MONTEREY, Calif., Feb. 1 /PRNewswire-FirstCall/ -- 1st Capital Bank (OTC:FISB) (BULLETIN BOARD: FISB) today announced continued growth in its balance sheet since its opening on April 16, 2007. At December 31, 2007, total assets were $69,391,000, or an increase of $10,782,000 (18%) from September 30, 2007. Most of this asset growth was in loans. Loans at December 31, 2007, totaled $36,613,000, an increase of $13,250,000 (57%) from September 30, 2007. In addition, 1st Capital Bank had $16,655,000 in Federal funds sold as of December 31, 2007 to provide additional liquidity to fund future loan growth. At December 31, 2007, deposits were $40,139,000, an increase of $11,067,000 (38%) from September 30, 2007. As anticipated, the Bank experienced a net operating loss of $659,000 for the fourth quarter of 2007. Net losses decreased 11% over the $744,000 incurred for the quarter ended September 30, 2007. Basic losses per share for the fourth quarter of 2007 were $0.21 compared to $0.24 for the quarter ended September 30, 2007. Net operating losses for the eight and one-half month period ended December 31, 2007 were $2,015,000. Basic losses per share for that period were $0.64. "We are pleased to announce that 1st Capital Bank has continued its development during its first eight and one-half months of operations in accordance with our original business plan. Financial results as of December 31, 2007 reflect the progress the Bank has achieved," stated Fred Rowden, President and CEO. "While there is turmoil in the national finance markets due to the current real estate market and the illiquid credit market, we believe that there are opportunities for the Bank to grow. We are pleased to report that 1st Capital Bank is not involved in any sub-prime lending," said Mr. Rowden. Financial Summary: Net interest income for the fourth quarter of 2007 was $661,000, an increase of $28,000 (4%) over the quarter ended September 30, 2007. Interest income for the fourth quarter of 2007 was $896,000, an increase of $140,000 (19%) from the third quarter of 2007. Average earning assets in the fourth quarter of 2007 were $59,384,000 compared to $50,253,000 in the third quarter of 2007. Interest expense in the fourth quarter of 2007 totaled $235,000, which was an increase of $112,000 (91%) over the quarter ended September 30, 2007. Average interest bearing liabilities in the fourth quarter were $26,393,000 compared to $15,160,000 in the third quarter of 2007. The net interest margin for the fourth quarter of 2007 was 4.4% compared to 5.0% in the third quarter of 2007. The Bank provided $215,000 for loan losses in the fourth quarter of 2007 as compared to $252,000 in the quarter ended September 30, 2007. The ratio of the allowance for loan losses to total loans outstanding was 1.62% at December 31, 2007. The Bank also provided $18,000 of reserves for unfunded commitments in the fourth quarter of 2007 as compared to $14,000 in the quarter ended September 30, 2007. The ratio of the allowance for loan losses and reserves for unfunded commitments to total loans outstanding was 1.75% at December 31, 2007. At December 31, 2007, there were no nonperforming or restructured loans and the Bank did not have any other real estate owned. Noninterest income increased $3,000 (38%) in the fourth quarter of 2007 as compared to the quarter ended September 30, 2007 due to the growth in the number of relationships established with the Bank. Noninterest expenses decreased $13,000 (1%) to $1,117,000 in the fourth quarter of 2007 as compared to the quarter ended September 30, 2007 due to fluctuations in salary and benefit costs. Included in noninterest expenses were stock-based compensation expenses related to the grant of stock options of $123,000 and $118,000 for the fourth and third quarters of 2007, respectively. 1st Capital Bank operates two branch offices in Monterey County, which are located in the historic Estrada Adobe at 470 Tyler Street, Monterey, and in a soon to be expanded location at 1097 South Main Street, Salinas. 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 http://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. 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, and 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. 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. DATASOURCE: 1st Capital Bank CONTACT: Jayme Fields, Chief Financial Officer of 1st Capital Bank, +1-831-264-4011 Web site: http://www.1stcapitalbank.com/

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