Community 1st Bank Reports Results for the Quarter Ended June 30, 2014

AUBURN, Calif.--()--Community 1st Bank (OTCBB:CFBN), with $219.0 million in assets, today reported net income of $33 thousand for the quarter ended June 30, 2014.

James J. Kim, President and CEO commented, “The team at Community 1st Bank continues to win in our competitive marketplace as evidenced by 32% year-over-year loan growth and 8% growth in deposits! Our successes go beyond numbers as Community 1st Bank was named 2014 SBA Community Lender of the Year and 2014 Best of the Best Community Bank by the Auburn Journal. Such recognition is especially rewarding knowing it is the collective result of every member of our team exceeding their personal expectations and goals.”

Total assets at June 30, 2014 were $219.0 million, an increase of $16.0 million, or 7.9%, from June 30, 2013. Community 1st Bank (“the Bank”) was successful in growing non-interest bearing deposits from $45.6 million at June 30, 2013 to $50.1 million at June 30, 2014, an increase of $4.5 million, or 9.8%. Total deposits increased from $176.3 million at June 30, 2013 to $191.1 million at June 30, 2014, an increase of $14.8 million, or 8.4%. Total loans increased from $97.2 million at June 30, 2013 to $128.4 million at June 30, 2014, an increase of $31.3 million, or 32.2%. When compared to the previous quarter, total assets increased $2.0 million, or 0.9%, from $217.0 million at March 31, 2014. Loans increased by $3.7 million, or 3.0%, from $124.7 million at March 31, 2014. Total deposits decreased by $3.6 million, or 1.9%, from $194.7 million at March 31, 2014.

Operating Results - Quarter

The Bank reported net income for the quarter ended June 30, 2014 of $33 thousand, which includes several non-recurring charges totaling approximately $70 thousand, $50 thousand in provision for loan losses, and gain on sales of securities of $11 thousand. This compares to net income of $173 thousand for the same period in 2013, which included $100 thousand in provision for loan losses and gain on sales of securities of $120 thousand. Net income decreased by $140 thousand, while the provision for loan losses decreased by $50 thousand and gain on sales of securities decreased by $109 thousand compared to the second quarter of 2013.

Interest income increased by $132 thousand, or 7.8%, to total $1.8 million for the quarter ended June 30, 2014 compared to the same period in 2013. The growth in interest income is driven by the growth in the loan portfolio, more than offsetting the decrease in interest income on investment securities. Interest expense increased by $34 thousand, or 17.5%, to total $228 thousand for the quarter ended June 30, 2014 compared to the same period in 2013. Net interest income increased by $98 thousand, or 6.6%, for the second quarter of 2014 compared to the same period in 2013.

Operating Results - Year

The Bank reported net income for the six month period ended June 30, 2014 of $144 thousand, which includes $50 thousand in provision for loan losses and losses on sales of securities of $8 thousand. This compares to net income of $587 thousand for the same period in 2013, which included $210 thousand in provision for loan losses and gains on sales of securities of $453 thousand. Net income decreased by $443 thousand, while the provision for loan losses decreased by $160 thousand and gains on sales of securities decreased by $461 thousand as compared to the six month period ended June 30, 2013.

Interest income increased by $219 thousand, or 6.4%, to total $3.6 million for the six month period ended June 30, 2014 compared to the same period in 2013. Interest expense increased by $15 thousand, or 3.4%, to total $453 thousand for the six month period ended June 30, 2014 compared to the same period in 2013. Net interest income increased by $204 thousand, or 6.9%, for the six month period ended June 30, 2014 compared to the same period in 2013. Non-interest expense increased by $350 thousand, or 12.3%, to total $3.2 million for the six month period ended June 30, 2014 compared to the same period in 2013.

Credit Quality

The allowance for loan losses at June 30, 2014 was $2.4 million, or 1.8% of gross loans, compared to $2.3 million, or 1.8% of gross loans at March 31, 2014 and $2.2 million, or 2.3% of gross loans at June 30, 2013. Loan charge-offs for the quarter ended June 30, 2014 were $2 thousand with recoveries of $25 thousand compared to loan charge-offs of $3 thousand with recoveries of $1 thousand for the same period in 2013. Nonperforming loans at June 30, 2014 were $4.3 million, or 2.0% of total assets, an increase of $2.8 million, or 185.5%, from June 30, 2013. The increase in nonperforming loans was due to one relationship which the Bank is currently in process of resolving. Nonperforming loans decreased by $320 thousand, or 6.9%, from $4.7 million at March 31, 2014.

Capital

The Bank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 10.0%, Tier 1 Risk-based Capital ratio of 14.6% and Total Risk-based Capital ratio of 15.8% at June 30, 2014. At June 30, 2013 the Tier 1 Leverage ratio was 10.7%, the Tier 1 Risk-based Capital ratio was 15.6% and the Total Risk-based Capital ratio was 16.8%. The Bank’s capital is in excess of that required to be considered “well-capitalized” by regulatory standards.

James J. Kim, President and Chief Executive Officer, commented, “The Bankers at Community 1st Bank have transformed our balance sheet over the last couple of years. We look forward to leveraging that balance sheet into increased earnings and return for our shareholders.”

Community 1st Bank is headquartered in Auburn, California, with branches in Roseville and Auburn and a loan production office in Sacramento, California. Community 1st Bank offers a wide range of business and consumer deposit products including remote deposit capture, health savings accounts, online banking, mobile banking and cash management services. The Bank also offers a full complement of loan products, including commercial, consumer, and real estate loans. For more information about the Bank, visit the Bank’s website at www.community1bank.com.

Forward-Looking Statements

Statements concerning future performance, developments or events, expectations for growth and income forecasts, and any other guidance on future periods, constitute forward-looking statements that are subject to a number of risks and uncertainties. Actual results may differ materially from stated expectations. Specific factors include, but are not limited to, loan production, competitive pressure in the banking industry, balance sheet management, net interest margin variations, the ability to control costs and expenses, changes in the interest rate environment and financial policies of the United States government and general economic conditions. The Bank disclaims any obligation to update any such factors.

           
COMMUNITY 1ST BANK
BALANCE SHEETS
 

June 30, 2014

December 31, 2013

June 30, 2013
(Unaudited) (Unaudited)
ASSETS
Cash and cash equivalents $ 19,211,000 $ 4,719,000 $ 3,985,000
Federal funds sold 648,000 - 600,000
Available-for-sale investment securities, at fair value 61,080,000 80,665,000 92,475,000

Loans, less allowance for loan losses of $2,356,000 at June 30, 2014, $2,710,000 at December 31, 2013 and $2,225,000 at June 30, 2013

126,076,000 113,679,000 94,941,000
Bank premises and equipment, net 1,549,000 1,559,000 1,598,000
Interest receivable 472,000 606,000 549,000
Other real estate owned 793,000 870,000 890,000
Federal Home Loan Bank stock and other securities 1,576,000 1,555,000 1,590,000
Bank-owned life insurance policies 4,754,000 4,675,000 4,589,000
Other assets   2,853,000   3,229,000   1,781,000
 
Total assets $ 219,012,000 $ 211,557,000 $ 202,998,000
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 50,103,000 $ 52,727,000 $ 45,621,000
Interest bearing   140,975,000   133,575,000   130,667,000
 
Total deposits 191,078,000 186,302,000 176,288,000
 
Borrowings - 3,365,000 -
Interest payable and other liabilities   6,022,000   605,000   5,628,000
 
Total liabilities 197,100,000 190,272,000 181,916,000
 
Shareholders' equity   21,912,000   21,285,000   21,082,000
 
Total liabilities and shareholders' equity $ 219,012,000 $ 211,557,000 $ 202,998,000
 
       
COMMUNITY 1ST BANK
STATEMENTS OF INCOME DATA (Unaudited)
For the Three Months Ended June 30, 2014 and 2013
 
2014 2013
Interest income:
Interest and fees on loans $ 1,538,000 $ 1,259,000

Interest on investment securities and interest-bearing deposits in other financial institutions

  283,000     430,000
 
Total interest income   1,821,000     1,689,000
 
Interest expense:
Deposits 228,000 192,000
Borrowings   -     2,000
 
Total interest expense   228,000     194,000
 
Net interest income 1,593,000 1,495,000
 
Provision for loan losses   50,000     100,000
 
Net interest income after provision for loan losses   1,543,000     1,395,000
 
Non-interest income:
Service charges and fees 14,000 17,000
Gain on sales of available-for-sale investment securities 11,000 120,000
Other   98,000     93,000
 
Total non-interest income   123,000     230,000
 
Non-interest expense:
Salaries and employee benefits 899,000 747,000
Occupancy and equipment 139,000 152,000
Other   595,000     553,000
 
Total non-interest expense   1,633,000     1,452,000
 
Net income $ 33,000   $ 173,000
 
Net income $ 33,000 $ 173,000
Preferred stock dividends and accretion of discount   35,000     35,000
 
Net (loss) income available to common shareholders $ (2,000 ) $ 138,000
 
Common Share Data
Basic (loss) earnings per share $ (0.00 ) $ 0.03
Diluted (loss) earnings per share $ (0.00 ) $ 0.02
 
Weighted average shares outstanding 5,449,242 5,449,242
Weighted average shares outstanding - diluted 6,481,153 6,469,302
 
       
COMMUNITY 1ST BANK
STATEMENT OF OPERATIONS DATA (Unaudited)
For the Six Months Ended June 30, 2014 and 2013
 
2014 2013
Interest income:
Interest and fees on loans $ 3,010,000 $ 2,469,000

Interest on investment securities and interest-bearing deposits in other financial institutions

  616,000     938,000
 
Total interest income   3,626,000     3,407,000
 
Interest expense:
Deposits 453,000 434,000
Borrowings   -     4,000
 
Total interest expense   453,000     438,000
 
Net interest income 3,173,000 2,969,000
 
Provision for loan losses   50,000     210,000
 
Net interest income after provision for loan losses   3,123,000     2,759,000
 
Non-interest income:
Service charges and fees 30,000 33,000
(Loss) gain on sales of available-for-sale investment securities (8,000 ) 453,000
Other   193,000     186,000
 
Total non-interest income   215,000     672,000
 
Non-interest expense:
Salaries and employee benefits 1,763,000 1,466,000
Occupancy and equipment 278,000 292,000
Other   1,153,000     1,086,000
 
Total non-interest expense   3,194,000     2,844,000
 
 
Net income $ 144,000   $ 587,000
 
 
Net income $ 144,000 $ 587,000
Preferred stock dividends and accretion of discount   70,000     68,000
 
Net income available to common shareholders $ 74,000   $ 519,000
 
 

Common Share Data

Basic earnings per share

$ 0.01 $ 0.10

Diluted earnings per share

$ 0.01 $ 0.08

 

Weighted average shares outstanding

5,449,242 5,449,242

Weighted average shares outstanding - diluted

6,485,325 6,468,772
 

Contacts

Community 1st Bank
James J. Kim, 530-863-4803
President & Chief Executive Officer
Fax: (530) 863-4849

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Contacts

Community 1st Bank
James J. Kim, 530-863-4803
President & Chief Executive Officer
Fax: (530) 863-4849