SOURCE: 1st Century Bank

March 20, 2007 11:58 ET

1st Century Bank, N.A. Announces Positive Results for the Year Ended December 31, 2006 -- The Bank Reports Continued Deposit and Loan Growth as Well as Positive Net Income for the Year

LOS ANGELES, CA -- (MARKET WIRE) -- March 20, 2007 -- 1st Century Bank, N.A. ("1st Century") (OTCBB: FCNA) today announced financial results for the fourth quarter and year ended December 31, 2006. 1st Century posted its first profitable year of operations and experienced strong growth in assets, loans and deposits for the year 2006.

1st Century's total assets grew to $200.8 million, representing a 24.2% increase over year end 2005, and a 13.2% increase from the end of the third quarter. Total loans outstanding increased to $128.1 million, a 48.3% increase over year end 2005, and a 7.8% increase over the total at the end of the third quarter. Total deposits grew 35.5% for the year to $145.1 million, which was a 29.0% increase over the total at the end of the third quarter and non-interest bearing deposits grew to $29.9 million representing 20.6% of total deposits.

1st Century reported net income of $145,079 for the year ended December 31, 2006, marking the first profitable year in 1st Century's history. 1st Century's net loss for the year ended December 31, 2005 was $2.2 million.

1st Century reported a net loss of $590,685 in the fourth quarter of 2006, largely based on costs incurred for 1st Century's first compliance certification under Section 404 of the Sarbanes-Oxley Act of 2002, relocation of loan personnel, and costs incurred in transitioning to a new management team. "The Bank has committed capital to developing the internal and financial controls infrastructure required for a public company and a new management team," reported Chairman and CEO Alan Rothenberg. "We believe we are well-positioned for continued growth in 2007, led by an energetic new management team."

Fourth quarter results were also negatively impacted by a decrease in net interest margin. Net interest margin for the fourth quarter was 4.76%, which represents a 68 basis point contraction compared with the third quarter of 2006. Net interest margin for the year ended December 31, 2006 was 4.98%, which represents an 86 basis point increase compared with the year ended December 31, 2005. For the year ended December 31, 2006, net interest income grew to $8.72 million, a 78.3% increase over the $4.89 million in net interest income from the prior year.

"Notwithstanding the challenges faced by many institutions in the current deposit gathering environment, 1st Century is pleased with its continued asset growth," noted President and COO Jason DiNapoli. "Our vision is to grow the Bank in our deposit rich market of Los Angeles, and with the investment necessary to build the foundation behind us, we are excited about the Bank's prospects in 2007."

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