MONTEREY, Calif., Oct. 22, 2009 (GLOBE NEWSWIRE) -- 1st Capital Bank (OTCBB:FISB) today announced total assets of $156,890,000 as of September 30, 2009, an increase of $25,448,000 (19%) from December 31, 2008 and $42,912,000 (38%) from $113,978,000 as of September 30, 2008. The growth in loans was the greatest contributor to the overall asset growth. Loans, net of the allowance for loan losses, totaled $129,873,000 at September 30, 2009, an increase of $28,009,000 (27%) from December 31, 2008 and $43,598,000 (51%) from $86,275,000 as of September 30, 2008. The growth in loans was funded by an increase in deposits of $25,514,000 (25%) to $128,931,000 at September 30, 2009 from December 31, 2008 and $43,032,000 (50%) from $85,899,000 as of September 30, 2008.
"The Bank has focused on supporting the borrowing and deposit needs of local businesses and individuals throughout Monterey County. It is through this expanding network of quality customers that the Bank has continued to grow in a safe and sound manner, without relying on volatile wholesale funding sources to fund its portfolio of quality local loans. Attracting quality relationships is an important component to how the Bank plans to reach its anticipated profitability goals," said CEO Fred Rowden.
1st Capital Bank earned net income of $75,000 for the quarter ended September 30, 2009, compared to a net loss of $398,000 for the trailing quarter ended June 30, 2009. Diluted earnings per share for the quarter ended September 30, 2009 was $0.02 compared to a loss per share of $0.13 for the trailing quarter ended June 30, 2009. The financial results for the quarter ended September 30, 2009 were supported by an increase in net interest income and a decrease in noninterest expenses when compared to the quarter ended June 30, 2009. The net loss for the nine months ended September 30, 2009 decreased $825,000 (52%) to $756,000 compared to a loss of $1,581,000 for the nine months ended September 30, 2008. The decrease in the loss was due primarily to an increase in net interest income and a decrease in the provision for loan losses, partially offset by an increase in noninterest expenses due to the increased size of the bank, including the opening of the King City branch subsequent to September of last year. As of September 30, 2009, 1st Capital Bank had a Total Risk Weighted Capital ratio of 22.0%, which was over two and one-half times the regulatory required minimum for this ratio.
Financial Summary:
Net interest income before the provision for loan losses for the quarter ended September 30, 2009 was $1,543,000, an increase of $245,000 (19%) over the trailing quarter ended June 30, 2009. Net interest income before the provision for loan losses for the nine months ended September 30, 2009 was $3,852,000, an increase of $1,205,000 (46%) over the nine months ended September 30, 2008.
Interest income for the quarter ended September 30, 2009 was $1,919,000 an increase of $164,000 (9%) from the trailing quarter ended June 30, 2009. Interest income for the nine months ended September 30, 2009 was $5,201,000, an increase of $1,468,000 (39%) from the nine months ended September 30, 2008. Average interest earning assets for the quarter ended September 30, 2009 were $155,969,000, an increase of $5,294,000 (3%) compared to $150,674,000 for the trailing quarter ended June 30, 2009. Average interest earning assets were $146,644,000 and $92,422,000 for the nine months ended September 30, 2009 and 2008, respectively, representing an increase of $56,645,000 (61%).
Interest expense for the quarter ended September 30, 2009 was $376,000, a decrease of $81,000 (18%) over the trailing quarter ended June 30, 2009. Interest expense for the nine months ended September 30, 2009 was $1,350,000, an increase of $263,000 (24%) over the nine months ended September 30, 2008. Average interest bearing liabilities for the quarter ended September 30, 2009 were $99,594,000, a decrease of $537,000 (1%) compared to $100,132,000 for the trailing quarter ended June 30, 2009. Average interest bearing liabilities were $96,922,000 for the nine months ended September 30, 2009, an increase of $48,391,000 (100%) compared to $48,531,000 for the nine months ended September 30, 2008.
The net interest margin for the quarter and nine months ended September 30, 2009 was 3.9% and 3.5%, respectively, compared to 3.5% for the trailing quarter ended June 30, 2009 and 3.8% for the nine months ended September 30, 2008. Increases in the net interest margin from one year ago are primarily the result of reductions in interest rates offered on deposit products. Those rate decreases were consistent with declines in the prime rate as set by the Federal Reserve Board during 2008. In addition, growth in the loan portfolio, partially offset by changes in the composition of 1st Capital Bank's interest earning assets and interest bearing liabilities helped to improve the net interest margin.
1st Capital Bank provided $116,000 for loan losses for the quarter ended September 30, 2009 compared to $175,000 in the trailing quarter ended June 30, 2009. The Bank provided $456,000 for the nine months ended September 30, 2009 compared to $718,000 for the nine months ended September 30, 2008. The ratio of the allowance for loan losses to total loans outstanding was 1.52% as of September 30, 2009 compared to 1.50% at December 31, 2008. "The Bank continues to monitor and evaluate its loan portfolio on an ongoing basis. Most of the provision for loan losses has been necessary to cover the Bank's continued loan growth. At September 30, 2009 and December 31, 2008, there were no non-accrual or restructured loans and the Bank did not have any other real estate owned," said Mr. Rowden.
Noninterest income increased $5,000 (25%) to $25,000 for the quarter ended September 30, 2009 as compared to the trailing quarter ended June 30, 2009, largely due to seasonal fluctuations in service charges.
Noninterest expenses decreased by $164,000 (11%) to $1,377,000 for the quarter ended September 30, 2009 as compared to the trailing quarter ended June 30, 2009. The majority of this decrease was due to the accrual of a $67,000 FDIC special assessment in the second quarter which was not repeated in the third quarter. This 5 basis point assessment against assets, net of equity, was levied against all banks as of June 30, 2009. The remaining decrease in noninterest expenses was due to the timing of various charges, including a decrease in salaries and benefit costs due to increases in offsetting loan origination cost deferrals based on increased loan activity, and to decreased insurance costs.
1st Capital Bank currently operates three branch offices in Monterey County, which are located in the historic Estrada Adobe at 470 Tyler Street, Monterey, at 1097 South Main Street, Salinas and at 432 Broadway Street, King City. 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 Bank's website at www.lstCapitalBank.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.