SOURCE: First California Financial Group, Inc.

First California Financial Group, Inc.

November 11, 2009 18:00 ET

First California Reports 2009 Third Quarter Financial Results

WESTLAKE VILLAGE, CA--(Marketwire - November 11, 2009) - First California Financial Group, Inc. (NASDAQ: FCAL), the holding company of First California Bank, today reported financial results for its third quarter and nine-month period ended September 30, 2009, reflecting a strengthened liquidity and balance sheet position.

"During the third quarter, prudent actions were taken to enhance First California's ability to capitalize on opportunities ahead when the economy improves and business activity increases," said C. G. Kum, President and Chief Executive Officer. "We continued to build up our liquidity position with the full expectation that this will translate to greater earning assets. We aggressively addressed problem credits, increasing our loan loss reserve and promptly realizing write-downs to non-accrual loans. To better align our operations in the weakened economy, we reduced our workforce by ten percent and closed one branch. We maintained a strong capital position and continue to focus on proactively managing our relationships. Despite the difficult economic environment and a nominal operating loss for the quarter, we are confident that these actions will produce results in 2010 and beyond."

2009 Third Quarter Financial Highlights:

--  Total deposits, exclusive of brokered deposits, increased by $51.3
    million in the third quarter and $374.4 million year-to-date as First
    California continues to increase its market share;
    
--  The bank remained well capitalized with a total risk-based capital
    ratio at 11.62% and the company's total risk-based capital ratio at 12.47%
    as of September 30, 2009;
    
--  Net interest income increased 10.1% to $11.4 million for the 2009
    third quarter from $10.3 million in the prior-year period;
    
--  The company reduced its risk exposure by shifting the composition of
    its securities portfolio to safer, shorter-term investments; posts $1.6
    million gain on sale of securities in Q3 2009;
    
--  The company reduced its operational expense structure with a reduction
    in workforce and closure of one branch;
    
--  Q3 provision for loan losses increased to $4.1 million, increasing the
    allowance for loan losses to 1.29% of total loans;
    
--  The company incurred a net loss of $136,000, compared with net income
    of $1.8 million for its 2008 third quarter.
    

Kum continued: "We are now seeing tangible benefits from our 1st Centennial transaction by way of a strong, stable and growing deposit base, as well as a high quality asset base. The significant core deposit growth from assumed and legacy branches is a strong testament to our ability to capitalize on valued customer relationships. At the same time, our customers' business operations are being adversely impacted by the difficult economic conditions and this is demonstrated by the increased levels of nonperforming assets. Nevertheless, we believe our strong liquidity, balance sheet and capital position equips us well to navigate the challenging economy and play a major role in Southern California banking when the economy improves."

Asset Quality

Nonaccrual loans at September 30, 2009 totaled $39.3 million, compared with $27.0 million as of June 30, 2009. The change largely reflects the addition of two relationships that previously had not been delinquent but were heavily impacted by the downturn in the real estate sector. One relationship, which includes two loans with a total balance of $7.4 million before charge offs of $3.1 million, abruptly discontinued operations during the 2009 third quarter. The second relationship includes two single family residential construction loans to a developer for which construction has been completed. Both loans aggregating $7.6 million were placed on nonaccrual status.

The company's residential 1-4 construction portfolio now includes only six projects and is down to $24.7 million, due primarily to the successful efforts to reduce this portfolio. The residential 5+ construction portfolio is down to three projects with a balance of $11.2 million. The land portfolio has been reduced to $18.3 million. The two largest categories of First California's loan portfolio, commercial real estate and commercial loans, continue to perform well, and the company is not experiencing widespread problems in these portfolios.

Nonaccrual loans and loans past due 90 days and accruing amounted to $42.3 million as of September 30, 2009, compared with $27.3 million as of June 30, 2009. These non-performing loans represented 4.5% of total loans at September 30, 2009, compared with 2.9% at the close of the preceding second quarter. Total foreclosed property at the close of the 2009 third quarter decreased to $6.1 million from $6.8 million at June 30, 2009 and consists of two properties.

"In this challenging credit environment, we aggressively addressed our nonperforming relationships, promptly realizing charge-offs and establishing additional reserves where necessary," Kum said. "We remain confident that our conservative underwriting and proactive administration of our portfolio will produce positive results during the remainder of this economic downturn."

Net loan charge-offs totaled $3.9 million for the 2009 third quarter, including charge offs of $3.1 million for the one above-mentioned relationship. The company's 2009 third quarter provision for loan losses of $4.1 million exceeded net charge-offs and increased the allowance for loan losses as a percentage of total loans to 1.29% at September 30, 2009 from 1.27% at June 30, 2009.

Results of Operations

Net interest income before provision for loan losses increased 10.1% to $11.4 million for the 2009 third quarter from $10.3 million in the prior-year period. The selective expansion of the company's loan portfolio as part of the 1st Centennial transaction in February 2009 contributed to increased levels of interest income on loans in the 2009 third quarter, versus the prior-year period. In addition, the stability of core deposits assumed in the transaction, along with new and expanded deposit relationships, enabled First California to continue reducing its borrowings, resulting in lower levels of interest expense in the 2009 third quarter compared with a year ago.

Net interest margin for the 2009 third quarter was 3.50%, down 25 basis points from the immediately preceding quarter. In addition to lost interest income of $676,000 from loans in nonaccrual status, the company attributed the sequential decline in net interest margin to a shift in the composition of its securities portfolio. This shift to safer, shorter-term investments reduces the overall risk exposure of the company's securities portfolio, but yields lower interest income. Compared with the third quarter a year ago, net interest margin declined by 67 basis points due to significant reductions in the prime rate versus a year ago, as well as the adverse impact from higher levels of nonaccrual loans, a higher percentage of earning assets in lower-yielding federal funds sold and a shift in the composition of the company's securities portfolio. These were partially offset by a continued reduction in the cost of interest-bearing liabilities, which equaled 1.93% for the 2009 third quarter, compared with 2.09% for the preceding quarter and 2.65% in the a year-ago period.

Noninterest income for the 2009 third quarter increased nearly three fold to $2.9 million from $1.0 million in the prior-year period. The increase is attributed to a $1.6 million net gain on sale of securities posted in the 2009 third quarter and a $382,000 increase in deposit-related service charges as a benefit from an expanded deposit customer base.

Noninterest expense for the 2009 third quarter totaled $11.3 million, reflecting a 38.0% increase over $8.2 million in the third quarter a year ago. The increase largely reflects an expanded franchise from the 1st Centennial transaction, increased FDIC insurance rates on higher deposit balances, industry-wide special insurance assessments and higher expenses associated with other real estate owned. However, when compared with the preceding second quarter, noninterest expense was down 12.3%. During the 2009 third quarter, the company reduced its workforce by approximately 10%, incurring $235,000 in separation costs, and closed one branch. First California said this down sizing better aligns the organization with current business activity levels and is expected to result in an annualized savings exceeding $2.0 million. The company's 2009 third quarter efficiency ratio was 85.73%, compared with 98.60% for the preceding second quarter and 69.72% for the year-ago third quarter.

The company incurred a net loss for the 2009 third quarter of $136,000, equal to $0.04 per common share, after a dividend payment of $312,500 to the U.S. Treasury Department. This compares with net income of $1.8 million, or $0.15 per common diluted share, posted in the 2008 third quarter. Year-to-date, the company incurred a net loss of $1.8 million, equal to $0.23 per common share, after dividend payments of $819,000. This compares with net income of $5.2 million, or $0.45 per common diluted share, recorded in the 2008 nine-month period.

Loans at September 30, 2009 totaled $940.9 million, up 19.4% from $787.9 million at year-end 2008, principally reflecting the selective addition of 1st Centennial loans and the reclassification of loans held-for-sale to the loan portfolio. Deposits as of September 30, 2009 totaled $1.13 billion, compared with $817.6 million as of December 31, 2008. The sharp increase is predominantly attributed to the addition and retention of approximately $270 million in non-brokered deposits from the 1st Centennial Bank transaction. In addition, the company noted an increase in deposit relationships attributed to continued increases in core deposits. Total assets at September 30, 2009 equaled $1.47 billion, compared with $1.18 billion at December 31, 2008.

Liquidity and Capital Resources

Core deposits continue to be First California's primary source of funds and increased to $802.0 million as of September 30, 2009 from $746.8 million as of June 30, 2009. The company also has access to alternate funding sources that are available typically at a lower cost than current market prices on time deposits. Accordingly, First California continued to utilize strategic levels of brokered deposits, FHLB borrowings and State of California time deposits during the third quarter. With the company's strong liquidity position and the growth in deposit relationships, First California continued to reduce its brokered deposits to $48.0 million at September 30, 2009 from $115.0 million at December 31, 2008. Deposits, excluding brokered deposits and the initial impact of the 1st Centennial transaction, increased $104.4 million year-to-date. The shift in the mix of funding liabilities and the repricing of liabilities to current market rates during the quarter effectively lowered the cost of interest-bearing deposits to 1.43% for the third quarter of 2009 from 1.61% for the preceding second quarter.

At September 30, 2009, First California had available total unsecured Federal Funds facilities with other financial institutions of $27.0 million. In addition, the company has a $13.4 million secured borrowing facility with the Federal Reserve Bank of San Francisco. Also, the unused and available borrowing capacity on the company's secured FHLB borrowing facility was in excess of $156.0 million at September 30, 2009.

At September 30, 2009, First California had ample liquidity with $61.4 million of Federal Funds sold and $302.4 million of securities. The securities portfolio is comprised mainly of Agency Notes, Treasury Bills, municipal and mortgage-related securities. During the 2009 third quarter, the company shifted the composition of its securities portfolio to include more lower-risk, shorter-term investments, and sold a portion of its U.S. government agency mortgage-backed securities and U.S. government agency and private-label collateralized mortgage obligations, aggregating $47.8 million, and posted a net gain on sale of securities of $1.6 million. First California said the restructuring of the securities portfolio reduced risk, shortened the duration of the portfolio and increased the liquidity of the portfolio, enhancing its ability to increase interest-earning assets in future periods.

Total shareholders' equity rose to $161.1 million at September 30, 2009 from $158.9 million at December 31, 2008. The company's net book value per common share was $11.78 at September 30, 2009, compared with $11.65 at year-end 2008. These increases are primarily due to the decrease in the unrealized loss on our available-for-sale securities portfolio in the year-to-date period. Tangible book value per common share was $5.53 at September 30, 2009, compared with $6.54 at December 31, 2008. The decline is attributed to a higher number of outstanding common shares versus the year-end count and an increase in intangible assets as a result of the 1st Centennial transaction.

First California's total risk-based and leverage capital ratios at September 30, 2009 were 12.47% and 8.81%, respectively. First California's tangible common equity as a percentage of tangible assets declined to 4.60% as of September 30, 2009 from 6.67% as of year-end 2008, primarily due to the increase in intangible assets as a result of the 1st Centennial transaction.

Kum concluded: "We continue to effect appropriate actions that we believe strengthen our ability to endure the challenging landscape and better position First California for accelerated growth when the economy eventually rebounds. With a deep bench of experienced bankers, we look forward to enhancing the value of the First California franchise for our customer, employee and shareholder base."

Use of Non-GAAP Financial Measures

This news release includes "non-GAAP financial measures" within the meaning of the Securities and Exchange Commission rules. Tangible common equity as a percentage of tangible assets is non-GAAP financial measure. Tangible common equity to tangible assets represents tangible common equity, calculated as total shareholders' equity less preferred stock and related dividend and accretion of preferred stock discount, goodwill and intangible assets, net, divided by total assets less goodwill and other intangible assets, net. Management believes that this measure is useful when comparing banks with preferred stock due to TARP funding to banks without preferred stock on their balance sheet and for evaluating a company's capital levels. This information is being provided in response to market participant interest in this financial metric. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. GAAP. The reconciliation of this non-GAAP financial measure to GAAP financial measure is provided as an attachment to the financial tables.

Conference Call and Webcast

First California will hold a conference call on Thursday, November 12, 2009 at 9 a.m. Pacific (12 noon Eastern) to discuss the company's third quarter financial performance. Shareowners, members of the media and other interested parties may participate in the call by dialing 800-860-2442 (domestic), 866-605-3852 (Canada) or 412-858-4600 (international) and request the First California conference call. This call is being webcast and can be accessed at www.fcalgroup.com where it will be archived for one year. An audio replay of the conference call is available through November 20, 2009 by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering replay passcode 435661.

About First California

First California Financial Group, Inc. (NASDAQ: FCAL) is the holding company of First California Bank. Celebrating 30 years of business in 2009, First California is a regional force of strength and stability in Southern California banking with assets of $1.47 billion and led by an experienced team of bankers. The company specializes in serving the comprehensive financial needs of the commercial market, particularly small- and middle-sized businesses, professional firms and commercial real estate development and construction companies. Committed to providing the best client service available in its markets, First California offers a full line of quality commercial banking products through 17 full-service branch offices in Los Angeles, Orange, Riverside, San Bernardino, San Diego and Ventura counties. The holding company's Web site can be accessed at www.fcalgroup.com. For additional information on First California Bank's products and services, visit www.fcbank.com.

Forward-Looking Information

This press release contains certain forward-looking information about First California that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the maintenance of First California's asset quality and capital position, the successful integration of the 1st Centennial Bank acquisition, the company's ability to enhance efficiencies and manage costs and the expected continued progress in consolidating operations and the benefits of those activities, the monitoring of and management of risks in First California's loan portfolio, the adequacy of sources of liquidity to support First California's operations and strategic plans, the monitoring of and response to changing market conditions, and the status of the economy in the Southern California communities served by First California. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of First California. First California cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues are lower than expected, credit quality deterioration which could cause an increase in the provision for credit losses, First California's ability to complete future acquisitions, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all, changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which First California does or anticipates doing business are less favorable than expected, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of First California to retain customers, demographic changes, demand for the products or services of First California, as well as their ability to attract and retain qualified people, competition with other banks and financial institutions, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, First California's results could differ materially from those expressed in, or implied or projected by such forward-looking statements. First California assumes no obligation to update such forward-looking statements. For a more complete discussion of risks and uncertainties, investors and security holders are urged to read the section titled "Risk Factors" in First California's Annual Report on Form 10-K and any other reports filed by it with the Securities and Exchange Commission ("SEC"). The documents filed by First California with the SEC may be obtained at the SEC's website at www.sec.gov. These documents may also be obtained free of charge from First California by directing a request to: First California Financial Group, Inc., 3027 Townsgate Road, Suite 300, Westlake Village, CA 91361. Attention: Investor Relations. Telephone (805) 322-9655.

(Financial Tables Follow)





                     First California Financial Group
                  Unaudited Quarterly Financial Results

(in thousands except for
 share data and ratios)
As of or for the
 quarter ended  30-Sep-09   30-Jun-09   31-Mar-09   31-Dec-08   30-Sep-08
                ----------  ----------  ----------  ----------  ----------
Income statement
 summary
Net interest
 income         $   11,396  $   11,897  $   10,670  $    9,836  $   10,348
Service charges,
 fees & other income 1,269       1,260       1,235       1,146       1,043
Loan commissions &
 sales                  22          44           9          69         143
Operating expenses  10,684      10,826      10,401       9,370       8,041
Provision for
 loan losses         4,117       1,110       5,069         200         300
Foreclosed property
 loss & expense        193         249           -          28           -
Amortization of
 intangible assets     417         417         376         298         298
Gain (loss) on
 securities
 transactions        1,639       2,000         671          (9)        (13)
Impairment loss
 on securities           -         565           -           -           -
Market loss on loans
 held-for-sale           -         709           -           -           -
FDIC special
 assessment              -         675           -           -           -
Gain (loss) on
 derivatives             -           -           -         186          (1)
                ----------  ----------  ----------  ----------  ----------
Income (loss)
 before tax         (1,085)        650      (3,261)      1,332       2,881
Tax expense
 (benefit)            (949)        433      (1,383)        200       1,120
                ----------  ----------  ----------  ----------  ----------
Net income
 (loss)         $     (136) $      217  $   (1,878) $    1,132  $    1,761
                ==========  ==========  ==========  ==========  ==========

Balance sheet data
Total assets    $1,469,628  $1,448,456  $1,458,841  $1,183,401  $1,125,294
Shareholders'
 equity            161,058     159,116     158,181     158,923     136,680
Common shareholders'
 equity            137,002     135,174     134,355     133,553     135,680
Earning assets   1,304,625   1,282,497   1,285,060   1,057,198     994,212
  Loans            940,852     940,209     897,723     787,920     783,496
  Loans - held for
   sale                  -           -      31,309      31,401           -
  Securities       302,378     245,858     271,743     202,462     209,736
  Federal funds
   sold & other     61,395      96,430      84,285      35,415         980
Interest-bearing
 funds           1,002,776     987,048   1,005,012     822,285     784,452
  Interest-bearing
   deposits        827,036     804,071     815,799     628,584     563,244
  Borrowings       149,000     156,250     162,500     167,000     194,520
  Junior
   subordinated
   debt             26,740      26,727      26,713      26,701      26,688
Goodwill and
 other intangibles  72,717      73,134      73,545      58,551      58,848
Deposits         1,125,031   1,096,679   1,103,578     817,595     757,765

Asset quality
 data & ratios
Loans past due
 30 to 89 days
 & accruing     $    7,314  $    8,203  $    6,395  $    2,644  $    6,560
Loans past due
 90 days &
 accruing            2,970         299          65         429         947
Nonaccruing
 loans              39,330      26,957       8,380       8,475       8,636
                ----------  ----------  ----------  ----------  ----------
Total past due
 & nonaccrual
 loans          $   49,614  $   35,459  $   14,840  $   11,548  $   16,143
                ==========  ==========  ==========  ==========  ==========

Repossessed
 personal
 property       $        -  $       61  $       76  $      107  $      154
Other real
 estate owned        6,120       6,767         993         220         120
                ----------  ----------  ----------  ----------  ----------
Total
 foreclosed
 property       $    6,120  $    6,828  $    1,069  $      327  $      274
                ==========  ==========  ==========  ==========  ==========

Net loan
 charge-offs    $    3,935  $      430  $    1,842  $      151  $      194
Allowance for
 loan losses    $   12,137  $   11,955  $   11,275  $    8,048  $    7,999
Allowance for
 loan losses to
 loans                1.29%       1.27%       1.26%       1.02%       1.02%

Common shareholder
 data
Basic earnings
 (loss) per
 common share   $    (0.04) $    (0.01) $    (0.18) $     0.10  $     0.15
Diluted
 earnings
 (loss) per
 common share   $    (0.04) $    (0.01) $    (0.18) $     0.10  $     0.15
Book value per
 common share   $    11.78  $    11.62  $    11.55  $    11.65  $    11.84
Tangible book
 value per
 common share   $     5.53  $     5.33  $     5.23  $     6.69  $     6.71
Shares
 outstanding    11,626,213  11,633,289  11,633,289  11,462,964  11,456,464
Basic weighted
 average shares 11,630,928  11,633,289  11,527,629  11,436,152  11,466,375
Diluted
 weighted
 average shares 11,979,165  11,976,738  11,813,629  11,727,614  11,744,823

Selected ratios
Return on
 average assets      -0.04%       0.06%      -0.55%       0.39%       0.63%
Return on
 average equity      -0.34%       0.54%      -4.76%       3.22%       5.14%
Equity to
 assets              10.96%      10.99%      10.84%      13.43%      12.15%
Tangible equity
 to tangible
 assets               6.32%       6.25%       6.11%       8.92%       7.29%
Tangible common
 equity to tangible
 assets               4.60%       4.51%       4.39%       6.82%       7.20%
Efficiency
 ratio               85.73%      98.60%      87.30%      83.63%      69.72%
Net interest
 margin (tax
 equivalent)          3.50%       3.75%       3.60%       3.90%       4.17%
Total
 risk-based
 capital ratio:
  First California
   Bank              11.62%      11.54%      11.56%      12.27%      12.89%
  First California
   Financial
   Group, Inc.       12.47%      12.48%      12.73%      16.62%      14.01%




                     First California Financial Group
                  Unaudited Quarterly Financial Results


                                    Three months ended  Nine months ended
                                        Sept. 30,           Sept. 30,
                                    ------------------  ------------------
                                      2009      2008      2009      2008
                                    --------  --------  --------  ---------
(in thousands, except per share
  data)
Interest income:
    Interest and fees on loans      $ 13,331  $ 12,674  $ 39,144  $  39,391
    Interest on securities             2,819     2,870     9,847      8,827
    Interest on federal funds sold
     and interest bearing deposits        78         4       368         18
                                    --------  --------  --------  ---------
         Total interest income        16,228    15,548    49,359     48,236
                                    --------  --------  --------  ---------
Interest expense:
    Interest on deposits               2,938     2,960     9,519     10,375
    Interest on borrowings             1,455     1,801     4,512      5,599
    Interest on junior subordinated
     debentures                          439       439     1,365      1,316
                                    --------  --------  --------  ---------
         Total interest expense        4,832     5,200    15,396     17,290
                                    --------  --------  --------  ---------
         Net interest income before
          provision for loan losses   11,396    10,348    33,963     30,946
Provision for loan losses              4,117       300    10,296        950
                                    --------  --------  --------  ---------
         Net interest income after
          provision for loan losses    7,279    10,048    23,667     29,996
                                    --------  --------  --------  ---------
Noninterest income:
    Service charges on deposit
     accounts                          1,111       729     3,199      1,885
    Loan sales and commissions            22       143        76        382
    Net gain on sale of securities     1,639         -     4,310          -
    Impairment loss on securities          -         -      (565)         -
    Net gain (loss) on derivatives         -        (1)        -        857
    Other income                         158       146       565        865
                                    --------  --------  --------  ---------
         Total noninterest income      2,930     1,017     7,585      3,989
                                    --------  --------  --------  ---------
Noninterest expense:
    Salaries and employee benefits     5,011     4,076    16,032     13,423
    Premises and equipment             1,558     1,117     4,871      3,322
    Data processing                      862       293     1,812      1,008
    Legal, audit and other
     professional services               541       530     1,758      1,386
    Printing, stationary and
     supplies                            197       160       600        492
    Telephone                            237       203       764        540
    Directors' fees                      142       112       398        322
    Advertising, marketing and
     business development                245       286     1,144        939
    Postage                               39        36       190        151
    Insurance and assessments            849       364     2,504        932
    Loss on and expense of
     foreclosed property                 193         -       442          -
    Amortization of intangible
     assets                              417       298     1,210        893
    Market loss on loans
     held-for-sale                         -         -       709          -
    Other expenses                     1,003       709     2,513      2,001
                                    --------  --------  --------  ---------
         Total noninterest expense    11,294     8,184    34,947     25,409
                                    --------  --------  --------  ---------
Income (loss) before provision for
 income taxes                         (1,085)    2,881    (3,695)     8,576
Provision (benefit) for income
 taxes                                  (949)    1,120    (1,898)     3,342
                                    --------  --------  --------  ---------
    Net income (loss)               $   (136) $  1,761  $ (1,797) $   5,234
                                    ========  ========  ========  =========

Earnings (loss) per common share:
      Basic                         $  (0.04) $   0.15  $  (0.23) $    0.46
      Diluted                       $  (0.04) $   0.15  $  (0.23) $    0.45



                     First California Financial Group
                  Unaudited Quarterly Financial Results

                                                September 30,  December 31,
(in thousands)                                       2009          2008
                                                ------------- -------------
 Cash and due from banks                        $      42,753 $      13,712
 Federal funds sold                                    61,395        35,415
 Securities available-for-sale, at fair value         302,378       202,462
 Loans held for sale                                        -        31,401
 Loans, net                                           928,714       780,373
 Premises and equipment, net                           20,702        20,693
 Goodwill                                              60,720        50,098
 Other intangibles, net                                11,997         8,452
 Deferred tax assets, net                                 514         2,572
 Cash surrender value of life insurance                11,682        11,355
 Foreclosed property                                    6,120           327
 Accrued interest receivable and other assets          22,653        21,185
                                                ------------- -------------

 Total assets                                   $   1,469,628 $   1,178,045
                                                ============= =============


 Non-interest checking                          $     297,995 $     189,011
 Interest checking                                     83,717        22,577
 Money market and savings                             320,816       198,606
 Certificates of deposit, under $100,000              140,046       191,888
 Certificates of deposit, $100,000 and over           282,457       215,513
                                                ------------- -------------
    Total deposits                                  1,125,031       817,595

 Securities sold under agreements to repurchase        45,000        45,000
 Federal Home Loan Bank advances                      104,000       122,000
 Junior subordinated debentures                        26,740        26,701
 Accrued interest payable and other liabilities         7,799         7,826
                                                ------------- -------------

    Total liabilities                               1,308,570     1,019,122

    Total shareholders' equity                        161,058       158,923
                                                ------------- -------------

 Total liabilities and shareholders' equity     $   1,469,628 $   1,178,045
                                                ============= =============


FIRST CALIFORNIA FINANCIAL GROUP
RECONCILIATION OF GAAP FINANCIAL MEASURES TO NON - GAAP FINANCIAL MEASURES
(unaudited)


(in thousands except for share data and ratios)    9/30/2009   12/31/2008
                                                  -----------  -----------
Total shareholders' equity                        $   161,058  $   158,923
Less: Goodwill and intangible assets                  (72,717)     (58,551)
                                                  -----------  -----------
Tangible equity                                        88,341      100,372
Less: Preferred stock                                 (24,056)     (23,713)
                                                  -----------  -----------
Tangible common equity                                 64,285       76,659
                                                  ===========  ===========

Total assets                                      $ 1,469,628  $ 1,183,401
Less: Goodwill and intangible assets                  (72,717)     (58,551)
                                                  -----------  -----------
Tangible assets                                     1,396,911    1,124,850
                                                  ===========  ===========

Common shares outstanding                          11,626,213   11,462,964

Tangible equity to tangible assets                       6.32%        8.92%
Tangible common equity to tangible assets                4.60%        6.82%
Tangible book value per common share              $      5.53  $      6.69

Contact Information

  • At the Company:
    Ron Santarosa
    805-322-9333

    At PondelWilkinson:
    Angie Yang
    310-279-5980

    Corporate Headquarters Address:
    3027 Townsgate Road, Suite 300
    Westlake Village, CA 91361