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Communities First Financial Corporation Profits Soar 92 % to $ 5.71 Million for 2Q - 2021 from $ 2.98 Million for 2Q - 2020 Company Release - 7/20/2021 9:00 AM ET 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 ) . For the first six months of 2021 , net income increased 89 % to $ 9.90 million , or $ 3.20 per diluted share , compared to $ 5.24 million , or $ 1.73 per diluted share , for the first six months of 2020. All results are unaudited . " Second quarter results were stellar with net income nearly doubling from a year ago , led by exceptional gross revenue production , a return on average common equity of 30.99 % , return on average assets of 2.33 % and an improved efficiency ratio of 34.34 % at quarter end , " said Steve Miller , President and Chief Executive Officer . " Our net interest margin ( " NIM " ) was solid at 4.20 % for the quarter and 4.34 % year - to - date with non - interest income growing over 100 % from the preceding quarter , primarily due to gain on sale of loans and higher deposit fee income . Excluding the impact of the Small Business Administration's ( ' SBA ' ) Paycheck Protection Program ( ' PPP ' ) loans , our core NIM remained steady at 4.19 % for both the first and second quarters of 2021. " Nonperforming assets continued to decline with nonperforming assets at 0.10 % of total assets with zero nonperforming restructured loans , at June 30 , 2021 . " Our franchise is growing , and we continue to focus on driving top line revenue growth through cultivating new customer relationships , " said Miller . " We made substantial progress with our digital presence over the last year , but we are looking forward to getting back out into our communities and meeting face - to - face with our customers and prospects . " Interest income was higher by 49 % with meaningful loan and deposit growth . Investment securities also increased by 80 % from a year earlier . At June 30 , 2021 , deposits totaled $ 864.55 million , up 27 % from a year ago with noninterest - bearing deposits representing 61 % of total deposits ; net loans grew 23 % to $ 689.33 million year - over - year , and shareholders ' equity increased by 30 % to $ 78.76 million from a year ago . " With improving economic conditions and increasing consumer confidence , our overall franchise is ramping up and we are well- positioned to take advantage of the recovery and renewed business , " stated Miller . " We will continue to invest in our franchise to create growth , and we expect these investments to drive further revenue streams creating value for our customers and shareholders . In spite of the pandemic disruption , I am proud of our employees who have dedicated themselves to our customers ' and Company's success . " Second Quarter 2021 Highlights : As of , or for the quarter ended June 30 , 2021 , compared to the quarter ended June 30 , 2020 : ■ Pre - tax , pre - provision income increased 92 % to $ 8.56 million . .Net income climbed 92 % to $ 5.71 million or $ 1.84 per diluted share . ■ Return on average equity of 30.99 % . ■ Return on average assets of 2.33 % . ■ Operating revenue ( net interest income , before the provision for loan losses , plus non - interest income ) increased by 56 % to $ 13.04 million . ■ Total assets increased 31 % reaching $ 988.48 million . ■ Total loans ( ex . HFS ) increased 23 % to $ 703.48 million . ■ Total deposits increased 27 % to $ 864.55 million . ■ Shareholder equity increased 30 % to $ 78.76 million . ■ Book value increased 27 % to $ 25.63 per share . The Economic Aid to Hard - Hit Small Businesses , Nonprofits and Venues Act of 2020 has provided new COVID - 19 stimulus relief , which included $ 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 the new round of PPP in the first half of 2021 , " continued Miller " For the second round we funded 392 PPP loans totaling $ 76.8 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 June 30 , 2021 , we have 254 , or 39 % , of the original PPP loans totaling $ 63.5 million ( 34 % of our original dollars funded ) remaining on our books . At June 30 , 2021 , between both rounds of PPP , we had $ 3.1 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 $ 63.5 million in the original PPP loan balances payoff over the next 3-6 months . " COVID - 19 Update California has fully reopened its economy . This means no more physical distancing , no capacity limits , no county tiers , and relaxed mask guidance . California has remained fully open since June 15 , 2021 , when the lifting of restrictions went into effect statewide . On July 12 , 2021 , Governor Gavin Newsom signed SB 129 legislation that reflects the majority of the 2021-22 state budget agreement . This transformative budget includes the biggest economic recovery package in California's history - a $ 100 billion California Comeback Plan . Fueled by a resurgent economy , a surge in state revenues and additional federal recovery funds , the $ 75.7 billion surplus reflected in the California Comeback Plan stands in stark contrast to the $ 54.3 billion budget shortfall estimated just over a year ago . The budget is built on a strong fiscal foundation that includes over $ 25 billion in reserves , pays off educational deferrals and continues to pay down long - term retirement debts . It also appropriately prioritizes one - time spending over ongoing , allocating 85 % of discretionary funds to one - time spending . https://covid19.ca.gov/safely-reopening/#reopening-california https://www.gov.ca.gov/2021/07/12/california-roars-back-governor-newsom-signs-100-billion-california-comeback-plan-to- accelerate - states - recovery - and - tackle - persistent - challenges / Credit Risk as a Result of the Pandemic