Community First (CMFT) 8-K Completion of Acquisition or Disposition of Assets

Exhibit 99.1

Exhibit 99.1 Unaudited Pro Forma Condensed Consolidated Financial Information

The following Unaudited Pro Forma Condensed Consolidated Financial Statements of Community First, Inc. (the “Company”) are included herein:

• Unaudited Pro Forma Condensed Consolidated Balance Sheet as of September 30, 2012

• Unaudited Pro Forma Condensed Consolidated Statement of Operations for the nine months ended September 30, 2012

• Unaudited Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2011

• Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements

The Unaudited Pro Forma Condensed Consolidated Financial Statements and related Notes presented reflect the sale of certain assets and liabilities associated with the Company’s bank subsidiary’s Cool Springs branch location (the “Cool Springs Branch”), which was completed on December 7, 2012.

The Unaudited Pro Forma Condensed Consolidated Financial Statements have been prepared by applying pro forma adjustments to the Unaudited Condensed Consolidated Financial Statements included in the Company’s Quarterly Report on Form 10-Q for the period ended September 30, 2012. The Unaudited Pro Forma Condensed Consolidated Balance Sheet reflects the sale of the Cool Springs Branch assuming the sale had occurred as of September 30, 2012. The Unaudited Pro Forma Condensed Consolidated Statement of Operations for the nine months ended September 30, 2012 reflects the sale of the Cool Springs Branch assuming the sale had occurred at the beginning of the year 2012. The Unaudited Pro Forma Condensed Consolidated Statement of Operations for the year ended December 31, 2011 reflects the sale of the Cool Springs Branch assuming the sale occurred at the beginning of the year 2011. The pro forma adjustments, as described in the Notes to the Unaudited Pro Forma Condensed Consolidated Financial Statements, are based on currently available information. While such adjustments are subject to change, management believes such adjustments are reasonable and directly attributable to the assets and liabilities sold in connection with the Cool Springs Branch.

The Unaudited Pro Forma Condensed Consolidated Financial Statements are presented for informational purposes only and are not necessarily indicative of the operating results or financial position that would have occurred had the sale occurred on, or as of, the dates indicated, nor are they necessarily indicative of the Company’s future operating results or financial position.

Additionally, the gain on the branch sale may differ from the amount shown herein due to changes in deposits from September 30, 2012 and the closing date of the transaction and other adjustments based on the final closing of the transaction.

Community First, Inc.

Consolidated Balance Sheet

(Unaudited, Condensed)

	September 30, 2012
(amounts in thousands, except share and per share data)	As Reported (a)			Pro Forma Adjustments (b)			Pro Forma
Assets
Cash and due from banks	$	102,595		$	(24,064	)	$	78,531
Federal funds sold		—			—			—
Cash and cash equivalents		102,595			(24,064	)		78,531
Time deposits in other financial institutions		500			—			500
Securities available for sale, at fair value		68,270			—			68,270
Loans held for sale, net of allowance of $490		24,352			(24,352	)		—
Loans		327,039			—			327,039
Allowance for loan losses		(11,624	)		—			(11,624	)
Net loans		315,415			—			315,415
Restricted equity securities, at cost		1,727			—			1,727
Premises and equipment, net		8,983			—			8,983
Premises and equipment held for sale, net		4,886			(4,886	)		—
Accrued interest receivable		1,296			(93	)		1,203
Core deposit and customer relationship intangibles, net		1,393			—			1,393
Other real estate owned, net		16,880			—			16,880
Bank owned life insurance		9,258			—			9,258
Other assets		4,596			(80	)		4,516
Total Assets	$	560,151		$	(53,475	)	$	506,676
Liabilities and Shareholders’ Equity
Deposits:
Noninterest-bearing	$	47,868		$	—		$	47,868
Noninterest-bearing held for sale		1,813			(1,813	)		—
Interest-bearing		394,647			—			394,647
Interest-bearing held for sale		54,075			(54,075	)		—
Total Deposits		498,403			(55,888	)		442,515
Federal Home Loan Bank advances		13,000			—			13,000
Subordinated debentures		23,000			—			23,000
Repurchase agreement		7,000			—			7,000
Accrued interest payable		3,594			(149	)		3,445
Other liabilities		6,512			(38	)		6,474
Total Liabilities		551,509			(56,075	)		495,434

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Community First, Inc.

Consolidated Balance Sheet

(Unaudited, Condensed)

(Continued)

	September 30, 2012
(amounts in thousands, except share and per share data)	As Reported (a)			Pro Forma Adjustments (b)			Pro Forma
Shareholders’ Equity
Senior Preferred shares, no par value; 5% cumulative. Authorized 2,500,000 shares; issued 17,806 with liquidation value of $19,138		17,806			—			17,806
Warrant Preferred shares, no par value; 9% cumulative. Issued 890 with liquidation value of $890		890			—			890
Net discount on preferred shares		(279	)		—			(279	)
Total preferred shares		18,417			—			18,417
Common stock, no par value. Authorized 10,000,000 shares; issued 3,274,205 shares		28,588			—			28,588
Accumulated deficit		(38,345	)		2,600			(35,745	)
Accumulated other comprehensive (loss), net		(18	)		—			(18	)
Total Shareholders’ Equity		8,642			2,600			11,242
Total Liabilities and Shareholders’ Equity	$	560,151		$	(53,475	)	$	506,676

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Community First, Inc.

Consolidated Statement of Operations

(Unaudited, Condensed)

	For the Nine Months Ended
(amounts in thousands, except share and per share data)	September 30, 2012
	As Reported (a)			Pro Forma Adjustments (c)			Pro Forma
Interest income:
Loans, including fees	$	16,336		$	(1,034	)	$	15,302
Taxable securities		888			—			888
Tax-exempt securities		266			—			266
Federal funds sold and other		220			(45	)		175
Total interest income		17,710			(1,079	)		16,631
Interest expense:
Deposits		3,873			(490	)		3,383
FHLB advances and federal funds purchased		261			—			261
Subordinated debentures and other		1,300			—			1,300
Total interest expense		5,434			(490	)		4,944
Net interest income		12,276			(589	)		11,687
Provision for loan losses		2,700			—			2,700
Net interest income after provision for loan losses		9,576			(589	)		8,987
Noninterest income:
Service charges on deposit accounts		1,256			(13	)		1,243
Gain on sale of loans		137			—			137
Gain on sale of securities available for sale		1,215			—			1,215
Gain on sale of branches		1,466			2,600			4,066
Other		693			(115	)		578
Total noninterest income		4,767			2,472			7,239
Noninterest expense:
Salaries and employee benefits		5,479			(245	)		5,234
Regulatory and compliance		1,070			—			1,070
Occupancy		964			(110	)		854
Furniture and equipment		403			(9	)		394
Data processing fees		890			(30	)		860
Advertising and public relations		158			(1	)		157
Operational expense		297			(14	)		283
Other real estate owned expense		1,707			—			1,707
Other		2,650			(50	)		2,600
Total noninterest expenses		13,618			(459	)		13,159
Income before income tax expense		725			2,342			3,067
Income tax expense (benefit)		—			—			—
Net income		725			2,342			3,067
Preferred stock dividends declared		(728	)		—			(728	)
Accretion of preferred stock discount		(140	)		—			(140	)
Net income (loss) allocated to common shareholders	$	(143	)	$	2,342		$	2,199
Loss per share allocated to common shareholders
Basic	$	(0.04	)	$	0.72		$	0.68
Diluted		(0.04	)		0.72			0.68
Weighted average common shares outstanding
Basic		3,274,049			—			3,274,049
Diluted		3,274,049			—			3,274,049

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Community First, Inc.

Consolidated Statement of Operations

(Unaudited)

	For the Year Ended December 31, 2011
(amounts in thousands, except share and per share data)	As Reported (d)			Pro Forma Adjustments (e)			Pro Forma
Interest income:
Loans, including fees	$	26,308		$	(1,378	)	$	24,930
Taxable securities		1,598			—			1,598
Tax-exempt securities		459			—			459
Federal funds sold and other		321			(60	)		261
Total interest income		28,686			(1,438	)		27,248
Interest expense:
Deposits		7,082			(958	)		6,124
FHLB advances and federal funds purchased		375			—			375
Subordinated debentures and other		1,631			—			1,631
Total interest expense		9,088			(958	)		8,130
Net interest income		19,598			(480	)		19,118
Provision for loan losses		13,029			—			13,029
Net interest income after provision for loan losses		6,569			(480	)		6,089
Noninterest income:
Service charges on deposit accounts		1,809			(34	)		1,775
Gain on sale of loans		343			—			343
Gain on sale of branch		—			2,600			2,600
Other		1,201			(132	)		1,069
Total noninterest income		3,353			2,434			5,787
Noninterest expense:
Salaries and employee benefits		8,353			(761	)		7,592
Regulatory and compliance		1,390			—			1,390
Occupancy		1,543			(287	)		1,256
Furniture and equipment		737			(86	)		651
Data processing fees		931			(56	)		875
Advertising and public relations		357			(13	)		344
Operational expense		706			(27	)		679
Other real estate owned expense		3,016			—			3,016
Other		9,496			(144	)		9,352
Total noninterest expenses		26,529			(1,374	)		25,155
Income (loss) before income tax expense		(16,607	)		3,328			(13,279	)
Income tax expense (benefit)		(1,555	)		—			(1,555	)
Net income (loss)		(15,052	)		3,328			(11,724	)
Preferred stock dividends declared		(970	)		—			(970	)
Accretion of preferred stock discount		(175	)		—			(175	)
Net income (loss) allocated to common shareholders	$	(16,197	)	$	3,328		$	(12,869	)
Loss per share allocated to common shareholders
Basic	$	(4.95	)	$	1.02		$	(3.93	)
Diluted		(4.95	)		1.02			(3.93	)
Weighted average common shares outstanding
Basic		3,273,301			—			3,273,301
Diluted		3,273,301			—			3,273,301

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Community First, Inc.

Notes to the Unaudited Pro Forma Consolidated Financial Statements

(a) Amounts represent historical financial information from the Company’s Quarterly Report on Form 10-Q as of and for the period ended September 30, 2012.

(b) We have made adjustments to the Unaudited Pro Forma Condensed Balance Sheet as of September 30, 2012 to reflect the sale of the assets and liabilities that were included in the Cool Springs Branch sale as if the sale occurred on September 30, 2012. The pro forma adjustments per the sale are as follows:

Description	Balance Sheet Location	Amount
Cash paid	Cash and due from banks	$	24,064
Loans sold	Loans held for sale	$	24,352
Premises and equipment sold	Premises and equipment held for sale	$	4,886
Accrued interest receivable sold	Accrued interest receivable	$	93
Deferred rent receivable	Other assets	$	18
Mortgage servicing asset	Other assets	$	62
Noninterest-bearing deposits sold	Noninterest-bearing deposits held for sale	$	1,813
Interest-bearing deposits sold	Interest-bearing deposits held for sale	$	54,075
Accrued interest payable sold	Accrued interest payable	$	149
Accrued property taxes	Other liabilities	$	38
Gain on sale of branch	Retained earnings (accumulated deficit)	$	2,600

(c) Represents nine months of income and expenses related to the Company’s assets and liabilities sold with the Cool Springs Branch.

(d) Amounts represent historical financial information from the Company’s Annual Report on Form 10-K for the period ended December 31, 2011.

(e) Represents twelve months of income and expenses related to the Company’s assets and liabilities sold with the Cool Springs Branch.

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