Community 1st Bank Reports Results for the Quarter Ended September 30, 2013
Community 1st Bank Reports Results for the Quarter Ended September 30, 2013
AUBURN, Calif.--(BUSINESS WIRE)-- Community 1st Bank (OTCBB:CFBN), with $242.1 million in total assets, today reported net income of $252 thousand for the quarter ended September 30, 2013 and net income of $839 thousand for the nine month period ended September 30, 2013.
Robert C. Haydon commented, "The third quarter results shows growth at an increasing rate resulting in continued improvement to earnings. The Bank's successes are attributed to our bankers that continue to exceed expectations of the marketplace."
Total assets at September 30, 2013 were $242.1 million, an increase of $51.3 million, or 26.9%, from September 30, 2012. Community 1st Bank (the "Bank") was successful in growing loans from $83.9 million at September 30, 2012 to $105.3 million at September 30, 2013, an increase of $21.4 million, or 25.6%, enhancing the earnings potential of the Bank. The Bank also increased non-interest bearing deposits from $39.8 million at September 30, 2012 to $83.7 million at September 30, 2013, an increase of $44.0 million, or 110.5%, enhancing the deposit portfolio mix and improving the Bank's cost of funds. The Bank may experience fluctuations in non-interest bearing deposits at the discretion of large clients. Total deposits increased from $166.2 million at September 30, 2012 to $209.4 million at September 30, 2013, an increase of $43.2 million, or 26.0%. When compared to the previous quarter, total assets increased $39.1 million, or 19.2%, from $203.0 million at June 30, 2013. Loans increased by $8.1 million, or 8.4%, from $97.2 million at June 30, 2013. Total deposits increased by $33.1 million, or 18.8%, from $176.3 million at June 30, 2013.
Operating Results - Quarter
The Bank reported net income for the quarter ended September 30, 2013 of $252 thousand, which is net of $100 thousand in provision for loan losses and $121 thousand in gains on sales of securities. This compares to net income of $180 thousand for the same period in 2012, which included $170 thousand in provision for loan losses and $160 thousand in gains on sales of securities. Net income increased by $72 thousand, or 40.0%, while the provision for loan losses decreased by $70 thousand and gains on sales of securities decreased by $39 thousand as compared to the third quarter of 2012. The provisioning during the quarter ended September 30, 2013 was primarily a result of the loan growth experienced during the quarter.
Interest income increased by $172 thousand, or 10.3%, to total $1.8 million for the quarter ended September 30, 2013 compared to the same period in 2012, primarily driven by the increased balances of higher yielding loans. Interest expense decreased by $53 thousand, or 21.7%, to total $191 thousand for the quarter ended September 30, 2013 compared to the same period in 2012, driven by a decrease in average rates paid on interest bearing deposits and improved mix of deposits. Net interest income increased by $225 thousand, or 15.8%, for the third quarter of 2013 compared to the same period in 2012. Non-interest expense increased by $215 thousand, or 16.3%, to total $1.5 million for the quarter ended September 30, 2013 compared to the quarter ended September 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 nine month period ended September 30, 2013 of $839 thousand, which is net of $310 thousand in provision for loan losses and gains on sales of securities of $574 thousand. This compares to net income of $463 thousand for the same period in 2012, which included $630 thousand in provision for loan losses and gains on sales of securities of $541 thousand. Net income increased by $376 thousand, or 81.2%, while the provision for loan losses decreased by $320 thousand and gains on sales of securities increased by $33 thousand as compared to the nine month period ended September 30, 2012.
Interest income increased by $304 thousand, or 6.2%, to total $5.2 million for the nine month period ended September 30, 2013 compared to the same period in 2012 driven by the increase in average loans. Interest expense decreased by $107 thousand, or 14.5%, to total $629 thousand for the nine month period ended September 30, 2013 compared to the same period in 2012. Net interest income increased by $411 thousand, or 9.8%, for the nine month period ended September 30, 2013 compared to the same period in 2012. Non-interest expense increased by $420 thousand, or 10.6%, to total $4.4 million for the nine month period ended September 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 September 30, 2013 was $2.3 million, or 2.2% of gross loans, compared to $1.9 million, or 2.3% of gross loans at September 30, 2012. Loan charge-offs for the quarter ended September 30, 2013 were $61 thousand with recoveries of $12 thousand compared to loan charge-offs of $37 thousand with recoveries of $11 thousand for the same period in 2012. Loan charge-offs for the nine month period ended September 30, 2013 were $119 thousand with recoveries of $21 thousand compared to loan charge-offs of $593 thousand with recoveries of $12 thousand for the same period in 2012. Nonperforming loans at September 30, 2013 were $1.5 million, or 0.6% of total assets, a reduction of $0.8 million, or 34.7%, from $2.4 million, or 1.2% of total assets, at September 30, 2012.
Capital
At September 30, 2013, the Bank had a Tier 1 Leverage Capital ratio of 9.7%, Tier 1 Risk-based Capital ratio of 14.5% and Total Risk-based Capital ratio of 15.8%. At September 30, 2012, the Tier 1 Leverage Capital ratio was 10.6%, Tier 1 Risk-based Capital ratio was 17.7% and Total Risk-based Capital ratio was 18.9%. 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 while maintaining a strong liquidity and capital position. The Bank is well positioned in the marketplace to continue its growth trends."
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) | |||||||||||
September 30, 2013 | December 31, 2012 | September 30, 2012 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | 7,381,000 | $ | 2,934,000 | $ | 4,579,000 | |||||
Federal funds sold | 765,000 | - | 45,000 | ||||||||
Available-for-sale investment securities, at fair value | 119,560,000 | 98,574,000 | 97,478,000 | ||||||||
Loans, less allowance for loan losses of $2,276,000 at September 30, 2013, $2,064,000 at December 31, 2012 and $1,914,000 at September 30, 2012 | 103,032,000 | 85,042,000 | 81,952,000 | ||||||||
Bank premises and equipment, net | 1,564,000 | 1,697,000 | 1,751,000 | ||||||||
Accrued interest receivable | 590,000 | 640,000 | 574,000 | ||||||||
Other real estate owned | 880,000 | 973,000 | 993,000 | ||||||||
Federal Home Loan Bank stock and other securities | 1,555,000 | 1,723,000 | 1,723,000 | ||||||||
Bank-owned life insurance policies | 4,641,000 | 4,505,000 | - | ||||||||
Other assets | 2,089,000 | 1,679,000 | 1,638,000 | ||||||||
Total assets | $ | 242,057,000 | $ | 197,767,000 | $ | 190,733,000 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Deposits: | |||||||||||
Non-interest bearing | $ | 83,720,000 | $ | 37,446,000 | $ | 39,766,000 | |||||
Interest bearing | 125,688,000 | 131,907,000 | 126,402,000 | ||||||||
Total deposits | 209,408,000 | 169,353,000 | 166,168,000 | ||||||||
Borrowings | - | 5,595,000 | 2,850,000 | ||||||||
Accrued interest payable and other liabilities | 12,062,000 | 1,134,000 | 1,039,000 | ||||||||
Total liabilities | 221,470,000 | 176,082,000 | 170,057,000 | ||||||||
Shareholders' equity | 20,587,000 | 21,685,000 | 20,676,000 | ||||||||
Total liabilities and shareholders' equity | $ | 242,057,000 | $ | 197,767,000 | $ | 190,733,000 | |||||
COMMUNITY 1ST BANK | ||||||
STATEMENTS OF INCOME DATA (Unaudited) | ||||||
For the Three Months Ended September 30, 2013 and 2012 | ||||||
2013 | 2012 | |||||
Interest income: | ||||||
Interest and fees on loans | $ | 1,367,000 | $ | 1,187,000 | ||
Interest on investment securities and interest-bearing deposits in other financial institutions | 470,000 | 478,000 | ||||
Total interest income | 1,837,000 | 1,665,000 | ||||
Interest expense: | ||||||
Deposits | 191,000 | 240,000 | ||||
Borrowings | - | 4,000 | ||||
Total interest expense | 191,000 | 244,000 | ||||
Net interest income | 1,646,000 | 1,421,000 | ||||
Provision for loan losses | 100,000 | 170,000 | ||||
Net interest income after provision for loan losses | 1,546,000 | 1,251,000 | ||||
Non-interest income: | ||||||
Service charges and fees | 16,000 | 18,000 | ||||
Gain on sales of available-for-sale investment securities | 121,000 | 160,000 | ||||
Other | 105,000 | 72,000 | ||||
Total non-interest income | 242,000 | 250,000 | ||||
Non-interest expense: | ||||||
Salaries and employee benefits | 808,000 | 659,000 | ||||
Occupancy and equipment | 159,000 | 152,000 | ||||
Other | 569,000 | 510,000 | ||||
Total non-interest expense | 1,536,000 | 1,321,000 | ||||
Net income | $ | 252,000 | $ | 180,000 | ||
Net income | $ | 252,000 | $ | 180,000 | ||
Preferred stock dividends and accretion of discount | 35,000 | 43,000 | ||||
Net income available to common shareholders | $ | 217,000 | $ | 137,000 | ||
Common Share Data | ||||||
Basic earnings per share | $ | 0.04 | $ | 0.03 | ||
Diluted earnings per share | $ | 0.03 | $ | 0.03 | ||
Weighted average shares outstanding | 5,449,242 | 5,449,242 | ||||
Weighted average shares outstanding - diluted | 6,470,086 | 5,450,000 | ||||
COMMUNITY 1ST BANK | ||||||
STATEMENTS OF INCOME DATA (Unaudited) | ||||||
For the Nine Months Ended September 30, 2013 and 2012 | ||||||
2013 | 2012 | |||||
Interest income: | ||||||
Interest and fees on loans | $ | 3,836,000 | $ | 3,293,000 | ||
Interest on investment securities and interest-bearing deposits in other financial institutions | 1,408,000 | 1,647,000 | ||||
Total interest income | 5,244,000 | 4,940,000 | ||||
Interest expense: | ||||||
Deposits | 625,000 | 727,000 | ||||
Borrowings | 4,000 | 9,000 | ||||
Total interest expense | 629,000 | 736,000 | ||||
Net interest income | 4,615,000 | 4,204,000 | ||||
Provision for loan losses | 310,000 | 630,000 | ||||
Net interest income after provision for loan losses | 4,305,000 | 3,574,000 | ||||
Non-interest income: | ||||||
Service charges and fees | 49,000 | 52,000 | ||||
Gain on sales of available-for-sale investment securities | 574,000 | 541,000 | ||||
Other | 291,000 | 256,000 | ||||
Total non-interest income | 914,000 | 849,000 | ||||
Non-interest expense: | ||||||
Salaries and employee benefits | 2,274,000 | 2,038,000 | ||||
Occupancy and equipment | 451,000 | 446,000 | ||||
Other | 1,655,000 | 1,476,000 | ||||
Total non-interest expense | 4,380,000 | 3,960,000 | ||||
Net income | $ | 839,000 | $ | 463,000 | ||
Net income | $ | 839,000 | $ | 463,000 | ||
Preferred stock dividends and accretion of discount | 103,370 | 59,000 | ||||
Net income available to common shareholders | $ | 735,630 | $ | 404,000 | ||
Common Share Data | ||||||
Basic earnings per share | $ | 0.13 | $ | 0.07 | ||
Diluted earnings per share | $ | 0.11 | $ | 0.07 | ||
Weighted average shares outstanding | 5,449,242 | 5,449,242 | ||||
Weighted average shares outstanding - diluted | 6,469,211 | 5,449,508 | ||||
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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