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

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

Business Wire

AUBURN, Calif. -- July 29, 2013

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 1^st Bank is headquartered in Auburn, California, with branches in
Roseville and Auburn, California. Community 1^st 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, 2013     December 31,        June 30, 2012
                                             2012
ASSETS
Cash and cash              $ 3,985,000       $  2,934,000        $ 2,331,000
equivalents
Federal funds sold           600,000            -                  -
Available-for-sale
investment securities,       92,475,000         98,574,000         99,926,000
at fair value
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,       94,941,000         85,042,000         78,508,000
2012
Bank premises and            1,598,000          1,697,000          1,749,000
equipment, net
Accrued interest             549,000            640,000            617,000
receivable
Other real estate            890,000            973,000            1,013,000
owned
Federal Home Loan Bank
stock and other              1,590,000          1,723,000          1,723,000
securities
Bank-owned life              4,589,000          4,505,000          -
insurance policies
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 deposits               176,288,000        169,353,000        153,617,000
                                                                 
Borrowings                   -                  5,595,000          12,645,000
Accrued interest
payable and other           5,628,000         1,134,000         955,000
liabilities
                                                                 
Total liabilities            181,916,000        176,082,000        167,217,000
                                                                 
Shareholders' equity        21,082,000        21,685,000        20,387,000
                                                                 
Total liabilities and      $ 202,998,000     $  197,767,000      $ 187,604,000
shareholders' equity
                                                                   
                                                                   

COMMUNITY 1ST BANK
STATEMENT OF OPERATIONS DATA (Unaudited)
For the Three Months Ended June 30, 2013 and 2012
                                                              
                                                   2013            2012
Interest income:
Interest and fees on loans                         $ 1,259,000     $ 1,087,000
Interest on investment securities and
interest-bearing deposits in other financial        430,000        556,000
institutions
                                                                   
Total interest income                               1,689,000      1,643,000
                                                                   
Interest expense:
Deposits                                             192,000         239,000
Borrowings                                          2,000          2,000
                                                                   
Total interest expense                              194,000        241,000
                                                                   
Net interest income                                  1,495,000       1,402,000
                                                                   
Provision for loan losses                           100,000        220,000
                                                                   
Net interest income after provision for loan        1,395,000      1,182,000
losses
                                                                   
Non-interest income:
Service charges and fees                             17,000          19,000
Gain on sales of available-for-sale investment       120,000         161,000
securities
Other                                               93,000         99,000
                                                                   
Total non-interest income                           230,000        279,000
                                                                   
Non-interest expense:
Salaries and employee benefits                       747,000         650,000
Occupancy and equipment                              152,000         145,000
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          35,000         8,000
discount
                                                                   
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 outstanding                  5,449,242       5,449,242
Weighted average shares outstanding - diluted        6,469,302       5,450,088
                                                                   
                                                                   
                                                                   
COMMUNITY 1ST BANK
STATEMENT OF OPERATIONS DATA (Unaudited)
For the Six Months Ended June 30, 2013 and 2012
                                                                   
                                                   2013            2012
Interest income:
Interest and fees on loans                         $ 2,469,000     $ 2,106,000
Interest on investment securities and
interest-bearing deposits in other financial        938,000        1,169,000
institutions
                                                                   
Total interest income                               3,407,000      3,275,000
                                                                   
Interest expense:
Deposits                                             434,000         487,000
Borrowings                                          4,000          5,000
                                                                   
Total interest expense                              438,000        492,000
                                                                   
Net interest income                                  2,969,000       2,783,000
                                                                   
Provision for loan losses                           210,000        460,000
                                                                   
Net interest income after provision for loan        2,759,000      2,323,000
losses
                                                                   
Non-interest income:
Service charges and fees                             33,000          34,000
Gain on sales of available-for-sale investment       453,000         381,000
securities
Other                                               186,000        184,000
                                                                   
Total non-interest income                           672,000        599,000
                                                                   
Non-interest expense:
Salaries and employee benefits                       1,466,000       1,379,000
Occupancy and equipment                              292,000         294,000
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          68,000         16,000
discount
                                                                   
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 outstanding                  5,449,242       5,449,242
Weighted average shares outstanding - diluted        6,468,772       5,449,244

Contact:

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
 
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