SOURCE: First California Financial Group

First California Financial Group

April 28, 2011 08:00 ET

First California Posts 2011 First Quarter Net Income of $15.6 Million

Company to Host Conference Call Today at 11 a.m. Pacific Time

WESTLAKE VILLAGE, CA--(Marketwire - Apr 28, 2011) - First California Financial Group, Inc. (NASDAQ: FCAL), the holding company of First California Bank, today reported first quarter net income of $15.6 million up significantly from $117,000 for the same period a year ago. Net income available to common shareholders was $15.3 million or $0.54 per diluted share compared to a net loss available to common shareholders of $196,000 or $0.02 per share for the 2010 first quarter. Preferred dividends were $312,500 for both the first quarter of 2011 and 2010. The 2011 first quarter results include a $34.7 million pre-tax gain related to the FDIC-assisted acquisition of San Luis Trust Bank.

"We are very pleased with the San Luis Trust Bank acquisition as it enabled us to enter a complementary Central Coast market on financial terms that will provide attractive returns to our shareholders on a short and longer term basis," said C. G. Kum, president and chief executive officer of First California Financial Group. "Moreover, the transaction fits our strategy of sound capital management as we were able to increase our tangible book value to $4.21 per share at the end of the first quarter from $3.65 per share at year end, while maintaining a stable tangible common equity to tangible assets ratio of 6.75%."

2011 First Quarter Financial Highlights

--  Net income was $15.6 million compared with $117,000 for the same period
    a year ago;

--  Diluted earnings per common share was $0.54 versus loss per common
    share of $0.02 for the 2010 first quarter;

--  Pre-tax gain of $34.7 million recorded in connection with FDIC-assisted
    acquisition of San Luis Trust Bank; associated integration/conversion
    expense of $515,000;

--  Allowance to non-covered loans at the end of the 2011 first quarter of
    1.98 percent, up from 1.80 percent at year-end 2010; net loan
    charge-offs of $867,000, down from $2.7 million for the same period
    last year;

--  Other-than-temporary impairment charges of $1.1 million;

--  Foreclosed property valuation allowance charges of $5.1 million;

--  Net interest income for the 2011 first quarter was $12.8 million, up
    20% from the same period a year ago;

--  Loans up 22% from a year ago to end the 2011 first quarter at
    $1.1 billion;

--  Deposits up 31% from a year ago to end the 2011 first quarter at
    $1.4 billion;

--  Tangible book value per common share up 18% from a year ago to end the
    first quarter at $4.21.

FDIC-Assisted San Luis Trust Bank Acquisition

First California Bank assumed all the deposits and acquired substantially all of the assets of San Luis Trust Bank on February 18, 2011 from the Federal Deposit Insurance Corporation (FDIC) acting in its capacity as receiver of San Luis Trust Bank (SLTB), a single branch community bank located in San Luis Obispo, California.

As part of the transaction, First California assumed $221 million of loans, $19 million of foreclosed property and $105 million of cash and securities, as well as $265 million in deposits and $61 million in Federal Home Loan Bank advances. These amounts represent the SLTB book value and do not reflect fair value. All of the loans purchased from the FDIC are covered under loss-sharing agreements that afford First California Bank significant protection from future losses incurred on the loans and foreclosed property purchased (covered assets). Under the loss-sharing agreement, the FDIC is obligated to reimburse First California for 80 percent of losses on covered assets; First California will reimburse the FDIC for 80 percent of recoveries on covered assets to the extent the FDIC reimbursed the company under the loss-sharing agreement.

At March 31, 2011, the unpaid principal balance of the covered loans was $215.9 million, while the carrying amount was $134.6 million, and the fair value of the covered foreclosed property was $10.9 million.

Of the deposits assumed, $174 million were from depositors outside the SLTB footprint. As such, First California does not consider these as core deposits. At March 31, 2011, these deposits declined to $150 million. First California intends to allow these deposits to run-off based on their scheduled maturities -- $130 million in the 2011 second quarter and $19 million in the 2011 third quarter -- such that few of these deposits will be outstanding at year end. Similarly, the $61 million of assumed Federal Home Loan Bank advances will decline to $14 million at year-end 2011 based on scheduled maturities.

Asset Quality

Non-covered nonaccrual loans increased to $20.9 million at March 31, 2011 from $18.2 million at December 31, 2010. The increase primarily reflects late cycle deterioration of smaller business credits that averaged approximately half a million dollars in size. Non-covered loans past due 30 to 89 days decreased to $2.4 million at March 31, 2011 from $11.6 million at December 31, 2010, primarily due to resolution of an $8.3 million construction loan for a high-end residence in Beverly Hills.

Non-covered foreclosed property at the end of the 2011 first quarter declined to $20.9 million from $26.0 million at December 31, 2010. The reduction was mainly from an increase in valuation allowances for the two large foreclosed properties in the company's portfolio.

At March 31, 2011, the company had $182.8 of covered loans, of which $68.5 million were classified as non-accrual, and $11.1 million of covered foreclosed property. The unpaid principal balance of the covered loans at March 31, 2011 was $277.9 million.

The allowance for loan losses was $18.7 million, or 1.98% of non-covered loans, at the end of the 2011 first quarter compared with $17.0 million, or 1.80% of non-covered loans, at the end of the 2010 fourth quarter. Net loan charge-offs for the 2011 first quarter were $867,000 or 0.37 percent (annualized) of average non-covered loans. The provision for loan losses for the 2011 first quarter was $2.5 million.

Kum added, "We are encouraged by the improving asset quality trend as reflected in lower past due loans, net charge-offs and non-performing assets. However, as the extended recession and the stagnant real estate market continue to manifest weaknesses in small business loans and lower real estate valuations, we have taken steps to protect our capital by strengthening our loan loss and foreclosed properties allowances."

Financial Results

For the 2011 first quarter, net interest income before the provision for loan losses, increased 20 percent to $12.8 million from $10.7 million for the 2010 first quarter. Net interest margin (on a taxable equivalent basis) rose to 3.52 percent from 3.39 percent for the 2010 first quarter. The increase in the net interest income and net interest margin principally reflects the decline in cost of interest-bearing liabilities and the increase in the level of interest-earning assets.

Service charges, fees and other income increased 15 percent to $1.2 million from $1.1 million for the 2010 first quarter.

Noninterest income for the 2011 first quarter included a $1.1 million charge for other-than-temporary impairment, due to the increase in delinquencies and loss severity in two of First California's three private-label Collateralized Mortgage Obligations. At March 31, 2011, the current par value of these securities was $20.6 million, their carrying value was $18.4 million and their fair value was $14.5 million.

Operating expenses for the 2011 first quarter were $12.1 million compared with $9.4 million for the 2010 first quarter. Operating expenses exclude intangible amortization, integration/conversion expenses and foreclosed property gains, losses and expenses. The increase reflects growth in the Company's workforce associated with the acquisitions of Western Commercial Bank and San Luis Trust Bank, as well as the addition of three lending teams. Employees at March 31, 2011 numbered 260 compared with 250 at the end of the same period a year ago. In addition, professional expenses were higher due to ongoing collection and resolution efforts.

At March 31, 2011, loans increased to $1.125 billion from $1.001 billion at December 31, 2010. The increase includes $134.6 million of loans acquired from San Luis Trust Bank.

Deposits as of March 31, 2011 increased to $1.412 billion from $1.156 billion at December 31, 2011. The increase includes $235.5 million of deposits assumed from San Luis Trust Bank.

Capital resources

Shareholders' equity was $214.1 million at the close of the 2011 first quarter compared with $198.0 million at December 31, 2010. The company's book value per common share was $6.71 at March 31, 2011 compared with $6.16 at December 31, 2010. Tangible book value per common share was $4.21 at March 31, 2011 compared with $3.65 at December 31, 2010.

At March 31, 2011, First California's preliminary total risk-based and leverage capital ratios were 18.20 percent and 10.58 percent, respectively. At the end of the 2010 fourth quarter, the total risk-based capital ratio was 16.78 percent and the leverage capital ratio was 11.00 percent. The company's ratio of tangible common equity to tangible assets was 6.75 percent at quarter end and 7.08 percent at the end of the 2010 fourth quarter. Total assets were $1.83 billion at March 31, 2011 compared with $1.52 billion at December 31, 2010.

Kum concluded: "We are pleased with our 2011 first quarter performance, which in addition to underscoring the company's core earnings power, extended and strengthened the franchise. As the year unfolds, we look to continue improving our results."

Electronic Payments Services Transaction

On April 8, 2011, the Bank completed the acquisition of the Electronic Banking Solutions division of Palm Desert National Bank. The transaction included the division's customer base, core deposits, and employees. At December 31, 2010, the division had deposits of approximately $74 million and revenues for 2010 were $3.3 million. At the closing date, deposits were approximately $91 million. The Electronic Payment Services division, its new name under First California Bank, is a leader in the electronic payment industry with a history of successful stored-value card programs and merchant acquiring programs. First California Bank will issue prepaid cards and sponsor merchant acquiring services for all national and regional networks, including Visa, MasterCard, and Discover throughout all 50 states and US territories.

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 a 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. Operating expenses exclude amortization of intangible assets and loss on and expense of foreclosed property and non-recurring items such as integration/conversion expenses related to acquisitions and is intended to represent normalized, recurring expenses. This information is being provided in response to market participant interest in these financial metrics. 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 today, April 28, 2011 at 11 a.m. Pacific (2 p.m. Eastern) to discuss the company's 2011 first quarter financial performance. Investment professionals are invited to participate in the live call by dialing 877-317-6789 (domestic), or 412-317-6789 (international) and requesting the First California conference call. Other interested parties are invited to listen to the live call through a live, listen-only audio Internet broadcast at www.fcalgroup.com. Listeners are encouraged to visit the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, the call will be archived on the same Web site for one year. A telephonic replay of the call will be available one hour after the end of the conference through May 12, 2011 by dialing 877-344-7529 (domestic), or 412-317-0088 (international) and entering replay passcode 450519.

About First California

First California Financial Group, Inc. (NASDAQ: FCAL) is the holding company of First California Bank. Celebrating 32 years of business in 2011, First California is a regional force of strength and stability in Southern California banking with assets of $1.9 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 19 full-service branch offices in Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo 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 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, changes in the bank regulatory environment, 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          31-Mar-11   31-Dec-10   30-Sep-10   30-Jun-10   31-Mar-10
                ----------  ----------  ----------  ----------  ----------

Income statement
 summary
Net interest
 income         $   12,779  $   12,108  $   11,107  $   10,806  $   10,673
Service
 charges, fees
 & other income      1,239       1,199       1,116       1,133       1,079
Operating
 expenses           12,130       9,383       9,083       9,866       9,422
Provision for
 loan losses         2,500       1,199       3,618       1,766       1,754
Foreclosed
 property
 (gain)/loss &
 expense             5,252       2,224         185        (223)         78
Amortization of
 intangible
 assets                416         416         416         417         416
Gain on
 securities
 transactions            -         548       1,204         130         132
Integration/
 conversion
 expense               515         430           -           -           -
Gain on
 acquisition        34,736       2,312           -           -           -
Impairment loss
 on securities       1,066         708          23           -          18
                ----------  ----------  ----------  ----------  ----------
Income before
 tax                26,875       1,807         102         243         196
Tax expense         11,287         727          38          96          79
                ----------  ----------  ----------  ----------  ----------
Net income      $   15,588  $    1,080  $       64  $      147  $      117
                ==========  ==========  ==========  ==========  ==========
Net income
 (loss)
 available
 to common
 shareholders   $   15,275  $      767  $     (249) $     (166) $     (196)
                ==========  ==========  ==========  ==========  ==========



Common shareholder
 data
Basic earnings
 (loss) per
 common share   $     0.54  $     0.03  $    (0.01) $    (0.01) $    (0.02)
Diluted
 earnings
 (loss) per
 common share   $     0.54  $     0.03  $    (0.01) $    (0.01) $    (0.02)
Book value per
 common share   $     6.71  $     6.16  $     6.17  $     6.18  $     6.12
Tangible book
 value per
 common share   $     4.21  $     3.65  $     3.65  $     3.64  $     3.57
Shares
 outstanding    28,214,721  28,170,760  28,174,076  28,175,564  28,182,048
Basic weighted
 average shares 28,177,635  28,171,552  28,174,092  28,181,602  12,910,057
Diluted
 weighted
 average shares 28,519,006  28,494,729  28,174,092  28,181,602  12,910,057


Selected ratios,
 yields and rates
Return on
 average assets       3.67%       0.28%       0.02%       0.04%       0.03%
Return on average
 tangible assets      3.82%       0.30%       0.02%       0.04%       0.03%
Return on
 average equity      30.68%       2.16%       0.13%       0.30%       0.28%
Return on
 average
 common equity       34.15%       1.75%      -0.57%      -0.38%      -0.52%
Return on
 average
 tangible
 common equity       56.78%       3.89%      -0.03%       0.30%       0.23%
Equity to assets     11.70%      13.02%      13.23%      13.65%      13.67%
Tangible equity
 to tangible
 assets               8.16%       8.78%       8.91%       9.19%       9.13%
Tangible common
 equity to
 tangible assets      6.75%       7.08%       7.19%       7.42%       7.36%
Total risk-based
 capital ratio:
  First California
   Bank              17.88%      16.31%      16.34%      16.66%      16.38%
  First California
   Financial
   Group, Inc.       18.20%      16.78%      16.91%      17.33%      17.08%
Yield on loans        5.69%       5.74%       5.83%       5.63%       5.67%
Yield on
 securities           1.78%       1.76%       2.15%       2.22%       1.90%
Yield on
 federal funds
 sold and
 deposits
 w/banks              0.28%       0.33%       0.28%       0.27%       0.72%
Total earning
 assets yield         4.54%       4.64%       4.57%       4.77%       4.62%
Rate paid on
 interest-bearing
 deposits             0.95%       0.97%       0.99%       1.00%       1.12%
Rate paid on
 borrowings           3.22%       3.48%       3.72%       3.86%       3.83%
Rate paid on
 junior
 subordinated
 debt                 4.90%       6.26%       6.55%       6.56%       6.56%
Total rate paid
 on interest
 bearing funds        1.30%       1.44%       1.54%       1.56%       1.66%
Net interest
 spread               3.24%       3.20%       3.03%       3.21%       2.96%
Net interest
 margin (tax
 equivalent)          3.52%       3.59%       3.46%       3.40%       3.39%
Cost of all
 deposits             0.71%       0.69%       0.69%       0.71%       0.80%
Efficiency
 ratio               37.53%      80.73%      75.97%      81.82%      80.99%






                     First California Financial Group
                  Unaudited Quarterly Financial Results

(in thousands
 except for
 share data and
 ratios)
As of or for
 the quarter
 ended          31-Mar-11   31-Dec-10   30-Sep-10   30-Jun-10   31-Mar-10
                ----------  ----------  ----------  ----------  ----------

Balance sheet
 data - period
 end
Total assets    $1,830,440  $1,521,334  $1,498,932  $1,452,999  $1,440,267
Shareholders'
 equity            214,086     198,041     198,284     198,384     196,835
Common
 shareholders'
 equity            189,344     173,413     173,770     173,985     172,550
Tangible common
 shareholders'
 equity            118,870     102,778     102,718     102,517     100,666
Earning assets   1,556,987   1,336,570   1,283,963   1,275,540   1,278,641
  Loans          1,125,897   1,001,615     918,708     891,541     919,304
  Securities       311,094     272,439     272,381     286,100     293,081
  Federal
   funds sold
   & other         119,996      62,516      92,874      97,899      66,166
Interest-bearing
 funds           1,265,399     982,945     985,194     906,883     929,495
  Interest-
   bearing
   deposits      1,083,803     824,640     780,402     751,354     769,229
  Borrowings       154,791     131,500     178,000     128,750     133,500
  Junior
   subordinated
   debt             26,805      26,805      26,792      26,779      26,766
Goodwill and
 other
 intangibles        70,474      70,635      71,052      71,468      71,884
Deposits         1,411,676   1,156,288   1,089,366   1,092,457   1,075,495


Balance sheet
 data - period
 average
Total assets    $1,723,401  $1,519,386  $1,449,937  $1,433,981  $1,443,100
Shareholders'
 equity            206,063     198,163     198,703     197,601     167,979
Common
 shareholders'
 equity            181,378     173,592     173,878     173,268     152,803
Tangible common
 shareholders'
 equity            110,824     102,748     102,618     101,592      80,710
Earning assets   1,475,076   1,341,797   1,274,996   1,278,026   1,282,707
  Loans          1,079,197     991,723     890,221     913,251     929,662
  Securities       295,407     293,721     287,370     278,395     341,890
  Federal
   funds sold
   & other         100,472      56,353      97,405      86,380      11,155
Interest-bearing
 funds           1,165,157     979,844     919,381     916,653     955,644
  Interest-
   bearing
   deposits      1,004,889     822,421     761,104     759,183     789,843
  Borrowings       133,463     130,625     131,492     130,698     139,042
  Junior
   subordinated
   debt             26,805      26,798      26,785      26,772      26,759
Goodwill and
 other
 intangibles        70,563      70,844      71,260      71,676      72,093
Deposits         1,336,865   1,153,795   1,084,990   1,070,126   1,094,890


Asset quality
 data & ratios

Non-covered
 assets:
Loans past due
 30 to 89 days
 & accruing     $    2,388  $   11,630  $    2,003  $    1,078  $    2,520
Loans past due
 90 days &
 accruing              544           -           -           -           -
Nonaccruing
 loans              20,899      18,241      22,398      13,192      37,034
                ----------  ----------  ----------  ----------  ----------
Total past due
 & nonaccrual
 loans          $   23,831  $   29,871  $   24,401  $   14,270  $   39,554
                ==========  ==========  ==========  ==========  ==========

Foreclosed
 property       $   20,854  $   26,011  $   27,906  $   27,850  $    5,997

Loans           $  943,119  $  947,786  $  918,708  $  891,541  $  919,304

Net loan
 charge-offs    $      867  $      666  $    3,570  $      912  $    2,661
Allowance for
 loan losses    $   18,666  $   17,033  $   16,500  $   16,452  $   15,598
Allowance for
 loan losses to
 loans                1.98%       1.80%       1.80%       1.85%       1.70%


Covered assets:
Loans past due
 30 to 89 days
 & accruing     $    5,542  $    4,877  $        -  $        -  $        -
Loans past due
 90 days &
 accruing            4,208         400           -           -           -
Nonaccruing
 loans              68,507       4,325           -           -           -
                ----------  ----------  ----------  ----------  ---------- 
Total past due
 & nonaccrual
 loans          $   78,257  $    9,602  $        -  $        -  $        -
                ==========  ==========  ==========  ==========  ==========

Foreclosed
 property       $   11,097  $      977  $        -  $        -  $        -

Loans           $  182,778  $   53,829  $        -  $        -  $        -

Net loan
 charge-offs    $        -  $        -  $        -  $        -  $        -
Allowance for
 loan losses    $        -  $        -  $        -  $        -  $        -
Allowance for
 loan losses to
 loans                0.00%       0.00%       0.00%       0.00%       0.00%







                     First California Financial Group
                  Unaudited Quarterly Financial Results


                                                        Three months ended
                                                            March 31,
                                                        ------------------
                                                          2011      2010
                                                        --------  --------
(in thousands, except per share data)
Interest income:
    Interest and fees on loans                          $ 15,132  $ 12,987
    Interest on securities                                 1,311     1,589
    Interest on federal funds sold and interest bearing
     deposits                                                 69        20
                                                        --------  --------
         Total interest income                            16,512    14,596
                                                        --------  --------
Interest expense:
    Interest on deposits                                   2,342     2,172
    Interest on borrowings                                 1,060     1,312
    Interest on junior subordinated debentures               331       439
                                                        --------  --------
         Total interest expense                            3,733     3,923
                                                        --------  --------
         Net interest income before provision for loan
          losses                                          12,779    10,673
Provision for loan losses                                  2,500     1,754
                                                        --------  --------
         Net interest income after provision for loan
          losses                                          10,279     8,919
                                                        --------  --------
Noninterest income:
    Service charges on deposit accounts                      897       785
    Loan sales and commissions                                 -        16
    Net gain on sale of securities                             -       132
    Impairment loss on securities                         (1,066)      (18)
    Gain on acquisition                                   34,736         -
    Other income                                             342       278
                                                        --------  --------
         Total noninterest income                         34,909     1,193
                                                        --------  --------
Noninterest expense:
    Salaries and employee benefits                         6,068     4,970
    Premises and equipment                                 1,539     1,537
    Data processing                                        1,061       595
    Legal, audit and other professional services           1,660       182
    Printing, stationery and supplies                         96        12
    Telephone                                                166       224
    Directors' fees                                          106       120
    Advertising, marketing and business development          369       227
    Postage                                                   56        56
    Insurance and assessments                                663       800
    Loss on and expense of foreclosed property             5,252        78
    Amortization of intangible assets                        416       416
    Other expenses                                           861       699
                                                        --------  --------
         Total noninterest expense                        18,313     9,916
                                                        --------  --------
Income before provision for income taxes                  26,875       196
Provision for income taxes                                11,287        79
                                                        --------  --------
    Net income                                          $ 15,588  $    117
                                                        ========  ========

Net income (loss) available to common stockholders      $ 15,275  $   (196)






                     First California Financial Group
                  Unaudited Quarterly Financial Results


                                                 March 31,    December 31,
(in thousands)                                      2011          2010
                                                ------------- -------------

 Cash and due from banks                        $      35,371 $      25,487
 Interest bearing deposits with other banks           119,996        62,516
 Securities available-for-sale, at fair value         311,094       272,439
 Loans, net                                         1,107,231       984,582
 Premises and equipment, net                           20,067        19,710
 Goodwill                                              60,720        60,720
 Other intangibles, net                                 9,754         9,915
 Deferred tax assets, net                                   -         4,563
 Cash surrender value of life insurance                12,342        12,232
 Foreclosed property                                   31,951        26,988
 FDIC shared-loss asset                                87,073        16,725
 Accrued interest receivable and other assets          34,841        25,457
                                                ------------- -------------

 Total assets                                   $   1,830,440 $   1,521,334
                                                ============= =============


 Non-interest checking                          $     327,873 $     331,648
 Interest checking                                     96,632        88,638
 Money market and savings                             457,728       388,289
 Certificates of deposit, under $100,000              128,386        84,133
 Certificates of deposit, $100,000 and over           401,057       263,580
                                                ------------- -------------
    Total deposits                                  1,411,676     1,156,288

 Securities sold under agreements to repurchase        30,000        45,000
 Federal Home Loan Bank advances                      124,791        86,500
 Junior subordinated debentures                        26,805        26,805
 Deferred tax liabilities, net                         11,258             -
 FDIC shared-loss liability                             3,573           988
 Accrued interest payable and other liabilities         8,251         7,712
                                                ------------- -------------

    Total liabilities                               1,616,354     1,323,293

    Total shareholders' equity                        214,086       198,041
                                                ------------- -------------

 Total liabilities and shareholders' equity     $   1,830,440 $   1,521,334
                                                ============= =============





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


(in thousands except for share data and ratios)    3/31/2011   12/31/2010
                                                  -----------  -----------

Total shareholders' equity                        $   214,086  $   198,041
Less: Goodwill and intangible assets                  (70,474)     (70,635)
                                                  -----------  -----------
Tangible equity                                       143,612      127,406
Less: Preferred stock                                 (24,742)     (24,628)
                                                  -----------  -----------
Tangible common equity                            $   118,870  $   102,778
                                                  ===========  ===========

Total assets                                      $ 1,830,440  $ 1,521,334
Less: Goodwill and intangible assets                  (70,474)     (70,635)
                                                  -----------  -----------
Tangible assets                                   $ 1,759,966  $ 1,450,699
                                                  ===========  ===========

Common shares outstanding                          28,214,721   28,170,760

Tangible equity to tangible assets                       8.16%        8.78%
Tangible common equity to tangible assets                6.75%        7.08%
Tangible book value per common share              $      4.21  $      3.65
                                                  -----------  -----------

                                                  ------------------------
                                                      Three months ended
                                                  ------------------------
                                                   3/31/2011    12/31/2010
                                                  -----------  -----------
Net income available to common shares             $    15,275  $       767
Less: amortization of intangible assets, net of
 tax                                                      241          241
                                                  -----------  -----------
Net income (loss) available to tangible common
 shares                                           $    15,516  $     1,008
                                                  ===========  ===========

                                                  ------------------------
                                                      Three months ended
                                                  ------------------------
                                                   3/31/2011    12/31/2010
                                                  ------------------------

Noninterest expense                               $    18,313  $    12,453
Less: amortization of intangible assets                  (416)        (416)
Less: loss on and expense of foreclosed property       (5,252)      (2,224)
Less: integration/conversion expenses                    (515)        (430)
                                                  -----------  -----------
Operating expenses                                $    12,130  $     9,383
                                                  ===========  ===========

Contact Information

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

    At PondelWilkinson:
    Robert Jaffe
    310-279-5969