10-Q 1 cvcy-20230331.htm 10-Q cvcy-20230331
0001127371false12-312023Q115,25710,84810,000,00010,000,000————80,000,00080,000,00011,754,93811,735,29111,754,93811,735,291——36.7512P1MP1Y00011273712023-01-012023-03-3100011273712023-04-30xbrli:shares00011273712023-03-31iso4217:USD00011273712022-12-31iso4217:USDxbrli:shares00011273712022-01-012022-03-310001127371us-gaap:CommonStockMember2021-12-310001127371us-gaap:RetainedEarningsMember2021-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-3100011273712021-12-310001127371us-gaap:RetainedEarningsMember2022-01-012022-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001127371us-gaap:CommonStockMember2022-01-012022-03-310001127371us-gaap:CommonStockMember2022-03-310001127371us-gaap:RetainedEarningsMember2022-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-3100011273712022-03-310001127371us-gaap:CommonStockMember2022-12-310001127371us-gaap:RetainedEarningsMember2022-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:CommonStockMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMemberus-gaap:RetainedEarningsMember2022-12-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMembersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-12-310001127371us-gaap:RetainedEarningsMember2023-01-012023-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-03-310001127371us-gaap:CommonStockMember2023-01-012023-03-310001127371us-gaap:CommonStockMember2023-03-310001127371us-gaap:RetainedEarningsMember2023-03-310001127371us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001127371us-gaap:AccountingStandardsUpdate201613Member2023-03-310001127371us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-03-310001127371us-gaap:FairValueInputsLevel1Member2023-03-310001127371us-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-12-310001127371us-gaap:FairValueInputsLevel1Member2022-12-310001127371us-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2023-03-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-03-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:USTreasurySecuritiesMember2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:USTreasurySecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Memberus-gaap:USTreasurySecuritiesMember2022-12-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMemberus-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Memberus-gaap:EquitySecuritiesMember2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EquitySecuritiesMemberus-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel1Member2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-12-310001127371us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2022-12-310001127371us-gaap:USTreasurySecuritiesMember2023-03-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMember2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-03-310001127371us-gaap:CorporateDebtSecuritiesMember2023-03-310001127371us-gaap:USTreasurySecuritiesMember2022-12-310001127371us-gaap:USGovernmentAgenciesDebtSecuritiesMember2022-12-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMember2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByUSGovernmentSponsoredEnterprisesMember2022-12-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2022-12-310001127371us-gaap:CorporateDebtSecuritiesMember2022-12-31cvcy:security0001127371us-gaap:CorporateDebtSecuritiesMember2023-01-010001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-01-010001127371cvcy:ExternalCreditRatingAAAAAARatingMemberus-gaap:USStatesAndPoliticalSubdivisionsMember2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMembercvcy:ExternalCreditRatingBBBBBBRatingMember2023-03-310001127371us-gaap:USStatesAndPoliticalSubdivisionsMembercvcy:ExternalCreditRatingNotRatedMember2023-03-310001127371cvcy:ExternalCreditRatingAAAAAARatingMemberus-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMember2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMembercvcy:ExternalCreditRatingBBBBBBRatingMember2023-03-310001127371us-gaap:MortgageBackedSecuritiesIssuedByPrivateEnterprisesMembercvcy:ExternalCreditRatingNotRatedMember2023-03-310001127371us-gaap:CorporateDebtSecuritiesMembercvcy:ExternalCreditRatingAAAAAARatingMember2023-03-310001127371us-gaap:CorporateDebtSecuritiesMembercvcy:ExternalCreditRatingBBBBBBRatingMember2023-03-310001127371us-gaap:CorporateDebtSecuritiesMembercvcy:ExternalCreditRatingNotRatedMember2023-03-310001127371cvcy:ExternalCreditRatingAAAAAARatingMember2023-03-310001127371cvcy:ExternalCreditRatingBBBBBBRatingMember2023-03-310001127371cvcy:ExternalCreditRatingNotRatedMember2023-03-310001127371us-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2022-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001127371us-gaap:CommercialPortfolioSegmentMember2023-03-310001127371us-gaap:CommercialPortfolioSegmentMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-12-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMembercvcy:EquityLoansAndLinesOfCreditMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMembercvcy:EquityLoansAndLinesOfCreditMember2022-12-310001127371cvcy:SmallBusinessAdministrationProgramsMember2023-03-310001127371cvcy:SmallBusinessAdministrationProgramsMember2022-12-31xbrli:pure0001127371cvcy:FamilyRealEstateMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMember2022-12-310001127371us-gaap:UnallocatedFinancingReceivablesMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustmentMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:FamilyRealEstateMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMembersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-12-310001127371srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:UnallocatedFinancingReceivablesMember2022-12-310001127371us-gaap:CommercialPortfolioSegmentMember2023-01-012023-03-310001127371cvcy:RealEstatePortfolioSegmentMember2023-01-012023-03-310001127371cvcy:FamilyRealEstateMember2023-01-012023-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2023-01-012023-03-310001127371us-gaap:UnallocatedFinancingReceivablesMember2023-01-012023-03-310001127371cvcy:FamilyRealEstateMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2023-03-310001127371us-gaap:UnallocatedFinancingReceivablesMember2023-03-310001127371us-gaap:CommercialPortfolioSegmentMember2021-12-310001127371cvcy:FamilyRealEstateMember2021-12-310001127371us-gaap:ConsumerPortfolioSegmentMember2021-12-310001127371us-gaap:UnallocatedFinancingReceivablesMember2021-12-310001127371us-gaap:CommercialPortfolioSegmentMember2022-01-012022-03-310001127371cvcy:FamilyRealEstateMember2022-01-012022-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2022-01-012022-03-310001127371us-gaap:UnallocatedFinancingReceivablesMember2022-01-012022-03-310001127371us-gaap:CommercialPortfolioSegmentMember2022-03-310001127371cvcy:FamilyRealEstateMember2022-03-310001127371us-gaap:ConsumerPortfolioSegmentMember2022-03-310001127371us-gaap:UnallocatedFinancingReceivablesMember2022-03-310001127371us-gaap:PassMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:SpecialMentionMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:SubstandardMembercvcy:CommercialAndIndustrialMember2023-03-310001127371cvcy:CommercialAndIndustrialMember2023-03-310001127371cvcy:CommercialAndIndustrialMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:AgriculturalProductionMember2023-03-310001127371cvcy:AgriculturalProductionMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembercvcy:AgriculturalProductionMember2023-03-310001127371cvcy:AgriculturalProductionMember2023-03-310001127371cvcy:AgriculturalProductionMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:RealEstateConstructionAndOtherLandLoansMember2023-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembercvcy:RealEstateConstructionAndOtherLandLoansMember2023-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMember2023-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:OwnerOccupiedRealEstateMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembercvcy:OwnerOccupiedRealEstateMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMember2023-01-012023-03-310001127371us-gaap:PassMemberus-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:SpecialMentionMemberus-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:SubstandardMemberus-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:CommercialRealEstateMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:AgriculturalRealEstateMember2023-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembercvcy:AgriculturalRealEstateMember2023-03-310001127371cvcy:AgriculturalRealEstateMember2023-03-310001127371cvcy:AgriculturalRealEstateMember2023-01-012023-03-310001127371us-gaap:PassMembersrt:MultifamilyMember2023-03-310001127371srt:MultifamilyMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembersrt:MultifamilyMember2023-03-310001127371srt:MultifamilyMember2023-03-310001127371srt:MultifamilyMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:A14FamilyCloseEndedMember2023-03-310001127371cvcy:A14FamilyCloseEndedMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembercvcy:A14FamilyCloseEndedMember2023-03-310001127371cvcy:A14FamilyCloseEndedMember2023-03-310001127371cvcy:A14FamilyCloseEndedMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:A14FamilyRevolvingMember2023-03-310001127371us-gaap:SpecialMentionMembercvcy:A14FamilyRevolvingMember2023-03-310001127371us-gaap:SubstandardMembercvcy:A14FamilyRevolvingMember2023-03-310001127371cvcy:A14FamilyRevolvingMember2023-03-310001127371cvcy:A14FamilyRevolvingMember2023-01-012023-03-310001127371us-gaap:PassMembercvcy:EquityLoansAndLinesOfCreditMember2023-03-310001127371cvcy:EquityLoansAndLinesOfCreditMemberus-gaap:SpecialMentionMember2023-03-310001127371us-gaap:SubstandardMembercvcy:EquityLoansAndLinesOfCreditMember2023-03-310001127371cvcy:EquityLoansAndLinesOfCreditMember2023-03-310001127371cvcy:EquityLoansAndLinesOfCreditMember2023-01-012023-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310001127371us-gaap:CommercialRealEstatePortfolioSegmentMembercvcy:RealEstateConstructionAndOtherLandLoansMember2022-12-310001127371us-gaap:CommercialRealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-12-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:CommercialRealEstatePortfolioSegmentMember2022-12-310001127371us-gaap:CommercialRealEstatePortfolioSegmentMembercvcy:OtherRealEstateMember2022-12-310001127371us-gaap:PassMembercvcy:CommercialAndIndustrialMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:SpecialMentionMember2022-12-310001127371us-gaap:SubstandardMembercvcy:EquityLoansAndLinesOfCreditMember2022-12-310001127371us-gaap:DoubtfulMembercvcy:EquityLoansAndLinesOfCreditMember2022-12-310001127371cvcy:EquityLoansAndLinesOfCreditMember2022-12-310001127371us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2023-03-310001127371us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMembercvcy:CommercialAndIndustrialMember2023-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-03-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialRealEstateMember2023-03-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371us-gaap:FinancialAssetPastDueMembercvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371srt:MultifamilyMemberus-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMember2023-03-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-03-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:A14FamilyRevolvingMember2023-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-03-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2023-03-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMembercvcy:A14FamilyRevolvingMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2023-03-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2023-03-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMember2023-03-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMember2023-03-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2023-03-310001127371us-gaap:FinancialAssetPastDueMember2023-03-310001127371us-gaap:FinancialAssetNotPastDueMember2023-03-310001127371us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:CommercialAndIndustrialMember2022-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2022-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2022-12-310001127371us-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMembercvcy:CommercialAndIndustrialMember2022-12-310001127371us-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMembercvcy:CommercialAndIndustrialMember2022-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:FinancingReceivables60To89DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:FinancialAssetPastDueMemberus-gaap:CommercialPortfolioSegmentMember2022-12-310001127371cvcy:AgriculturalLandandProductionMemberus-gaap:CommercialPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMemberus-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:OwnerOccupiedRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:RealEstateConstructionAndOtherLandLoansMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMemberus-gaap:CommercialRealEstateMember2022-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-12-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:CommercialRealEstateMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMemberus-gaap:CommercialRealEstateMember2022-12-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:AgriculturalRealEstateMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371us-gaap:FinancialAssetPastDueMembercvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371cvcy:AgriculturalRealEstateMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371srt:MultifamilyMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371srt:MultifamilyMemberus-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMember2022-12-310001127371srt:MultifamilyMembercvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2022-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2022-12-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyCloseEndedMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMembercvcy:A14FamilyRevolvingMember2022-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2022-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2022-12-310001127371us-gaap:FinancialAssetPastDueMembercvcy:RealEstatePortfolioSegmentMembercvcy:A14FamilyRevolvingMember2022-12-310001127371cvcy:RealEstatePortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMembercvcy:A14FamilyRevolvingMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetPastDueMember2022-12-310001127371us-gaap:ConsumerPortfolioSegmentMemberus-gaap:FinancialAssetNotPastDueMember2022-12-310001127371us-gaap:FinancingReceivables30To59DaysPastDueMember2022-12-310001127371us-gaap:FinancingReceivables60To89DaysPastDueMember2022-12-310001127371us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-12-310001127371us-gaap:FinancialAssetPastDueMember2022-12-310001127371us-gaap:FinancialAssetNotPastDueMember2022-12-310001127371srt:FederalHomeLoanBankOfSanFranciscoMember2023-03-310001127371srt:FederalHomeLoanBankOfSanFranciscoMember2022-12-310001127371us-gaap:AssetPledgedAsCollateralMemberus-gaap:FederalHomeLoanBankAdvancesMember2023-03-310001127371us-gaap:FederalHomeLoanBankAdvancesMember2023-03-310001127371us-gaap:SubordinatedDebtMembercvcy:SubordinatedDebtDue2031Member2023-03-310001127371us-gaap:SubordinatedDebtMembercvcy:SubordinatedDebtDue2031Member2022-12-310001127371us-gaap:SubordinatedDebtMember2023-03-310001127371us-gaap:SubordinatedDebtMember2022-12-310001127371us-gaap:SeniorNotesMember2023-03-310001127371us-gaap:SeniorNotesMember2022-12-310001127371cvcy:Service1StBankMember2023-03-31cvcy:quarteriso4217:USDcvcy:security0001127371us-gaap:SubordinatedDebtMember2021-11-120001127371us-gaap:SubordinatedDebtMember2021-11-122021-11-120001127371us-gaap:SeniorNotesMember2022-09-150001127371us-gaap:PrimeRateMember2022-09-152022-09-1500011273712022-09-1500011273712022-09-152022-09-150001127371us-gaap:CommitmentsToExtendCreditMember2023-03-310001127371us-gaap:CommitmentsToExtendCreditMember2022-12-310001127371us-gaap:UnusedLinesOfCreditMember2023-03-310001127371us-gaap:UnusedLinesOfCreditMember2022-12-310001127371srt:MinimumMemberus-gaap:UnusedLinesOfCreditMember2023-01-012023-03-310001127371us-gaap:UnusedLinesOfCreditMembersrt:MaximumMember2023-01-012023-03-310001127371cvcy:UnusedPortionOfConstructionLoansMember2023-03-310001127371cvcy:UnusedPortionOfConstructionLoansMember2022-12-310001127371us-gaap:StandbyLettersOfCreditMember2023-03-310001127371us-gaap:StandbyLettersOfCreditMember2022-12-310001127371us-gaap:StandbyLettersOfCreditMembersrt:MaximumMember2023-01-012023-03-310001127371cvcy:ProbableLoanLossExperienceOnUnfundedObligationsMember2023-03-310001127371cvcy:ProbableLoanLossExperienceOnUnfundedObligationsMember2022-12-31cvcy:plan0001127371us-gaap:EmployeeStockOptionMember2023-01-012023-03-310001127371us-gaap:EmployeeStockOptionMember2022-01-012022-03-310001127371srt:MinimumMember2017-06-020001127371srt:MaximumMember2017-06-020001127371cvcy:EmployeeStockPurchasePlanESPPMember2017-06-022017-06-020001127371cvcy:EmployeeStockPurchasePlanESPPMember2017-06-020001127371cvcy:EmployeeStockPurchasePlanESPPMember2023-03-310001127371us-gaap:RestrictedStockMembersrt:MinimumMember2023-01-012023-03-310001127371us-gaap:RestrictedStockMembersrt:MaximumMember2023-01-012023-03-310001127371us-gaap:RestrictedStockMember2022-12-310001127371us-gaap:RestrictedStockMember2023-01-012023-03-310001127371us-gaap:RestrictedStockMember2023-03-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
 
FORM 10-Q
(Mark One)
 
☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 FOR THE QUARTERLY PERIOD ENDED March 31, 2023
 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
FOR THE TRANSITION PERIOD FROM                        TO
 
COMMISSION FILE NUMBER: 000-31977
 
CENTRAL VALLEY COMMUNITY BANCORP
(Exact name of registrant as specified in its charter)
California 77-0539125
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
7100 N. Financial Dr., Suite 101, Fresno, California
 93720
(Address of principal executive offices) (Zip code)
 
Registrant’s telephone number (559) 298-1775

Securities registered pursuant to Section 12(b) of the Act:
Common Stock, no par valueCVCY
NASDAQ Capital Market
(Title of Each Class)(Trading Symbol)(Name of Each Exchange on which Registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No  ☐ 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes  ☒  No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. 
Large accelerated filer
  ☐
 
Accelerated filer
☐
Emerging growth company
☐
Non-accelerated filer
  ☒
 
Small reporting company
☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐ No  ☒

As of April 30, 2023 there were 11,754,627 shares of the registrant’s common stock outstanding.
1

CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
 
2023 QUARTERLY REPORT ON FORM 10-Q
 
TABLE OF CONTENTS
 
 

2

PART 1: FINANCIAL INFORMATION
 

ITEM 1: FINANCIAL STATEMENTS

CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
 (Unaudited)
(In thousands, except share amounts)March 31, 2023December 31, 2022
  
ASSETS  
Cash and due from banks$25,464 $25,485 
Interest-earning deposits in other banks38,798 5,685 
Total cash and cash equivalents64,262 31,170 
Available-for-sale debt securities, at fair value631,524 648,825 
Held-to-maturity debt securities, at amortized cost less allowance for credit losses of $684 at March 31, 2023 and $- at December 31, 2022303,844 305,107 
Equity securities, at fair value6,663 6,558 
Loans, less allowance for credit losses of $15,257 at March 31, 2023 and $10,848 at December 31, 20221,270,297 1,245,456 
Bank premises and equipment, net8,040 7,987 
Bank-owned life insurance40,786 40,537 
Federal Home Loan Bank stock6,169 6,169 
Goodwill53,777 53,777 
Accrued interest receivable and other assets78,531 76,933 
Total assets$2,463,893 $2,422,519 
LIABILITIES AND SHAREHOLDERS’ EQUITY  
Deposits:  
Non-interest bearing$975,424 $1,056,567 
Interest bearing1,200,323 1,043,082 
Total deposits2,175,747 2,099,649 
Short-term borrowings— 46,000 
Senior debt and subordinated debentures, less debt issuance costs of $520 at March 31, 2023 and $556 at December 31, 202269,635 69,599 
Accrued interest payable and other liabilities36,459 32,611 
Total liabilities2,281,841 2,247,859 
Shareholders’ equity:  
Preferred stock, no par value; 10,000,000 shares authorized, none issued and outstanding
— — 
Common stock, no par value; 80,000,000 shares authorized; issued and outstanding: 11,754,938 at March 31, 2023 and 11,735,291 at December 31, 202261,924 61,487 
Retained earnings196,229 194,400 
Accumulated other comprehensive (loss) income, net of tax(76,101)(81,227)
Total shareholders’ equity182,052 174,660 
Total liabilities and shareholders’ equity$2,463,893 $2,422,519 
 
See notes to unaudited consolidated financial statements.
3


CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
 
For the Three Months
Ended March 31,
(In thousands, except share and per-share amounts) 20232022
INTEREST INCOME:
Interest and fees on loans$16,777 $12,161 
Interest on deposits in other banks75 57 
Interest and dividends on investment securities:
Taxable5,886 4,524 
Exempt from Federal income taxes1,405 1,440 
Total interest income24,143 18,182 
INTEREST EXPENSE:
Interest on deposits1,004 252 
Interest on short-term borrowings661 — 
Interest on senior debt and subordinated debentures897 333 
Total interest expense2,562 585 
Net interest income before provision for credit losses21,581 17,597 
PROVISION FOR CREDIT LOSSES633 — 
Net interest income after provision for credit losses20,948 17,597 
NON-INTEREST INCOME:
Service charges387 539 
Appreciation in cash surrender value of bank-owned life insurance
249 242 
Interchange fees446 442 
Net realized (losses) gains on sales and calls of investment securities (219)206 
Federal Home Loan Bank dividends109 85 
Loan placement fees124 299 
Other income479 21 
Total non-interest income1,575 1,834 
NON-INTEREST EXPENSES:
Salaries and employee benefits8,034 6,944 
Occupancy and equipment1,258 1,162 
Professional services353 374 
Data processing650 541 
Regulatory assessments210 222 
ATM/Debit card expenses184 195 
Information technology847 758 
Directors’ expenses163 45 
Advertising125 140 
Loan related expenses147 71 
Personnel other259 103 
Amortization of core deposit intangibles34 140 
Other941 750 
Total non-interest expenses13,205 11,445 
Income before provision for income taxes9,318 7,986 
Provision for income taxes 2,348 1,900 
Net income$6,970 $6,086 
Earnings per common share:
Basic earnings per share$0.60 $0.51 
Weighted average common shares used in basic computation11,703,813 11,829,245 
Diluted earnings per share$0.59 $0.51 
Weighted average common shares used in diluted computation11,731,135 11,872,025 
Cash dividend per common share$0.12 $0.12 
 
See notes to unaudited consolidated financial statements.
4


CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
(Unaudited)
 
For the Three Months
Ended March 31,
(In thousands)20232022
Net income$6,970 $6,086 
Other Comprehensive Income (Loss):
Unrealized gains (losses) on securities:
Unrealized holding gains (losses) arising during the period6,433 (80,603)
Reclassification of net losses (gains) included in net income219 (206)
Amortization of net unrealized losses transferred 627 — 
Other comprehensive income (loss), before tax7,279 (80,809)
Tax effect(2,153)23,890 
Total other comprehensive income (loss) 5,126 (56,919)
Comprehensive income (loss)$12,096 $(50,833)

See notes to unaudited consolidated financial statements.
5

 
CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
THREE MONTHS ENDED MARCH 31, 2023 AND 2022
Common StockRetained EarningsAccumulated
Other
Comprehensive Income (Loss)
(Net of Taxes)		Total Shareholders’ Equity
(In thousands, except share amounts)SharesAmount
Balance, December 31, 202111,916,651 $66,820 $173,393 $7,632 247,845 
Net income— — 6,086 — 6,086 
Other comprehensive loss— — — (56,919)(56,919)
Stock issued under employee stock purchase plan
3,006 57 — — 57 
Stock awarded to employees13,146 273 — — 273 
Restricted stock granted net of forfeitures
4,618 — — — — 
Stock-based compensation expense
— 97 — — 97 
Cash dividend
— — (1,425)— (1,425)
Repurchase and retirement of common stock
(195,873)(4,486)— — (4,486)
Stock options exercised
11,075 132 — — 132 
Balance, March 31, 202211,752,623 $62,893 $178,054 $(49,287)$191,660 
Balance, December 31, 2022
11,735,291 $61,487 $194,400 $(81,227)$174,660 
Implementation of ASU 2016-13, Current Expected Credit Loss (CECL) Day 1 Adjustment— — (3,731)— (3,731)
Adjusted Balance, January 1, 202311,735,291 $61,487 $190,669 $(81,227)$170,929 
Net income
— — 6,970 — 6,970 
Other comprehensive income— — — 5,126 5,126 
Restricted stock granted net of forfeitures
5,157 — — — — 
Stock issued under employee stock purchase plan
4,143 76 — — 76 
Stock awarded to employees10,347 221 — — 221 
Stock-based compensation expense
— 140 — — 140 
Cash dividend
— — (1,410)— (1,410)
Balance, March 31, 202311,754,938 $61,924 $196,229 $(76,101)$182,052 

See notes to unaudited consolidated financial statements.
6

CENTRAL VALLEY COMMUNITY BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) 
 For the Three Months
Ended March 31,
(In thousands)20232022
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net income$6,970 $6,086 
Adjustments to reconcile net income to net cash provided by operating activities: 
Net (increase) decrease in deferred loan fees(56)208 
Depreciation158 204 
Accretion(515)(336)
Amortization2,306 2,319 
Stock-based compensation140 97 
Provision for credit losses633 — 
Net realized losses (gains) on sales and calls of available-for-sale investment securities219 (206)
Net change in equity securities(105)345 
Increase in bank-owned life insurance, net of expenses(249)(242)
Net (decrease) increase in accrued interest receivable and other assets(2,509)1,574 
Net increase (decrease) in accrued interest payable and other liabilities3,251 (10,249)
Benefit (provision) for deferred income taxes289 (435)
Net cash provided by (used in) operating activities10,532 (635)
CASH FLOWS FROM INVESTING ACTIVITIES:  
Purchases of available-for-sale investment securities— (286,385)
Proceeds from sales or calls of available-for-sale investment securities12,066 132,991 
Proceeds from maturity and principal repayments of available-for-sale investment securities10,355 18,435 
Proceeds from maturity and principal repayments of held-to-maturity investment securities798 — 
Net (increase) decrease in loans(29,212)27,125 
Purchases of premises and equipment(210)(2)
Net cash used in investing activities(6,203)(107,836)
CASH FLOWS FROM FINANCING ACTIVITIES:  
Net (decrease) increase in demand, interest bearing and savings deposits(69,013)44,891 
Net increase (decrease) in time deposits145,110 (5,328)
Proceeds from short-term borrowings from Federal Home Loan Bank
3,346,500 — 
Repayments of short-term borrowings to Federal Home Loan Bank(3,392,500)— 
Purchase and retirement of common stock— (4,486)
Proceeds from stock issued under employee stock purchase plan
76 57 
Proceeds from exercise of stock options— 132 
Cash dividend payments on common stock(1,410)(1,425)
Net cash provided by financing activities28,763 33,841 
Increase (decrease) in cash and cash equivalents33,092 (74,630)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD31,170 163,467 
CASH AND CASH EQUIVALENTS AT END OF PERIOD$64,262 $88,837 
 
See notes to unaudited consolidated financial statements.
7

 For the Three Months
Ended March 31,
(In thousands)20232022
SUPPLEMENTAL DISCLOSURE OF CASH FLOWS INFORMATION:  
Cash paid during the period for:
  
Interest$2,730 $172 
Income taxes$— $— 
Operating cash flows from operating leases$589 $575 
See notes to unaudited consolidated financial statements.
8

Note 1.  Basis of Presentation
 
The interim unaudited condensed consolidated financial statements of Central Valley Community Bancorp and subsidiary have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC). These interim condensed consolidated financial statements include the accounts of Central Valley Community Bancorp and its wholly owned subsidiary Central Valley Community Bank (the Bank) (collectively, the Company). All significant intercompany accounts and transactions have been eliminated in consolidation.  Certain information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been omitted. The Company believes that the disclosures are adequate to make the information presented not misleading. These interim unaudited condensed consolidated financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s 2022 Annual Report to Shareholders on Form 10-K. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, necessary to present fairly the Company’s financial position at March 31, 2023, and the results of its operations and its cash flows for the three month interim periods ended March 31, 2023 and 2022 have been included. The results of operations for interim periods are not necessarily indicative of results for the full year.
 
The preparation of these interim unaudited condensed consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
 
Management has determined that since all of the banking products and services offered by the Company are available in each branch of the Bank, all branches are located within the same economic environment, and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate the Bank branches and report them as a single operating segment. No customer accounts for more than 10 percent of revenues for the Company or the Bank.

Impact of New Financial Accounting Standards Adopted in 2023

On January 1, 2023, the Company adopted ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, as amended, which replaces the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss (CECL) methodology. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loan receivables and held-to-maturity securities. It also applies to off-balance sheet credit exposures not accounted for as insurance (loan commitments, standby letters of credit, financial guarantees, and other similar instruments). In addition, credit losses recognized on available-for-sale debt securities will be presented as an allowance as opposed to a write-down, based on management’s intent to sell the security or the likelihood the Company will be required to sell the security before recovery of the amortized cost basis.

The Company adopted ASC 326 using the modified retrospective method for all financial assets measured at amortized cost and off-balance sheet credit exposures. Results for the reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable GAAP. The Company recognized an increase in the allowance for credit losses on loans totaling $3,910,000, a reserve for credit losses for held-to-maturity securities of $776,000, and an increase to the reserve for unfunded commitments of $612,000 with a corresponding decrease, net of taxes, in retained earnings, of $3,731,000 as of January 1, 2023 for the cumulative effect of adopting ASC 326.

The Company also adopted ASU 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures upon the adoption of ASU 2016-13 as of January 1, 2023 on a propsective basis. The amendments in this update eliminated the accounting guidance for troubled debt restructurings (“TDRs”) by creditors in Subtopic 310-40, Receivables-Troubled Debt Restructurings by Creditors, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. Specifically, rather than applying the recognition and measurement guidance for TDRs, an entity must apply the loan refinancing and restructuring guidance in paragraphs 310-20-35-9 through 35-11 to determine whether a modification results in a new loan or a continuation of an existing loan. Additionally, for public business entities, the amendments in this Update require that an entity disclose current-period gross write-offs by year of origination for financing receivables and net investments in leases within the scope of Subtopic 326-20, Financial Instruments-Credit Losses-Measured at Amortized Cost in the vintage disclosures required by paragraph 326-20-50-6. The adoption modified the Company’s disclosures but did not have a material impact on its financial position or results of operations.
9


In March 2020, The FASB issued Accounting Standards Update (ASU) 2020-04, Reference Rate Reform (Subtopic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for contracts, hedging relationships, and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. As the Company has an insignificant number of instruments that are applicable to this ASU, management has determined that no impact to the valuations of these instruments are applicable for financial reporting purposes.

Reclassifications - Certain reclassifications have been made to prior year financial statements to conform to the classifications used in 2023. None of the reclassifications had an impact on equity or net income.

Summary of Significant Accounting Policies

The Company has revised the following significant accounting policies as a result of the the adoption of ASU 2016-13.

Allowance for Credit Losses on Available-for-Sale Debt Securities: For available-for-sale (“AFS”) debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more than likely than not that it will be required to sell the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For AFS debt securities that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of the cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded for the credit loss, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income.

Changes in the allowance for credit losses are recorded as credit loss provision (or reversal). Losses are charged against the allowance when management believes that the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met.

Allowance for Credit Losses on Held-to-Maturity Debt Securities: Management measures expected credit losses on held-to-maturity (“HTM”) debt securities on a collective basis by major security type. The estimate of expected credit losses considers historical credit loss information based on industry data that is adjusted for current conditions and reasonable and supportable forecasts. Management classifies the held-to-maturity portfolio into the following major security types: Obligations of States and Political Subdivisions, U.S. Government sponsored Entities and Agencies collateralized by Residential Mortgage Obligations, Private Label Mortgage and Asset Backed Securities, and Corporate Debt Securities.

Allowance for Credit Losses on Loans: The allowance for credit losses (“ACL”) is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans. The allowance is established through a provision for credit losses which is charged to expense.  Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Cash received on previously charged off amounts is recorded as a recovery to the allowance. 

Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current conditions and reasonable and supportable forecasts. Historical credit loss experience from national and peer data provides the basis for the estimation of expected credit losses. Adjustments to historical loss information are made for the differences in the current loan-specific risk characteristics, such as differences in loan-to-values, portfolio mix, or term as well as for changes in environmental conditions, such as changes in unemployment rates, market interest rates, property values, or other relevant factors. Management may assign qualitative factors to each loan segment if there are material risks or improvements present but not yet captured in the model environment.

The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. The Company segregates the allowance by portfolio segment.  These portfolio segments include commercial, commercial real estate, 1-4 family real estate and consumer loans.  The relative significance of risk considerations vary by portfolio segment. Real estate construction loans, as summarized by class within the loan footnote, are disaggregated into either the commercial real estate or 1-4 family real estate allowance segments based on the type of construction loan due to the varying risks between commercial and consumer construction.
10


Commercial:
Commercial and industrial - Commercial and industrial loans are generally underwritten to existing cash flows of operating businesses. Additionally, economic trends influenced by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Past due payments may indicate the borrower’s capacity to repay their obligations may be deteriorating.

Agricultural production - Loans secured by crop production and livestock are especially vulnerable to two risk factors that are largely outside the control of Company and borrowers: commodity prices and weather conditions.

Commercial Real Estate:
Commercial real estate construction and other land loans - Commercial Land and construction loans generally possess a higher inherent risk of loss than other real estate portfolio segments. A major risk arises from the necessity to complete projects within specified costs and time lines. Trends in the construction industry significantly impact the credit quality of these loans, as demand drives construction activity. In addition, trends in real estate values significantly impact the credit quality of these loans, as property values determine the economic viability of construction projects.

Commercial real estate - owner-occupied - Real estate collateral secured by commercial or professional properties with repayment arising from the owner’s business cash flows. To meet this classification, the owner’s operation must occupy no less than 50% of the real estate held. Financial profitability and capacity to meet the cyclical nature of the industry and related real estate market over a significant timeframe is essential.

Commercial real estate - non-owner occupied - Investor commercial real estate loans generally possess a higher inherent risk of loss than other real estate portfolio segments, except land and construction loans. Adverse economic developments or an overbuilt market impact commercial real estate projects and may result in troubled loans. Trends in vacancy rates of commercial properties impact the credit quality of these loans. High vacancy rates reduce operating revenues and the ability for properties to produce sufficient cash flows to service debt obligations.

Farmland - Agricultural loans secured by real estate generally possess a higher inherent risk of loss caused by changes in concentration of permanent plantings, government subsidies, and the value of the U.S. dollar affecting the export of commodities.

Multi-family - These properties are generally comprised of more than four rentable units, such as apartment buildings, with each unit intended to be occupied as the primary residence for one or more persons. Multi-family properties are also subject to changes in general or regional economic conditions, such as unemployment, ultimately resulting in increased vacancy rates or reduced rents or both. In addition, new construction can create an oversupply condition and market competition resulting in increased vacancy, reduced market rents, or both. Due to the nature of their use and the greater likelihood of tenant turnover, the management of these properties is more intensive and therefore is more critical to the preclusion of loss.

1-4 Family Real Estate: Including 1-4 family close-ended, revolving real estate loans, and residential construction loans, the degree of risk in residential real estate lending depends primarily on the loan amount in relation to collateral value, the interest rate and the borrower’s ability to repay in an orderly fashion. These loans generally possess a lower inherent risk of loss than other real estate portfolio segments. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of these loans. Weak economic trends may indicate that the borrowers’ capacity to repay their obligations may be deteriorating

Consumer: A consumer installment loan portfolio is usually comprised of a large number of small loans scheduled to be amortized over a specific period. Most installment loans are made directly for consumer purchases. Other consumer loans include other open ended unsecured consumer loans. Open ended unsecured loans generally have a higher rate of default than all other portfolio segments and are also impacted by weak economic conditions and trends.

When loans do not share similar risk characteristics, the Company evaluates the loan for expected credit losses on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty at the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for selling costs as appropriate. When the Company measures credit losses based on the present value of expected future cash flows, management does not adjust the effective interest rate used to discount expected cash flows to incorporate expected prepayments.

Allowance for Credit Losses on Unfunded Commitments: The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The allowance for credit losses on unfunded commitments is
11

adjusted through provision for credit losses. The estimate includes consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded over its estimated life.

Note 2.  Fair Value Measurements
 
Fair Value Hierarchy
 
Fair value is the exchange price that would be received for an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are three levels of inputs that may be used to measure fair values:

Level 1 — Quoted market prices (unadjusted) for identical instruments traded in active markets that the entity has the ability to access as of the measurement date.

Level 2 —Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Significant unobservable inputs that reflect an entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
The estimated carrying and fair values of the Company’s financial instruments not carried at fair value are as follows (in thousands):
 March 31, 2023
Carrying
Amount		Fair Value
(In thousands)Level 1Level 2Level 3Total
Financial assets:    
Cash and due from banks$25,464 $25,464 $— $— $25,464 
Interest-earning deposits in other banks38,798 38,798 — — 38,798 
Held-to-maturity investment securities303,844 — 276,633 — 276,633 
Loans, net1,270,297 — — 1,182,862 1,182,862 
Financial liabilities:    
Time Deposits213,033 — 207,554 — 207,554 
Senior debt and subordinated debentures69,635 — — 58,944 58,944 
 December 31, 2022
Carrying
Amount		Fair Value
(In thousands)Level 1Level 2Level 3Total
Financial assets:  
Cash and due from banks$25,485 $25,485 $— $— $25,485 
Interest-earning deposits in other banks5,685 5,685 — — 5,685 
Held-to-maturity investment securities305,107 — 271,249 — 271,249 
Loans, net1,245,456 — — 1,113,849 1,113,849 
Financial liabilities:  
Time deposits67,923 — 67,047 — 67,047 
Short-term borrowings46,000 — 46,000 — 46,000 
Subordinated debentures69,599 — — 62,504 62,504 

The methods and assumptions used to estimate fair values are described as follows:

(a) Investment securities — The fair values for investment securities are determined by quoted market prices, if available (Level 1). For securities where quoted prices are not available, fair values are calculated based on market prices of similar securities (Level 2), using matrix pricing. Matrix pricing is a mathematical technique commonly used to price debt securities that are not actively traded, values debt securities without relying exclusively on quoted prices for the specific securities but
12

rather by relying on the securities’ relationship to other benchmark quoted securities (Level 2 inputs). For securities where quoted prices or market prices of similar securities are not available, fair values are calculated using discounted cash flows or other market indicators (Level 3).

(b) Individually Evaluated Loans — Fair values for individually evaluated loans are estimated either using the fair value of the collateral less selling costs if collateral dependent resulting in a Level 3 classification. Individually evaluated loan amounts are initially valued at the lower of cost or fair value. Individually evaluated loans carried at fair value generally receive specific allocations of the allowance for credit losses. For collateral dependent real estate loans, fair value is commonly based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the independent appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge, changes in market conditions from the time of the valuation, and management’s expertise and knowledge of the client and client’s business, resulting in a Level 3 fair value classification. Individually evaluated loans are evaluated on a quarterly basis for additional credit losses and adjusted accordingly. The estimated fair values of financial instruments disclosed above follow the guidance in ASU 2016-01 which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments incorporating discounts for credit, liquidity, and marketability factors.

(c) Real Estate Owned — Appraisals for assets acquired through foreclosure are performed by certified general appraisers (for commercial properties) or certified residential appraisers (for residential properties) whose qualifications and licenses have been reviewed and verified by the Company. Once received, the assumptions and approaches utilized in the appraisal as well as the overall resulting fair value is compared with independent data sources such as recent market data or industry-wide statistics.
 
Assets Recorded at Fair Value
 
The Company is required or permitted to record the following assets at fair value on a recurring basis. The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022:

Fair Value Measurements Using
March 31, 2023Fair ValueLevel 1Level 2Level 3
Available-for-sale debt securities:    
U.S. Treasury securities$8,879 $— $8,879 $— 
U.S. Government agencies98 — 98 — 
Obligations of states and political subdivisions178,051 — 178,051 — 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
92,631 — 92,631 — 
Private label mortgage and asset backed securities
351,865 — 351,865 — 
Equity securities
6,663 6,663 — — 
Total assets measured at fair value on a recurring basis
$638,187 $6,663 $631,524 $— 
13

 
Fair Value Measurements Using
December 31, 2022Fair ValueLevel 1Level 2Level 3
Available-for-sale debt securities:    
U.S. Treasury securities$8,707 $— $8,707 $— 
U.S. Government agencies98 — 98 — 
Obligations of states and political subdivisions174,985 — 174,985 — 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
109,493 — 109,493 — 
Private label mortgage and asset backed securities
355,542 — 355,542 — 
Equity securities6,558 6,558 — — 
Total assets measured at fair value on a recurring basis$655,383 $6,558 $648,825 $— 

There were no changes in valuation techniques used during the three months ended March 31, 2023 or the year ended December 31, 2022. There were no assets measured on a non-recurring basis at March 31, 2023 and December 31, 2022.

Note 3.  Investments
 
The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2023 and December 31, 2022 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses (in thousands): 
 March 31, 2023
Available-for-Sale SecuritiesAmortized Cost
Gross
Unrealized
 Gains
Gross
Unrealized
Losses		Allowance for Credit Losses
Estimated
 Fair Value
Debt securities:    
U.S. Treasury securities$9,990 $— $(1,111)$— $8,879 
U.S. Government agencies106 — (8)— 98 
Obligations of states and political subdivisions200,915 — (22,864)— 178,051 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
99,307 4 (6,680)— 92,631 
Private label mortgage and asset backed securities
406,197 11 (54,343)— 351,865 
Total available-for-sale$716,515 $15 $(85,006)$— $631,524 
March 31, 2023
Held-to-Maturity SecuritiesAmortized Cost
Gross
Unrecognized
 Gains
Gross
Unrecognized
Losses
Estimated
 Fair Value
Allowance for Credit Losses
Debt securities:
Obligations of states and political subdivisions$192,028 $68 $(17,529)$174,567 $— 
U.S. Government sponsored entities and agencies collateralized by residential mortgage obligations
10,511 — (1,559)8,952