SOURCE: 1st Century Bancshares, Inc.

1st Century Bancshares, Inc.

October 20, 2009 09:00 ET

1st Century Bancshares, Inc.'s Chairman Receives No Objection on Change in Bank Control Act Notice From San Francisco Federal Reserve Bank

LOS ANGELES, CA--(Marketwire - October 20, 2009) - 1st Century Bancshares, Inc. (the "Company") (NASDAQ: FCTY), the holding company of 1st Century Bank, N.A. (the "Bank"), today announced the Federal Reserve Bank of San Francisco, under delegated authority, has issued a "no objection" to the Change in Bank Control Act Notice (the "Notice") filed by the Company's Chairman of the Board of Directors and Chief Executive Officer, Alan I. Rothenberg.

Mr. Rothenberg, one of the founders and current Chairman of the Board of Directors of the Bank, the Company's banking subsidiary, filed the Notice. When the total number of shares he and his family own are aggregated with the shares he has subject to option, the shares in his 401k plan, the shares in his defined benefit pension plans, and taking into consideration the number of shares he reasonably expects to acquire from time to time in the open market over the next twelve months, he will exceed the regulatory threshold necessitating a filing with the Federal Reserve System. Additionally, as a result of the Company's previously announced share repurchase program, the number of shares outstanding have been and will continue to be reduced.

In the Notice, Mr. Rothenberg requested no objection to his proposal to acquire up to an additional 2.13% (2.2% on a pro forma basis assuming the repurchase of all of the shares authorized to be repurchased under the Company's repurchase plan referenced above) of the outstanding shares of the Company's common stock. Mr. Rothenberg would own 11.5% (11.88% on a pro forma basis) in the aggregate assuming the acquisition of the entire 2.13% (2.2% on a pro forma basis) for which he received no objection from the Federal Reserve System. The no objection is effective for one year from the date of receipt.

About 1st Century Bancshares, Inc.

1st Century Bancshares, Inc. is a publicly owned company traded on the NASDAQ Capital Market under the symbol "FCTY". The Company's wholly owned subsidiary, 1st Century Bank, N.A., is a full service commercial bank headquartered in the Century City area of Los Angeles. The Bank'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. The Company maintains a website at www.1stcenturybank.com. By including the foregoing website address link, the Company does not intend to incorporate by reference any material contained therein.

Safe Harbor

Certain matters discussed in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can find many (but not all) of these forward-looking statements by looking for words such as "approximates," "believes," "expects," "anticipates," "estimates," "intends," "plans," "would," "may" or other similar expressions in this press release. These statements are based upon our current expectations and speak only as of the date hereof. Forward-looking statements are subject to certain risks and uncertainties that could cause our actual results, performance or achievements to differ materially and adversely from those expressed, suggested or implied herein. Accordingly, investors should use caution in relying on forward-looking statements to anticipate future results or trends. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, (2) a continuing decline in economic conditions, (3) increased competition among financial service providers, (4) government regulation; and (5) the other risks set forth in the Company's reports filed with the U.S. Securities and Exchange Commission. The Company does not undertake, and specifically disclaims, any obligation to revise or update any forward-looking statements for any reason.

Contact Information

  • Contact Information:

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

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