Community 1st Bank Reports Results for the Quarter Ended June 30, 2013

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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, 2013December 31, 2012June 30, 2012
ASSETS
Cash and cash equivalents$3,985,000$2,934,000$2,331,000
Federal funds sold600,000--
Available-for-sale investment securities, at fair value92,475,00098,574,00099,926,000
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, 201294,941,00085,042,00078,508,000
Bank premises and equipment, net1,598,0001,697,0001,749,000
Accrued interest receivable549,000640,000617,000
Other real estate owned890,000973,0001,013,000
Federal Home Loan Bank stock and other securities1,590,0001,723,0001,723,000
Bank-owned life insurance policies4,589,0004,505,000-
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 deposits176,288,000169,353,000153,617,000
 
Borrowings-5,595,00012,645,000
Accrued interest payable and other liabilities 5,628,000 1,134,000 955,000
 
Total liabilities181,916,000176,082,000167,217,000
 
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
    
20132012
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:
Deposits192,000239,000
Borrowings 2,000 2,000
 
Total interest expense 194,000 241,000
 
Net interest income1,495,0001,402,000
 
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 fees17,00019,000
Gain on sales of available-for-sale investment securities120,000161,000
Other 93,000 99,000
 
Total non-interest income 230,000 279,000
 
Non-interest expense:
Salaries and employee benefits747,000650,000
Occupancy and equipment152,000145,000
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 outstanding5,449,2425,449,242
Weighted average shares outstanding - diluted6,469,3025,450,088
 
 
 
COMMUNITY 1ST BANK
STATEMENT OF OPERATIONS DATA (Unaudited)
For the Six Months Ended June 30, 2013 and 2012
 
20132012
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:
Deposits434,000487,000
Borrowings 4,000 5,000
 
Total interest expense 438,000 492,000
 
Net interest income2,969,0002,783,000
 
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 fees33,00034,000
Gain on sales of available-for-sale investment securities453,000381,000
Other 186,000 184,000
 
Total non-interest income 672,000 599,000
 
Non-interest expense:
Salaries and employee benefits1,466,0001,379,000
Occupancy and equipment292,000294,000
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 outstanding5,449,2425,449,242
Weighted average shares outstanding - diluted6,468,7725,449,244



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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