1st Capital Bank (OTCQB: FISB) (the "Bank") today announced
second quarter and year to date financial results through June 30,
2013. The Bank achieved record levels of loans, assets, deposits,
and shareholders' equity at June 30, 2013.
Net income during the second quarter of 2013 was $359 thousand,
equivalent to $0.11 per diluted common share. This compares
favorably to both: (i) net income of $209 thousand, equivalent to
$0.06 per diluted common share, for the second quarter of 2012; and
(ii) net income of $263 thousand, equivalent to $0.08 per diluted
common share, for the first quarter of 2013 (the immediately
preceding quarter).
Net income for the first six months of 2013 was $622 thousand,
equivalent to $0.19 per diluted common share, compared to net
income of $519 thousand, equivalent to $0.16 per diluted common
share, for the first six months of 2012.
The improved earnings during the 2013 periods primarily arose
from increased net interest income, which in turn was produced by
higher average balances of interest earning assets. The Bank's
total assets expanded by 21.7% during the twelve months ended June
30, 2013; and average interest earning assets were 19.1% higher
during the second quarter of 2013 compared to the second quarter of
2012.
Commenting on the second quarter of 2013 financial performance,
Mark Andino, the Bank's President and Chief Executive Officer,
stated: "We are very pleased to again announce record levels of
loans, assets, deposits, and shareholders' equity; complemented by
improved earnings. The Bank continues to attract a broad range of
local businesses and professionals who are seeking the combination
of client service, technology, customization, timeliness, and
experienced bankers offered by 1st Capital Bank." Mr. Andino then
continued: "The increase in earnings, despite the challenging
interest rate environment prevalent during the first half of 2013,
was supported by a series of initiatives implemented over the past
six months, including new commercial loan products and pricing, a
revised fee and service charge schedule, new delivery features and
channels, enhanced liquidity management, and targeted reductions in
certain operating costs."
Kurt Gollnick, the Bank's Chairman of the Board, added: "The
initial cost savings from the Bank's voluntary deregistration of
its common shares under the Securities Exchange Act of 1934 were
realized during the second quarter of 2013. The Board of Directors
continued its focus on enhancing shareholder value during recent
months, resulting in new officer hires receiving a greater
percentage of their aggregate compensation in the form of
multiple-year, time-based restricted share awards. This practice
should even more closely align officer interests with the
generation of long term shareholder value." Mr. Gollnick then
commented: "We were very pleased to announce last week the addition
of Francis Giudici to the Board of Directors effective August 16,
2013. Mr. Giudici is a well-known local businessman in South
Monterey County who shares our commitment to effectively
representing the Bank's shareholders and who plans to contribute to
the Bank's goal of gaining market share in that region."
Susan Freeland, a Bank director and Chairperson of the Board
Asset / Liability Management Committee, added: "1st Capital Bank
once again recently received a 5 Star, Superior rating from Bauer
Financial, Inc. This is Bauer's highest possible rating and
reflects the financial soundness of the Bank, including its strong
capital position."
Performance Highlights
- The Bank continued to present an excellent credit profile at
June 30, 2013, with a non-performing asset ratio of 0.24% and a
ratio of allowance for loan losses to nonperforming loans of
517.81%. The Bank did not record any charge-offs during the second
quarter of 2013.
- Non-accrual loans totaled $0.9 million at June 30, 2013,
equivalent to 0.35% of loans outstanding. No new loans were
transferred to non-accrual status during the second quarter of
2013, and the inventory of non-accrual loans at March 31, 2013
continued to pay down.
- Total deposits rose 7.7% during the second quarter of 2013,
while transaction accounts increased from 89.4% of total deposits
at December 31, 2012 to 91.5% of total deposits at June 30,
2013.
- At June 30, 2013, the Bank maintained a regulatory total
risk-based capital ratio of 14.90%, substantially in excess of the
10.00% threshold to be categorized in the highest regulatory
capital classification of "well capitalized." The Bank's regulatory
capital ratios at June 30, 2013 benefited from $533 thousand in new
Tier One Regulatory Capital from payments received for the exercise
of vested stock options during the second quarter of 2013.
- Tangible book value per share rose to $10.61 as of June 30,
2013.
Financial Condition Analysis
Funds held at the Federal Reserve Bank of San Francisco
("FRB-SF") decreased from $21.0 million at December 31, 2012 to
$12.0 million at June 30, 2013. This reduction resulted from the
Bank's decision to invest excess on-balance sheet liquidity
primarily into variable rate mortgage backed securities ("MBS") and
floating rate tranches of collateralized mortgage obligations
("CMOs") issued by the Federal National Mortgage Association
("FNMA"), the Government National Mortgage Association ("GNMA"), or
the Federal Home Loan Mortgage Corporation ("FHLMC") (collectively,
"U.S. Agencies") in order to augment interest income. Funds held at
the FRB-SF earned a yield of 0.25% during the second quarter of
2013, compared to a yield of 0.66% for the U.S. Agency variable
rate MBS and 0.39% for the U.S. Agency floating rate CMOs.
Time deposits at other financial institutions declined from $9.3
million at December 31, 2012 to $8.8 million at June 30, 2013, as
funds from maturing time deposits were reinvested into
securities.
Securities categorized as available for sale increased from
$41.8 million at December 31, 2012 to $79.7 million at June 30,
2013. During the first half of 2013, the Bank invested deposit
inflows in excess of loan portfolio growth, maturing time deposit
funds, plus some of its balances at the FRB-SF into:
- variable rate FNMA multifamily MBS;
- floating rate tranches of FNMA, GNMA, or FHLMC residential or
multifamily CMOs; and
- two municipal bond purchases aggregating $0.7 million, the
majority of which was associated with the Bank's proactively
supporting education for low income students consistent with its
Community Reinvestment Act ("CRA") goals.
The MBS and CMOs were all rated at least AA+ by a nationally
recognized ratings agency and float at a margin over 1 month LIBOR,
with some of these securities subject to lifetime caps. The fair
value of the Bank's $79.7 million in securities at June 30, 2013
exceeded its amortized cost basis by $275 thousand.
At June 30, 2013, the Bank maintained a very strong liquidity
profile, consisting of a significant volume of on-balance sheet
assets (including cash & cash equivalents and securities
available for sale) and over $100 million in off-balance sheet
borrowing capacity. The increase in the Bank's liquidity profile
during the first half of 2013 is reflected in the ratio of net
loans to deposits, which decreased from 81.1% at December 31, 2012
to 74.5% at June 30, 2013. Commenting on the Bank's liquidity, Jon
Ditlevsen, the Bank's Chief Lending Officer, stated: "The Bank
concluded the second quarter of 2013 with ample funds for lending.
We continue to extensively market to local businesses and
professionals. We recognize that increasing the Bank's ratio of net
loans to deposits via quality lending is a key objective for the
Bank during the second half of 2013, as we aim to build a greater
stream of net interest income."
Net loans increased from $238.9 million at December 31, 2012 to
$248.5 million at June 30, 2013. While the Bank originated or
purchased an aggregate $40.8 million in new credit commitments
during the first half of 2013, loan payoffs and curtailments,
principal reductions on lines of credit, and scheduled principal
amortization combined to limit net portfolio growth. During the
second quarter of 2013, the Bank purchased $7.6 million of
seasoned, closed end, hybrid residential mortgages secured by first
deeds of trust from another California community bank in order to
deploy excess liquidity and diversify the Bank's credit portfolio.
Commenting on this acquisition, Dale Diederick, the Bank's Chief
Credit Officer, stated: "All of the purchased mortgages were
individually underwritten by the Bank and met the Bank's normal
credit criteria. In fact, the weighted average loan to value ratio
was 51%. All of the collateral real properties are located in the
Central Coast Region of California."
During April 2013, the Bank relocated its expanded government
guaranteed lending department to the Monterey branch office. This
provided more office and client meeting space for that team. The
Bank has been allocating more of its marketing and promotion budget
during 2013 to various government lending programs (including those
through the U.S. Small Business Administration or "SBA" and the
U.S. Department of Agriculture or "USDA") in order to be able to
offer increased and / or longer term financing to newer stage
businesses than would otherwise be available and in order to take
advantage of the current attractive secondary market prices for the
guaranteed portion of such loans.
The Bank's allowance for loan losses increased from $4.3
million, or 1.77% of total loans, at December 31, 2012 to $4.6
million, or 1.81% of total loans, at June 30, 2013. The allowance
was increased by $779 thousand in loan loss provision during the
first half of 2013, and decreased by the charge-off during the
first quarter of 2013 of a $500 thousand impaired commercial loan.
The Bank continues to pursue recovery of that loan charge-off.
Non-accrual loans decreased from $1.4 million at December 31,
2012 to $0.9 million at June 30, 2013, reflective of the charge-off
of the $500 thousand commercial loan described above and, to a
lesser extent, payments received on non-accrual loans. All but one
of the non-accrual loans were current or less than 30 days
delinquent in scheduled payments as of June 30, 2013. Loans graded
Substandard increased from $5.1 million at December 31, 2012 to
$7.7 million at June 30, 2013 primarily due to the downgrade of one
credit relationship from Special Mention. Loans graded as Special
Mention increased from $4.2 million at December 31, 2012 to $6.6
million at June 30, 2013, primarily due to the downgrade of one
credit relationship in response to weaker farming results over the
past two years. Both of the aforementioned downgraded credit
relationships were current in their scheduled payments at June 30,
2013.
The ratio of the Bank's allowance for loan losses to
non-performing loans rose from 299.38% at December 31, 2012 to
517.81% at June 30, 2013. The Bank has never owned any foreclosed
real estate.
Premises and equipment, net of accumulated depreciation,
increased from $1.3 million at December 31, 2012 to $1.4 million at
June 30, 2013. The majority of this increase was due to a minor
remodeling of the Salinas branch office and the purchase of new
hardware in support of the Bank's technology platform.
The $40.2 million increase in total assets by the Bank during
the first half of 2013 to a record $369.5 million better leveraged
its capital, with the ratio of total equity to total assets
decreasing from 10.32% at December 31, 2012 to 9.49% at June 30,
2013. The Bank generally seeks to maintain this ratio at between
9.00% and 10.00% in order to present a well-capitalized profile on
the one hand, but also support return on average shareholders'
equity on the other hand. Commenting in this regard, Clay Larson,
the Bank's Regional President, stated: "The Bank is well positioned
to increase its loan portfolio without needing to further increase
its total assets by shifting funds from excess cash equivalents and
the security portfolio to loans. We plan to have an even greater
level of visibility throughout Monterey County during the second
half of 2013 as the Bank sponsors or participates in a wide range
of community events."
The Bank's investment in the capital stock of the Federal Home
Loan Bank ("FHLB") increased from $1.0 million at December 31, 2012
to $1.5 million at June 30, 2013 due to the standard asset-based
investment requirement applicable to FHLB members.
Non-interest bearing demand deposits increased from $123.4
million at December 31, 2012 to $129.8 million at June 30, 2013.
The Bank continues to enhance and market its suite of electronic
banking and cash management services, with the recent addition of a
new service that allows qualified businesses to make deposits to
their 1st Capital Bank accounts at over 400 locations along the
West Coast.
Interest bearing checking accounts increased from $17.5 million
at December 31, 2012 to $18.6 million at June 30, 2013. Given the
historically low interest rate environment, the Bank has attracted
these consumer, sole proprietor, and non-profit organization
checking accounts by its focus on a concierge level of service
rather than based upon interest rate.
Money market deposits increased from $60.1 million at December
31, 2012 to $85.2 million at June 30, 2013. Money market deposits
during 2013 benefited from:
- low (often, near zero) interest rates being paid on brokerage
accounts and money market mutual funds, thereby encouraging clients
to transfer their funds to higher yielding and FDIC insured
accounts;
- the expiration of the FDIC Transaction Account Guaranty Program
on December 31, 2012, whereby non-interest bearing checking
accounts (as defined under the Program) received unlimited FDIC
deposit insurance coverage (the expiration thereby encouraged
certain clients to reallocate funds back to money market accounts
insured under the FDIC's unified Standard Maximum Deposit Insurance
Amount);
- the Bank's cross-selling money market accounts to new checking
account clients given the easy integration and customization via
the Bank's online banking service;
- the conversion of certain deposits from certificates of deposit
to money market accounts given the limited yield differential
between the products in the current interest rate environment;
and
- the Bank's offering tiered pricing on money market accounts,
whereby clients receive a higher interest rate on their entire
account balance as each successively higher balance tier level is
attained.
Savings deposits rose from $62.4 million at December 31, 2012 to
$71.7 million at June 30, 2013. The Bank realized balance increases
in both consumer and business savings products, which have been an
attractive alternative for liquid funds in the current historically
low interest rate environment.
Time deposits decreased from $31.3 million at December 31, 2012
to $28.3 million at June 30, 2013. Factors contributing to this
decline included transfers from certain maturing time deposits into
transaction accounts and the Bank's moderating its time deposit
pricing in response to its favorable liquidity position and the
availability of alternative low cost funding. $6.0 million of the
$28.3 million in time deposits at June 30, 2013 were comprised of
low cost state term funds.
Commenting on the Bank's deposit performance, Marilyn Goode, the
Bank's Chief Administrative Officer, stated: "We are very pleased
to report record total deposits of $333.7 million at June 30, 2013.
This deposit growth was achieved without pursuing institutional or
wholesale deposits in light of the Bank's strong liquidity
position." Ms. Goode then continued: "The Bank's weighted average
cost of deposits during the second quarter of 2013 was just 0.19%,
representing a reduction from 0.22% during the first quarter of
2013. We welcomed a notable number of new cash management clients
during the first half of 2013, many of whom selected multiple
services from our product set of ACH origination, online wire
request, sweep, online banking, electronic bill payment, lockbox,
positive payment, person to person payment, and remote deposit
capture."
Shareholders' equity rose from $34.0 million at December 31,
2012 to $35.1 million at June 30, 2013. The first half net income,
$164 thousand in equity compensation expense, and $533 thousand
from the exercise of vested stock options more than offset a $241
thousand reduction in the accumulated other comprehensive income
associated with securities classified as available for sale.
During the second quarter of 2013, the Board of Directors
approved the following administrative changes to the Bank's 2007
Equity Incentive Plan:
- Voting and dividend rights will not be available until
restricted share awards vest and the associated shares are
issued.
- Restricted share awards will not pro-rata vest in the event of
recipient death or disability.
- The Board of Directors will have greater discretion regarding
the form of payment in conjunction with the exercise of stock
options.
- Various revisions that facilitate the efficient administration
of the Plan, such as electronic share delivery.
The Bank views all of the above changes to the 2007 Equity
Incentive Plan as being favorable to shareholders. All directors
and executive officers with outstanding restricted share awards or
stock options executed documents consenting to the applicability of
the above changes to their existing unvested restricted share
awards and outstanding stock options. In addition, these revisions
impacted the disclosure treatment for unvested restricted share
awards. Unvested restricted share awards are not included in the
count of outstanding common shares effective with June 30, 2013
financial reporting.
Commenting on the revisions to the 2007 Equity Incentive Plan,
Daniel Hightower, the Vice Chairman of the Board, stated: "Upon
comparison of the Bank's Equity Incentive Plan to similar programs
maintained by other publicly traded financial institutions, the
directors identified the opportunity to amend the Plan to have an
even stronger shareholder value orientation. We view these Plan
changes as one component of the Board's ongoing commitments to
generating shareholder value and maintaining a high caliber of
corporate governance."
Commencing on January 1, 2013, director compensation was shifted
to consist solely of time-based restricted share awards. Similarly,
the compensation packages for recently hired Bank officers have
included a restricted share award component that vests over time,
rather than being exclusively composed of cash compensation. The
stock option exercises and the equity based compensation, in
addition to retained earnings, are supporting the Bank's regulatory
capital ratios and capacity for growth. The more extensive use of
restricted share awards as a form of compensation emphasizes the
directors' and officers' commitment to enhancing shareholder
value.
Nominal and tangible book values were a record $10.61 per share
at June 30, 2013, versus $10.27 per share at December 31, 2012.
Operating Results Analysis
Net interest income before provision for loan losses of $3.1
million during the three months ended June 30, 2013 increased from
both: (i) $2.9 million during the three months ended June 30, 2012;
and (ii) $3.0 million during the three months ended March 31, 2013
(the immediately preceding quarter). These increases in net
interest income were primarily generated by a rise in interest
earning assets, as the Bank's net interest margin declined from
4.04% during the second quarter of 2012 to 3.82% during the first
quarter of 2013 to 3.64% during the second quarter of 2013.
Net interest income before provision for loan losses rose from
$5.6 million during the six months ended June 30, 2012 to $6.1
million during the six months ended June 30, 2013. The Bank's net
interest margin declined from 4.04% during the first six months of
2012 to 3.73% during the first six months of 2013.
This margin compression is a general trend facing the banking
industry, as funding costs have already been reduced to
historically low levels while asset yields continue to fall in
conjunction with:
- the Federal Reserve's continuing to implement aggressive
monetary policies (including quantitative easing) in an effort to
reduce the national unemployment rate;
- strong price competition among financial institutions for high
quality loans; and
- older, higher yielding loans and securities maturing and
amortizing and being replaced by new, lower yielding loans and
securities reflective of current market interest rates.
The Bank's recent net interest margin was particularly impacted
by the decline in the ratio of average loans to average deposits to
77.6% during the second quarter of 2013 from 79.7% during the
immediately preceding quarter.
The Bank plans to support its net interest income during 2013
via the following strategies:
- continuing to focus upon the growth the Bank's balance sheet,
particularly the loan portfolio;
- seeking to allocate a greater percentage of excess on-balance
sheet liquidity to securities versus cash equivalents in order to
obtain incremental yield; and
- pursuing a further migration in deposit mix away from
certificates of deposit and toward non-interest bearing checking
accounts.
The provision for loan losses was $319 thousand during the
second quarter of 2013, compared to $424 thousand during the second
quarter of 2012 and $460 thousand during the first quarter of 2013
(the immediately preceding quarter). Factors contributing to the
provision for loan losses during the second quarter of 2013
included:
- additional specific loan loss reserves of $110 thousand for two
impaired loans associated with one credit relationship based upon
an updated valuation of the collateral securing the debt and
additional information regarding the borrower's recent financial
profile;
- increased formula general reserves associated with the credit
relationship described above that was downgraded to Special Mention
during the second quarter of 2013; and
- growth in the size of the loan portfolio.
The provision for loan losses increased from $464 thousand
during the first six months of 2012 to $779 thousand during the
first six months of 2013. Factors contributing to the provision for
loan losses during the first quarter of 2013 (i.e. in addition to
those specified above) included:
- additional loan loss reserves of $277 thousand associated with
the $500 thousand impaired commercial loan that was charged off
during the first quarter of 2013;
- an increase in hospitality industry related loans (a primary
industry in the Bank's market area), which are reserved at a higher
ratio than most other types of investor real estate; and
- a rise in the amount of loan loss reserves designated for the
Bank's qualitative adjustment factors, which in turn primarily
resulted from the Bank's recognition that new (but highly
experienced) officers were recently installed into the Chief
Executive Officer, Chief Credit Officer, and Chief Lending Officer
positions.
Non-interest income of $76 thousand during the three months
ended June 30, 2013 represented an increase from both: (i) $36
thousand during the three months ended June 30, 2013; and (ii) $64
thousand during the three months ended March 31, 2013 (the
immediately preceding quarter). Non-interest income of $140
thousand during the first six months of 2013 almost doubled the $73
thousand recognized during the first six months of 2012. The Bank
implemented a revised fee and service charge schedule effective May
1, 2013 that included some new fees as well as increases to certain
existing fees for various services the Bank provides. In addition,
during the third quarter of 2012, the Bank made its initial
investment into Bank Owned Life Insurance ("BOLI"). This investment
generates monthly dividend income that increases its cash surrender
value and is accounted for as a component of non-interest
income.
Non-interest expense increased from $2.2 million during both the
second quarter of 2012 and the first quarter of 2013 (the
immediately preceding quarter) to $2.3 million during the second
quarter of 2013. Non-interest expense rose from $4.3 million during
the first six months of 2012 to $4.4 million during the first six
months of 2013.
Salaries and benefits costs increased from $1.24 million during
the second quarter of 2012 to $1.36 million during the second
quarter of 2013. Salary and benefits costs during the first quarter
of 2013 (the immediately preceding quarter) were $1.32 million.
Salaries and benefits costs rose from $2.55 million during the
first six months of 2012 to $2.68 million during the first six
months of 2013. The year over year increases primarily resulted
from expenses for new positions created in support of the Bank's
growth, including Information Technology Manager, Relationship
Manager, Credit Administrator, and Business Development Officer.
The increase from the immediately preceding quarter was primarily
caused by a lower level of capitalized loan origination costs
(recorded as a reduction in salaries and benefits expenses). The
Bank redesigned its health and welfare benefits effective January
1, 2013 to both provide good relative value to its employees and
control related expenses. As a result, health and welfare expenses
were slightly lower during the first six months of 2013 versus the
same period the prior year despite the Bank's increased staffing
and the general upward trend for such costs.
Occupancy expenses increased slightly from $180 thousand during
the second quarter of 2012 to $186 thousand during the second
quarter of 2013. Occupancy expenses during the first quarter of
2013 (the immediately preceding quarter) were $193 thousand.
Occupancy expenses rose from $357 thousand during the first six
months of 2012 to $379 thousand during the first six months of 2013
primarily due to the incremental costs associated with the new
location for the Monterey branch office, which opened in March
2012. In addition, in response to an expanding client base, the
Bank enlarged its King City branch office in March 2013, resulting
in a monthly rent increase of $2 thousand. As of June 30, 2013, the
King City branch office housed over $63 million in deposits.
Other non-interest expense during the second quarter of 2013
totaled $627 thousand, down from $645 thousand during the second
quarter of 2012, but up from $577 thousand during the first quarter
of 2013 (the immediately preceding quarter). The Bank's aggregate
costs for software and technology have been trending upward in
conjunction with an increased client base with more accounts and
more transactions, and with the implementation of new technologies.
As one example, the Bank recently implemented remote service
technology whereby clients with questions regarding online banking
or cash management services may permit Bank employees to view their
computer desktops / screens over the Internet and thereby provide
immediate and highly specific assistance.
The Bank's efficiency ratio (operating costs compared to income
from operations) improved to 70.69% for the second quarter of 2013
from 73.25% for the second quarter of 2012. The Bank's efficiency
ratio for the first six months of 2013 was 70.50%, compared to
76.06% during the first six months of 2012. These improvements in
the Bank's efficiency ratio would have been even more pronounced if
the Bank had not experienced the margin compression described
above. The progress in the Bank's efficiency ratio reflects the
21.7% rise in total assets during the twelve months ended June 30,
2013 without adding additional branch locations. Technology has
been utilized to perform an increasing volume of client
transactions without adding new physical locations or hiring a
significant volume of additional branch staff. The Bank offers both
qualified businesses and consumers check deposit processing via
scanner, with check deposit via smartphone planned for later in
2013.
About 1st Capital Bank
The Bank's target markets are commercial enterprises,
professionals, real estate investors, family business entities, and
residents in Monterey County. The Bank provides a wide range of
credit products, including loans under various government programs
such as those provided through the U.S. Small Business
Administration ("SBA") and the U.S. Department of Agriculture
("USDA"). A full suite of deposits accounts are also furnished,
complemented by robust cash management services. The Bank operates
full service branch offices in Monterey, Salinas, and King City.
The Bank's corporate offices are located at 5 Harris Court,
Building N, Suite 3, Monterey, California 93940. The Bank's website
is www.1stcapitalbank.com and the main telephone number is
831.264.4000.
Member FDIC / Equal Opportunity Lender / SBA Preferred
Lender
Forward-Looking Statements:
Certain of the statements contained herein that are not
historical facts are "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. Such forward-looking statements may
contain words or phrases including, but not limited, to: "believe,"
"expect," "anticipate," "intend," "estimate," "target," "plans,"
"may increase," "may fluctuate," "may result in," "are projected,"
and variations of those words and similar expressions. 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 other factors. The Bank does not
undertake, and specifically disclaims any obligation, to update or
revise any forward-looking statements, whether to reflect new
information, future events, or otherwise, except as required by
law.
This news release is available at the
www.1stcapitalbank.com Internet site for no charge.
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
Financial Condition June 30, March 31, December 31, June 30,
Data(1) 2013 2013 2012 2012
---------- ---------- ------------ ----------
Assets
Cash and due from banks $ 10,474 $ 6,455 $ 8,551 $ 6,324
Funds held at the
Federal Reserve Bank 11,960 17,623 21,042 42,060
Time deposits at other
financial institutions 8,823 9,321 9,321 6,823
Available-for-sale
securities, at fair
value 79,673 62,903 41,762 18,245
Loans receivable held
for investment:
Construction / land
(including farmland) 22,149 19,014 18,207 16,912
Residential 1 to 4
units 32,922 24,454 22,711 21,071
Home equity lines of
credit 10,033 10,548 12,243 12,244
Multifamily 5,011 5,615 2,397 3,964
Owner occupied
commercial real
estate 49,780 48,646 47,917 47,930
Investor commercial
real estate 64,272 62,945 65,733 50,782
Commercial and
industrial 62,902 67,024 71,848 72,205
Other loans 6,053 5,785 2,197 2,726
---------- ---------- ------------ ----------
Total loans 253,122 244,031 243,253 227,834
Allowance for loan
losses (4,593) (4,274) (4,314) (3,784)
---------- ---------- ------------ ----------
Net loans 248,529 239,757 238,939 224,050
Premises and equipment,
net 1,386 1,402 1,282 1,314
Bank owned life
insurance 3,603 3,579 3,555 --
Investment in FHLB(2)
stock, at cost 1,494 1,026 1,026 1,026
Accrued interest
receivable and other
assets 3,586 3,238 3,871 3,678
---------- ---------- ------------ ----------
Total assets $ 369,528 $ 345,304 $ 329,349 $ 303,520
========== ========== ============ ==========
Liabilities and
shareholders' equity
Deposits:
Noninterest bearing
demand deposits $ 129,840 $ 120,780 $ 123,403 $ 99,883
Interest bearing
checking accounts 18,611 15,533 17,482 12,218
Money market 85,224 73,671 60,091 69,806
Savings 71,690 70,478 62,364 51,620
Time 28,307 29,391 31,314 36,649
---------- ---------- ------------ ----------
Total deposits 333,672 309,853 294,654 270,176
Accrued interest payable
and other liabilities 777 1,147 694 781
Shareholders' equity 35,079 34,304 34,001 32,563
---------- ---------- ------------ ----------
Total liabilities and
shareholders' equity $ 369,528 $ 345,304 $ 329,349 $ 303,520
========== ========== ============ ==========
Shares outstanding(3) 3,306,861 3,310,503 3,310,503 3,245,903
Nominal and tangible book
value per share $ 10.61 $ 10.36 $ 10.27 $ 10.03
Ratio of net loans to
total deposits 74.48% 77.38% 81.09% 82.93%
1 = Certain reclassifications have been made to prior period
financial statements to conform them to the current period
presentation. Loans held for investment are presented according to
definitions applicable to the regulatory Call Report.
2 = Federal Home Loan Bank
3 = The Bank revised its 2007 Equity Incentive Plan during the
second quarter of 2013. Those revisions resulted in a lower number
of outstanding common shares being reported at June 30, 2013 due to
the elimination of voting and other rights for unvested restricted
share awards.
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
3 Months Ended
-----------------------------------
June 30, March 31, June 30,
Operating Results Data 2013 2013 2012
----------- ----------- -----------
Interest and dividend income
Loans $ 3,089 $ 2,992 $ 2,966
Investment securities 141 132 106
Federal Home Loan Bank stock 16 6 1
Other 31 36 50
----------- ----------- -----------
Total interest and dividend income 3,277 3,166 3,123
----------- ----------- -----------
Interest expense
Interest bearing checking accounts 7 7 11
Money market 72 64 100
Savings 56 60 69
Time 21 28 44
----------- ----------- -----------
Total interest expense 156 159 224
----------- ----------- -----------
Net interest income 3,121 3,007 2,899
Provision for loan losses 319 460 424
----------- ----------- -----------
Net interest income after provision for
loan losses 2,802 2,547 2,475
Noninterest income
Service charges on deposits 29 22 21
BOLI dividend income 24 24 --
Other 23 18 15
----------- ----------- -----------
Total noninterest income 76 64 36
Noninterest expenses
Salaries and benefits 1,360 1,317 1,243
Occupancy 186 193 180
Furniture and equipment 87 72 82
Other 627 577 645
----------- ----------- -----------
Total noninterest expenses 2,260 2,159 2,150
----------- ----------- -----------
Income before provision for income taxes 618 452 361
Provision for income taxes 259 189 152
----------- ----------- -----------
Net income $ 359 $ 263 $ 209
=========== =========== ===========
Common Share Data
Earnings per share
Basic $ 0.11 $ 0.08 $ 0.06
Diluted $ 0.11 $ 0.08 $ 0.06
Weighted average shares outstanding
Basic 3,269,382 3,251,003 3,223,836
Diluted 3,359,011 3,332,108 3,317,799
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
6 Months Ended
---------------------------
June 30, June 30,
Operating Results Data 2013 2012
------------- -------------
Interest and dividend income
Loans $ 6,081 $ 5,745
Investment securities 273 209
Federal Home Loan Bank stock 22 2
Other 67 92
------------- -------------
Total interest and dividend income 6,443 6,048
------------- -------------
Interest expense
Interest bearing checking accounts 14 22
Money market 136 180
Savings 116 134
Time 49 96
------------- -------------
Total interest expense 315 432
------------- -------------
Net interest income 6,128 5,616
Provision for loan losses 779 464
------------- -------------
Net interest income after provision for loan
losses 5,349 5,152
Noninterest income
Service charges on deposits 51 43
BOLI dividend income 48 --
Other 41 30
------------- -------------
Total noninterest income 140 73
Noninterest expenses
Salaries and benefits 2,677 2,545
Occupancy 379 357
Furniture and equipment 159 177
Other 1,204 1,248
------------- -------------
Total noninterest expenses 4,419 4,327
------------- -------------
Income before provision for income taxes 1,070 898
Provision for income taxes 448 379
------------- -------------
Net income $ 622 $ 519
============= =============
Common Share Data
Earnings per share
Basic $ 0.19 $ 0.16
Diluted $ 0.19 $ 0.16
Weighted average shares outstanding
Basic 3,260,406 3,222,982
Diluted 3,344,682 3,313,647
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)
June 30, March 31, December 31, June 30,
Asset Quality 2013 2013 2012 2012
--------- --------- ------------ ---------
Loans past due 90 days or
more and accruing interest $ -- $ -- $ -- $ --
Nonaccrual restructured
loans 233 235 238 226
Other nonaccrual loans 654 678 1,203 534
Other real estate owned -- -- -- --
--------- --------- ------------ ---------
$ 887 $ 913 $ 1,441 $ 760
========= ========= ============ =========
Allowance for loan losses
to total loans 1.81% 1.75% 1.77% 1.66%
Allowance for loan losses
to nonperforming loans 517.81% 468.13% 299.38% 497.89%
Nonaccrual loans to total
loans 0.35% 0.37% 0.59% 0.33%
Nonperforming assets to
total assets 0.24% 0.26% 0.44% 0.25%
Regulatory Capital and Ratios
Tier 1 regulatory capital $ 34,918 $ 33,949 $ 33,600 $ 32,192
Total regulatory capital $ 38,141 $ 37,035 $ 36,646 $ 35,001
Tier 1 leverage ratio 9.79% 10.15% 10.67% 10.80%
Tier 1 risk based capital
ratio 13.64% 13.82% 13.87% 14.40%
Total risk based capital
ratio 14.90% 15.08% 15.12% 15.70%
3 Months Ended 6 Months Ended
------------------------------- --------------------
Selected Financial June 30, March 31, June 30, June 30, June 30,
Ratios(1) 2013 2013 2012 2013 2012
--------- --------- --------- --------- ---------
Return on average
total assets 0.40% 0.32% 0.28% 0.36% 0.36%
Return on average
shareholders'
equity 4.14% 3.10% 2.59% 3.63% 3.23%
Net interest margin 3.64% 3.82% 4.04% 3.73% 4.04%
Net interest income
to average total
assets 3.51% 3.64% 3.92% 3.57% 3.91%
Efficiency ratio 70.69% 70.30% 73.25% 70.50% 76.06%
Selected Average
Balances
Loans $ 249,169 $ 238,456 $ 214,583 $ 243,842 $ 207,261
Investment
securities 70,398 51,172 17,790 60,838 16,761
Federal Home Loan
Bank stock 1,366 1,026 996 1,198 957
Other interest
earning assets 22,654 28,775 55,218 25,697 54,412
--------- --------- --------- --------- ---------
Total interest
earning assets $ 343,587 $ 319,429 $ 288,587 $ 331,575 $ 279,391
Total assets $ 356,775 $ 334,594 $ 297,159 $ 345,746 $ 288,697
Interest bearing
checking accounts $ 17,431 $ 15,594 $ 14,469 $ 16,478 $ 13,806
Money market 81,289 68,202 66,699 74,821 61,646
Savings 67,991 66,658 48,242 67,328 44,899
Time deposits 28,000 29,969 37,704 28,979 39,377
--------- --------- --------- --------- ---------
Total interest
bearing deposits $ 194,711 $ 180,423 $ 167,114 $ 187,606 $ 159,728
Noninterest bearing
demand deposits 126,349 118,835 96,972 122,612 96,146
--------- --------- --------- --------- ---------
Total Deposits $ 321,060 $ 299,258 $ 264,086 $ 310,218 $ 255,874
Shareholders'
equity $ 34,775 $ 34,354 $ 32,513 $ 34,566 $ 32,327
1 = All Selected Financial Ratios are annualized other than the
Efficiency ratio.
For further information, please contact: Mark R. Andino
President and Chief Executive Officer 831.264.4028 office
831.915.6498 cellular Mark.Andino@1stcapitalbank.com Or
Jayme C. Fields Chief Financial Officer 831.264.4011 office
831.917.8725 cellular Jayme.Fields@1stcapitalbank.com
Grafico Azioni 1st Capital Bancorp (QX) (USOTC:FISB)
Storico
Da Giu 2024 a Lug 2024
Grafico Azioni 1st Capital Bancorp (QX) (USOTC:FISB)
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Da Lug 2023 a Lug 2024
