SOURCE: 1st Century Bank

November 12, 2007 09:30 ET

1st Century Bank Reports Sharply Higher Earnings for 2007 3rd Quarter

Company Reports 29% Year-Over-Year Growth in Total Assets; Credit Quality Remains Outstanding With No Non-Performing Assets

LOS ANGELES, CA--(Marketwire - November 12, 2007) - 1st Century Bank, N.A. (OTCBB: FCNA) today reported strong financial results for the three and nine months ended September 30, 2007, with total assets increasing 12.3% sequentially and 28.7% year-over-year.

"We are very pleased with our third quarter performance, particularly against a backdrop of an extremely challenging banking environment with credit and liquidity concerns," said Jason DiNapoli, President and Chief Operating Officer of 1st Century Bank. "Furthermore, our overall loan portfolio remains strong with no exposure to the sub prime mortgage problems faced by many of our peers."

"We attribute the strong performance to our ability to attract and service valuable customer relationships," said Alan I. Rothenberg, Chairman and Chief Executive Officer of 1st Century Bank. "The recent appointment of Richard Ziman and Les Bider to our board of directors further broadens the Bank's reach to the community, and we remain focused more than ever on expanding loans, deposits and total assets through sound and prudent practices as we prepare for our next phase of growth."

For the 2007 third quarter, net interest income before provision for loan losses increased 7.2% to $2.5 million from $2.3 million in the 2006 third quarter. The net interest margin for the current quarter rose two basis points to 4.59% from 4.57% in the immediately preceding second quarter. Net income totaled $366,000, or $0.04 per diluted share, for the three months ended September 30, 2007, up 46.4% from $250,000, or $0.02 per diluted share, in the preceding second quarter and sharply higher from $12,000 in the prior-year period.

For the year-to-date period, net interest income before provision for loan losses increased 9.8% to $7.1 million from $6.5 million in the 2006 nine-month period. The net interest margin for the first nine months of 2007 was 4.49%, compared with 5.08% in the prior-year period. Net income totaled $781,000 or $0.08 per diluted share, for the nine months ended September 30, 2007, compared with $736,000, or $0.07 per diluted share, in the prior-year period.

Net loans increased to $154.3 million at September 30, 2007, compared with $144.1 million at June 30, 2007 and $117.1 million at the end of the third quarter of 2006. Asset quality at 1st Century Bank remains outstanding with no charge-offs or non-performing assets reported to date. Total deposits at the close of the 2007 third quarter grew to $171.1 million from $147.4 million at June 30, 2007 and $112.5 million at September 30, 2006. Total assets increased to $228.2 million at September 30, 2007, representing a 12.3% increase over the $203.3 million reported at the end of the 2007 second quarter and a 28.6% increase over $177.4 million as of September 30, 2006.

Summary Financial Information

The following tables present relevant financial data from the 1st Century Bank's recent performance:

                                        September    December   September
                                            30,         31,         30,
                                           2007        2006        2006
                                        ----------  ----------  ----------
Balance Sheet results (Dollars in
 thousands), except per share data:

        Total Assets                    $  228,202  $  200,752  $  177,372
        Gross Loans                     $  156,627  $  128,135  $  118,778
        Unearned Fee Income             $      112  $      155  $      159
        Allowance for Loan Losses
         ("ALL")                        $    2,166  $    1,668  $    1,523
        Total Net Loans                 $  154,349  $  126,312  $  117,096
        Total Deposits                  $  171,143  $  145,087  $  112,458
        Non-performing Assets           $        -  $        -  $        -
        Total Shareholders' Equity      $   55,378  $   54,109  $   54,341
        Net Loans to Deposits                90.19%      87.06%     104.12%
        ALL to Gross Loans                    1.38%       1.30%       1.28%
        Equity to Assets                     24.27%      26.95%      30.64%
        Ending Shares outstanding        9,898,884   9,783,722   9,783,722
        Ending Book Value per Share     $     5.59  $     5.53  $     5.55



                                                     Three Months Ended
                                                        September 30,
                                                   -----------------------
                                                      2007         2006
                                                   ----------   ----------
Quarterly Operating Results (Dollars in
 thousands), except per share data:

        Net Interest Income                        $    2,474   $    2,308
        Provision for Loan Losses                  $      227   $      246
        Non-interest Income                        $      172   $       56
        Non-interest Expense                       $    2,053   $    2,106
        Income Before Taxes                        $      366   $       12
        Income Tax Expense                         $        -   $        -
        Net Income                                 $      366   $       12
        Basic Income per Share                     $     0.04   $     0.00
        Diluted Income per Share                   $     0.04   $     0.00
        Quarterly Return on Average Assets*              0.67%        0.03%
        Quarterly Return on Average Equity*              2.67%        0.09%
        Quarterly Net Interest Margin*                   4.59%        5.44%




                                                      Nine Months Ended
                                                        September 30,
                                                   -----------------------
                                                      2007         2006
                                                   ----------   ----------
YTD Operating Results (Dollars in thousands),
  except per share data:

        Net Interest Income                        $    7,098   $    6,466
        Provision for Loan Losses                  $      498   $      359
        Non-interest Income                        $      479   $      134
        Non-interest Expense                       $    6,298   $    5,505
        Income Before Taxes                        $      781   $      736
        Income Tax Expense                         $        -   $        -
        Net Income                                 $      781   $      736
        Basic Income per Share                     $     0.08   $     0.08
        Diluted Income per Share                   $     0.08   $     0.07
        YTD Return on Average Assets*                    0.48%        0.56%
        YTD Return on Average Equity*                    1.90%        1.83%
        YTD Net Interest Margin*                         4.49%        5.08%


        *Percentages are reported on an annualized basis.


About 1st Century

1st Century is a full service commercial bank headquartered in the Century City area of Los Angeles, California. 1st Century's primary focus is relationship banking to family owned and closely held small and middle market businesses, professional service firms and high net worth individuals, real estate investors, medical professionals, and entrepreneurs. Additional information is available at www.1stcenturybank.com.

Safe Harbor

Certain matters discussed in this letter constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements relate to 1st Century's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward-looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward-looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on 1st Century's operating results, ability to attract deposit and loan customers and the quality of 1st Century's earning assets; (2) government regulation; and (3) the other risks set forth in 1st Century's reports filed with the Office of the Comptroller of the Currency, including its Annual Report on Form 10-K for the year ended December 31, 2006. 1st Century does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.

Contact Information

  • Contact Information:

    Alan I. Rothenberg
    Chairman/Chief Executive Officer
    Phone: (310) 270-9501
    Fax: (310) 270-9520

    Jason P. DiNapoli
    President/Chief Operating Officer
    Phone: (310) 270-9505
    Fax: (310) 270-9520