SOURCE: RMG Capital Corporation

November 08, 2007 16:38 ET

RMG Capital Corporation Announces 3Q Profit

FULLERTON, CA--(Marketwire - November 8, 2007) - RMG Capital Corporation, (OTCBB: RMGC), the holding company for Fullerton Community Bank, F.S.B. in Fullerton, California, announced third-quarter profits of $1.46 million bringing year-to-date net income to $3.56 million or $1.17 per share.

According to company spokesman, Richard Kusserow, total Bank assets grew to $690 million, an increase of 3.6% over the same period a year ago. The Bank reported Net Interest Income after Loss Provision of $17.2 million for the nine-months ending September 30, 2007, an increase of 4.71% as compared to the same period in 2006. The Bank's interest spread was 3.42% in the current quarter versus 3.50% in the corresponding quarter in 2006.

Non-Interest Income from banking operations increased $267,000 to $3.9 million between the quarter ended September 30, 2007 and 2006. Deposit related fees rose $112,000 or 13% and loan fees increased to $2.0 million or 14%, compared to one year ago.

Tom Meyer, Bank President, noted that despite declining real estate values and reported industry-wide problems with real estate secured loans, Fullerton Community Bank's non-performing loans as a percentage of total loans was only .10% at the end of the third-quarter. This is the result of long-term, quality loan underwriting and the avoidance of high-risk lending sectors that seek short term profits in lieu of sound underlying collateral. Meyer added that the Bank's construction and land loan portfolios are only 8% of total loans.

According to Chairman and CEO, C. W. Gregory, Fullerton Community Bank will continue to focus on a pattern of steady asset growth that will provide a solid return on its investments with a minimum of risk to its shareholders.

The statements contained in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about RMG Capital Corporation and its subsidiary Fullerton Community Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, the Company's actual results or performance may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to the general business environment, the California real estate market, competitive conditions in the business and geographic areas in which the Company conducts its business and regulatory actions or changes. The Company disclaims ay obligation to subsequently revise or update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

Contact Information

  • Contact:
    Richard O. Kusserow
    VP and Secretary
    RMG Capital Corporation
    (714) 578-7500