MONTEREY, Calif., April 22 /PRNewswire-FirstCall/ -- 1st Capital
Bank (OTC Bulletin Board: FISB) today announced total assets of
$150,716,000 as of March 31, 2009, an increase of $19,274,000 (15%)
from December 31, 2008 and $61,442,000 (69%) from $89,274,000 as of
March 31, 2008. The growth in loans was the greatest contributor to
the overall asset growth. Loans, net of the allowance for loan
losses, totaled $112,731,000 at March 31, 2009, an increase of
$10,867,000 (11%) from December 31, 2008 and of $51,789,000 (85%)
from $60,942,000 as of March 31, 2008. The growth in loans was
funded by an increase in deposits of $19,524,000 (19%) to
$122,941,000 at March 31, 2009 from December 31, 2008 and of
$62,415,000 (103%) from $60,526,000 as of March 31, 2008. The
remaining increase in deposits was invested in Fed Funds Sold,
which increased $7,855,000 (100%) to $17,705,000 at March 31, 2009
from $7,850,000 as of December 31, 2008, providing the Bank with
anticipated liquidity to meet funding needs. "We are excited to
report total assets in excess of $150,000,000 as 1st Capital Bank
has continued its strong growth in the first quarter of 2009. We
have achieved this growth in both total loans and deposits while
maintaining a quality loan portfolio," said Fred Rowden, President
and CEO of 1st Capital Bank. "Even as the economy experiences major
changes, the Bank has continued to pursue opportunities to expand
our organic growth through relationship banking in the communities
we serve. We have no dependence on brokered deposits or the
purchasing of loans from other financial institutions. The economic
diversity of Monterey County continues to provide us the
opportunity to lend to qualified and seasoned businesses that the
major banks may be ignoring," said Mr. Rowden. CEO Rowden stated
that "As a young bank, 1st Capital Bank continues to progress
toward its goal of achieving profitability. While the Bank reached
its original projected asset level necessary to achieve
profitability under our business plan, pressures on our net
interest margin since the initiation of the plan, caused by
reductions in the Federal Funds rate of over 500 basis points since
September of 2007, have extended the time for the Bank to achieve
its profitability goal." The total loss recorded for the quarter
ended March 31, 2009 decreased $111,000 (20%) to $433,000, compared
to $544,000 for the trailing quarter ended December 31, 2008. Basic
loss per share for the three months of 2009 was $0.14 compared to
$0.17 for the trailing quarter ended December 31, 2008. The
decrease was due largely to a decrease in the provision for loan
losses and decreases in noninterest expenses. Net loss for the
three months ended March 31, 2009 decreased $258,000 (37%) compared
to $691,000 for the three months ended March 31, 2008, 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 March 31, 2009, 1st Capital Bank had a
Total Risk Weighted Capital ratio of 23.5%, which was over two and
one-half times the regulatory required minimum for this ratio.
Financial Summary: Net interest income after the provision for loan
losses for the quarter ended March 31, 2009 was $846,000, an
increase of $66,000 (8%) over the trailing quarter ended December
31, 2008 and an increase of $431,000 (104%) over the quarter ended
March 31, 2008. Interest income for the quarter ended March 31,
2009 was $1,527,000, an increase of $72,000 (5%) from the trailing
quarter ended December 31, 2008 and an increase of $430,000 (39%)
from the quarter ended March 31, 2008. Average earning assets for
the quarter ended March 31, 2009 were $140,386,000 compared to
$118,094,000 for the trailing quarter ended December 31, 2008 and
$77,565,000 for the quarter ended March 31, 2008, an increase of
$22,292,000 (19%) and $62,821,000 (81%), respectively. Interest
expense for the quarter ended March 31, 2009 was $516,000, an
increase of $85,000 (20%) over the trailing quarter ended December
31, 2008 and an increase of $202,000 (64%) over the quarter ended
March 31, 2008. Average interest bearing liabilities for the
quarter ended March 31, 2009 were $90,944,000, an increase of
$20,872,000 (30%) compared to $70,072,000 for the trailing quarter
ended December 31, 2008, and an increase of $132,077,000 (368%)
compared to $35,892,000 for the quarter ended March 31, 2008. The
net interest margin for the quarter ended March 31, 2009 was 2.9%
compared to 3.5% for the trailing quarter ended December 31, 2008
and 4.0% for the quarter ended March 31, 2008. The negative effect
on net interest income and net interest margin of the 100 basis
point reduction by the Federal Reserve Bank to key interest rates
during the fourth quarter of 2008 and of changes in the composition
of 1st Capital Bank's earning assets and deposit liabilities, was
partially offset by the growth in the loan portfolio. 1st Capital
Bank provided $165,000 for loan losses for the quarter ended March
31, 2009 compared to $244,000 in the trailing quarter ended
December 31, 2008 and $368,000 for the quarter ended March 31,
2008. The ratio of the allowance for loan losses to total loans
outstanding was 1.50% at March 31, 2009 consistent with to the
1.50% at December 31, 2008. The Bank continues to monitor and
evaluate its loan portfolio and assess the sufficiency of its
reserves on an ongoing basis. At March 31, 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
increased $16,000 (89%) to $34,000 for the quarter ended March 31,
2009 as compared to the trailing quarter ended December 31, 2008,
largely due to service charges from the growth in the Bank's
deposit portfolio. Noninterest expenses decreased by $30,000 (2%)
to $1,312,000 for the quarter ended March 31, 2009 as compared to
the trailing quarter ended December 31, 2008. The majority of this
decrease was due to the timing of various charges, including
expenses incurred for software and marketing. Included in
noninterest expenses were stock-based compensation expenses related
to stock options of $121,000 for the quarter ended March 31, 2009
consistent with the $119,000 for the trailing quarter ended
December 31, 2008. Noninterest income and noninterest expenses
increased $16,000 (89%) and $190,000 (17%), respectively, for the
quarter ended March 31, 2009 from the quarter ended March 31, 2008
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, 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 Banks 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" 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. DATASOURCE: 1st Capital Bank CONTACT: Jayme Fields, CFO of 1st
Capital Bank, +1-831-264-4011 Web Site:
http://www.1stcapitalbank.com/
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