Community 1st Bank Reports Results for the Quarter Ended March 31, 2013
Community 1st Bank Reports Results for the Quarter Ended March 31, 2013
AUBURN, Calif.--(BUSINESS WIRE)-- Community 1st Bank (OTCBB: CFBN), with $194.0 million in assets, today reported net income of $414 thousand for the quarter ended March 31, 2013.
Robert C. Haydon, President and CEO commented, "We are pleased to announce a strong start to 2013 with over 20% growth in loans and close to 35% growth in non-interest bearing deposits compared to a year ago. The positive trends throughout our balance sheet are resulting in increased core profitability."
Total assets at March 31, 2013 were $194.0 million, an increase of $17.3 million, or 9.8%, from March 31, 2012. Community 1st Bank ("the Bank") was successful in growing non-interest bearing deposits from $31.4 million at March 31, 2012 to $42.3 million at March 31, 2013, an increase of $10.9 million, or 34.7%, significantly enhancing the deposit portfolio mix and improving the Bank's cost of funds. Total deposits increased from $154.9 million at March 31, 2012 to $164.1 million at March 31, 2013, an increase of $9.2 million, or 6.0%. Total loans increased from $76.0 million at March 31, 2012 to $91.7 million at March 31, 2013, an increase of $15.7 million, or 20.6%. When compared to the previous quarter, total assets decreased $3.7 million, or 1.9%, from $197.8 million at December 31, 2012. Loans increased by $4.6 million, or 5.3%, from $87.1 million at December 31, 2012. Non-interest bearing deposits increased by $4.8 million, or 12.9%, from December 31, 2012. Total deposits decreased by $5.3 million, or 3.1%, from $169.4 million at December 31, 2012.
Operating Results - Quarter
The Bank reported net income for the first quarter ended March 31, 2013 of $414 thousand, which includes $110 thousand in provision for loan losses and gain on sales of securities of $333 thousand. This compares to net income of $108 thousand for the same period in 2012, which included $240 thousand in provision for loan losses and gain on sales of securities of $220 thousand. Net income increased by $306 thousand, while the provision for loan losses decreased by $130 thousand compared to the first quarter of 2012, reflective of the improvement in credit quality while continuing to provide for the growth in the loan portfolio.
Interest income increased by $86 thousand, or 5.3%, to total $1.7 million for the quarter ended March 31, 2013 compared to the same period in 2012. 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 decreased by $8 thousand, or 3.2%, to total $244 thousand for the quarter ended March 31, 2013 compared to the same period in 2012 driven by the increase in noninterest bearing deposits. Net interest income increased by $94 thousand, or 6.8%, for the first quarter of 2013 compared to the same period in 2012.
Credit Quality
The allowance for loan losses at March 31, 2013 was $2.1 million, or 2.3% of gross loans, compared to $2.1 million, or 2.4% of gross loans at December 31, 2012 and $2.1 million, or 2.8% of gross loans at March 31, 2012. Loan charge-offs for the quarter ended March 31, 2013 were $55 thousand with recoveries of $8 thousand compared to loan charge-offs of $17 thousand with no recoveries for the same period in 2012. Nonperforming loans at March 31, 2013 were $2.3 million, or 1.2% of total assets, a decrease of $3.0 million, or 56.6%, from March 31, 2012. Nonperforming loans decreased by $6 thousand, or 0.3%, from $2.3 million at December 31, 2012.
Capital
The Bank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 10.4%, Tier 1 Risk-based Capital ratio of 16.1% and Total Risk-based Capital ratio of 17.3% at March 31, 2013. At March 31, 2012 the Tier 1 Leverage ratio was 10.7%, the Tier 1 Risk-based Capital ratio was 19.5% and the Total Risk-based Capital ratio was 20.7%. The Bank's capital is in excess of that required to be considered "well-capitalized" by regulatory standards.
Robert C. Haydon, President and Chief Executive Officer, commented, "The Bank has made significant progress when measured in financial metrics but that progress is more meaningful knowing that it has been attained by satisfying the financial needs of our neighbors, friends and their businesses in communities we serve."
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville and downtown Auburn, California. Community 1st Bank offers a wide range of business and consumer deposit products including remote deposit capture, health savings accounts, online 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 (Unaudited) | |||||||||
March 31, 2013 | December 31, 2012 | March 31, 2012 | |||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 2,352,000 | $ | 2,934,000 | $ | 2,045,000 | |||
Available-for-sale investment securities, at fair value | 91,133,000 | 98,574,000 | 93,874,000 | ||||||
Loans, less allowance for loan losses of $2,127,000 at March 31, 2013, $2,064,000 at December 31, 2012 and $2,088,000 at March 31, 2012 | 89,584,000 | 85,042,000 | 73,952,000 | ||||||
Bank premises and equipment, net | 1,638,000 | 1,697,000 | 1,779,000 | ||||||
Accrued interest receivable | 560,000 | 640,000 | 596,000 | ||||||
Other real estate owned | 900,000 | 973,000 | 970,000 | ||||||
Federal Home Loan Bank stock and other securities | 1,723,000 | 1,723,000 | 1,476,000 | ||||||
Bank-owned life insurance policies | 4,546,000 | 4,505,000 | - | ||||||
Other assets | 1,595,000 | 1,679,000 | 2,012,000 | ||||||
Total assets | $ | 194,031,000 | $ | 197,767,000 | $ | 176,704,000 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Deposits: | |||||||||
Non-interest bearing | $ | 42,279,000 | $ | 37,446,000 | $ | 31,392,000 | |||
Interest bearing | 121,811,000 | 131,907,000 | 123,469,000 | ||||||
Total deposits | 164,090,000 | 169,353,000 | 154,861,000 | ||||||
Borrowings | 7,210,000 | 5,595,000 | 505,000 | ||||||
Accrued interest payable and other liabilities | 942,000 | 1,134,000 | 1,037,000 | ||||||
Total liabilities | 172,242,000 | 176,082,000 | 156,403,000 | ||||||
Shareholders' equity | 21,789,000 | 21,685,000 | 20,301,000 | ||||||
Total liabilities and shareholders' equity | $ | 194,031,000 | $ | 197,767,000 | $ | 176,704,000 | |||
COMMUNITY 1ST BANK | ||||||
STATEMENT OF OPERATIONS DATA (Unaudited) | ||||||
For the Three Months Ended March 31, 2013 and 2012 | ||||||
2013 | 2012 | |||||
Interest income: | ||||||
Interest and fees on loans | $ | 1,210,000 | $ | 1,019,000 | ||
Interest on investment securities and interest-bearing deposits in other financial institutions | 508,000 | 613,000 | ||||
Total interest income | 1,718,000 | 1,632,000 | ||||
Interest expense: | ||||||
Deposits | 242,000 | 249,000 | ||||
Borrowings | 2,000 | 3,000 | ||||
Total interest expense | 244,000 | 252,000 | ||||
Net interest income | 1,474,000 | 1,380,000 | ||||
Provision for loan losses | 110,000 | 240,000 | ||||
Net interest income after provision for loan losses | 1,364,000 | 1,140,000 | ||||
Non-interest income: | ||||||
Service charges and fees | 16,000 | 16,000 | ||||
Gain on sales of available-for-sale investment securities | 333,000 | 220,000 | ||||
Other | 93,000 | 84,000 | ||||
Total non-interest income | 442,000 | 320,000 | ||||
Non-interest expense: | ||||||
Salaries and employee benefits | 719,000 | 728,000 | ||||
Occupancy and equipment | 140,000 | 149,000 | ||||
Other | 533,000 | 475,000 | ||||
Total non-interest expense | 1,392,000 | 1,352,000 | ||||
Net income | $ | 414,000 | $ | 108,000 | ||
Net income | $ | 414,000 | $ | 108,000 | ||
Preferred stock dividends and accretion of discount | 33,000 | 8,000 | ||||
Net income available to common shareholders | $ | 381,000 | $ | 100,000 | ||
Basic income per share | $ | 0.07 | $ | 0.02 | ||
Weighted average number of shares outstanding | 5,449,242 | 5,449,242 | ||||
Community 1st Bank
Robert C. Haydon, 530-863-4801
President & Chief Executive Officer
Fax: 530-863-4849
James J. Kim, 530-863-4803
Executive Vice President & Chief Financial Officer
Fax: 530-863-4849
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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