SOURCE: First California Financial Group

First California Financial Group

February 03, 2011 08:00 ET

First California Reports Improved 2010 Fourth-Quarter, Full-Year Financial Results

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

WESTLAKE VILLAGE, CA--(Marketwire - February 3, 2011) - First California Financial Group, Inc. (NASDAQ: FCAL), the holding company of First California Bank, today reported improved consolidated financial results for the fourth quarter and full year ended December 31, 2010, with significantly increased net income over the prior-year periods. The company also announced that it will host a conference call later today at 11 a.m. Pacific (2 p.m. Eastern) to review its financial results.

For the 2010 fourth quarter, net income advanced to $1.1 million from a net loss of $2.9 million for the same quarter of the prior year. Preferred dividends were $312,500 for both the fourth quarter of 2010 and 2009. Net income available to common shareholders was $767,000, or $0.03 per diluted share, compared to net loss available to common shareholders of $3.2 million, or $0.27 per share, for the 2009 fourth quarter.

"Our fourth quarter operating performance reflects continued revenue growth and improved net interest margin," said C. G. Kum, President and Chief Executive Officer. "During the past year, opportunities for increasing our revenue have been limited by low interest rates and weak loan demand. We, however, have used this time to strengthen our capital position and reserve levels, increase our core deposits and reduce our operating expenses. We believe the steps we have taken provide a solid foundation for earnings growth in 2011 and beyond."

2010 Fourth Quarter Financial Highlights:

--  The acquisition of Western Commercial Bank in an FDIC-assisted
    transaction, recognizing a $2.3 million gain on the purchase, and
    completed the integration and conversion within 35 days;
--  Net interest income grew 9 percent to $12.1 million from $11.1 million
    for the 2010 third quarter;
--  Net interest margin rose to 3.59 percent from 3.46 percent for the 2010
    third quarter;
--  Non-covered nonaccrual loans declined to $18.2 million from $22.4
    million at September 30, 2010, and net charge-offs (non-annualized) as
    a percentage of average non-covered loans declined to 0.07 percent for
    the 2010 fourth quarter from 0.40 percent for the 2010 third quarter;
--  The allowance for loan losses was $17.0 million, compared with $16.5
    million for the 2010 third quarter;
--  Core deposits remained strong at 77 percent of total deposits at
    December 31, 2010;
--  Tangible book value per common share was $3.65 at both December 31,
    2010 and September 30, 2010.

2010 Full Year Financial Highlights:

--  Net income was $1.4 million versus a net loss of $4.7 million for 2009;
--  The company substantially increased tier 1 capital and tangible common
    equity through the completion of a common stock offering in the 2010
    first quarter with gross proceeds of $41.4 million;
--  The company added three lending teams to further increase market share
    in its service areas;
--  Provision for loan losses dropped to $8.3 million in 2010 from $16.6
    million in 2009;
--  At December 31, 2010:
    --  Loans increased 7 percent to $1.0 billion from $939.2 million at
        prior year-end;
    --  Core non-maturity deposits increased $68.4 million, or 9 percent,
        to $808.6 million from the end of the previous year;
    --  Non-covered past due and nonaccrual loans declined to $29.9 million
        from $54.8 million at December 31, 2009;
--  Operating expenses fell 9 percent to $37.8 million from $41.5 million
    for 2009;
--  Completed an FDIC-assisted transaction in November 2010 and entered
    into a definitive purchase agreement in December 2010 to acquire the
    electronic banking solutions division of Palm Desert National Bank,
    which is expected to close at the end of the 2011 first quarter.

Asset Quality

Non-covered nonaccrual loans decreased to $18.2 million at December 31, 2010 from $22.4 million at September 30, 2010 and $40.0 million at December 31, 2009. The fourth quarter decrease primarily reflects the payoff received on a $3.6 million shared national credit. Non-covered loans past due 30 to 89 days increased to $11.6 million at December 31, 2010, primarily due to an $8.3 million construction loan representing a completed high-end residence in Beverly Hills, California.

Non-covered foreclosed properties at the end of the 2010 fourth quarter declined to $26.0 million from $27.9 million at September 30, 2010. The reduction includes a $2.1 million valuation allowance on a $20.1 million completed commercial construction project. As a result, foreclosed property charges were $2.2 million for the 2010 fourth quarter compared with $185,000 for the 2010 third quarter. Non-covered non-performing assets (foreclosed properties, nonaccrual loans and loans 90 days past due and accruing) to total assets was 2.91 percent at December 31, 2010 compared with 3.36 percent at September 30, 2010 and 3.09 percent at December 31, 2009.

At December 31, 2010, the company had $53.8 million of covered loans, of which $4.3 million were classified as non-accrual, and $1.0 million of foreclosed property. The covered loans and foreclosed property were acquired in the FDIC-assisted Western Commercial Bank transaction for which the FDIC will share in the losses, if any, arising from the collection of these loans and the sale of the foreclosed property.

The allowance for loan losses was $17.0 million, or 1.80 percent of non-covered loans, at the end of the 2010 fourth quarter compared with $16.5 million, or 1.80 percent of non-covered loans, at the end of the 2010 third quarter. At year-end 2009, the allowance was $16.5 million, or 1.76 percent of total loans. Net loan charge-offs for the 2010 fourth quarter fell to $666,000 from $3.6 million for the 2010 third quarter, which included a $3.4 million charge-off on a $15.0 million shared national credit. Net loan charge-offs to average non-covered loans declined to 0.85 percent for 2010 from 0.89 percent for 2009.

The provision for loan losses decreased to $1.2 million for the 2010 fourth quarter from $3.6 million for the 2010 third quarter, due to a decline in charge-offs in the 2010 fourth quarter compared with the 2010 third quarter.

Financial Results

For the 2010 fourth quarter, net interest income before the provision for loan losses increased 9 percent to $12.1 million from $11.1 million for the 2010 third quarter. Net interest margin (on a taxable equivalent basis) rose to 3.59 percent from 3.46 percent for the 2010 third quarter. The increase in the net interest income and net interest margin principally reflects the shift to higher-yielding loans from lower-yielding assets, 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 7 percent to $1.2 million from $1.1 million for the 2010 third quarter.

Operating expenses for the 2010 fourth quarter were $9.4 million compared with $9.1 million for the 2010 third quarter. Operating expenses exclude intangible amortization and foreclosed property gains, losses and expenses. The increase reflects increases to the company's workforce as a result of the Western Commercial Bank acquisition and the addition of a new lending team.

Pre-tax, pre-provision earnings increased 13 percent to $3.1 million from to $2.7 million for the 2010 third quarter. Pre-tax, pre-provision earnings exclude gains on securities transactions and asset quality charges (provision for loan losses, securities impairment and foreclosed property gains, losses and expenses).

At December 31, 2010, loans increased to $1.0 billion from $918.7 million at September 30, 2010. The increase includes $53.8 million of covered loans acquired in the FDIC-assisted Western Commercial Bank transaction and the purchase of $28.3 million of recently originated home mortgages at the beginning of the quarter.

Deposits as of December 31, 2010 increased to $1.2 billion from $1.09 billion at September 30, 2010. Core non-maturity deposits increased $45.9 million, or 6 percent, to $808.6 at December 31, 2010 from $762.7 million at the end of the 2010 third quarter.

Capital Resources

Shareholders' equity was $198.0 million at the close of the 2010 fourth quarter compared with $198.3 million at September 30, 2010. The company's book value per common share was $6.16 at December 31, 2010 compared with $6.17 at September 30, 2010. Tangible book value per common share was $3.65 at both December 31, 2010 and September 30, 2010.

At December 31, 2010, First California's preliminary total risk-based and leverage capital ratios were 16.78 percent and 11.00 percent, respectively. At the end of the 2010 third quarter, the total risked-based capital ratio was 16.91 percent and the leverage capital ratio was 11.49 percent. The company's ratio of tangible common equity to tangible assets was 7.08 percent at quarter end and 7.19 percent at the end of the 2010 third quarter. Total assets were $1.52 billion at December 31, 2010 compared with $1.50 billion at September 30, 2010.

Kum concluded: "Proceeding into 2011, we plan to further expand our product offerings and add new revenue streams with attractive margins, as exemplified by our recent agreement to acquire the electronic banking services business from Palm Desert National Bank. We will continue to build upon our strengths, progress and momentum."

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. 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 today, February 3, 2011 at 11 a.m. Pacific (2 p.m. Eastern) to discuss the company's 2010 fourth quarter and full year 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 February 18, 2011 by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering replay passcode 448019.

About First California

First California Financial Group, Inc. (NASDAQ: FCAL) is the holding company of First California Bank. Celebrating 31 years of business in 2010, First California is a regional force of strength and stability in Southern California banking with assets in excess of $1.5 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 18 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 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          31-Dec-10   30-Sep-10   30-Jun-10   31-Mar-10   31-Dec-09
                ----------  ----------  ----------  ----------  ----------

Income statement
 summary
Net interest
 income         $   12,108  $   11,107  $   10,806  $   10,673  $   11,091
Service charges,
 fees & other
 income              1,199       1,116       1,133       1,079       1,232
Operating
 expenses            9,383       9,083       9,866       9,422      10,372
Provision for
 loan losses         1,199       3,618       1,766       1,754       6,350
Foreclosed
 property
 (gain)/loss &
 expense             2,224         185        (223)         78       1,121
Amortization of
 intangible
 assets                416         416         417         416         416
Gain on
 securities
 transactions          548       1,204         130         132       2,159
Integration/
 conversion
 expense               430           -           -           -           -
Gain on
 acquisition         2,312           -           -           -           -
Impairment loss
 on securities         708          23           -          18         942
                ----------  ----------  ----------  ----------  ----------
Income (loss)
 before tax          1,807         102         243         196      (4,719)
Tax expense
 (benefit)             727          38          96          79      (1,855)
                ----------  ----------  ----------  ----------  ----------
Net income
 (loss)         $    1,080  $       64  $      147  $      117  $   (2,864)
                ==========  ==========  ==========  ==========  ==========
Net income (loss)
 available to
 common
 shareholders   $      767  $     (249) $     (166) $     (196) $   (3,177)
                ==========  ==========  ==========  ==========  ==========



Common shareholder
 data
Basic earnings
 (loss) per
 common share   $     0.03  $    (0.01) $    (0.01) $    (0.02) $    (0.27)
Diluted earnings
 (loss) per
 common share   $     0.03  $    (0.01) $    (0.01) $    (0.02) $    (0.27)
Book value per
 common share   $     6.16  $     6.17  $     6.18  $     6.12  $    11.45
Tangible book
 value per
 common share   $     3.65  $     3.65  $     3.64  $     3.57  $     5.23
Shares
 outstanding    28,170,760  28,174,076  28,175,564  28,182,048  11,622,893
Basic weighted
 average shares 28,171,552  28,174,092  28,181,602  12,910,057  11,625,386
Diluted weighted
 average shares 28,494,729  28,174,092  28,181,602  12,910,057  11,625,386


Selected ratios,
 yields and
 rates
Return on
 average assets       0.28%       0.02%       0.04%       0.03%      -0.77%
Return on
 average
 tangible
 assets               0.30%       0.02%       0.04%       0.03%      -0.81%
Return on
 average equity       2.16%       0.13%       0.30%       0.28%      -7.08%
Return on
 average common
 equity               1.75%      -0.57%      -0.38%      -0.52%      -9.34%
Return on
 average
 tangible
 common equity        3.89%      -0.03%       0.30%       0.23%     -18.63%
Equity to
 assets              13.02%      13.23%      13.65%      13.67%      10.77%
Tangible equity
 to tangible
 assets               8.78%       8.91%       9.19%       9.13%       6.12%
Tangible common
 equity to
 tangible
 assets               7.08%       7.19%       7.42%       7.36%       4.38%
Total risk-based
 capital ratio:
   First
    California
    Bank             16.31%      16.34%      16.66%      16.38%      12.17%
   First
    California
    Financial
    Group, Inc.      16.78%      16.91%      17.33%      17.08%      12.69%
Yield on loans        5.74%       5.83%       5.63%       5.67%       5.60%
Yield on
 securities           1.76%       2.15%       2.22%       1.90%       3.01%
Yield on
 federal funds
 sold and
 deposits
 w/banks              0.33%       0.28%       0.27%       0.72%       0.26%
Total earning
 assets yield         4.64%       4.57%       4.77%       4.62%       4.70%
Rate paid on
 interest-
 bearing
 deposits             0.97%       0.99%       1.00%       1.12%       1.26%
Rate paid on
 borrowings           3.48%       3.72%       3.86%       3.83%       3.84%
Rate paid on
 junior
 subordinated
 debt                 6.26%       6.55%       6.56%       6.56%       6.98%
Total rate paid
 on interest
 bearing funds        1.44%       1.54%       1.56%       1.66%       1.79%
Net interest
 spread               3.20%       3.03%       3.21%       2.96%       2.91%
Net interest
 margin (tax
 equivalent)          3.59%       3.46%       3.40%       3.39%       3.35%
Cost of all
 deposits             0.69%       0.69%       0.71%       0.80%       0.91%
Efficiency
 ratio               80.73%      75.97%      81.82%      80.99%     100.98%




                     First California Financial Group
                  Unaudited Quarterly Financial Results

(in thousands
 except for
 share data and
 ratios)
As of or for
 the quarter
 ended          31-Dec-10   30-Sep-10   30-Jun-10   31-Mar-10   31-Dec-09
                ----------  ----------  ----------  ----------  ----------

Balance sheet
 data - period
 end

Total assets    $1,521,334  $1,498,932  $1,452,999  $1,440,267  $1,459,821
Shareholders'
 equity            198,041     198,284     198,384     196,835     157,226
Common
 shareholders'
 equity            173,413     173,770     173,985     172,550     133,056
Tangible common
 shareholders'
 equity            102,778     102,718     102,517     100,666      60,755
Earning assets   1,336,570   1,283,963   1,275,540   1,278,641   1,308,628
  Loans          1,001,615     918,708     891,541     919,304     939,246
  Securities       272,439     272,381     286,100     293,081     349,645
  Federal
   funds sold
   & other          62,516      92,874      97,899      66,166      19,737
Interest-bearing
 funds             982,945     985,194     906,883     929,495     977,358
  Interest-
   bearing
   deposits        824,640     780,402     751,354     769,229     807,105
  Borrowings       131,500     178,000     128,750     133,500     143,500
  Junior
   subordinated
   debt             26,805      26,792      26,779      26,766      26,753
Goodwill and
 other
 intangibles        70,635      71,052      71,468      71,884      72,301
Deposits         1,156,288   1,089,366   1,092,457   1,075,495   1,124,715


Balance sheet
 data - period
 average

Total assets    $1,519,386  $1,449,937  $1,433,981  $1,443,100  $1,477,350
Shareholders'
 equity            198,163     198,703     197,601     167,979     160,499
Common
 shareholders'
 equity            173,592     173,878     173,268     152,803     135,029
Tangible common
 shareholders'
 equity            102,748     102,618     101,592      80,710      62,520
Earning assets   1,341,797   1,274,996   1,278,026   1,282,707   1,313,341
  Loans            991,723     890,221     913,251     929,662     929,530
  Securities       293,721     287,370     278,395     341,890     309,417
  Federal
   funds sold
   & other          56,353      97,405      86,380      11,155      74,394
Interest-bearing
 funds             983,214     919,381     916,653     955,644     992,918
  Interest-
   bearing
   deposits        822,421     761,104     759,183     789,843     820,455
  Borrowings       130,625     131,492     130,698     139,042     145,717
  Junior
   subordinated
   debt             26,798      26,785      26,772      26,759      26,746
Goodwill and
 other
 intangibles        70,844      71,260      71,676      72,093      72,509
Deposits         1,153,795   1,084,990   1,070,126   1,094,890   1,135,616


Asset quality
 data & ratios

Non-covered
 assets:
Loans past due
 30 to 89 days
 & accruing     $   11,630  $    2,003  $    1,078  $    2,520  $   14,592
Loans past due
 90 days &
 accruing                -           -           -           -         200
Nonaccruing
 loans              18,241      22,398      13,192      37,034      39,958
                ----------  ----------  ----------  ----------  ----------
Total past due
 & nonaccrual
 loans          $   29,871  $   24,401  $   14,270  $   39,554  $   54,750
                ==========  ==========  ==========  ==========  ==========

Foreclosed
 property       $   26,011  $   27,906  $   27,850  $    5,997  $    4,893

Loans           $  947,786  $  890,221  $  913,251  $  929,662  $  929,530

Net loan
 charge-offs    $      666  $    3,570  $      912  $    2,661  $    1,981
Allowance for
 loan losses    $   17,033  $   16,500  $   16,452  $   15,598  $   16,505
Allowance for
 loan losses to
 loans                1.80%       1.80%       1.85%       1.70%       1.76%


Covered assets:
Loans past due
 30 to 89 days
 & accruing     $    4,877  $        -  $        -  $        -  $        -
Loans past due
 90 days &
 accruing              400           -           -           -           -
Nonaccruing
 loans               4,325           -           -           -           -
                ----------  ----------  ----------  ----------  ----------
Total past due
 & nonaccrual
 loans          $    9,602  $        -  $        -  $        -  $        -
                ==========  ==========  ==========  ==========  ==========

Foreclosed
 property       $      977  $        -  $        -  $        -  $        -

Loans           $   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    Twelve months ended
                                     December 31,           December 31,
                                  ------------------    ------------------
                                    2010      2009        2010      2009
                                  --------  --------    --------  --------
(in thousands, except per share data)

Interest income:
    Interest and fees on loans    $ 14,359  $ 13,295    $ 53,240  $ 52,439
    Interest on securities           1,288     2,239       5,914    12,086
    Interest on federal funds
     sold and interest bearing
     deposits                           47        48         196       416
                                  --------  --------    --------  --------
         Total interest income      15,694    15,582      59,350    64,941
                                  --------  --------    --------  --------
Interest expense:
    Interest on deposits             2,021     2,612       7,973    12,131
    Interest on borrowings           1,145     1,412       4,945     5,924
    Interest on junior
     subordinated debentures           420       467       1,736     1,832
                                  --------  --------    --------  --------
         Total interest expense      3,586     4,491      14,654    19,887
                                  --------  --------    --------  --------
         Net interest income
          before provision for
          loan losses               12,108    11,091      44,696    45,054
Provision for loan losses            1,199     6,350       8,337    16,646
                                  --------  --------    --------  --------
         Net interest income
          after provision for
          loan losses               10,909     4,741      36,359    28,408
                                  --------  --------    --------  --------
Noninterest income:
    Service charges on deposit
     accounts                          850       840       3,225     3,516
    Loan sales and commissions          28        (6)         55        70
    Net gain on sale of
     securities                        548     2,159       2,014     6,469
    Impairment loss on securities     (708)     (942)       (749)   (1,507)
    Market gain on foreclosed
     assets                              -         -         691         -
    Gain on acquisition              2,312         -       2,312         -
    Other income                       321       398       1,248     1,486
                                  --------  --------    --------  --------
         Total noninterest income    3,351     2,449       8,796    10,034
                                  --------  --------    --------  --------
Noninterest expense:
    Salaries and employee
     benefits                        4,735     4,832      19,014    20,867
    Premises and equipment           1,638     1,667       6,268     6,538
    Data processing                    764       591       2,564     2,403
    Legal, audit and other
     professional services             817       961       2,033     2,719
    Printing, stationery and
     supplies                           64       157         258       757
    Telephone                          211       222         841       986
    Directors' fees                     93       123         428       521
    Advertising, marketing and
     business development              212       200         918     1,380
    Postage                             53        55         212       245
    Insurance and assessments          567       872       2,944     3,376
    Loss on and expense of
     foreclosed property             2,224     1,121       2,954     1,563
    Amortization of intangible
     assets                            416       416       1,666     1,626
    Market loss on loans
     held-for-sale                       -         -           -       709
    Other expenses                     659       692       2,705     3,166
                                  --------  --------    --------  --------
         Total noninterest
          expense                   12,453    11,909      42,805    46,856
                                  --------  --------    --------  --------
Income (loss) before provision
 for income taxes                    1,807    (4,719)      2,350    (8,414)
Provision (benefit) for income
 taxes                                 727    (1,855)        940    (3,753)
                                  --------  --------    --------  --------
Net income (loss)                 $  1,080  $ (2,864)   $  1,410  $ (4,661)
                                  ========  ========    ========  ========

Net income (loss) available to
 common shareholders              $    767  $ (3,177)   $    160  $ (5,793)
                                  ========  ========    ========  ========





                     First California Financial Group
                  Unaudited Quarterly Financial Results


                                                 December 31,  December 31,
(in thousands)                                       2010          2009
                                                  -----------   -----------

Cash and due from banks                           $    25,487   $    26,757
Interest bearing deposits with other banks             62,516        19,737
Securities available-for-sale, at fair value          272,439       349,645
Loans, net                                            984,582       922,741
Premises and equipment, net                            19,710        20,286
Goodwill                                               60,720        60,720
Other intangibles, net                                  9,915        11,581
Deferred tax assets, net                                4,563         6,046
Cash surrender value of life insurance                 12,232        11,791
Foreclosed property                                    26,988         4,893
FDIC loss-share indemnification asset                  16,725             -
Accrued interest receivable and other assets           25,457        25,624
                                                  -----------   -----------

Total assets                                      $ 1,521,334   $ 1,459,821
                                                  ===========   ===========


Non-interest checking                             $   331,648   $   317,610
Interest checking                                      88,638        82,806
Money market and savings                              388,289       339,750
Certificates of deposit, under $100,000                84,133       116,012
Certificates of deposit, $100,000 and over            263,580       268,537
                                                  -----------   -----------
    Total deposits                                  1,156,288     1,124,715

Securities sold under agreements to repurchase         45,000        45,000
Federal Home Loan Bank advances                        86,500        98,500
Junior subordinated debentures                         26,805        26,753
Accrued interest payable and other liabilities          8,700         7,627
                                                  -----------   -----------

    Total liabilities                               1,323,293     1,302,595

    Total shareholders' equity                        198,041       157,226
                                                  -----------   -----------

Total liabilities and shareholders' equity        $ 1,521,334   $ 1,459,821
                                                  ===========   ===========



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



(in thousands except
 for share data and
 ratios)                12/31/2010   12/31/2009
                        -----------  -----------

Total shareholders'
 equity                 $   198,041  $   157,226
Less: Goodwill and
 intangible assets          (70,635)     (72,301)
                        -----------  -----------
Tangible equity             127,406       84,925
Less: Preferred stock       (24,628)     (24,170)
                        -----------  -----------
Tangible common equity  $   102,778  $    60,755
                        ===========  ===========

Total assets            $ 1,521,334  $ 1,459,821
Less: Goodwill and
 intangible assets          (70,635)     (72,301)
                        -----------  -----------
Tangible assets         $ 1,450,699  $ 1,387,520
                        ===========  ===========

Common shares
 outstanding             28,170,760   11,622,893

Tangible equity to
 tangible assets               8.78%        6.12%
Tangible common equity
 to tangible assets            7.08%        4.38%
Tangible book value per
 common share           $      3.65  $      5.23


                           Three months ended
                        ------------------------
                         12/31/2010   9/30/2010
                        -----------  -----------
Net income (loss)
 available to common
 shares                 $       767  $      (249)
Less: amortization of
 intangible assets, net
 of tax                         241          241
                        -----------  -----------
Net income (loss)
 available to tangible
 common shares          $     1,008  $        (8)
                        ===========  ===========


                            Three months ended       Twelve months ended
                        ------------------------  ------------------------
                         12/31/2010   9/30/2010    12/31/2010   12/31/2009
                        -----------  -----------  -----------  -----------

Noninterest expense     $    12,453  $     9,684  $    42,805  $    46,856
Less: amortization of
 intangible assets             (416)        (416)      (1,666)      (1,626)
Less: loss on and
 expense of foreclosed
 property                    (2,224)        (185)      (2,954)      (1,563)
Less:
 integration/conversion
 expenses                      (430)           -         (430)        (774)
Less: market loss on
 loans held-for-sale              -            -            -         (709)
Less: FDIC special
 insurance assessment             -            -            -         (675)
                        -----------  -----------  -----------  -----------
Operating expenses      $     9,383  $     9,083  $    37,755  $    41,509
                        ===========  ===========  ===========  ===========


                            Three months ended       Twelve months ended
                        ------------------------  ------------------------
                         12/31/2010   9/30/2010    12/31/2010   12/31/2009
                        -----------  -----------  -----------  -----------

Income (loss) before
 provision for income
 taxes                  $     1,807  $       102  $     2,350  $    (8,414)
Add back: provision for
 loan losses                  1,199        3,618        8,337       16,646
Add back: impairment
 loss on securities             708           23          749        1,507
Add back: loss on and
 expense of foreclosed
 property                     2,224          185        2,954        1,563
Less: gain on
 acquisition                 (2,312)           -       (2,312)           -
Less: net gain on sale
 of securities                 (548)      (1,204)      (2,014)      (6,469)
                        -----------  -----------  -----------  -----------
Pre-tax, pre-provision
 income                 $     3,078  $     2,724  $    10,064  $     4,833
                        ===========  ===========  ===========  ===========

Contact Information

  • For further Information:

    At the Company:
    Ron Santarosa
    805-322-9333

    At PondelWilkinson:
    Robert Jaffe
    310-279-5969

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