Written by The Business Journal Staff
Communities First Financial Corp., parent company of Fresno First Bank, reported record profit of $3.7 million for 2017, up 20 percent compared to 2016.
For the fourth quarter of 2017, net income was $877,000, down slightly from $932,000 in the same period of 2016.
With the signing of the Tax Cuts and Jobs act of 2017, the bank made a one-time adjustment to the value of its deferred tax assets (DTAs) causing a fourth-quarter tax expense of $325,000.
“While the benefits of lower tax rates in 2018 and beyond will be substantial for our Company and for most U.S. corporations, balance sheet adjustments for DTAs are generating considerable inconsistencies in fourth quarter earnings for many companies, and we are no different,” said Steve Miller, president and CEO. “Excluding the DTA adjustment, net income increased 30% for the year, 14% from the preceding quarter and 29% for the fourth quarter compared to a year ago. Revenues were solid; deposits were up 12% for the year and 9% on a linked quarter basis, reflecting the strength of our franchise and growth in new customer relationships.”
The bank’s total assets at the end of 2017 were $407.4 million, up 8 percent from the third quarter of last year and also up 12 percent from Dec. 31, 2016.