Community 1st Bancorp (OTC markets: CFBN), with $391 million in assets, today reported net income of $532 thousand, or $0.08 per diluted share, for the quarter ended June 30, 2017 compared to $292 thousand, or $0.04 per diluted share, for the quarter ended June 30, 2016. Community 1st Bancorp (the “Company”) reported net income for the six months ended June 30, 2017 of $934 thousand, or $0.14 per diluted share, compared to $537 thousand, or $0.08 per diluted share for the six months ended June 30, 2016.
James J. Kim, President and CEO commented, “We are pleased to announce strong growth for the first half of the 2017 fiscal year with year-over-year growth in non-interest bearing deposits of 31.5%, total deposit growth of over 24.2%, and loan growth of over 23.7%, far out-pacing the industry growth rates.”
Total assets at June 30, 2017 were $390.7 million, representing an increase of $73.6 million, or 23.2%, from $317.0 million at June 30, 2016. The Company was successful in growing loans by $42.2 million, or 23.7%, from $178.2 million at June 30, 2016 to $220.4 million at June 30, 2017. Non-interest bearing deposits grew by $31.0 million, or 31.5%, from $98.4 million at June 30, 2016 to $129.4 million at June 30, 2017. Total deposits increased by $69.3 million, or 24.2%, from $286.6 million at June 30, 2016 to $355.9 million at June 30, 2017. Total assets increased by $32.1 million from $358.6 million at December 31, 2016, and loans increased by $11.3 million from $209.1 million at December 31, 2016. Total deposits increased by $30.0 million, from $325.9 million at December 31, 2016 and non-interest bearing deposits increased by $13.4 million, from $116.0 million at December 31, 2016.
Operating Results - Quarter
Net income was $532 thousand for the quarter ended June 30, 2017 compared to $292 thousand for the quarter ended June 30, 2016. During the quarter ended June 30, 2017, the Company’s net interest income was $2.9 million compared to $2.2 million for the quarter ended June 30, 2016. The Company recorded a provision for loan losses of $25 thousand, non-interest income was $135 thousand, and non-interest expense was $2.2 million for the quarter ended June 30, 2017, compared to zero provision for loan losses, non-interest income was $138 thousand, and non-interest expense was $1.8 million for the quarter ended June 30, 2016.
Interest income totaled $3.4 million for the quarter June 30, 2017, representing an increase of $897 thousand when compared to $2.5 million for the quarter ended June 30, 2016. Interest expense totaled $496 thousand for the quarter ended June 30, 2017, representing an increase of $107 thousand over the $389 thousand for the quarter ended June 30, 2016. Net interest income was $2.9 million for the quarter ended June 30, 2017, compared to $2.2 million for the same period in 2016. The net interest margin for the quarter ended June 30, 2017 was 3.28% compared to 2.95% for the quarter ended June 30, 2016, representing an increase of 33 basis points.
Operating Results - Year
The Company reported net income for the six month period ended June 30, 2017 of $934 thousand, or $0.14 per diluted share, which includes a provision for loan losses of $120 thousand. This compares to net income of $537 thousand for the same period in 2016, which includes no provision for loan losses. Net interest income was $5.6 million for the six month period ended June 30, 2017, an increase of $1.5 million, or 36.0%, compared to $4.2 million for the same period ended June 30, 2016. Non-interest income was $274 thousand for the six month period ended June 30, 2017, compared to $265 thousand for the same period ended June 30, 2016. Non-interest expense increased by $617 thousand, or 17.2%, to total $4.2 million for the six month period ended June 30, 2017 compared to $3.6 million for the same period in 2016.
Interest income increased by $1.7 million, or 35.0%, to total $6.6 million for the six month period ended June 30, 2017, compared to $4.9 million for the same period in 2016. Total interest expense increased by $228 thousand, or 30.0%, to total $989 thousand for the six month period ended June 30, 2017 compared to $761 thousand for the same period in 2016, as the Company raised another $3.0 million of subordinated debentures. Net interest income increased by $1.5 million, or 36.0%, for the six month period ended June 30, 2017 compared to the same period in 2016. The net interest margin for the six month period ended June 30, 2017 was 3.20%, representing an increase of 19 basis points from 3.01% for the six month period ended June 30, 2016.
Credit Quality
The allowance for loan losses at June 30, 2017 was $3.1 million, or 1.41% of gross loans, compared to $2.8 million, or 1.54% of gross loans at June 30, 2016. The Company provided $120 thousand to its allowance for loan and lease losses, it had loan charge-offs of $11 thousand and recoveries totaled $5 thousand for the six month period ended June 30, 2017, compared to no provision, loan charge-offs of zero with recoveries of $10 thousand for the same period in 2016. Nonperforming loans at June 30, 2017 were $256 thousand, or 0.07% of total assets, compared to $725 thousand, or 0.23% of total assets at June 30, 2016. Other real estate owned at June 30, 2017 was $248 thousand as the Company was able to sell its largest property with a gain of $112 thousand, and then wrote down the last OREO property by $151 thousand. OREO totaled $4.0 million at June 30, 2016.
Capital
The Company and Community 1st Bank (the “Bank”) continue to maintain a strong capital position under Basel III. The Company’s capital ratios were Common Equity Tier 1 ratio of 10.6%, Tier 1 Leverage ratio of 7.3%, Tier 1 Capital ratio of 10.6% and Total Capital ratio of 14.9% at June 30, 2017. The Bank’s capital ratios were Common Equity Tier 1 ratio of 13.6%, Tier 1 Leverage ratio of 9.2%, Tier 1 Capital ratio of 13.6% and Total Capital ratio of 14.8% at June 30, 2017.
James J. Kim, President and Chief Executive Officer, commented, “We are very pleased with the strong improvement to earnings. We strive to continue the strong earnings trend by continued balance sheet growth through our new Sacramento office and by leveraging the recently issued subordinated debt.”
Community 1st Bancorp is headquartered in Auburn, California, with branches in Sacramento, Roseville and Auburn. The Bank offers a wide range of business and consumer deposit products including remote deposit capture, health savings accounts, online banking, mobile 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 BANCORP | |||||||||||
| CONSOLIDATED BALANCE SHEETS | |||||||||||
| 6/30/17 | 12/31/16* | 6/30/16 | |||||||||
| (Unaudited) | (Unaudited) | ||||||||||
| ASSETS | |||||||||||
| Cash and cash equivalents | $ | 36,152,000 | $ | 20,001,000 | $ | 35,239,000 | |||||
| Federal funds sold | 3,747,000 | 1,914,000 | 2,294,000 | ||||||||
| Available-for-sale investment securities, at fair value | 120,595,000 | 114,310,000 | 88,570,000 | ||||||||
Loans, less allowance for loan losses of $3,100,000 at June 30, 2017, $2,986,000 at December 31, 2016 and $2,752,000 at June 30, 2016 | 217,303,000 | 206,156,000 | 175,477,000 | ||||||||
| Bank premises and equipment, net | 1,764,000 | 1,778,000 | 1,434,000 | ||||||||
| Interest receivable | 985,000 | 941,000 | 753,000 | ||||||||
| Other real estate owned | 248,000 | 3,559,000 | 4,009,000 | ||||||||
| Federal Home Loan Bank stock and other securities | 2,116,000 | 1,368,000 | 1,368,000 | ||||||||
| Bank-owned life insurance policies | 5,208,000 | 5,136,000 | 5,061,000 | ||||||||
| Other assets | 2,558,000 | 3,421,000 | 2,837,000 | ||||||||
| Total assets | $ | 390,676,000 | $ | 358,584,000 | $ | 317,042,000 | |||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
| Non-interest bearing | $ | 129,370,000 | $ | 115,950,000 | $ | 98,381,000 | |||||
| Interest bearing | 226,550,000 | 209,945,000 | 188,210,000 | ||||||||
| Total deposits | 355,920,000 | 325,895,000 | 286,591,000 | ||||||||
| Subordinated debentures | 7,850,000 | 7,841,000 | 4,896,000 | ||||||||
| Interest payable and other liabilities | 761,000 | 600,000 | 611,000 | ||||||||
| Total liabilities | 364,531,000 | 334,336,000 | 292,098,000 | ||||||||
| Shareholders' equity | 26,145,000 | 24,248,000 | 24,944,000 | ||||||||
| Total liabilities and shareholders' equity | $ | 390,676,000 | $ | 358,584,000 | $ | 317,042,000 | |||||
| *Derived from audited Consolidated Financial Statements | |||||||||||
| COMMUNITY 1ST BANCORP | ||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||
| For the Three Months Ended: | For the Six Months Ended: | |||||||||||||||
| 6/30/17 | 3/31/17 | 6/30/16 | 6/30/17 | 6/30/16 | ||||||||||||
| Interest income: | ||||||||||||||||
| Interest and fees on loans | $ | 2,686,000 | $ | 2,515,000 | $ | 2,074,000 | $ | 5,201,000 | $ | 4,097,000 | ||||||
Interest on investment securities and interest- bearing deposits in other financial institutions | 757,000 | 679,000 | 472,000 | 1,436,000 | 818,000 | |||||||||||
| Total interest income | 3,443,000 | 3,194,000 | 2,546,000 | 6,637,000 | 4,915,000 | |||||||||||
| Interest expense: | ||||||||||||||||
| Deposits | 351,000 | 338,000 | 287,000 | 689,000 | 556,000 | |||||||||||
| Subordinated debentures | 145,000 | 155,000 | 102,000 | 300,000 | 205,000 | |||||||||||
| Total interest expense | 496,000 | 493,000 | 389,000 | 989,000 | 761,000 | |||||||||||
| Net interest income | 2,947,000 | 2,701,000 | 2,157,000 | 5,648,000 | 4,154,000 | |||||||||||
| Provision for loan losses | 25,000 | 95,000 | - | 120,000 | - | |||||||||||
| Net interest income after provision for loan losses | 2,922,000 | 2,606,000 | 2,157,000 | 5,528,000 | 4,154,000 | |||||||||||
| Non-interest income: | ||||||||||||||||
| Service charges and fees | 16,000 | 18,000 | 19,000 | 34,000 | 32,000 | |||||||||||
| Other | 119,000 | 121,000 | 119,000 | 240,000 | 233,000 | |||||||||||
| Total non-interest income | 135,000 | 139,000 | 138,000 | 274,000 | 265,000 | |||||||||||
| Non-interest expense: | ||||||||||||||||
| Salaries and employee benefits | 1,057,000 | 1,027,000 | 972,000 | 2,084,000 | 1,896,000 | |||||||||||
| Occupancy and equipment | 194,000 | 208,000 | 205,000 | 402,000 | 332,000 | |||||||||||
| Other | 915,000 | 807,000 | 655,000 | 1,722,000 | 1,363,000 | |||||||||||
| Total non-interest expense | 2,166,000 | 2,042,000 | 1,832,000 | 4,208,000 | 3,591,000 | |||||||||||
| Net income before income taxes | $ | 891,000 | $ | 703,000 | $ | 463,000 | $ | 1,594,000 | $ | 828,000 | ||||||
| Provision for taxes | 359,000 | 301,000 | 171,000 | 660,000 | 291,000 | |||||||||||
| Net income | $ | 532,000 | $ | 402,000 | $ | 292,000 | $ | 934,000 | $ | 537,000 | ||||||
| Common Share Data | ||||||||||||||||
| Basic earnings per share | $ | 0.08 | $ | 0.06 | $ | 0.04 | $ | 0.14 | $ | 0.08 | ||||||
| Diluted earnings per share | $ | 0.08 | $ | 0.06 | $ | 0.04 | $ | 0.14 | $ | 0.08 | ||||||
| Weighted average shares outstanding | 6,524,741 | 6,524,741 | 6,524,741 | 6,524,741 | 6,522,754 | |||||||||||
| Weighted average shares outstanding - diluted | 6,630,666 | 6,609,775 | 6,533,694 | 6,621,665 | 6,530,378 | |||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170726005282/en/
Contacts:
James J. Kim, 530-863-4803
President &
Chief Executive Officer
Fax: 530-863-4849
or
Kevin R.
Watson, 530-863-4815
Executive Vice President & Chief Financial
Officer
Fax: 530-863-4849
