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Community 1st Bank Reports Results for the Second Quarter of 2010

^{Published on 2010-07-21 17:21:03 - Market Wire}
 

AUBURN, Calif.--([ BUSINESS WIRE ])--Community 1st Bank (OTCBB: CFBN), with $154.9 million in assets, today reported results for the quarter and six months ended June 30, 2010.

Total assets at June 30, 2010 were $154.9 million, an increase of $14.6 million, or 10.4%, from June30,2009. Community 1st Bank (athe Banka) was successful in growing its deposits from $112.3 million at June 30, 2009 to $131.4 million at June 30, 2010 an increase of $19.1 million, or 17.0%. Total loans decreased $11.3 million, or 13.3%, to total $73.4 million at June 30, 2010 from $84.7 million at June 30, 2009. When compared to the previous quarter, March 31, 2010, total assets decreased $5.3 million, or 3.3%, from $160.1 million at March 31, 2010. Loans increased by $370 thousand, or 0.5%, from $73.1 million at March 31, 2010. Deposits decreased by $9.1 million, or 6.5%, from $140.5 million at March 31, 2010.

The Bank reported net income for the second quarter, ended June 30, 2010, of $69 thousand, which includes $94 thousand in provision for loan losses and a gain on sale of securities of $104 thousand, compared to a net loss of $53 thousand, which includes $405 thousand in provision for loan losses and a gain on sale of securities of $371 thousand for the same period in 2009. This represents an improvement in net income of $122 thousand, while provision for loan losses decreased by $311 thousand compared to the second quarter of 2009. Interest income decreased by $48 thousand, or 2.8%, to total $1.7 million for the second quarter ended June 30, 2010 compared to the same period in 2009. Interest expense decreased by $3 thousand, or 0.8%, to total $370 thousand for the quarter ended June 30, 2010 compared to the same period in 2009. Net interest income decreased by $45 thousand for the second quarter of 2010 compared to the same period in 2009.

The Bank reported a net income for the six months ended June 30, 2010 of $73 thousand, which included $185 thousand of provision for loan losses and a gain on sale of securities of $104 thousand compared to net income of $271 thousand, which included $458 thousand of provision for loan losses, gain on sale of securities of $371 thousand and a gain on sale of property for the same period in 2009.

The allowance for loan losses at June 30, 2010 was $1.2 million, or 1.6% of gross loans, compared to $1.8 million, or 2.2% of total loans at June 30, 2009. Loan charge-offs for the quarter ended June30,2010 were $144 thousand with recoveries of $8 thousand compared to loan charge-offs of $9 thousand and no recoveries for the same period in 2009. Nonperforming loans at June 30, 2010 were $5.9 million, or 8.0% of total loans, a reduction of $4.3 million, or 42.2%, from December 31, 2009. There were nonperforming loans of $300 thousand at June 30, 2009.

The Bank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 10.0%, Tier 1 Risk-based Capital ratio of 17.9% and Total Risk-based Capital ratio of 19.2% at June 30, 2010. At June30, 2009 the Tier 1 Leverage ratio was 12.9%, Tier 1 Risk-based Capital ratio was 18.1% and Total Risk-based Capital ratio was 19.3%. The Banka™s capital is well in excess of that required to be considered awell-capitalizeda by regulatory standards.

Mark A. Lund, President and Chief Executive Officer, commented, aWe are pleased to report a second consecutive quarter of profitable operations, as the Bank continues to grow in our communities. We are beginning to experience a modest increase in loan demand, and look forward to serving the emerging credit needs of our customers. We remain focused on increasing revenue and reducing controllable expenses, and note improvement in net income. We are also very pleased with the 42% reduction in non-performing loans realized since December 2009, and remain committed to further reductions.a

Community 1^st Bank is headquartered in Auburn, California, with branches in Roseville, downtown Auburn and north 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 Banka™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.