News Column

First Mountain Bank Announces Fourth Quarter and Year-End 2013 Results

February 27, 2014

BIG BEAR LAKE, Calif.--(BUSINESS WIRE)-- First Mountain Bank (OTCBB:FMBP), today reported net income of $680,149, or earnings per basic share of $0.43, for the year ended December 31, 2013, compared to a net loss of $2,899,196, or loss per basic share of $1.85, for year-end 2012. The Bank also reported net income of $74,869, or $0.05 per basic share, for the fourth quarter of 2013, compared to a net loss of $2,200,156, or $1.41 per basic share, for the fourth quarter of 2012. Results for 2013 represent a nearly $1.9 million turnaround in pre-tax earnings for the Bank compared to 2012. The significant improvement in earnings is a direct result of gains from selling the guaranteed portion of SBA/USDA loan originations, improved asset quality allowing for much lower loan loss provisions, and cost savings resulting from branch consolidation.

John “Jack” Briner, Chairman and Chief Executive Officer, stated, “We are pleased to report positive earnings for 2013. With conditions in our mountain economy showing signs of improvement in many areas, we are quite optimistic for 2014 and beyond. We have good reason to be optimistic: the premiums from the sale of the guaranteed portion of our SBA loans have become a significant source of core earnings and our SBA loan pipeline remains strong. In addition, we continue to make significant improvements in the overall quality of our loan portfolio. As we have historically reported, the Bank’s Tier 1 Leverage Capital Ratio continues to grow while we retain the highest regulatory designation of 'Well Capitalized.' Finally, it is important to emphasize that First Mountain Bank has no debt and no brokered deposits.”

Total assets were $134,397,170 at December 31, 2013, as compared to the December 31, 2012, figure of $138,472,116. Total deposits were $121,264,277 at December 31, 2013, compared to the December 31, 2012, figure of $125,899,208.

Gross loans outstanding at December 31, 2013 totaled $90,713,248, compared to $93,602,065 at December 31, 2012, a decrease of $2,888,817, or 3.1%. The Bank reported a net interest margin of 3.98% during 2013, compared to 4.51% in 2012. The margin compression is the result of competitive pressures on rates and the level of lower yielding liquid assets.

The allowance for possible loan losses stood at $2,814,762 at December 31, 2013, or 3.10% of outstanding loans, compared to a ratio of 3.06% at December 31, 2012. During 2013 the level of non-accrual loans declined from $15,694,719 at December 31, 2012 to $9,499,312 at December 31, 2013, a reduction of nearly $6.2 million or 39%. At year-end 2013, of all the loans being reported as non-accrual, only one small loan of $5,000 was actually delinquent. The Bank had no foreclosed properties at December 31, 2013.

At December 31, 2013, the Bank had total equity capital of $12,059,062, which represents a Tier 1 leverage capital ratio of 9.16%, which is in excess of regulatory guidelines for a “Well Capitalized” designation. The Company also reported book value of $7.71 per share on 1,564,926 shares outstanding at year end.

First Mountain Bank is headquartered in Big Bear Lake and has three offices serving the Big Bear and high desert areas of Southern California. For further information contact Jack Briner, Chairman/CEO, or Dennis Saunders, President/CFO, at (909) 866-5861.

 

FIRST MOUNTAIN BANK

         
STATEMENT OF CONDITION - (Unaudited)
December 31, 2013   December 31, 2012
Assets
Cash and due from banks $ 25,374,284 $ 30,771,031
Fed funds 468,594 466,985
Investment securities 12,656,278 8,387,202
Gross loans 90,713,248 93,602,065
Less: Allowance for loan losses   (2,814,762 )   (2,860,700 )
Net loans 87,898,486 90,741,365
Bank premises and equipment 2,314,750 2,220,780
Other assets   5,684,778     5,884,753  
Total Assets $ 134,397,170   $ 138,472,116  
 
Liabilities
Noninterest-bearing deposits $ 40,505,902 $ 42,232,580
Interest-bearing deposits   80,758,375     83,666,628  
Total deposits 121,264,277 125,899,208
Other liabilities   1,073,831     976,588  
Total Liabilities   122,338,108     126,875,796  
Stockholders' Equity
Common stock 12,081,356 12,060,998
Retained earnings¥(Accumulated Deficit) 153,751 (526,398 )
Accumulated other comprehensive income (loss)   (176,045 )   61,720  
Total Stockholders' Equity   12,059,062     11,596,320  
Total Liabilities and Stockholders' Equity $ 134,397,170   $ 138,472,116  
 
 
Book value per share $ 7.71 $ 7.41
 
               
STATEMENT OF INCOME - (Unaudited)                          
For the three months endedFor the year ended
12/31/1312/31/1212/31/1312/31/12
 
Interest income $ 1,321,333 $ 1,569,881 $ 5,439,149 $ 6,149,196
Interest expense   74,043   94,895     312,076   434,916  
Net interest income before
provision for loan losses 1,247,290 1,474,986 5,127,073 5,714,280
Provision for loan losses   -   70,000     45,000   566,000  
Net interest income 1,247,290 1,404,986 5,082,073 5,148,280
Other operating income 357,946 1,323,925 1,893,399 1,358,474
Operating expenses   1,530,367   2,652,067     6,295,323   7,695,950  
Income (loss) before income taxes 74,869 76,844 680,149 (1,189,196 )
Provision (benefit) for income taxes   -   2,277,000     -   1,710,000  
Net Income (Loss) $ 74,869 $ (2,200,156 ) $ 680,149 $ (2,899,196 )
Earnings (Loss) per share - basic $ 0.05 $ (1.41 ) $ 0.43 $ (1.85 )
Earnings (Loss) per share - dilutive $ 0.05 $ (1.41 ) $ 0.43 $ (1.85 )





First Mountain Bank

Dennis Saunders, (909) 866-5861

Source: First Mountain Bank


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