Community 1st Bank Reports Results for the Quarter Ended June 30, 2013
Community 1st Bank Reports Results for the Quarter Ended June 30, 2013
AUBURN, Calif.--(BUSINESS WIRE)-- Community 1st Bank (OTCBB: CFBN), with $203.0 million in total assets, today reported net income of $173 thousand for the quarter ended June 30, 2013 and net income of $587 thousand for the six month period ended June 30, 2013.
Robert C. Haydon commented, "The continued positive results of the quarter and six month period ended June 30, 2013 validates the strategies and direction of our Bank. The Bank is focused on improving profitability and gaining market share, both accomplished by exceeding the expectations of our clients and marketplace."
Total assets at June 30, 2013 were $203.0 million, an increase of $15.4 million, or 8.2%, from June 30, 2012. Community 1st Bank (the "Bank") was successful in growing loans from $80.3 million at June 30, 2012 to $97.2 million at June 30, 2013, an increase of $16.9 million, or 21.0%, enhancing the earning asset mix to higher yielding loans. The Bank also increased non-interest bearing deposits from $33.9 million at June 30, 2012 to $45.6 million at June 30, 2013, an increase of $11.7 million, or 34.6%, enhancing the deposit portfolio mix and improving the Bank's cost of funds. Total deposits increased from $153.6 million at June 30, 2012 to $176.3 million at June 30, 2013, an increase of $22.7 million, or 14.8%. When compared to the previous quarter, total assets increased $9.0 million, or 4.6%, from $194.0 million at March 31, 2013. Loans increased by $5.5 million, or 6.0%, from $91.7 million at March 31, 2013. Total deposits increased by $12.2 million, or 7.4%, from $164.1 million at March 31, 2013.
Operating Results - Quarter
The Bank reported net income for the quarter ended June 30, 2013 of $173 thousand, which included $100 thousand in provision for loan losses and $120 thousand in gains on sales of securities. This compares to net income of $174 thousand for the same period in 2012, which included $220 thousand in provision for loan losses and $161 thousand in gains on sales of securities. Net income decreased slightly by $1 thousand, while the provision for loan losses decreased by $120 thousand and gains on sales of securities decreased by $41 thousand as compared to the second quarter of 2012. The provisioning during the quarter ended June 30, 2013 was primarily a result of the loan growth experienced during the quarter.
Interest income increased by $46 thousand, or 2.8%, to total $1.7 million for the quarter ended June 30, 2013 compared to the same period in 2012, primarily driven by a change in the mix of our average earning assets to a greater percentage of higher yielding loans. Interest expense decreased by $47 thousand, or 19.5%, to total $194 thousand for the quarter ended June 30, 2013 compared to the same period in 2012, driven by a decrease in average rates paid on interest bearing deposits outweighing the increase in average balances of interest bearing deposits. Net interest income increased by $93 thousand, or 6.6%, for the second quarter of 2013 compared to the same period in 2012. Non-interest expense increased by $165 thousand, or 12.8%, to total $1.5 million for the quarter ended June 30, 2013 compared to the quarter ended June 30, 2012. The increase in non-interest expense was primarily driven by the addition of two business production officers to achieve the Bank's growth initiatives and expand market share.
Operating Results - Year
The Bank reported net income for the six month period ended June 30, 2013 of $587 thousand, which includes $210 thousand in provision for loan losses and gains on sales of securities of $453 thousand. This compares to net income of $283 thousand for the same period in 2012, which included $460 thousand in provision for loan losses and gains on sales of securities of $381 thousand. Net income increased by $304 thousand, while the provision for loan losses decreased by $250 thousand and gains on sales of securities increased by $72 thousand as compared to the six month period ended June 30, 2012.
Interest income increased by $132 thousand, or 4.0%, to total $3.4 million for the six month period ended June 30, 2013 compared to the same period in 2012 driven by the increase in average loans. Interest expense decreased by $54 thousand, or 11.0%, to total $438 thousand for the six month period ended June 30, 2013 compared to the same period in 2012. Net interest income increased by $186 thousand, or 6.7%, for the six month period ended June 30, 2013 compared to the same period in 2012. Non-interest expense increased by $205 thousand, or 7.8%, to total $2.8 million for the six month period ended June 30, 2013 compared to the same period in 2012 driven by the addition of production officers and expenses to support the Bank's growth initiatives.
Credit Quality
The allowance for loan losses at June 30, 2013 was $2.2 million, or 2.3% of gross loans, compared to $1.8 million, or 2.2% of gross loans at June 30, 2012. Loan charge-offs for the quarter ended June 30, 2013 were $3 thousand with recoveries of $1 thousand compared to loan charge-offs of $539 thousand with recoveries of $1 thousand for the same period in 2012. Loan charge-offs for the six month period ended June 30, 2013 were $58 thousand with recoveries of $9 thousand compared to loan charge-offs of $556 thousand with recoveries of $1 thousand for the same period in 2012. Nonperforming loans at June 30, 2013 were $1.5 million, or 0.8% of total assets, a reduction of $2.3 million, or 60.5%, from $3.8 million, or 2.0% of total assets, at June 30, 2012.
Capital
At June 30, 2013, the Bank had a Tier 1 Leverage Capital ratio of 10.7%, Tier 1 Risk-based Capital ratio of 15.6% and Total Risk-based Capital ratio of 16.8%. At June 30, 2012, the Tier 1 Leverage Capital ratio was 11.0%, Tier 1 Risk-based Capital ratio was 18.9% and Total Risk-based Capital ratio was 20.2%. The Bank's capital is in excess of that required to be considered "well-capitalized" by regulatory standards.
Robert C. Haydon added, "The Bank continues to grow loans and non interest bearing deposits increasing core earnings capacity for the coming quarters. The steady balance sheet growth coupled with increasing earnings capacity strengthens the value of our Bank."
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville and 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) | ||||||||||||
June 30, 2013 | December 31, 2012 | June 30, 2012 | ||||||||||
ASSETS | ||||||||||||
Cash and cash equivalents | $ | 3,985,000 | $ | 2,934,000 | $ | 2,331,000 | ||||||
Federal funds sold | 600,000 | - | - | |||||||||
Available-for-sale investment securities, at fair value | 92,475,000 | 98,574,000 | 99,926,000 | |||||||||
Loans, less allowance for loan losses of $2,225,000 at | ||||||||||||
June 30, 2013, $2,064,000 at December 31, 2012 and | ||||||||||||
$1,771,000 at June 30, 2012 | 94,941,000 | 85,042,000 | 78,508,000 | |||||||||
Bank premises and equipment, net | 1,598,000 | 1,697,000 | 1,749,000 | |||||||||
Accrued interest receivable | 549,000 | 640,000 | 617,000 | |||||||||
Other real estate owned | 890,000 | 973,000 | 1,013,000 | |||||||||
Federal Home Loan Bank stock and other securities | 1,590,000 | 1,723,000 | 1,723,000 | |||||||||
Bank-owned life insurance policies | 4,589,000 | 4,505,000 | - | |||||||||
Other assets | 1,781,000 | 1,679,000 | 1,737,000 | |||||||||
Total assets | $ | 202,998,000 | $ | 197,767,000 | $ | 187,604,000 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||
Deposits: | ||||||||||||
Non-interest bearing | $ | 45,621,000 | $ | 37,446,000 | $ | 33,892,000 | ||||||
Interest bearing | 130,667,000 | 131,907,000 | 119,725,000 | |||||||||
Total deposits | 176,288,000 | 169,353,000 | 153,617,000 | |||||||||
Borrowings | - | 5,595,000 | 12,645,000 | |||||||||
Accrued interest payable and other liabilities | 5,628,000 | 1,134,000 | 955,000 | |||||||||
Total liabilities | 181,916,000 | 176,082,000 | 167,217,000 | |||||||||
Shareholders' equity | 21,082,000 | 21,685,000 | 20,387,000 | |||||||||
Total liabilities and shareholders' equity | $ | 202,998,000 | $ | 197,767,000 | $ | 187,604,000 | ||||||
COMMUNITY 1ST BANK | ||||||||
STATEMENT OF OPERATIONS DATA (Unaudited) | ||||||||
For the Three Months Ended June 30, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Interest income: | ||||||||
Interest and fees on loans | $ | 1,259,000 | $ | 1,087,000 | ||||
Interest on investment securities and interest-bearing deposits in other financial institutions | 430,000 | 556,000 | ||||||
Total interest income | 1,689,000 | 1,643,000 | ||||||
Interest expense: | ||||||||
Deposits | 192,000 | 239,000 | ||||||
Borrowings | 2,000 | 2,000 | ||||||
Total interest expense | 194,000 | 241,000 | ||||||
Net interest income | 1,495,000 | 1,402,000 | ||||||
Provision for loan losses | 100,000 | 220,000 | ||||||
Net interest income after provision for loan losses | 1,395,000 | 1,182,000 | ||||||
Non-interest income: | ||||||||
Service charges and fees | 17,000 | 19,000 | ||||||
Gain on sales of available-for-sale investment securities | 120,000 | 161,000 | ||||||
Other | 93,000 | 99,000 | ||||||
Total non-interest income | 230,000 | 279,000 | ||||||
Non-interest expense: | ||||||||
Salaries and employee benefits | 747,000 | 650,000 | ||||||
Occupancy and equipment | 152,000 | 145,000 | ||||||
Other | 553,000 | 492,000 | ||||||
Total non-interest expense | 1,452,000 | 1,287,000 | ||||||
Net income | $ | 173,000 | $ | 174,000 | ||||
Net income | $ | 173,000 | $ | 174,000 | ||||
Preferred stock dividends and accretion of discount | 35,000 | 8,000 | ||||||
Net income available to common shareholders | $ | 138,000 | $ | 166,000 | ||||
Common Share Data | ||||||||
Basic earnings per share | $ | 0.03 | $ | 0.03 | ||||
Diluted earnings per share | $ | 0.02 | $ | 0.03 | ||||
Weighted average shares outstanding | 5,449,242 | 5,449,242 | ||||||
Weighted average shares outstanding - diluted | 6,469,302 | 5,450,088 | ||||||
COMMUNITY 1ST BANK | ||||||||
STATEMENT OF OPERATIONS DATA (Unaudited) | ||||||||
For the Six Months Ended June 30, 2013 and 2012 | ||||||||
2013 | 2012 | |||||||
Interest income: | ||||||||
Interest and fees on loans | $ | 2,469,000 | $ | 2,106,000 | ||||
Interest on investment securities and interest-bearing deposits in other financial institutions | 938,000 | 1,169,000 | ||||||
Total interest income | 3,407,000 | 3,275,000 | ||||||
Interest expense: | ||||||||
Deposits | 434,000 | 487,000 | ||||||
Borrowings | 4,000 | 5,000 | ||||||
Total interest expense | 438,000 | 492,000 | ||||||
Net interest income | 2,969,000 | 2,783,000 | ||||||
Provision for loan losses | 210,000 | 460,000 | ||||||
Net interest income after provision for loan losses | 2,759,000 | 2,323,000 | ||||||
Non-interest income: | ||||||||
Service charges and fees | 33,000 | 34,000 | ||||||
Gain on sales of available-for-sale investment securities | 453,000 | 381,000 | ||||||
Other | 186,000 | 184,000 | ||||||
Total non-interest income | 672,000 | 599,000 | ||||||
Non-interest expense: | ||||||||
Salaries and employee benefits | 1,466,000 | 1,379,000 | ||||||
Occupancy and equipment | 292,000 | 294,000 | ||||||
Other | 1,086,000 | 966,000 | ||||||
Total non-interest expense | 2,844,000 | 2,639,000 | ||||||
Net income | $ | 587,000 | $ | 283,000 | ||||
Net income | $ | 587,000 | $ | 283,000 | ||||
Preferred stock dividends and accretion of discount | 68,000 | 16,000 | ||||||
Net income available to common shareholders | $ | 519,000 | $ | 267,000 | ||||
Common Share Data | ||||||||
Basic earnings per share | $ | 0.10 | $ | 0.05 | ||||
Diluted earnings per share | $ | 0.08 | $ | 0.05 | ||||
Weighted average shares outstanding | 5,449,242 | 5,449,242 | ||||||
Weighted average shares outstanding - diluted | 6,468,772 | 5,449,244 | ||||||
Community 1st Bank
Robert C. Haydon, 530-863-4801
President & Chief Executive Officer
Fax: 530-863-4849
or
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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