Community Valley Bancorp 2007 Annual Report
Table of Contents 2
Shareholder Letter
3
Profiles
4
Financial Charts
5
2007 News
6
Discussion & Analysis
10
Condensed Statements
12
Board of Directors
13
Management
14
Locations
15
Our People
16
Corporate Information
Community Valley Bancorp
2007 Annual Report
To Our Shareholders Dear Shareholder: It goes without saying that the economic events of 2007 exposed a tremendous upheaval in the financial industry, especially in the areas of real estate financing, bond markets and the other monetary instruments that support it. One of our primary sources of revenue, the financing of homes, has all but dried up from the unwise, and perhaps foolhardy, creative financing that was aggressively sold by some in the industry. This resulted in a negative impact on home loan origination nationwide and put many people in the unenviable position of having mortgage commitments that they could not afford. As we hope you are aware, Butte Community Bank chose not to engage or invest in any of these high-risk programs. Nevertheless, as a member of the broad financial community, we too were affected by the consequences. The national credit turmoil will continue to affect our profitability for the near future. We can be proud that our Bank has a strong asset portfolio and is developing new markets and technologies to add even more opportunities for growth. 2008 will be a year of transition in the financial industry. Rest assured that Butte Community Bank, with support from our insurance, investment and payroll divisions, is well positioned for this challenge and the winding road ahead.
Keith Robbins President Chief Executive Officer
Don Leforce Chairman of the Board
Community Valley Bancorp
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2007 Annual Report
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 1990, Butte Community Bank is California state-chartered with 15 branches in 11 cities including Anderson, Chico, Colusa, Corning, Magalia, Marysville, Oroville, Paradise, Red Bluff, Redding and Yuba City. It also operates loan production offices in Citrus Heights and Gridley.
Butte Community Insurance Agency, LLC, a subsidiary of Community Valley Bancorp, is a full-service insurance agency offering all lines of coverage from auto and health to commercial and farm packages. We offer a wide variety of insurance products from the industry leaders.
Butte Community Financial Services, a division of Butte Community Bank, offers the following investment options through LPL Financial Services: 401k Rollovers Education & College Planning Roth IRAs 403b Plans Estate Planning Stocks Annuities Municipal Bonds Tax Deferred Investments Bonds Mutual Funds Tax Exempt Investments Capital Gains Tax Strategies Portfolio Management Tax Strategies Direct Investments Retirement Planning Traditional IRAs
Butte Community Payroll Systems provides Northern California businesses with all essential payroll and tax services. We offer tax processing for all 50 states, custom reports, fax and online data input, job costing, general ledger service and complete training and support. We stay current on hundreds of regulation changes each year to keep our customers compliant with the ever changing federal, state and local tax laws.
Butte Community 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.
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. Securities and insurance products are offered through LPL Financial and its affiliates, Member FINRA/SIPC, and 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.
Community Valley Bancorp
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2007 Annual Report
Financial Charts Assets
600
500
(In Millions)
Loans (In Millions)
450 500
400 350
400
300 250
300
200 200
150 100
100
50 0
0 2002 2003 2004 2005 2006 2007
2002 2003 2004 2005 2006 2007
Deposits
600
8,000,000
Income
(In Millions)
7,000,000 500 6,000,000 400
5,000,000 4,000,000
300
3,000,000 200 2,000,000 100
1,000,000 0
0 2002 2003 2004 2005 2006 2007
Community Valley Bancorp
2002 2003 2004 2005 2006 2007
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2007 Annual Report
2007 News Quarter 1 January 26
Community Valley Bancorp Reports Earnings for 2006
March 16
Community Valley Bancorp Announces Quarterly Cash Dividend
Quarter 2 April 05 April 18 April 27
Community Valley Bancorp Announces Stock Repurchase Plan Community Valley Bancorp Reports Earnings for First Quarter 2007 Butte Community Bank Receives Super Premier Performing Designation
May 15
Community Valley Bancorp Launches New Website
June 14 June 15 June 22
Community Valley Bancorp Set to Join Russell Microcap Index Butte Community Bank Completes Remodel of South Paradise Branch Community Valley Bancorp Announces Quarterly Cash Dividend
Quarter 3 July 23
Community Valley Bancorp Reports Earnings for Second Quarter 2007
August 01 August 15 August 23
Community Valley Bancorp Ranked Among Top 200 Community Banks Butte Community Bank Opens Second Redding Branch Butte Community Bank Opens First Anderson Branch
September 19 September 21
Butte Community Bank Launches Online Home Loan Center Community Valley Bancorp Announces Quarterly Cash Dividend
Quarter 4 October 19 October 26
Community Valley Bancorp Reports Earnings for Third Quarter 2007 Butte Community Bank Offers Remote Deposit Solution
December 21
Community Valley Bancorp Announces Quarterly Cash Dividend
2008 News April 25
Butte Community Bank Receives Super Premier Performing Designation 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 2007. This is the highest designation available and the Bank has received this award for 16 years in a row. Butte Community Bank opened for business on December 14, 1990 and starting in 1992 has been a Super Premier Performer every year. For a bank to receive this honor every year since its inception is a rare achievement in the 40-year history of The Findley Reports.
Community Valley Bancorp
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2007 Annual Report
Management’s Discussion & Analysis Management’s Discussion and Analysis of Financial Condition and Results of Operations for the years ended December 31, 2007 and 2006. 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, 2007.
Overview Net income was $6,459,000 ($0.87 basic and $0.85 diluted earnings per share) for 2007 compared to 2006 earnings of $7,151,000 ($0.98 basic and $0.93 diluted earnings per share). Return on average shareholders’ equity was 13.22% in 2007 and 15.99% in 2006. Return on average assets in 2007 and 2006 was 1.13% and 1.38%, respectively. As of December 31, 2007, total assets were $581 million, or a 5.6% increase over the $550 million at year end 2006. The Company had net portfolio loans totaling $441 million at December 31, 2007, for a slight decrease of $1 million, or .23% from the $442 million at December 31, 2006. Deposits increased 3.3% to $501 million from the previous year end total of $485 million. The Company continued its branch expansion in 2007 by opening new offices in Anderson and Redding and new products such as the liquid certificate of deposit and remote deposit capture were introduced.
Net Interest Income 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 primarily loans and investments, and the average rate of interest that is paid on deposits and other liabilities used to fund those assets. The Company’s net interest margin for 2007 was 5.68%, down from 6.62% in the year 2006. During 2007, the Company’s net interest margin declined primarily as a result of higher deposit rates and a change in the mix of the deposits to benefit from those higher rates. On an average basis, the rates on loans decreased by 7 basis points resulting in a decrease in interest income of $331,000. This decrease in rates was offset by the increase in the average volume of loans of $12 million that generated an additional $1.1 million in loan related interest income. During 2007 overall interest income on earning assets increased by $2.4 million primarily related to increased levels of earning assets. The Company’s mix of deposits changed in 2007 as the average balances of lower cost interest bearing demand deposits declined by $28 million and higher cost savings and certificates of deposit balances increased by $77 million. The average rates paid on interest bearing deposits for 2007 was 3.03% compared to 2.33% in 2006.
Non-Interest Income Non-interest income of $8.5 million was $1.8 million higher than the 2006 total. The traditional sources of noninterest 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. A significant portion of the increase in the non-interest income came from the sale of the mortgage servicing rights in the third quarter of 2007 resulting in a one time pre-tax gain of $730,000.
Community Valley Bancorp
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2007 Annual Report
Management’s Discussion & Analysis Non-Interest Expense The Company’s total non-interest expense increased to $26.7 million in 2007, as compared to $25.2 million in 2006. 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 2007 by $205,000 or 1.3% from 2006. These increases were primarily due to normal salary and benefit cost increases. Full time equivalent employees decreased slightly to 260 at December 31, 2007 from 263 at December 31, 2006.
Other Expenses Occupancy and equipment expenses were $4,221,000, an increase of $741,000 or 21% when compared to the 2006 total of $3,480,000. Much of the increase in occupancy expense was related to the additional depreciation of $446,000 primarily related to the new headquarters building as well as furniture, fixtures and equipment for the new Anderson and Redding branches which opened in the third quarter of 2007. Expenses representing telephone and data communications, postage and mail, stationery and supplies, director fees and retirement accruals, advertising and promotion, and other expenses totaled $5,319,000 for 2007 compared to $4,931,000 in 2006. Management considers this increase in expenses commensurate with the growth of the Company.
Provision for Taxes The effective tax rate for 2007 was 40.7% compared to 41.6% for 2006. The provision for income taxes includes the provision for both current and deferred taxes based on applying the current tax rate to taxable income. Certain 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, leading to differences between the Company’s actual tax liability and the amount accrued for this liability based on book income.
Loans Loan balances net of the allowance for loan losses at December 31, 2007 were $441.4 million, a slight decrease of 0.18% from the $442.3 million at year-end 2006. On an average basis, loans were $457.0 million during 2007 compared to $445.1 million in 2006.
Community Valley Bancorp
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2007 Annual Report
Management’s Discussion & Analysis 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 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 foreclosed and transferred to other real estate. The Company’s nonperforming assets as a percent of net loans totaled 0.06% at December 31, 2007 and 0.51% at December 31, 2006.
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 $225,000 in 2007 and $775,000 in 2006. This change in the provision is a reflection of the slower growth in total loans during 2007 and management’s evaluation and assessment of the probable losses inherent in 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, 2007 the allowance for loan losses was $5.2 million or 1.17% of total loans, compared to $5.3 million or 1.18% in 2006. The Company recorded net charge-offs of $26,000 in 2007 compared to net charge-offs of $80,000 in 2006. The continued low level of charge-offs compared to industry standards reflects the Company’s sound underwriting policies and collection procedures. 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 $860,000 and $619,000 at December 31, 2007 and 2006, respectively, and is included in accrued interest payable and other liabilities on the balance sheet.
Community Valley Bancorp
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2007 Annual Report
Management’s Discussion & Analysis 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, 2007, the Company’s total risk-based capital ratio was 14.1%, the Tier 1 risk-based capital was 13.1% and the leverage capital ratio was 11.6%. All ratios exceed the minimum guidelines of 8%, 4% and 4% respectively and the Bank was considered well capitalized under the regulatory framework for prompt corrective action. The Company’s ratios at December 31, 2006 were 11.9%, 10.9% and 10.1%, 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, 2007, the Company’s liquidity ratio (cash, fed funds, and securities) as a percentage of total liabilities was 16% as compared to 13% at December 31, 2006.
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
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2007 Annual Report
Condensed Statements Condensed Consolidated Balance Sheets (in thousands)
Year Ended December 31, 2007 2006 Assets: Cash and cash equivalents Securities Net loans, including loans held for sale Other assets Total assets
$86,004 6,264 441,350 47,002 $580,620
$62,628 5,127 443,041 39,241 $550,037
Liabilities and shareholders' equity: Deposits Borrowings Other liabilities Total liabilities Shareholders' equity Total liabilities and shareholders' equity
$500,991 1,093 27,562 529,646 50,974 $580,620
$484,856 1,217 18,237 504,310 45,727 $550,037
Condensed Consolidated Statements of Income (in thousands, except per share data)
Year Ended December 31, 2007 2006
2005
Interest income Interest expense Net interest income
$43,223 13,889 29,334
$40,814 9,532 31,282
$32,438 5,331 27,107
Provision for loan losses Noninterest income Operating expense
(16) 8,475 26,927
775 6,769 25,023
724 6,711 20,925
Income before provision for income taxes Provision for income taxes
10,898 4,439
12,253 5,102
12,169 4,971
Net income
$6,459
$7,151
$7,198
$0.87 $0.85 7,417 7,612 $0.32
$0.98 $0.93 7,280 7,680 $0.22
$1.00 $0.95 7,166 7,612 $0.16
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
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
Community Valley Bancorp
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2007 Annual Report
Condensed Statements Condensed Consolidated Statements of Changes in Shareholders' Equity (in thousands)
Year Ended December 31, 2007 2006
2005
Beginning balance
$45,727
$41,555
$34,531
Exercise of stock options Cash dividends Earned ESOP shares Shares acquired by ESOP Changes in unrealized gain (loss) on securities available for sale Stock Option Expense Repurchase and retirement of common stock Net income
1,104 (2,425) 172 -
1,000 (1,933) 609 (354)
1,039 (1,092) 251 (348)
8 139 (210) 6,459
22 175 (2,498) 7,151
(24) 7,198
Ending balance
$50,974
$45,727
$41,555
Year Ended December 31, 2007 2006
2005
Condensed Consolidated Statements of Cash Flows (in thousands)
Cash flows from operating activities: Net income Adjustments to reconcile net income to net cash provided by operations Net cash provided by operating activities
$6,459
$7,151
$7,198
912 7,371
2,936 10,087
2,892 10,090
Cash flows from investing activities: (Purchases) and sales or maturities of securities, net Net increase in loans made to customers Other, net Net cash used in investing activities
(3,101) 1,030 (4,669) (6,740)
5,935 (41,361) (6,820) (42,246)
2,341 (62,477) (5,187) (65,323)
Cash flows from financing activities: Net increase in deposits ESOP note, net Dividends paid Proceeds from exercise of stock options Repurchase of common stock Proceeds from note payable Proceeds from issuance of junior subordinated debentures
16,135 (124) (2,408) 1,104 (210) 8,248
50,838 (119) (1,637) 1,000 (2,498) (800) -
34,959 (199) (1,069) 527 800 -
Net cash provided by financing activities
22,745
46,784
35,018
Decrease in cash and cash equivalents Cash and cash equivalents at beginning of year
23,376 62,628
14,625 48,003
(20,215) 68,218
$86,004
$62,628
$48,003
Cash and cash equivalents at end of year
Community Valley Bancorp
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2007 Annual Report
Board of Directors M. Robert Ching, MD Orthopedic Surgeon
Luther W. McLaughlin, CPA Retired Certified Public Accountant. Former owner and past President of Matson & Isom, a public accountancy corporation.
John Coger Executive Vice President/CFO/COO of Community Valley Bancorp President/Chief Operating Officer of Butte Community Bank
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/Chief Executive Officer of Community Valley Bancorp Chief Executive Officer of Butte Community Bank
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
Community Valley Bancorp
Hubert Townshend Retired. Formerly involved in general engineering, contracting and equipment rental.
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2007 Annual Report
Management Executive Group Keith Robbins President/Chief Executive Officer of Community Valley Bancorp Chief Executive Officer of Butte Community Bank John Coger Executive Vice President/CFO/COO of Community Valley Bancorp President/Chief Operating Officer of Butte Community Bank Craig Larson Executive Vice President/Chief Lending Officer Bruce Barnett Senior Vice President/Chief Information Officer Kash Gill Senior Vice President/Regional Branch Administrator Roger Janis Senior Vice President/Regional Branch Administrator Steve Johnson Senior Vice President/Risk Management/Credit Administration Gayle Lee Senior Vice President/Controller Debbie Miley Senior Vice President/Operations and Regional Branch Administrator
Administrative Management
Lending Glenn Rilinger Administrative Vice President/SBA and Commercial Lender Doug Weigand Administrative Vice President/Senior Commercial Lender Kevin Kaiser Corporate Vice President/Senior Commercial Lender Marcy Sutcliffe Corporate Vice President/Senior Commercial Lender Joel Arnold Vice President/Senior Commercial Lender Erika Bender Vice President/Senior Commercial Lender Todd Forlini Vice President/Business Development Officer 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
Beverly Brinker Administrative Vice President/Audit Compliance 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 Jeannette Herndon Vice President/Audit Officer Phil Papeman Vice President/Marketing Director Jim Wabs Vice President/Senior Appraiser Julia Wilson Vice President/Electronic Banking Manager Carla Geyer Assistant Vice President/Executive Assistant Patti Hernandez-Reeson Assistant Vice President/Security Officer Deanna McKillop Assistant Vice President/Call Center Customer Service Manager Kim Schreckengost Assistant Vice President/Real Estate Department Manager Beth Turner Assistant Vice President/HR Manager
Butte Community Financial Services Jadee Carter Vice President/LPL Registered Representative Ellen Hunt Vice President/LPL Registered Principal
Butte Community Insurance Agency
Bank Branch Management
Dee Sousa Agency Manager/Commercial Agent
Cheryl Almeida Vice President/Regional Relationship Manager Laurie Kee Vice President/Relationship Manager Cindy Brown Vice President/Relationship Manager
Community Valley Bancorp
Rosemary Daoust Vice President/Relationship Manager Cindy Fisher Vice President/Relationship Manager E. Jeannie Littleton Vice President/Relationship Manager Diane Modes Vice President/Relationship Manager Janet Olsen Vice President/Relationship Manager Katy Thoma Vice President/Relationship Manager Andrea White Vice President/Relationship Manager Margaret Corona Assistant Vice President/Relationship Manager Lisa Grimmett Assistant Vice President/Relationship Manager Manny Phagura Assistant Vice President/Relationship Manager
Butte Community Payroll Systems Scott Reynolds Manager
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2007 Annual Report
Locations Red Bluff 10 Gilmore Rd., Suite C Red Bluff, CA 96080 (530) 528-3060
Full-Service Northern California Branches Anderson 5026 Rhonda Rd. Anderson, CA 96007 (530) 365-4062
Redding 2951 Churn Creek Rd. Redding, CA 96002 (530) 722-0295
Chico Central 900 Mangrove Ave. Chico, CA 95926 (530) 891-9000
Redding 1335 Hilltop Dr. Redding, CA 96003 (530) 222-2975
Chico North 237 West East Ave. Chico, CA 95926 (530) 899-2347
Yuba City 1600 Butte House Rd. Yuba City, CA 95993 (530) 751-2700
Chico South 2041 Forest Ave. Chico, CA 95928 (530) 891-3494
Loan Production Offices Citrus Heights 5959 Greenback Ln. #430 Citrus Heights, CA 95621 (916) 728-1600
Colusa 1017 Bridge St. (inside SAV-MOR Foods) Colusa, CA 95932 (530) 458-5430
Gridley 1010 Spruce St. Gridley, CA 95948 (530) 846-3472
Corning 950 Highway 99W Corning, CA 96021 (530) 824-3966 Magalia 14001 Lakeridge Cir. (inside Holiday Quality Foods) Magalia, CA 95954 (530) 873-6854
Departments Butte Community Insurance Agency 2041 Forest Ave. Chico, CA 95928 (530) 893-1466
Marysville 904 B St. Marysville, CA 95901 (530) 741-0210
Butte Community Financial Services 936 Mangrove Ave. Chico, CA 95926 (530) 892-4968
Oroville 2227 Myers St. Oroville, CA 95966 (530) 532-0800
Butte Community Payroll Systems 2041 Forest Ave. Chico, CA 95928 (530) 899-1636
Paradise North 6653 Clark Rd. Paradise, CA 95969 (530) 877-2506
Government Lending 936 Mangrove Ave. Chico, CA 95926 (530) 332-9120
Paradise South 672 Pearson Rd. Paradise, CA 95969 (530) 877-0857
Community Valley Bancorp
Community Valley Bancorp 1360 East Lassen Ave. Chico, CA 95973 (530) 899-2344
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2007 Annual Report
Our People Abdulmasih, Rita Akers, Leslie Aldama, Megan Almeida, Cheryl Altamirano, Cindy Andrade, Janet Arechar, Lesley Arnold, Joel Aspromonte, Shellie Azevedo, Veronica Baker, Tyler Bales, Teresa Barbo, Terry Barnes, Diane Barneson, Natalia Barnett, Bruce Bass, Tanika Beams, Stacy Becraft, Molly Becraft, Tara Beebe, Ann Beich, Michelle Bender, Erika Berge, Christine Berry, Peggy Blackwell, Ember Bondza, Suzana Bravo, Jose Brinker, Beverly Brown, Cindy Brown, Emily Brown, Lee Brunello, Tammy Busick, Jennifer Camolinga, Sylvia Campbell, Beau Campos, Jose Carter, Jerrilyn Cast, Suzanne Cerrato, Jeri Chavez, Priscilla Chiotti, Danielle Clark, Roger Clarkson, Yolinda Clausen, Kristina Coffelt, Jacob Coffelt, Joshua Coger, John Coger, Megan Collins, Jeff Conard, Margo Conner, Jill Corona, Maria Crone, Michelle Crook, Angela Crouse, Barbara Cupido, Katherine Dahl, Tina Daoust, Rosemary DaValle, Rachel Davis, Linda Dillard, Cynthia DiPasqua, Debbie Dodge, Kelley Dolan, Jenny Eggleston, Amanda Ellis, Ashley Ernenwein, Justin Esparza-Smith, Kristina Evans, Joi Feazel, Betsi Fellner, Andreas Fiedler, Jeffrey Fisher, Cindy Flores, Debbie Flynn, Carly
Community Valley Bancorp
Forlini, Todd J. Franco, Regina Freemyers, Jenae Garza, Amanda Gates, Linda Geyer, Carla Gildea, Ruth Gill, Kashmir Gonzalez, Mark Graham, Russell Green, Cynthia Grider, Eileen Griggs, Chadford Grimmett, Lisa Haldorson, Sherri Hall, Brenna Hamblin, Deboragh Hansen, Kevin Hardesty, Brenda Harnish, Julie Hart, Roger Hayes, Marilyn Heindell, Catherine Helberg, Dixie Henker, Kerry Henshaw, Renee Hernandez, Abel Hernandez-Reeson, Patricia Herndon, Jeannette Hetherwick, Robert Hiell, Donna Hill, Windy Hislop, Victoria Hoffie, Audrey Holland, Kathleen Hollstrom, Krista Holt, Brian Hoofard, Francine Hopper, Anna Howder, Lilia Humlick, Cynthia Hunt, Ellen Hunter, Andrea Hurt, Carl Hutcheson, Shiloh Isham, Shirley Jackson, Helen James, Machael James, Tim Janis, Roger Jarboe, Curt Jernigan, Crystal Johal, Kalwinder Johnson, Stephen Jones, Jessica Jones, Lynsie Juanarena, Andrea Juanarena, Susan Kaiser, Kevin Kee, Laurie Keller, Jane Kemp, Ashley Kimbler, Jennifer Kirk, Jerry Klemens III, Anton Klemens, Jill Koehn, Patricia Kremer, Emmalee Labree, Brandy Laizure, Tammy Landis, Larry Larson, Craig Larson, Heidi Lee, Gayle Leen, Donald Lehman, Darcie
Lehman, Richard Lewis, Kelly Littleton, Elizabeth Jean Lobban, Natalie MacNeill, Cristina Madrid, Kara Mansfield, Dawn Marsh, Emily Martin, Emily Martinez, Tamara Matulich, Vicky Mazzanti, Brian McCain, Sandy McCarthy, Kelsey McCarthy, Rhonda McClure, Melanie McDonald, Jennifer McFall, Patricia McGrath, Penny McKillop, Deanna Medina, Gabriel Medina, Kari Medrano, Melissa Mercer, Annette Michael, Ellen Milco, Kathleen Miles, Diane Miley, Debra Miley, Donald Miley, Jeffrey Miley, Justin Miller, Barbara Modes, Diane Monson, Amanda Montandon, Stephen Moore, Deidre Moore, Tisha Moreland, Sierra Morris, Kelly Mussmann, Michelle Nails, Kristy Novo, Cari O'Brien, Amy Oliver, Katherine Olsen, Janet O'Neill, Lanaee Paniagua, Maria Papeman, Philip Patterson, Amanda Peterson, Michael Phagura, Manjinder Pickens, Bonnie Polk, James Presley, Elizabeth Price, Benjamin Pritchett, William Pusch, Michelle Quezada, Ana Ramirez, Jeannette Reeson, Kelly Renlund, Kate Reynolds, Scott Rich, Jasmine Richey, Jill Ridley, Elizabeth Rilinger, Glenn Robbins, Keith Robbins, Kyle Robbins, Nick Rohleder, Ashley Romanshek, Kevin Roundtree, Brea Rymel, Tosha Salcido, Kathryn Sandow, Rachel Schneider, Trine
15
Schreckengost, Kimberly Sellers, Barbara Shandel, Vicki Shannon, Kate Shaughnessy, Elizabeth Shelton, Jessica Shields, Megan Shields, Robin Shores, Linda Silver, Corianna Simmons, Janis Simon, Julieanna Skelly, Heather Slocum, Patty Smith, Brian Smith, Diana Smith, Sue Solomon, Caitlyn Sousa, Deeanna Speicher, Douglas Spencer, James Spencer, Lorinda Stanton, Gary Stephens, Diane Stephens, Ryan Sutcliffe, Marcy Sweeney, Amber Taylor, Bruce Thoma, Catherine Thompson, Beverly Thompson, Mark Thompson, Samuel Thornton, Beverly Traynor, Rhonda Turner, Beth Valdez, Maria Van Der Linde, Carole Van Der Linde, Larissa Vaughn, Mary Vaught, Rebecca Vega, Ramona Versola, Marquesa Voorhees-Baker, Darla Wabs, James Wagner, Pamela Walker, Tawny Warrington, Jeannie Webb, Shirley Webster, Kelly Weigand, Douglas White, Andrea White, Brandy Wilkerson, Teresa Williams, Jeremy Williams, Nicole Williams, Therese Willis, Amanda Wilson, Joanne Wilson, Julia Wilson, Lauren Wilson, Linda Wilson, Logan Wilson, Rebecca Wingo, Deborah Winkler, Leslie Wolter, Heather Wolter, Niki Zarate, Jennifer Zarco, Roberto Zinn, Shaun
298 employees as of March 15, 2008
2007 Annual Report
Corporate Information Shareholder Relations
Market Makers and Brokers
Gayle Lee Senior Vice President/Controller Community Valley Bancorp 6653 Clark Rd. Paradise, CA 95969 (530) 877-2506 x3161
John Cavender Howe Barnes Hoefer & Arnett, Inc. 555 Market St., 18th Floor San Francisco, CA 94105 (415) 538-5725 www.howebarnes.com
Stock Listing
Dave Bonaccorso Keefe, Bruyette & Woods, Inc. 101 California St., Suite 3700 San Francisco, CA 94111 (415) 591-5060 www.kbw.com
Symbol: CVLL Market: NASDAQ-CM
Transfer Agent Computershare Trust Company, N.A. P.O. Box 43070 Providence, RI 02940-3070 (800) 962-4284 www.computershare.com
Chris Munch Sandler O'Neill & Partners, LP 919 Third Ave., 6th Floor New York, NY 10022 (212) 466-8027 www.sandleroneill.com
Independent Accountants Perry-Smith LLP 400 Capitol Mall, Suite 1200 Sacramento, CA 95814 (916) 441-1000 www.perry-smith.com
Troy Norlander and Michael Natzic The Seidler Companies, Inc PO Box 1688 Big Bear Lake, CA 92315 (800) 288-2811 www.seidlercos.com
Headquarters
Lisa Gallo Wedbush Morgan Securities 1000 Wilshire Blvd. Los Angeles, CA 90017 (866) 491-7828 www.wedbush.com
Community Valley Bancorp 1360 East Lassen Ave. Chico, CA 95973 (530) 899-2344 Butte Community Bank 1360 East Lassen Ave. Chico, CA 95973 (530) 566-1059
Internet Community Valley Bancorp www.communityvalleybancorp.com
Butte Community Financial Services 936 Mangrove Ave. Chico, CA 95926 (530) 892-4968
Butte Community Bank www.buttecommunity.com
Butte Community Insurance Agency 2041 Forest Ave. Chico, CA 95928 (530) 893-1466
Butte Community Insurance Agency www.buttecommunityinsurance.com Butte Community Financial Services www.buttecommunityfinancial.com
Butte Community Payroll Systems 2041 Forest Ave. Chico, CA 95928 (530) 899-1636
Community Valley Bancorp
Butte Community Payroll Systems www.buttecommunitypayroll.com
16
2007 Annual Report
Community Valley Bancorp 1360 East Lassen Avenue Chico, California 95973 www.communityvalleybancorp.com www.buttecommunity.com 16