Communities First Financial Corporation Earns $5.41 Million for 4Q-2021 and a Record $20.53 Million for the Full Year 2021

Rhea-AI Summary

Communities First Financial Corporation (OTCQX: CFST) reported a 66% increase in net income to $5.41 million for the fourth quarter of 2021, compared to $3.25 million in Q4 2020. For the full year, net income surged 78% to $20.53 million, reflecting strong business growth. Key metrics included a return on average equity of 26.46% and a net interest margin of 4.24%. Total deposits rose 29% to $936.55 million, and nonperforming assets decreased to 0.27% of total assets. The company emphasizes a robust financial position entering 2022.

Positive

• Net income up 66% in Q4 2021 to $5.41 million.
• Annual net income increased 78% to $20.53 million.
• Return on average equity (ROAE) at 26.46%.
• Net interest income surged 42% year-over-year.
• Total deposits increased 29% to $936.55 million.
• Nonperforming assets decreased to 0.27% of total assets.

Negative

• Interest expense on subordinated debt increased significantly.
• Total non-interest expenses grew 21% compared to Q4 2020.

FRESNO, Calif., Jan. 19, 2022 (GLOBE NEWSWIRE) -- Communities First Financial Corporation (the “Company”) (OTCQX: CFST), the parent company of Fresno First Bank (the “Bank”), today reported net income increased 66% to $5.41 million, or $1.74 per diluted share for the fourth quarter of 2021 (4Q-2021), compared to $3.25 million, or $1.07 per diluted share for the fourth quarter of 2020 (4Q-2020), and increased 4% from $5.22 million, or $1.68 per diluted share for the third quarter of 2021 (3Q-2021). For the year ended December 31, 2021, net income increased 78% to $20.53 million, or $6.62 per diluted share, compared to $11.51 million, or $3.79 per diluted share, for year ended December 31, 2020. All results are unaudited.

“Our quarterly results were a strong end to what was a record year on several measures,” said Steve Miller, President and Chief Executive Officer. “We achieved record net income and fully diluted EPS for 2021, supported by record revenue with net interest income up 42% for the year. Performance metrics for the year were highlighted by a return on average common equity (“ROAE”) of 26.46%, and a return on average assets (“ROAA”) of 2.06%, with an enviable efficiency ratio of 38.32% and a net interest margin (“NIM”) of 4.24%.” ROAE was 25.15%, ROAA was 2.00% and NIM was 4.16% for the fourth quarter of 2021.

“The Bank’s performance in 2021 was exceptional with loan growth accelerating in the fourth quarter, all while maintaining our consistent and disciplined underwriting standards. What is most impressive is our loan team’s success in replacing our SBA-PPP loans that received forgiveness from the SBA with new loans,” said Miller. “Total deposits also increased 29% at year-end as we continue to establish strong and meaningful client relationships. Credit quality remains sound with nonperforming assets declining from the preceding quarter, and there was no provision for loan losses booked in the fourth quarter of 2021.” Nonperforming assets to total assets were 0.27%, at December 31, 2021, compared to 0.30% from the preceding quarter.

“The successes of 2021 were a direct result of the outstanding dedication and effort of our employees. I want to thank our amazing team who work tirelessly to be our customers’ most trusted partner. We are operating from a position of strength as we enter 2022, and we will continue to work every day to create value for our investors, our customers, our communities and our employees.”

Fourth quarter 2021 Highlights:  As of, or for the quarter ended December 31, 2021, compared to the quarter ended December 31, 2020:

• Pre-tax, pre-provision income increased 69% to $7.48 million.
• Net income grew 66% to $5.41 million, or $1.74 per diluted share.
• Return on average equity of 25.15%.
• Return on average assets of 2.00%.
• Gross revenue (net interest income, before the provision for loan losses, plus non-interest income) increased by 26% to $12.70 million.
• Total assets grew 24% to $1.08 billion.
• Net loans increased 17% to $713.49 million.
• Total deposits increased 29% to $936.55 million.
• Shareholder equity increased 30% to $89.294 million.
• Book value increased 29% to $29.08 per share.

“Our new bank-wide loan origination system, which we initiated and announced in the third quarter of 2021, will be fully implemented during the first quarter of 2022. This system will enable the Bank to have a fully digital process for all of our lending teams,” added Miller. “We will leverage the efficiencies gained to help further scale our lending capabilities. In addition, we continue to work with our API partners to develop process improvements that will impact key strategic areas like customer onboarding and payments.”

Results of Operations

Gross revenue, consisting of net interest income and non-interest income, increased 26% to $12.70 million for the fourth quarter of 2021, compared to $10.07 million for the fourth quarter a year ago, and was up by 5% from $12.06 million for the third quarter of 2021. For the full year of 2021, operating revenue increased 41% to $48.81 million, compared to $34.52 million for 2020.

Net interest income, before the provision for loan losses, increased 31% to $10.42 million for the fourth quarter of 2021, compared to $7.97 million for the fourth quarter a year ago, and increased 7% from $9.77 million for the third quarter of 2021. For the full year of 2021, net interest income, before the provision for loan losses, increased 42% to $38.84 million from $27.44 million for 2020. Quarterly 2021 net interest income was impacted by interest expense of $464,000 on sub-debt issued in November 2020. Interest expense related to sub-debt was $1.39 million for the year ended December 31, 2021, compared to $295,000 interest expense on sub-debt in 2020. “The exceptional growth in net interest income for both the fourth quarter of 2021, and for the full year of 2021, was again a result of a growing loan portfolio and garnering higher yields from our investment portfolio,” said Steve Canfield, Chief Financial Officer.

The Bank’s net interest margin (“NIM”), which excludes interest expense on holding company sub-debt, expanded 21 basis points to 4.16% for the fourth quarter of 2021, from 3.95% for the fourth quarter of 2020, and improved by two-basis points from 4.14% for the preceding quarter. For the full year 2021, the NIM expanded 23 basis points to 4.24% compared to 4.01% for 2020. The expansion in the NIM in the fourth quarter and for the full year of 2021 was primarily due to the low cost to fund earnings assets and changes in the mix of earning assets, as well as additional interest and fee income from PPP loans.

The yield on earning assets was 4.25% for the fourth quarter of 2021, compared to 4.06% for the fourth quarter a year ago, and 4.23% on a linked quarter basis. The cost to fund earning assets remained low at 0.08% for the third and fourth quarter of 2021, compared to 0.11% for the fourth quarter of 2020. For the full year of 2021, the yield on earning assets was 4.34% compared to 4.15% for 2020. The cost to fund earning assets declined 33% to 0.10% for the full year of 2021, compared to 0.14% for 2020.

Total non-interest income was $2.28 million for fourth quarter of 2021, compared to $2.10 million for the fourth quarter of 2020, and $2.29 million for the preceding quarter. The slight decline in non-interest income on a linked quarter basis was primarily due to fewer loan sales which resulted in lower gain on sale of loans. For the full year of 2021, non-interest income increased 41% to $9.97 million compared to $7.07 million for 2020. The growth in non-interest income for the full year 2021, was primarily due to increased sales of SBA and multi-family loans resulting in greater gain on sale of loans, and secondarily due to increased deposit fee income.

“Most of our sponsored ISO partners are now generating revenue above their monthly minimums,” said Miller. “The increased volume from our partners during the latter part of 2021, provided momentum for our fee income as we come into 2022. Fourth quarter 20211 revenue was up $272,000, or 32%, compared to the prior quarter, which sets a high bar for the run rate.”

“Maximizing the payment ecosystem is a core strategy for the Bank going forward,” continued Miller. “During the fourth quarter, our payments team successfully implemented a direct relationship with a major payment processor, which enables the bank to become its own ISO. Many acquiring banks have their own ISO, and we feel this will enable us to better maximize some of our current merchant relationships from a revenue and risk management perspective. Controlling our own ISO will also allow us to work directly with various fintech payment platforms or smaller ISO partners in strategic verticals.”

Merchant ISO Processing Volume 2021 ($ in thousands)
ISOs	1Q Volume		2Q Volume		3Q Volume		4Q Volume		Start Date
1	$	282,258	$	324,996	$	293,220	$	232,303
2		290,376		404,895		349,143		335,557
3		8,303		10,824		20,362		25,891
4		0		9,270		41,004		133,946
5		0		62		4,949		29,091
6		0		130		5,379		44,378
7		0		0		0		126,224	7/19/2021
8		0		0		0		32,196	12/15/2021
9		0		0		0		0	1/22/2022
10		0		0		0		0	1/22/2022
Total Volume	$	580,938	$	750,176	$	714,057	$	959,586

“We sold $3.37 million of loans during the fourth quarter realizing $413,000 in gain on sale of loans, which favorably impacted non-interest income, but less so than the linked quarter and fourth quarter of 2020. We use the option of holding loans from time to time, as we manage liquidity and augment our earnings,” said Canfield. “Deposit fee income was also substantially higher from a year ago, which added to our non-interest income.”

Total deposit fee income increased 111%, or $243,000, to $462,000 for the fourth quarter of 2021, compared to $219,000 for the fourth quarter of 2020, and grew 8%, or $35,000, from $427,000 on a linked quarter basis. For the full year 2021, total deposit fee income increased 147% to $1.57 million, compared to $637,000 for 2020. Debit/credit card interchange income grew 51% from the fourth quarter a year ago and remained relatively flat from the third quarter of 2021. In fourth quarter of 2021, gain on sale of loans declined 30% over the fourth quarter a year earlier and fell 32% on a linked quarter basis. For the full year 2021, non-interest income increased 41% to $9.97 million compared to $7.07 million in 2020.

Non-interest expense for the fourth quarter of 2021 was $5.22 million, an increase of 21% compared to $4.30 million for the fourth quarter of 2020, and an increase of 17% from $4.45 million for the third quarter of 2021. For the full year 2021, non-interest expense increased 20% to $18.59 million compared to $15.51 million for 2020. Compensation and benefits expense is the largest non-interest expense component representing 62% of non-interest expense. In 2021 compensation and benefits expense increased to $11.52 million in 2021, compared to $9.70 million in 2020, an increase of 18.8%. The increase was primarily a result of increases in headcount growing to 77.5 full time equivalent, at December 31, 2021, from 58 full time equivalent employees at December 31, 2020 compared to Occupancy and equipment expense represents 4% of non-interest expense and was little changed year over year at $827,000 in 2021 compared to $823,000 in 2020.  Other operating expense represents the remaining 34% of non-interest expense and increased 25% in 2021 to $6.25 million from $4.99 million in 2020. Increases in data processing expense, software licenses and subscriptions, loan origination expense and recruitment expenses were the primary drivers of the increase.

Reflective of a high-performing franchise, the efficiency ratio was 41.09% for the fourth quarter of 2021, compared to 42.70% for the fourth quarter a year ago, and 36.87% for the third quarter of 2021. For the full year 2021, the efficiency ratio improved to 38.32% from 45.01% for 2020.

Balance Sheet Review

Total assets increased 24% to $1.08 billion at December 31, 2021, from $871.35 million at December 31, 2020, and grew 6% from $1.02 billion million at September 30, 2021.

The total portfolio of loans increased $105.49 million, or 17%, to $726.25 million at December 31, 2021 from $620.77 million at December 31, 2020, and grew $25.94 million, or 4%, from $700.32 million on a linked quarter basis. Total loans at December 31, 2021 included $52.59 million of SBA-PPP loans, a decrease of 67% from the fourth quarter a year ago and down 38% from the preceding quarter. “We sold approximately $3.37 million in SBA loans during the fourth quarter, and forgiven PPP loans paying off during the quarter totaled $31.69 million.”  

The commercial and industrial (C&I) portfolio increased 7% to $185.16 million, at December 31, 2021, from $172.62 million recorded a year earlier. C&I loans represented 25% of total loans at December 31, 2021. Commercial real estate loans increased 69% to $382.02 million at year end compared to year end 2020, and increased 15% on a linked quarter basis, representing 53% of total loans at December 31, 2021. “The CRE portfolio includes approximately $128.88 million in multi-family loans originated by our So Cal team that we may consider selling at some point in the future,” commented Canfield.  

Agriculture loans, representing 8% of the loan portfolio, at December 31, 2021, increased 74% to $57.35 million from a year ago and grew 23% from September 30, 2021. Real estate construction and land development loans totaled $31.92 million, or 4% of loans, while residential RE 1-4 family loans totaled $17.15 million, or 2% of loans. SBA-PPP loans represented 7% of the portfolio and there were $934,000 in unamortized PPP fees capitalized on the balance sheet at quarter end. At December 31, 2021, the SBA, USDA, or other government agencies, guaranteed loans totaled $131.99 million, or 18% of the loan portfolio.

The investment portfolio increased 31%, or $69.16 million, to $291.97 million at December 31, 2021, from $222.81 million at December 31, 2020, and increased 8%, or $22.73 million, from $269.24 million at September 30, 2021. “We continue to use the investment portfolio for liquidity purposes, to balance our overall asset/liability position, as well as for earnings. The growth has been primarily spread over a mix of mortgage backed and municipal securities, both tax exempt and taxable, treasury securities and some other domestic debt,” stated Canfield.

Total deposits increased 29% to $936.55 million at December 31, 2021, compared to $726.25 million from a year earlier, and grew 5% from $893.55 million at September 30, 2021. Noninterest-bearing demand deposits increased 33% to $594.04 million at December 31, 2021, compared to $446.92 million at December 31, 2020, and increased 7% from $554.58 million at September 30, 2021. Noninterest-bearing demand deposits represented over 63% of total deposits at December 31, 2021. Borrowed funds, excluding sub-debt, were zero at December 31, 2021 and September 30, 2021, compared to $31 million from a year earlier.

Shareholders’ equity increased 30% to $89.29 million at December 31, 2021, compared to $68.55 million a year ago, and grew 6% from $84.24 million at September 30, 2021. Book value per common share increased 29% to $29.08 at December 31, 2021, compared to $22.56 at December 31, 2020, and grew by 6% compared to $27.42 at September 30, 2021.

We have a strong capital base to support our continued growth, which will allow us pursue further opportunities as they might arise,” added Canfield. Tier-1 capital at the Bank was $125.81 million at quarter end, or 11.7% of assets.

Asset Quality

Nonperforming assets were $2.93 million, or 0.27% of total assets, at December 31, 2021, compared to $1.69 million, or 0.19% of total assets at December 31, 2020, and $3.02 million, or 0.20% of total assets at September 30, 2021. Included in nonperforming assets were $828,000 of restructured loans that were performing under the terms of their agreement(s) at December 31, 2021, compared to $430,000 performing restructured loans at December 30, 2020. There were no performing restructured loans in the preceding quarter. The nonperforming loans consisted of loans that were proactively placed on nonaccrual and are not COVID related.

Past due loans 30-60 days totaled $3.83 million at December 31, 2021, compared to $1.02 million at December 31, 2020, and $934,000 at September 30, 2021. Past due loans from 60-90 days were $254,000 at December 31, 2021, compared to $10,000 a year earlier. There were no past due loans in the 60-90 day category in the preceding quarter. Past due loans 90+ days at quarter end totaled $10,000, compared to no past due loans 90+ days from a year ago and $1.56 million at September 30, 2021. All past due loans at December 31, 2021 were purchased government guaranteed loans that the bank is ultimately guaranteed full payment of principal and interest.

There was no provision for loan losses for the fourth quarter of 2021, compared to $1.35 million recorded in the fourth quarter of 2020 and $400,000 booked in the linked quarter. For the full year 2021, the provision for loan losses was $2.0 million and the total reserve for loan losses was $9.79 million December 31, 2021. “Although we expect to continue benefitting from an improving economy, and from the anticipated rising interest rates in 2022, we continue to closely monitor credit quality,” said Miller. Net charge-offs for the year 2021 totaled $64,000.

The ratio of allowance for loan losses to total loans was 1.35% at December 31, 2021, compared to 1.26% a year earlier and 1.40% at September 30, 2021. “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 1.65%, as of December 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. Communities First Financial Corp. ranked third in the nation against its peers in the Best Community Banks Category (below $5 billion in assets) and third in the Best Growth Strategy selected from the top 50 banks in the study, reported by Bank Director. 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:					Year to Date as of:
		Dec. 31, 2021			Sept. 30, 2021			Dec. 31, 2020				Sept. 30, 2021		Dec. 31, 2020			Dec. 31, 2021			Dec. 31, 2020			Percent Change
BALANCE SHEET DATA - PERIOD END BALANCES:
	Total assets	$	1,080,103		$	1,023,299		$	871,347			6	%	24	%
	Total Loans		726,253			700,318			620,766			4	%	17	%
	Investment securities		291,969			269,236			222,808			8	%	31	%
	Total deposits		936,549			893,249			726,254			5	%	29	%
	Shareholders equity, net	$	89,292		$	84,243		$	68,546			6	%	30	%
SELECT INCOME STATEMENT DATA:
	Gross revenue	$	12,697		$	12,056		$	10,069			5	%	26	%		$	48,808		$	34,517		41	%
	Operating expense		5,216			4,446			4,299			17	%	21	%			18,591			15,508		20	%
	Pre-tax, pre-provision income		7,481			7,610			5,770			-2	%	30	%			30,217			19,009		59	%
	Net income after tax	$	5,405		$	5,220		$	3,253			4	%	66	%		$	20,526		$	11,513		78	%
SHARE DATA:
	Basic earnings per share	$	1.76		$	1.70		$	1.07			4	%	64	%		$	6.69		$	3.84		74	%
	Fully diluted earnings per share	$	1.74		$	1.68		$	1.07			4	%	62	%		$	6.62		$	3.79		75	%
	Book value per common share	$	29.08		$	27.42		$	22.56			6	%	29	%
	Common shares outstanding		3,070,307			3,071,957			3,038,743			-0	%	1	%
	Fully diluted shares		3,102,524			3,102,925			3,034,214			-0	%	2	%
	CFST - Stock price	$	57.00		$	47.00		$	31.01			21	%	84	%
RATIOS:
	Return on average assets		2.00%			2.04%			1.50%			-2	%	33	%			2.06%			1.60%		29	%
	Return on average equity		25.15%			25.52%			19.73%			-1	%	27	%			26.46%			19.29%		37	%
	Efficiency ratio		41.09%			36.87%			42.70%			11	%	-4	%			38.32%			45.01%		-15	%
	Yield on earning assets		4.25%			4.23%			4.06%			1	%	5	%			4.34%			4.15%		5	%
	Cost to fund earning assets		0.08%			0.08%			0.11%			-4	%	-26	%			0.10%			0.14%		-33	%
	Net Interest Margin		4.16%			4.14%			3.95%			1	%	5	%			4.24%			4.01%		6	%
	Equity to assets		8.27%			8.23%			7.87%			0	%	5	%
	Loan to deposits ratio		77.55%			78.40%			85.48%			-1	%	-9	%
	Full time equivalent employees		77.5			76.5			58.0			1	%	34	%
BALANCE SHEET DATA - AVERAGES:
	Total assets	$	1,074,440		$	1,017,060		$	862,478			6	%	25	%		$	996,298		$	718,199		39	%
	Total loans		707,695			700,818			595,544			1	%	19	%			690,463			513,925		34	%
	Investment securities		284,958			255,152			198,824			12	%	43	%			251,296			148,507		69	%
	Deposits		941,227			889,973			758,302			6	%	24	%			869,267			638,094		36	%
	Shareholders equity, net	$	85,248		$	81,155		$	65,570			5	%	30	%		$	77,581		$	59,678		30	%
ASSET QUALITY:
	Total delinquent accruing loans	$	4,096		$	2,492		$	1,031			64	%	297	%
	Nonperforming assets	$	2,930		$	3,072		$	1,689			-5	%	73	%
	Non Accrual / Total Loans		.40%			.44%			.27%			-8	%	48	%
	Nonperforming assets to total assets		.27%			.30%			.19%			-10	%	40	%
	LLR / Total loans		1.35%			1.40%			1.26%			-4	%	7	%

STATEMENT OF INCOME ($ in thousands)		For the Quarter Ended:										Percentage Change From:					For the Year Ended
(unaudited)		Dec. 31, 2021			Sept. 30, 2021			Dec. 31, 2020				Sept. 30, 2021		Dec. 31, 2020			Dec. 31, 2021			Dec. 31, 2020			Percent Change
Interest Income
	Loan interest income	$	9,103		$	8,666		$	7,098			5	%	28	%		$	34,527		$	24,662		40	%
	Investment income		1,853			1,702			1,276			9	%	45	%			6,688			3,624		85	%
	Int. on fed funds & CDs in other banks		30			26			81			15	%	-63	%			125			330		-62	%
	Dividends from non-marketable equity		110			41			34			168	%	224	%			218			119		83	%
	Interest income		11,096			10,435			8,489			6	%	31	%			41,558			28,735		45	%
	Int. on deposits		213			208			229			2	%	-7	%			858			963		-11	%
	Int. on short-term borrowings		0			0			0			0	%	0	%			4			33		-88	%
	Int. on long-term debt		464			464			295			0	%	57	%			1,858			295		530	%
	Interest expense		677			672			524			1	%	29	%			2,720			1,291		111	%
	Net interest income		10,419			9,763			7,965			7	%	31	%			38,838			27,444		42	%
	Provision for loan losses		0			400			1,350			-100	%	-100	%			2,000			3,300		-39	%
	Net interest income after provision		10,419			9,363			6,615			11	%	58	%			36,838			24,144		53	%
Non-Interest Income:
	Total deposit fee income		462			427			219			8	%	111	%			1,573			637		147	%
	Debit / credit card interchange income		136			138			90			-1	%	51	%			506			302		68	%
	Merchant services income		1,111			839			1,009			32	%	10	%			4,000			3,959		1	%
	Gain on sale of loans		413			672			587			-39	%	-30	%			2,984			1,490		100	%
	Other operating income		156			217			199			-28	%	-22	%			907			685		32	%
	Non-interest income		2,278			2,293			2,104			-1	%	8	%			9,970			7,073		41	%
Non-Interest Expense:
	Salaries & employee benefits		3,265			2,847			2,928			15	%	12	%			11,516			9,696		19	%
	Occupancy expense		202			212			193			-5	%	5	%			827			823		0	%
	Other operating expense		1,749			1,387			1,178			26	%	48	%			6,248			4,989		25	%
	Non-interest expense		5,216			4,446			4,299			17	%	21	%			18,591			15,508		20	%
	Net income before tax		7,481			7,210			4,420			4	%	69	%			28,217			15,709		80	%
	Tax provision		2,076			1,990			1,167			4	%	78	%			7,691			4,196		83	%
	Net income after tax	$	5,405		$	5,220		$	3,253			4	%	66	%		$	20,526		$	11,513		78	%

BALANCE SHEET ($ in thousands )		End of Period:										Percentage Change From:
(unaudited)		Dec. 31, 2021			Sept. 30, 2021			Dec. 31, 2020				Sept. 30, 2021		Dec. 31, 2020
ASSETS
	Cash and due from banks	$	13,418		$	9,775		$	9,788			37	%	37	%
	Fed funds sold and deposits in banks		23,362			29,499			618			-21	%	3680	%
	CDs in other banks		1,490			1,739			9,175			-14	%	-84	%
	Investment securities		291,969			269,236			222,808			8	%	31	%
	Loans held for sale		3,811			3,835			0			-1	%	0	%
	Portfolio loans outstanding:
	RE constr & land development		31,916			28,217			15,754			13	%	103	%
	Residential RE 1-4 Family		17,150			17,826			13,507			-4	%	27	%
	Commercial Real Estate		382,023			333,595			226,246			15	%	69	%
	Agriculture		57,348			46,488			33,026			23	%	74	%
	Commercial and Industrial		185,155			189,856			172,624			-2	%	7	%
	SBA PPP Loans		52,594			84,282			159,491			-38	%	-67	%
	Consumer and Other		67			54			118			24	%	-43	%
	Total Portfolio Loans		726,253			700,318			620,766			4	%	17	%
	Deferred fees & discounts		(2,981	)		(3,868	)		(3,728	)		-23	%	-20	%
	Allowance for loan losses		(9,785	)		(9,785	)		(7,848	)		0	%	25	%
	Loans, net		713,487			686,665			609,190			4	%	17	%
	Non-marketable equity investments		4,132			4,071			3,059			1	%	35	%
	Cash value of life insurance		8,397			8,349			8,198			1	%	2	%
	Accrued interest and other assets		20,037			10,130			8,511			98	%	135	%
	Total assets	$	1,080,103		$	1,023,299		$	871,347			6	%	24	%
LIABILITIES AND EQUITY
	Non-interest bearing deposits	$	594,044		$	554,579		$	446,920			7	%	33	%
	Interest checking		26,277			31,915			19,543			-18	%	34	%
	Savings		81,324			85,811			56,949			-5	%	43	%
	Money market		168,423			152,542			131,904			10	%	28	%
	Certificates of deposits		66,481			68,402			70,938			-3	%	-6	%
	Total deposits		936,549			893,249			726,254			5	%	29	%
	Short-term borrowings		0			0			31,000			0	%	-100	%
	Long-term debt		39,283			39,244			39,126			0	%	0	%
	Other liabilities		14,979			6,563			6,421			128	%	133	%
	Total liabilities		990,811			939,056			802,801			6	%	23	%
	Common stock & paid in capital		32,486			32,245			30,997			1	%	5	%
	Retained earnings		53,948			48,545			33,421			11	%	61	%
	Total equity		86,434			80,790			64,418			7	%	34	%
	Accumulated other comprehensive income		2,858			3,453			4,128			-17	%	-31	%
	Shareholders equity, net		89,292			84,243			68,546			6	%	30	%
	Total Liabilities and shareholders' equity	$	1,080,103		$	1,023,299		$	871,347			6	%	24	%

ASSET QUALITY ($ in thousands)	Period Ended:
(unaudited)	Dec. 31, 2021			Sept. 30, 2021			Dec. 31, 2020
Delinquent accruing loans 30-60 days	$	3,832		$	934		$	1,021
Delinquent accruing loans 60-90 days	$	254			0.0		$	10
Delinquent accruing loans 90+ days	$	10		$	1,558			0.0
Total delinquent accruing loans	$	4,096		$	2,492		$	1,031
Loans on non accrual	$	2,930		$	3,072		$	1,689
Other real estate owned		0.0			0.0			0.0
Nonperforming assets	$	2,930		$	3,072		$	1,689
Performing restructured loans	$	828			0.0		$	430
Delq 30-60 / Total Loans		.53%			.13%			.16%
Delq 60-90 / Total Loans		.04%			.00%			.00%
Delq 90+ / Total Loans		.00%			.22%			.00%
Delinquent Loans / Total Loans		.56%			.36%			.17%
Non Accrual / Total Loans		.40%			.44%			.27%
Nonperforming assets to total assets		.27%			.30%			.19%
Year-to-date charge-off activity
Charge-offs	$	64		$	64		$	40
Recoveries		0.0			0.0		$	47
Net charge-offs	$	64		$	64		$	(7	)
Annualized net loan losses (recoveries) to average loans		.01%			.01%			-.00%
LOAN LOSS RESERVE RATIOS:
Reserve for loan losses	$	9,785		$	9,785		$	7,848
Total loans	$	726,253		$	700,317		$	620,766
Purchased govt. guaranteed loans	$	41,497		$	43,806		$	46,567
Originated govt. guaranteed loans	$	90,493		$	121,715		$	200,083
LLR / Total loans		1.35%			1.40%			1.26%
LLR / Loans less 100% govt. gte. loans (PPP and purchased)		1.55%			1.71%			1.89%
LLR / Loans less all govt. guaranteed loans		1.65%			1.83%			2.10%
LLR / Total assets		.91%			.96%			.90%

 

SELECT FINANCIAL TREND INFORMATION (unaudited)		For the Quarter Ended:
		Dec. 31, 2021		Sept. 30, 2021		June 30, 2021		Mar. 31, 2021		Dec. 31, 2020
BALANCE SHEET DATA - PERIOD END BALANCES:
	Total assets	$	1,080,103	$	1,023,299	$	988,481	$	957,479	$	871,347
	Loans held for sale		3,811		3,835		3,852		0		0
	Loans held for investment ex. PPP		673,659		616,036		563,160		502,481		461,275
	PPP Loans		52,594		84,282		140,317		189,485		159,491
	Investment securities		291,969		269,236		251,618		233,433		222,808
	Non-interest bearing deposits		594,044		554,579		527,259		511,497		446,920
	Interest bearing deposits		342,505		338,670		337,288		324,812		279,334
	Total deposits		936,549		893,249		864,547		836,309		726,254
	Short-term borrowings		0		0		0		5,000		31,000
	Long-term debt		39,283		39,244		39,204		39,165		39,126
	Total equity		86,434		80,790		75,344		69,371		64,418
	Accumulated other comprehensive income		2,858		3,453		3,415		1,544		4,128
	Shareholders equity, net	$	89,292	$	84,243	$	78,759	$	70,915	$	68,546
INCOME STATEMENT - QUARTERLY VALUES:
	Interest income	$	11,096	$	10,435	$	10,095	$	9,932	$	8,489
	Int. on dep. & short-term borrowings		213		208		210		229		229
	Int. on long-term debt		464		464		464		464		295
	Interest expense		677		672		674		693		524
	Net interest income		10,419		9,763		9,421		9,239		7,965
	Non-interest income		2,278		2,293		3,621		1,778		2,104
	Gross revenue		12,697		12,056		13,042		11,017		10,069
	Provision for loan losses		0		400		750		850		1,350
	Non-interest expense		5,216		4,446		4,484		4,445		4,299
	Net income before tax		7,481		7,210		7,808		5,722		4,420
	Tax provision		2,076		1,990		2,100		1,526		1,167
	Net income after tax	$	5,405	$	5,220	$	5,708	$	4,196	$	3,253
BALANCE SHEET DATA - QUARTERLY AVERAGES:
	Total assets	$	1,074,440	$	1,017,060	$	980,937	$	910,728	$	862,478
	Loans held for sale		4,492		4,652		12,485		0		9,934
	Loans held for investment ex. PPP		640,412		583,254		521,676		473,185		422,505
	PPP Loans		67,283		117,564		177,065		180,709		173,039
	Investment securities		284,958		255,152		239,475		224,899		198,824
	Non-interest bearing deposits		593,190		555,860		502,819		467,690		463,311
	Interest bearing deposits		348,036		334,113		351,378		322,087		294,991
	Total deposits		941,227		889,973		854,198		789,777		758,302
	Short-term borrowings		3		411		7,516		6,182		8,223
	Long-term debt		39,265		39,225		39,186		39,147		25,121
	Total equity		82,751		77,136		71,477		66,429		62,258
	Accumulated other comprehensive income		2,497		4,019		2,394		3,414		3,311
	Shareholders equity, net	$	85,248	$	81,155	$	73,870	$	69,843	$	65,570

 

Contact:	Steve Miller – President & CEO
	Steve Canfield – Executive Vice President & CFO
	(559) 439-0200

FAQ

What is Communities First Financial Corporation's net income for Q4 2021?

The net income for Q4 2021 is $5.41 million, a 66% increase from Q4 2020.

How much did total deposits increase for CFST in 2021?

Total deposits increased by 29% to $936.55 million by the end of 2021.

What was the return on average equity (ROAE) for CFST in 2021?

The return on average equity for 2021 was 26.46%.

How did net interest income perform for Communities First Financial in 2021?

Net interest income increased by 42% year-over-year, reaching $38.84 million.

What percentage did nonperforming assets drop to for CFST?

Nonperforming assets dropped to 0.27% of total assets as of December 31, 2021.