MONTEREY, Calif., Jan. 22 /PRNewswire-FirstCall/ -- 1st Capital
Bank (OTC Bulletin Board: FISB) today announced total assets of
$131,442,000 as of December 31, 2008, an increase of $62,083,000
(90%) from December 31, 2007. The growth in loans was the greatest
contributor to the overall asset growth. Loans, net of the
allowance for loan losses of $1,552,000, totaled $101,864,000 at
December 31, 2008, an increase of $65,845,000 (183%) from December
31, 2007. The growth in loans was primarily funded by an increase
in deposits of $63,277,000 (158%) to $103,416,000 at December 31,
2008 and a reduction in Fed Funds Sold of $8,805,000 (53%) from
December 31, 2007. "1st Capital Bank has surpassed our challenging
business plan even as the economy has experienced major changes,"
said Fred Rowden, President and CEO of 1st Capital Bank. "The Bank
has been able to do this by adhering to our basic tenets: good
bankers building strong customer relationships, originating quality
loans and deposits relationships through customer service. By doing
so, we have been able to grow our loan portfolio in excess of our
business plan with quality loans funded by core deposits. At
December 31, 2008 the Bank had no non-performing or restructured
loans and no wholesale deposits. Even in these turbulent times, 1st
Capital Bank has continued to serve the community by looking for
opportunities to make good loans and build deposit relationships,"
said Mr. Rowden. At December 31, 2008, 1st Capital Bank held
$7,850,000 in federal funds sold and had federal funds borrowing
lines and other borrowing facilities available as a means to
provide additional liquidity and funding for future loan growth.
The Bank's net operating loss was less than anticipated in the
business plan. The total loss recorded for the year ended December
31, 2008 was $2,124,000, of which $544,000 was recorded in the
fourth quarter of 2008. Net losses increased $88,000 (4%) compared
to $2,036,000 for the eight and one-half months ended December 31,
2007. Basic loss per share for the twelve months of 2008 was $0.67
compared to $0.64 for the eight and one-half months ended December
31, 2007. Net loss for the three months ended December 31, 2008
increased $324,000 (147%) to $544,000 from $220,000 for the three
months ended September 30, 2008, due largely to an increased
provision for loan losses as a result of our loan growth. As of
December 31, 2008, 1st Capital Bank had a Total Risk Weighted
Capital ratio of 26.1%, which was over two times the regulatory
required minimum for this ratio. Financial Summary: Net interest
income after the provision for loan losses for the year ended
December 31, 2008 was $2,709,000, an increase of $1,613,000 (147%)
over the eight and one-half months ended December 31, 2007.
Interest income for the year ended December 31, 2008 was
$5,188,000, an increase of $3,110,000 (150%) from the eight and
one-half months ended December 31, 2007. Average earning assets for
the year ended December 31, 2008 were $98,876,000 compared to
$50,808,000 for the eight and one-half months ended December 31,
2007. Interest expense for the year ended December 31, 2008 was
$1,517,000, an increase of $1,129,000 (291%) over the eight and
one-half months ended December 31, 2007. Average interest bearing
liabilities for the year ended December 31, 2008 were $53,945,000,
an increase of $37,564,000 (229%) compared to $16,381,000 for the
eight and one-half months ended December 31, 2007. The net interest
margin for the year ended December 31, 2008 was 3.7% compared to
4.7% for the eight and one-half months ended December 31, 2007. The
negative effect on net interest income and net interest margin of
the 500 basis point reduction by the Federal Reserve Bank to key
interest rates since April of 2007 was offset by the growth and
changes in the composition of 1st Capital Bank's earning assets and
deposit liabilities, with most of that offset coming from the
growth in the loan portfolio. 1st Capital Bank provided $962,000
for loan losses for the year ended December 31, 2008 compared to
$594,000 in the eight and one-half months ended December 31, 2007.
The ratio of the allowance for loan losses to total loans
outstanding was 1.51% at December 31, 2008 compared to 1.63% at
December 31, 2007. At December 31, 2008, there were no
nonperforming or restructured loans and the Bank did not have any
other real estate owned. Noninterest income increased $49,000
(245%) to $69,000 for the year ended December 31, 2008 as compared
to the eight and one-half months ended December 31, 2007, largely
due to service charges from the growth in the Bank's deposit
portfolio. Noninterest expenses increased by $1,751,000 (564%) to
$4,902,000 for the year ended December 31, 2008 as compared to the
eight and one-half months ended December 31, 2007. The majority of
this increase was due to the Bank's partial year of operations in
2007 compared to a full year of operations in 2008, as well as the
overall growth of the Bank. Included in noninterest expenses were
stock-based compensation expenses related to stock options of
$477,000 for the year ended December 31, 2008 compared to $314,000
for the eight and one-half months ended December 31, 2007. 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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