Community 1st Bancorp Reports Results for the Quarter Ended June 30, 2017

AUBURN, Calif.--()--Community 1st Bancorp (OTC markets: CFBN), with $391 million in assets, today reported net income of $532 thousand, or $0.08 per diluted share, for the quarter ended June 30, 2017 compared to $292 thousand, or $0.04 per diluted share, for the quarter ended June 30, 2016. Community 1st Bancorp (the “Company”) reported net income for the six months ended June 30, 2017 of $934 thousand, or $0.14 per diluted share, compared to $537 thousand, or $0.08 per diluted share for the six months ended June 30, 2016.

James J. Kim, President and CEO commented, “We are pleased to announce strong growth for the first half of the 2017 fiscal year with year-over-year growth in non-interest bearing deposits of 31.5%, total deposit growth of over 24.2%, and loan growth of over 23.7%, far out-pacing the industry growth rates.”

Total assets at June 30, 2017 were $390.7 million, representing an increase of $73.6 million, or 23.2%, from $317.0 million at June 30, 2016. The Company was successful in growing loans by $42.2 million, or 23.7%, from $178.2 million at June 30, 2016 to $220.4 million at June 30, 2017. Non-interest bearing deposits grew by $31.0 million, or 31.5%, from $98.4 million at June 30, 2016 to $129.4 million at June 30, 2017. Total deposits increased by $69.3 million, or 24.2%, from $286.6 million at June 30, 2016 to $355.9 million at June 30, 2017. Total assets increased by $32.1 million from $358.6 million at December 31, 2016, and loans increased by $11.3 million from $209.1 million at December 31, 2016. Total deposits increased by $30.0 million, from $325.9 million at December 31, 2016 and non-interest bearing deposits increased by $13.4 million, from $116.0 million at December 31, 2016.

Operating Results - Quarter

Net income was $532 thousand for the quarter ended June 30, 2017 compared to $292 thousand for the quarter ended June 30, 2016. During the quarter ended June 30, 2017, the Company’s net interest income was $2.9 million compared to $2.2 million for the quarter ended June 30, 2016. The Company recorded a provision for loan losses of $25 thousand, non-interest income was $135 thousand, and non-interest expense was $2.2 million for the quarter ended June 30, 2017, compared to zero provision for loan losses, non-interest income was $138 thousand, and non-interest expense was $1.8 million for the quarter ended June 30, 2016.

Interest income totaled $3.4 million for the quarter June 30, 2017, representing an increase of $897 thousand when compared to $2.5 million for the quarter ended June 30, 2016. Interest expense totaled $496 thousand for the quarter ended June 30, 2017, representing an increase of $107 thousand over the $389 thousand for the quarter ended June 30, 2016. Net interest income was $2.9 million for the quarter ended June 30, 2017, compared to $2.2 million for the same period in 2016. The net interest margin for the quarter ended June 30, 2017 was 3.28% compared to 2.95% for the quarter ended June 30, 2016, representing an increase of 33 basis points.

Operating Results - Year

The Company reported net income for the six month period ended June 30, 2017 of $934 thousand, or $0.14 per diluted share, which includes a provision for loan losses of $120 thousand. This compares to net income of $537 thousand for the same period in 2016, which includes no provision for loan losses. Net interest income was $5.6 million for the six month period ended June 30, 2017, an increase of $1.5 million, or 36.0%, compared to $4.2 million for the same period ended June 30, 2016. Non-interest income was $274 thousand for the six month period ended June 30, 2017, compared to $265 thousand for the same period ended June 30, 2016. Non-interest expense increased by $617 thousand, or 17.2%, to total $4.2 million for the six month period ended June 30, 2017 compared to $3.6 million for the same period in 2016.

Interest income increased by $1.7 million, or 35.0%, to total $6.6 million for the six month period ended June 30, 2017, compared to $4.9 million for the same period in 2016. Total interest expense increased by $228 thousand, or 30.0%, to total $989 thousand for the six month period ended June 30, 2017 compared to $761 thousand for the same period in 2016, as the Company raised another $3.0 million of subordinated debentures. Net interest income increased by $1.5 million, or 36.0%, for the six month period ended June 30, 2017 compared to the same period in 2016. The net interest margin for the six month period ended June 30, 2017 was 3.20%, representing an increase of 19 basis points from 3.01% for the six month period ended June 30, 2016.

Credit Quality

The allowance for loan losses at June 30, 2017 was $3.1 million, or 1.41% of gross loans, compared to $2.8 million, or 1.54% of gross loans at June 30, 2016. The Company provided $120 thousand to its allowance for loan and lease losses, it had loan charge-offs of $11 thousand and recoveries totaled $5 thousand for the six month period ended June 30, 2017, compared to no provision, loan charge-offs of zero with recoveries of $10 thousand for the same period in 2016. Nonperforming loans at June 30, 2017 were $256 thousand, or 0.07% of total assets, compared to $725 thousand, or 0.23% of total assets at June 30, 2016. Other real estate owned at June 30, 2017 was $248 thousand as the Company was able to sell its largest property with a gain of $112 thousand, and then wrote down the last OREO property by $151 thousand. OREO totaled $4.0 million at June 30, 2016.

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 10.6%, Tier 1 Leverage ratio of 7.3%, Tier 1 Capital ratio of 10.6% and Total Capital ratio of 14.9% at June 30, 2017. The Bank’s capital ratios were Common Equity Tier 1 ratio of 13.6%, Tier 1 Leverage ratio of 9.2%, Tier 1 Capital ratio of 13.6% and Total Capital ratio of 14.8% at June 30, 2017.

James J. Kim, President and Chief Executive Officer, commented, “We are very pleased with the strong improvement to earnings. We strive to continue the strong earnings trend by continued balance sheet growth through our new Sacramento office and by leveraging the recently issued subordinated debt.”

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
         
 
6/30/17     12/31/16*     6/30/16
(Unaudited) (Unaudited)
ASSETS
Cash and cash equivalents $ 36,152,000 $ 20,001,000 $ 35,239,000
Federal funds sold 3,747,000 1,914,000 2,294,000
Available-for-sale investment securities, at fair value 120,595,000 114,310,000 88,570,000

Loans, less allowance for loan losses of $3,100,000 at June 30, 2017, $2,986,000 at December 31, 2016 and $2,752,000 at June 30, 2016

217,303,000 206,156,000 175,477,000
Bank premises and equipment, net 1,764,000 1,778,000 1,434,000
Interest receivable 985,000 941,000 753,000
Other real estate owned 248,000 3,559,000 4,009,000
Federal Home Loan Bank stock and other securities 2,116,000 1,368,000 1,368,000
Bank-owned life insurance policies 5,208,000 5,136,000 5,061,000
Other assets   2,558,000       3,421,000       2,837,000
 
Total assets $ 390,676,000     $ 358,584,000     $ 317,042,000
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Non-interest bearing $ 129,370,000 $ 115,950,000 $ 98,381,000
Interest bearing   226,550,000       209,945,000       188,210,000
 
Total deposits 355,920,000 325,895,000 286,591,000
 
Subordinated debentures 7,850,000 7,841,000 4,896,000
Interest payable and other liabilities   761,000       600,000       611,000
 
Total liabilities 364,531,000 334,336,000 292,098,000
 
Shareholders' equity   26,145,000       24,248,000       24,944,000
 
Total liabilities and shareholders' equity $ 390,676,000     $ 358,584,000     $ 317,042,000
 
 
*Derived from audited Consolidated Financial Statements
 
           
COMMUNITY 1ST BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
 
For the Three Months Ended: For the Six Months Ended:
6/30/17   3/31/17   6/30/16 6/30/17   6/30/16
Interest income:
Interest and fees on loans $ 2,686,000 $ 2,515,000 $ 2,074,000 $ 5,201,000 $ 4,097,000

 

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

  757,000     679,000     472,000   1,436,000     818,000
 
Total interest income   3,443,000     3,194,000     2,546,000   6,637,000     4,915,000
 
Interest expense:
Deposits 351,000 338,000 287,000 689,000 556,000
Subordinated debentures   145,000     155,000     102,000   300,000     205,000
 
Total interest expense   496,000     493,000     389,000   989,000     761,000
 
Net interest income 2,947,000 2,701,000 2,157,000 5,648,000 4,154,000
 
Provision for loan losses   25,000     95,000     -   120,000     -
 
Net interest income after provision for loan losses   2,922,000     2,606,000     2,157,000   5,528,000     4,154,000
 
Non-interest income:
Service charges and fees 16,000 18,000 19,000 34,000 32,000
Other   119,000     121,000     119,000   240,000     233,000
 
Total non-interest income   135,000     139,000     138,000   274,000     265,000
 
Non-interest expense:
Salaries and employee benefits 1,057,000 1,027,000 972,000 2,084,000 1,896,000
Occupancy and equipment 194,000 208,000 205,000 402,000 332,000
Other   915,000     807,000     655,000   1,722,000     1,363,000
 
Total non-interest expense   2,166,000     2,042,000     1,832,000   4,208,000     3,591,000
 
Net income before income taxes $ 891,000 $ 703,000 $ 463,000 $ 1,594,000 $ 828,000
Provision for taxes   359,000     301,000     171,000   660,000     291,000
Net income $ 532,000   $ 402,000   $ 292,000 $ 934,000   $ 537,000
 
 
Common Share Data
Basic earnings per share $ 0.08 $ 0.06 $ 0.04 $ 0.14 $ 0.08
Diluted earnings per share $ 0.08 $ 0.06 $ 0.04 $ 0.14 $ 0.08
 
Weighted average shares outstanding 6,524,741 6,524,741 6,524,741 6,524,741 6,522,754
Weighted average shares outstanding - diluted 6,630,666 6,609,775 6,533,694 6,621,665 6,530,378

Contacts

Community 1st Bancorp
James J. Kim, 530-863-4803
President & Chief Executive Officer
Fax: 530-863-4849
or
Kevin R. Watson, 530-863-4815
Executive Vice President & Chief Financial Officer
Fax: 530-863-4849

Contacts

Community 1st Bancorp
James J. Kim, 530-863-4803
President & Chief Executive Officer
Fax: 530-863-4849
or
Kevin R. Watson, 530-863-4815
Executive Vice President & Chief Financial Officer
Fax: 530-863-4849