Community 1st Bank Reports Results for the Quarter Ended March 31, 2014

  Community 1st Bank Reports Results for the Quarter Ended March 31, 2014  Business Wire  AUBURN, Calif. -- April 28, 2014  Community 1st Bank (OTCBB: CFBN), with $217.0 million in assets, today reported net income of $111 thousand for the quarter ended March 31, 2014.  Robert C. Haydon, President and CEO commented, “We are pleased to announce a strong start to 2014 with 36% growth in total loans and 19% growth in total deposits compared to a year ago. Our commitment to our clients and community is fueling our momentum in the marketplace.”  Total assets at March 31, 2014 were $217.0 million, an increase of $23.0 million, or 11.8%, from March31,2013. Community 1st Bank (“the Bank”) was successful in growing non-interest bearing deposits from $42.3 million at March 31, 2013 to $50.2 million at March 31, 2014, an increase of $7.9 million, or 18.7%. Total deposits increased from $164.1 million at March 31, 2013 to $194.7 million at March 31, 2014, an increase of $30.6 million, or 18.6%. Total loans increased from $91.7 million at March 31, 2013 to $124.7 million at March 31, 2014, an increase of $33.0 million, or 36.0%. When compared to the previous quarter, total assets increased $5.5 million, or 2.6%, from $211.6 million at December 31, 2013. Loans increased by $8.3 million, or 7.1%, from $116.4 million at December 31, 2013. Total deposits increased by $8.4 million, or 4.5%, from $186.3 million at December 31, 2013.  Operating Results - Quarter  The Bank reported net income for the first quarter ended March 31, 2014 of $111 thousand, which includes no provision for loan losses and loss on sales of securities of $19 thousand. This compares to net income of $414 thousand for the same period in 2013, which included $110 thousand in provision for loan losses and gain on sales of securities of $333 thousand. Net income decreased by $303 thousand, while the provision for loan losses decreased by $110 thousand and gain on sales of securities decreased by $352 thousand compared to the first quarter of 2013. The decrease in provisioning is reflective of the significant recoveries during the fourth quarter of 2013 exceeding the reserves needed for the loan growth and increase in nonperforming loans experienced during the first quarter of 2014.  Interest income increased by $87 thousand, or 5.1%, to total $1.8 million for the quarter ended March 31, 2014 compared to the same period in 2013. The growth in interest income is driven by the growth in the loan portfolio more than offsetting the decrease in interest income on investment securities. Interest expense decreased by $19 thousand, or 7.8%, to total $225 thousand for the quarter ended March31,2014 compared to the same period in 2013 driven by the increase in noninterest bearing deposits and reduction in rates paid on interest bearing deposits. Net interest income increased by $106 thousand, or 7.2%, for the first quarter of 2014 compared to the same period in 2013.  Credit Quality  The allowance for loan losses at March 31, 2014 was $2.3 million, or 1.8% of gross loans, compared to $2.7 million, or 2.3% of gross loans at December 31, 2013 and $2.1 million, or 2.3% of gross loans at March 31, 2013. Loan charge-offs for the quarter ended March31,2014 were $434 thousand with recoveries of $7 thousand compared to loan charge-offs of $55 thousand with recoveries of $8 thousand for the same period in 2013. Nonperforming loans at March31,2014 were $4.7 million, or 2.2% of total assets, an increase of $2.4 million, or 104.8%, from March 31, 2013. Nonperforming loans increased by $3.1 million, or 205.3%, from $1.5 million at December 31, 2013. The increase in nonperforming loans during the quarter is a result of one commercial real estate loan.  Capital  The Bank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 10.1%, Tier 1 Risk-based Capital ratio of 14.1% and Total Risk-based Capital ratio of 15.3% at March 31, 2014. At March 31, 2013 the Tier 1 Leverage ratio was 10.4%, the Tier 1 Risk-based Capital ratio was 16.1% and the Total Risk-based Capital ratio was 17.3%. The Bank’s capital is in excess of that required to be considered “well-capitalized” by regulatory standards.  Robert C. Haydon, President and Chief Executive Officer, commented, “The Bank has made significant progress over the past nine quarters in terms of both balance sheet growth and profitability. We will work diligently to continue those positive trends as well as to reduce our nonperforming assets.”  Community 1^st Bank is headquartered in Auburn, California, with branches in Roseville and Auburn and a loan production office in Sacramento, California. Community 1^st 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 BANK BALANCE SHEETS                                                                                    March 31, 2014     December 31,        March 31, 2013                                             2013                          (Unaudited)                            (Unaudited) ASSETS Cash and cash            $  18,433,000      $  4,719,000        $  2,352,000 equivalents Federal funds sold          909,000            -                   - Available-for-sale investment                  55,673,000         80,665,000          91,133,000 securities, at fair value Loans, less allowance for loan losses of $2,283,000 at March 31, 2014,          122,409,000        113,679,000         89,584,000 $2,710,000 at December 31, 2013 and $2,127,000 at March 31, 2013 Bank premises and           1,559,000          1,559,000           1,638,000 equipment, net Interest receivable         496,000            606,000             560,000 Other real estate           1,234,000          870,000             900,000 owned Federal Home Loan Bank stock and other        1,561,000          1,555,000           1,723,000 securities Bank-owned life             4,714,000          4,675,000           4,546,000 insurance policies Other assets               10,023,000        3,229,000          1,595,000                                                                  Total assets             $  217,011,000     $  211,557,000      $  194,031,000                                                                  LIABILITIES AND SHAREHOLDERS' EQUITY Deposits: Non-interest bearing     $  50,190,000      $  52,727,000       $  42,279,000 Interest bearing           144,501,000       133,575,000        121,811,000                                                                  Total deposits              194,691,000        186,302,000         164,090,000                                                                  Borrowings                  -                  3,365,000           7,210,000 Interest payable and       696,000           605,000            942,000 other liabilities                                                                  Total liabilities           195,387,000        190,272,000         172,242,000                                                                  Shareholders' equity       21,624,000        21,285,000         21,789,000                                                                  Total liabilities and shareholders'        $  217,011,000     $  211,557,000      $  194,031,000 equity                                                                    COMMUNITY 1ST BANK STATEMENTS OF INCOME DATA (Unaudited) For the Three Months Ended March 31, 2014 and 2013                                                                                                                 2014              2013 Interest income: Interest and fees on loans                       $ 1,472,000       $ 1,210,000 Interest on investment securities and interest-bearing deposits in other financial      333,000         508,000 institutions                                                                     Total interest income                             1,805,000       1,718,000                                                                     Interest expense: Deposits                                           225,000           242,000 Borrowings                                        -               2,000                                                                     Total interest expense                            225,000         244,000                                                                     Net interest income                                1,580,000         1,474,000                                                                     Provision for loan losses                         -               110,000                                                                     Net interest income after provision for loan      1,580,000       1,364,000 losses                                                                     Non-interest income: Service charges and fees                           16,000            16,000 (Loss) gain on sales of available-for-sale         (19,000   )       333,000 investment securities Other                                             95,000          93,000                                                                     Total non-interest income                         92,000          442,000                                                                     Non-interest expense: Salaries and employee benefits                     864,000           719,000 Occupancy and equipment                            139,000           140,000 Other                                             558,000         533,000                                                                     Total non-interest expense                        1,561,000       1,392,000                                                                     Net income                                       $ 111,000        $ 414,000                                                                     Net income                                       $ 111,000         $ 414,000 Preferred stock dividends and accretion of        35,000          33,000 discount                                                                     Net income available to common shareholders      $ 76,000         $ 381,000                                                                     Common Share Data Basic earnings per share                         $ 0.01            $ 0.07 Diluted earnings per share                       $ 0.01            $ 0.06                                                                     Weighted average shares outstanding                5,449,242         5,449,242 Weighted average shares outstanding -              6,487,614         6,468,326 diluted                                                                        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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