Central Valley Community Bancorp : Annual Report

TO OUR

Shareholders

Investing in Relationships and

Building Stronger Communities

˙e year 2022 may be remembered for continuing the ongoing spiral of economic uncertainty, but despite this challenging environment, Central Valley Community Bancorp (Company) ended the year with remarkable overall ÿnancial performance.

With assets of $2.42 billion as of December 31, 2022, the Company achieved success across all key objectives, including growth in loans, pristine asset quality and strong earnings. ˙ese positive results can be attributed, in part, to our loyal clients, who understand that CVCB is not just their bank, but their partner, regardless of the economic environment.

˙e Company's ÿnancial results re°ect the impact of signiÿcant interest rate increases throughout 2022, as evidenced by improved earnings and a decrease in value of earning assets on the balance sheet. ˙e resilience of the Company's core deposit base shines, as the industry endures liquidity stress in 2023.

As we re°ect on the past year, it is with thanks to our hard-working team whose advocacy and service to clients and communities has been remarkable, especially considering the ever-changing nature of the ÿscal landscape. We are also grateful to the clients that joined us in 2022, entrusting us with the honor of advocating for their ÿnancial success. We remain steadfast in our commitment to build short- and long-term Company value, including a strong core deposit base, ample liquidity and solid capital position, while continuing to prioritize exceptional client service.

2022 Financial Performance

˙e Company reported assets as of December 31, 2022, of

$2.4 billion. Net income for the year ended December 31, 2022, was $26.6 million. Loan growth was strong, reaching $1.26 billion by year-end 2022, and total deposits remained robust at $2.1 billion

˙e Board of Directors declared dividends for all four quarters of 2022 totaling $0.48 per share. ˙e Company's cost of average total deposits barely increased to 0.06% for the year ended December 31, 2022, compared to 0.05% for the same period in 2021.

2022 Economic Overview

From record-setting in°ation to stock market volatility, interest rate hikes to the persistent threat of recession, 2022 was rife with challenges to be navigated.

Nationally in 2022, the Federal Reserve raised interest rates 7 times totaling 4.25% in an e˜ort to slow the skyrocketing in°ation rate which hit 9.1%. Led by the S&P's plummet of 500 points - 19% of its total value - the stock market declined each quarter in 2022, seeing some of its lowest returns since the 1970s.

On a positive note, the nation's unemployment rate fell to a historic low of 3.5% by year-end 2022. And gains in healthcare, leisure, hospitality and construction jobs helped America's workforce recover from the high unemployment of the pandemic.

In California, sales of existing homes dropped more than 40% in November 2022 from the year prior, and median home prices declined. Additionally, Central Valley farmers were notiÿed of reduced water allocations, as the state had received just 76% of its average rainfall by year-end.

However, 2023's precipitation has already improved the outlook for California farmers. In other good news, the pandemic's decline spurred a rebound in the travel and tourism industries, while average wages and family income rose in 2022.

2022 Leadership Transitions

In April 2022, Je˜ M. Martin joined the Company as Executive Vice President, Market Executive. Je˜ leads CVCB's Northern region, which encompasses Greater Sacramento, San Joaquin, Stanislaus and Merced Counties.

In September 2022, Dawn P. Crusinberry, Senior Vice President, Controller, was appointed as the Company's Interim Executive Vice President, Chief Financial O˝cer. Shannon R. Avrett was named Executive Vice President, Chief Financial O˝cer in February 2023, bringing a wealth of expertise, ÿnancial acumen and strategic leadership to the executive management team. Dawn Crusinberry will remain with the Company as Executive Vice President through the completion of a smooth transition. She then plans to retire after an exemplary 40-plus year career, 23 years with CVCB.

Founding Director and Director Emeritus since 2016, Sidney (Sid) B. Cox, passed away in August 2022. Sid represented the vision of CVCB's founders through his passion for serving the community and our Company with excellence, and inspiring those around him to do the same. We are forever grateful for his contributions to our Company and the region.

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Coming Soon: Banking Centers of the Future

In 2022, CVCB announced its intent to expand further into Sacramento with a new Commercial Banking Center in the Point West area. Scheduled to open later in 2023, the location serves as CVCB's new °agship Banking Center model, designed to elevate the "relationship banking" experience in a comfortable, contemporary and private setting.

Looking ahead, the Company will continue to advance its commitment to exceptional client service and impact by investing in both physical facilities and banking technologies. Plans are currently underway to relocate the Modesto and Visalia Downtown Banking Centers to new, modern facilities in 2023 to better serve the growing business clientele in these communities.

Financial Education Impacts Communities

Investing in communities has been integral to the Company's mission for 43 years, inspiring a long history of service to nonproÿts and community organizations. Sharing resources from ÿnancial donations to volunteer leadership, the Company's support helps meet a wide range of community needs including ÿnancial education, food and housing security, healthcare, regional revitalization and more.

In 2022, the Company invested approximately $230 thousand in ÿnancial support to 174 worthy organizations and shared over 2,000 volunteer hours to various groups, exceeding the team's goals for the year.

Providing ÿnancial literacy training is one area of impact in which the Company invests, to empower children, young adults and small business entrepreneurs to achieve a successful future. In 2022, team members provided ÿnancial literacy to high school students and children's service clubs, both independently and through training partnerships with the Better Business Bureau and EVERFI.

˙e students, majority from low- to moderate-income families in the Central Valley, learned practical skills to help them manage their ÿnancial goals, establish good spending habits and prepare them for adulthood. ˙e team continues to receive positive feedback on the training which will continue into 2023.

Additionally, ÿnancial education was provided to small businesses, university student entrepreneurs, startups and minority-owned businesses through our team volunteers as well as SCORE and other regional business workshops. Subjects included the challenges of running a business, navigating funding, securing their operation against cybercrime and preparing themselves for success.

Every year, the Company is honored to impact our communities in this important way, mentoring the next generation, helping to grow businesses, advocating sound practices, recruiting interest in banking careers and, perhaps most important: demonstrating how giving back pays dividends for the future and the community.

2022 Awards & Achievements

From robust ÿnancial performance to our talented team, many factors contributed to the recognition earned by the Company in 2022. Among the honors:

• Earning a 5-Star Superior rating from Bauer Financial for all quarters in 2022 based on ÿnancial results.
• Being honored by ˙e Business Journal as "Best Business Bank" for the ninth straight year at the 2022 Best of Central Valley Business Awards.

Our 2023 Vision: Reenergized and Recommitted

As the Company emerges from the third consecutive challenging year of economic uncertainty, we are driven by the one value that remains consistent no matter the environment: our commitment to relationships.

˙e trust placed in CVCB inspires and energizes our team to serve the needs of our clients and communities with even greater attention. We are honored to be our clients' ÿnancial advocate and Bank of Choice, especially considering the number of other options available.

˙at commitment extends to every community the Company is proud to call home. ˙e importance of community banking has never been clearer, and we are proud to fulÿll that role with an extraordinary and diverse team that is passionate about exceeding the expectations of every client, every community. All led by a highly capable executive team and strategic plan, balanced by the °exibility to respond to the ever-changing economic landscape.

We close this letter with our deepest thanks for the support of our clients, shareholders and communities. You are the backbone of this Company, the driving force behind its ongoing success, and we are truly grateful.

Sincerely,

James J. Kim	Daniel J. Doyle
President and CEO,	Chairman of the Board,
Central Valley Community Bancorp	Central Valley Community Bancorp
Central Valley Community Bank	Central Valley Community Bank

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A PROUD HISTORY

A Promising Future

Elevating Community Banking Since 1980

Central Valley Community Bank (CVCB) has an enviable track record of ÿnancial strength, security and stability gained over its 43-year history. Today's CVCB is a well-capitalized institution with assets exceeding $2.4 billion as of December 31, 2022. ˙e Company is proud to receive continued industry acclaim and national recognition for its excellent ÿnancial performance.

CVCB is distinguished from other ÿnancial institutions by its people, dedication to client advocacy, exemplary "relationship banking," strong community support and its mission to exceed expectations. ˙e Company has a passion for providing customized solutions to guide businesses and communities to succeed through its personal approach and full range of business and consumer banking products, lending and digital services that keep pace with the industry.

Full-service Banking Centers are located in 15 communities within California's San Joaquin Valley and Greater Sacramento Region, as well as Commercial Lending, Real Estate, Agribusiness, Private Business Banking and Cash Management Departments. All are under the umbrella of Central Valley Community Bancorp (NASDAQ: CVCY), established in 2000 as the holding company for CVCB.

Guided By Values

Despite CVCB's growth and success, it has remained true to its founding vision and commitment to the core values of teamwork, caring, inclusive, excellence, accountability and integrity. ˙e Company believes that accountable corporate behavior is essential for a community bank, and works hard to contribute to a more equitable, resilient future for clients, team members, shareholders and the communities it serves.

Driven By Our Mission

At its heart, Central Valley Community Bank's Mission Statement has always been about relationships, fostering a culture designed to:

"Inspire and empower our team to enrich and invest in every relationship by exceeding expectations." Since opening its doors in 1980, CVCB's competitive advantage has been its people. People who deliver an exceptional service experience at every interaction. People guided by a Mission Statement and Core Values that re°ect the timeless ideals upon which CVCB was founded.

Shaped By History

CVCB's history has been written by many hands, but with one vision: to help businesses and communities succeed by exceeding expectations at every opportunity. ˙e Central Valley Community Bank you see today is the product of that history - the embodiment of the vision and values upon which it was established in 1979. ˙e Company opened its doors on January 10, 1980, in the Fresno County city of Clovis, with 12 professional bankers and assets of $2,000,000.

˙e Company's founders were a diverse group of local business owners (including a few former bankers) who lived in the region and knew ÿrst-hand how a true community bank would beneÿt this unique area.

˙ey envisioned a community bank that would invest in and grow the county's distinctive communities, with Banking Centers that would employ service-driven professional bankers who understood the businesses and needs of their communities. What started in Clovis expanded to the Central Sierra communities of Shaver Lake and Prather, then to Fresno and along the CA Highway 99 corridor to Greater Sacramento in the north and Visalia in the south. ˙e founders' vision had been fulÿlled, and continues to be realized in CVCB's daily operations.

Driven By Community Support

As a community bank, CVCB is closely connected with its communities where team members live, work and raise their families and wants them to grow stronger and more successful. To achieve this, CVCB supports a wide variety of community organizations with leadership involvement, ÿnancial donations, volunteerism and ÿnancial education.

Inspired By The Future

As CVCB re°ects on its long history and how its legacy of service and vision has shaped the Company to this day, there is abundant reason to be excited about its future. Guided by the Company's proven leadership and Board of Directors, CVCB's greatest days lie ahead. ˙e Company is honored to share those days with the team members, clients, investors and communities whose support is appreciated and valued.

˜e Company is regulated by the Federal Deposit Insurance Corporation, Federal Reserve Board, Securities and Exchange Commission, and the California Department of Financial Protection ° Innovation.

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