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Communities First Financial Corporation Surpasses $ 1 Billion in Total Assets ; Profits Rise 73 % to $ 5.22 Million for 3Q - 2021 from $ 3.02 Million for 3Q - 20Embarks on New API Technology in 3Q - 2021 Company Release 10/19/2021 9:00 AM ET FRESNO , Calif . , Oct. 19 , 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 73 % to $ 5.22 million , or $ 1.68 per diluted share for the third quarter of 2021 ( 3Q - 2021 ) , compared to $ 3.02 million , or $ 1.00 per diluted share for the third quarter of 2020 ( 3Q - 2020 ) , and declined 9 % from $ 5.71 million , or $ 1.84 per diluted share for the second quarter of 2021 ( 2Q - 2021 ) . For the first nine months of 2021 , net income increased 83 % to $ 15.12 million , or $ 4.88 per diluted share , compared to $ 8.26 million , or $ 2.72 per diluted share , for the first nine months of 2020. All results are unaudited . " Our third quarter results reflect the continued successful implementation of our strategic growth plan , " said Steve Miller , President and Chief Executive Officer . " Net income increased 73 % from a year ago , and we delivered a return on average common equity of 25.52 % , a return on average common assets of 2.04 % , and a best in class efficiency ratio of 36.87 % . Our total assets crossed the $ 1.0 billion mark , supported by robust loan and deposit growth , both of which increased 19 % from the year ago quarter . We also benefited from an acceleration of the Paycheck Protection Program ( ' PPP ' ) loan fee income totaling $ 1.23 million . Our capital and liquidity positions remain strong , and we are well positioned to benefit from an improving local economy . " " Credit metrics remained solid with no loans on deferral at quarter end , as all our clients returned to their regular payment schedule , " said Miller . " Although nonperforming assets increased in the third quarter , we proactively placed the delinquent loans on nonaccrual and established a good workout plan with the largest borrower . With the exception of one $ 58,000 loan 30 days past due , all of the delinquencies are purchased Small Business Administration ( ' SBA ' ) loans , which are 100 % guaranteed for principal and interest . However , because the SBA changed its fiscal transfer agent from Colson to Guidehouse in the third quarter , there has been a delay in payments . Out of an abundance of caution , we reserved $ 400,000 for the provision for loan losses while our allowance for loan losses remained strong at 1.40 % to total loans , and 1.83 % of total loans less government guaranteed balances , at September 30 , 2021. " " We embarked on a technology project during the third quarter , which focuses on building our own Application Programming Interface ( ' API ' ) bridge to make it quick , convenient and cost - effective for our Bank and third parties to connect , " said Miller . " This API bridge will enable us to gain some independence from our core system and provide us more flexibility when partnering with best in class tech solutions . In addition , the Bank will go live with a new loan origination system in the fourth quarter with an aim to enhance work flows and board loans more quickly . We believe this system will enable us to scale our lending business without saddling the critical loan operations area with excess headcount . The market reality is that we must always be looking for ways to enhance our customer experience and also seek more efficient ways to operate internally by leveraging technology solutions . These incremental gains will help maximize our headcount and keep our efficiency ratio low . " Third quarter 2021 Highlights : As of , or for the quarter ended September 30 , 2021 , compared to the quarter ended September 30 , 2020 : ■ Pre - tax , pre - provision income increased 56 % to $ 7.21 million . ■ Net income climbed 73 % to $ 5.22 million or $ 1.68 per diluted share . ⚫ Return on average equity of 25.52 % . ■ Return on average assets of 2.04 % . • Operating revenue ( net interest income , before the provision for loan losses , plus non - interest income ) increased by 37 % to $ 12.06 million . ■ Total assets grew 23 % to $ 1.02 billion . ■ Total loans ( ex . HFS ) increased 19 % to $ 700.32 million . ■ Total deposits increased 19 % to $ 893.25 million . ■ Shareholder equity increased 30 % to $ 84.24 million . ■ Book value increased 28 % to $ 27.42 per share . Covid - 19 Update : ⚫ Communities First participated in the SBA PPP loan programs since the onset of the pandemic , originating a total of $ 261 million in PPP loans and generating PPP loan fees receivable of approximately $ 8.50 million . ⚫ At September 30 , 2021 , the Bank had received forgiveness from the SBA for $ 176.72 million in PPP loans , with $ 84.28 million left on the books at quarter end . ■ Approximately $ 1.23 million , or 10.23 % , of the gross revenue recognized during the third quarter of 2021 was related to recognizing origination fees from PPP loans , compared to $ 1.33 million , or 10.19 % , of revenue recognized during the second quarter of 2021 . ■ PPP loans generated total interest and fee income of $ 1.77 million during the third quarter of 2021 , compared to $ 1.92 million during the second quarter of 2021 . ■ At September 30 , 2021 , there was $ 1.86 million in deferred PPP fees capitalized on the balance sheet . ■ The majority of the remaining PPP loan balances is expected to be forgiven or paid off and the related fees accreted into income within the next few quarters . ■ A small percentage of clients requested and were granted deferrals but as of June 30 , and September 30 , 2021 , we had no loans on deferral . Fresno Economic Update : According to GV Wire , " Fresno scored high on a list of cities in the United States making a strong economic recovery from the COVID - 19 pandemic . According to a report by SmartAsset , published on August 2 , 2021 , Fresno ranked No. 2 among 49 of the largest U.S. cities with the strongest recoveries from the COVID - 19 recession by providing gainful opportunities for employment . That catapulted Fresno to the top of the list , with an overall score of 93.33 out of 100 based on components like , changes in consumer spending , small business openings , job postings and unemployment rates . "