MONTEREY, Calif., April 24 /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 March 31, 2008, total assets were $89,274,000, or an increase of $19,915,000 (29%) from December 31, 2007. Most of this asset growth was in loans. Loans, net of the allowance for loan losses of $967,000, at March 31, 2008 totaled $60,942,000, an increase of $24,923,000 (69%) from December 31, 2007. In addition, 1st Capital Bank held $10,175,000 in Federal funds sold as of March 31, 2008 to provide additional liquidity to fund future loan growth. At March 31, 2008, deposits were $60,526,000, an increase of $20,387,000 (51%) from December 31, 2007. As anticipated in its business plan, the Bank experienced a net operating loss of $691,000 for the first quarter of 2008. Net losses increased 2% over that incurred for the quarter ended December 31, 2007. Basic losses per share for the first quarter of 2008 were $0.22 compared to $0.21 for the quarter ended December 31, 2007. "It would be hard to ignore all of the reports of the current turmoil in the financial markets resulting from so called sub prime loans," said Fred Rowden, President and CEO of 1st Capital Bank, "Certain institutions are continuing to experience problems with their assets that will need to be resolved. 1st Capital Bank has focused on building strong relationships in the local community and has not participated in this type of lending," said Mr. Rowden: "The growing size and strength of 1st Capital's loan and deposit portfolios signify the value to be found in our local marketplace and economy. In addition, as expected for a newer bank, 1st Capital Bank is maintaining capital ratios well in excess of regulatory minimums," said Mr. Rowden Financial Summary: Net interest income for the first quarter of 2008 was $783,000, an increase of $122,000 (18%) over the quarter ended December 31, 2007. Interest income for the first quarter of 2008 was $1,097,000, an increase of $201,000 (22%) from the fourth quarter of 2007. Average earning assets in the first quarter of 2008 were $76,769,000 compared to $64,740,000 in the fourth quarter of 2007. Interest expense in the first quarter of 2008 was $314,000, an increase of $79,000 (34%) over the quarter ended December 31, 2007. Average interest bearing liabilities in the first quarter of 2008 were $35,892,000 compared to $26,392,000 in the fourth quarter of 2007. The net interest margin for the first quarter of 2008 of 4.1% was consistent with the 4.1% earned in the fourth quarter of 2007. The negative effect on net interest income of the 300 basis point reduction by the Federal Reserve Bank of key interest rates was offset by the growth of, and changes in the composition of, 1st Capital Bank's earning assets and deposit liabilities. In response to significant growth in its loans, the Bank provided $368,000 for loan losses in the first quarter of 2008 and $215,000 in the quarter ended December 31, 2007. The ratio of the allowance for loan losses to total loans outstanding was 1.56% at March 31, 2008 compared to 1.62% at December 31, 2007. At March 31, 2008, there were no nonperforming or restructured loans and the Bank did not have any other real estate owned. Noninterest income increased $7,000 (64%) to $18,000 in the first quarter of 2008 as compared to the quarter ended December 31, 2007 due to the growth in the number of relationships established with the Bank. Noninterest expenses decreased $14,000 (1%) to $1,125,000 in the first quarter of 2008 as compared to the quarter ended December 31, 2007 primarily 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 $119,000 and $123,000 for the first quarter of 2008 and fourth quarter 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 recently expanded location at 1097 South Main Street, Salinas. 1st Capital Bank also operates a loan production office in 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 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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