Communities First Financial Corporation Profits Soar 92% to $5.71 Million for 2Q-2021 from $2.98 Million for 2Q-2020
Communities First Financial Corporation (OTCQX: CFST) reported a net income increase of 92% to $5.71 million for 2Q-2021, up from $2.98 million in 2Q-2020. Year-to-date, net income rose 89% to $9.90 million. Key metrics include a 30.99% return on average common equity and 2.33% return on average assets. Total assets grew 31% to $988.48 million, while deposits increased 27% to $864.55 million. Nonperforming assets declined to 0.10% of total assets, reflecting improved asset quality.
- Net income rose 92% to $5.71 million for 2Q-2021.
- Year-to-date net income increased 89% to $9.90 million.
- Return on average common equity reached 30.99%.
- Total assets expanded by 31% to $988.48 million.
- Deposits surged 27% to $864.55 million.
- None.
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FRESNO, Calif., July 20, 2021 (GLOBE NEWSWIRE) -- Communities First Financial Corporation (the “Company”) (OTCQX: CFST), the parent company of Fresno First Bank (the “Bank”), today reported net income increased
“Second quarter results were stellar with net income nearly doubling from a year ago, led by exceptional gross revenue production, a return on average common equity of
“Our franchise is growing, and we continue to focus on driving top line revenue growth through cultivating new customer relationships,” said Miller. “We made substantial progress with our digital presence over the last year, but we are looking forward to getting back out into our communities and meeting face-to-face with our customers and prospects.” Interest income was higher by
“With improving economic conditions and increasing consumer confidence, our overall franchise is ramping up and we are well-positioned to take advantage of the recovery and renewed business,” stated Miller. “We will continue to invest in our franchise to create growth, and we expect these investments to drive further revenue streams creating value for our customers and shareholders. In spite of the pandemic disruption, I am proud of our employees who have dedicated themselves to our customers’ and Company’s success.”
Second Quarter 2021 Highlights: As of, or for the quarter ended June 30, 2021, compared to the quarter ended June 30, 2020:
- Pre-tax, pre-provision income increased
92% to$8.56 million . - Net income climbed
92% to$5.71 million or$1.84 per diluted share. - Return on average equity of
30.99% . - Return on average assets of
2.33% . - Operating revenue (net interest income, before the provision for loan losses, plus non-interest income) increased by
56% to$13.04 million . - Total assets increased
31% reaching$988.48 million . - Total loans (ex. HFS) increased
23% to$703.48 million . - Total deposits increased
27% to$864.55 million . - Shareholder equity increased
30% to$78.76 million . - Book value increased
27% to$25.63 per share.
The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act of 2020 has provided new COVID-19 stimulus relief, which included
COVID-19 Update
California has fully reopened its economy. This means no more physical distancing, no capacity limits, no county tiers, and relaxed mask guidance. California has remained fully open since June 15, 2021, when the lifting of restrictions went into effect statewide.
On July 12, 2021, Governor Gavin Newsom signed SB 129 legislation that reflects the majority of the 2021-22 state budget agreement. This transformative budget includes the biggest economic recovery package in California’s history – a
https://covid19.ca.gov/safely-reopening/#reopening-california
Credit Risk as a Result of the Pandemic
The Bank’s loan portfolio is diverse, and management continues to monitor and evaluate the Bank’s exposure to potentially increased loan losses related to the COVID-19 pandemic in multiple ways. As a result of federal and state stimulus money, state and federally encouraged payment deferrals, together with the SBA making payments for many SBA loans, management continues to believe that normal metrics such as delinquencies may understate potential credit issues. Due to the potential distortion of traditional metrics, management and staff are actively monitoring other sources of data more frequently for early indications of distress within the portfolio such as average deposits, overdrafts, line of credit usage and guarantors’ credit history. Management has segmented the loan portfolio several ways and examines risk exposure based on quantitative and qualitative information. Management and staff actively communicate with borrowers and key deposit clients to understand and assess the health of, and the stress their business may be experiencing, as well as the pandemic’s effects on their customers and suppliers. In addition, management and staff are engaging with borrowers frequently to understand individual challenges and are obtaining regular data from borrowers, as well as updated financials.
The following is a recap of areas considered higher risk due to the pandemic and a status of customers with deferred loan payments.
Higher Risk Industries: Management has identified the following industry segments most at risk due to the effects of the pandemic, as of June 30, 2021. Exposure to higher risk industries comprises approximately
| Industry Segments Considered Higher Risk due to COVID | ||||||||||||||||
| ($ in thousands) | ||||||||||||||||
| # of Loans | Book Loan Balance | Govt. Guaranteed Balances | Net Exposure (Book - Govt. Gte.) | % of Total Loans less Govt. Gte. | Undisbursed | Exposure Including Undisbursed | % of Total Commitments less Govt. Gte. | |||||||||
| Higher Risk | ||||||||||||||||
| Retail Sales | 36 | $ | 10,501 | $ | 3,561 | $ | 6,940 | 1.4 | % | $ | 1,659 | $ | 8,600 | 1.4 | % | |
| Entertainment & Recreation | 1 | 101 | 85 | 15 | 0.0 | % | 0 | 15 | 0.0 | % | ||||||
| Lodging & Travel | 9 | 11,400 | 174 | 11,226 | 2.3 | % | 12,080 | 23,306 | 3.7 | % | ||||||
| Restaurants & Bars | 34 | 10,920 | 2,817 | 8,103 | 1.7 | % | 2,849 | 10,952 | 1.8 | % | ||||||
| Total | 80 | $ | 32,922 | $ | 6,638 | $ | 26,285 | 5.4 | % | $ | 16,588 | $ | 42,873 | 6.9 | % | |
| Total Loan Portfolio (ex: HFS) | 1,664 | $ | 703,477 | $ | 221,095 | $ | 482,382 | 100.0 | % | $ | 139,399 | $ | 621,781 | 100.0 | % | |
Status of, and Requests for, Loan Payment Deferral
“We granted payment deferrals on 64 individual loans covering 41 borrowers,” added Miller. “Subsequently, several borrowers asked to be taken off deferral, 13 loans paid off in full, and as of June 30, 2021 all have now returned to normal payment schedules.”
The following table(s) break down the status and progression of loans granted payment deferrals.
| Trend of Loan Deferrals | ||||
| Number of Loans on Deferral | Loan Balances ($ in thousands) | |||
| June 2020 | 57 | |||
| Sept. 2020 | 12 | |||
| Dec. 2020 | 8 | |||
| Mar. 2021 | 3 | |||
| June 2021 | 0 | |||
| Status of Loans given a deferral as of 6/30/2021 | Count | Balance ($ in thousands) | % of balance of all loans given a deferral | |||
| No longer in deferment and paid current | 44 | 94.7 | % | |||
| Loan provided a deferment - now paid off | 16 | 0.0 | % | |||
| No longer in deferment - past due at 6/30/2021 | 4 | 5.3 | % | |||
| Total no longer in deferment | 64 | 100.0 | % | |||
| Remaining in initial deferment | 0 | 0.0 | % | |||
| New deferment | 0 | 0.0 | % | |||
| 2nd deferment | 0 | 0.0 | % | |||
| Total in deferment as of 6/30/2021 | 0 | 0.0 | % | |||
| Grand Total | 64 | 100.0 | % | |||
Results of Operations
Operating revenue, consisting of net interest income and non-interest income, increased
Net interest income, before the provision for loan losses, increased
The Bank’s net interest margin (“NIM”), which excludes interest expense on holding company sub-debt, remained solid at a tax-equivalent yield of
“With fees earned on PPP loans, and its temporary impact on NIM, it is important to understand what a normalized NIM run rate looks like,” said Canfield. “When we exclude the impact of PPP loans on our books, and the one-time recovery of non-accrued interest we had in Q1-2021, our normalized NIM was steady at
The yield on earning assets was
Total non-interest income more than doubled to
“We sold
| Merchant ISO Processing Volume 2021 ($ in thousands) | ||||||
| ISOs | 1Q Volume | 2Q Volume | Start Date | |||
| 1 | $ | 282,258 | $ | 324,996 | ||
| 2 | 290,376 | 404,895 | ||||
| 3 | 8,303 | 10,824 | ||||
| 4 | 0 | 9,270 | ||||
| 5 | 0 | 62 | ||||
| 6 | 0 | 130 | ||||
| 7 | 0 | 0 | 7/19/2021 | |||
| Total Volume | $ | 580,938 | $ | 750,176 | ||
“Our merchant services revenue run rate for 2021 is in line with 2020, but we expect a stronger 2nd half due to several new strategic ISO relationships that came online late in the second quarter of 2021,” added Miller. “Our three newest ISOs are the largest ISO partners to date, but the onboarding process experienced some delays.”
Total deposit fee income increased by
Non-interest expense for the second quarter of 2021 was
The efficiency ratio improved significantly to
Balance Sheet Review
Total assets increased
Total portfolio loans grew
The commercial and industrial (C&I) portfolio increased
The investment portfolio increased by
Total deposits increased
“With the holding company sub-debt raise last year, we have a strong capital base to support our growth and allow us to further expand our payments business and/or pursue further opportunities as they might arise,” added Miller. “In February 2021, the Bank received approval from Visa to support High Brand Risk processing for ourselves, and our partners, which is expected to enhance revenue opportunities in several key payment verticals.” A key requirement by Visa was for the Bank to have
Net shareholders’ equity increased
Asset Quality
Nonperforming assets declined to
Past due loans 30-60 days totaled
| All past due loans are SBA guaranteed. No Commercial loans past due. | ||||||||
| Gross Past Due | Guaranteed Amount | Net Exposure | ||||||
| Total Past Dues | $ | 6,610 | $ | 5,781 | $ | 829 | ||
| 2 Loans were Purchased GGL | 1,926 | 1,926 | 0 | |||||
| 3 Loans were paid after quarter end | 2,302 | 2,068 | 234 | |||||
| 2 Loans Submitted for SBA Pmts & Accepted | 779 | 584 | 195 | |||||
| Total | 5,007 | 4,578 | 428 | |||||
| Net True Delinquent Exposure | $ | 1,603 | $ | 1,202 | $ | 401 | ||
The provision for loan losses was
The ratio of allowance for loan losses to total portfolio held for investment loans was
About Communities First Financial Corporation
Communities First Financial Corporation, a bank holding company established in 2014, is the parent company of Fresno First Bank, founded in 2005 in Fresno, California. Fresno First Bank is a leading SBA Lender in California’s Central Valley and has expanded into Southern California. The Bank is also a direct acquiring bank with VISA and MasterCard and processes payments for merchants across the country directly and through partners. In March 2021, S&P Global ranked the Bank the #20 best performing community bank under
Forward Looking Statements
This earnings release may contain forward-looking statements. Forward-looking statements provide current expectations or forecasts of future events and are not guarantees of future performance, nor should they be relied upon as representing management’s views as of any subsequent date. The forward-looking statements are based on managements’ expectations and are subject to a number of risks and uncertainties. Although management believes that the expectations reflected in such forward-looking statements are reasonable, actual results may differ materially from those expressed or implied in such statements. Risks and uncertainties that could cause actual results to differ materially include, without limitation, our borrowers’ actual payment performance as loan deferrals related to the COVID-19 pandemic expire, changes to statutes, regulations, or regulatory policies or practices as a result of, or in response to COVID-19, including the potential adverse impact of loan modifications and payment deferrals implemented consistent with recent regulatory guidance, the Company’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; changes in the competitive environment; continuing consolidation in the financial services industry; new litigation or changes in existing litigation; losses, customer bankruptcy, claims and assessments; changes in banking regulations or other regulatory or legislative requirements affecting the Company’s business; international developments; and changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board or other regulatory agencies. The Company undertakes no obligation to release publicly the results of any revisions to the forward-looking statements included herein to reflect events or circumstances after today, or to reflect the occurrence of unanticipated events. The Company claims the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.
| SELECT FINANCIAL INFORMATION AND RATIOS (unaudited) | For the Quarter Ended: | Percentage Change From: | Year to Date as of: | |||||||||||||||||||||
| June 30, 2021 | Mar. 31, 2021 | June 30, 2020 | Mar. 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | Percent Change | |||||||||||||||||
| BALANCE SHEET DATA - PERIOD END BALANCES: | ||||||||||||||||||||||||
| Total assets | $ | 988,481 | $ | 957,479 | $ | 756,739 | 3 | % | 31 | % | ||||||||||||||
| Total Loans | 703,477 | 691,966 | 572,695 | 2 | % | 23 | % | |||||||||||||||||
| Investment securities | 251,618 | 233,433 | 139,688 | 8 | % | 80 | % | |||||||||||||||||
| Total deposits | 864,547 | 836,309 | 678,830 | 3 | % | 27 | % | |||||||||||||||||
| Shareholders equity, net | $ | 78,759 | $ | 70,915 | $ | 60,775 | 11 | % | 30 | % | ||||||||||||||
| SELECT INCOME STATEMENT DATA: | ||||||||||||||||||||||||
| Gross revenue | $ | 13,042 | $ | 11,017 | $ | 8,338 | 18 | % | 56 | % | $ | 24,059 | $ | 15,622 | 54 | % | ||||||||
| Operating expense | 4,484 | 4,445 | 3,461 | 1 | % | 30 | % | 8,929 | 7,246 | 23 | % | |||||||||||||
| Pre-tax, pre-provision income | 8,558 | 6,572 | 4,877 | 30 | % | 75 | % | 15,130 | 8,376 | 81 | % | |||||||||||||
| Net income after tax | $ | 5,708 | $ | 4,196 | $ | 2,978 | 36 | % | 92 | % | $ | 9,904 | $ | 5,238 | 89 | % | ||||||||
| SHARE DATA: | ||||||||||||||||||||||||
| Basic earnings per share | $ | 1.86 | $ | 1.37 | $ | 0.99 | 36 | % | 87 | % | $ | 3.23 | $ | 1.75 | 84 | % | ||||||||
| Fully diluted earnings per share | $ | 1.84 | $ | 1.35 | $ | 0.98 | 36 | % | 87 | % | $ | 3.20 | $ | 1.73 | 85 | % | ||||||||
| Book value per common share | $ | 25.63 | $ | 23.12 | $ | 20.23 | 11 | % | 27 | % | ||||||||||||||
| Common shares outstanding | 3,072,858 | 3,067,907 | 3,004,331 | 0 | % | 2 | % | |||||||||||||||||
| Fully diluted shares | 3,103,164 | 3,097,834 | 3,033,808 | 0 | % | 2 | % | |||||||||||||||||
| CFST - Stock price | $ | 43.00 | $ | 41.00 | $ | 23.00 | 5 | % | 87 | % | ||||||||||||||
| RATIOS: | ||||||||||||||||||||||||
| Return on average assets | 2.33 | % | 1.87 | % | 1.72 | % | 25 | % | 36 | % | 2.11 | % | 1.72 | % | 23 | % | ||||||||
| Return on average equity | 30.99 | % | 24.37 | % | 20.99 | % | 27 | % | 48 | % | 27.79 | % | 19.05 | % | 46 | % | ||||||||
| Efficiency ratio | 34.34 | % | 41.52 | % | 41.51 | % | -17 | % | -17 | % | 37.58 | % | 46.56 | % | -19 | % | ||||||||
| Yield on earning assets | 4.29 | % | 4.60 | % | 4.05 | % | -7 | % | 6 | % | 4.44 | % | 4.40 | % | 1 | % | ||||||||
| Cost to fund earning assets | 0.09 | % | 0.10 | % | 0.14 | % | -15 | % | -36 | % | 0.10 | % | 0.18 | % | -47 | % | ||||||||
| Net Interest Margin | 4.20 | % | 4.49 | % | 3.92 | % | -6 | % | 7 | % | 4.34 | % | 4.21 | % | 3 | % | ||||||||
| Equity to assets | 7.97 | % | 7.41 | % | 8.03 | % | 8 | % | -1 | % | ||||||||||||||
| Loan to deposits ratio | 81.37 | % | 82.74 | % | 84.37 | % | -2 | % | -4 | % | ||||||||||||||
| Full time equivalent employees | 69 | 62 | 59 | 11 | % | 18 | % | |||||||||||||||||
| BALANCE SHEET DATA - AVERAGES: | ||||||||||||||||||||||||
| Total assets | $ | 980,937 | $ | 910,728 | $ | 697,443 | 8 | % | 41 | % | $ | 946,027 | $ | 613,350 | 54 | % | ||||||||
| Total loans | 698,740 | 653,894 | 517,775 | 7 | % | 35 | % | 676,441 | 443,832 | 52 | % | |||||||||||||
| Investment securities | 239,475 | 224,899 | 129,574 | 6 | % | 85 | % | 232,227 | 119,159 | 95 | % | |||||||||||||
| Deposits | 854,198 | 789,777 | 622,281 | 8 | % | 37 | % | 822,165 | 543,341 | 51 | % | |||||||||||||
| Shareholders equity, net | $ | 73,870 | $ | 69,843 | $ | 57,042 | 6 | % | 30 | % | $ | 71,868 | $ | 55,302 | 30 | % | ||||||||
| ASSET QUALITY: | ||||||||||||||||||||||||
| Total delinquent accruing loans | $ | 6,610 | $ | 7,493 | $ | 4,768 | -12 | % | 39 | % | ||||||||||||||
| Nonperforming assets | $ | 1,018 | $ | 1,491 | $ | 1,083 | -32 | % | -6 | % | ||||||||||||||
| Non Accrual / Total Loans | .14 | % | .22 | % | .19 | % | -33 | % | -23 | % | ||||||||||||||
| Nonperforming assets to total assets | .10 | % | .16 | % | .14 | % | -34 | % | -28 | % | ||||||||||||||
| LLR / Total loans | 1.33 | % | 1.26 | % | 1.01 | % | 6 | % | 32 | % | ||||||||||||||
| STATEMENT OF INCOME ($ in thousands) | For the Quarter Ended: | Percentage Change From: | For the Year Ended | ||||||||||||||||
| (unaudited) | June 30, 2021 | Mar. 31, 2021 | June 30, 2020 | Mar. 31, 2021 | June 30, 2020 | June 30, 2021 | June 30, 2020 | Percent Change | |||||||||||
| Interest Income | |||||||||||||||||||
| Loan interest income | $ | 8,409 | $ | 8,349 | $ | 5,949 | 1 | % | 41 | % | $ | 16,758 | $ | 11,267 | 49 | % | |||
| Investment income | 1,625 | 1,508 | 726 | 8 | % | 124 | % | 3,133 | 1,421 | 120 | % | ||||||||
| Int. on fed funds & CDs in other banks | 18 | 51 | 78 | -65 | % | -77 | % | 69 | 172 | -60 | % | ||||||||
| Dividends from non-marketable equity | 43 | 24 | 28 | 79 | % | 54 | % | 67 | 60 | 12 | % | ||||||||
| Interest income | 10,095 | 9,932 | 6,781 | 2 | % | 49 | % | 20,027 | 12,920 | 55 | % | ||||||||
| Int. on deposits | 208 | 228 | 229 | -9 | % | -9 | % | 436 | 502 | -13 | % | ||||||||
| Int. on short-term borrowings | 2 | 1 | 5 | 100 | % | -60 | % | 3 | 32 | -91 | % | ||||||||
| Int. on long-term debt | 464 | 464 | 0 | 0 | % | 0 | % | 928 | - | 0 | % | ||||||||
| Interest expense | 674 | 693 | 234 | -3 | % | 188 | % | 1,367 | 534 | 156 | % | ||||||||
| Net interest income | 9,421 | 9,239 | 6,547 | 2 | % | 44 | % | 18,660 | 12,386 | 51 | % | ||||||||
| Provision for loan losses | 750 | 850 | 800 | -12 | % | -6 | % | 1,600 | 1,200 | 33 | % | ||||||||
| Net interest income after provision | 8,671 | 8,389 | 5,747 | 3 | % | 51 | % | 17,060 | 11,186 | 53 | % | ||||||||
| Non-Interest Income: | |||||||||||||||||||
| Total deposit fee income | 414 | 270 | 118 | 53 | % | 251 | % | 684 | 242 | 183 | % | ||||||||
| Debit / credit card interchange income | 131 | 101 | 66 | 30 | % | 98 | % | 232 | 133 | 74 | % | ||||||||
| Merchant services income | 1,089 | 961 | 1,155 | 13 | % | -6 | % | 2,050 | 1,854 | 11 | % | ||||||||
| Gain on sale of loans | 1,882 | 17 | 351 | 10971 | % | 436 | % | 1,899 | 644 | 195 | % | ||||||||
| Other operating income | 105 | 429 | 101 | -76 | % | 4 | % | 534 | 363 | 47 | % | ||||||||
| Non-interest income | 3,621 | 1,778 | 1,791 | 104 | % | 102 | % | 5,399 | 3,236 | 67 | % | ||||||||
| Non-Interest Expense: | |||||||||||||||||||
| Salaries & employee benefits | 2,798 | 2,606 | 1,908 | 7 | % | 47 | % | 5,404 | 4,163 | 30 | % | ||||||||
| Occupancy expense | 203 | 210 | 204 | -3 | % | 0 | % | 413 | 419 | -1 | % | ||||||||
| Other operating expense | 1,483 | 1,629 | 1,349 | -9 | % | 10 | % | 3,112 | 2,664 | 17 | % | ||||||||
| Non-interest expense | 4,484 | 4,445 | 3,461 | 1 | % | 30 | % | 8,929 | 7,246 | 23 | % | ||||||||
| Net income before tax | 7,808 | 5,722 | 4,077 | 36 | % | 92 | % | 13,530 | 7,176 | 89 | % | ||||||||
| Tax provision | 2,100 | 1,526 | 1,099 | 38 | % | 91 | % | 3,626 | 1,938 | 87 | % | ||||||||
| Net income after tax | $ | 5,708 | $ | 4,196 | $ | 2,978 | 36 | % | 92 | % | $ | 9,904 | $ | 5,238 | 89 | % | |||
| BALANCE SHEET ($ in thousands ) | End of Period: | Percentage Change From: | ||||||||||||||
| (unaudited) | June 30, 2021 | Mar. 31, 2021 | June 30, 2020 | Mar. 31, 2021 | June 30, 2020 | |||||||||||
| ASSETS | ||||||||||||||||
| Cash and due from banks | $ | 18,159 | $ | 16,765 | $ | 9,965 | 8 | % | 82 | % | ||||||
| Fed funds sold and deposits in banks | 1,098 | 1,345 | 606 | -18 | % | 81 | % | |||||||||
| CDs in other banks | 2,237 | 2,237 | 9,914 | 0 | % | -77 | % | |||||||||
| Investment securities | 251,618 | 233,433 | 139,688 | 8 | % | 80 | % | |||||||||
| Loans held for sale | 3,852 | 0 | 18,306 | 0 | % | -79 | % | |||||||||
| Portfolio loans outstanding: | ||||||||||||||||
| RE constr & land development | 25,373 | 20,631 | 22,545 | 23 | % | 13 | % | |||||||||
| Residential RE 1-4 Family | 18,341 | 16,646 | 13,890 | 10 | % | 32 | % | |||||||||
| Commercial Real Estate | 291,042 | 250,713 | 157,894 | 16 | % | 84 | % | |||||||||
| Agriculture | 50,032 | 37,484 | 30,367 | 33 | % | 65 | % | |||||||||
| Commercial and Industrial | 178,361 | 176,788 | 163,805 | 1 | % | 9 | % | |||||||||
| SBA PPP Loans | 140,317 | 189,485 | 184,151 | -26 | % | -24 | % | |||||||||
| Consumer and Other | 11 | 219 | 43 | -95 | % | -74 | % | |||||||||
| Total Portfolio Loans | 703,477 | 691,966 | 572,695 | 2 | % | 23 | % | |||||||||
| Deferred fees & discounts | (4,761 | ) | (4,930 | ) | (4,881 | ) | -3 | % | -2 | % | ||||||
| Allowance for loan losses | (9,385 | ) | (8,698 | ) | (5,788 | ) | 8 | % | 62 | % | ||||||
| Loans, net | 689,331 | 678,338 | 562,026 | 2 | % | 23 | % | |||||||||
| Non-marketable equity investments | 4,070 | 3,062 | 3,019 | 33 | % | 35 | % | |||||||||
| Cash value of life insurance | 8,299 | 8,247 | 8,095 | 1 | % | 3 | % | |||||||||
| Accrued interest and other assets | 9,817 | 14,052 | 5,120 | -30 | % | 92 | % | |||||||||
| Total assets | $ | 988,481 | $ | 957,479 | $ | 756,739 | 3 | % | 31 | % | ||||||
| LIABILITIES AND EQUITY | ||||||||||||||||
| Non-interest bearing deposits | $ | 527,259 | $ | 511,497 | $ | 414,395 | 3 | % | 27 | % | ||||||
| Interest checking | 45,533 | 37,071 | 24,417 | 23 | % | 86 | % | |||||||||
| Savings | 67,765 | 91,282 | 55,550 | -26 | % | 22 | % | |||||||||
| Money market | 136,113 | 126,797 | 130,356 | 7 | % | 4 | % | |||||||||
| Certificates of deposits | 87,877 | 69,662 | 54,112 | 26 | % | 62 | % | |||||||||
| Total deposits | 864,547 | 836,309 | 678,830 | 3 | % | 27 | % | |||||||||
| Short-term borrowings | 0 | 5,000 | 11,761 | -100 | % | -100 | % | |||||||||
| Long-term debt | 39,204 | 39,165 | 0 | 0 | % | 0 | % | |||||||||
| Other liabilities | 5,971 | 6,090 | 5,373 | -2 | % | 11 | % | |||||||||
| Total liabilities | 909,722 | 886,564 | 695,964 | 3 | % | 31 | % | |||||||||
| Common stock & paid in capital | 32,019 | 31,753 | 30,715 | 1 | % | 4 | % | |||||||||
| Retained earnings | 43,325 | 37,618 | 27,148 | 15 | % | 60 | % | |||||||||
| Total equity | 75,344 | 69,371 | 57,863 | 9 | % | 30 | % | |||||||||
| Accumulated other comprehensive income | 3,415 | 1,544 | 2,912 | 121 | % | 17 | % | |||||||||
| Shareholders equity, net | 78,759 | 70,915 | 60,775 | 11 | % | 30 | % | |||||||||
| Total Liabilities and shareholders' equity | $ | 988,481 | $ | 957,479 | $ | 756,739 | 3 | % | 31 | % | ||||||
| ASSET QUALITY ($ in thousands) | Period Ended: | |||||||||
| (unaudited) | June 30, 2021 | Mar. 31, 2021 | June 30, 2020 | |||||||
| Delinquent accruing loans 30-60 days | $ | 4,666 | $ | 5,824 | $ | 1,771 | ||||
| Delinquent accruing loans 60-90 days | $ | 1,944 | $ | 1,669 | $ | 1,880 | ||||
| Delinquent accruing loans 90+ days | $ | 0 | $ | 0 | $ | 1,117 | ||||
| Total delinquent accruing loans | $ | 6,610 | $ | 7,493 | $ | 4,768 | ||||
| Loans on non accrual | $ | 1,018 | $ | 1,491 | $ | 1,083 | ||||
| Other real estate owned | $ | 0 | $ | 0 | $ | 0 | ||||
| Nonperforming assets | $ | 1,018 | $ | 1,491 | $ | 1,083 | ||||
| Performing restructured loans | $ | 0 | $ | 0 | $ | 508 | ||||
| Delq 30-60 / Total Loans | .66 | % | .84 | % | .31 | % | ||||
| Delq 60-90 / Total Loans | .28 | % | .24 | % | .33 | % | ||||
| Delq 90+ / Total Loans | .00 | % | .00 | % | .19 | % | ||||
| Delinquent Loans / Total Loans | .94 | % | 1.08 | % | .83 | % | ||||
| Non Accrual / Total Loans | .14 | % | .22 | % | .19 | % | ||||
| Nonperforming assets to total assets | .10 | % | .16 | % | .14 | % | ||||
| Year-to-date charge-off activity | ||||||||||
| Charge-offs | $ | 64 | $ | 0 | $ | 0 | ||||
| Recoveries | $ | 0 | $ | 0 | $ | 47 | ||||
| Net charge-offs | $ | 64 | $ | 0 | $ | (47 | ) | |||
| Annualized net loan losses (recoveries) to average loans | .02 | % | .00 | % | -.02 | % | ||||
| LOAN LOSS RESERVE RATIOS: | ||||||||||
| Reserve for loan losses | $ | 9,385 | $ | 8,698 | $ | 5,788 | ||||
| Total loans | $ | 703,477 | $ | 691,966 | $ | 572,695 | ||||
| Purchased govt. guaranteed loans | $ | 43,040 | $ | 43,931 | $ | 53,690 | ||||
| Originated govt. guaranteed loans | $ | 177,777 | $ | 235,360 | $ | 223,788 | ||||
| LLR / Total loans | 1.33 | % | 1.26 | % | 1.01 | % | ||||
| LLR / Loans less | 1.80 | % | 1.90 | % | 1.73 | % | ||||
| LLR / Loans less all govt. guaranteed loans | 1.94 | % | 2.11 | % | 1.96 | % | ||||
| LLR / Total assets | .95 | % | .91 | % | .76 | % | ||||
| SELECT FINANCIAL TREND INFORMATION (unaudited) | For the Quarter Ended: | ||||||||||
| June 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sept. 30, 2020 | June 30, 2020 | |||||||
| BALANCE SHEET DATA - PERIOD END BALANCES: | |||||||||||
| Total assets | $ | 988,481 | $ | 957,479 | $ | 871,347 | $ | 831,003 | $ | 756,739 | |
| Loans held for sale | 3,852 | 0 | 0 | 28,294 | 18,306 | ||||||
| Loans held for investment ex. PPP | 563,160 | 502,481 | 461,275 | 404,980 | 388,544 | ||||||
| PPP Loans | 140,317 | 189,485 | 159,491 | 184,110 | 184,151 | ||||||
| Investment securities | 251,618 | 233,433 | 222,808 | 182,168 | 139,688 | ||||||
| Non-interest bearing deposits | 527,259 | 511,497 | 446,920 | 445,952 | 414,395 | ||||||
| Interest bearing deposits | 337,288 | 324,812 | 279,334 | 307,193 | 264,435 | ||||||
| Total deposits | 864,547 | 836,309 | 726,254 | 753,145 | 678,830 | ||||||
| Short-term borrowings | 0 | 5,000 | 31,000 | 10,000 | 11,761 | ||||||
| Long-term debt | 39,204 | 39,165 | 39,126 | 0 | 0 | ||||||
| Total equity | 75,344 | 69,371 | 64,418 | 61,028 | 57,863 | ||||||
| Accumulated other comprehensive income | 3,415 | 1,544 | 4,128 | 3,548 | 2,912 | ||||||
| Shareholders equity, net | $ | 78,759 | $ | 70,915 | $ | 68,546 | $ | 64,576 | $ | 60,775 | |
| INCOME STATEMENT - QUARTERLY VALUES: | |||||||||||
| Interest income | $ | 10,095 | $ | 9,932 | $ | 8,489 | $ | 7,325 | $ | 6,781 | |
| Int. on dep. & short-term borrowings | 210 | 229 | 229 | 232 | 234 | ||||||
| Int. on long-term debt | 464 | 464 | 295 | 0 | 0 | ||||||
| Interest expense | 674 | 693 | 524 | 232 | 234 | ||||||
| Net interest income | 9,421 | 9,239 | 7,965 | 7,093 | 6,547 | ||||||
| Non-interest income | 3,621 | 1,778 | 2,104 | 1,733 | 1,791 | ||||||
| Gross revenue | 13,042 | 11,017 | 10,069 | 8,826 | 8,338 | ||||||
| Provision for loan losses | 750 | 850 | 1,350 | 750 | 800 | ||||||
| Non-interest expense | 4,484 | 4,445 | 4,299 | 3,963 | 3,461 | ||||||
| Net income before tax | 7,808 | 5,722 | 4,420 | 4,113 | 4,077 | ||||||
| Tax provision | 2,100 | 1,526 | 1,167 | 1,091 | 1,099 | ||||||
| Net income after tax | $ | 5,708 | $ | 4,196 | $ | 3,253 | $ | 3,022 | $ | 2,978 | |
| BALANCE SHEET DATA - QUARTERLY AVERAGES: | |||||||||||
| Total assets | $ | 980,937 | $ | 910,728 | $ | 862,478 | $ | 781,339 | $ | 697,443 | |
| Loans held for sale | 12,485 | 0 | 9,934 | 23,677 | 17,213 | ||||||
| Loans held for investment ex. PPP | 521,676 | 473,185 | 422,505 | 386,819 | 380,025 | ||||||
| PPP Loans | 177,065 | 180,709 | 173,039 | 184,151 | 137,750 | ||||||
| Investment securities | 239,475 | 224,899 | 198,824 | 156,249 | 129,574 | ||||||
| Non-interest bearing deposits | 502,819 | 467,690 | 463,311 | 430,149 | 402,777 | ||||||
| Interest bearing deposits | 351,378 | 322,087 | 294,991 | 275,184 | 219,504 | ||||||
| Total deposits | 854,198 | 789,777 | 758,302 | 705,333 | 622,281 | ||||||
| Short-term borrowings | 7,516 | 6,182 | 8,223 | 10,277 | 13,566 | ||||||
| Long-term debt | 39,186 | 39,147 | 25,121 | 0 | 0 | ||||||
| Total equity | 71,477 | 66,429 | 62,258 | 58,927 | 54,812 | ||||||
| Accumulated other comprehensive income | 2,394 | 3,414 | 3,311 | 3,515 | 2,229 | ||||||
| Shareholders equity, net | $ | 73,870 | $ | 69,843 | $ | 65,570 | $ | 62,441 | $ | 57,042 | |
| Contact: | Steve Miller – President & CEO |
| Steve Canfield – Executive Vice President & CFO | |
| (559) 439-0200 |
FAQ
What is the net income for CFST in 2Q-2021?
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How much did CFST's total deposits increase in 2Q-2021?
