Category: Business

December 20, 2012…

Central Valley Community Bancorp (NASDAQ: CVCY), a bank holding company headquartered in Fresno, California, and Visalia Community Bank (OTCBB: VSMU), headquartered in Visalia, California, jointly announced today that a definitive merger agreement has been signed by both parties. Under the terms of the agreement, Visalia Community Bank, with four branches in Visalia and one branch in Exeter, will merge with Central Valley Community Bancorp’s subsidiary, Central Valley Community Bank. The transaction is subject to customary closing conditions, including regulatory approvals and approval by Visalia Community Bank’s shareholders. The Central Valley Community Bancorp and Visalia Community Bank boards of directors have unanimously approved the transaction, which is expected to close in the second quarter of 2013.
The transaction is initially valued at approximately $22.1 million or $52.00 per share to Visalia Community Bank shareholders. The purchase price is to be paid half in cash and half in Central Valley Community Bancorp common stock. Based on a value of $8.75 per share of Central Valley Community Bancorp common stock, using the 30-day volume weighted average trading price at the time when the principal terms of the agreement were being established, in the aggregate approximately 1.263 million shares of Central Valley Community Bancorp common stock would be issued and $11,050,000 would be paid in cash. As a result, Visalia Community Bank shareholders would be entitled to receive approximately $26.00 and 2.97 shares of Central Valley Community Bancorp common stock per share. The total purchase price is subject to adjustments and closing conditions, including potential adjustments if the volume weighted average trading price of Central Valley Community Bancorp common shares rises or falls beyond certain levels prior to closing.
The Central Valley Community Bancorp and Central Valley Community Bank directors and management team, led by Daniel J. Doyle, president and CEO, will continue to lead the combined team of professional bankers. F. T. “Tommy” Elliott IV, chairman of the board of directors of Visalia Community Bank, will join Central Valley Community Bancorp’s board of directors upon completion of the acquisition. This merger with Visalia Community Bank will become the third acquisition for Central Valley Community Bancorp, which acquired Service 1st Bancorp and its subsidiary Service 1st Bank on November 12, 2008, and Bank of Madera County on January 1, 2005.
As of September 30, 2012, on a pro forma consolidated basis with Visalia Community Bank, Central Valley Community Bancorp would have had approximately $1.078 billion in total assets, with 23 branches throughout California’s San Joaquin Valley.
“Both banking institutions are well known for their excellent customer service and community advocacy, which will not change as a result of the merger. Once approved, the merger will complete another step in our long-term strategy to increase our presence throughout California’s San Joaquin Valley by adding offices in Tulare County, complementing our 17 existing offices in the northern Valley counties of Fresno, Madera, Merced, Stanislaus, Sacramento and San Joaquin. This growth allows Central Valley Community Bank to further accommodate an increasing customer base in the communities of Visalia and Exeter. We believe that the expansion into Tulare County will provide long-term opportunities for businesses, customers, employees, the community, and our Bank,” stated Daniel J. Doyle, president and CEO of Central Valley Community Bancorp and Central Valley Community Bank.
“Additionally, the merger will provide Visalia Community Bank customers with more convenient locations throughout the San Joaquin Valley, as well as offer new advancement and geographic opportunities for their employees. We are pleased to have Visalia Community Bank employees join our team of professional community bankers who are focused on providing a full array of competitive financial services to meet the needs of businesses, professionals, agribusiness and consumers for the communities we serve,” concluded Doyle.
“Visalia Community Bank’s quality service standards, philosophies and corporate culture are consistent with those of Central Valley Community Bank. While the nation has seen a continuing
trend in bank consolidations through mergers and acquisitions in recent years, few of these ‘bank marriages’ promise a better fit than the marriage between Visalia Community Bank and Central Valley Community Bancorp,” stated Tom Beene, president and CEO of Visalia Community Bank.
“Over the past 35 years, Visalia Community Bank has provided exceptional community banking service of the highest caliber to residents and businesses, allowing successful growth in Tulare County. Central Valley Community Bank has likewise effectively and profitably grown throughout the San Joaquin Valley through branch expansion and the enhancement of banking products and services to fulfill customer demands,” Beene said.
Central Valley Community Bancorp trades on the NASDAQ stock exchange under the symbol CVCY and as of September 30, 2012 reported assets of $887,000,000. Central Valley Community Bank, headquartered in Fresno, California, was founded in 1979 and is the sole subsidiary of Central Valley Community Bancorp. Central Valley Community Bank currently operates 17 full service offices in Clovis, Fresno, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Sacramento, Stockton, and Tracy, California. Additionally, the Bank operates Commercial Real Estate Lending, SBA Lending and Agribusiness Lending Departments. Investment services are provided by Investment Centers of America and insurance services are offered through Central Valley Community Insurance Services LLC. Members of Central Valley Community Bancorp’s and the Bank’s Board of Directors are: Daniel N. Cunningham (Chairman), Sidney B. Cox, Edwin S. Darden, Jr., Daniel J. Doyle, Steven D. McDonald, Louis McMurray, William S. Smittcamp, Joseph B. Weirick and Wanda L. Rogers (Director Emeritus). More information about Central Valley Community Bancorp and Central Valley Community Bank can be found at www.cvcb.com, Facebook and Twitter.
Visalia Community Bank, headquartered in Visalia, California, reported assets as of September 30, 2012 of $200,373,000. Visalia Community Bank was founded in 1977 and operates five full service branch offices in Visalia and Exeter. Additional information about Visalia Community Bank can be found at www.vcb.com.
Central Valley Community Bancorp received a fairness opinion from Sandler O’ Neill + Partners, LP, and Downey Brand LLP served as legal advisor. Visalia Community Bank received advisory service and a fairness opinion from FIG Partners, LLC, and its legal counsel was King, Holmes, Paterno & Berliner.

The following came from the NORTH AMERICAN MEAT ASSOCIATION Lean Trimmings Newsletter and is an important read for North Coast producers doing direct marketing.
TOP 2013 RESTAURANT MENU TRENDS

The National Restaurant Association (NRA) released its “What’s Hot” culinary forecast of menu trends for 2013. The NRA surveyed more than 1,800 professional chefs, members of the American Culinary Federation (ACF), to find that children’s nutrition and local sourcing will continue to be the hottest trends on restaurant menus for the upcoming year.
The top 10 menu trends for 2013 include:
1. Locally-sourced meats and seafood
2. Locally-grown produce
3. Healthful kids’ meals
4. Environmental sustainability as a culinary theme
5. Children’s nutrition as a culinary theme
6. New cuts of meat (e.g., Denver steak, pork flat iron, teres major)
7. Hyper-local sourcing (e.g., restaurant gardens)
8. Gluten-free cuisine
9. Sustainable seafood
10. Whole grain items in kids’ meals
Not making the top 10 but in the top 13 was Farm/Ranch/Estate branding.
Also included in the surveys were questions about other restaurant trends. More than half (55 percent) of the chefs surveyed said they always make efforts to adjust dishes and recipes to be more healthful, while 37 percent said they cook with nutrition in mind, but that not all recipes are easily adjusted. When asked how to best handle the increasing cost of ingredients, 32 percent of the chefs said changing menus, 25 percent said adjusting plate composition, and 24 percent said exploring new sourcing options. Only four percent said that raising menu prices is the best strategy. The survey can be viewed at http://www.restaurant.org/pdfs/research/WhatsHotFood2013.pdf.

California rainfall totals have varied widely  in the state for the past 30 days.Beneficial rain has soaked Northern California helping to fill the state’s big reservoirs that help feed the more arid part of the state. Those totals exceed 200% in some areas.

Meanwhile in the Sierra2thesea reading area rainfall totals are below normal with Tulare County at around 75%( orange on map) and Kern below that( red). Still the storm door appears to be open for the rest of December with snowpack expected to build in the Central Valley portions of the Sierra.

San Luis Obispo County appears to be mostly ahead of normal.

Container traffic gets boost from added service lines

December 13, 2012

Container volumes at the Port of Long Beach rose steeply in November with imports up 20.2 percent and exports up 24.6 percent compared to the same period a year ago.

Port terminals handled 555,513 twenty-foot equivalent container units (TEUs) overall, an increase of 20.8 percent from November 2011.

The rise in container traffic came as more ocean carriers added services to Long Beach in recent months, including CMA CGM and MSC, two of the world’s largest container shipping companies.

Import container traffic rose to 278,534 TEUs, the highest November volume in five years. Export container traffic rose to 138,312 TEUs, the second highest November volume in five years. Empty container volumes rose 18.4 percent from a year ago to 138,667 TEUs. With imports exceeding exports, empty containers are sent overseas to be refilled with goods.

After mostly declining traffic in the middle of the year, the late boost has helped bring Port cargo volumes closer to 2011 levels. For the first 11 months of the year, imports are virtually flat compared to the same period a year ago, down 0.3 percent, and exports are up 2 percent. Overall container volumes are down 1.2 percent through November due mainly to a decline in empty container traffic, which is down 5.9 percent in the same period.

The Port of Long Beach continues to invest long term. It is two years into a decade-long, $4.5 billion program to upgrade its facilities.

webcam shot  this morning (click to view)

The unseasonably warm temps we have been seeing in California this fall are over today as snow is falling at low elevations in the southern Sierra including the Grapevine this AM.
Ski resorts up and down the Sierra have experienced good snowfall at the higher elevations but ‘nada’ down below -at the base  of the resort.
Such is the case at Central California favorite China Peak above Fresno who are celebrating this morning with 15 inches of new snow and more on the way.
“This storm parked itself on China Peak for hours, dropping way more snow than originally expected. Skies are clear this morning, and should remain that way until Sunday, when another wave of snow hits us, then again on Tuesday, then again on Thursday … WINTER IS HERE!” says their website.

The colder average temps also enable the resort to fill spots with their snow making equipment opening more lifts.
If it is snowing at China Peak farmers are happy too with with the increasing snowpack to deliver water down the hill this coming summer.
Central Sierra water year is about 137% of average according to the state with a series of storms coming to California between now and Christmas say forecasters.N California water year is even better at about 200% of average.
NWS says” cooler than average temperatures are expected for the rest of this week.”
Up at Lodgepole above Visalia the forecast calls for more snow as well.
Great time to visit Yosemite (see webcam pic of this morning,wow!)with snow expected on the Yosemite Valley floor for up to four of the next five days.

Saputo Inc. announced this week that it has signed a definitive agreement to acquire Morningstar Foods, a subsidiary of Dean Foods Company. The acquisition includes the Tulare plant. Canada-based Saputo already has three plants in Tulare. Morningstar produces a variety of dairy and non-dairy extended shelf-life products, including creams and creamers, ice cream mixes, whipping cream, aerosol whipped toppings, iced coffee, half and half, value-added milks, as well as cultured products such as sour cream and cottage cheese. Saputo purchased the company for $1.45 billion. Morningstar has ten plants and some 2000 employees.The deal is set to close this month. Sources says they believe the Tulare operation will be unaffected.

 

What has been describes as a mammoth winter storm fed by a river of  atmospheric moisture served up several doses of a tropical deluge into Northern and Central California from November 27 to December 2. From a line north of Modesto in the Valley and SLO on the Coast –  precipitation totals were impressive particularly in foothill and mountain areas.

South of that line it was more spotty with Valley floor cities like Visalia  and Fresno receiving around an inch.

Hardest hit was Northern California where the state’s extensive hydraulic system originates and flows south to supply 23 million people,billions of dollars worth of farms and a thirsty ecosystem.

The headwater of this Central Valley Project is at Shasta reservoir that received nearly 15 inches of rain from December 27 through December 2. Mt Shasta snowfall may have set a record ( the numbers are not in yet). All this will flow south to supply next summer’s irrigation,drinking  and habitat water.

The NWS Hanford says the 3-day rainfall totals through Dec 2 for Friant Dam reached 1.80 in,nearly 6 in at Mariposa, 5.4 in at North Fork, 3.62 in at Trimmer near Pine Flat, 8.6 in at Wawona in Yosemite, 6.7 in at Kaiser Point above Huntington,5.3 in at Tamarack and 3.68 in at Huntington Lake.

On the Kaweah, 3.37in were received at Lake Kaweah, Hockett Meadow got 3.50 in and a five day total at Farewell Gap shows 4 in of water content. South of there. it was very light with a 3-day total at Quaking Aspen shows they got just 0.17

On the Coast the Santa Lucia mountain range was in the eye of the storm receiving 21 in of rain at the 4600 ft level above Big Sur. SLO forecaster John Lindsey reports today on five-day totals for Wednesday through Sunday of 3.37 inches in San Luis Obispo, 8.54 in at a very wet Rocky Butte and 3.68 in at Santa Margarita. Morro Bay got 1.22 in and Los Osos 1.5 in.

Forecaster Alan Fox who predicted these big storms, says despite a drying off period and smaller rain events in the next few days the storm doors are wide open in California and look for another round of wet weather from around December 17 through Christmas. Fox says California will experience a wet winter through most of the state. In an August 2012 Citrograph article, Fox predicted December and January would be rainy.

If it was rainy it was a warm rain and snow did not fall below 8000 ft in many locations over this weekend. Ski resort China Peak,above Fresno is not open Dec 3 despite getting ” 2 to 3 feet” at their higher elevations because of a lack of snow at their base.

Fresno broke a record December 1 when the minimum temp recorded was 56 degrees that night says NWS.

Avenal Power Project Gets New Hearing

The California Energy Commission is expected  to OK a petition to build the long awaited Avenal Power plant,a 600MW natural gas fired power facility just east of I-5 at their January 9 meeting.The plant sits in the city limits of Avenal,California.

This month the Energy Commission staff reviewed the petition and assessed the impacts of the proposed modifications on environmental quality, safety and public health. “Energy Commission staff supports the proposed modifications along with staff recommended changes to the project” expected to lower emissions of concern from the original plan and  says it” will not result in a significant adverse direct or cumulative impact to the environment.”

The move to refile the project plan with lower emissions is seen as a way to sidestep entanglement with the EPA and a lawsuit against the EPA that has tied this project up for years. Environmental Justice advocates have criticized the project since it is close to Kettleman City.

California Average Gas Price Drops $1 Since Mid October

California’s skittish gas prices climbed overnight by 50 cents in September but have now plunged nearly $1 a gallon since October 11 says website Gas Buddy. The average price is now $3.70,down from a high of $4.67. Stations were quick to go up and slow to go down ,no surprise.The cheapest price for gas in the state is now down to $3.23 per gallon around Lodi. In Fresno AAA says the average price as of November 26 was $3.67, the same price for that date a year ago. The cheapest around Tulare County,$3.49 at a number of Tulare locations.Around SLO the best we get is $3.79.

Food Processor Olam Denies Financial Problems

Singapore based Olam Int has denied a report it faces financial insolvency. The company has several large food processing operations in the Central Valley. Olam International Ltd. this week rebutted a research report by Muddy Waters LLC and said it faces no risk of insolvency.
Olam has “sufficient liquidity” to fund its current business as well as future investment plans, the company said in a statement to Singapore Exchange.

 

New Delano Citrus Plant Uses Green Energy
Nov. 16, 2012 In Delano , Paramount Citrus celebrated the grand opening of its new citrus packinghouse, which will be home to the company’s sweet, seedless, E-Z peel™ Cuties® California Mandarins. The facility measures in at more than 640,000 square feet – the equivalent of 11 football fields under roof – making it the world’s largest citrus packinghouse. The new plant employs 500.
Among its innovations – Half of the power used at the Cuties® Plant will come from “green energy” generation. On the roof is a 2.7MW solar plant which will generate 15 percent of the power for the Cuties® Plant, making it one of the largest customer-owned rooftop solar plants in the U.S. Additionally, a 1.6MW fuel cell, which produces electricity from natural gas with no combustion, will supply a further 35 percent of the power required to run the facility.
Paramount opened a new packinghouse in Delano, Calif., on Nov. 16 that has the capacity to pack 800,000 3-pound bags of Cuties daily.

The company is owned by Stewart Resnick who was on hand for the ribbon cutting.

Middle California should get some nice precipitation in what could be a wet period for a week in some areas. Next weekend will likely bring potentially heavy Sierra snowfall say multiple weather forecasters.
Accuweather’s Ken Clark on November 23 said ”this easily could be the wettest period there has been so far this season.”  He sets up this way.
”A  cold, upper level low develops over the east-central Pacific next week and sends into California and the Northwest a series of storms. The first comes inland on Wednesday. Rain is likely in northern California down to at least part of Central California Wednesday spreading to central areas probably later in the day and night. Much of this rain may not make it into southern California though a little is possible Wednesday night or Thursday morning.” This storm is said to be more tropical in nature.
SLO forecaster John Lindsey continues that   “A stronger and much wetter Gulf of Alaska storm system is forecast to move southwestward over San Luis Obispo County late Friday into next Saturday. This system is expected to produce fresh gale to possibly strong gale (39- to 54-mph) southeasterly winds along the coastline and moderate to heavy rain throughout San Luis Obispo County. Snow levels should remain above 6,000 feet.
NWS Hanford says rain is is likely at least Saturday with other days chances at 50% with the path of the storms in some flux.
The 10 day weather forecast for Sacramento has rain likely from Wednesday into the next week including Tuesday.
Tahoe’s Kirkwood ski report says to expect a” fire hose of moisture toward NorCal. The first of several mild, moist waves will ride in on this jet across NorCal starting late Thursday and continue through at least Sunday before there is a significant let up. The snow level will be high though with this nearly “Pineapple Express-like” pattern, peaking around 8000ft on Saturday. Eventually the offshore trough will push inland and bring with it some colder air to help drop the snow level to at least 6000ft if not lower Sunday into Monday. There should still be plenty of moisture available on Sunday to help dump a foot of more snow around the lake. Up the that point though Friday & Saturday we’re looking at mainly rain below 7000-7500ft, and lots of it. In the meantime though, the upper elevations, SW’ern facing Sierra slopes should receive several feet of wet/heavy snow (great for a base) before at least a couple more feet of lighter, more fluffy snow falls on top of it on Sunday.”

The state’s economic recovery, prior budget cuts, and the additional, temporary taxes provided by Proposition 30 have combined to bring California to a promising moment: the possible end of a decade of acute state budget challenges says the state Legislative Analyst’s office.
Our economic and budgetary forecast indicates that California’s leaders face a dramatically
smaller budget problem in 2013-14 compared to recent years. Furthermore, assuming steady
economic growth and restraint in augmenting current program funding levels, there is a strong
possibility of multibillion-dollar operating surpluses within a few years.

The Budget Forecast

Projected $1.9 Billion Budget Problem to Be Addressed by June 2013. The 2012-13 budget
assumed a year-end reserve of $948 million. Our forecast now projects the General Fund ending
2012-13 with a $943 million deficit, due to the net impact of (1) $625 million of lower revenues
in 2011-12 and 2012-13 combined, (2) $2.7 billion in higher expenditures (including $1.8 billion
in lower-than-budgeted savings related to the dissolution of redevelopment agencies), and (3) an
assumed $1.4 billion positive adjustment in the 2010-11 ending budgetary fund balance. We also
expect that the state faces a $936 million operating deficit under current policies in 2013-14. These
estimates mean that the new Legislature and the Governor will need to address a $1.9 billion
budget problem in order to pass a balanced budget by June 2013 for the next fiscal year.

Surpluses Projected Over the Next Few Years. Based on current law and our economic
forecast, expenditures are projected to grow less rapidly than revenues. Beyond 2013-14, we
therefore project growing operating surpluses through 2017-18—the end of our forecast period.
Our projections show that there could be an over $1 billion operating surplus in 2014-15,
growing thereafter to an over $9 billion surplus in 2017-18. This outlook differs dramatically
from the severe operating deficits we have forecast in November Fiscal Outlook reports over the
past decade.