MONTEREY, Calif., July 23, 2009 (GLOBE NEWSWIRE) -- 1st Capital Bank (OTCBB:FISB) today announced total assets of $159,693,000 as of June 30, 2009, an increase of $28,251,000 (21%) from December 31, 2008 and $52,462,000 (49%) from $107,231,000 as of June 30, 2008. The growth in loans was the greatest contributor to the overall asset growth. Loans, net of the allowance for loan losses, totaled $124,585,000 at June 30, 2009, an increase of $22,721,000 (22%) from December 31, 2008 and $43,174,000 (53%) from $81,411,000 as of June 30, 2008. The growth in loans was funded by an increase in deposits of $28,630,000 (28%) to $132,047,000 at June 30, 2009 from December 31, 2008 and $52,948,000 (67%) from $79,099,000 as of June 30, 2008.
"The Bank has focused on building a diverse, well-secured portfolio of loans funded by local deposits," says CEO Fred Rowden. He continued, "We are excited to be able to continue to support the borrowing and deposit needs of local businesses and individuals throughout the county. It is through this expanding network of quality customers that the Bank has continued to grow in a safe and sound manner which is an important component to how the Bank plans to reach its anticipated profitability goals."
The net loss recorded for the quarter ended June 30, 2009 decreased $35,000 (8%) to $398,000, compared to $433,000 for the trailing quarter ended March 31, 2009. Basic loss per share for the quarter ended June 30, 2009 was $0.13 compared to $0.14 for the trailing quarter ended March 31, 2009. An increase in net interest income was partially offset by increased noninterest expenses which included a $67,000 special assessment payable by all banks insured by the FDIC, accrued during the second quarter. The net loss for the six months ended June 30, 2009 decreased $530,000 (39%) to $831,000 compared to a loss of $1,361,000 for the six months ended June 30, 2008. The decrease in the loss was due largely to an increase in net interest income and a decrease in the provision for loan losses, partially offset by an increase in noninterest expenses. As of June 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 June 30, 2009 was $1,298,000, an increase of $287,000 (28%) over the trailing quarter ended March 31, 2009. Net interest income before the provision for loan losses for the six months ended June 30, 2009 was $2,309,000, an increase of $652,000 (39%) over the six months ended June 30, 2008.
Interest income for the quarter ended June 30, 2009 was $1,755,000, an increase of $228,000 (15%) from the trailing quarter ended March 31, 2009. Interest income for the six months ended June 30, 2009 was $3,282,000, an increase of $960,000 (41%) from the six months ended June 30, 2008. Average earning assets for the quarter ended June 30, 2009 were $147,309,000, an increase of $6,923,000 (5%) compared to $140,386,000 for the trailing quarter ended March 31, 2009. Average interest earning assets were $145,558,000 and $84,751,000 for the six months ended June 30, 2009 and 2008, respectively, representing an increase of $60,807,000 (72%).
Interest expense for the quarter ended June 30, 2009 was $457,000, a decrease of $59,000 (11%) over the trailing quarter ended March 31, 2009. Interest expense for the six months ended June 30, 2009 was $973,000, an increase of $308,000 (46%) over the six months ended June 30, 2008. Average interest bearing liabilities for the quarter ended June 30, 2009 were $100,132,000, an increase of $9,188,000 (10%) compared to $90,944,000 for the trailing quarter ended March 31, 2009. Average interest bearing liabilities were $95,564,000 for the six months ended June 30, 2009, an increase of $53,753,000 (129%) compared to $41,811,000 for the six months ended June 30, 2008.
The net interest margin for the quarter and six months ended June 30, 2009 was 3.5% and 3.2%, respectively, compared to 2.9% for the trailing quarter ended March 31, 2009 and 3.9% for the six months ended June 30, 2008. Decreases in the net interest margin from one year ago are largely the result of reductions to key interest rates by the Federal Reserve Bank during 2008 and changes in the composition of 1st Capital Bank's earning assets and deposit liabilities, partially offset by the growth in the loan portfolio.
1st Capital Bank provided $175,000 for loan losses for the quarter ended June 30, 2009 compared to $165,000 in the trailing quarter ended March 31, 2009. It provided $340,000 for the six months ended June 30, 2009 compared to $648,000 for the six months ended June 30, 2008. The ratio of the allowance for loan losses to total loans outstanding remained consistent at 1.50% as of June 30, 2009 and December 31, 2008. The Bank continues to monitor and evaluate its loan portfolio on an ongoing basis. Mr. Rowden commented, "the Bank currently holds no impaired loans in its portfolio and we believe that the allowance for loan losses is adequate to cover the probable losses in the portfolio." He continued, "Most of the provision for loan losses has been necessary to cover the Bank's continued loan growth." At June 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.
Noninterest income decreased $14,000 (41%) to $20,000 for the quarter ended June 30, 2009 as compared to the trailing quarter ended March 31, 2009, largely due to seasonal fluctuations in service charges.
Noninterest expenses increased by $230,000 (18%) to $1,542,000 for the quarter ended June 30, 2009 as compared to the trailing quarter ended March 31, 2009. As discussed above, the majority of this increase was due to the accrual of a FDIC special assessment. This 5 basis point assessment against assets, net of equity, was levied against all banks as of June 30, 2009. The remaining increase in non-interest expenses was due to the timing of various charges, including expenses incurred for technology and marketing.
1st Capital Bank currently operates three branch offices in Monterey County, which are located in the historic Estrada Adobe at 470 Tyler Street, Monterey, in a recently expanded location at 1097 South Main Street, Salinas and in the Bank's newest location in 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 Bank's 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.