of stock options 1,000 1,039 532 Cash dividends (1,933) (1,092) (1,097) Earned ESOP shares 609 251 180 Shares acquired by ESOP (354) (348) (150) Changes in unrealized gain (loss) on securities available for sale 22 (24) 9 Stock Option Expense 175 Repurchase and retirement of common stock (2,498) (502) Net income 7,151 7,198 5,610 Ending balance $45,727 $41,555 $34,531
condensed statements
Year Ended December 31, 2006 2005 2004 Beginning balance $41,555 $34,531 $29,949
Condensed Consolidated statements of cash flows (in thousands)
Year Ended December 31, 2006 2005
2004
Cash flows from operating activities: Net income $7,151 $7,198 $5,610 Adjustments to reconcile net income to net cash provided by operations 2,936 2,892 5,788 Net cash provided by operating activities 10,087 10,090 11,398 Cash flows from investing activities: (Purchases) and sales or maturities of securities, net 5,935 2,341 (3,446) Net increase in loans made to customers (41,361) (62,477) (69,722) Other, net (6,820) (5,187) (1,908) Net cash used in investing activities (42,246) (65,323) (75,076) Cash flows from financing activities: Net increase in deposits 50,838 34,959 56,548 ESOP note, net (119) (199) (149) Dividends paid (1,637) (1,069) (1,089) Cash paid for fractional shares (6) Proceeds from exercise of stock options 1,000 527 284 Repurchase of common stock (2,498) (502) Proceeds from note payable (800) 800 Net cash provided by financing activities 46,784 35,018 55,086 Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year
14,625 48,003
(20,215) 68,218
(8,592) 76,810
$62,628
$48,003
$68,218
COMMUNITY VALLEY BANCORP
2006 annual report
13
board of directors COMMUNITY VALLEY BANCORP
M. Robert Ching, MD Orthopedic Surgeon
Luther McLaughlin, CPA Certified Public Accountant, an owner and past president of Matson & Isom, a public accountancy corporation.
John Coger Executive Vice President, Chief Financial Officer and Chief Operating Officer of Butte Community Bank and Community Valley Bancorp.
Robert L. Morgan, MD Retired
Eugene B. Even Retired
James S. Rickards Secretary. Real Estate Broker associated with Century 21 Select.
John D. Lanam Retired
Keith Robbins President and Chief Executive Officer of Butte Community Bank and Community Valley Bancorp.
Donald W. Leforce Chairman of the Board. Retired. Past President and Secretary/Treasurer of Compass Equipment, Inc., a distributor of mining and heavy construction equipment.
Jack B. Schmelke Emeritus
Charles Mathews Owner of Mathews Farms since 1965 and partner in Mathews Rice Dryer since 1980.
Gary B. Strauss, MD Vice Chairman / Retired
Ellis L. Matthews Retired
Hubert Townshend Retired. Formerly involved in general engineering, contracting and equipment rental.
2006 annual report
14
Executive Group Keith Robbins President/Chief Executive Officer John Coger Executive Vice President/Chief Financial Officer and Chief Operating Officer
Roger Janis Senior Vice President/Area Administrator Steve Johnson Senior Vice President/RE Development and Risk Management Craig Larson Senior Vice President/Chief Lending Officer Russ Wittmeier Senior Vice President/Product Development Executive Debbie Miley Administrative Vice President/Operations and HR Administrator Brad Rudkin Administrative Vice President/Branch Banking Executive
Administrative Management 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/Note Department Manager Lee Brown Vice President/Special Assets Manager Jeri Cerrato Vice President/Credit Services Manager Jeff Collins Vice President/Technology Officer Barbara Crouse Vice President/Senior Financial Officer Phil Papeman Vice President/Director of Web Services Jim Wabs Vice President/Staff Appraiser Julia Wilson Vice President/Electronic Banking Manager Carla Geyer Assistant Vice President/Executive Assistant Becky Hard Assistant Vice President/Systems Administrator Patti Hernandez-Reeson Assistant Vice President/Security Officer Deanna McKillop Assistant Vice President/Call Center Operations Manager Kim Schreckengost Assistant Vice President/Real Estate Department Manager Beth Turner Assistant Vice President/HR Manager
Bank Branch Management Cheryl Almeida Vice President/Regional Branch Manager
Laurie Beibers Vice President/Branch Manager - Senior Commercial Lender
Rosemary Daoust Vice President/Branch Manager Cindy Fisher Assistant Vice President/Branch Manager Diane Modes Vice President/Branch Manager Janet Olsen Vice President/Branch Manager Katy Thoma Vice President/Branch Manager Andrea White Vice President/Branch Manager Margaret Corona Assistant Vice President/Branch Manager Manny Phagura Assistant Vice President/Branch Manager
Lending
Glenn Rilinger Administrative Vice President/SBA and Commercial Loans Doug Weigand Administrative Vice President/Commercial Lender Kevin Kaiser Corporate Vice President/Senior Commercial Lender
management
Bruce Barnett Senior Vice President/Chief Information Officer
Cindy Brown Vice President/Branch Manager
Marcy Sutcliffe Corporate Vice President/Senior Commercial Lender Joel Arnold Vice President/Senior Commercial Lender Erika Bender Vice President/Senior Commercial Lender Ruth Gildea Vice President/Commercial Loan Officer Roger Hart Vice President/Senior Commercial Lender Bob Hetherwick Vice President/Commercial Loan Officer Tim James Vice President/Senior Construction Lender Steve Montandon Vice President/Senior Commercial Lender
Butte Community Financial Services
Jadee Carter Vice President/LPL Registered Representative Ellen Hunt Assistant Vice President/LPL Registered Principal
Butte Community Insurance Agency Dee Sousa Agency Manager/Commercial Agent
Butte Community Payroll Systems Scott Reynolds Manager
COMMUNITY VALLEY BANCORP
2006 annual report
15
locations
Full-Service Northern California Branches Chico Central 900 Mangrove Ave, Chico, CA 95926 (530) 891-9000 Chico North 237 West East Ave, Chico, CA 95926 (530) 899-2347
Loan Production Offices Citrus Heights 5959 Greenback Ln #450, Citrus Heights, CA 95621 (916) 728-1600 Gridley 1010 Spruce St, Gridley, CA 95948 (530) 846-3472
Departments
Chico South 2041 Forest Ave, Chico, CA 95928 (530) 891-3494
Butte Community Insurance Agency 936 Mangrove Ave, Chico, CA 95926 (530) 893-1466
Colusa 1017 Bridge St, Colusa, CA 95932 (inside Holiday Quality Foods) (530) 458-5430
Government Lending 936 Mangrove Ave, Chico, CA 95926 (530) 332-9120
Corning 950 Highway 99W, Corning, CA 96021 (530) 824-3966 Magalia 14001 Lakeridge Cir, Magalia, CA 95954 (inside Holiday Quality Foods) (530) 873-6854 Marysville 904 “B” St, Marysville, CA 95901 (530) 741-0210
Butte Community Financial Services 936 Mangrove Ave, Chico, CA 95926 (530) 892-4968 Butte Community Payroll Systems 2041 Forest Ave, Chico, CA 95928 (530) 899-1636 Community Valley Bancorp Stanton Center 1360 East Lassen Ave, Chico, CA 95973 (530) 566-1059
Oroville 2227 Myers St, Oroville, CA 95966 (530) 532-0800 Redding
Paradise North 6653 Clark Rd, Paradise, CA 95969 (530) 877-2506
Red Bluff
Paradise South 672 Pearson Rd, Paradise, CA 95969 (530) 877-0857 Red Bluff 10 Gilmore Rd, Suite C, Red Bluff, CA 96080 (530) 528-3060
32
Corning Magalia Paradise
5 Chico
COMMUNITY VALLEY BANCORP
Redding 2951 Churn Creek Rd, Redding, CA 96002 (530) 722-0295
2006
Yuba City 1600 Butte House Rd, Yuba City, CA 95993 (530) 751-2700
annual report
Oroville 99
Gridley LPO
70
Colusa 20
Marysville
Yuba City
5
16
70
99
80
505
Citrus Heights LPO
SACRAMENTO
Aaron Rodgers Golf “Fore” Kids Tournament
Glenn County Fair Junior Livestock Auction
American Cancer Society Relay for Life
Gold Nugget Days
Arbuckle Train Depot BBQ and Car Show
Gridley Education Foundation
The ARC of Butte County
Innovative Preschool
Bidwell Generals 2006 Annual Show
Jeff Stover Classic
Big Brothers Big Sisters of Butte County
KALF St. Jude Children’s Hospital Radiothon
Boys & Girls Club of Chico
Kiwanis Club Lobster Dinner
Boys & Girls Club of the North Valley
Lighthouse Christian School
Butte College Golf Tournament
Magalia Car Show 2006
Butte County Library Literacy Programs
Magalia Community Thanksgiving Dinner
Butte College Women’s Basketball
Marysville Community Auditorium
California Department of Forestry and Fire Protection
Nelson Avenue Middle School
California State University, Chico
Northen California Ballet
California Waterfowl Association
North State CEO, Entrepreneur and Innovation Forum
Canyon Oaks Women’s Golf Tournament
North State Venture Forum
Chico AquaJets Swim Team
North Valley Community Foundation
Chico Challenger Division Baseball
Oroville Chamber of Commerce
Chico Concours d’Elegance
Oroville Golf Foundation
Chico FFA Booster Club
Oroville Soccer League
Chico High School Grad Night
Oroville SPCA
Chico Jesus Center
Pink Ribbon Open
Chico Merchants Senior Softball
Ponderosa Elementary School
Chico Rooks Pro Soccer Foundation
Quota Club of Gridley
Children’s Hope Foster Agency
Red Bluff Round Up
Colusa County Fair
Redding Air Show 2006
Colusa Parks and Community Services
Redding Blackbird Spy Pilots
Corning Car Show
Redding Chamber of Commerce Industrial BBQ
Corning Hometown Christmas
Redding Haven Humane Society
Corning Olive Festival
Richfield Volunteer Fire Department
Corning Youth Soccer League
Shasta County Women’s Refuge
CP Auto Racing Team
Skyway House
Cruisin’ Classics of Paradise Car Show
Snow Goose Festival
Dog Days of Fall Poker Walk
Sunshine Kids “Non-Golf” Tournament
Enloe Foundation
Valley Contractors Exchange Golf Tournament
Fairview High School
Youth for Change
Farm City Celebration
Yuba-Sutter Chamber of Commerce
Fremont-Rideout Hospice Program
community support
Community Valley Bancorp is committed to the Northern California cities that it serves. Following are just some of the fine organizations that we helped in 2006.
COMMUNITY VALLEY BANCORP
2006 annual report
17
our people COMMUNITY VALLEY BANCORP
2006 annual report
18
Abdulmasih, Rita
Coffelt, Josh
Harnish, Julie
Akers, Leslie
Coger, John
Hart, Roger
Aldama, Megan
Coger, Megan
Haver, Natalie
Allison, Darren
Collins, Jeff
Hayes, Marilyn
Allison, Doreen
Conard, Margo
Heindell, Catherine
Almeida, Cheryl
Conner, Jill
Helberg, Dixie
Altamirano, Cindy
Cornell, Shannon
Henker, Kerry
Andrade, Janet
Corona, Margaret
Henshaw, Renee
Aragon, Estee
Cromwell, Sam
Hernandez, Abel
Arechar, Lesley Ann
Crook, Angela
Hernandez-Reeson, Patti
Arnold, Joel
Crouse, Barbara
Herndon, Jeannette
Aspromonte, Shellie
Cupido, Katherine
Hetherwick, Bob
Azevedo, Vicki
Dahl, Tina
Hetherwick, Melissa
Baker, Tyler
Daoust, Rosemary
Hiell, Donna
Bales, Teresa
Davis, Linda
Hill, Judy
Barbo, Terry
Dillard, Cindy
Hill, Windy
Barnes, Diane
Dipasqua, Debbie
Hoffie, Audrey
Barnett, Bruce
Dodge, Kelley
Hoffmann, Heather
Bass, Tanika
Dolan, Jenny
Holland, Kathy
Beams, Stacy
Ellis, Ashley
Hollingsworth, Kelly
Becraft, Molly
Ernenwein, Justin
Hollstrom, Krista
Becraft, Tara
Esparza-Smith, Kristina
Holt, Brian
Beebe, Cathy
Evans, Joi
Hoofard, Francine
Beibers, Laurie
Fawns, Denise
Hopper, Christina
Beich, Michelle
Feazel, Betsi
Howarth, Aubrey
Bender, Erika
Fellner, Andreas
Howder, Lilia
Berge, Chris
Fisher, Cindy
Humlick, Cindy
Berry, Peggy
Flores, Debbie
Hunt, Ellen
Bondza, Suzana
Flynn, Carly
Hunter, Andrea
Bowman, Brea
Foreman, Jaclyn
Hutcheson, Shiloh
Bravo, Humberto
Forlini, J. Todd
Isham, Shirley
Bravo, Jose
Franco, Eva
Jackson, Helen
Brinker, Beverly
Franco, Gina
James, Tim
Brown, Cindy
Gard, Becky
Janis, Roger
Brown, Lee
Garza, Amanda
Jarboe, Curt
Brunelli, Rita
Gates, Linda
Jernigan, Crystal
Brunello, Tammera
Geyer, Carla
Johnson, Steve
Buccola, Joe
Gildea, Ruth
Jones, Jessica
Burns, Megan
Gill, Harveen
Jones, Lynsie
Byrne, Jacqueline
Gill, Kashmir
Juanarena, Andrea
Camolinga, Sylvia
Gonzalez, Mark
Juanarena, Susan
Campbell, Beau
Graham, Rusty
Kaiser, Kevin
Campos, Jose
Green, Cynthia
Kearbey, Ashley
Carter, Jadee
Grider, Eileen
Keller, Jane
Cartoscelli, Angela
Grimmett, Lisa
Kemp, Ashley
Cast, Suzanne
Guttierrez, Amanda
Kemp, Stacy
Cerrato, Jeri
Haldorson, Sherri
Kimbler, Jennifer
Chiotti, Danielle
Hall, Brenna
Kirk, Jerry
Clark, Roger
Hamblin, Deboragh
Klemens III, Anton
Clausen, Kristina
Hard, Becky
Klemens, Jill
Coffelt, Jake
Hardesty, Brenda
Koehn, Patricia
Paieri, Twyla
Stanton, Gary
Kremer, Emmalee
Paniagua, Letty
Steele, Daniel
Laizure, Tammy
Papeman, Philip
Stephens, Diane
Landis, Larry
Patterson, Amanda
Sutcliffe, Marcy
Larson, Craig
Peterson, Mike
Sweeney, Britney
Larson, Heidi
Phagura, Manny
Taylor, Bruce
Lee, Gayle
Pineda, Anthony
Taylor, Yolinda
Lee, Lizette
Polk, David
Thoma, Katy
Lee, Natalie
Preecs, Carole
Thompson, Beverly
Leen, Donald
Presley, Liz
Thornton, Beverly
Lehman, Darcie
Price, Ben
Timm, Patti
Lehman, Richard
Pritchett, William
Traynor, Rhonda
Lobban, Natalie
Pruitt, Nicole
Turner, Beth
Lobo, Wes
Pusch, Michelle
Valdez, Mary
MacNeill, Christina
Ramirez, Jeannette
Vanderlinde, Carole
Mandigo, Lindsey
Reeson, Kelly
Vaughn, Mary
Manion, Myles
Reinbold, David
Vaught, Rebecca
Mansfield, Dawn
Renlund, Kate
Vega, Mona
Martinez, Tammi
Reyes, Christy
Versola, Marquesa
Matulich, Vicky
Reynolds, Scott
Wabs, Jim
McCain, Sandy
Ridley, Betty
Wagner, Pam
McCarthy, Rhonda
Rilinger, Carley
Walker, Tawny
McClure, Melanie
Rilinger, Glenn
Webb, Shirley
McDonald, Jennifer
Rilinger, Mandy
Webster, Kelly
McFall, Patricia
Robbins, Keith
Weigand, Adam
McGrath, Penny
Robertson, Calum
Weigand, Doug
McKillop, Deanna
Robison, Keaton
Welch, Brenda
Medina, Gabriel
Rohleder, Ashley
Wharff, Lisa
Medina, Kari
Roldan, Ana
White, Andrea
Medrano, Melissa
Romanshek, Kevin
White, Brandy
Mercer, Annette
Rudkin, Brad
Whittaker, Abigail
Mescher, Jill
Ryan, Alaina
Wilkerson, Teresa
Michael, Ellen
Salcido, Katie
Williams, Jeremy
Milco, Kathy
Sandow, Rachel
Williams, Therese
Miles, Dee
Schneider, Trine
Willis, Amanda
Miley, Debbie
Schreckengost, Kim
Wilson, Becky
Miley, Jeff
Sellers, Barbara
Wilson, Joanne
Miley, Justin
Shannon, Kate
Wilson, Julia
Modes, Diane
Shields, Robin
Wilson, Lauren
Monson, Amy
Shores, Linda
Wilson, Linda
Montandon, Stephen
Silver, Cori
Wilson, Logan
Moody, Steve
Simon, Julieanna
Wittmeier, Russ
Moreland, Sierra
Skelly, Heather
Wolter, Heather
Morris, Kristy
Slocum, Patty
Wolter, Niki
Mussmann, Michelle
Smith, Brian
Woolsey, Ashley
Nichols, Dana
Smith, Diana
Wright, Lori
Norris, Dixie
Smith, Suzy
Xiong, Pang
Novo, Cari
Soto, Adriana
O’Brien, Amy
Sousa, Dee
Olsen, Janet
Spencer, Jim
O’Neill, Lanaee
Spencer, Lorinda 302 employees as of March 1, 2007.
our people
Konuwa, Anani
COMMUNITY VALLEY BANCORP
2006 annual report
19
corporate Information
Shareholder Relations
Market Makers
Gayle Lee Senior Vice President/Controller Community Valley Bancorp 6653 Clark Rd Paradise, CA 95969 (530) 877-2506 x3161 glee@communityvalleybancorp.com
John Cavender Howe Barnes Hoefer & Arnett, Inc. 555 Market St, 18th Floor San Francisco, CA 94105 (415) 538-5725 www.howebarnes.com
Stock Listing Symbol: CVLL Market: NASDAQ-CM
Transfer Agent U.S. Stock Transfer Corporation 1745 Gardena Ave, Suite 200 Glendale, CA 91204-2991 (818) 502-1404 www.usstock.com
Independent Accountants
annual report
20
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, Suite 100 Lake Oswego, OR 97035 1-800-357-3680
Headquarters
Internet
Butte Community Bank Stanton Center 1360 East Lassen Ave Chico, CA 95973 (530) 566-1059
2006
Chris Munch Sandler O’Neill & Partners, LP 919 Third Ave, 6th Floor New York, NY 10022 (212) 466-8027 www.sandleroneill.com
Perry-Smith LLP 400 Capitol Mall, Suite 1200 Sacramento, CA 95814 (916) 441-1000 www.perry-smith.com
Community Valley Bancorp Stanton Center 1360 East Lassen Ave Chico, CA 95973 (530) 566-1059
COMMUNITY VALLEY BANCORP
Dave Bonaccorso Keefe, Bruyette & Woods, Inc. 101 California St, Suite 3700 San Francisco, CA 94111 (415) 591-5060 www.kbw.com
Butte Community Financial Services 936 Mangrove Ave Chico, CA 95926 (530) 892-4968 Butte Community Insurance Agency 936 Mangrove Ave Chico, CA 95926 (530) 893-1466 Butte Community Payroll Systems 2041 Forest Ave Chico, CA 95928 (530) 899-1636
Community Valley Bancorp www.communityvalleybancorp.com Butte Community Bank www.buttecommunity.com Butte Community Insurance Agency www.buttecommunityinsurance.com Butte Community Financial Services www.buttecommunityfinancial.com Butte Community Payroll Systems www.buttecommunitypayroll.com
Community Valley Bancorp 1360 EAst Lassen AVe. Chico Ca 95973 www.communityvalleybancorp.com www.buttecommunity.com