Business & Finance
Business and Finance
Business and Finance
Tue, October 26, 2010
Mon, October 25, 2010 Community 1st Bank Reports Results for the Third Quarter of 2010
AUBURN, Calif.--([ BUSINESS WIRE ])--Community 1st Bank (OTCBB:CFBN), with $154.0 million in assets, today reported results for the quarter and nine months ended September 30, 2010.
Total assets at September 30, 2010 were $154.0 million, an increase of $1.2 million, or 0.8%, from September30,2009. Community 1st Bank (athe Banka) was successful in growing its deposits from $118.8 million at September 30, 2009 to $135.8 million at September 30, 2010, an increase of $16.9 million, or 14.2%. Total loans decreased $6.0 million, or 7.6%, to total $73.3 million at September 30, 2010 from $79.3 million at September 30, 2009. When compared to the previous quarter, June 30, 2010, total assets decreased $900 thousand, or 0.6%, from $154.9 million at June 30, 2010. Loans decreased by $143 thousand, or 0.2%, from $73.4 million at June 30, 2010. Deposits increased by $4.4 million, or 3.3%, from $131.4 million at June 30, 2010.
The Bank reported net loss for the third quarter, ended September 30, 2010, of $167 thousand, which includes $835 thousand in provision for loan losses and a gain on sale of securities of $656 thousand, compared to a net loss of $498 thousand, which includes $615 thousand in provision for loan losses and a gain on sale of securities of $8 thousand for the same period in 2009. This represents an improvement in net loss of $331 thousand, while provision for loan losses increased by $220 thousand compared to the third quarter of 2009. Interest income decreased by $158 thousand, or 8.8%, to total $1.6 million for the third quarter ended September 30, 2010 compared to the same period in 2009. Interest expense decreased by $53 thousand, or 13.4%, to total $343 thousand for the quarter ended September 30, 2010 compared to the same period in 2009. Net interest income decreased by $104 thousand for the third quarter of 2010 compared to the same period in 2009.
The Bank reported a net loss for the nine months ended September 30, 2010 of $94 thousand, which included $1.0 million of provision for loan losses and a gain on sale of securities of $760 thousand compared to net loss of $227 thousand for the nine months ended September 30, 2009, which included $1.1 million of provision for loan losses, gain on sale of securities of $379 thousand and a gain on sale of property of $468 thousand.
The allowance for loan losses at September 30, 2010 was $1.9 million, or 2.6% of gross loans, compared to $1.9 million, or 2.5% of gross loans at September 30, 2009. Loan charge-offs for the quarter ended September30,2010 were $165 thousand with recoveries of $1 thousand compared to loan charge-offs of $500 thousand and no recoveries for the same period in 2009. Nonperforming loans at September 30, 2010 were $7.1 million, or 9.8% of total loans, a reduction of $3.1 million, or 30.4%, from December 31, 2009. There were nonperforming loans of $3.1 million at September 30, 2009.
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 18.1% and Total Risk-based Capital ratio of 19.3% at September 30, 2010. At September30, 2009 the Tier 1 Leverage ratio was 11.8%, Tier 1 Risk-based Capital ratio was 18.2% and Total Risk-based Capital ratio was 19.5%. 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 continue working with customers challenged by the economic environment, and recognize loan risk as it emerges. The loan loss reserve was substantially increased to provide for potential losses, resulting in a loss for the quarter and year-to-date. We remain focused on producing a positive operating result by year-end. In September, we opened a mortgage loan department, and now offer mortgage loans within our communities. We believe this department will contribute to our overall results.a
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville, downtown Auburn and north Auburn, California. Community 1st 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.
| COMMUNITY 1ST BANK | |||||||||
| BALANCE SHEET DATA (Unaudited) | |||||||||
| As of September 30, 2010 and December 31, 2009 | |||||||||
| September 30, 2010 | December 31, 2009 | September 30, 2009 | |||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 1,347,000 | $ | 2,022,000 | $ | 1,413,000 | |||
| Federal funds sold | 1,945,000 | - | - | ||||||
| Interest-bearing deposits in other financial institutions | 7,690,000 | 9,281,000 | 2,015,000 | ||||||
| Available-for-sale investment securities, at fair value | 65,153,000 | 60,467,000 | 65,834,000 | ||||||
Loans, less allowance for loan losses of $1,867,000 at September 30, 2010 and $2,532,000 at December 31, 2009 | 71,415,000 | 75,343,000 | 77,340,000 | ||||||
| Bank premises and equipment, net | 2,224,000 | 2,464,000 | 2,494,000 | ||||||
| Other real estate owned | - | 500,000 | 500,000 | ||||||
| Federal Home Loan Bank stock and other securities | 1,452,000 | 1,026,000 | 991,000 | ||||||
| Accrued interest receivable and other assets | 2,733,000 | 2,976,000 | 2,143,000 | ||||||
| Total assets | $ | 153,959,000 | $ | 154,079,000 | $ | 152,730,000 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Deposits: | |||||||||
| Non-interest bearing | $ | 21,717,000 | $ | 17,548,000 | $ | 16,668,000 | |||
| Interest bearing | 114,037,000 | 113,257,000 | 102,170,000 | ||||||
| Total deposits | 135,754,000 | 130,805,000 | 118,838,000 | ||||||
| Borrowings | 1,000,000 | 6,185,000 | 14,885,000 | ||||||
| Accrued interest payable and other liabilities | 1,028,000 | 1,045,000 | 1,438,000 | ||||||
| Total liabilities | 137,782,000 | 138,035,000 | 135,161,000 | ||||||
| Shareholders' equity | 16,177,000 | 16,044,000 | 17,569,000 | ||||||
| Total liabilities and shareholders' equity | $ | 153,959,000 | $ | 154,079,000 | $ | 152,730,000 | |||
| COMMUNITY 1ST BANK | |||||||||
| STATEMENT OF OPERATIONS DATA (Unaudited) | |||||||||
| For the Nine Months Ended September 30, 2010 and 2009 | |||||||||
| For the Nine Months Ended, | |||||||||
| September 30, 2010 | September 30, 2009 | ||||||||
| Interest income: | |||||||||
| Interest and fees on loans | $ | 3,222,000 | $ | 3,823,000 | |||||
Interest on investment securities and interest-bearing deposits in other financial institutions | 1,777,000 | 1,377,000 | |||||||
| Interest on Federal funds sold | 2,000 | 6,000 | |||||||
| Total interest income | 5,001,000 | 5,206,000 | |||||||
| Interest expense: | |||||||||
| Deposits | 1,068,000 | 1,170,000 | |||||||
| Borrowings | 27,000 | 58,000 | |||||||
| Total interest expense | 1,095,000 | 1,228,000 | |||||||
| Net interest income | 3,906,000 | 3,978,000 | |||||||
| Provision for loan losses | 1,020,000 | 1,073,000 | |||||||
| Net interest income after provision for loan losses | 2,886,000 | 2,905,000 | |||||||
| Non-interest income: | |||||||||
| Service charges and fees | 55,000 | 40,000 | |||||||
| Gain on sale of property | - | 468,000 | |||||||
| Gain on sales of available-for-sale investment securities | 760,000 | 379,000 | |||||||
| Other | 93,000 | 45,000 | |||||||
| Total non-interest income | 908,000 | 932,000 | |||||||
| Non-interest expense: | |||||||||
| Salaries and employee benefits | 2,009,000 | 1,886,000 | |||||||
| Occupancy and equipment | 527,000 | 641,000 | |||||||
| Other | 1,352,000 | 1,537,000 | |||||||
| Total non-interest expense | 3,888,000 | 4,064,000 | |||||||
| Net loss | $ | (94,000 | ) | $ | (227,000 | ) | |||
| Net loss | (94,000 | ) | (227,000 | ) | |||||
| Preferred stock dividends and accretion of discount | 94,000 | 94,000 | |||||||
| Net loss available to common shareholders | $ | (188,000 | ) | $ | (321,000 | ) | |||
| Basic loss per share | $ | (0.11 | ) | $ | (0.18 | ) | |||
| Weighted average number of shares outstanding | 1,760,000 | 1,760,000 | |||||||
