Community 1st Bancorp (OTC Markets:CFBN), with $411.4 million in total assets, today reported net income of $648 thousand, or $0.10 per diluted share, for the quarter ended September 30, 2017 compared to $365 thousand, or $0.06 per diluted share, for the quarter ended September 30, 2016. Community 1st Bancorp ("the Company") reported net income of $1.6 million, or $0.24 per diluted share, for the nine months ended September 30, 2017 compared to $902 thousand, or $0.14 per diluted share, for the nine months ended September 30, 2016.
James J. Kim, President and CEO commented, "The results for our Company are outstanding for the third quarter ended September 30, 2017. We have generated significant improvement to earnings and great growth in non-interest bearing deposits. These outstanding results are due to the best team of bankers in our region consistently exceeding expectations of the marketplace."
As an update to the previously announced transaction with First Foundation Inc. FFWM, all required regulatory approvals have been received and the closing of the acquisition is expected to occur in November 2017, subject to the receipt of our shareholder approval.
Total assets at September 30, 2017 were $411.4 million, representing an increase of $60.6 million, or 17.3%, from $350.8 million at September 30, 2016. The Company was successful in growing loans by $39.5 million, or 21.0% from $188.3 million at September 30, 2016 to $227.7 million at September 30, 2017. Non-interest bearing deposits grew by $22.7 million, or 19.1%, from $119.0 million at September 30, 2016 to $141.7 million at September 30, 2017. Total deposits increased by $55.4 million, or 17.3% from $319.9 million at September 30, 2016 to $375.3 million at September 30, 2017. Total assets increased by $52.8 million from $358.6 million at December 31, 2016, and loans increased by $18.6 million from $209.1 million at December 31, 2016. Total deposits increased by $49.4 million, from $325.9 million at December 31, 2016 and non-interesting bearing deposits increased by $25.7 million, from $116.0 million at December 31, 2016.
Operating Results - Quarter
Net income was $648 thousand for the quarter ended September 30, 2017 compared to $365 thousand for the quarter ended September 30, 2016. During the quarter ended September 30, 2017, the Company's net interest income totaled $3.0 million compared to $2.4 million for the quarter ended September 30, 2016. The Company did not book any provision for loan losses, non-interest income was $142 thousand, and non-interest expense was $2.1 million for the quarter ended September 30, 2017, compared to zero provision for loan losses, non-interest income was $140 thousand, and non-interest expense was $1.9 million for the quarter ended September 30, 2016.
Interest income totaled $3.6 million for the quarter ended September 30, 2017, representing an increase of $799 thousand when compared to $2.8 million for the quarter ended September 30, 2016. Interest expense totaled $515 thousand for the quarter ended September 30, 2017, representing an increase of $124 thousand over the $391 thousand for the quarter ended September 30, 2016. Net interest income was $3.0 million for the quarter ended September 30, 2017, compared to $2.4 million for the same period in 2016. The net interest margin for the quarter ended September 30, 2017 was 3.14% compared to 2.98% for the quarter ended September 30, 2016, representing an increase of 16 basis points.
Operating Results - Year
The Company reported net income for the nine month period ended September 30, 2017 of $1.6 million, or $0.24 per diluted share, which includes a provision for loan losses of $120 thousand. This compares to net income of $902 thousand, or $0.14 per diluted share, for the same period in 2016, which includes no provision for loan losses. Net interest income was $8.7 million for the nine month period ended September 30, 2017, an increase of $2.2 million, or 33.3%, compared to $6.52 million for the same period ended September 30, 2016. Non-interest income was $416 thousand for the nine month period ended September 30, 2017, compared to $405 thousand for the same period ended September 30, 2016. Non-interest expense increased by $744 thousand, or 13.5%, to total $6.3 million for the nine month period ended September 30, 2017 compared to $5.5 million for the same period ended September 30, 2016.
Interest income increased by $2.5 million, or 32.8%, to total $10.2 million for the nine month period ended September 30, 2017, compared to $7.7 million for the same period ended September 30, 2016. Total interest expense increased by $352 thousand, or 30.6%, to total $1.5 million for the nine month period ended September 30, 2017, compared to $1.2 million for the same period ended September 30, 2016, as the Company issued $3.0 million in additional subordinated debt in December 2016 that increased the Company's cost of funds. Net interest income increase by $2.2 million, or 33.3%, for the nine month period ended September 30, 2017 compare to the same period in 2016. The net interest margin for the nine month period ended September 30, 2017 was 3.18%, representing an increase of 19 basis points from 2.99% for the same period ended September 30, 2016.
Credit Quality
The allowance for loan losses at September 30, 2017 was $3.1 million, or 1.36% of gross loans, compared to $2.8 million, or 1.46% of gross loans, at September 30, 2016. The Company provided $120 thousand to its allowance for loan and lease losses, it had charge-offs of $17 thousand and recoveries totaled $7 thousand for the nine month period ended September 30, 2017, compared to no provision, loan charge-offs of zero with recoveries of $12 thousand for the same period in 2016. Nonperforming loans at September 30, 2017 were $281 thousand, or 0.06% of total assets, compared to $694 thousand, or 0.23% of total assets at September 30, 2016. Other real estate owned at September 30, 2017 was $248 thousand, compared to OREO being $4.0 million at September 30, 2016.
Capital
The Company and Community 1st Bank (the "Bank") continues to maintain a strong capital position under Basel III. The Company had Common Equity Tier 1 ratio of 10.7%, Tier 1 Leverage ratio of 7.0%, Tier 1 Risk-based Capital ratio of 10.7% and Total Risk-based Capital ratio of 14.9% at September 30, 2017. The Bank had Common Equity Tier 1 ratio of 13.3%, Tier 1 Leverage ratio of 8.9%, Tier 1 Risk-based Capital ratio of 13.3% and Total Risk-based Capital ratio of 14.5% at September 30, 2017.
James J. Kim, President and Chief Executive Officer, commented, "Community 1st Bancorp's balance sheet infrastructure and team of bankers positions it well for strong earnings and continued success."
Community 1st Bank is headquartered in Auburn, California, with branches in Roseville, Auburn and Sacramento, California. Community 1st 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 BANCORP | |||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||
9/30/17 | 12/31/16* | 9/30/16 | |||||||
(Unaudited) | (Unaudited) | ||||||||
ASSETS | |||||||||
Cash and cash equivalents | $ | 52,785,000 | $ | 20,001,000 | $ | 47,372,000 | |||
Federal funds sold | 3,775,000 | 1,914,000 | 1,430,000 | ||||||
Available-for-sale investment securities, at fair value | 117,417,000 | 114,310,000 | 100,864,000 | ||||||
Loans, less allowance for loan losses of $3,096,000 at September 30, 2017, $2,986,000 at December 31,2016 and $2,754,000 at September 30, 2016 |
224,620,000 | 206,156,000 | 185,500,000 | ||||||
Bank premises and equipment, net | 1,694,000 | 1,778,000 | 1,677,000 | ||||||
Interest receivable | 1,088,000 | 941,000 | 879,000 | ||||||
Other real estate owned | 248,000 | 3,559,000 | 3,955,000 | ||||||
Federal Home Loan Bank stock and other securities | 2,116,000 | 1,368,000 | 1,368,000 | ||||||
Bank-owned life insurance policies | 5,244,000 | 5,136,000 | 5,098,000 | ||||||
Other assets | 2,421,000 | 3,421,000 | 2,620,000 | ||||||
Total assets |
$ | 411,408,000 | $ | 358,584,000 | $ | 350,763,000 | |||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
Non-interest bearing | $ | 141,668,000 | $ | 115,950,000 | $ | 119,000,000 | |||
Interest bearing | 233,620,000 | 209,945,000 | 200,856,000 | ||||||
Total deposits | 375,288,000 | 325,895,000 | 319,856,000 | ||||||
Subordinated debentures | 7,854,000 | 7,841,000 | 4,898,000 | ||||||
Interest payable and other liabilities | 1,257,000 | 600,000 | 733,000 | ||||||
Total liabilities | 384,399,000 | 334,336,000 | 325,487,000 | ||||||
Shareholders' equity | 27,009,000 | 24,248,000 | 25,276,000 | ||||||
Total liabilities and shareholders' equity | $ | 411,408,000 | $ | 358,584,000 | $ | 350,763,000 | |||
*Derived from audited Consolidated Financial Statements | |||||||||
COMMUNITY 1ST BANCORP | ||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||
For the Three Months Ended: | For the Nine Months Ended: | |||||||||||||||
9/30/17 | 6/30/17 | 9/30/16 | 9/30/17 | 9/30/16 | ||||||||||||
Interest income: | ||||||||||||||||
Interest and fees on loans | $ | 2,743,000 | $ | 2,686,000 | $ | 2,197,000 | $ | 7,944,000 | $ | 6,294,000 | ||||||
Interest on investment securities and interest-bearing deposits in other financial institutions |
816,000 | 757,000 | 563,000 | 2,252,000 | 1,381,000 | |||||||||||
Total interest income | 3,559,000 | 3,443,000 | 2,760,000 | 10,196,000 | 7,675,000 | |||||||||||
Interest expense: | ||||||||||||||||
Deposits | 375,000 | 351,000 | 288,000 | 1,064,000 | 844,000 | |||||||||||
Subordinated debentures | 140,000 | 145,000 | 103,000 | 440,000 | 308,000 | |||||||||||
Total interest expense | 515,000 | 496,000 | 391,000 | 1,504,000 | 1,152,000 | |||||||||||
Net interest income | 3,044,000 | 2,947,000 | 2,369,000 | 8,692,000 | 6,523,000 | |||||||||||
Provision for loan losses | - | 25,000 | - | 120,000 | - | |||||||||||
Net interest income after provision for loan losses | 3,044,000 | 2,922,000 | 2,369,000 | 8,572,000 | 6,523,000 | |||||||||||
Non-interest income: | ||||||||||||||||
Service charges and fees | 14,000 | 16,000 | 21,000 | 48,000 | 53,000 | |||||||||||
Other | 128,000 | 119,000 | 119,000 | 368,000 | 352,000 | |||||||||||
Total non-interest income | 142,000 | 135,000 | 140,000 | 416,000 | 405,000 | |||||||||||
Non-interest expense: | ||||||||||||||||
Salaries and employee benefits | 1,072,000 | 1,057,000 | 997,000 | 3,156,000 | 2,893,000 | |||||||||||
Occupancy and equipment | 195,000 | 194,000 | 215,000 | 597,000 | 547,000 | |||||||||||
Other | 793,000 | 915,000 | 721,000 | 2,515,000 | 2,084,000 | |||||||||||
Total non-interest expense | 2,060,000 | 2,166,000 | 1,933,000 | 6,268,000 | 5,524,000 | |||||||||||
Net income before provision for taxes |
$ | 1,126,000 | $ | 891,000 | $ | 576,000 | $ | 2,720,000 | $ | 1,404,000 | ||||||
Provision for taxes | 478,000 | 359,000 | 211,000 | 1,138,000 | 502,000 | |||||||||||
Net income | $ | 648,000 | $ | 532,000 | $ | 365,000 | $ | 1,582,000 | $ | 902,000 | ||||||
Common Share Data | ||||||||||||||||
Basic earnings per share | $ | 0.10 | $ | 0.08 | $ | 0.06 | $ | 0.24 | $ | 0.14 | ||||||
Diluted earnings per share | $ | 0.10 | $ | 0.08 | $ | 0.06 | $ | 0.24 | $ | 0.14 | ||||||
Weighted average shares outstanding | 6,524,741 | 6,524,741 | 6,524,741 | 6,524,741 | 6,523,421 | |||||||||||
Weighted average shares outstanding - diluted | 6,680,498 | 6,630,666 | 6,555,049 | 6,644,607 | 6,536,223 | |||||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20171025006116/en/
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