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

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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, 2013December 31, 2012September 30, 2012
ASSETS
Cash and cash equivalents$7,381,000$2,934,000$4,579,000
Federal funds sold765,000-45,000
Available-for-sale investment securities, at fair value119,560,00098,574,00097,478,000

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

103,032,00085,042,00081,952,000
Bank premises and equipment, net1,564,0001,697,0001,751,000
Accrued interest receivable590,000640,000574,000
Other real estate owned880,000973,000993,000
Federal Home Loan Bank stock and other securities1,555,0001,723,0001,723,000
Bank-owned life insurance policies4,641,0004,505,000-
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 deposits209,408,000169,353,000166,168,000
 
Borrowings-5,595,0002,850,000
Accrued interest payable and other liabilities 12,062,000 1,134,000 1,039,000
 
Total liabilities221,470,000176,082,000170,057,000
 
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
  
20132012
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:
Deposits191,000240,000
Borrowings - 4,000
 
Total interest expense 191,000 244,000
 
Net interest income1,646,0001,421,000
 
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 fees16,00018,000
Gain on sales of available-for-sale investment securities121,000160,000
Other 105,000 72,000
 
Total non-interest income 242,000 250,000
 
Non-interest expense:
Salaries and employee benefits808,000659,000
Occupancy and equipment159,000152,000
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 outstanding5,449,2425,449,242
Weighted average shares outstanding - diluted6,470,0865,450,000
 
COMMUNITY 1ST BANK
STATEMENTS OF INCOME DATA (Unaudited)
For the Nine Months Ended September 30, 2013 and 2012
  
20132012
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

1,408,0001,647,000
 
Total interest income 5,244,000 4,940,000
 
Interest expense:
Deposits625,000727,000
Borrowings 4,000 9,000
 
Total interest expense 629,000 736,000
 
Net interest income4,615,0004,204,000
 
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 fees49,00052,000
Gain on sales of available-for-sale investment securities574,000541,000
Other 291,000 256,000
 
Total non-interest income 914,000 849,000
 
Non-interest expense:
Salaries and employee benefits2,274,0002,038,000
Occupancy and equipment451,000446,000
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 outstanding5,449,2425,449,242
Weighted average shares outstanding - diluted6,469,2115,449,508
 



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:

The article Community 1st Bank Reports Results for the Quarter Ended September 30, 2013 originally appeared on Fool.com.

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