CMUV CMUV Bancorp (QB)

Community Valley Bank is pleased to report core earnings for the first quarter of 2014 were $290,000. This results in CVB’s 14th consecutive quarter of profitability including a $100,000 valuation allowance credit to taxes. Net profit reported at quarter end was $390,000.

For the quarter ending March 31, 2014 total assets were $107.6 million. Loans grew by $1.2 million over the same period last year ending the quarter at $77.3 million. Deposits remain unchanged from last year at $87.9 million. Total Equity Capital was $12.7 million and CVB’s Tier 1 capital ratio was 11.38%. This is well above the regulatory ratio required to be considered a well-capitalized bank.

As an SBA Preferred Lender, CVB with its array of business banking services, will continue to provide products designed to meet the banking needs of the communities, CVB serves. The Allowance for Loan and Lease Losses (ALLL) ended the quarter at $1.21 million or 1.54% of loans. Board and Management believe the ALLL is fully funded based on the quarterly analysis. The bank’s ratio is similar to CVB’s peer bank average providing a strong reserve against potential future losses.

CVB is in its seventh year of serving the financial needs of the Imperial and Coachella Valleys. The Bank’s management team is pleased with the progress made during that time and are excited about the bank’s future potential.

Management believes the recent improvement in the economy will continue to enhance CVB’s ability to grow and maintain profitability. Recent conflicting news that interest rates may remain flat, or rise, in the next year to 18 months will require CVB to continue closely monitoring the local economies and examining alternative strategies moving forward.

The Annual Shareholder Meeting will be held on May 15th at 10:00am at CVB’s Brawley branch when 2013 results and the bank’s exciting future will be discussed. CVB’s stock (CMUV) recently traded at $5.52 per share, up over 22% from the $4.51 per share price as of June 30, 2013. CVB continues to focus on serving the local business communities for both existing and new customers.

  March 31, 2013   December 31, 2013   March 31, 2014 Consolidated Financial Condition Data Assets Loans receivable - net $ 72,033,000 $ 73,703,000 $ 76,146,000 Cash and cash equivalents 28,582,000 35,037,000 22,352,000 Investment Securities 891,000 1,466,000 1,478,000 Federal Home Loan Bank Stock 283,000 447,000 447,000 Other Assets 5,526,000 6,950,000 7,173,000 Total Assets $ 107,315,000 $ 117,603,000 $ 107,596,000 Liabilities Deposits 88,938,000 98,164,000 87,890,000 Borrowings (FHLB) 6,000,000 6,000,000 6,000,000 Mortgage Indebtedness 729,000 684,000 669,000 Other Liabilities 292,000 464,000 285,000 Total Liabilities 95,959,000 105,312,000 94,844,000 Preferred Stock 2,400,000 2,400,000 2,400,000 Common Stock 14,287,000 14,298,000 14,310,000 Costs/Dividends (51,000) (100,000) (75,000) Surplus 499,000 537,000 540,000 Total Undivided Profits (6,048,000) (4,727,000) (4,367,000) Unrealized Gain/Loss 14,000 (117,000) (56,000) Stockholder's Equity - net 11,356,000 12,291,000 12,752,000 Total Liabilities and Shareholder Equity $ 107,315,000 $ 117,603,000 $ 107,596,000   March 31, 2013 December 31, 2013 March 31, 2014 Selected Consolidated Earnings Data Total Interest Income/Fees $ 1,341,000 $ 5,420,000 $ 1,308,000 Total Interest Expense (171,000) (712,000) (156,000) Net Interest Income 1,170,000 4,708,000 1,152,000 Provision For Losses on Loans (200,000) (615,000) 0 Net Interest Income After Provision For Losses on Loans 970,000 4,093,000 1,152,000 Total Other Income (Noninterest Income) 340,000 910,000 194,000 General Administrative and Other Expenses (1,106,000) (4,163,000) (1,056,000) Income Tax (Expense) Benefit 0 400,000 100,000 Net Profit/Loss Year To Date $ 204,000 $ 1,240,000 $ 390,000

Community Valley BankWayne D. Gale, President and CEO(760) 352-1889mediarelations@yourcvb.com