Communities First Financial Corporation (CFST)
| Previous Close | 46.25 |
| Open | 46.00 |
| Bid | 0.00 x 0 |
| Ask | 0.00 x 0 |
| Day's Range | 46.25 - 46.25 |
| 52 Week Range | 23.05 - 46.25 |
| Volume | 6,300 |
| Avg. Volume | 1,150 |
| Market Cap | 142.12M |
| Beta (5Y Monthly) | 0.75 |
| PE Ratio (TTM) | 8.78 |
| EPS (TTM) | 5.27 |
| Earnings Date | Oct. 12, 2018 |
| Forward Dividend & Yield | N/A (N/A) |
| Ex-Dividend Date | N/A |
| 1y Target Est | N/A |
- GlobeNewswire
Communities First Financial Corporation Profits Soar 92% to $5.71 Million for 2Q-2021 from $2.98 Million for 2Q-2020
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 92% to $5.71 million, or $1.84 per diluted share for the second quarter of 2021 (2Q-2021), compared to $2.98 million, or $0.98 per diluted share for the second quarter of 2020 (2Q-2020), and grew 36% from $4.20 million, or $1.35 per diluted share for the first quarter of 2021 (1Q-2021). F
- GlobeNewswire
Communities First Financial Corporation Receives “OUTSTANDING” Community Reinvestment Act (CRA) Highest Rating
FRESNO, Calif., May 05, 2021 (GLOBE NEWSWIRE) -- Communities First Financial Corporation (the “Company”) (OTCQX: CFST), the parent company of Fresno First Bank (“FFB” or “the Bank”), today announced that the Bank has received the highest rating, “Outstanding,” for its recent Community Reinvestment Act (CRA) examination from the Federal Deposit Insurance Corporation (FDIC), San Francisco Regional Office. The examination period includes the years: 2018, 2019 and 2020. “We are delighted to receive the highest CRA rating recognizing our strong performance and our proven commitment to serving low- to moderate-income communities,” said Steve Miller, President and Chief Executive Officer. “I am extremely proud of all of our employees who have taken those extra steps to help our company achieve this ‘Outstanding’ rating. Their commitment to service, compassion and community involvement is why they are our most important and valuable asset. Although we are happy with this rating, we know that there are still many needs in the communities we serve and our team is committed to being a true partner in solving these known issues.” According to the CRA Performance Evaluation, dated March 1, 2021, FFB experienced a significant increase to both loans and deposits in the second and third quarters of 2020, primarily due to the large number of SBA Paycheck Protection Program (PPP) loans. In addition, the geographic distribution of small business loans reflects excellent dispersion throughout the assessment area. “While our CRA rating covers an examination period ending December 31, 2020, we continue to make further progress towards meeting the needs of our low- and moderate-income neighborhoods,” added Miller. “In addition to actively serving our communities banking needs, we also support various non-profits including the Fresno Rescue Mission, Central Valley Food Bank, and Boys & Girls Clubs, through donations and our staff volunteering their time to support these organizations.” To learn more about Fresno First Bank’s positive impact on the communities it serves, please visit: www.FresnoFirstBank.com. About the Community Reinvestment Act (CRA)The CRA is a 1977 law intended to encourage insured banks and thrifts to meet local credit needs, including those of low- and moderate-income neighborhoods, consistent with safe and sound operations. As part of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA), Congress mandated the public disclosure of an evaluation and rating for each bank or thrift that undergoes a CRA examination on or after July 1, 1990. 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 $3 billion in assets for 2020, and #1 in California. Named to the 2019 OTCQX Best 50 and ranked one of the top performing OTCQX companies in the country, based on total return and growth in average daily dollar volume for 2018. The Bank was named to the Inc. 5000 Fastest Growing Companies list in 2017 and to Forbes Best 25 Small Businesses in America for 2016. Additional information is available from the Company’s website at www.fresnofirstbank.com or by calling 559-439-0200. Contact: Steve Miller – President & CEOSteve Canfield – Executive Vice President & CFO(559) 439-0200
- GlobeNewswire
Communities First Financial Corporation Earns a Record $4.20 Million for 1Q-2021, up 86% from $2.26 Million for 1Q-2020
FRESNO, Calif., April 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 86% to $4.20 million, or $1.37 per diluted share for the first quarter of 2021 (1Q-2021), compared to $2.26 million, or $0.75 per diluted share, for the first quarter of 2020 (1Q-2020), and grew 29% compared to $3.25 million, or $1.07 per diluted share, for the fourth quarter of 2020 (4Q-2020). All results are unaudited. First Quarter 2021 Highlights: As of, or for the quarter ended March 31, 2021, compared to the quarter ended March 31, 2020: Pre-tax, pre-provision income increased 88% to $6.57 million.Net income increased 86% to $4.20 million or $1.37 per diluted share.Return on average equity of 24.37%.Return on average assets of 1.87%.Operating revenue (net interest income, before the provision for loan losses, plus non-interest income) increased by 51% to $11.02 million.Total assets increased 75% reaching $957.48 million.Total loans (ex. HFS) increased 82% to $691.97 million.Total deposits increased 78% to $836.31 million.Shareholder equity increased 25% to $70.92 million.Book value increased 22% to $23.12 per share. “Continuing the momentum of achieving record profits for 2020, we generated record earnings for the first quarter of 2021, supported by significantly higher fee and interest income, primarily as a result of our participation in the Small Business Administration’s (‘SBA’) Paycheck Protection Program (‘PPP’),” said Steve Miller, President and Chief Executive Officer. “Our one non-accrual loan that had been consistently paying down for almost three years, was paid off in full and contributed $509,000 to interest income in the first quarter of 2021. Even without this one-time event, we would still have delivered record profits for the first quarter of 2021, as our substantial growth in earning assets over the last year outpaced our non-interest expense.” Nonperforming assets declined to $1.49 million from the linked quarter and there were no performing restructured loans at March 31, 2021. “In addition to higher interest income, our continued loan and total deposit growth also contributed to the bottom line with noninterest-bearing deposits increasing 75%, and the total loan portfolio growing by 78%, year-over-year. Noninterest-bearing deposits represented over 61% of total deposits at March 31, 2021,” continued Miller. “We also sold approximately $7.0 million in certificates of deposit from our investment portfolio and realized $312,000 in gain on sale income which was recognized through our non-interest income.” First Quarter 2021 non-recurring events that positively impacted earnings: The largest and only non-accrual loan relationship was paid off in full during the first quarter. As a result, the Company collected $509,000 in non-accrual interest as well as $5,000 in recovered collection expenses which reduced operating expenses.$7.0 million of investment holdings sold during the first quarter, resulting in a gain on sale of $312,000, increased non-interest income. The result of these one-time events increased after-tax net income by $606,000, which impacted certain key financial ratios. The following table provides a more normalized run rate by adjusting out the non-recurring items: Select Financial Information - Reconciliation of one-time eventsFinancial MetricIncome asreported Non-accruedinterest recoveryGain on saleof securitiesNormalizedrun rate Net interest income$ 9,239 -$ 509 $ 8,730Provision for loan losses$ 850 $ 850Net interest income after provision$ 8,389 $ 8,389 Non-interest income$ 1,778 -$ 312$ 1,466 Non-interest expense$ 4,445 $ 5 $ 4,450 Net income before tax$ 5,722 -$ 514-$ 312$ 4,896Tax provision$ 1,526 -$ 137-$ 83$ 1,306Net income after tax$ 4,196 -$ 377-$ 229$ 3,590 ROAA1.87% -0.17%-0.10%1.60%ROAE24.37% -2.19%-1.33%20.85% Net Interest Margin4.49% -0.17%N/A4.32% Efficiency Ratio41.52% 2.12%N/A43.64% “The pandemic lingering into 2021 is not what most people expected in early 2020,” said Miller. “Like all essential businesses, our team has had little relief and is weary at times, but I continue to be impressed by their commitment to each other and to our customers. It is a clear reminder that all great organizations start with their people and the values they embrace. Although we are otherwise optimistic about an improving economic outlook, and perhaps a summer turnaround, we continue to take necessary precautions in view of the ongoing uncertainty of the pandemic.” “The Economic Aid to Hard-Hit Small Businesses, Nonprofits and Venues Act of 2020 is providing new COVID-19 stimulus relief, and it includes $284 billion allocated for another round of PPP lending, extending the program to May 31, 2021. We have participated heavily in both the first round of PPP in 2020 and now this new round of PPP in Q1-2021,” continued Miller “For the second round we funded 328 PPP loans totaling $70.8 million. At the same time, we saw a consistent flow of requests for forgiveness of PPP loans funded in the second quarter of 2020. At March 31, 2021, we have 384, or 58%, of the original PPP loans totaling $119.4 million (65% of our original dollars funded) remaining on our books. At March 31, 2021, between both rounds of PPP, we had $4.1 million in deferred fees remaining to be accreted into income. We expect the majority of the first round PPP participants to apply for, and be granted, forgiveness between now and the end of the third quarter. As a result, we expect to see much of the $119 million in the original PPP loan balances payoff over the next 6-9 months.” COVID-19 Update California aims to ‘fully reopen’ its economy by June 15, 2021, as long as COVID-19 vaccinations remain widely available and hospitalizations continues to be stable, the governor and public health officials said Tuesday, April 6, 2021. The lifting of restrictions in June will happen statewide rather than county by county. The U.S. and California economies are expected to experience near-record growth in 2021 thanks to widespread vaccinations for COVID-19 and massive federal relief for struggling workers and businesses, UCLA forecasters predict. 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 March 31, 2021. Exposure to higher risk industries comprises approximately 6.0%, or $24.01 million, of the Bank’s loan portfolio, net of government guarantees, and is spread over 84 loans. Many of these customers received PPP loans and some customers were granted payment deferrals. Industry Segments Considered Higher Risk due to COVID($ in thousands) # of LoansBook Loan BalanceGovt. Guaranteed BalancesNet Exposure (Book - Govt. Gte.)% of Total Loans less Govt. Gte.Undisbursed Exposure Including Undisbursed% of Total Commitments less Govt. Gte. Higher Risk Retail Sales39$15,676$4,621$11,0552.8%$2,259$13,3142.5%Entertainment & Recreation2 364 283 810.0% 0 810.0%Lodging & Travel8 11,431 618 10,8132.7% 162 10,9752.1%Restaurants & Bars35 7,450 5,385 2,0650.5% 4,456 6,5211.2%Total84$ 34,921 $ 10,907 $ 24,014 6.0%$ 6,877 $ 30,890 5.9% Total Loan Portfolio 1,671 $ 691,966 $ 292,868 $ 399,098 100.0%$ 126,312 $ 525,369 100.0% 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 have paid off in full, and the majority have now returned to normal payment schedules.” At March 31, 2021, three loans totaling $5.86 million remain on payment deferral. Of the three loans remaining on deferral, two loans totaling $5.19 million, or 87.25% of the deferred total, are real estate secured, and only one loan for $747,909 is in an industry considered COVID high risk. The increase from the prior quarter is primarily a result of one, long time, client with a $4 million RE secured loan who requested and was granted a six-month deferral. The following table(s) break down the status of loans granted payment deferrals. Trend of Loan Deferrals Number of Loans on DeferralLoan Balances ($ in thousands)June 202057$25,845Sept. 202012$11,250Dec. 20208$2,444Mar. 20213$5,866 Status of Loans given a deferral as of 3/31/2021 Count Balance ($ in thousands)% of balance of all loans given adeferralNo longer in deferment and paid current43 $20,49074.9%Loan provided a deferment - now paid off13 $00.0%No longer in deferment - past due at 3/31/20215 $9953.6%Total no longer in deferment61 $21,48589.6% Remaining in deferment0 $00.0%New deferment2 $5,66796.6%2nd deferment1 $1993.4%Total in deferment as of 3/31/20213 $5,86610.4% Grand Total64 27,351100.0% Currently scheduled end of deferral periodCount Balance ($ in thousands)% of balance loansremaining ondeferralApr.2 $94716.1%May0 $00.0%Jun.0 $00.0%Beyond Jun.1 $4,91983.9%Grand Total3 $5,866100.0% SBA vs. Non-SBA breakdown of current deferredCount Balance ($ in thousands)% of balance loansremaining ondeferralNon-SBA3 $5,866100.0%SBA0 $00.0%Grand Total3 $5,866100.0% RE secured vs. Non-RE breakdown of current deferredCount Balance ($ in thousands)% of balance loans remaining on deferralRE Secured2 $5,11987.3%Non-RE Secured1 $74812.7%Grand Total3 $5,866100.0% Results of Operations Operating revenue, consisting of net interest income and non-interest income, increased 51% to $11.02 million for the first quarter of 2021, compared to $7.29 million for the first quarter a year ago, and was higher by 9% from $10.07 million for the fourth quarter of 2020. Net interest income, before the provision for loan losses, increased 58% to $9.24 million for the first quarter of 2021, compared to $5.84 million for the first quarter a year ago and increased 16% from $7.97 million for the fourth quarter of 2020. “The substantial growth in net interest income this last year was a result of the significant loan and investment growth that more than offset lower net interest margins caused by the current low interest rate environment,” said Steve Canfield, Chief Financial Officer. “During the current quarter, we also benefitted from the pay-off of a non-accrual loan that has been on the books for the last three years, which allowed us to recapture $509,000 of interest income.” The Bank’s net interest margin (“NIM”), which excludes interest expense on holding company sub-debt, remained solid at a tax-equivalent yield of 4.49% for the first quarter of 2021, compared to 4.61% for the first quarter of 2020, and expanded 54-basis points from 3.95% for the fourth quarter of 2020. “We maintained a high NIM in spite of the contraction from a year ago, primarily due to the low cost to fund earning assets and changes in the mix of our earning assets. The improvement of 54-basis points on a linked quarter basis was the result of PPP loan payoffs and the immediate recognition of outstanding deferred fees, together with the recapture of non-accrued interest as mentioned above,” stated Canfield. “Excluding the one-time non-accrued interest event and the impact from PPP, our NIM would have been 4.19% for the quarter” The yield on earning assets was 4.60% for the first quarter of 2021, compared to 4.85% for the first quarter a year ago, and 4.06% on a linked quarter basis. The cost to fund earning assets remained low at 0.10% for the first quarter of 2021, compared to 0.24% for the first quarter of 2020, and 0.11% on a linked quarter basis. Total non-interest income increased by 23% to $1.78 million for the first quarter of 2021, compared to $1.45 million for the first quarter of 2020, primarily due to increased deposit fees and merchant services income. Non-interest income declined by 15%, from $2.10 million on a linked quarter basis, as a result of a 97%, or $570,000, decline in gain on sale of loan income. “We made a decision to hold loans on our balance sheet that we were previously originating and selling to absorb liquidity and maximize earnings over the year,” stated Canfield. “We expect to begin selling loans again in the second quarter, but we will use the option of holding loans from time to time to manage liquidity and improve earnings.” The Company also sold approximately $7.0 million in CDs in their investment portfolio in the first quarter of 2021, which also favorably impacted non-interest income by $312,000. Revenue from merchant services increased 37% for the first quarter of 2021, compared to the first quarter a year ago, primarily as a result of continued strong organic customer growth and through our ISO partners. “Although merchant services revenue declined 5% on a linked quarter basis, our new ISO relationships will come online during the second quarter of 2021, and we forecast strong top-line revenue for the remainder of the year,” stated Canfield. Total deposit fee income increased by 120%, or $147,000, to $270,000 for the first quarter of 2021, compared to $123,000 for the first quarter of 2020. “The increase in fee income was a result of taking on certain clients considered higher risk in the industry that are less price sensitive,” said Canfield. On a linked quarter basis, deposit fee income increased 23% from $219,000. “We are pleased that non-interest income was up 23% from a year earlier, in spite of the slight dip in non-interest income on a linked quarter basis,” said Miller. “For the remainder of the year we expect merchant services revenue to increase as a result of growth in our own customer portfolio, but also from new strategic alliances with ISO partners who are now running significant volumes under our sponsorship. Our multi-family loan production from our Southern California team has been very strong, and we will begin to sell loans again to improve the gain on sale of loan line in the coming quarters.” Non-interest expense for the first quarter of 2021 was $4.45 million, a 17% increase over $3.79 million for the first quarter of 2020 and increased 3% from $4.30 million for the fourth quarter of 2020. The increase in non-interest expense year-over-year reflects our growing staff and as a result higher employee compensation expense to support growth, and investments made in enhancing the Company’s digital technology. “The decline in employee benefits on a linked quarter basis was primarily due to two factors,” explained Canfield. “During the first quarter, compensation expense was reduced by $164,000 related to loan origination expense for the 328 PPP loans booked. This benefit is not projected to be as high going forward. In addition, commission expense for certain types of loans was very low in the first quarter of 2021 and will likely increase going forward.” The efficiency ratio improved to 41.52% for the first quarter of 2021, compared to 52.39% for the first quarter a year ago, and 42.70% the fourth quarter of 2020. “We view the efficiency ratio as a key metric for long term success,” stated Canfield. “While non-interest expense increased 17% compared to the year ago quarter, total revenue was up 51% year-over-year. Growth of the balance sheet, revenue, and greater efficiency are all positives for generating shareholder value.” Balance Sheet Review Total assets increased 75% to $957.48 million, at March 31, 2021, from $548.32 million at March 31, 2020, and grew 10% from $871.35 million, at December 31, 2020. Total portfolio loans increased 82%, or $310.87 million, to $691.97 million at March 31, 2021, from $381.09 million a year ago, and increased 11%, or $71.20 million, from $620.77 million at December 31, 2020. Total loans at March 31, 2021, included $189.49 million of SBA PPP loans. “During the fourth quarter of 2020, we sold the portfolio of loans held for sale consisting of multi-family loans originated by the SoCal team,” explained Canfield. “In the first quarter of 2021, we decided to hold new multi-family loan production on the balance sheet to generate interest income and absorb liquidity. We will likely begin selling loans in the coming quarters or as needed to manage concentrations.” The commercial and industrial (C&I) portfolio increased 6% to $176.79 million from $166.18 million recorded a year ago and grew 2% when compared to the linked quarter. C&I loans represented 26% of total loans at March 31, 2021. Commercial real estate loans grew 68% to $250.71 million from the fourth quarter of 2020, and increased 11% on a linked quarter basis, representing 36% of total loans at March 31, 2021. Agriculture loans increased 19% to $37.48 million from a year ago and grew 13% from the fourth quarter of 2020, representing 5% of the loan portfolio, at March 31, 2021. Real estate construction and land development totaled $20.63 million, or 3% of loans, while residential RE 1-4 family loans totaled $16.65 million, or 2% of loans. SBA PPP loans represented 27% of the portfolio and there were $4.12 million in unamortized PPP fees capitalized on the balance sheet at quarter end. At March 31, 2021, the SBA, USDA, or other government agencies, guaranteed loans totaled $279.29 million, or 40% of the loan portfolio. The investment portfolio increased by $113.40 million, or 94%, to $233.43 million at March 31, 2021, from $120.04 million at March 31, 2020, and by $10.63 million, or 5%, from $222.81 million at December 31, 2020. The growth in the investment securities was primarily a result of the significant deposit gathering during the year resulting in tremendous liquidity coupled with overnight rates available for investment falling to near zero. Total deposits increased 78% to $836.31 million at March 31, 2021, compared to $470.53 million from a year earlier, and grew 15% from $726.25 million at December 31, 2020. Noninterest-bearing demand deposits increased by 75% to $511.50 million at March 31, 2021, compared to $292.45 million at March 31, 2020, and increased 14% from $446.92 million at December 31, 2020. Noninterest-bearing demand deposits represented over 61% of total deposits at March 31, 2021. “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 $100 million in Tier-1 capital, which was a key strategy for the sub-debt raised in 2020. Tier-1 capital at the Bank was $106.41million at quarter end, or 11.51% of assets. Net shareholders’ equity increased 25% to $70.92 million at March 31, 2021, compared to $56.80 million a year ago, and grew 3% from $68.55 million at December 31, 2020. Book value per common share increased 22% to $23.12 at March 31, 2021, compared to $19.00 at March 31, 2020, and 1% compared to $22.82 at December 31, 2020. Asset Quality Nonperforming assets were $1.49 million, 0.16% of total assets at March 31, 2021, compared to $1.15 million, or 0.21% of total assets at March 31, 2020. Performing restructured loans dropped to zero at quarter end, as the one non-accrual loan that had been on the books for almost three years was paid in full during the quarter. Past due loans 30-60 days totaled $5.82 million at March 31, 2021, compared to $1.14 million at March 31, 2020. The majority of past due loans are SBA loans eligible for payments to be made by the SBA. The Bank has requested payment from the SBA and was awaiting receipt at March 31, 2021. Past due loans from 60-90 days were $1.67 million at March 31, 2021, compared to $1.15 million a year earlier; there were no past due loans 90+ days at quarter end. The $1.67 million past due loan consists of a matured, participated construction loan for which the Bank was awaiting documentation from the lead bank. The Bank has a direct relationship with the same customer who is current on their other loans. The provision for loan losses was $850,000 for the first quarter of 2021, compared to $400,000 recorded in the first quarter of 2020. “Although our asset quality remains strong, we prudently added to reserves for loan losses in view of the uncertain economy, due to the pandemic, and as a result of the growth of our loan portfolio,” said Miller. The ratio of allowance for loan losses to total portfolio held for investment loans was 1.26% at March 31, 2021, compared to 1.30% a year earlier and 1.26% at March 31, 2020. “A large portion of our portfolio consists of loans guaranteed by the U.S. Government. This group of loans consists of fully guaranteed loans the Company has purchased, the PPP loans, as well as organic SBA and USDA loans the bank has originated. When the effect of these guarantees is considered relative to the loan portfolio, the ratio of allowance for loan losses to the total, non-guaranteed, loan portfolio was 2.11%, as of March 31, 2021,” added Miller. 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 $3 billion in assets for 2020, and #1 in California. Named to the 2019 OTCQX Best 50 and ranked one of the top performing OTCQX companies in the country, based on total return and growth in average daily dollar volume for 2018. The Bank was named to the Inc. 5000 Fastest Growing Companies list in 2017 and to Forbes Best 25 Small Businesses in America for 2016. Additional information is available from the Company’s website at www.fresnofirstbank.com or by calling 559-439-0200. 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:Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020 Dec. 31, 2020Mar. 31, 2020BALANCE SHEET DATA - PERIOD END BALANCES: Total assets$957,479 $871,347 $548,322 10%75% Total Loans 691,966 620,766 381,092 11%82% Investment securities 233,433 222,808 120,037 5%94% Total deposits 836,309 726,254 470,528 15%78% Shareholders equity, net$70,915 $68,546 $56,804 3%25% SELECT INCOME STATEMENT DATA: Gross revenue$11,017 $10,069 $7,285 9%51% Operating expense 4,445 4,299 3,785 3%17% Pre-tax, pre-provision income 6,572 5,770 3,500 14%88% Net income after tax$4,196 $3,253 $2,261 29%86% SHARE DATA: Basic earnings per share$1.37 $1.08 $0.76 26%81% Fully diluted earnings per share$1.35 $1.07 $0.75 27%82% Book value per common share$23.12 $22.82 $19.00 1%22% Common shares outstanding 3,067,907 3,004,331 2,989,524 2%3% Fully diluted shares 3,097,834 3,038,743 3,033,809 2%2% CFST - Stock price$41.00 $31.01 $23.00 32%78% RATIOS: Return on average assets 1.87% 1.50% 1.72% 25%9% Return on average equity 24.37% 19.73% 16.98% 24%44% Efficiency ratio 41.52% 42.70% 52.39% -3%-21% Bank Yield on earning assets 4.60% 4.06% 4.85% 13%-5% Bank Cost to fund earning assets 0.10% 0.11% 0.24% -3%-56% Bank Net Interest Margin 4.49% 3.95% 4.61% 14%-3% Equity to assets 7.41% 7.87% 10.36% -6%-29% Loan to deposits ratio 82.74% 85.48% 80.99% -3%2% Full time equivalent employees 62 58 55 7%13% BALANCE SHEET DATA - AVERAGES: Total assets$910,728 $862,478 $529,257 6%72% Total loans 653,894 595,544 369,888 10%77% Investment securities 224,899 198,824 108,744 13%107% Deposits 789,777 758,302 464,401 4%70% Shareholders equity, net$69,843 $65,570 $53,563 7%30% ASSET QUALITY: Total delinquent accruing loans$7,493 $1,031 $2,291 627%227% Nonperforming assets$1,491 $1,689 $1,146 -12%30% Non Accrual / Total Loans .22% .27% .30% -21%-28% Nonperforming assets to total assets .16% .19% .21% -20%-26% LLR / Total loans 1.26% 1.26% 1.30% -1%-3% STATEMENT OF INCOME ($ in thousands)For the Quarter Ended: Percentage Change From:(unaudited)Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020 Dec. 31, 2020Mar. 31, 2020Interest Income Loan interest income$8,349$7,098$5,318 18%57% Investment income 1,508 1,276 695 18%117% Int. on fed funds & CDs in other banks 51 81 94 -37%-46% Dividends from non-marketable equity 24 34 33 -29%-27% Interest income 9,932 8,489 6,140 17%62% Int. on deposits 228 229 273 0%-16% Int. on short-term borrowings 1 0 27 0%-96% Int. on long-term debt 464 295 0 57%0% Interest expense 693 524 300 32%131% Net interest income 9,239 7,965 5,840 16%58% Provision for loan losses 850 1,350 400 -37%113% Net interest income after provision 8,389 6,615 5,440 27%54% Non-Interest Income: Total deposit fee income 270 219 123 23%120% Debit / credit card interchange income 101 90 66 12%53% Merchant services income 961 1,009 699 -5%37% Gain on sale of loans 17 587 295 -97%-94% Other operating income 429 199 262 116%64% Non-interest income 1,778 2,104 1,445 -15%23% Non-Interest Expense: Salaries & employee benefits 2,606 2,928 2,255 -11%16% Occupancy expense 210 193 215 9%-2% Other operating expense 1,629 1,178 1,315 38%24% Non-interest expense 4,445 4,299 3,785 3%17% Net income before tax 5,722 4,420 3,100 29%85% Tax provision 1,526 1,167 839 31%82% Net income after tax$4,196$3,253$2,261 29%86% BALANCE SHEET ($ in thousands ) End of Period: Percentage Change From:(unaudited)Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020 Dec. 31, 2020Mar. 31, 2020ASSETS Cash and due from banks$16,765 $9,788 $8,331 71%101% Fed funds sold and deposits in banks 1,345 618 719 118%87% CDs in other banks 2,237 9,175 9,914 -76%-77% Investment securities 233,433 222,808 120,037 5%94% Loans held for sale 0 0 17,534 0%-100% Portfolio loans outstanding: RE constr & land development 20,631 15,754 20,070 31%3% Residential RE 1-4 Family 16,646 13,507 13,709 23%21% Commercial Real Estate 250,713 226,246 148,945 11%68% Agriculture 37,484 33,026 31,419 13%19% Commercial and Industrial 176,788 172,624 166,178 2%6% SBA PPP Loans 189,485 159,491 0 19%0% Consumer and Other 219 118 771 86%-72% Total Portfolio Loans 691,966 620,766 381,092 11%82% Deferred fees & discounts (4,930) (3,728) 4 32%Inf Allowance for loan losses (8,698) (7,848) (4,945) 11%76% Loans, net 678,338 609,190 376,151 11%80% Non-marketable equity investments 3,062 3,059 2,647 0%16% Cash value of life insurance 8,247 8,198 8,043 1%3% Accrued interest and other assets 14,052 8,511 4,946 65%184% Total assets$957,479 $871,347 $548,322 10%75% LIABILITIES AND EQUITY Non-interest bearing deposits$511,497 $446,920 $292,449 14%75% Interest checking 37,071 19,543 14,780 90%151% Savings 91,282 56,949 43,910 60%108% Money market 126,797 131,904 84,926 -4%49% Certificates of deposits 69,662 70,938 34,463 -2%102% Total deposits 836,309 726,254 470,528 15%78% Short-term borrowings 5,000 31,000 17,000 -84%-71% Long-term debt 39,165 39,126 0 0%0% Other liabilities 6,090 6,421 3,990 -5%53% Total liabilities 886,564 802,801 491,518 10%80% Common stock & paid in capital 31,753 30,997 30,571 2%4% Retained earnings 37,618 33,421 24,170 13%56% Total equity 69,371 64,418 54,741 8%27% Accumulated other comprehensive income 1,544 4,128 2,063 -63%-25% Shareholders equity, net 70,915 68,546 56,804 3%25% Total Liabilities and shareholders' equity$957,479 $871,347 $548,322 10%75% ASSET QUALITY ($ in thousands)Period Ended:(unaudited)Mar. 31, 2021Dec. 31, 2020Mar. 31, 2020Delinquent accruing loans 30-60 days$5,824 $1,021 $1,138 Delinquent accruing loans 60-90 days$1,669 $10 $1,153 Delinquent accruing loans 90+ days$0 $0 $0 Total delinquent accruing loans$7,493 $1,031 $2,291 Loans on non accrual$1,491 $1,689 $1,146 Other real estate owned$0 $0 $0 Nonperforming assets$1,491 $1,689 $1,146 Performing restructured loans$0 $430 $547 Delq 30-60 / Total Loans .84% .16% .30%Delq 60-90 / Total Loans .24% .00% .30%Delq 90+ / Total Loans .00% .00% .00%Delinquent Loans / Total Loans 1.08% .17% .60%Non Accrual / Total Loans .22% .27% .30%Nonperforming assets to total assets .16% .19% .21% Year-to-date charge-off activity Charge-offs$0 $40 $0 Recoveries$0 $47 $3 Net charge-offs$0 $(7)$(3)Annualized net loan losses (recoveries) to average loans .00% -.00% -.00% LOAN LOSS RESERVE RATIOS: Reserve for loan losses$8,698 $7,848 $4,945 Total loans$691,966 $620,766 $381,092 Purchased govt. guaranteed loans$43,931 $46,567 $55,707 Originated govt. guaranteed loans$235,360 $200,083 $37,099 LLR / Total loans 1.26% 1.26% 1.30%LLR / Loans less 100% govt. gte. loans (PPP and purchased) 1.90% 1.89% 1.52%LLR / Loans less all govt. guaranteed loans 2.11% 2.10% 1.72%LLR / Total assets .91% .90% .90% SELECT FINANCIAL TREND INFORMATION (unaudited)For the Quarter Ended:Mar. 31, 2021Dec. 31, 2020Sept. 30, 2020June 30, 2020Mar. 31, 2020BALANCE SHEET DATA - PERIOD END BALANCES: Total assets$957,479$871,347$831,003$756,739$548,322 Loans held for sale 0 0 28,294 18,306 17,534 Loans held for investment ex. PPP 502,481 461,275 404,980 388,544 381,092 PPP Loans 189,485 159,491 184,110 184,151 0 Investment securities 233,433 222,808 182,168 139,688 120,037 Non-interest bearing deposits 511,497 446,920 445,952 414,395 292,449 Interest bearing deposits 324,812 279,334 307,193 264,435 178,079 Total deposits 836,309 726,254 753,145 678,830 470,528 Short-term borrowings 5,000 31,000 10,000 11,761 17,000 Long-term debt 39,165 39,126 0 0 0 Total equity 69,371 64,418 61,028 57,863 54,741 Accumulated other comprehensive income 1,544 4,128 3,548 2,912 2,063 Shareholders equity, net$70,915$68,546$64,576$60,775$56,804 INCOME STATEMENT - QUARTERLY VALUES: Interest income$9,932$8,489$7,325$6,781$6,140 Int. on dep. & short-term borrowings 229 229 232 234 300 Int. on long-term debt 464 295 0 0 0 Interest expense 693 524 232 234 300 Net interest income 9,239 7,965 7,093 6,547 5,840 Non-interest income 1,778 2,104 1,733 1,791 1,445 Gross revenue 11,017 10,069 8,826 8,338 7,285 Provision for loan losses 850 1,350 750 800 400 Non-interest expense 4,445 4,299 3,963 3,461 3,785 Net income before tax 5,722 4,420 4,113 4,077 3,100 Tax provision 1,526 1,167 1,091 1,099 839 Net income after tax$4,196$3,253$3,022$2,978$2,261 BALANCE SHEET DATA - QUARTERLY AVERAGES: Total assets$910,728$862,478$781,339$697,443$529,257 Loans held for sale 0 9,934 23,677 17,213 14,902 Loans held for investment ex. PPP 473,185 422,505 386,819 380,025 369,888 PPP Loans 180,709 173,039 184,151 137,750 0 Investment securities 224,899 198,824 156,249 129,574 108,744 Non-interest bearing deposits 467,690 463,311 430,149 402,777 280,235 Interest bearing deposits 322,087 294,991 275,184 219,504 184,166 Total deposits 789,777 758,302 705,333 622,281 464,401 Short-term borrowings 6,182 8,223 10,277 13,566 8,193 Long-term debt 39,147 25,121 0 0 0 Total equity 66,429 62,258 58,927 54,812 52,878 Accumulated other comprehensive income 3,414 3,311 3,515 2,229 685 Shareholders equity, net$69,843$65,570$62,441$57,042$53,563 Contact: Steve Miller – President & CEOSteve Canfield – Executive Vice President & CFO(559) 439-0200
