Communities First Financial Corporation Earns $6.91 Million, or $2.20 per Diluted Share, for the Third Quarter of 2022
Communities First Financial Corporation (OTCQX: CFST) announced record third quarter 2022 net income of $6.91 million, up 32% from $5.22 million a year prior. Year-to-date net income came in at $18.90 million, reflecting a 25% increase. Total assets increased 16% to $1.19 billion. The company reported a 158% increase in merchant services income and strong loan growth of 11%. However, challenges include delays in SBA loan payments and a 3% decline in shareholder equity due to interest rate hikes. The Bank continues to monitor credit quality closely.
- Record net income of $6.91 million, a 32% increase year-over-year.
- Year-to-date net income of $18.90 million, up 25% from prior year.
- Total assets rose 16% to $1.19 billion.
- Merchant services income surged by 158% year-over-year.
- Loan portfolio grew 11% from a year earlier.
- Delays in SBA loan payments due to transfer agent changes.
- Shareholder equity declined by 3% to $81.42 million.
- Tangible common equity ratio fell to 6.85%.
FRESNO, Calif., Oct. 18, 2022 (GLOBE NEWSWIRE) -- Communities First Financial Corporation (the “Company”) (OTCQX: CFST), the parent company of Fresno First Bank (the “Bank”), today reported record third quarter 2022 net income of
“The team achieved record earnings for the quarter and for the first nine months of 2022,” said Steve Miller, President and Chief Executive Officer. “Year-over-year core deposit growth was solid, supporting strong organic loan growth which propelled our loan portfolio to increase
“Our merchant services income increased by
"Our credit metrics remained strong, as the majority of the delinquencies are purchased Small Business Administration (“SBA”) loans, which are
There was no provision for loan losses during the last two quarters while the allowance for loan losses remained strong at
“Going forward, our balance sheet remains well positioned to benefit from rising interest rates,” said Miller. “Together with our strong liquidity and capital levels, earnings capacity and our relationship focused employees, we believe are well positioned for further success as we head into the balance of the year and into 2023.”
Return on average equity (“ROAE”) was
Third Quarter 2022 Highlights: As of, or for the quarter ended September 30, 2022, compared to the quarter ended September 30, 2021:
- Pre-tax, pre-provision income increased
31% to$9.41 million . - Net income grew
32% to$6.91 million , or$2.20 per diluted share. - ROAE increased
27% to32.38% , and ROAA increased13% to2.30% - Gross revenue (net interest income, before the provision for loan losses, plus non-interest income) increased
35% to$16.23 million . - Total assets grew
16% to$1.19 billion . - Total portfolio loans grew
11% to$776.19 million . - Total deposits increased
17% to$1.04 billion . - Shareholder equity was
$81.42 million . - Book value per common share was
$26.02 . - The Company’s tangible common equity ratio was
6.85% , while the Bank’s regulatory leverage capital ratio was12.07% and total risk based capital ratio was17.36% , at September 30, 2022.
Results of Operations
Operating revenue, consisting of net interest income and non-interest income, increased
Net interest income, before the provision for loan losses, increased
The Company’s net interest margin (“NIM”), which excludes interest expense on holding company sub-debt, improved by 11 basis points to
The yield on earning assets was
Total non-interest income was
“We continue to see significant progress across our ISO partners and from our own organic ISO business, as our merchant service revenue grew by
| Merchant ISO Processing Volume Growth ($ in thousands) | ||||||||||||||||
| 2021 | 2022 | 2022 | 2022 | |||||||||||||
| ISOs | 1Q Volume | 2Q Volume | 3Q Volume | 4Q Volume | 1Q Volume | 2Q Volume | 3Q Volume | Start Date | ||||||||
| 1 | $ | 282,258 | $ | 324,996 | $ | 293,220 | $ | 232,303 | $ | 259,139 | $ | 243,719 | $ | 203,685 | ||
| 2 | 290,376 | 414,164 | 390,147 | 469,503 | 538,136 | 664,086 | 1,032,284 | |||||||||
| 3 | 8,303 | 10,824 | 20,362 | 25,891 | 26,390 | 30,570 | 27,266 | |||||||||
| 4 | 0 | 62 | 4,949 | 29,091 | 53,731 | 85,468 | 84,797 | |||||||||
| 5 | 0 | 130 | 5,379 | 44,378 | 89,180 | 145,434 | 132,096 | |||||||||
| 6 | 0 | 0 | 0 | 126,224 | 268,747 | 579,779 | 908,968 | |||||||||
| 7 | 0 | 0 | 0 | 32,196 | 70,793 | 44,601 | 47,994 | |||||||||
| 8 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 1/22/2022 | ||||||||
| 9 | 0 | 0 | 0 | 0 | 0 | 1,031 | 2,520 | 4/1/2022 | ||||||||
| 10 | 0 | 0 | 0 | 0 | 346 | 24,657 | 40,327 | 3/1/2022 | ||||||||
| Total Volume | $ | 580,938 | $ | 750,176 | $ | 714,057 | $ | 959,586 | $ | 1,306,462 | $ | 1,819,345 | $ | 2,479,937 | ||
For the third quarter, Organic ISO revenue grew
| Source of Merchant Services Revenue ($ in thousands) | |||||||||
| 2022 | 2022 | 2022 | |||||||
| Type of Revenue | 1Q | 2Q | 3Q | ||||||
| FFB Payments - (our merchant clients) | $ | 409 | $ | 477 | $ | 538 | |||
| Sponsored ISO Revenue | 1,270 | 1,692 | 1,628 | ||||||
| Total Merchange Services Revenue | $ | 1,679 | $ | 2,169 | $ | 2,166 | |||
Total deposit fee income increased
Non-interest expense for the third quarter of 2022 was
“As we continue to invest in key business strategies and focus on sales, payments and modernizing technology, we will hire critical talent to support our growth strategy. Like most businesses, we are seeing clear wage inflation across all job categories as well as an increase in basic staff benefits like medical insurance,” said Miller. Full-time employees increased to 99 at September 30, 2022, compared to 77 full-time employees a year ago, and 94 full-time employees from the linked quarter. As a result of the increased headcount from a year ago, salaries and employee benefits increased
Occupancy and equipment expense increased
The efficiency ratio was
Balance Sheet Review
Total assets increased
The total portfolio of loans increased
The commercial and industrial (C&I) portfolio increased
The investment portfolio increased
Total deposits increased
Shareholders’ equity declined
“The tangible common equity ratio was
“Our securities portfolio, which we mark to market monthly, has swung from a
At the Bank level, unrealized losses and gains are not included in regulatory capital. As a result, Tier-1 capital at the Bank was
Asset Quality
Nonperforming assets were
Total delinquent loans declined by
The Bank continues to hold approximately
“As detailed in the chart below, most of the delinquencies are purchased government guaranteed loans, which are guaranteed by the SBA for full payment of the principal plus interest,” commented Miller. “The SBA continues to deal with backlogs and consequently we continue to incur delays in payments. We are assured that full payment can be expected in the coming quarters.” The chart below breaks out the government guaranteed portion compared to the organic delinquencies.
| Delinquent Loan Summary | Organic | Purchased Govt. Guaranteed | Total | ||||||
| ($ in thousands) | |||||||||
| Delinquent accruing loans 30-60 days | $ | 246 | $ | 104 | $ | 350 | |||
| Delinquent accruing loans 60-90 days | 0 | - | - | ||||||
| Delinquent accruing loans 90+ days | 0 | 12,142 | 12,142 | ||||||
| Total delinquent accruing loans | $ | 246 | $ | 12,246 | $ | 12,492 | |||
| Loans on non accrual | $ | 4,325 | 0 | $ | 4,325 | ||||
There was no provision for loan losses for the second or third quarter of 2022, compared to
The ratio of allowance for loan losses to total 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. Communities First Financial Corp. ranked third in the nation against its peers in the Best Community Banks Category (below
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, the Company’s ability to effectively execute its business plans; changes in general economic and financial market conditions; changes in interest rates; and, in particular, actions taken by the Federal Reserve to try and control inflation; 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: | |||||||||||||||||||||
| Sept. 30, 2022 | June 30, 2022 | Sept. 30, 2021 | June 30, 2022 | Sept. 30, 2021 | Sept. 30, 2022 | Sept. 30, 2021 | Percent Change | |||||||||||||||||
| BALANCE SHEET DATA - PERIOD END BALANCES: | ||||||||||||||||||||||||
| Total assets | $ | 1,188,441 | $ | 1,144,334 | $ | 1,023,299 | 4 | % | 16 | % | ||||||||||||||
| Total portfolio loans | 776,190 | 722,632 | 700,318 | 7 | % | 11 | % | |||||||||||||||||
| Investment securities | 339,523 | 320,279 | 269,236 | 6 | % | 26 | % | |||||||||||||||||
| Total deposits | 1,044,733 | 1,004,152 | 893,249 | 4 | % | 17 | % | |||||||||||||||||
| Shareholders equity, net | $ | 81,420 | $ | 81,752 | $ | 84,243 | 0 | % | -3 | % | ||||||||||||||
| SELECT INCOME STATEMENT DATA: | ||||||||||||||||||||||||
| Gross revenue | $ | 16,225 | $ | 14,192 | $ | 12,056 | 14 | % | 35 | % | $ | 44,219 | $ | 36,114 | 22 | % | ||||||||
| Operating expense | 6,814 | 5,536 | 4,446 | 23 | % | 53 | % | 18,229 | 13,375 | 36 | % | |||||||||||||
| Pre-tax, pre-provision income | 9,411 | 8,656 | 7,610 | 9 | % | 24 | % | 25,990 | 22,739 | 14 | % | |||||||||||||
| Net income after tax | $ | 6,905 | $ | 6,208 | $ | 5,220 | 11 | % | 32 | % | $ | 18,903 | $ | 15,123 | 25 | % | ||||||||
| SHARE DATA: | ||||||||||||||||||||||||
| Basic earnings per share | $ | 2.21 | $ | 2.00 | $ | 1.70 | 11 | % | 30 | % | $ | 6.08 | $ | 4.93 | 23 | % | ||||||||
| Fully diluted earnings per share | $ | 2.20 | $ | 1.98 | $ | 1.68 | 11 | % | 31 | % | $ | 6.02 | $ | 4.88 | 23 | % | ||||||||
| Book value per common share | $ | 26.02 | $ | 26.29 | $ | 27.42 | -1 | % | -5 | % | ||||||||||||||
| Common shares outstanding | 3,128,903 | 3,109,755 | 3,071,957 | 1 | % | 2 | % | |||||||||||||||||
| Fully diluted shares | 3,142,410 | 3,139,747 | 3,102,925 | 0 | % | 1 | % | |||||||||||||||||
| CFST - Stock price | $ | 59.05 | $ | 55.20 | $ | 47.00 | 7 | % | 26 | % | ||||||||||||||
| RATIOS: | ||||||||||||||||||||||||
| Return on average assets | 2.30 | % | 2.25 | % | 2.04 | % | 2 | % | 13 | % | 2.23 | % | 2.08 | % | 7 | % | ||||||||
| Return on average equity | 32.38 | % | 30.25 | % | 25.52 | % | 7 | % | 27 | % | 29.67 | % | 26.96 | % | 10 | % | ||||||||
| Efficiency ratio | 41.99 | % | 39.01 | % | 36.87 | % | 8 | % | 14 | % | 41.22 | % | 37.34 | % | 10 | % | ||||||||
| Yield on earning assets | 4.67 | % | 4.37 | % | 4.23 | % | 7 | % | 10 | % | 4.47 | % | 4.37 | % | 2 | % | ||||||||
| Cost to fund earning assets | 0.07 | % | 0.07 | % | 0.08 | % | 2 | % | -11 | % | 0.08 | % | 0.10 | % | -17 | % | ||||||||
| Net Interest Margin | 4.58 | % | 4.29 | % | 4.14 | % | 7 | % | 11 | % | 4.38 | % | 4.27 | % | 3 | % | ||||||||
| Equity to assets | 6.85 | % | 7.14 | % | 8.23 | % | -4 | % | -17 | % | ||||||||||||||
| Loan to deposits ratio | 74.30 | % | 71.96 | % | 78.40 | % | 3 | % | -5 | % | ||||||||||||||
| Full time equivalent employees | 99.0 | 93.5 | 76.5 | 6 | % | 29 | % | |||||||||||||||||
| BALANCE SHEET DATA - AVERAGES: | ||||||||||||||||||||||||
| Total assets | $ | 1,193,828 | $ | 1,105,754 | $ | 1,017,060 | 8 | % | 17 | % | $ | 1,132,606 | $ | 969,965 | 17 | % | ||||||||
| Total loans | 733,672 | 693,985 | 700,818 | 6 | % | 5 | % | 717,629 | 684,656 | 5 | % | |||||||||||||
| Investment securities | 338,641 | 304,428 | 255,152 | 11 | % | 33 | % | 313,525 | 239,953 | 31 | % | |||||||||||||
| Deposits | 1,049,296 | 964,710 | 889,973 | 9 | % | 18 | % | 989,535 | 845,016 | 17 | % | |||||||||||||
| Shareholders equity, net | $ | 84,620 | $ | 82,304 | $ | 81,155 | 3 | % | 4 | % | $ | 85,169 | $ | 74,998 | 14 | % | ||||||||
| ASSET QUALITY: | ||||||||||||||||||||||||
| Total delinquent accruing loans | $ | 12,012 | $ | 15,395 | $ | 2,492 | -22 | % | 382 | % | ||||||||||||||
| Nonperforming assets | $ | 4,325 | $ | 2,747 | $ | 3,072 | 57 | % | 41 | % | ||||||||||||||
| Non Accrual / Total Loans | .56 | % | .38 | % | .44 | % | 47 | % | 27 | % | ||||||||||||||
| Nonperforming assets to total assets | .36 | % | .24 | % | .30 | % | 52 | % | 21 | % | ||||||||||||||
| LLR / Total loans | 1.25 | % | 1.35 | % | 1.40 | % | -7 | % | -10 | % | ||||||||||||||
| STATEMENT OF INCOME ($ in thousands) | For the Quarter Ended: | Percentage Change From: | For the Year Ended | |||||||||||||||||||||
| (unaudited) | Sept. 30, 2022 | June 30, 2022 | Sept. 30, 2021 | June 30, 2022 | Sept. 30, 2021 | Sept. 30, 2022 | Sept. 30, 2021 | Percent Change | ||||||||||||||||
| Interest Income | ||||||||||||||||||||||||
| Loan interest income | $ | 9,945 | $ | 8,949 | $ | 8,666 | 11 | % | 15 | % | $ | 28,121 | $ | 25,424 | 11 | % | ||||||||
| Investment income | 2,880 | 2,208 | 1,702 | 30 | % | 69 | % | 7,050 | 4,835 | 46 | % | |||||||||||||
| Int. on fed funds & CDs in other banks | 328 | 108 | 26 | 204 | % | 1162 | % | 456 | 95 | 380 | % | |||||||||||||
| Dividends from non-marketable equity | 57 | 93 | 41 | -39 | % | 39 | % | 157 | 108 | 45 | % | |||||||||||||
| Interest income | 13,210 | 11,358 | 10,435 | 16 | % | 27 | % | 35,784 | 30,462 | 17 | % | |||||||||||||
| Int. on deposits | 213 | 189 | 208 | 13 | % | 2 | % | 610 | 644 | -5 | % | |||||||||||||
| Int. on short-term borrowings | 0 | 2 | 0 | -100 | % | 0 | % | 3 | 4 | -25 | % | |||||||||||||
| Int. on long-term debt | 464 | 465 | 464 | 0 | % | 0 | % | 1,394 | 1,393 | 0 | % | |||||||||||||
| Interest expense | 677 | 656 | 672 | 3 | % | 1 | % | 2,007 | 2,041 | -2 | % | |||||||||||||
| Net interest income | 12,533 | 10,702 | 9,763 | 17 | % | 28 | % | 33,777 | 28,421 | 19 | % | |||||||||||||
| Provision for loan losses | 0 | 0 | 400 | 0 | % | -100 | % | - | 2,000 | -100 | % | |||||||||||||
| Net interest income after provision | 12,533 | 10,702 | 9,363 | 17 | % | 34 | % | 33,777 | 26,421 | 28 | % | |||||||||||||
| Non-Interest Income: | ||||||||||||||||||||||||
| Total deposit fee income | 601 | 541 | 427 | 11 | % | 41 | % | 1,618 | 1,111 | 46 | % | |||||||||||||
| Debit / credit card interchange income | 134 | 141 | 138 | -5 | % | -3 | % | 402 | 371 | 8 | % | |||||||||||||
| Merchant services income | 2,166 | 2,168 | 839 | 0 | % | 158 | % | 6,014 | 2,889 | 108 | % | |||||||||||||
| Gain on sale of loans | 621 | 497 | 672 | 25 | % | -8 | % | 1,921 | 2,570 | -25 | % | |||||||||||||
| Other operating income | 170 | 143 | 217 | 19 | % | -22 | % | 487 | 752 | -35 | % | |||||||||||||
| Non-interest income | 3,692 | 3,490 | 2,293 | 6 | % | 61 | % | 10,442 | 7,693 | 36 | % | |||||||||||||
| Non-Interest Expense: | ||||||||||||||||||||||||
| Salaries & employee benefits | 4,065 | 3,361 | 2,847 | 21 | % | 43 | % | 11,274 | 8,251 | 37 | % | |||||||||||||
| Occupancy expense | 287 | 297 | 212 | -3 | % | 35 | % | 819 | 625 | 31 | % | |||||||||||||
| Other operating expense | 2,462 | 1,878 | 1,387 | 31 | % | 78 | % | 6,136 | 4,499 | 36 | % | |||||||||||||
| Non-interest expense | 6,814 | 5,536 | 4,446 | 23 | % | 53 | % | 18,229 | 13,375 | 36 | % | |||||||||||||
| Net income before tax | 9,411 | 8,656 | 7,210 | 9 | % | 31 | % | 25,990 | 20,739 | 25 | % | |||||||||||||
| Tax provision | 2,506 | 2,448 | 1,990 | 2 | % | 26 | % | 7,087 | 5,616 | 26 | % | |||||||||||||
| Net income after tax | $ | 6,905 | $ | 6,208 | $ | 5,220 | 11 | % | 32 | % | $ | 18,903 | $ | 15,123 | 25 | % | ||||||||
| BALANCE SHEET ($ in thousands ) | End of Period: | Percentage Change From: | |||||||||||||
| (unaudited) | Sept. 30, 2022 | June 30, 2022 | Sept. 30, 2021 | June 30, 2022 | Sept. 30, 2021 | ||||||||||
| ASSETS | |||||||||||||||
| Cash and due from banks | $ | 21,212 | $ | 19,763 | $ | 9,775 | 7 | % | 117 | % | |||||
| Fed funds sold and deposits in banks | 7,995 | 38,294 | 29,499 | -79 | % | -73 | % | ||||||||
| CDs in other banks | 2,983 | 1,490 | 1,739 | 100 | % | 72 | % | ||||||||
| Investment securities | 339,523 | 320,279 | 269,236 | 6 | % | 26 | % | ||||||||
| Loans held for sale | 0 | 6,062 | 3,835 | -100 | % | -100 | % | ||||||||
| Portfolio loans outstanding: | |||||||||||||||
| RE constr & land development | 54,477 | 49,543 | 28,217 | 10 | % | 93 | % | ||||||||
| Residential RE 1-4 Family | 15,815 | 16,018 | 17,826 | -1 | % | -11 | % | ||||||||
| Commercial Real Estate | 452,727 | 404,971 | 333,595 | 12 | % | 36 | % | ||||||||
| Agriculture | 58,531 | 63,366 | 46,488 | -8 | % | 26 | % | ||||||||
| Commercial and Industrial | 192,683 | 184,618 | 189,856 | 4 | % | 1 | % | ||||||||
| SBA PPP Loans | 1,389 | 3,934 | 84,282 | -65 | % | -98 | % | ||||||||
| Consumer and Other | 568 | 182 | 54 | 212 | % | 952 | % | ||||||||
| Total Portfolio Loans | 776,190 | 722,632 | 700,318 | 7 | % | 11 | % | ||||||||
| Deferred fees & discounts | (2,618 | ) | (2,422 | ) | (3,868 | ) | 8 | % | -32 | % | |||||
| Allowance for loan losses | (9,738 | ) | (9,755 | ) | (9,785 | ) | 0 | % | 0 | % | |||||
| Loans, net | 763,834 | 710,455 | 686,665 | 8 | % | 11 | % | ||||||||
| Non-marketable equity investments | 5,553 | 5,203 | 4,071 | 7 | % | 36 | % | ||||||||
| Cash value of life insurance | 8,544 | 8,495 | 8,349 | 1 | % | 2 | % | ||||||||
| Accrued interest and other assets | 38,797 | 34,293 | 10,130 | 13 | % | 283 | % | ||||||||
| Total assets | $ | 1,188,441 | $ | 1,144,334 | $ | 1,023,299 | 4 | % | 16 | % | |||||
| LIABILITIES AND EQUITY | |||||||||||||||
| Non-interest bearing deposits | $ | 724,425 | $ | 695,977 | $ | 554,579 | 4 | % | 31 | % | |||||
| Interest checking | 30,345 | 33,521 | 31,915 | -9 | % | -5 | % | ||||||||
| Savings | 76,987 | 82,438 | 85,811 | -7 | % | -10 | % | ||||||||
| Money market | 172,206 | 148,022 | 152,542 | 16 | % | 13 | % | ||||||||
| Certificates of deposits | 40,770 | 44,194 | 68,402 | -8 | % | -40 | % | ||||||||
| Total deposits | 1,044,733 | 1,004,152 | 893,249 | 4 | % | 17 | % | ||||||||
| Short-term borrowings | 0 | 0 | 0 | 0 | % | 0 | % | ||||||||
| Long-term debt | 39,402 | 39,362 | 39,244 | 0 | % | 0 | % | ||||||||
| Other liabilities | 22,886 | 19,068 | 6,563 | 20 | % | 249 | % | ||||||||
| Total liabilities | 1,107,021 | 1,062,582 | 939,056 | 4 | % | 18 | % | ||||||||
| Common stock & paid in capital | 33,937 | 33,479 | 32,245 | 1 | % | 5 | % | ||||||||
| Retained earnings | 72,851 | 65,945 | 48,545 | 10 | % | 50 | % | ||||||||
| Total equity | 106,788 | 99,424 | 80,790 | 7 | % | 32 | % | ||||||||
| Accumulated other comprehensive income | (25,368 | ) | (17,672 | ) | 3,453 | 44 | % | -835 | % | ||||||
| Shareholders equity, net | 81,420 | 81,752 | 84,243 | 0 | % | -3 | % | ||||||||
| Total Liabilities and shareholders' equity | $ | 1,188,441 | $ | 1,144,334 | $ | 1,023,299 | 4 | % | 16 | % | |||||
| ASSET QUALITY ($ in thousands) | Period Ended: | ||||||||
| (unaudited) | Sept. 30, 2022 | June 30, 2022 | Sept. 30, 2021 | ||||||
| Delinquent accruing loans 30-60 days | $ | 350 | $ | 2,627 | $ | 934 | |||
| Delinquent accruing loans 60-90 days | 0 | $ | 1,813 | 0 | |||||
| Delinquent accruing loans 90+ days | $ | 11,662 | $ | 10,955 | $ | 1,558 | |||
| Total delinquent accruing loans | $ | 12,012 | $ | 15,395 | $ | 2,492 | |||
| Loans on non accrual | $ | 4,325 | $ | 2,747 | $ | 3,072 | |||
| Other real estate owned | 0 | 0 | 0 | ||||||
| Nonperforming assets | $ | 4,325 | $ | 2,747 | $ | 3,072 | |||
| Performing restructured loans | $ | 767 | $ | 771 | 0.0 | ||||
| Delq 30-60 / Total Loans | .05 | % | .36 | % | .13 | % | |||
| Delq 60-90 / Total Loans | .00 | % | .25 | % | .00 | % | |||
| Delq 90+ / Total Loans | 1.50 | % | 1.52 | % | .22 | % | |||
| Delinquent Loans / Total Loans | 1.55 | % | 2.13 | % | .36 | % | |||
| Non Accrual / Total Loans | .56 | % | .38 | % | .44 | % | |||
| Nonperforming assets to total assets | .36 | % | .24 | % | .30 | % | |||
| Year-to-date charge-off activity | |||||||||
| Charge-offs | $ | 56 | $ | 36 | $ | 64 | |||
| Recoveries | $ | 9 | $ | 6 | 0.0 | ||||
| Net charge-offs | $ | 47 | $ | 30 | $ | 64 | |||
| Annualized net loan losses (recoveries) to average loans | .01 | % | .01 | % | .01 | % | |||
| LOAN LOSS RESERVE RATIOS: | |||||||||
| Reserve for loan losses | $ | 9,738 | $ | 9,755 | $ | 9,785 | |||
| Total loans | $ | 776,190 | $ | 722,632 | $ | 700,318 | |||
| Purchased govt. guaranteed loans | $ | 31,386 | $ | 32,120 | $ | 43,806 | |||
| Originated govt. guaranteed loans | $ | 42,939 | $ | 42,292 | $ | 121,715 | |||
| LLR / Total loans | 1.25 | % | 1.35 | % | 1.40 | % | |||
| LLR / Loans less | 1.31 | % | 1.42 | % | 1.71 | % | |||
| LLR / Loans less all govt. guaranteed loans | 1.39 | % | 1.50 | % | 1.83 | % | |||
| LLR / Total assets | .82 | % | .85 | % | .96 | % | |||
| SELECT FINANCIAL TREND INFORMATION (unaudited) | For the Quarter Ended: | |||||||||||||||
| June 30, 2022 | June 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sept. 30, 2021 | ||||||||||||
| BALANCE SHEET DATA - PERIOD END BALANCES: | ||||||||||||||||
| Total assets | $ | 1,188,441 | $ | 1,144,334 | $ | 1,102,540 | $ | 1,080,103 | $ | 1,023,299 | ||||||
| Loans held for sale | 0 | 6,062 | 5,430 | 3,811 | 3,835 | |||||||||||
| Loans held for investment ex. PPP | 774,801 | 718,698 | 670,934 | 673,659 | 616,036 | |||||||||||
| PPP Loans | 1,389 | 3,934 | 22,378 | 52,594 | 84,282 | |||||||||||
| Investment securities | 339,523 | 320,279 | 291,975 | 291,969 | 269,236 | |||||||||||
| Non-interest bearing deposits | 724,425 | 695,977 | 611,890 | 594,044 | 554,579 | |||||||||||
| Interest bearing deposits | 320,308 | 308,175 | 349,620 | 342,505 | 338,670 | |||||||||||
| Total deposits | 1,044,733 | 1,004,152 | 961,510 | 936,549 | 893,249 | |||||||||||
| Short-term borrowings | 0 | 0 | 0 | 0 | 0 | |||||||||||
| Long-term debt | 39,402 | 39,362 | 39,323 | 39,283 | 39,244 | |||||||||||
| Total equity | 106,788 | 99,424 | 92,873 | 86,434 | 80,790 | |||||||||||
| Accumulated other comprehensive income | (25,368 | ) | (17,672 | ) | (7,296 | ) | 2,858 | 3,453 | ||||||||
| Shareholders equity, net | $ | 81,420 | $ | 81,752 | $ | 85,577 | $ | 89,292 | $ | 84,243 | ||||||
| INCOME STATEMENT - QUARTERLY VALUES: | ||||||||||||||||
| Interest income | $ | 13,210 | $ | 11,358 | $ | 11,216 | $ | 11,096 | $ | 10,435 | ||||||
| Int. on dep. & short-term borrowings | 213 | 191 | 209 | 213 | 208 | |||||||||||
| Int. on long-term debt | 464 | 465 | 464 | 464 | 464 | |||||||||||
| Interest expense | 677 | 656 | 673 | 677 | 672 | |||||||||||
| Net interest income | 12,533 | 10,702 | 10,543 | 10,419 | 9,763 | |||||||||||
| Non-interest income | 3,692 | 3,490 | 3,258 | 2,278 | 2,293 | |||||||||||
| Gross revenue | 16,225 | 14,192 | 13,801 | 12,697 | 12,056 | |||||||||||
| Provision for loan losses | 0 | 0 | 0 | 0 | 400 | |||||||||||
| Non-interest expense | 6,814 | 5,536 | 5,880 | 5,216 | 4,446 | |||||||||||
| Net income before tax | 9,411 | 8,656 | 7,921 | 7,481 | 7,210 | |||||||||||
| Tax provision | 2,506 | 2,448 | 2,132 | 2,076 | 1,990 | |||||||||||
| Net income after tax | $ | 6,905 | $ | 6,208 | $ | 5,789 | $ | 5,405 | $ | 5,220 | ||||||
| BALANCE SHEET DATA - QUARTERLY AVERAGES: | ||||||||||||||||
| Total assets | $ | 1,193,828 | $ | 1,105,754 | $ | 1,097,173 | $ | 1,074,440 | $ | 1,017,060 | ||||||
| Loans held for sale | 3,112 | 12,728 | 3,806 | 4,492 | 4,652 | |||||||||||
| Loans held for investment ex. PPP | 731,330 | 680,584 | 686,639 | 640,412 | 583,254 | |||||||||||
| PPP Loans | 2,342 | 13,401 | 38,497 | 67,283 | 117,564 | |||||||||||
| Investment securities | 338,641 | 304,428 | 297,048 | 284,958 | 255,152 | |||||||||||
| Non-interest bearing deposits | 732,827 | 654,968 | 603,185 | 593,190 | 555,860 | |||||||||||
| Interest bearing deposits | 316,469 | 309,742 | 350,362 | 348,036 | 334,113 | |||||||||||
| Total deposits | 1,049,296 | 964,710 | 953,547 | 941,227 | 889,973 | |||||||||||
| Short-term borrowings | 0 | 2,330 | 1,432 | 3 | 411 | |||||||||||
| Long-term debt | 39,383 | 39,344 | 39,305 | 39,265 | 39,225 | |||||||||||
| Total equity | 101,709 | 95,137 | 88,468 | 82,751 | 77,136 | |||||||||||
| Accumulated other comprehensive income | (17,089 | ) | (12,834 | ) | 159 | 2,497 | 4,019 | |||||||||
| Shareholders equity, net | $ | 84,620 | $ | 82,304 | $ | 88,627 | $ | 85,248 | $ | 81,155 | ||||||
| Contact: | Steve Miller – President & CEO |
| Steve Canfield – Executive Vice President & CFO | |
| (559) 439-0200 |
FAQ
What were the key financial highlights for CFST in Q3 2022?
How did CFST's merchant services income perform in Q3 2022?
What challenges is CFST facing regarding SBA loans?
What is the current status of CFST's shareholder equity?
How has CFST's loan portfolio changed year-over-year?
