SOURCE: 1st Capital Bank

1st Capital Bank

February 04, 2013 07:45 ET

1st Capital Bank Announces: Fourth Quarter and Full Year 2012 Financial Results; Completion of Another Profitable Year of Growth

MONTEREY, CA--(Marketwire - Feb 4, 2013) - 1st Capital Bank (OTCQB: FISB) (the "Bank") today announced fourth quarter and year to date financial results through December 31, 2012. The Bank concluded 2012 with record levels of loans, assets, deposits, and shareholders' equity. Income before provision for income taxes also attained a record level during the full year of 2012, increasing 32.5% from the full year of 2011.

Net income during the fourth quarter of 2012 was $748 thousand, equivalent to $0.23 diluted earnings per share. This compared favorably to net income of $257 thousand during the fourth quarter of 2011, equivalent to $0.08 diluted earnings per share. Earnings for the fourth quarter of 2012 also exceeded those in the immediately preceding quarter (the third quarter of 2012) of $539 thousand, equivalent to $0.16 diluted earnings per share.

The fourth quarter of 2012 earnings benefited from $699 thousand in tax-free life insurance benefits, as the Bank had obtained key man life insurance on its founding President and Chief Executive Officer, Fred Rowden, who passed suddenly and unexpectedly in November 2012. The fourth quarter 2012 earnings were restrained, however, by the Bank's establishing a $294 thousand reserve for deductions claimed under the State of California Enterprise Zone program in light of recent positions taken by the Franchise Tax Board. The establishment of the reserve was reflected in the Bank's fourth quarter 2012 provision for income taxes.

While income before provision for income taxes of $3.0 million during the full year of 2012 rose significantly from $2.2 million during the full year of 2011, net income for the full year of 2012 of $1.8 million, or $0.54 diluted earnings per share, declined from $3.1 million, or $0.97 diluted earnings per share for the full year of 2011. This decrease occurred due to the increase in 2011 earnings from the tax benefits related to the reversal of the valuation allowance against the Bank's net deferred tax assets.

Commenting on the fourth quarter and full year of 2012 financial performance, Mark Andino, the Bank's Interim President and Chief Executive Officer, stated: "We are very pleased to announce record levels of loans, assets, deposits, and shareholders' equity. These accomplishments resulted from our focus upon providing truly customized financial solutions that effectively meet the needs of our clients, enhanced by the Bank's commitment to providing a concierge level of client service." Mr. Andino then continued: "The Bank's orientation toward building long term client relationships also facilitated a strong flow of business during 2012, as we met more and more of our clients' aggregate financial needs."

Kurt Gollnick, the Bank's Chairman of the Board, stated: "The Board of Directors approved the purchase of Bank Owned Life Insurance ("BOLI") on key executives during 2012 as a means of ensuring that the potential costs of an unexpected transition would be covered, thereby protecting shareholder value. That investment proved wise with the untimely passing of President and Chief Executive Officer Fred Rowden, who successfully led the Bank through its organization, opening for business, and establishment as the premier community bank in Monterey County."

Performance Highlights

  • Net loans outstanding increased 21.1% during 2012 while the Bank continued to maintain good credit quality.

  • The Bank experienced no net charge-offs during 2012 and did not have any foreclosed real estate at any time during the year.

  • Non-accrual loans totaled $1.4 million at December 31, 2012, equivalent to 0.59% of loans outstanding.

  • Total deposits rose 15.3% during 2012, while transaction accounts increased from 83.4% of total deposits at December 31, 2011 to 89.4% of total deposits at December 31, 2012.

  • The Bank's weighted average cost of deposits was 0.19% at December 31, 2012.

  • The Bank concluded 2012 with a regulatory total risk-based capital ratio of 15.12%, substantially in excess of the 10.00% threshold to be categorized in the highest regulatory capital classification of "well capitalized".

  • Tangible book value per share rose to a record $10.27 as of December 31, 2012.

Financial Condition Analysis

Funds held at the Federal Reserve Bank of San Francisco decreased from $60.1 million at December 31, 2011 to $21.0 million at December 31, 2012. This reduction resulted from the Bank's decision to invest excess on-balance sheet liquidity into time deposits with other financial institutions and securities in order to augment interest income. Therefore, time deposits with other financial institutions increased from $3.8 million at December 31, 2011 to $9.3 million at December 31, 2012; and securities rose from $13.7 million at December 31, 2011 to $41.8 million at December 31, 2012.

A majority of the Bank's security portfolio at December 31, 2012 was comprised of AA+ rated mortgage backed securities (fixed and floating) and floating rate tranches of collateralized mortgage obligations issued by U.S. Agencies. The interest rates on the collateralized mortgage obligations float at a margin over 1 month LIBOR, subject to lifetime caps, rendering these securities highly interest rate sensitive. The fair value of the Bank's $41.8 million in securities at December 31, 2012 exceeded its amortized cost basis by $686 thousand.

The Bank concluded 2012 with 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.

Net loans increased from $197.3 million at December 31, 2011 to $238.9 million at December 31, 2012. This 21.1% increase constitutes a strong performance versus industry averages and reflects a return on the significant investment in staff and infrastructure the Bank made during the second half of 2011. That investment included hiring a number of well known, experienced local bankers and moving the Monterey Branch to a larger and better located facility.

The Bank commenced 2013 with a stronger loan pipeline than a year earlier, including a number of potential loans under various government guaranteed lending programs such as those available through the U.S. Small Business Administration ("SBA"). The Bank plans to allocate more of its marketing and promotion budget during 2013 to various government lending programs (including those through 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.

Commenting on the Bank's recent lending activity, Geoff Loftus, the Bank's Chief Credit Officer, stated: "The Bank was able to achieve meaningful growth in the loan portfolio during both the fourth quarter of 2012 and for the full year despite the limited pace of general economic growth, the continued de-leveraging by certain borrowers with strong cash flows in light of the historically low yields available on many fixed income investments, and the seasoning of the portfolio, which resulted in increased principal amortization." Mr. Loftus then continued: "While we forecast these factors continuing to provide a headwind during 2013, we are encouraged by the increasing visibility of the Bank in our local communities and the volume of referrals from existing clients."

The Bank's allowance for loan losses increased from $3.3 million, or 1.66% of total loans, at December 31, 2011 to $4.3 million, or 1.77% of total loans, at December 31, 2012. Factors that contributed to the increase in the ratio of allowance for loan losses to loans outstanding during 2012 included:

  • A rise in the percentage and volume of loans categorized as Special Mention or Substandard from $5.4 million at December 31, 2011 (2.69% of loans) to $9.3 million at December 31, 2012 (3.82% of loans).

  • An increase in specific reserves for impaired loans from $25 thousand at December 31, 2011 to $417 thousand at December 31, 2012. Impaired loans increased from one relationship totaling $240 thousand at December 31, 2011 to five relationships totaling $4.3 million at December 31, 2012.

Just $1.4 million of the $4.3 million in impaired loans at December 31, 2012 were on non-accrual status and only $0.5 million of loans on non-accrual status were 30 or more days delinquent at December 31, 2012. The Bank's ratio of allowance for loan losses to non-accrual loans was 299.38% at December 31, 2012.

Premises and equipment, net, increased from $0.6 million at December 31, 2011 to $1.3 million at December 31, 2012. The majority of this increase was due to investments in furniture and leasehold improvements as the Bank relocated and expanded its Monterey Branch to serve its growing customer base in that market. Total deposits associated with the Monterey Branch have approximately doubled over the past two years.

During the third quarter of 2012, the Bank purchased $4.5 million in BOLI. That total decreased to $3.6 million at December 31, 2012 due to the effect of the principal repayment associated with the aforementioned claim more than offsetting the impact of dividends credited to the cash surrender value of these policies.

The $41.0 million increase in total assets by the Bank during 2012 to a record $329.3 million better leveraged its capital, with the ratio of total equity to total assets decreasing from 11.03% at December 31, 2011 to 10.32% at December 31, 2012. Over time, 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.

Non-interest bearing demand deposits increased from $118.4 million at December 31, 2011 and $102.7 million at September 30, 2012 to $123.4 million at December 31, 2012. The Bank has historically experienced an increase in demand deposits during the fourth quarter of each year in conjunction with seasonal cash flow patterns associated with certain clients.

Interest bearing checking accounts increased from $12.2 million at December 31, 2011 to $17.5 million at December 31, 2012. The Bank introduced a significantly enhanced online banking platform during 2012 that has been well received by many of the Bank's checking account clients, as it offers easy customization, fully integrated ACH origination, and client-defined activity and balance alerts via text and / or email.

Money market deposits increased from $44.0 million at December 31, 2011 to $60.1 million at December 31, 2012. Money market deposits during 2012 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 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 increased from $38.6 million at December 31, 2011 to $62.4 million at December 31, 2012 in large part due to the success of the Bank's Premier Savings product. This account offers tiered interest rates for liquid funds and has been attractive to many clients in the current historically low interest rate environment.

Time deposits decreased from $42.5 million at December 31, 2011 to $31.3 million at December 31, 2012. Factors contributing to this decline included transfers from some 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.

The ratio of net loans to deposits rose from 77.2% at December 31, 2011 to 81.1% at December 31, 2012. In the current interest rate environment, the Bank is targeting this ratio at 85% to 90% in light of the comparatively low yields available on cash equivalents and high credit quality, low duration securities.

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 $294.7 million at December 31, 2012, with a corresponding weighted average cost of funds of just 0.19%." Ms. Goode then continued: "We began 2013 with a strong momentum in new deposit account openings, supported by our high caliber cash management services. We plan to implement additional cash management technology during 2013 in order for the Bank to remain strongly positioned versus competitor offerings."

Shareholders' equity rose from $31.8 million at December 31, 2011 to $34.0 million at December 31, 2012. This increase was due to:

  • the 2012 net income of $1.8 million;

  • $303 thousand in capital generated through the Equity Compensation Plan; and

  • a $78 thousand increase in accumulated other comprehensive income associated with the unrealized gain on securities classified as available for sale.

Nominal and tangible book values were $10.27 per share at December 31, 2012, versus $9.81 per share at December 31, 2011. The Bank's Board of Directors recently decided that all 2013 director compensation would be exclusively in the form of restricted share awards. This will support the Bank's regulatory capital ratios and capacity for growth; while at the same time emphasizing the directors' commitment to enhancing shareholder value. Similarly, the compensation package for the Interim President and Chief Executive Officer is comprised of a significant percentage of restricted stock (that vests over time), rather than being exclusively composed of cash compensation.

Operating Results Analysis

Net interest income before provision for loan losses increased from $2.7 million and $10.2 million during the three and twelve months ended December 31, 2011 to $3.1 million and $11.8 million during the three and twelve months ended December 31, 2012. The increases in net interest income were primarily generated by a rise in interest earning assets, as the Bank's net interest margin was lower during the three and twelve months ended December 31, 2012 than during the comparable periods during the prior year. 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 implementing aggressive monetary policies (including quantitative easing) in an effort to reduce the stubbornly high national unemployment rate;

  • strong price competition for high quality loans; and

  • older, higher yielding securities maturing and amortizing and being replaced by new, lower yielding securities reflective of current market interest rates.

The Bank plans to support its net interest income during 2013 via the following strategies:

  • continuing to grow the Bank's balance sheet, particularly the loan portfolio; and

  • allocating a greater percentage of excess on-balance sheet liquidity to securities versus cash equivalents in order to obtain incremental yield.

The provision for loan losses was $432 thousand during the fourth quarter of 2012, compared to $196 thousand during the fourth quarter of 2011 and $98 thousand during the third quarter of 2012 (the immediately preceding quarter). The provision for loan losses for 2012 totaled $994 thousand, compared to $665 thousand for 2011. Most of the provision for loan losses during 2012 was associated with loan portfolio growth, with a lesser amount stemming from increased reserves for a relatively small number of loans downgraded to a criticized (i.e. Special Mention) or classified (i.e. Substandard) credit rating.

Non-interest income increased from $42 thousand and $144 thousand during the three and twelve months ended December 31, 2011 to $786 thousand and $909 thousand during the three and twelve months ended December 31, 2012. The vast majority of this increase was due to the death benefit and dividend income received on the BOLI assets purchased during the third quarter of 2012. In regards to fee income, Jayme Fields, the Bank's Chief Financial Officer, stated: "We appreciate the importance of augmenting non-interest income during a period of historically low interest rates accompanied by pressure on net interest margins. We are currently reviewing our operations and fees and charges to identify opportunities for additional sources of non-interest income, with the objective of implementing changes during the second quarter of 2013."

Non-interest expense increased from $2.1 million and $7.4 million during the three and twelve months ended December 31, 2011 to $2.3 million and $8.7 million during the three and twelve months ended December 31, 2012. These increases stemmed from the Bank's investment in additional personnel and enhanced facilities; and from various costs that have risen in conjunction with the increase in the Bank's balance sheet and related higher volume of loan and deposit accounts. 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. The Bank's efficiency ratio (operating costs compared to income from operations) improved to 68.74% for the full year of 2012 from 71.81% for the full year of 2011.

Looking forward in 2013, Kurt J. Gollnick commented: "The Board of Directors plans to reach a decision regarding naming a permanent President and Chief Executive Officer sometime in the next several months. The Bank is fortunate to have a deep and very experienced executive team that worked tirelessly and effectively to successfully bring us through the recent change in leadership." Mr. Gollnick then added: "We believe the Bank is well positioned heading into the new year, with favorable credit quality, ample liquidity, and a strong capital base. The Board of Directors is keenly focused on the importance of leveraging that position and the planned new investments in technology, products, and delivery channels to continue building franchise value and to generate a competitive return for our shareholders."

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 services 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 factors discussed in the Bank's periodic reports under the Securities Exchange Act of 1934, as amended, on Forms 10-K, 10-Q and 8-K filed with the FDIC. 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)
                       
    3 Months Ended   Percent Change From:     12 Months Ended        
    December 31,   September 30,   December 31,   Sep 30,     Dec 31,     December 31,     Percent  
Operating Results Data   2012   2012   2011   2012     2011     2012   2011     Change  
Interest income                                                  
  Loans   $ 3,110   $ 3,153   $ 2,836   (1 %)   10 %   $ 12,008   $ 10,671     13 %
  Investment securities     101     103     88   (2 %)   15 %     413     395     5 %
  Other     46     42     20   10 %   130 %     180     85     112 %
    Total interest income     3,257     3,298     2,944   (1 %)   11 %     12,601     11,151     13 %
Interest expense                                                  
  Interest bearing checking accounts     20     7     6   186 %   233 %     40     40     0 %
  Money market     54     89     70   (39 %)   (23 %)     331     357     (7 %)
  Savings     74     74     62   0 %   19 %     282     251     12 %
  Time     35     39     64   (10 %)   (45 %)     171     332     (48 %)
    Total interest expense     183     209     202   (12 %)   (9 %)     824     980     (16 %)
Net interest income     3,074     3,089     2,742   (0 %)   12 %     11,777     10,171     16 %
Provision for loan losses     432     98     196   341 %   120 %     994     665     49 %
Net interest income after                                                  
  provision for loan losses     2,642     2,991     2,546   (12 %)   4 %     10,783     9,506     13 %
                                                   
Noninterest income                                                  
  Service charges on deposits     22     20     27   10 %   (19 %)     85     75     13 %
  BOLI benefits     699     -     -   100 %   100 %     699     -     100 %
  BOLI dividend income     30     7     -   329 %   100 %     37     -     100 %
  Other     35     21     15   67 %   133 %     88     69     28 %
    Total noninterest income     786     48     42   1538 %   1771 %     909     144     531 %
                                                   
Noninterest expenses                                                  
  Salaries and benefits     1,324     1,290     1,243   3 %   7 %     5,159     4,272     21 %
  Occupancy     195     173     138   13 %   41 %     725     575     26 %
  Furniture and equipment     86     65     100   32 %   (14 %)     328     371     (12 %)
  Other     678     582     667   16 %   2 %     2,508     2,189     15 %
    Total noninterest expenses     2,283     2,110     2,148   8 %   6 %     8,720     7,407     18 %
Income before provision for income taxes     1,145     929     440   23 %   160 %     2,972     2,243     33 %
Provision for (benefit from) income taxes     397     390     183   2 %   117 %     1,166     (895 )   (230 %)
    Net income   $ 748   $ 539   $ 257   39 %   191 %   $ 1,806   $ 3,138     (42 %)
                                                   
Common Share Data                                                  
  Earnings per share                                                  
    Basic   $ 0.23   $ 0.17   $ 0.08   35 %   188 %   $ 0.56   $ 0.97     (42 %)
    Diluted   $ 0.23   $ 0.16   $ 0.08   44 %   188 %   $ 0.54   $ 0.97     (44 %)
                                                   
  Weighted average shares outstanding                                            
    Basic     3,228,689     3,248,690     3,220,853                 3,224,782     3,220,853        
    Diluted     3,295,371     3,337,605     3,254,306                 3,319,925     3,244,921        
                                                   
                                                   
 
 
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
                      Percent Change From:  
    December 31,     September 30,     December 31,     Sep 30,     Dec 31,  
Financial Condition Data   2012     2012     2011     2012     2011  
Assets                                    
  Cash and due from banks   $ 8,551     $ 7,444     $ 8,910     15 %   (4 %)
  Funds held at the Federal Reserve Bank     21,042       27,430       60,062     (23 %)   (65 %)
  Time deposits at other financial institutions     9,321       9,570       3,835     (3 %)   143 %
  Available-for-sale securities, at fair value     41,762       17,384       13,685     140 %   205 %
  Loans:                                    
    Commercial     89,834       89,117       78,504     1 %   14 %
    Real estate-construction     4,834       4,513       4,126     7 %   17 %
    Real estate-other     147,320       138,641       115,902     6 %   27 %
    Consumer     748       1,295       1,580     (42 %)   (53 %)
    Deferred loan fees and costs, net     517       516       470     0 %   10 %
      Total loans     243,253       234,082       200,582     4 %   21 %
    Allowance for loan losses     (4,314 )     (3,882 )     (3,320 )   11 %   30 %
  Net loans     238,939       230,200       197,262     4 %   21 %
  Premises and equipment, net     1,282       1,325       615     (3 %)   108 %
  Bank owned life insurance     3,555       4,500       -     (21 %)   100 %
  Investment in Federal Home Loan Bank stock, at cost     1,026       1,026       918     0 %   12 %
  Accrued interest receivable and other assets     3,871       3,805       3,028     2 %   28 %
Total assets   $ 329,349     $ 302,684     $ 288,315     9 %   14 %
                                     
Liabilities and Shareholders' Equity                                    
  Deposits:                                    
    Noninterest bearing demand deposits   $ 123,403     $ 102,745     $ 118,366     20 %   4 %
    Interest bearing checking accounts     17,482       13,442       12,188     30 %   43 %
    Money market     60,091       59,508       43,983     1 %   37 %
    Savings     62,364       58,260       38,558     7 %   62 %
    Time     31,314       34,584       42,488     (9 %)   (26 %)
      Total deposits     294,654       268,539       255,583     10 %   15 %
                                     
Accrued interest payable and other liabilities     694       910       919     (24 %)   (24 %)
                                     
Shareholders' equity     34,001       33,235       31,813     2 %   7 %
Total liabilities and shareholders' equity   $ 329,349     $ 302,684     $ 288,315     9 %   14 %
                                     
                                     
  Shares outstanding at end of period     3,310,503       3,251,003       3,243,293              
  Nominal and tangible book value per share   $ 10.27     $ 10.22     $ 9.81              
                                     
                                     
  Ratio of net loans to total deposits     81.09 %     85.72 %     77.18 %            
                                     
                                     
 
 
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)
                               
                      Percent Change From:  
    December 31,     September 30,     December 31,     Sep 30,     Dec 31,  
    2012     2012     2011     2012     2011  
                               
Asset Quality                              
  Loans past due 90 days or more and accruing interest   $ -     $ -     $ -              
  Nonaccrual restructured loans     238       220       240     8 %   (1 %)
  Other nonaccrual loans     1,203       519       -     132 %      
  Other real estate owned     -       -       -              
    Total nonperforming assets   $ 1,441     $ 739     $ 240     95 %   500 %
                                     
  Allowance for loan losses to total loans     1.77 %     1.66 %     1.66 %   7 %   7 %
  Allowance for loan losses to nonperforming loans     299.38 %     525.59 %     1,383.00 %   (43 %)   (78 %)
  Allowance for loan losses to nonperforming assets     299.38 %     525.59 %     1,383.00 %   (43 %)   (78 %)
  Nonperforming assets to total assets     0.44 %     0.24 %     0.08 %   440 %   1,485 %
                                     
Regulatory Capital and Ratios                                    
  Tier 1 regulatory capital   $ 33,600     $ 32,793     $ 31,490     2 %   7 %
  Total regulatory capital   $ 36,646     $ 35,723     $ 33,985     3 %   8 %
  Tier 1 leverage ratio     10.67 %     10.81 %     12.58 %   (1 %)   (15 %)
  Tier 1 capital ratio     13.87 %     14.30 %     15.82 %   (3 %)   (12 %)
  Total risk based capital ratio     15.12 %     15.50 %     17.07 %   (2 %)   (12 %)
   
                         
    3 Months Ended     Percent Change From:     12 Months Ended        
    December 31,     September 30,     December 31,     Sep 30,     Dec 31,     December 31,     Percent  
    2012     2012     2011     2012     2011     2012     2011     Change  
                                                 
Selected Financial Ratios                                                
  Return on average total assets     0.94 %     0.71 %     0.41 %   34 %   131 %     0.60 %     1.35 %   (55 %)
  Return on average shareholders' equity     8.84 %     6.49 %     3.20 %   36 %   176 %     5.50 %     10.31 %   (47 %)
  Net interest margin     4.07 %     4.20 %     4.54 %   (3 %)   (10 %)     4.11 %     4.54 %   (9 %)
  Efficiency ratio     59.15 %     67.26 %     77.16 %   (12 %)   (23 %)     68.74 %     71.81 %   (4 %)
                                                           
Selected Average Balances                                                          
  Loans   $ 235,680     $ 231,716     $ 201,594     2 %   17 %   $ 220,552     $ 189,421     16 %
  Investment securities     22,081       17,866       12,377     24 %   78 %     18,376       13,232     39 %
  Other     42,672       42,873       25,524     (0 %)   67 %     48,560       21,459     126 %
    Total interest earning assets   $ 300,433     $ 292,455     $ 239,494     3 %   25 %   $ 287,488     $ 224,112     28 %
  Total assets   $ 315,501     $ 303,785     $ 250,032     4 %   26 %   $ 299,207     $ 232,602     29 %
                                                           
  Interest bearing checking accounts   $ 13,670     $ 13,170     $ 8,774     4 %   56 %   $ 12,792     $ 8,573     49 %
  Money market     61,035       64,196       48,164     (5 %)   27 %     62,953       50,002     26 %
  Savings     62,486       55,170       36,167     13 %   73 %     51,902       32,724     59 %
  Time deposits     32,872       35,229       43,188     (7 %)   (24 %)     36,700       46,457     (21 %)
    Total interest bearing liabilities   $ 170,063     $ 167,765     $ 136,293     1 %   25 %   $ 164,347     $ 137,757     19 %
  Noninterest bearing demand deposits     111,670       102,719       80,932     9 %   38 %     101,701       63,445     60 %
    Total deposits   $ 281,733     $ 270,484     $ 217,225     4 %   30 %   $ 266,048     $ 201,202     32 %
  Shareholders' equity   $ 33,646     $ 33,031     $ 31,865     2 %   6 %   $ 32,836     $ 30,442     8 %
                                                           
                                                           

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