updated 2/10/2011 9:16:53 AM ET 2011-02-10T14:16:53

MONTEREY, Calif., Feb. 10, 2011 (GLOBE NEWSWIRE) -- 1st Capital Bank (OTCBB:FISB) today announced that it ended the year with $1,006,000 in net income and total assets of $226,834,000. Net income for the year ended December 31, 2010 increased $1,712,000 or 242% over a net loss of ($706,000) for the previous year. Diluted earnings per share for 2010 increased 245% to a positive $0.32 from a loss of ($0.22) in 2009. Net income for the year ended December 31, 2010, excluding the allowance for loan losses and provision for income taxes, was $1,796,000, an increase of $1,972,000 or 1120% over ($176,000) for the prior year. Total assets as of December 31, 2010 increased $34,536,000 (18%) from December 31, 2009 and $94,304,000 from December 31, 2008. As of December 31, 2010, 1st Capital Bank was well capitalized, with a Total Risk Based Capital ratio of 17.3%, which was over twice the regulatory required minimum.

1st Capital Bank is proud to report the following statistical data regarding its results of operations for the year ended December 31, 2010. This data was provided to the Bank by the investment banking firm of Howe Barnes Hoefer & Arnett, derived from data provided by SNL Financial, and is believed by the Bank to be reliable: 

  • Of the 226 banks headquartered in California, 1st Capital Bank is one of only six banks with no non-performing assets at December 31, 2010, which were also profitable for the year ending December 31, 2010.
  • Of those 226 California based banks, 1st Capital Bank is one of only 10 banks which had a highly desirable concentration of more than 35% of its loan portfolio in Commercial and Industrial loans and more than 35% of its deposit base consisting of non-interest bearing accounts.
  • Out of these 10 institutions, 1st Capital Bank is the only one with no non-performing assets at December 31, 2010.

On a national level, 1st Capital Bank is one of only five banks out of 6,565 commercial banks in the United States to meet the same high standards of profitability, loan and deposit concentrations and no non-performing assets at December 31, 2010.

 "1st Capital Bank has now been profitable for a year and a half and it has done so while growing in a safe and secure manner," said President and Chief Executive Officer Fred Rowden. "Serving the needs of local businesses and community members, 1st Capital Bank is growing its reputation for quality service and performance. There is a buzz in the air, and customers and shareholders are beginning to get excited…with good reason," added Mr. Rowden.

Also during the year ended December 31, 2010, 1st Capital Bank was one of a limited number of banks in California to receive the Bauer Financial, Inc. five-star "superior" rating. Per Bauer Financial, "Five-stars is our highest rating and indicates that this institution is one of the strongest in the United States."

Financial Summary:

Total assets were $226,834,000 as of December 31, 2010. Growth in loans was the greatest contributor to the overall asset growth. Loans, net of the allowance for loan losses of $2,723,000, totaled $174,264,000 at December 31, 2010, an increase of $41,533,000 (31%) from December 31, 2009. The growth in loans was primarily funded by an increase in deposits of $33,045,000 (20%) to $197,277,000 at December 31, 2010. "Balance sheet liquidity and deposit growth will facilitate future loan growth as 1st Capital Bank continues to lend to businesses and individuals without the use of 'bailout money,'" said Mr. Rowden.

Net interest income after the provision for loan losses for the year ended December 31, 2010 was $7,285,000, an increase of $2,318,000 (47%) over the year ended December 31, 2009. Interest income for the year ended December 31, 2010 was $9,178,000, an increase of $1,964,000 (27%) over the year ended December 31, 2009. Average earning assets for the year ended December 31, 2010 were $193,243,000, an increase of $40,282,000 (26%) compared to $152,961,000 for the year ended December 31, 2009.   While the yield on the loan portfolio increased slightly, the majority of the increase in interest income was due to growth in the loan portfolio.

Interest expense for the year ended December 31, 2010 was $1,251,000, a decrease of $467,000 (27%) from the year ended December 31, 2009. Average interest bearing liabilities for the year ended December 31, 2010 were $123,676,000, an increase of $24,919,000 (25%) compared to $98,757,000 for the year ended December 31, 2009.   While average balances of interest-bearing deposit liabilities increased, interest expense decreased in 2010 from 2009 due to the repricing of the interest-bearing deposits throughout the year, reflecting the lower interest rate environment. The higher volume of interest-bearing liabilities increased interest expense $395,000 while the lower rates decreased the expense an offsetting $862,000.

These changes in the composition and pricing of 1st Capital Bank's earning assets and deposit liabilities resulted in a net interest margin for the year ended December 31, 2010 of 4.1% compared to 3.6% for the year ended December 31, 2009. 

1st Capital Bank recorded a provision for loan losses of $642,000 during the year ended December 31, 2010 compared to $529,000 in the year ended December 31, 2009. The ratio of the allowance for loan losses to total loans outstanding was 1.54% at December 31, 2010 and 2009. At December 31, 2010 and 2009, there were no non-performing, restructured or impaired loans and the Bank did not have any real estate acquired through foreclosure.

Noninterest income increased $10,000 (9%) to $116,000 for the year ended December 31, 2010 compared to the year ended December 31, 2009, largely due to service charges from the growth in the Bank's deposit portfolio.

Noninterest expenses increased by $469,000 (8%) to $6,247,000 for the year ended December 31, 2010 compared to the year ended December 31, 2009.   The majority of this increase was due to the overall growth of the Bank including the addition of several new employees during the year. 

1st Capital Bank currently operates three branch offices in Monterey County, which are located in the historic Estrada Adobe at 470 Tyler Street, Monterey; 1097 South Main Street, Salinas; and downtown King City at 432 Broadway Street. The experienced bankers at 1st Capital Bank provide traditional deposit, lending, mortgage and commercial products and services to business and retail customers throughout the California Central Coast and Salinas Valley areas of Monterey County.

Information regarding the Bank may be obtained from the Banks website at www.1stCapitalBank.com . Copies of the Bank's press releases are available on the website.

Forward Looking Statements

In addition to the historical information contained herein, this press release may contain certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. The reader of this press release should understand that all such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that might cause such a difference include, among other matters, changes in interest rates; economic conditions including inflation and real estate values in California and the Bank's market areas; governmental regulation and legislation; credit quality; competition affecting the Bank's businesses generally; the risk of natural disasters and future catastrophic events including terrorist related incidents and other factors beyond the Bank's control; and factors discussed in the Bank's periodic reports under the Securities Exchange Act of 1934, as amended, on Forms 10-K, 10-Q and 8-K filed with the FDIC. The Bank does not undertake any obligation to publicly update or revise any of these forward-looking statements, whether to reflect new information, future events or otherwise, except as required by law.

 

1ST CAPITAL BANK
CONSOLIDATED CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except share and per share data)
 
  3 Months Ended 12 Months Ended
  December 31, December 31,
Statement of Income Data 2010 2009 2010 2009
Interest income        
Loans (including fees)  $  2,460  $  1,882  $  8,582  $  6,515
Investment securities  112  110  458  524
Other  17  21  138  175
Total interest income  2,589  2,013  9,178  7,214
Interest expense        
Interest on deposits  251  369  1,251  1,718
Net interest income  2,338  1,644  7,927  5,496
Provision for loan losses  176  73  642  529
Net interest income after        
provision for loan losses  2,162  1,571  7,285  4,967
         
Noninterest income        
Service charges on deposits  22  16  66  53
Other  9   11  50  53
Total noninterest income  31  27  116  106
         
Noninterest expenses        
Salaries and benefits  834  766  3,290  3,019
Occupancy  139  159  574  532
Furniture and equipment  90  75  312  280
Other  542  548  2,071  1,947
Total noninterest expenses  1,605  1,548  6,247  5,778
Income before provision for income taxes  588  50  1,154  (705)
Provision for income taxes  146  0  148  1
Net income  $ 442  $ 50  $ 1,006  $ (706)
         
Common Share Data        
Earnings per share        
Basic  $ 0.14  $ 0.02  $ 0.32  $ (0.22)
Diluted  $ 0.14  $ 0.02  $ 0.32  $ (0.22)
         
Weighted average shares outstanding  3,157,699  3,157,699  3,157,699  3,157,699
Weighted average shares outstanding --        
diluted  3,157,767  3,157,699  3,157,716  3,157,699
Book value per share      $   9.02  $   8.64
Tangible book value      $   9.02  $    8.64
Shares outstanding      3,157,699  3,157,699
 
1ST CAPITAL BANK
CONSOLIDATED CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)
     
  December December
Balance Sheet Data 2010 2009
Assets    
Cash and due from banks  $ 6,672  $ 3,138
Federal funds sold and overnight deposits  25,530  35,750
Available-for-sale securities, at fair value, and interest bearing deposits  17,591  17,842
Loans:    
Commercial  74,311  62,466
Real estate-construction   2,678  --
Real estate-other  97,581  69,885
Consumer  1,991  1,979
Deferred loan costs, net   426  482
Total loans  176,987  134,812
Allowance for loan losses  (2,723)  (2,081)
Net loans  174,264   132,731
Premises and equipment, net  745  851
Accrued interest receivable and other assets  2,032  1,986
Total assets  $ 226,834  $ 192,298
     
Liabilities and Shareholders' Equity    
Deposits:    
Demand, noninterest bearing  $ 71,654  $ 55,271
Demand, interest bearing   46,410  42,236
Savings  26,807  23,243
Time  52,406  43,482
Total deposits  197,277  164,232
Accrued interest payable and other liabilities    1,083  791
Total liabilities  198,360  165,023
Shareholders' equity  28,474  27,275
Total liabilities and shareholders' equity  $ 226,834  $ 192,298
     
Asset Quality    
Loans past due 90 days or more and accruing interest $ -- $ --
Nonaccrual loans  --  --
Restructured loans  --  --
Other real estate owned  --   --
Total non-performing assets  $ --  $ --
     
Allowance for loan losses to total loans 1.54% 1.54%
Allowance for loan losses to NPL's n/a n/a
Allowance for loan losses to NPA's n/a n/a
     
Regulatory Capital and Ratios    
Tier 1 capital  $ 28,210  $ 27,059
Total risk based capital  $ 30,411  $ 28,751
Tier 1 capital ratio 16.1% 20.1%
Total risk based capital ratio 17.3% 21.3%
Tier 1 leverage ratio 13.9% 15.4%
 
 

1ST CAPITAL BANK
CONSOLIDATED CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)
 
  3 Months Ended 12 Months Ended
  December 31, December 31,
Selected Financial Ratios 2010 2009 2010 2009
 Return on average total assets 0.86% 0.12% 0.50% (0.45%)
 Return on average shareholders' equity 6.16% 0.73% 3.61% (2.59%)
 Net interest margin 4.71% 3.91% 4.10% 3.59%
 Efficiency ratio 67.75% 92.62% 77.67% 103.14%
         
Selected Average Balances        
 Loans  $ 172,818  $ 136,458  $ 153,235  $ 121,997
 Taxable investments   15,367  10,511  13,446  11,375
 Federal funds sold and CD's  8,751  19,682  26,562  19,589
 Total earning assets  $  196,936  $ 166,652  $ 193,243  $ 152,961
 Total assets  $ 203,358  $ 169,447  $ 199,507  $ 157,373
         
 Demand deposits - interest bearing  $  46,647  $ 38,114  $ 51,693  $ 35,677
 Savings  28,079  23,670  27,050  22,186
 Time deposits  48,294  42,419   44,933  40,894
 Total interest bearing liabilities  $ 123,020  $ 104,202  $ 123,676 $ 98,757
 Demand deposits - noninterest bearing  $ 50,442  $ 36,878  $ 46,740  $ 30,850
 Shareholders' equity  $ 28,469  $ 27,314  $ 27,887  $ 27,228
         
CONTACT: Jayme Fields, CFO
         (831) 264-4011

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