SOURCE: RMG Capital Corporation

May 09, 2008 19:09 ET

RMG Capital Corporation Announces 1st Quarter 2008 Operating Results

FULLERTON, CA--(Marketwire - May 9, 2008) - RMG Capital Corporation (OTCBB: RMGC), the holding company for Fullerton Community Bank, F.S.B. in Fullerton, California, announced today their 1st quarter 2008 operating results.

According to company spokesman, R. O. Kusserow, first quarter 2008 Net Income for RMG Capital Corporation totaled $1.28 million or $0.41 per share as compared with $965,000 or $0.32 per share at 3/31/2007. The Net Income growth represents a 33.2% increase over the same period a year ago. At March 31, 2008, RMG had Total Assets of $721.9 million as compared with $662.9 million at 3/31/2007. This is an increase of 8.9% over the same period last year.

The net interest spread (net of amortized loan fees) for Fullerton Community Bank at 3/31/08 was 3.84%. This compares to the net interest spread at 3/31/07 of 3.35%. This increase was the result of improvements in the Bank's funding costs.

As of 3/31/2008, the corporation's non-performing loans to total loans ratio was 0.60% as compared to 0.34% for the same period in 2007. President T. E. Meyer observed that the Bank received a substantial $2 million paydown on a non-performing loan in April, thus reducing this ratio to approximately 0.39%. Meyer also noted that loan growth has moderated the past two quarters. Despite an obviously softening economy, he added that delinquencies have not notably increased.

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.

RMG Capital Corporation and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)

Assets                                          3/31/2008      3/31/2007
                                              -------------  -------------
Cash and Due from Banks                       $  12,586,000  $  13,554,000
Federal Funds Sold                            $           0  $   2,000,000
                                              -------------  -------------
  Total Cash and Cash Equivalents             $  12,586,000  $  15,554,000

Loans, net                                    $ 648,355,000  $ 569,393,000
Investment Securities HTM                     $     998,000  $  10,989,000
Mortgage-backed Securities AFS, at fair value $   3,517,000  $   8,465,000
Mortgage-backed Securities HTM                $  22,821,000  $  28,185,000
Accrued Interest Receivable                   $   3,646,000  $   3,481,000
Investments in Real Estate, net               $   3,146,000  $   3,785,000
Real Estate Acquired through Foreclosure      $     248,000  $           0
Federal Home Loan Bank Stock, at cost         $   8,910,000  $   5,959,000
Cash Surrender Value of Life Insurance        $   7,676,000  $   7,377,000
Premises and Equipment, net                   $   6,039,000  $   5,848,000
Other Assets                                  $   3,925,000  $   3,821,000
Land and Other Development Costs              $           0  $           0
                                              -------------  -------------
  Total Assets                                $ 721,867,000  $ 662,857,000
                                              =============  =============

Liabilities and Stockholders' Equity
Liabilities
  Deposit Accounts                            $ 458,372,000  $ 494,095,000
  FHLB Borrowings                             $ 185,100,000  $ 100,000,000
  Other Borrowings                            $   1,000,000  $   1,000,000
  Junior Subordinated Debentures              $  18,558,000  $  18,558,000
  Accounts Payable and Other Liabilities      $   8,824,000  $   5,234,000
                                              -------------  -------------
    Total Liabilities                         $ 671,854,000  $ 618,887,000
                                              -------------  -------------

Minority Interest and Noncontrolling Interest
 in Cons Subs                                 $           0  $           0

Commitments and Contingencies                 $           0  $           0

Stockholders' Equity
  Preferred stock, no par value: 1,000,000
   shares authorized: 5,000 issued and
   outstanding                                $   4,823,000  $   4,823,000
  Common Stock, no par value; 10,000,000
   shares authorized: 2,806,133 shares issued
   and outstanding                            $   3,250,000  $   1,066,000
Accumulated other comprehensive Income (Loss) $      18,000  $      39,000
Retained earnings                             $  41,922,000  $  38,042,000
                                              -------------  -------------
    Total Stockholders' Equity                $  50,013,000  $  43,970,000
                                              -------------  -------------
                                              $ 721,867,000  $ 662,857,000
                                              =============  =============



RMG Capital Corporation and Subsidiaries
Consolidated Statement of Income (Unaudited)
                                                3/31/2008      3/31/2007
                                              -------------  -------------
Interest Income:
  Interest on loans                           $  11,389,000  $  10,704,000
  Interest and dividends on investments       $     426,000  $     693,000
                                              -------------  -------------
    Total Interest Income                     $  11,815,000  $  11,397,000
                                              -------------  -------------

Interest Expense:
  Interest on deposit accounts                $   2,929,000  $   4,027,000
  Other noninterest expense                   $   2,169,000  $   1,684,000
                                              -------------  -------------
    Total Interest Expense                    $   5,098,000  $   5,711,000
                                              -------------  -------------
    Net Interest Income before provision for
     loan losses                              $   6,717,000  $   5,686,000
                                              -------------  -------------

Provision for loan losses                     $     228,000  $       3,000
                                              -------------  -------------
    Net Interest Income                       $   6,489,000  $   5,683,000
                                              -------------  -------------

Noninterest Income:
  Loan servicing and other fees               $     701,000  $     824,000
  Real estate operations, net                 $           0  $           0
  Gain on sale of loans, net                  $      93,000  $      24,000
  Other                                       $      87,000  $      82,000
                                              -------------  -------------
    Total Noninterest Income                  $     881,000  $     930,000
                                              -------------  -------------

Noninterest Expense:
  Compensation and other employee benefits    $   3,661,000  $   3,508,000
  Occupancy                                   $     355,000  $     351,000
  Equipment rental and data processing        $     246,000  $     265,000
  Other expense and supplies                  $     116,000  $     165,000
  Other                                       $     896,000  $     763,000
                                              -------------  -------------
    Total Noninterest Expense                 $   5,274,000  $   5,052,000
                                              -------------  -------------
    Income before income tax provision        $   2,096,000  $   1,561,000

Income tax provision                          $     811,000  $     596,000
                                              -------------  -------------

                                              -------------  -------------
    Net Income                                $   1,285,000  $     965,000
                                              =============  =============



RMG Capital Corporation and Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)

                                                3/31/2008      3/31/2007
                                              -------------  -------------
Cash Flows from Operating Activities
  Net Income                                  $   1,285,000  $     965,000
  Adjustments to reconcile net income to net
   cash provided by operating activities      $  (3,592,000) $  (2,149,000)
                                              -------------  -------------
    Net cash provided by operating activities $  (2,307,000) $  (1,184,000)

    Net cash (used in) investing activities   $ (11,541,000) $   8,935,000

    Net Cash provided by financing activities $  15,839,000  $ (10,765,000)
                                              -------------  -------------

    Net increase (decrease) in cash and cash
     equivalents                              $   1,991,000  $  (3,014,000)

Cash and Cash Equivalents
  Beginning of year                           $  10,595,000  $  18,568,000
                                              -------------  -------------
  End of period                               $  12,586,000  $  15,554,000
                                              =============  =============



Consolidated Statement of Stockholders'
Equity (Unaudited)

                                                3/31/2008      3/31/2007
                                              -------------  -------------
Balance, Beginning of Year                    $  48,903,000  $  43,160,000
    Net Income                                $   1,285,000  $     965,000
    Common stock issued, net of offering
     costs                                    $      54,000  $           0
    Preferred dividends, $22.20 (2008),
     $22.60 (2007) per share                  $    (111,000) $    (113,000)
    Common dividends, $0.05 (2008), $0.05
     (2007) per share                         $    (140,000) $    (135,000)
    Other comprehensive income, net of tax    $     (10,000) $       3,000
    Other                                     $      32,000  $      90,000
                                              -------------  -------------
Balance, End of Period                        $  50,013,000  $  43,970,000
                                              =============  =============

Contact Information

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