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
 
Press spacebar to pause and continue. Press esc to stop.