Provision for Loan Losses - 1st Capital Bank recorded a provision for loan losses of $98,000 during the quarter ended September 30, 2012 compared to $102,000 in the quarter ended September 30, 2011 and $424,000 in the trailing quarter ended June 30, 2012. The provision continues to be impacted by the volume and variety of loan growth in addition to management's assessment of the condition of the loan portfolio. The ratio of the allowance for loan losses to total loans outstanding was 1.66% at September 30, 2012 compared to 1.56% and 1.66% at September 30, 2011 and June 30, 2012, respectively. The Bank's asset quality remained strong, with a ratio of impaired and nonperforming loans to total loans of only 0.31% as of September 30, 2012. The Bank has never had any real estate acquired through foreclosure.
Noninterest Income - Noninterest income increased $16,000 (50%) to $48,000 for the quarter ended September 30, 2012 compared to the quarter ended September 30, 2011 and increased $11,000 (30%) compared to the trailing quarter ended June 30, 2012, largely due to changes in the volume of fees for services.
Noninterest Expense - Noninterest expense increased $154,000 (8%) to $2.1 million for the quarter ended September 30, 2012 compared to the quarter ended September 30, 2011 and decreased $40,000 (2%) compared to the trailing quarter ended June 30, 2012. The majority of the increase over the prior year was due to the overall growth of the Bank and the investment by the Bank in key personnel and enhanced facilities.
About 1st Capital Bank
1st Capital Bank is focused on providing lending, deposit and highly efficient cash management services such as remote deposit and online banking to small-to-medium size businesses and their owners, and offers specialized banking services for the healthcare industry. The Bank is a full service financial institution with branches located in Monterey, Salinas and King City. The Bank's corporate offices are located at 5 Harris Court, Building N, Suite 3, Monterey, California 93940. Please visit our website at www.1stcapitalbank.com for more information. Member FDIC. Equal Opportunity Lender. An SBA Preferred Lender.
1ST CAPITAL BANK CONDENSED FINANCIAL DATA (Unaudited) (Dollars in thousands, except share and per share data) 3 Months Ended Percent Change From: -------------------------------- September September SeptemberStatement of 30, June 30, 30, June 30, 30,Income Data 2012 2012 2011 2012 2011 ---------- ---------- ---------- --------- ---------Interest income Loans (including fees) $ 3,153 $ 2,966 $ 2,709 6% 16% Investment securities 103 106 94 (3%) 10% Other 42 50 22 (16%) 91% ---------- ---------- ---------- Total interest income 3,298 3,122 2,825 6% 17% ---------- ---------- ----------Interest expense Interest on deposits 209 224 252 (7%) (17%) Other - - - ---------- ---------- ---------- Total interest expense 209 224 252 (7%) (17%) ---------- ---------- ----------Net interest income 3,089 2,898 2,573 7% 20%Provision for loan losses 98 424 102 (77%) (4%) ---------- ---------- ----------Net interest income after provision for loan losses 2,991 2,474 2,471 21% 21%Noninterest income Service charges on deposits 20 21 19 (5%) 5% Other 28 16 13 75% 15% ---------- ---------- ---------- Total noninterest income 48 37 32 30% 50%Noninterest expenses Salaries and benefits 1,290 1,243 1,107 4% 17% Occupancy 173 180 150 (4%) 15% Furniture and equipment 65 82 110 (21%) (41%) Other 582 645 589 (10%) (1%) ---------- ---------- ---------- Total noninterest expenses 2,110 2,150 1,956 (2%) 8% ---------- ---------- ----------Income before provision for income taxes 929 361 547 157% 70%Provision for (benefit from) income taxes 390 152 235 157% 66% ---------- ---------- ---------- Net income $ 539 $ 209 $ 312 158% 73% ========== ========== ==========Common Share DataEarnings per share Basic $ 0.17 $ 0.06 $ 0.10 183% 70% Diluted $ 0.16 $ 0.06 $ 0.10 167% 60%Weighted average shares outstanding Basic 3,248,690 3,223,836 3,220,853 1% 1% Diluted 3,337,605 3,317,799 3,254,306 (1%) 3%Book value per shareTangible book value 1ST CAPITAL BANK CONDENSED FINANCIAL DATA (Unaudited) (Dollars in thousands, except share and per share data) 9 Months Ended --------------------------------Statement of September 30, PercentIncome Data 2012 2011 Change ---------- ---------- ---------Interest income Loans (including fees) $ 8,898 $ 7,835 14% Investment securities 312 307 2% Other 134 65 106% ---------- ---------- Total interest income 9,344 8,207 14% ---------- ----------Interest expense Interest on deposits 641 778 (18%) Other - - ---------- ---------- Total interest expense 641 778 (18%) ---------- ----------Net interest income 8,703 7,429 17%Provision for loan losses 562 469 20% ---------- ----------Net interest income after provision for loan losses 8,141 6,960 17%Noninterest income Service charges on deposits 63 48 31% Other 60 54 11% ---------- ---------- Total noninterest income 123 102 21%Noninterest expenses Salaries and benefits 3,835 3,029 27% Occupancy 530 437 21% Furniture and equipment 242 271 (11%) Other 1,830 1,522 20% ---------- ---------- Total noninterest expenses 6,437 5,259 22% ---------- ----------Income before provision for income taxes 1,827 1,803 1%Provision for (benefit from) income taxes 769 (1,078) (171%) ---------- ---------- Net income $ 1,058 $ 2,881 (63%) ========== ==========Common Share DataEarnings per share Basic $ 0.33 $ 0.89 (63%) Diluted $ 0.32 $ 0.89 (64%)Weighted average shares outstanding Basic 3,238,440 3,220,853 1% Diluted 3,343,070 3,233,435 3%Book value per share $ 10.26 $ 9.79 5%Tangible book value $ 10.26 $ 9.79 5% 1ST CAPITAL BANK CONDENSED FINANCIAL DATA (Unaudited) (Dollars in thousands) Percent Change From: December September September December September 31, 30,Balance Sheet Data 2012 2011 2011 2011 2011 --------- --------- --------- --------- ---------Assets Cash and due from banks $ 7,444 $ 8,910 $ 8,964 (16%) (17%) Federal funds sold and overnight deposits 27,430 60,062 9,878 (54%) 178% Available-for- sale securities, at fair value, and interest bearing deposits 26,954 17,520 14,812 54% 82% Loans: Commercial 89,117 78,504 83,873 14% 6% Real estate- construction 4,513 4,126 3,731 9% 21% Real estate- other 138,641 115,902 110,783 20% 25% Consumer 1,295 1,580 1,754 (18%) (26%) Deferred loan costs, net 516 470 455 10% 13% --------- --------- --------- Total loans 234,082 200,582 200,596 17% 17% Allowance for loan losses (3,882) (3,320) (3,124) 17% 24% --------- --------- --------- Net loans 230,200 197,262 197,472 17% 17% Premises and equipment, net 1,325 615 567 115% 134% Accrued interest receivable and other assets 9,331 3,946 4,039 114% 109% --------- --------- ---------Total assets $ 302,684 $ 288,315 $ 235,732 5% 28% ========= ========= =========Liabilities and Shareholders' Equity Deposits: Demand, noninterest bearing $ 102,745 $ 118,366 $ 69,047 (13%) 49% Demand, interest bearing 72,950 56,171 54,178 30% 35% Savings 58,260 38,558 35,551 51% 64% Time 34,584 42,488 44,630 (19%) (23%) --------- --------- --------- Total deposits 268,539 255,583 203,406 5% 32% Accrued interest payable and other liabilities 910 919 803 (98%) (98%) Shareholders' equity 33,235 31,813 31,523 4% 5% --------- --------- ---------Total liabilities and shareholders' equity $ 302,684 $ 288,315 $ 235,732 5% 28% ========= ========= =========Asset Quality Loans past due 90 days or more and accruing interest $ - $ - $ - Restructured loans 220 240 250 (8%) (12%) Other nonaccrual loans 520 - - Other real estate owned - - - --------- --------- --------- Total nonperforming assets $ 740 $ 240 $ 250 208% 196% ========= ========= ========= Allowance for loan losses to total loans 1.66% 1.66% 1.56% 0% 6% Allowance for loan losses to NPL's 525% 1,383% 1,250% (62%) (58%) Allowance for loan losses to NPA's 525% 1,383% 1,250% (62%) (58%)Regulatory Capital and Ratios Tier 1 capital $ 32,793 $ 31,490 $ 31,116 4% 5% Total capital $ 35,723 $ 33,985 $ 33,654 5% 6% Tier 1 capital ratio 14.1% 15.8% 15.7% (11%) (10%) Total risk based capital ratio 15.3% 17.1% 17.0% (10%) (10%) Tier 1 leverage ratio 10.8% 12.6% 13.3% (14%) (19%)
