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Community 1st Bancorp Reports Results for the Quarter Ended March 31, 2017

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

Community 1st Bancorp (OTC markets: CFBN), with $373.5 million in total assets at March 31, 2017, today reported net income of $402 thousand, or $0.06 per diluted share for the period ended March 31, 2017, compared to $298.0 million in total assets at March 31, 2016, and net income of $245 thousand, or $0.04 per diluted share, for the period ended March 31, 2016.

James J. Kim, President and CEO commented, “We are pleased to announce continued strong growth in loans through the first quarter of 2017. The growth in core deposits enhanced our liquidity position at March 31, 2017 and provides the funding necessary to meet expected loan demand throughout the remainder of 2017. The continued success in growing and strengthening our balance sheet is translating to our income statement as evidenced by our 93% growth in pre-tax earnings, and this quarter’s earnings marks the best this Company’s ever seen.”

Community 1st Bancorp (“the Company”) had total assets at March 31, 2017 of $373.5 million, representing an increase of $75.5 million, or 25.3%, over total assets of $298.0 million at March 31, 2016. The Company was successful in growing loans by $54.2 million, or 32.9%, from $164.7 million at March 31, 2016 to $218.9 million at March 31, 2017. Non-interest bearing deposits grew by $39.3 million, or 46.8%, from $83.9 million at March 31, 2016 to $123.2 million at March 31, 2017. Total deposits increased by $71.8 million, or 26.8%, from $268.3 million at March 31, 2016 to $340.1 million at March 31, 2017. When comparing the March 31, 2017 balances to the previous quarter ended December 31, 2016, total assets increased from $358.6 million at December 31, 2016, to $373.5 million at March 31, 2017. Total deposits at March 31, 2017 were $340.1 million compared to $325.9 million at December 31, 2016, representing an increase of $14.2 million. Total loans were $218.9 million at March 31, 2017, compared to $209.1 million at December 31, 2016. Investment securities were $117.9 million at March 31, 2017 compared to $114.3 million at December 31, 2016.

Operating Results - Quarter

Net income for the first quarter of 2017 was $402 thousand, compared to net income of $245 thousand for the quarter ended March 31, 2016. The Company had net interest income of $2.7 million for the quarter ended March 31, 2017 compared to net interest income of $2.0 million for the quarter ended March 31, 2016. The Company paid interest on the subordinated debentures this year and incurred $155 thousand dollars in interest expense on the subordinated debentures for the quarter ended March 31, 2017 compared to interest expense on subordinated debentures of $103 thousand for the quarter ended March 31, 2016. The Company had $139 thousand in non-interest income for the period ended March 31, 2017, compared to $127 thousand for the period ended March 31, 2016. Non-interest expense was $2.0 million for the quarter ended March 31, 2017 compared to the $1.8 million for the quarter ended March 31, 2016.

Interest income totaled $3.2 million for the quarter ended March 31, 2017, representing an increase of $825 thousand, or 34.8%, when compared to the same period in 2016. The increase in interest income was driven by the higher average balances in the loan portfolio. Interest expense totaled $493 thousand, for the quarter ended March 31, 2017, representing an increase of $121 thousand, or 32.5%, when compared to the same period in 2016. Net interest income increased by $704 thousand, or 35.3%, for the first quarter of 2017 compared to the same period in 2016. The net interest margin for the quarter ended March 31, 2017 was 3.13% representing an increase of 3 basis points from 3.10% for the quarter ended March 31, 2016. The Company has been successful in growing the balance sheet and increasing average interest earning assets. The increased volume offset the lower yields, which resulted in growth of net interest income.

Credit Quality

The allowance for loan losses at March 31, 2017 was $3.1 million, or 1.4% of gross loans, compared to $2.7 million, or 1.7% of gross loans at March 31, 2016. Provision for loan losses were $95 thousand, loan charge-offs totaled $11 thousand and recoveries totaled $2 thousand for the quarter ended March 31, 2017, compared to no provision for loan losses, no loan charge-offs and with recoveries of $2 thousand for the same period in 2016. Nonperforming loans at March 31, 2017 were $874 thousand, or 0.23% of total assets, compared to $208 thousand, or 0.07% of total assets, at March 31, 2016.

Capital

The Company and Community 1st Bank (the “Bank”) continues to maintain a strong capital position which is forecasted into the foreseeable future. At March 31, 2017, the Company had the following capital ratios: Common Equity Tier 1 ratio of 10.3%, Tier 1 Leverage ratio of 8.5%, Tier 1 Capital ratio of 10.3% and Total Capital ratio of 14.6%. At March 31, 2017, the Bank had the following capital ratios: Common Equity Tier 1 ratio of 13.2%, Tier 1 Leverage ratio of 9.2%, Tier 1 Capital ratio of 13.2% and Total Capital ratio of 14.4%.

James J. Kim, President and Chief Executive Officer, commented, “The strong growth in loans and core deposits are a direct result of our proactive and responsive banking team at Community 1st Bancorp. We have been successful in finding solutions for our clients and building strong relationships in the communities we serve. Our balance sheet growth at March 31, 2017 will provide a solid foundation for improved earnings throughout 2017.”

Community 1st Bancorp is headquartered in Auburn, California, with branches in Roseville, Auburn and Sacramento, California. The 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 Company disclaims any obligation to update any such factors.

 
COMMUNITY 1ST BANCORP
CONSOLIDATED BALANCE SHEETS
       
 

March 31, 2017

December 31, 2016* March 31, 2016
(Unaudited) (Unaudited)
ASSETS
Cash and cash equivalents $ 22,000,000 $ 20,001,000 $ 42,808,000
Federal funds sold 1,552,000 1,914,000 6,572,000
Available-for-sale investment securities, at fair value 117,944,000 114,310,000 70,924,000

Loans, less allowance for loan losses of $3,067,000 at March 31, 2017, $2,986,000 at December 31, 2016 and $2,744,000 at March 31, 2016

215,845,000 206,156,000 161,940,000
Bank premises and equipment, net 1,809,000 1,778,000 1,364,000
Interest receivable 1,069,000 941,000 741,000
Other real estate owned 3,541,000 3,559,000 4,040,000
Federal Home Loan Bank stock and other securities 1,368,000 1,368,000 1,331,000
Bank-owned life insurance policies 5,172,000 5,136,000 5,023,000
Other assets   3,156,000   3,421,000   3,255,000
 
Total assets $ 373,456,000 $ 358,584,000 $ 297,998,000
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Non-interest bearing $ 123,199,000 $ 115,950,000 $ 83,852,000
Interest bearing   216,902,000   209,945,000   184,470,000
 

Total deposits

340,101,000 325,895,000 268,322,000
 
Subordinated debentures 7,845,000 7,841,000 4,893,000
Interest payable and other liabilities   762,000   600,000   583,000
 
Total liabilities 348,708,000 334,336,000 273,798,000
 
Shareholders' equity   24,748,000   24,248,000   24,200,000
 

Total liabilities and shareholders' equity

$ 373,456,000 $ 358,584,000 $ 297,998,000
 
*Derived from audited consolidated Financial Statements
 
COMMUNITY 1ST BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
For the Three Months Ended March 31, 2017 and 2016
     
March 31, 2017 March 31, 2016
Interest income:
Interest and fees on loans $ 2,515,000 $ 2,023,000

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

  679,000   346,000
 

Total interest income

  3,194,000   2,369,000
 
Interest expense:
Deposits 338,000 269,000
Subordinated debentures   155,000   103,000
 
Total interest expense   493,000   372,000
 
Net interest income 2,701,000 1,997,000
 
Provision for loan losses   95,000   -
 
Net interest income after provision for loan losses   2,606,000   1,997,000
 
Non-interest income:
Service charges and fees 18,000 13,000
Other   121,000   114,000
 
Total non-interest income   139,000   127,000
 
Non-interest expense:
Salaries and employee benefits 1,027,000 924,000
Occupancy and equipment 208,000 127,000
Other   807,000   708,000
 
Total non-interest expense   2,042,000   1,759,000
 
Net income before income taxes $ 703,000 $ 365,000
 
Provision for taxes $ 301,000 $ 120,000
 
Net income $ 402,000 $ 245,000
 
 
Common Share Data
Basic earnings per share $ 0.06 $ 0.04
Diluted earnings per share $ 0.06 $ 0.04
 
Weighted average shares outstanding 6,524,741 6,520,768
Weighted average shares outstanding - diluted 6,609,775 6,527,508

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