Community 1st Bancorp CFBN, with $350.8 million in assets, today reported net income of $365 thousand, or $0.06 per diluted share, for the quarter ended September 30, 2016 compared to $334 thousand, or $0.05 per diluted share, for the quarter ended September 30, 2015. Community 1st Bancorp ("the Company") reported net income of $902 thousand, or $0.14 per diluted share, for the nine months ended September 30, 2016 compared to $950 thousand, or $0.15 per diluted share, for the nine months ended September 30, 2015.
James J. Kim, President and CEO commented, "The results for our Company are very encouraging for the third quarter ended September 30, 2016. We have continued to improve earnings and grow non-interest bearing deposits, while building the necessary infrastructure to support our long-term goals and strategies."
Total assets at September 30, 2016 were $350.8 million, representing an increase during the quarter of $33.8 million from $317.0 million at June 30, 2016. The Company was successful in growing non-interest bearing deposits by $20.6 million from $98.4 million at June 30, 2016 to $119.0 million at September 30, 2016. Loans grew by $10.1 million from $178.2 million at June 30, 2016 to $188.3 million at September 30, 2016. Total deposits increased by $33.3 million from $286.6 million at June 30, 2016 to $319.9 million at September 30, 2016.
When compared to September 30, 2015, total assets increased by $107.4 million, or 44.1%, and total deposits increased from $218.8 million at September 30, 2015 to $319.9 million at September 30, 2016, an increase of $101.0 million, or 46.1%. Non-interest bearing deposits increased from $62.6 million at September 30, 2015 to $119.0 million at September 30, 2016. Loans increased $33.2 million, or 21.4%, at September 30, 2016 when compared to September 30, 2015.
Operating Results - Quarter
The Company reported net income for the quarter ended September 30, 2016 of $365 thousand, or $0.06 per diluted share, compared to $334 thousand, or $0.05 per diluted share, for the quarter ended September 30, 2015. The Company did not record provisions for loan losses or gains or losses related to loan or security sales for the quarter ended September 30, 2016, or for the quarter ended September 30, 2015. The Company had net interest income of $2.37 million for the quarter ended September 30, 2016 versus $1.96 million for the same period in 2015. Non-interest income was $140 thousand for the quarter ended September 30, 2016 this compares to $122 thousand in non-interest income for the same period in 2015. Non-interest expense was $1.93 million for the third quarter of 2016 compared to $1.56 million for the third quarter of 2015.
Interest income increased by $564 thousand, or 25.7%, to total $2.76 million for the quarter ended September 30, 2016 compared to the same period in 2015. The growth in interest income was driven by the growth in the loan portfolio and the growth in investment securities. Interest expense increased by $151 thousand, or 62.9%, to total $391 thousand for the quarter ended September 30, 2016 compared to the same period in 2015. The increase in interest expense is primarily due to the issuance of subordinated debentures in December of 2015 to facilitate the future growth of the Company. Net interest income increased by $413 thousand, or 21.1%, for the third quarter of 2016 compared to the same period in 2015. The net interest margin for the quarter ended September 30, 2016 was 3.34% representing a decrease of 32 basis points from 3.66% for the quarter ended September 30, 2015.
Operating Results - Year
The Company reported net income for the nine month period ended September 30, 2016 of $902 thousand, this compares to $950 thousand for the same period in 2015. The Company did not record any provisions for loan losses in either year. The Company had net interest income of $6.52 million for the ninth month period ended September 30, 2016 compared to $5.76 million for the same period in 2015. The Company had non-interest income of $405 thousand for the nine month period ended September 30, 2016 this compares to $438 thousand which includes gains on sales of loans of $163 thousand and losses on sales of securities of $96 thousand. The Company had non-interest expense of $5.52 million for the nine month period ended September 30, 2016 compared to $4.67 million for the same period 2015.
Interest income increased by $1.23 million, or 19.2%, to total $7.68 million for the nine month period ended September 30, 2016 compared to the same period in 2015. Interest expense increased by $474 thousand, or 70.0%, to total $1.15 million for the nine month period ended September 30, 2016 compared to the same period in 2015. The increase in interest expense is primarily due to the issuance of subordinated debentures in December of 2015. Net interest income increased by $760 thousand, or 13.2%, for the nine month period ended September 30, 2016 compared to the same period in 2015. Non-interest expense increased by $854 thousand, or 18.3%, to total $5.52 million for the nine month period ended September 30, 2016 compared to the same period in 2015. The net interest margin for the nine month period ended September 30, 2016 was 3.42% representing a decrease of 22 basis points from 3.64% for the period ended September 30, 2015.
Credit Quality
The allowance for loan losses at September 30, 2016 was $2.75 million, or 1.46% of gross loans, compared to $2.74 million, or 1.77% of gross loans at September 30, 2015. There were no loan charge-offs for the quarter ended September 30, 2016 and recoveries of $2 thousand compared to no loan charge-offs with recoveries of less than $1 thousand for the same period in 2015. There were no loan charge-offs for the nine month period ended September 30, 2016 and recoveries of $12 thousand compared to loan charge-offs of $320 thousand with recoveries of $461 thousand for the same period in 2015.
Nonperforming loans at September 30, 2016 were $694 thousand, or 0.20% of total assets, representing an increase of $464 thousand, or 201.7%, from September 30, 2015 and other real estate owned at September 30, 2016 was $3.96 million, representing a decrease of $86 thousand, or 2.1%. Nonperforming loans at September 30, 2016 increased by $477 thousand, or 219.8%, from $217 thousand at December 31, 2015 and other real estate owned decreased by $85 thousand, or 2.1%, from $4.04 million at December 31, 2015.
Capital
The Company and Community 1st Bank (the "Bank") continues to maintain a strong capital position under Basel III. The Company had Common Equity Tier 1 ratio of 11.6%, Tier 1 Leverage ratio of 8.3%, Tier 1 Risk-based Capital ratio of 11.6% and Total Risk-based Capital ratio of 15.1% at September 30, 2016. The Bank had Common Equity Tier 1 ratio of 13.7%, Tier 1 Leverage ratio of 9.1%, Tier 1 Risk-based Capital ratio of 13.7% and Total Risk-based Capital ratio of 14.95% at September 30, 2016.
James J. Kim, President and Chief Executive Officer, commented, "Community 1st Bancorp is well positioned to continue its balance sheet growth and improve core earnings by repositioning earning assets towards higher yielding loans and lowering the cost of our funding base by our continued focus on increasing non-interest bearing deposits."
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville, Auburn and Sacramento, California. Community 1st 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 | |||||||||||||
| 9/30/16 | 12/31/15* | 9/30/15 | |||||||||||
| (Unaudited) | (Unaudited) | ||||||||||||
| ASSETS | |||||||||||||
| Cash and cash equivalents | $ | 47,372,000 | $ | 27,684,000 | $ | 19,132,000 | |||||||
| Federal funds sold | 1,430,000 | 2,590,000 | 1,671,000 | ||||||||||
| Available-for-sale investment securities, at fair value | 100,864,000 | 56,437,000 | 54,883,000 | ||||||||||
|
Loans, less allowance for loan losses of $2,754,000 at September 30, 2016, $2,742,000 at December 31,2015 and $2,740,000 at September 30, 2015 |
185,500,000 | 161,611,000 | 152,288,000 | ||||||||||
| Bank premises and equipment, net | 1,677,000 | 1,397,000 | 1,339,000 | ||||||||||
| Interest receivable | 879,000 | 626,000 | 551,000 | ||||||||||
| Other real estate owned | 3,955,000 | 4,040,000 | 4,041,000 | ||||||||||
| Federal Home Loan Bank stock and other securities | 1,368,000 | 1,329,000 | 1,328,000 | ||||||||||
| Bank-owned life insurance policies | 5,098,000 | 4,986,000 | 4,948,000 | ||||||||||
| Other assets | 2,620,000 | 3,099,000 | 3,228,000 | ||||||||||
| Total assets | $ | 350,763,000 | $ | 263,799,000 | $ | 243,409,000 | |||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||
| Non-interest bearing | $ | 119,000,000 | $ | 65,655,000 | $ | 62,605,000 | |||||||
| Interest bearing | 200,856,000 | 168,581,000 | 156,231,000 | ||||||||||
| Total deposits | 319,856,000 | 234,236,000 | 218,836,000 | ||||||||||
| Subordinated debentures | 4,898,000 | 4,890,000 | - | ||||||||||
| Interest payable and other liabilities | 733,000 | 601,000 | 639,000 | ||||||||||
| Total liabilities | 325,487,000 | 239,727,000 | 219,475,000 | ||||||||||
| Shareholders' equity | 25,276,000 | 24,072,000 | 23,934,000 | ||||||||||
| Total liabilities and shareholders' equity | $ | 350,763,000 | $ | 263,799,000 | $ | 243,409,000 | |||||||
| *Derived from audited Consolidated Financial Statements | |||||||||||||
| COMMUNITY 1ST BANCORP | |||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | |||||||||||||||||||||||
| For the Three Months Ended: | For the Nine Months Ended: | ||||||||||||||||||||||
| 9/30/16 | 6/30/16 | 9/30/15 | 9/30/16 | 9/30/15 | |||||||||||||||||||
| Interest income: | |||||||||||||||||||||||
| Interest and fees on loans | $ | 2,197,000 | $ | 2,074,000 | $ | 1,941,000 | $ | 6,294,000 | $ | 5,556,000 | |||||||||||||
|
Interest on investment securities and interest-bearing deposits in other financial institutions |
563,000 | 472,000 | 255,000 | 1,381,000 | 885,000 | ||||||||||||||||||
| Total interest income | 2,760,000 | 2,546,000 | 2,196,000 | 7,675,000 | 6,441,000 | ||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||
| Deposits | 288,000 | 287,000 | 240,000 | 844,000 | 678,000 | ||||||||||||||||||
| Subordinated debentures | 103,000 | 102,000 | - | 308,000 | - | ||||||||||||||||||
| Total interest expense | 391,000 | 389,000 | 240,000 | 1,152,000 | 678,000 | ||||||||||||||||||
| Net interest income | 2,369,000 | 2,157,000 | 1,956,000 | 6,523,000 | 5,763,000 | ||||||||||||||||||
| Provision for loan losses | - | - | - | - | - | ||||||||||||||||||
| Net interest income after provision for loan losses | 2,369,000 | 2,157,000 | 1,956,000 | 6,523,000 | 5,763,000 | ||||||||||||||||||
| Non-interest income: | |||||||||||||||||||||||
| Service charges and fees | 21,000 | 19,000 | 10,000 | 53,000 | 34,000 | ||||||||||||||||||
| Gain on sales of loans | - | - | - | - | 163,000 | ||||||||||||||||||
| Loss on sales of available-for-sale investment securities | - | - | - | - | (96,000 | ) | |||||||||||||||||
| Other | 119,000 | 119,000 | 112,000 | 352,000 | 337,000 | ||||||||||||||||||
| Total non-interest income | 140,000 | 138,000 | 122,000 | 405,000 | 438,000 | ||||||||||||||||||
| Non-interest expense: | |||||||||||||||||||||||
| Salaries and employee benefits | 997,000 | 972,000 | 815,000 | 2,893,000 | 2,468,000 | ||||||||||||||||||
| Occupancy and equipment | 215,000 | 205,000 | 150,000 | 547,000 | 435,000 | ||||||||||||||||||
| Other | 721,000 | 655,000 | 591,000 | 2,084,000 | 1,766,000 | ||||||||||||||||||
| Total non-interest expense | 1,933,000 | 1,832,000 | 1,556,000 | 5,524,000 | 4,669,000 | ||||||||||||||||||
|
Net income before provision for taxes |
$ | 576,000 | $ | 463,000 | $ | 522,000 | $ | 1,404,000 | $ | 1,532,000 | |||||||||||||
| Provision for taxes | 211,000 | 171,000 | 188,000 | 502,000 | 582,000 | ||||||||||||||||||
| Net income | $ | 365,000 | $ | 292,000 | $ | 334,000 | $ | 902,000 | $ | 950,000 | |||||||||||||
| Net income | $ | 365,000 | $ | 292,000 | $ | 334,000 | $ | 902,000 | $ | 950,000 | |||||||||||||
| Preferred stock dividends | - | - | 35,000 | - | 105,000 | ||||||||||||||||||
| Net income available to common shareholders | $ | 365,000 | $ | 292,000 | $ | 299,000 | $ | 902,000 | $ | 845,000 | |||||||||||||
| Common Share Data | |||||||||||||||||||||||
| Basic earnings per share | $ | 0.06 | $ | 0.04 | $ | 0.05 | $ | 0.14 | $ | 0.15 | |||||||||||||
| Diluted earnings per share | $ | 0.06 | $ | 0.04 | $ | 0.05 | $ | 0.14 | $ | 0.15 | |||||||||||||
| Weighted average shares outstanding | 6,524,741 | 6,524,741 | 5,494,937 | 6,523,421 | 5,494,937 | ||||||||||||||||||
| Weighted average shares outstanding - diluted | 6,555,049 | 6,533,694 | 6,518,940 | 6,536,223 | 6,516,191 | ||||||||||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20161027006977/en/
Community 1st Bancorp
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
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