AUBURN, Calif.--(BUSINESS WIRE)--Community 1st Bancorp (OTCBB: CFBN), with $317 million in assets, today reported net income of $292 thousand, or $0.04 per diluted share, for the quarter ended June 30, 2016 compared to $326 thousand, or $0.05 per diluted share, for the quarter ended June 30, 2015. Community 1st Bancorp (the “Company”) reported net income for the six months ended June 30, 2016 of $537 thousand, or $0.08 per diluted share, compared to $616 thousand, or $0.09 per diluted share for the six months ended June 30, 2015.
James J. Kim, President and CEO commented, “We are pleased to announce strong growth for the first half of the 2016 fiscal year with year-over-year growth in non-interest bearing deposits of 66.5%, total deposit growth of over 38%, and loan growth of over 15%, far out pacing the industry growth rates.”
Total assets at June 30, 2016 were $317.0 million, representing an increase of $85.4 million, or 36.9%, from $231.6 million at June 30, 2015. The Company was successful in growing loans by $23.8 million, or 15.4%, from $154.4 million at June 30, 2015 to $178.2 million at June 30, 2016. Non-interest bearing deposits grew by $39.3 million, or 66.5%, from $59.1 million at June 30, 2015 to $98.4 million at June 30, 2016. Total deposits increased by $79.5 million, or 38.4%, from $207.1 million at June 30, 2015 to $286.6 million at June 30, 2016. When comparing the June 30, 2016 balances to the previous quarter ended March 31, 2016, total assets increased from $298.0 million at March 31, 2016, representing an increase of $19.0 million and loans increased from $164.7 million at March 31, 2016, representing an increase of $13.5 million. Total deposits increased by $18.3 million, from $268.3 million at March 31, 2016 and non-interest bearing deposits increased by $14.5 million, from $83.9 million at March 31, 2016.
Operating Results - Quarter
Net income was $292 thousand for the quarter ended June 30, 2016 compared to $326 thousand for the quarter ended June 30, 2015. During the quarter ended June 30, 2016, the Company’s net interest income was $2.157 million compared to $1.942 million for the quarter ended June 30, 2015. Net income and net interest income for the quarter ended June 30, 2016 was impacted by interest expense on subordinated debt of $102 thousand. The Company did not record a provision for loan losses and non-interest income was $138 thousand for the quarter ended June 30, 2016, compared to zero provision for loan losses and $126 thousand in non-interest income which included gains on sale of loans of $99 thousand, and losses on sale of securities of $96 thousand. For the quarter ended June 30, 2016, non-interest expense was $288 thousand over last year’s numbers of $1.544 million impacted by the opening of the new full service branch in Sacramento.
Interest income totaled $2.55 million for the quarter June 30, 2016, representing an increase of $381 thousand when compared to $2.17 million for the quarter ended June 30, 2015. Interest expense totaled $389 thousand for the quarter ended June 30, 2016, representing an increase of $166 thousand over the $223 thousand for the quarter ended June 30, 2015. Net interest income was $2.157 million for the quarter ended June 30, 2016, compared to $1.942 million for the same period in 2015. The net interest margin for the quarter ended June 30, 2016 was 3.36% compared to June 30, 2015 of 3.77% representing a decrease of 41 basis points. The decrease in net interest margin was driven by the increase in subordinated debentures.
Operating Results - Year
The Company reported net income for the six month period ended June 30, 2016 of $537 thousand, or $0.08 per diluted share, which includes no provision for loan losses. This compares to net income of $616 thousand for the same period in 2015, which includes no provision for loan losses, gain on the sale of loans for $163 thousand and losses on sale of securities of $96 thousand. Net interest income was $4.2 million for the six month period ended June 30, 2016, an increase of $347 thousand, or 9.1%, compared to $3.8 million for the same period ended June 30, 2015. Non-interest income was $265 thousand for the six month period ended June 30, 2016, compared to $316 thousand for the same period ended June 30, 2015. Non-interest expense increased by $478 thousand, or 15.4%, to total $3.6 million for the six month period ended June 30, 2016 compared to $3.1 million for the same period in 2015.
Interest income increased by $670 thousand, or 15.8%, to total $4.9 million for the six month period ended June 30, 2016, compared to $4.2 million for the same period in 2015. Interest expense increased by $323 thousand, or 73.7%, to total $761 thousand for the six month period ended June 30, 2016 compared to $438 thousand for the same period in 2015. Net interest income increased by $347 thousand, or 9.1%, for the six month period ended June 30, 2016 compared to the same period in 2015. The net interest margin for the six month period ended June 30, 2016 was 3.47%, representing a decrease of 22 basis points from 3.69% for the six month period ended June 30, 2015. The increase in interest expense and resulting decrease in net interest margin was driven by the increase in subordinated debentures.
Credit Quality
The allowance for loan losses at June 30, 2016 was $2.8 million, or 1.54% of gross loans, compared to $2.7 million, or 1.8% of gross loans at June 30, 2015. Loan charge-offs totaled zero and recoveries totaled $10 thousand for the six month period ended June 30, 2016, compared to loan charge-offs of $79 thousand with recoveries of $302 thousand for the same period in 2015. Nonperforming loans at June 30, 2016 were $725 thousand, or 0.23% of total assets, compared to $252 thousand, or 0.11% of total assets. Other real estate owned at June 30, 2016 was $4.0 million compared to June 30, 2015 of $4.1 million.
Capital
The Company and Community 1st Bank (the “Bank”) continue to maintain a strong capital position under Basel III. The Company’s capital ratios were Common Equity Tier 1 ratio of 11.8%, Tier 1 Leverage ratio of 8.1%, Tier 1 Capital ratio of 11.8% and Total Capital ratio of 15.3% at June 30, 2016. The Bank’s capital ratios were Common Equity Tier 1 ratio of 13.9%, Tier 1 Leverage ratio of 9.5%, Tier 1 Capital ratio of 13.9% and Total Capital ratio of 15.2% at June 30, 2016.
James J. Kim, President and Chief Executive Officer, commented, “With our new Sacramento office, we anticipate continued balance sheet growth. Although the new office and interest expense on subordinated debt impacted current earnings, we anticipate a short payback period and a strong return on our investment in the very near term.”
Community 1st Bancorp is headquartered in Auburn, California, with branches in Sacramento, Roseville and Auburn. The 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 BANCORP | |||||||||||||||||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||||||
| 6/30/16 | 12/31/15* | 6/30/15 | |||||||||||||||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||
| Cash and cash equivalents | $ | 35,239,000 | $ | 27,684,000 | $ | 11,273,000 | |||||||||||||||||||
| Federal funds sold | 2,294,000 | 2,590,000 | 1,158,000 | ||||||||||||||||||||||
| Available-for-sale investment securities, at fair value | 88,570,000 | 56,437,000 | 51,804,000 | ||||||||||||||||||||||
|
Loans, less allowance for loan losses of $2,752,000 at June 30, 2016, $2,742,000 at December 31, 2015 and $2,739,000 at June 30, 2015 |
|||||||||||||||||||||||||
| 175,477,000 | 161,611,000 | 151,692,000 | |||||||||||||||||||||||
| Bank premises and equipment, net | 1,434,000 | 1,397,000 | 1,373,000 | ||||||||||||||||||||||
| Interest receivable | 753,000 | 626,000 | 586,000 | ||||||||||||||||||||||
| Other real estate owned | 4,009,000 | 4,040,000 | 4,041,000 | ||||||||||||||||||||||
| Federal Home Loan Bank stock and other securities | 1,368,000 | 1,329,000 | 1,578,000 | ||||||||||||||||||||||
| Bank-owned life insurance policies | 5,061,000 | 4,986,000 | 4,909,000 | ||||||||||||||||||||||
| Other assets | 2,837,000 | 3,099,000 | 3,217,000 | ||||||||||||||||||||||
| Total assets | $ | 317,042,000 | $ | 263,799,000 | $ | 231,631,000 | |||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||
| Non-interest bearing | $ | 98,381,000 | $ | 65,655,000 | $ | 59,091,000 | |||||||||||||||||||
| Interest bearing | 188,210,000 | 168,581,000 | 147,999,000 | ||||||||||||||||||||||
| Total deposits | 286,591,000 | 234,236,000 | 207,090,000 | ||||||||||||||||||||||
| Subordinated debentures | 4,896,000 | 4,890,000 | - | ||||||||||||||||||||||
| Interest payable and other liabilities | 611,000 | 601,000 | 589,000 | ||||||||||||||||||||||
| Total liabilities | 292,098,000 | 239,727,000 | 207,679,000 | ||||||||||||||||||||||
| Shareholders' equity | 24,944,000 | 24,072,000 | 23,952,000 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 317,042,000 | $ | 263,799,000 | $ | 231,631,000 | |||||||||||||||||||
| *Derived from audited Consolidated Financial Statements | |||||||||||||||||||||||||
| COMMUNITY 1ST BANCORP | ||||||||||||||||||||||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) |
||||||||||||||||||||||||||||||||||||||
| For the Three Months Ended: | For the Six Months Ended: | |||||||||||||||||||||||||||||||||||||
| 6/30/16 | 3/31/16 | 6/30/15 | 6/30/16 | 6/30/15 | ||||||||||||||||||||||||||||||||||
| Interest income: | ||||||||||||||||||||||||||||||||||||||
| Interest and fees on loans | $ | 2,074,000 | $ | 2,023,000 | $ | 1,856,000 | $ | 4,097,000 | $ | 3,615,000 | ||||||||||||||||||||||||||||
| Interest on investment securities and interest- bearing deposits in other financial institutions | ||||||||||||||||||||||||||||||||||||||
| 472,000 | 346,000 | 309,000 | 818,000 | 630,000 | ||||||||||||||||||||||||||||||||||
| Total interest income | 2,546,000 | 2,369,000 | 2,165,000 | 4,915,000 | 4,245,000 | |||||||||||||||||||||||||||||||||
| Interest expense: | ||||||||||||||||||||||||||||||||||||||
| Deposits | 287,000 | 269,000 | 223,000 | 556,000 | 438,000 | |||||||||||||||||||||||||||||||||
| Subordinated debentures | 102,000 | 103,000 | - | 205,000 | - | |||||||||||||||||||||||||||||||||
| Total interest expense | 389,000 | 372,000 | 223,000 | 761,000 | 438,000 | |||||||||||||||||||||||||||||||||
| Net interest income | 2,157,000 | 1,997,000 | 1,942,000 | 4,154,000 | 3,807,000 | |||||||||||||||||||||||||||||||||
| Provision for loan losses | - | - | - | - | - | |||||||||||||||||||||||||||||||||
| Net interest income after provision for loan losses | 2,157,000 | 1,997,000 | 1,942,000 | 4,154,000 | 3,807,000 | |||||||||||||||||||||||||||||||||
| Non-interest income: | ||||||||||||||||||||||||||||||||||||||
| Service charges and fees | 19,000 | 13,000 | 12,000 | 32,000 | 24,000 | |||||||||||||||||||||||||||||||||
| Gain on sales of loans | - | - | 99,000 | - | 163,000 | |||||||||||||||||||||||||||||||||
| Loss on sales of available-for-sale investment securities | - | - | (96,000 | ) | - | (96,000 | ) | |||||||||||||||||||||||||||||||
| Other | 119,000 | 114,000 | 111,000 | 233,000 | 225,000 | |||||||||||||||||||||||||||||||||
| Total non-interest income | 138,000 | 127,000 | 126,000 | 265,000 | 316,000 | |||||||||||||||||||||||||||||||||
| Non-interest expense: | ||||||||||||||||||||||||||||||||||||||
| Salaries and employee benefits | 972,000 | 924,000 | 818,000 | 1,896,000 | 1,653,000 | |||||||||||||||||||||||||||||||||
| Occupancy and equipment | 205,000 | 127,000 | 150,000 | 332,000 | 285,000 | |||||||||||||||||||||||||||||||||
| Other | 655,000 | 708,000 | 576,000 | 1,363,000 | 1,175,000 | |||||||||||||||||||||||||||||||||
| Total non-interest expense | 1,832,000 | 1,759,000 | 1,544,000 | 3,591,000 | 3,113,000 | |||||||||||||||||||||||||||||||||
| Net income before income taxes | $ | 463,000 | $ | 365,000 | $ | 524,000 | $ | 828,000 | $ | 1,010,000 | ||||||||||||||||||||||||||||
| Provision for taxes | 171,000 | 120,000 | 198,000 | 291,000 | 394,000 | |||||||||||||||||||||||||||||||||
| Net income | $ | 292,000 | $ | 245,000 | $ | 326,000 | $ | 537,000 | $ | 616,000 | ||||||||||||||||||||||||||||
| Net income | $ | 292,000 | $ | 245,000 | $ | 326,000 | $ | 537,000 | $ | 616,000 | ||||||||||||||||||||||||||||
| Preferred stock dividends | - | - | 35,000 | - | 70,000 | |||||||||||||||||||||||||||||||||
| Net income available to common shareholders | $ | 292,000 | $ | 245,000 | $ | 291,000 | $ | 537,000 | $ | 546,000 | ||||||||||||||||||||||||||||
| Common Share Data | ||||||||||||||||||||||||||||||||||||||
| Basic earnings per share | $ | 0.04 | $ | 0.04 | $ | 0.05 | $ | 0.08 | $ | 0.10 | ||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.04 | $ | 0.04 | $ | 0.05 | $ | 0.08 | $ | 0.09 | ||||||||||||||||||||||||||||
| Weighted average shares outstanding | 6,524,741 | 6,520,768 | 5,494,937 | 6,522,754 | 5,494,937 | |||||||||||||||||||||||||||||||||
| Weighted average shares outstanding - diluted | 6,533,694 | 6,527,508 | 6,516,721 | 6,530,378 | 6,516,024 | |||||||||||||||||||||||||||||||||
