HispanicBusiness

MONTEREY, CA -- (Marketwire) -- 10/18/12 -- 1st Capital Bank (OTCBB: FISB): 1st Capital Bank continued to build core relationships as it closed the third quarter of 2012 with an increase in net income of 73% over the same quarter a year ago and $303 million in total assets, representing 28% growth over the same quarter a year ago. "1st Capital's growth in earning assets continues to significantly outperform the national average for the industry," stated CEO and President Fred Rowden.

Key Performance Highlights of the Third Quarter 2012:

•Net income increased 73% compared to the same quarter a year ago, resulting in an ROA of 0.7% for the quarter •Total assets increased $67 million or 28% to $303 million as of September 30, 2012 compared to September 30, 2011 •Total deposits grew $65 million, or 32%, to $269 million compared to the third quarter of 2011 •Loans outstanding grew $33 million, or 17%, to a total of $234 million compared to the third quarter of 2011 •Asset quality continued to be strong, with a ratio of nonperforming loans to total loans of just 0.31% at September 30, 2012 •Regulatory "Well Capitalized" levels were maintained, with a total risk based capital ratio of 15.3% at September 30, 2012

As a result of the Bank's strong loan growth and reductions in the cost of interest bearing liabilities, net interest income increased by $516,000 as compared to the same quarter in the prior year. This was slightly offset by an increase in non-interest expenses of $154,000, resulting from investments in staff and facilities, since the same quarter in the prior year. Net income of $539,000 for the quarter was up 73% compared to $312,000 in the third quarter of 2011. Profits generated over the last twelve months have increased book value from $9.79 at September 30, 2011 to $10.26 as of September 30, 2012. The efficiency ratio (operating costs compared to income from operations) improved to 0.67 for the quarter ended September 30, 2012 compared to 0.75 for the same quarter one year ago.

"Despite the economic pressures the state and nation have faced, Monterey County has remained a resilient market with a strong economic base including the diversified business sectors of agriculture, hospitality, tourism, medical and education. 1st Capital Bank's role in this diversified economy has contributed to the positive results of operations of the Bank through the quarter ended September 30, 2012," said Fred Rowden, CEO and President.

During the third quarter of 2012, the Bank continued to leverage its investment in staff and infrastructure as it built new relationships that contributed to positive growth. These relationships have increased the percentage of core checking and savings accounts to 87% of total deposits compared to 78% one year ago. In addition, the overall cost of deposits has dropped from 0.50% to 0.31% during the same time period. As the Bank continues to grow it is also leveraging its capital, as evidenced by current Total Risk Based Capital of 15.3% compared to 17.1% one year ago.

The Bank's Financial Summary for the quarter ended September 30, 2012 is described below. For more information regarding the Bank's growth and performance, please visit our website at www.1stcapitalbank.com, or call 831.264.4000.