Business & Finance
Business and Finance
Business and Finance
Tue, July 12, 2011
Mon, July 11, 2011 Community 1st Bank Reports Results for the Quarter Ended June 30, 2011
AUBURN, Calif.--([ BUSINESS WIRE ])--Community 1st Bank (OTCBB:CFBN), with $156.6 million in assets, today reported results for the quarter ended June 30, 2011 with net earnings of $115 thousand for the quarter, a 67% improvement from the same period in 2010 and a significant improvement compared to the net loss for the first quarter of 2011.
Total assets at June 30, 2011 were $156.6 million, an increase of $1.7 million, or 1.1%, from June30,2010. Community 1st Bank (athe Banka) was successful in growing non-interest bearing deposits from $27.3 million at June 30, 2010 to $28.7 million at June 30, 2011, an increase of 5.5%, enhancing the deposit portfolio mix and improving the Banka™s cost of funds. Total deposits increased from $131.4 million at June 30, 2010 to $132.7 million at June 30, 2011, an increase of 1.0%. Total loans decreased from $73.4 million at June 30, 2010 to $69.2 million at June 30, 2011, a decrease of $4.2 million, or 5.7%. When compared to the previous quarter, total assets increased $2.3 million, or 1.5%, from $154.3 million at March 31, 2011. Loans increased by $0.2 million, or 0.3%, from $69.1 million at March 31, 2011. Non-interest bearing deposits increased by $3.4 million, or 13.4%, from $25.3 million at March 31, 2011. Total deposits decreased by $5.9 million, or 4.2%, from $138.6 million at March31,2011, primarily driven by a decrease in higher cost time deposits.
The Bank reported net income for the quarter ended June 30, 2011 of $115 thousand, which includes $40 thousand in provision for loan losses and a gain on sale of securities of $35 thousand. This compares to net income of $69 thousand for the same period in 2010, which included $94 thousand in provision for loan losses and a gain on sale of securities of $104 thousand. Net income increased by $46 thousand, while the provision for loan losses decreased by $54 thousand and gain on sale of securities decreased by $69 thousand compared to the second quarter of 2010. Interest income decreased by $150 thousand, or 9.0%, to total $1.5 million for the quarter ended June 30, 2011 compared to the same period in 2010, primarily driven by a decrease in yields. Interest expense decreased by $134 thousand, or 36.2%, to total $236 thousand for the quarter ended June30,2011 compared to the same period in 2010, primarily driven by a decrease in rates. Net interest income decreased by $16 thousand, or 1.2%, for the second quarter of 2011 compared to the same period in 2010. Non-interest expense increased by $6 thousand, or 0.5%, to total $1.3 million for the quarter ended June 30, 2011 compared to the quarter ended June 30, 2010.
The Bank reported a net loss for the six months ended June 30, 2011 of $367 thousand, which includes $457 thousand in provision for loan losses and a gain on sale of securities of $16 thousand. This compares to net income of $73 thousand for the same period in 2010, which included $185 thousand in provision for loan losses and a gain on sale of securities of $104 thousand. Net income decreased by $440 thousand, while the provision for loan losses increased by $272 thousand and gain on sale of securities decreased by $88 thousand compared to the six month period ended June 30, 2010. Interest income decreased by $378 thousand, or 11.3%, to total $3.0 million for the six month period ended June30, 2011 compared to the same period in 2010. Interest expense decreased by $237 thousand, or 31.5%, to total $515 thousand for the six month period ended June 30,2011 compared to the same period in 2010. Net interest income decreased by $141 thousand, or 5.4%, for the six month period ended June30, 2011 compared to the same period in 2010. Non-interest expense increased by $55 thousand, or 2.2%, to total $2.6 million for the six months ended June 30, 2011 compared to the same period in 2010.
The allowance for loan losses at June 30, 2011 was $1.2 million, or 1.8% of gross loans, compared to $1.3 million, or 1.8% of gross loans at December 31, 2010 and $1.2 million, or 1.6% of gross loans at June 30, 2010. Loan charge-offs for the quarter ended June 30,2011 were $107 thousand with recoveries of $21 thousand compared to loan charge-offs of $144 thousand with recoveries of $8 thousand for the same period in 2010. Nonperforming loans at June 30,2011 were $6.9 million, or 10.0% of gross loans, an increase of $995 thousand, or 16.9%, from June 30, 2010. The Bank has made continued progress in decreasing nonperforming loans except for one credit totaling $2.1 million which migrated to nonperforming during the first quarter of 2011.
The Bank continues to maintain a strong capital position with a Tier 1 Leverage ratio of 9.7%, Tier 1 Risk-based Capital ratio of 16.7% and Total Risk-based Capital ratio of 18.0% at June 30, 2011. At June30, 2010 the Tier 1 Leverage ratio was 10.0%, Tier 1 Risk-based Capital ratio was 17.9% and Total Risk-based Capital ratio was 19.2%. The Banka™s capital is in excess of that required to be considered awell-capitalizeda by regulatory standards.
Mark A. Lund, President and Chief Executive Officer, commented, aWe are very pleased with our profitable quarter and our success increasing non-interest bearing deposits, a highly coveted deposit category, by 24% during the first six months of 2011. The composition of our deposit portfolio has resulted in a very low cost of funds. We remain focused on improving asset quality and see improvement that should help control loan loss provisions. We are optimistic that our balance sheet position coupled with increasing quality loan demand from a sustained improvement in economic conditions will result in continued balance sheet growth and profitability.a
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville and 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 SHEETS (Unaudited) | |||||||||
| June 30, 2011 | December 31, 2010 | June 30, 2010 | |||||||
| ASSETS | |||||||||
| Cash and due from banks | $ | 3,242,000 | $ | 13,917,000 | $ | 1,799,000 | |||
| Federal funds sold | - | 1,665,000 | - | ||||||
| Interest-bearing deposits in other financial institutions | - | 1,225,000 | 8,796,000 | ||||||
| Available-for-sale investment securities, at fair value | 78,701,000 | 62,287,000 | 65,177,000 | ||||||
Loans, less allowance for loan losses of $1,220,000 at June 30, 2011, $1,268,000 at December 31, 2010 and $1,196,000 at June 30, 2010 | 68,027,000 | 68,644,000 | 72,229,000 | ||||||
| Bank premises and equipment, net | 1,927,000 | 2,011,000 | 2,293,000 | ||||||
| Other real estate owned | 694,000 | 694,000 | 500,000 | ||||||
| Federal Home Loan Bank stock and other securities | 1,474,000 | 1,452,000 | 1,202,000 | ||||||
| Accrued interest receivable and other assets | 2,521,000 | 2,696,000 | 2,861,000 | ||||||
| Total assets | $ | 156,586,000 | $ | 154,591,000 | $ | 154,857,000 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
| Deposits: | |||||||||
| Non-interest bearing | $ | 28,745,000 | $ | 23,188,000 | $ | 27,260,000 | |||
| Interest bearing | 103,955,000 | 115,085,000 | 104,112,000 | ||||||
| Total deposits | 132,700,000 | 138,273,000 | 131,372,000 | ||||||
| Borrowings | 8,260,000 | 1,000,000 | 5,400,000 | ||||||
| Accrued interest payable and other liabilities | 576,000 | 653,000 | 1,304,000 | ||||||
| Total liabilities | 141,536,000 | 139,926,000 | 138,076,000 | ||||||
| Shareholders' equity | 15,050,000 | 14,665,000 | 16,781,000 | ||||||
| Total liabilities and shareholders' equity | $ | 156,586,000 | $ | 154,591,000 | $ | 154,857,000 | |||
| COMMUNITY 1ST BANK STATEMENT OF OPERATIONS DATA (Unaudited) For the Three Months Ended June 30, 2011 and 2010 | ||||||
| 2011 | 2010 | |||||
| Interest income: | ||||||
| Interest and fees on loans | $ | 995,000 | $ | 1,063,000 | ||
Interest on investment securities and interest-bearing deposits in other financial institutions | 521,000 | 602,000 | ||||
| Interest on Federal funds sold | - | 1,000 | ||||
| Total interest income | 1,516,000 | 1,666,000 | ||||
| Interest expense: | ||||||
| Deposits | 232,000 | 362,000 | ||||
| Borrowings | 4,000 | 8,000 | ||||
| Total interest expense | 236,000 | 370,000 | ||||
| Net interest income | 1,280,000 | 1,296,000 | ||||
| Provision for loan losses | 40,000 | 94,000 | ||||
| Net interest income after provision for loan losses | 1,240,000 | 1,202,000 | ||||
| Non-interest income: | ||||||
| Service charges and fees | 23,000 | 20,000 | ||||
| Gain on sales of available-for-sale investment securities | 35,000 | 104,000 | ||||
| Other | 131,000 | 51,000 | ||||
| Total non-interest income | 189,000 | 175,000 | ||||
| Non-interest expense: | ||||||
| Salaries and employee benefits | 704,000 | 663,000 | ||||
| Occupancy and equipment | 153,000 | 182,000 | ||||
| Other | 457,000 | 463,000 | ||||
| Total non-interest expense | 1,314,000 | 1,308,000 | ||||
| Net income | $ | 115,000 | $ | 69,000 | ||
| Net income | $ | 115,000 | $ | 69,000 | ||
| Preferred stock accretion of discount | 8,000 | 8,000 | ||||
| Net income available to common shareholders | $ | 107,000 | $ | 61,000 | ||
| Basic income per share | $ | 0.06 | $ | 0.03 | ||
| Weighted average number of shares outstanding | 1,760,000 | 1,760,000 | ||||
| COMMUNITY 1ST BANK STATEMENT OF OPERATIONS DATA (Unaudited) For the Six Months Ended June 30, 2011 and 2010 | |||||||
| 2011 | 2010 | ||||||
| Interest income: | |||||||
| Interest and fees on loans | $ | 1,933,000 | $ | 2,121,000 | |||
Interest on investment securities and interest-bearing deposits in other financial institutions | 1,044,000 | 1,232,000 | |||||
| Interest on Federal funds sold | - | 2,000 | |||||
| Total interest income | 2,977,000 | 3,355,000 | |||||
| Interest expense: | |||||||
| Deposits | 506,000 | 731,000 | |||||
| Borrowings | 9,000 | 21,000 | |||||
| Total interest expense | 515,000 | 752,000 | |||||
| Net interest income | 2,462,000 | 2,603,000 | |||||
| Provision for loan losses | 457,000 | 185,000 | |||||
| Net interest income after provision for loan losses | 2,005,000 | 2,418,000 | |||||
| Non-interest income: | |||||||
| Service charges and fees | 47,000 | 35,000 | |||||
| Gain on sales of available-for-sale investment securities | 16,000 | 104,000 | |||||
| Other | 171,000 | 67,000 | |||||
| Total non-interest income | 234,000 | 206,000 | |||||
| Non-interest expense: | |||||||
| Salaries and employee benefits | 1,405,000 | 1,324,000 | |||||
| Occupancy and equipment | 322,000 | 358,000 | |||||
| Other | 879,000 | 869,000 | |||||
| Total non-interest expense | 2,606,000 | 2,551,000 | |||||
| Net (loss) income | $ | (367,000 | ) | $ | 73,000 | ||
| Net (loss) income | $ | (367,000 | ) | $ | 73,000 | ||
| Preferred stock dividends and accretion of discount | 16,000 | 51,000 | |||||
| Net (loss) income available to common shareholders | $ | (383,000 | ) | $ | 22,000 | ||
| Basic (loss) income per share | $ | (0.22 | ) | $ | 0.01 | ||
| Weighted average number of shares outstanding | 1,760,000 | 1,760,000 | |||||
