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

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

Business Wire

AUBURN, Calif. -- October 17, 2013

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 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)
                                                         
                                                               
                       September 30,       December 31,        September 30,
                       2013                2012                2012
ASSETS
Cash and cash          $  7,381,000        $  2,934,000        $  4,579,000
equivalents
Federal funds sold        765,000             -                   45,000
Available-for-sale
investment                119,560,000         98,574,000          97,478,000
securities, at fair
value
Loans, less
allowance for loan
losses of $2,276,000
at September 30,          103,032,000         85,042,000          81,952,000
2013, $2,064,000 at
December 31, 2012
and $1,914,000 at
September 30, 2012
Bank premises and         1,564,000           1,697,000           1,751,000
equipment, net
Accrued interest          590,000             640,000             574,000
receivable
Other real estate         880,000             973,000             993,000
owned
Federal Home Loan
Bank stock and other      1,555,000           1,723,000           1,723,000
securities
Bank-owned life           4,641,000           4,505,000           -
insurance policies
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 deposits            209,408,000         169,353,000         166,168,000
                                                               
Borrowings                -                   5,595,000           2,850,000
Accrued interest
payable and other        12,062,000         1,134,000          1,039,000
liabilities
                                                               
Total liabilities         221,470,000         176,082,000         170,057,000
                                                               
Shareholders' equity     20,587,000         21,685,000         20,676,000
                                                               
Total liabilities
and shareholders'      $  242,057,000      $  197,767,000      $  190,733,000
equity
                                                                  

COMMUNITY 1ST BANK
STATEMENTS OF INCOME DATA (Unaudited)
For the Three Months Ended September 30, 2013 and 2012
                                                                
                                                     2013          2012
Interest income:
Interest and fees on loans                           $ 1,367,000   $ 1,187,000
Interest on investment securities and
interest-bearing deposits in other financial          470,000      478,000
institutions
                                                                   
Total interest income                                 1,837,000    1,665,000
                                                                   
Interest expense:
Deposits                                               191,000       240,000
Borrowings                                            -            4,000
                                                                   
Total interest expense                                191,000      244,000
                                                                   
Net interest income                                    1,646,000     1,421,000
                                                                   
Provision for loan losses                             100,000      170,000
                                                                   
Net interest income after provision for loan          1,546,000    1,251,000
losses
                                                                   
Non-interest income:
Service charges and fees                               16,000        18,000
Gain on sales of available-for-sale investment         121,000       160,000
securities
Other                                                 105,000      72,000
                                                                   
Total non-interest income                             242,000      250,000
                                                                   
Non-interest expense:
Salaries and employee benefits                         808,000       659,000
Occupancy and equipment                                159,000       152,000
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            35,000       43,000
discount
                                                                   
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 outstanding                    5,449,242     5,449,242
Weighted average shares outstanding - diluted          6,470,086     5,450,000
                                                                   

COMMUNITY 1ST BANK
STATEMENTS OF INCOME DATA (Unaudited)
For the Nine Months Ended September 30, 2013 and 2012
                                                                
                                                     2013          2012
Interest income:
Interest and fees on loans                           $ 3,836,000   $ 3,293,000
Interest on investment securities and
interest-bearing deposits in other financial           1,408,000     1,647,000
institutions
                                                                   
Total interest income                                 5,244,000    4,940,000
                                                                   
Interest expense:
Deposits                                               625,000       727,000
Borrowings                                            4,000        9,000
                                                                   
Total interest expense                                629,000      736,000
                                                                   
Net interest income                                    4,615,000     4,204,000
                                                                   
Provision for loan losses                             310,000      630,000
                                                                   
Net interest income after provision for loan          4,305,000    3,574,000
losses
                                                                   
Non-interest income:
Service charges and fees                               49,000        52,000
Gain on sales of available-for-sale investment         574,000       541,000
securities
Other                                                 291,000      256,000
                                                                   
Total non-interest income                             914,000      849,000
                                                                   
Non-interest expense:
Salaries and employee benefits                         2,274,000     2,038,000
Occupancy and equipment                                451,000       446,000
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            103,370      59,000
discount
                                                                   
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 outstanding                    5,449,242     5,449,242
Weighted average shares outstanding - diluted          6,469,211     5,449,508
                                                                   

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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