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Community 1st Bancorp Reports Results for the Quarter Ended and Year Ended December 31, 2015

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AUBURN, Calif.--(BUSINESS WIRE)--

Community 1st Bancorp (OTCBB: CFBN), with $263.8 million in assets, today reported net income of $282 thousand for the quarter ended December 31, 2015, and net income of $1.22 million for the year ended December 31, 2015. Community 1st Bancorp (the "Company") became the parent company for Community 1st Bank (the "Bank") on December 29, 2015.

James J. Kim, President and CEO commented, "The results for our Company are very encouraging for the fourth quarter and twelve months ended December 31, 2015. 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. I want to give a big thank you to our employees for always stepping up and doing the right thing."

Total assets at December 31, 2015 were $263.8 million, representing an increase of $20.4 million from $243.4 million at September 30, 2015. The Company was successful in growing non-interest bearing deposits by $3.1 million from $62.6 million at September 30, 2015 to $65.7 million at December 31, 2015. Net loans grew by $9.3 million from $152.3 million at September 30, 2015 to $161.6 million at December 31, 2015. Total deposits increased by $15.4 million from $218.8 million at September 30, 2015 to $234.2 million at December 31, 2015.

When compared to December 31, 2014, total assets increased by $33.8 million, or 14.7%, primarily due to the increase in net loans of $16.9 million or 11.6% when compared to December 31, 2014. Total deposits increased from $206.1 million at December 31, 2014, to $234.2 million at December 31, 2015, an increase of $28.2 million, or 13.7%. Non-interest bearing deposits increased from $59.0 million at December 31, 2014, to $65.7 million at December 31, 2015.

Operating Results - Quarter

The Company reported net income for the quarter ended December 31, 2015 of $282 thousand, which includes no provision for loan losses, and no gains or losses related to loan sales or investment securities, and had pre-tax earnings of $439 thousand. This compares favorably to pre-tax income of $235 thousand for the fourth quarter of 2014, which was provided a benefit for income taxes of $819 thousand which brought net income up to $1.054 million. The Company had net interest income of $2.064 million for the quarter ended December 31, 2015 compared to $1.879 million for the quarter ended December 31, 2014. The Company did not record a provision for loan losses for the quarter ended December 31, 2015, but did record a provision for loan losses of $200 thousand for the quarter ended December 31, 2014. The Company had non-interest income of $124 thousand in the fourth quarter 2015 compared to $169 thousand, for the quarter ended December 31, 2014 which included $48 thousand in gains on sales of loans and sales of securities. The Company had non-interest expense $1.7 million in the fourth quarter of 2015 compared to $1.6 million for the fourth quarter of 2014.

Interest income increased by $220 thousand to total $2.3 million for the quarter ended December 31, 2015 compared to the same period in 2014. The growth in interest income was driven by the growth in the loan portfolio, more than offsetting the decrease in interest income from investment securities. Interest expense increased by $35 thousand to total $251 thousand for the quarter ended December 31, 2015 compared to the same period in 2014. Net interest income increased by $185 thousand for the fourth quarter of 2015 compared to the same period in 2014. The net interest margin for the quarter ended December 31, 2015 was 3.72% representing an increase of 14 basis points from 3.58% for the quarter ended December 31, 2014. The increase in interest income and the net interest margin was driven by the increase in average loans outstanding.

Operating Results - Year

The Company reported net income for the full-year 2015 of $1.2 million, which includes no provision for loan losses, gain on sales of loans of $163 thousand, and loss on sales of securities of $96 thousand. This compares to the Company's net income of $1.5 million for 2014, which included $380 thousand in provision for loan losses, gain on sales of loans of $157 thousand, and gains on sales of securities of $26 thousand. The Company had pre-tax earnings of $2.0 million for 2015 compared to pre-tax earnings of $668 thousand for 2014.

Interest income increased by $1.1 million, or 13.7%, to total $8.8 million for the twelve month period ended December 31, 2015 compared to the same period in 2014. Interest expense increased by $38 thousand, or 4.3%, to total $929 thousand for the twelve month period ended December 31, 2015 compared to the same period in 2014. Net interest income increased by $1.0 million, or 14.9%, for the twelve month period ended December 31, 2015 compared to the same period in 2014. Non-interest expense increased by $16 thousand, or 0.3%, to total $6.4 million for the twelve month period ended December 31, 2015 compared to the same period in 2014. The net interest margin for the twelve month period ended December 31, 2015 was 3.69% representing an increase of 41 basis points from 3.28% for the year ended December 31, 2014. The increase in interest income and net interest margin was driven by the increase in loans outstanding.

Credit Quality

The allowance for loan losses at December 31, 2015 was $2.7 million, or 1.67% of gross loans, compared to $2.6 million, or 1.76% of gross loans at December 31, 2014. There were no loan charge-offs or recoveries for the quarter ended December 31, 2015 compared to no loan charge-offs and recoveries of $1 thousand for the same period in 2014. Loan charge-offs for the twelve month period ended December 31, 2015 was $320 thousand with recoveries of $461 thousand compared to loan charge-offs of $534 thousand with recoveries of $42 thousand for the same period in 2014.

Nonperforming loans at December 31, 2015 were $217 thousand, representing a decrease of $3.7 million from the December 31, 2014 balance of $3.9 million, and other real estate owned at December 31, 2015 was $4.0 million, representing an increase of $3.2 million from the balance outstanding at December 31, 2014. Nonperforming loans at December 31, 2015 decreased by $3.7 million, or 94.4%, from $3.9 million at December 31, 2014 and other real estate owned increased by $3.2 million, or 408.7%, from $783 thousand at December 31, 2014. The decrease in nonperforming loans and subsequent increase in other real estate owned was related to one large credit that was foreclosed on and transferred from nonperforming loans into other real estate owned during the first quarter of 2015.

Capital

The Company maintains a strong capital position and raised $5.0 million in Subordinated Debentures during the fourth quarter of 2015 and down-streamed $4.4 million to the Bank. This strengthened the Bank's capital ratios to the following: Common Equity Tier 1 ratio of 14.6%, Tier 1 Leverage ratio of 11.2%, Tier 1 Risk-based Capital ratio of 14.3% and Total Risk-based Capital ratio of 15.5% at December 31, 2015. The Bank's capital is in excess of that required to be considered "well-capitalized" by regulatory standards.

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. We will be able to continue our growth with the formation of the holding company."

Community 1st Bancorp is a holding company for its Bank, Community 1st Bank. The Bank is headquartered in Auburn, California, with branches in Roseville and Auburn and a loan production office in 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
BALANCE SHEETS
         
 
 
December 31, 2015 December 31, 2014
(Unaudited)
ASSETS
Cash and cash equivalents $ 27,684,000 $ 12,563,000
Federal funds sold 2,590,000 152,000
Available-for-sale investment securities, at fair value 56,437,000 59,710,000

Loans, less allowance for loan losses of $2,742,000 at December 31, 2015 and $2,599,000 at December 31, 2014

161,611,000 144,756,000
Bank premises and equipment, net 1,397,000 1,459,000
Interest receivable 626,000 624,000
Other real estate owned 4,040,000 783,000
Federal Home Loan Bank stock and other securities 1,329,000 1,576,000
Bank-owned life insurance policies 4,986,000 4,834,000
Other assets   3,099,000   3,568,000
 
Total assets $ 263,799,000 $ 230,025,000
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 65,655,000 $ 58,995,000
Interest bearing   168,581,000   147,055,000
 
Total deposits 234,236,000 206,050,000
 

Subordinated Debentures, net of Debt Issuance costs of $110,000

4,890,000

-

Interest payable and other liabilities   601,000   551,000
 
Total liabilities 239,727,000 206,601,000
 
Shareholders' equity   24,072,000   23,424,000
 
Total liabilities and shareholders' equity $ 263,799,000 $ 230,025,000
 
 
COMMUNITY 1ST BANCORP
STATEMENTS OF INCOME DATA (Unaudited)
For the Three Months Ended December 31, 2015 and 2014
         
 
 
2015 2014
Interest income:
Interest and fees on loans $ 2,036,000 $ 1,755,000

Interest on investment securities and interest-bearing deposits in other financial institutions

  279,000     340,000  
 
Total interest income   2,315,000   2,095,000  
 
Interest expense:
Deposits   251,000   216,000  
 
Total interest expense   251,000   216,000  
 
Net interest income 2,064,000 1,879,000
 
Provision for loan losses   -   200,000  
 
Net interest income after provision for loan losses   2,064,000   1,679,000  
 
Non-interest income:
Service charges and fees 12,000 13,000
Gain on sales of available-for-sale investment securities - 23,000
Gain on sales of loans - 25,000
Other   112,000   108,000  
 
Total non-interest income   124,000   169,000  
 
Non-interest expense:
Salaries and employee benefits 891,000 836,000
Occupancy and equipment 152,000 141,000
Other   706,000   636,000  
 
Total non-interest expense   1,749,000   1,613,000  
 
Net income before provision (benefit) for income taxes 439,000 235,000
Provision (benefit) for income taxes   157,000   (819,000 )
 
Net income $ 282,000 $ 1,054,000  
 
Net income $ 282,000 $ 1,054,000
Preferred stock dividends and accretion of discount   36,000   35,000  
 
Net income available to common shareholders $ 246,000 $ 1,019,000  
 
Common Share Data
Basic earnings per share $ 0.04 $ 0.19
Diluted earnings per share $ 0.04 $ 0.16
 
Weighted average shares outstanding 5,649,872 5,494,937
Weighted average shares outstanding - diluted 6,520,337 6,515,150
 
 
COMMUNITY 1ST BANCORP
STATEMENT OF INCOME DATA (Unaudited)
For the Years Ended December 31, 2015 and 2014
         
 
 
2015 2014
Interest income:
Interest and fees on loans $ 7,592,000 $ 6,394,000

Interest on investment securities and interest-bearing deposits in other financial institutions

  1,164,000     1,308,000  
 
Total interest income   8,756,000     7,702,000  
 
Interest expense:
Deposits 929,000 890,000
Borrowings   -     1,000  
 
Total interest expense   929,000     891,000  
 
Net interest income 7,827,000 6,811,000
 
Provision for loan losses   -     380,000  
 
Net interest income after provision for loan losses   7,827,000     6,431,000  
 
Non-interest income:
Service charges and fees 46,000 58,000
(Loss) gain on sales of available-for-sale investment securities (96,000 ) 26,000
Gain on sales of loans 163,000 157,000
Other   449,000     412,000  
 
Total non-interest income   562,000     653,000  
 
Non-interest expense:
Salaries and employee benefits 3,359,000 3,427,000
Occupancy and equipment 588,000 565,000
Other   2,485,000     2,424,000  
 
Total non-interest expense   6,432,000     6,416,000  
 
Net income before provision (benefit) for income taxes 1,957,000 668,000
Provision (benefit) for income taxes   739,000     (819,000 )
 
Net income $ 1,218,000   $ 1,487,000  
 
Net income $ 1,218,000 $ 1,487,000
Preferred stock dividends and accretion of discount   141,000     140,000  
 
Net income available to common shareholders $ 1,077,000   $ 1,347,000  
 
 
Common Share Data
Basic earnings per share $ 0.19 $ 0.25
Diluted earnings per share $ 0.19 $ 0.23
 
Weighted average shares outstanding 5,533,989 5,466,769
Weighted average shares outstanding - diluted 6,530,483 6,487,680
 

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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