MONTEREY, Calif., April 22, 2010 (GLOBE NEWSWIRE) -- 1st Capital Bank (OTCBB:FISB) today announced total assets of $195,511,000 as of March 31, 2010, an increase of $3,213,000 (2%) from December 31, 2009 and $44,795,000 (30%) from $150,716,000 as of March 31, 2009. The growth in loans was the greatest contributor to the overall asset growth. Loans, net of the allowance for loan losses, totaled $139,965,000 at March 31, 2010, an increase of $7,234,000 (5%) from December 31, 2009 and $27,234,000 (24%) from $112,731,000 as of March 31, 2009. The growth in loans was funded by an increase in deposits of $3,050,000 (2%) to $167,282,000 at March 31, 2010 from December 31, 2009 and $44,341,000 (36%) from $122,941,000 as of March 31, 2009. The remaining increase in loans was funded by a decrease in Federal Funds Sold, of $5,298,000 (-15%) to $30,452,000 at March 31, 2010 from $35,750,000 as of December 31, 2009. The available balance of Federal Funds Sold is also anticipated to be used for future loan growth.
"The three months ended March 31, 2010 represent the third consecutive quarter of profitable operations for 1st Capital Bank," said Fred Rowden, President and CEO of 1st Capital Bank. "During the first quarter, the Bank was able to employ its strong liquidity position to fund continued loan growth. Through the efforts of our experienced bankers, the Bank continues to develop strong relationships by providing loans to businesses and individuals in the communities we serve. In addition, we continue to be considered a Well Capitalized Bank with all of our capital levels at March 31, 2010 being in excess of two times the minimum regulatory capital requirements," said Mr. Rowden.
Net income recorded for the quarter ended March 31, 2010 decreased $34,000 (-68%) to $16,000, compared to $50,000 for the trailing quarter ended December 31, 2009. Net income per basic and fully diluted share for the first three months of 2010 was $0.01 compared to $0.02 for the trailing quarter ended December 31, 2009. The decrease in net income for the first quarter of 2010 was due primarily to an increase in the provision for loan losses and noninterest expenses. Net income for the three months ended March 31, 2010 increased $449,000 (104%) compared to a net loss of $433,000 for the three months ended March 31, 2009, 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.
Financial Summary:
Net interest income after the provision for loan losses for the quarter ended March 31, 2010 was $1,554,000, a decrease of $17,000 (-1%) compared to the trailing quarter ended December 31, 2009 and an increase of $708,000 (84%) compared to the quarter ended March 31, 2009.
Interest income for the quarter ended March 31, 2010 was $1,998,000, a decrease of $15,000 (-1%) from the trailing quarter ended December 31, 2009 and an increase of $471,000 (31%) from the quarter ended March 31, 2009. Average earning assets for the quarter ended March 31, 2010 were $183,052,000 compared to $166,652,000 for the trailing quarter ended December 31, 2009 and $140,386,000 for the quarter ended March 31, 2009, an increase of $16,400,000 (10%) and $42,666,000 (30%), respectively.
Interest expense for the quarter ended March 31, 2010 was $351,000, a decrease of $19,000 (5%) over the trailing quarter ended December 31, 2009 and an increase of $165,000 (32%) over the quarter ended March 31, 2009. Average interest bearing liabilities for the quarter ended March 31, 2010 were $118,333,000, an increase of $14,131,000 (14%) compared to $104,202,000 for the trailing quarter ended December 31, 2009, and an increase of $27,389,000 (30%) compared to $90,944,000 for the quarter ended March 31, 2009.
The net interest margin for the quarter ended March 31, 2010 was 3.6% compared to 3.9% for the trailing quarter ended December 31, 2009 and 2.9% for the quarter ended March 31, 2009.
1st Capital Bank provided $93,000 for loan losses for the quarter ended March 31, 2010 compared to $73,000 for the trailing quarter ended December 31, 2009 and $165,000 for the quarter ended March 31, 2009. The ratio of the allowance for loan losses to total loans outstanding was 1.53% at March 31, 2010, a slight decrease from 1.54% at December 31, 2009. The Bank continues to monitor and evaluate its loan portfolio and assess the sufficiency of its reserves on an ongoing basis. At March 31, 2010 and December 31, 2009 there were no non-accrual or restructured loans and the Bank did not have any other real estate owned.
Noninterest income decreased $4,000 (-15%) to $23,000 for the quarter ended March 31, 2010 as compared to the trailing quarter ended December 31, 2009 and $11,000 (-32%) from the quarter ended March 31, 2009, largely due to seasonal fluctuations in the balances of deposit accounts which generate service charges.
Noninterest expenses increased by $12,000 (1%) to $1,560,000 for the quarter ended March 31, 2010 as compared to the trailing quarter ended December 31, 2009. The majority of this increase was due to an increase in salary and benefits expense, partially offset by decreases in other noninterest expenses due to the timing of various charges, including expenses incurred for computer services and occupancy costs. Stock-based compensation costs included in the salaries and benefits component of noninterest expense for the quarter ended March 31, 2010 totaled $122,000 a slight increase from the $109,000 in expense recorded in the trailing quarter ended December 31, 2009. Compared with the quarter ended March 31, 2009, noninterest expenses increased $247,000 (19%) due to the overall growth in the Bank since that quarter one year ago.
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.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.