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1st Capital Bank Announces Third Quarter 2019 Financial Results; Record Loan Portfolio

SALINAS, CA / ACCESSWIRE / October 31, 2019 / 1st Capital Bank (OTC Pink:FISB) reported unaudited net income of $1.94 million for the three months ended September 30, 2019, an increase of 11.3% compared to net income of $1.74 million in the third quarter of 2018 and an increase of 18.3% compared to net income of $1.64 million in the second quarter of 2019, the immediately preceding quarter. Earnings per common share were $0.37 (diluted), compared to $0.31 (diluted) for the prior quarter.

On a year-to-date basis, unaudited net income was $5.35 million for the nine months ended September 30, 2019, an increase of $861 thousand, or 19.2%, compared to $4.49 million for the nine months ended September 30, 2018. Earnings per common share were $1.03 (diluted) and $0.88 (diluted) for the nine-month periods ended September 30, 2019 and 2018, respectively.

For the three months ended September 30, 2019, the Bank's return on average assets was 1.25%, compared with 1.08% for the three months ended June 30, 2019, and 1.12% for the three months ended September 30, 2018. Return on average equity was 11.79% for the three months ended September 30, 2019, compared to 10.47% for the three months ended June 30, 2019, and 12.38% for the three months ended September 30, 2018.

Year-to-date return on average assets and return on average equity totaled 1.16% and 11.40%, respectively; compared with 1.01% and 11.08%, respectively, for the first nine months of 2018.

Net interest margin increased from 3.91% in the third quarter of 2018 to 4.05% in the third quarter of 2019, but declined slightly from 4.06% in the second quarter of 2019, primarily due to a decline in earning asset yield from 4.23% in the second quarter of 2019 to 4.22% in the third quarter of 2019. The Bank's average net loans-to-deposits ratio increased from 85.1% in the third quarter of 2018 to 87.3% in the third quarter of 2019, but declined from 88.1% in the second quarter of 2019, and average gross loans outstanding increased $0.8 million or 0.2%, year-to-year, from $480.6 million to $481.4 million. Net interest income before provision for loan losses for the three-month period ended September 30, 2019 was $5.99 million, a sequential increase of $20 thousand, or 0.3%, compared to $5.97 million recognized in the three-month period ended June 30, 2019. The Bank's cost of funds declined slightly, to 0.20% for the third quarter of 2019, compared to­­ 0.21% for the second quarter of 2019, but increased from 0.17% in the third quarter of 2018. On a year-over-year basis, quarterly net interest income before provision for loan losses increased $97 thousand, or 1.6%, from $5.89 million recognized during the third quarter of 2018.

Net loans increased $12.6 million, or 2.6%, during the third quarter, from $475.1 million at June 30, 2019 to $487.7 million at September 30, 2019. Growth was concentrated in commercial real estate loans including multifamily loans ($14.4 million). Year over year, gross loans outstanding increased 2.0%, from $484.6 million as of September 30, 2018 to $494.3 million as of September 30, 2019. Growth in commercial real estate loans of $20.1 million was the primary driver of the loan growth during the past 12 months, which was partially offset by a $6.0 million decline in single-family residential loans. Yields on commercial and industrial loans increased from 5.50% during the third quarter of 2018 to 5.72% during the third quarter of 2019, but decreased from 6.02% during the second quarter of 2019, due to changes in the Bank's prime lending rate. Yields on commercial real estate loans increased from 4.81% during the third quarter of 2018 to 4.93% and 4.97% during the second and third quarters of 2019, respectively. The yield on the total loan portfolio increased from 4.50% during the third quarter of 2018 to 4.61% and 4.60% during the second and third quarters of 2019, respectively.

"We are pleased to report growth in our core loan portfolio in the third quarter," said Thomas E. Meyer, president and chief executive officer. "Recent additions to our experienced group of relationship managers have sourced quality new opportunities for us."

Non-interest income for the nine-month period ended September 30, 2019 increased 10.9% to $1.61 million, compared to $1.45 million for the nine-month period ended September 30, 2018. Quarterly non-interest income increased $134 thousand, or 28.5% year-over-year, to $605 thousand, compared to non-interest income of $471 thousand recognized in the third quarter of 2018, and increased $77 thousand, or 14.6% compared to non-interest income of $528 thousand recognized in the second quarter of 2019.

The Bank's efficiency ratio improved from 65.6% in the second quarter of 2019 to 60.0% in the third quarter of 2019, as the Bank's non-interest expenses decreased 7.1%, while total revenues grew nominally over the same period.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Net interest income before provision for credit losses was $5.99 million in the third quarter of 2019, an increase of $20 thousand, or 0.4%, compared to $5.97 million in the second quarter of 2019 and an increase of $97 thousand, or 1.6%, compared to $5.89 million in the third quarter of 2018. Net interest income before provision for credit losses for the nine months ended September 30, 2019 was $18.1 million, an increase of $1.54 million or 9.3%, compared to $16.6 million for the nine months ended September 30, 2018.

Average earning assets were $589.1 million during the third quarter of 2019, a decrease of 0.6% compared to $592.4 million in the second quarter of 2019. The yield on earning assets was 4.22% in the third quarter of 2019, compared to 4.05% in the third quarter of 2018, primarily due to an increase in the average yield of the loan portfolio from 4.50% in the third quarter of 2018 to 4.60% in the third quarter of 2019; and secondly, due to increase in yields in the investment portfolio. The average balance of the investment portfolio decreased $1.2 million, from $70.2 million in the third quarter of 2018 to $68.9 million in the third quarter of 2019, reflecting normal amortization and prepayments on the Bank's investments in mortgage-backed securities and collateralized mortgage obligations.

The yield on the investment portfolio increased from 2.28% in the third quarter of 2018 to 2.54% in the third quarter of 2019, but declined from 2.62% in the second quarter of 2019 as variable-rate mortgage-backed securities and collateralized mortgage obligations repriced downward in the third quarter.

The cost of interest-bearing liabilities increased from 0.30% in the third quarter of 2018, to 0.40% in the second quarter of 2019, and decreased marginally to 0.39% in the third quarter of 2019, while the average balance of interest-bearing liabilities decreased from $307.6 million in the third quarter of 2018 to $280.4 million in the second quarter of 2019, but increased to $286.9 million in the third quarter of 2019. The Bank experienced normal seasonal fluctuations in deposits, particularly from larger depositors, and managed its leverage ratio, primarily with the Insured Cash Sweep program, which had off-balance sheet quarter-end balances of $109 million, $106 million, and $82 million in the third quarter of 2018 and the second and third quarters of 2019, respectively. The average balance of noninterest-bearing demand deposit accounts increased from $249 million, or 44.8% of total deposits, in the third quarter of 2018 to $262 million, or 48.3% of total deposits in the second quarter of 2018, but decreased to $257 million, or 47.3% of total deposits, in the third quarter of 2019. The Bank's overall cost of funds increased slightly, from 0.17% in the third quarter of 2018 to 0.21% and 0.20% in second quarter and third quarter, respectively, of 2019.

"We continued to benefit from our strong reliable core funding in the third quarter of 2019, although we are seeing some migration of transitory interest-bearing balances into other asset classes as our clients redeploy funds derived from liquidity events," said Michael J. Winiarski, Chief Financial Officer. "Solid expense control also benefitted third quarter results."

PROVISION FOR CREDIT LOSSES

The provision for credit losses is a charge against current earnings in an amount determined by management to be necessary to maintain the allowance for loan losses at a level sufficient to absorb its estimate of probable credit losses incurred as of the balance sheet date using historical loss data and qualitative factors associated with the loan portfolio.

The Bank recorded no provision for loan losses in the third quarter of 2018, and no provisions for the second and third quarters of 2019, reflecting reductions in the level of criticized assets, changes in the mix of loan types within the portfolio and their respective historical loss rates, and management's assessment of the amounts expected to be realized from certain loans identified as impaired. Impaired loans totaled $181 thousand at September 30, 2019, compared to $240 thousand at June 30, 2019, and $3.3 million at September 30, 2018.

At September 30, 2019 and June 30, 2019, there were no non-performing loans in the Bank's loan portfolio; they totaled 0.60% of the total loans at September, 2018. At September 30, 2019, the allowance for loan losses was 1.33% of outstanding loans, compared to 1.36% at June 30, 2019 and 1.33% at September 30, 2018. The Bank recorded net recoveries of $9 thousand during the third quarter of 2019, compared to net recoveries of $12 thousand in each of the second quarter of 2019 and third quarter of 2018.

NON-INTEREST INCOME

Non-interest income recognized in the third quarter of 2019 totaled $605 thousand, including $93 thousand in gain on sale of loans and investments, compared to $528 thousand in the second quarter of 2019, and $471 thousand in the third quarter of 2018, without any gain on sale recognition. Overall, this represents a decrease in non-interest income other than gain on sales of $16 thousand, or 3.0%, compared to the second quarter of 2019, and an increase of $41 thousand, or 8.7%, compared to the third quarter of 2018.

Management has been actively seeking to increase non-interest income across a range of sources, including account analysis fees, lockbox service fees, and mortgage brokerage fees. On a year-to-date basis, non-interest income increased 10.9%, from $1.45 million to $1.61 million, including an 11.3% increase in service charges on deposits, from $221 thousand to $246 thousand, and a 99.3% increase in mortgage brokerage fees from $61 thousand to $121 thousand.

NON-INTEREST EXPENSES

Non-interest expenses of $3.96 million for the third quarter of 2019 represented a decrease of 7.1% from the previous quarter of $4.26 million and were essentially unchanged compared to $3.97 million recognized in the third quarter of 2018. Year-to-date 2019 non-interest expenses totaled $12.46 million, an increase of $606 thousand, or 5.1%, compared to $11.86 million for the first nine months of 2018.

Salaries and benefits decreased $248 thousand, or 9.2%, to $2.45 million in the third quarter of 2019 from $2.70 million in the second quarter of 2019 and decreased $30 thousand, or 1.2%, compared to $2.48 million in the third quarter of 2018. These decreases primarily reflect increased absorption of direct loan origination costs associated with higher lending volume and revisions to the standard costs the Bank uses to capitalize such costs. Occupancy costs increased to $372 thousand in the third quarter of 2019 compared to $326 thousand in the second quarter of 2019 due to rents and other costs incurred in establishing a new loan center in Santa Cruz and branch relocation costs in San Luis Obispo.

The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 60.0% for the third quarter of 2019, compared to 65.6% for the second quarter of 2019 and 62.4% for the third quarter of 2018. Annualized non-interest expenses as a percent of average total assets were 2.56%, 2.80%, and 2.56% for the third quarter of 2019, the second quarter of 2019, and the third quarter of 2018, respectively.

About 1st Capital Bank

The Bank's primary target markets are commercial enterprises, professionals, real estate investors, family business entities, and residents along the Central Coast Region of California. The Bank provides a wide range of credit products, including loans under various government programs such as those provided through the U.S. Small Business Administration ("SBA") and the U.S. Department of Agriculture ("USDA"). A full suite of deposit accounts is also furnished, complemented by robust cash management services. The Bank operates full service branch offices in Monterey, Salinas, King City, and San Luis Obispo and a loan production office in Santa Cruz County. The Bank's corporate offices are located at 150 Main Street, Suite 150, Salinas, California 93901. The Bank's website is 1stCapital.bank. The main telephone number is 831.264.4000. The primary facsimile number is 831.264.4001.

Member FDIC / Equal Opportunity Lender / SBA Preferred Lender

Forward-Looking Statements

Certain of the statements contained herein that are not historical facts are "forward-looking statements" within the meaning of and subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements may contain words or phrases including, but not limited, to: "believe," "expect," "anticipate," "intend," "estimate," "target," "plans," "may increase," "may fluctuate," "may result in," "are projected," and variations of those words and similar expressions. All such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected. Factors that might cause such a difference include, among other matters, changes in interest rates; economic conditions including inflation and real estate values in California and the Bank's market areas; governmental regulation and legislation; credit quality; competition affecting the Bank's businesses generally; the risk of natural disasters and future catastrophic events including terrorist related incidents and other factors beyond the Bank's control; and other factors. The Bank does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

This news release is available at the 1stCapital.bank internet site for no charge.

For further information, please contact:

Thomas E. Meyer
President and Chief Executive Officer
831.264.4057 office
Tom.Meyer@1stCapitalBank.com

Michael J. Winiarski
Chief Financial Officer
831.264.4014 office
Michael.Winiarski@1stCapitalBank.com

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 
September 30,
 
 
June 30,
 
 
March 31,
 
 
September 30,
 

Financial Condition Data1

 
2019
 
 
2019
 
 
2019
 
 
2018
 

Assets

 
 
 
 
 
 
 
 
 
 
 
 

Cash and due from banks

 
$
5,947
 
 
$
5,994
 
 
$
6,569
 
 
$
5,408
 

Funds held at the Federal Reserve Bank2

 
 
47,529
 
 
 
56,057
 
 
 
60,979
 
 
 
33,571
 

Time deposits at other financial institutions

 
 

 
 
 

 
 
 

 
 
 
996
 

Available-for-sale securities, at fair value

 
 
68,386
 
 
 
70,396
 
 
 
69,320
 
 
 
68,154
 

Loans receivable held for sale

 
 

 
 
 

 
 
 

 
 
 
1,000
 

Loans receivable held for investment:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Construction / land (including farmland)

 
 
18,602
 
 
 
18,014
 
 
 
20,189
 
 
 
22,396
 

Residential 1 to 4 units

 
 
141,907
 
 
 
144,336
 
 
 
139,765
 
 
 
147,205
 

Home equity lines of credit

 
 
7,158
 
 
 
7,920
 
 
 
8,676
 
 
 
7,853
 

Multifamily

 
 
54,324
 
 
 
53,561
 
 
 
54,586
 
 
 
53,984
 

Owner occupied commercial real estate

 
 
63,587
 
 
 
61,242
 
 
 
61,775
 
 
 
65,628
 

Investor commercial real estate

 
 
153,849
 
 
 
142,533
 
 
 
141,452
 
 
 
131,736
 

Commercial and industrial

 
 
38,801
 
 
 
39,603
 
 
 
42,098
 
 
 
38,672
 

Other loans

 
 
16,042
 
 
 
14,468
 
 
 
14,724
 
 
 
17,127
 

Total loans

 
 
494,270
 
 
 
481,677
 
 
 
483,265
 
 
 
484,601
 

Allowance for loan losses

 
 
(6,582
)
 
 
(6,572
)
 
 
(6,560
)
 
 
(6,435
)

Net loans

 
 
487,688
 
 
 
475,105
 
 
 
476,705
 
 
 
478,166
 

Premises and equipment, net

 
 
2,131
 
 
 
2,192
 
 
 
1,996
 
 
 
2,109
 

Bank owned life insurance

 
 
8,020
 
 
 
7,968
 
 
 
7,916
 
 
 
7,813
 

Investment in FHLB3 stock, at cost

 
 
3,501
 
 
 
3,501
 
 
 
3,163
 
 
 
3,163
 

Accrued interest receivable and other assets

 
 
14,254
 
 
 
9,577
 
 
 
7,780
 
 
 
6,255
 

Total assets

 
$
637,456
 
 
$
630,790
 
 
$
634,428
 
 
$
606,635
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Liabilities and shareholders' equity

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Deposits:

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noninterest bearing demand deposits

 
$
255,369
 
 
$
270,939
 
 
$
268,195
 
 
$
248,036
 

Interest bearing checking accounts

 
 
47,148
 
 
 
36,721
 
 
 
35,832
 
 
 
35,274
 

Money market deposits

 
 
140,515
 
 
 
134,108
 
 
 
134,044
 
 
 
139,037
 

Savings deposits

 
 
103,224
 
 
 
100,049
 
 
 
110,877
 
 
 
109,530
 

Time deposits

 
 
19,399
 
 
 
19,694
 
 
 
18,953
 
 
 
16,010
 

Total deposits

 
 
565,655
 
 
 
561,511
 
 
 
567,901
 
 
 
547,887
 

Accrued interest payable and other liabilities

 
 
5,466
 
 
 
5,305
 
 
 
4,818
 
 
 
2,344
 

Shareholders' equity

 
 
66,335
 
 
 
63,974
 
 
 
61,709
 
 
 
56,404
 

Total liabilities and shareholders' equity

 
$
637,456
 
 
$
630,790
 
 
$
634,428
 
 
$
606,635
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Shares outstanding

 
 
5,142,536
 
 
 
5,124,892
 
 
 
5,118,759
 
 
 
5,041,058
 

Nominal and tangible book value per share

 
$
12.90
 
 
$
12.48
 
 
$
12.06
 
 
$
11.19
 

Ratio of net loans to total deposits

 
 
86.22
%
 
 
84.61
%
 
 
83.94
%
 
 
87.27
%

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1 = Loans receivable held for investment are presented according to definitions applicable to the regulatory Call Report.
2 = Includes cash letters in the process of collection settled through the Federal Reserve Bank.
3 = Federal Home Loan Bank
4 = Some items in prior periods have been reclassified to conform to the current presentation.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 
Three Months Ended
 

 

 
September 30,
 
 
June 30,
 
 
March 31,
 
 
September 30,
 

Operating Results Data

 
2019
 
 
2019
 
 
2019
 
 
2018
 

Interest and dividend income

 
 
 
 
 
 
 
 
 
 
 
 

Loans

 
$
5,578
 
 
$
5,570
 
 
$
5,681
 
 
$
5,448
 

Investment securities

 
 
442
 
 
 
457
 
 
 
456
 
 
 
404
 

Federal Home Loan Bank stock

 
 
62
 
 
 
59
 
 
 
56
 
 
 
54
 

Other

 
 
187
 
 
 
166
 
 
 
259
 
 
 
222
 

Total interest and dividend income

 
 
6,269
 
 
 
6,252
 
 
 
6,452
 
 
 
6,128
 

Interest expense

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest bearing checking

 
 
3
 
 
 
3
 
 
 
3
 
 
 
3
 

Money market deposits

 
 
125
 
 
 
140
 
 
 
129
 
 
 
123
 

Savings deposits

 
 
88
 
 
 
85
 
 
 
91
 
 
 
80
 

Time deposits

 
 
62
 
 
 
54
 
 
 
49
 
 
 
28
 

Total interest expense on deposits

 
 
278
 
 
 
282
 
 
 
272
 
 
 
234
 

Interest expense on borrowings

 
 

 
 
 

 
 
 

 
 
 

 

Total interest expense

 
 
278
 
 
 
282
 
 
 
272
 
 
 
234
 

Net interest income

 
 
5,991
 
 
 
5,970
 
 
 
6,180
 
 
 
5,894
 

Provision for loan losses

 
 

 
 
 

 
 
 

 
 
 

 

Net interest income after provision

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

for loan losses

 
 
5,991
 
 
 
5,970
 
 
 
6,180
 
 
 
5,894
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Noninterest income

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Service charges on deposits

 
 
88
 
 
 
82
 
 
 
76
 
 
 
78
 

BOLI dividend income

 
 
52
 
 
 
52
 
 
 
51
 
 
 
54
 

Gain on sale of loans

 
 
33
 
 
 

 
 
 
8
 
 
 

 

Gain on sale of investments

 
 
60
 
 
 

 
 
 

 
 
 

 

Other

 
 
372
 
 
 
394
 
 
 
339
 
 
 
339
 

Total noninterest income

 
 
605
 
 
 
528
 
 
 
474
 
 
 
471
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 
Three Months Ended
 

 

 
September 30,
 
 
June 30,
 
 
March 31,
 
 
September 30,
 

 

 
2019
 
 
2019
 
 
2019
 
 
2018
 

Noninterest expenses

 
 
 
 
 
 
 
 
 
 
 
 

Salaries and benefits

 
 
2,452
 
 
 
2,700
 
 
 
2,674
 
 
 
2,482
 

Occupancy

 
 
372
 
 
 
326
 
 
 
306
 
 
 
299
 

Data and item processing

 
 
220
 
 
 
284
 
 
 
215
 
 
 
204
 

Furniture and equipment

 
 
150
 
 
 
142
 
 
 
157
 
 
 
137
 

Professional services

 
 
143
 
 
 
108
 
 
 
130
 
 
 
161
 

Provision for unfunded loan

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

commitments

 
 
(7
)
 
 
(8
)
 
 
(15
)
 
 
4
 

Other

 
 
630
 
 
 
711
 
 
 
773
 
 
 
682
 

Total noninterest expenses

 
 
3,960
 
 
 
4,263
 
 
 
4,240
 
 
 
3,969
 

Income before provision for income taxes

 
 
2,636
 
 
 
2,235
 
 
 
2,414
 
 
 
2,396
 

Provision for income taxes

 
 
698
 
 
 
597
 
 
 
638
 
 
 
654
 

Net income

 
$
1,938
 
 
$
1,638
 
 
$
1,776
 
 
$
1,742
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Common Share Data1

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Earnings per common share

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
$
0.38
 
 
$
0.32
 
 
$
0.35
 
 
$
0.35
 

Diluted

 
$
0.37
 
 
$
0.31
 
 
$
0.34
 
 
$
0.34
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Weighted average common shares outstanding

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Basic

 
 
5,133,324
 
 
 
5,120,053
 
 
 
5,110,382
 
 
 
5,038,340
 

Diluted

 
 
5,213,558
 
 
 
5,207,230
 
 
 
5,186,796
 
 
 
5,147,292
 

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 7% stock dividend to shareholders of record November 21, 2018 and paid December 14, 2018.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 
Nine Months Ended
 

 

 
September 30,
 
 
September 30,
 

Operating Results Data

 
2019
 
 
2018
 

Interest and dividend income

 
 
 
 
 
 

Loans

 
$
16,829
 
 
$
15,310
 

Investment securities

 
 
1,355
 
 
 
1,154
 

Federal Home Loan Bank stock

 
 
177
 
 
 
166
 

Other

 
 
612
 
 
 
538
 

Total interest and dividend income

 
 
18,973
 
 
 
17,168
 

Interest expense

 
 
 
 
 
 
 
 

Interest bearing checking

 
 
9
 
 
 
11
 

Money market deposits

 
 
394
 
 
 
277
 

Savings deposits

 
 
264
 
 
 
224
 

Time deposits

 
 
165
 
 
 
51
 

Total interest expense in deposits

 
 
832
 
 
 
563
 

Interest expense on borrowings

 
 

 
 
 
3
 

Total interest expense

 
 
832
 
 
 
566
 

Net interest income

 
 
18,141
 
 
 
16,602
 

Provision for loan losses

 
 

 
 
 
20
 

Net interest income after provision for loan losses

 
 
18,141
 
 
 
16,582
 

 

 
 
 
 
 
 
 
 

Noninterest income

 
 
 
 
 
 
 
 

Service charges on deposits

 
 
246
 
 
 
221
 

BOLI dividend income

 
 
155
 
 
 
159
 

Gain on sale of loans

 
 
41
 
 
 
135
 

Gain on sale of investments

 
 
60
 
 
 

 

Other

 
 
1,105
 
 
 
934
 

Total noninterest income

 
 
1,607
 
 
 
1,449
 

 

 

 
 
 
 
 
 
 
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 

 
Nine Months Ended
 

 

 
September 30,
 
 
September 30,
 

 

 
2019
 
 
2018
 

Noninterest expenses

 
 
 
 
 
 

Salaries and benefits

 
 
7,826
 
 
 
7,546
 

Occupancy

 
 
1,004
 
 
 
877
 

Data and item processing

 
 
719
 
 
 
598
 

Furniture and equipment

 
 
449
 
 
 
386
 

Professional services

 
 
381
 
 
 
431
 

Provision for unfunded loan commitments

 
 
(30
)
 
 
(2
)

Other

 
 
2,114
 
 
 
2,021
 

Total noninterest expenses

 
 
12,463
 
 
 
11,857
 

Income before provision for income taxes

 
 
7,285
 
 
 
6,174
 

Provision for income taxes

 
 
1,933
 
 
 
1,683
 

Net income

 
$
5,352
 
 
$
4,491
 

 

 
 
 
 
 
 
 
 

Common Share Data1

 
 
 
 
 
 
 
 

Earnings per common share

 
 
 
 
 
 
 
 

Basic

 
$
1.05
 
 
$
0.89
 

Diluted

 
$
1.03
 
 
$
0.88
 

 

 
 
 
 
 
 
 
 

Weighted average common shares outstanding
 
 
 
 
 
 

Basic

 
 
5,121,337
 
 
 
5,028,800
 

Diluted

 
 
5,202,626
 
 
 
5,129,624
 

 

 
 
 
 
 
 
 
 

1 = Earnings per common share and weighted average common shares outstanding have been restated to reflect the effect of the 7% stock dividend to shareholders of record November 21, 2018 and paid December 14, 2018.

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
 
September 30,
 
 
June 30,
 
 
March 31,
 
 
September,
 

 
 
2019
 
 
2019
 
 
2019
 
 
2018
 

Asset Quality

 
 
 
 
 
 
 
 
 
 
 
 

Loans past due 90 days or more and accruing

 
 
 
 
 
 
 
 
 
 
 
 

interest

 
$

 
 
$

 
 
$

 
 
$

 

Nonaccrual restructured loans

 
 

 
 
 

 
 
 

 
 
 

 

Other nonaccrual loans

 
 

 
 
 

 
 
 

 
 
 
2,906
 

Other real estate owned

 
 

 
 
 

 
 
 

 
 
 

 

 

 
$

 
 
$

 
 
$

 
 
$
2,906
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Allowance for loan losses to total loans

 
 
1.33
%
 
 
1.36
%
 
 
1.36
%
 
 
1.33
%

Allowance for loan losses to nonperforming loans

 
 
n/a
 
 
 
n/a
 
 
 
n/a
 
 
 
221.44
%

Nonaccrual loans to total loans

 
 
0.00
%
 
 
0.00
%
 
 
0.00
%
 
 
0.60
%

Nonperforming assets to total assets

 
 
0.00
%
 
 
0.00
%
 
 
0.00
%
 
 
0.48
%

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Regulatory Capital and Ratios

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Common equity tier 1 capital

 
$
65,536
 
 
$
63,446
 
 
$
61,585
 
 
$
57,166
 

Tier 1 regulatory capital

 
$
65,536
 
 
$
63,446
 
 
$
61,585
 
 
$
57,166
 

Total regulatory capital

 
$
71,377
 
 
$
69,077
 
 
$
67,209
 
 
$
62,747
 

Tier 1 leverage ratio

 
 
10.67
%
 
 
10.40
%
 
 
9.79
%
 
 
9.35
%

Common equity tier 1 risk based capital ratio

 
 
14.05
%
 
 
14.12
%
 
 
13.72
%
 
 
12.83
%

Tier 1 risk based capital ratio

 
 
14.05
%
 
 
14.12
%
 
 
13.72
%
 
 
12.83
%

Total risk based capital ratio

 
 
15.30
%
 
 
15.37
%
 
 
14.97
%
 
 
14.09
%

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 
Three Months Ended
 

 

 
September 30,
 
 
June 30,
 
 
March 31,
 
 
September 30,
 

Selected Financial Ratios1

 
2019
 
 
2019
 
 
2019
 
 
2018
 

Return on average total assets

 
 
1.25
%
 
 
1.08
%
 
 
1.15
%
 
 
1.12
%

Return on average shareholders' equity

 
 
11.79
%
 
 
10.47
%
 
 
11.95
%
 
 
12.38
%

Net interest margin2

 
 
4.05
%
 
 
4.06
%
 
 
4.12
%
 
 
3.91
%

Net interest income to average total assets

 
 
3.87
%
 
 
3.92
%
 
 
3.99
%
 
 
3.80
%

Efficiency ratio

 
 
60.04
%
 
 
65.58
%
 
 
63.73
%
 
 
62.36
%

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.
2 = Net interest margin calculated on a tax equivalent yield basis. Prior periods have been updated to conform to current presentation.

 

 
Three Months Ended
 

 

 
September 30,
 
 
June 30,
 
 
March 31,
 
 
September 30,
 

Selected Average Balances

 
2019
 
 
2019
 
 
2019
 
 
2018
 

Gross loans

 
$
481,402
 
 
$
484,676
 
 
$
487,838
 
 
$
480,621
 

Investment securities

 
 
68,949
 
 
 
70,033
 
 
 
69,553
 
 
 
70,152
 

Federal Home Loan Bank stock

 
 
3,501
 
 
 
3,415
 
 
 
3,163
 
 
 
3,163
 

Other interest earning assets

 
 
35,220
 
 
 
34,233
 
 
 
50,778
 
 
 
46,534
 

Total interest earning assets

 
$
589,072
 
 
$
592,357
 
 
$
611,332
 
 
$
600,470
 

Total assets

 
$
614,674
 
 
$
610,453
 
 
$
628,320
 
 
$
615,388
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Interest bearing checking accounts

 
$
42,295
 
 
$
36,569
 
 
$
34,268
 
 
$
34,883
 

Money market deposits

 
 
113,151
 
 
 
125,529
 
 
 
127,764
 
 
 
140,443
 

Savings deposits

 
 
111,502
 
 
 
99,517
 
 
 
107,158
 
 
 
117,023
 

Time deposits

 
 
19,933
 
 
 
18,759
 
 
 
18,099
 
 
 
15,216
 

Total interest bearing deposits

 
 
286,881
 
 
 
280,374
 
 
 
287,289
 
 
 
307,565
 

Noninterest bearing demand deposits

 
 
256,989
 
 
 
262,225
 
 
 
275,956
 
 
 
249,488
 

Total deposits

 
$
543,870
 
 
$
542,599
 
 
$
563,245
 
 
$
557,053
 

Borrowings

 
$

 
 
$

 
 
$

 
 
$

 

Shareholders' equity

 
$
65,219
 
 
$
62,740
 
 
$
60,286
 
 
$
55,858
 

1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 

 
Nine Months Ended
 

 

 
September 30,
 
 
September 30,
 

Selected Financial Ratios

 
2019
 
 
2018
 

Return on average total assets

 
 
1.16
%
 
 
1.01
%

Return on average shareholders' equity

 
 
11.40
%
 
 
11.08
%

Net interest margin2

 
 
4.08
%
 
 
3.83
%

Net interest income to average total assets

 
 
3.93
%
 
 
3.72
%

Efficiency ratio

 
 
63.11
%
 
 
65.69
%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.
2 = Net interest margin calculated on a tax equivalent yield basis. Prior periods have been updated to conform to current presentation.

 

 
Six Months Ended
 

 

 
September 30,
 
 
September 30,
 

Selected Average Balances

 
2019
 
 
2018
 

Gross loans

 
$
484,615
 
 
$
460,685
 

Investment securities

 
 
69,510
 
 
 
71,496
 

Federal Home Loan Bank stock

 
 
3,361
 
 
 
3,163
 

Other interest earning assets

 
 
40,020
 
 
 
46,897
 

Total interest earning assets

 
$
597,506
 
 
$
582,241
 

Total assets

 
$
617,766
 
 
$
596,937
 

Interest bearing checking accounts

 
$
37,740
 
 
$
34,917
 

Money market deposits

 
 
122,094
 
 
 
126,721
 

Savings deposits

 
 
106,075
 
 
 
119,424
 

Time deposits

 
 
18,937
 
 
 
13,517
 

Total interest bearing deposits

 
 
284,846
 
 
 
294,579
 

Noninterest bearing demand deposits

 
 
264,987
 
 
 
245,491
 

Total deposits

 
$
549,833
 
 
$
540,070
 

Borrowings

 
$

 
 
$
308
 

Shareholders' equity

 
$
62,767
 
 
$
54,186
 

 

SOURCE: 1st Capital Bank

ReleaseID: 564914

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