SOURCE: 1st Century Bancshares, Inc.

July 15, 2008 17:47 ET

1st Century Bancshares Sends Letter to Clients/Shareholders

1st Century Bank Remains Safe and Sound Amidst Current Economic Challenges

LOS ANGELES, CA--(Marketwire - July 15, 2008) - 1st Century Bancshares, Inc. (OTCBB: FCTY), the holding company of 1st Century Bank, N.A. (the "Bank"), mailed the following letter to all clients of the Bank and shareholders of 1st Century Bancshares:

Dear Client/Shareholder,

As a client/shareholder, we want to assure you of the safety and soundness of 1st Century Bank. Below are a few reasons why 1st Century Bank has and will continue to remain stable during this challenging economic time (financial information as of March 31, 2008):

--  We are more than well capitalized: Tier 1 risk-based capital ratio was
    27.38% which is significantly higher than the "well capitalized" level of
--  We have a manageable real estate portfolio: real estate loans totaled
    $70.5 million which was 40% of total gross loans compared to 74% for FDIC
    peer group banks with assets < $750 million.
--  We have no subprime mortgages.
--  We are adequately reserved:  allowance for loan losses ratio to total
    loans was 1.35% compared to 1.22% for FDIC peer group banks with assets <
    $750 million.
--  We did not own any Fannie Mae or Freddie Mac common or preferred

For more information, please view our May 29, 2008 Shareholder Presentation on our website at, Investor Relations, Presentations.

We continue to operate the Bank prudently and the welfare of our clients is always at the forefront of our minds.

Please don't hesitate to contact us directly if you have any questions. You can reach Alan Rothenberg at 310.270.9501 or Jason DiNapoli at 310.270.9505.

We deeply appreciate your continued support.


Alan I. Rothenberg                Jason P. DiNapoli
Chairman & CEO                    President & COO
1st Century Bancshares, Inc.      1st Century Bancshares, Inc.

About 1st Century Bancshares, Inc.

1st Century Bancshares, Inc. is the bank holding company of 1st Century Bank, N.A., 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. Additional information is available at

Safe Harbor

Certain matters discussed in this press release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements, include, but are not limited to, 1st Century Bancshares' ability to provide greater flexibility for capital planning and operational expansion, navigate the difficult banking environment, maintain strong loan loss reserves and remain well capitalized and implement operational enhancements. 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 U.S Securities and Exchange Commission. 1st Century 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