SALINAS, CA / ACCESSWIRE / August 2, 2019 / 1st Capital Bank (OTC Pink:FISB) reported unaudited net income of $1.64 million for the three months ended June 30, 2019, compared to net income of $1.51 million for the three months ended June 30, 2018 and net income of $1.78 million for the three months ended March 31, 2019, the immediately preceding quarter. Earnings per share were $0.31 (diluted), compared to $0.34 (diluted) for the prior quarter.
For the three months ended June 30, 2019, the Bank’s return on average assets was 1.08%, compared to 1.15% for the three months ended March 31, 2019, and 1.03% for the three months ended June 30, 2018. Return on average equity was 10.47% for the three months ended June 30, 2019, compared to 11.95% for the three months ended March 31, 2019, and 11.25% for the three months ended June 30, 2018.
“Our continued focus on our low cost deposit base has enabled us to maintain a disciplined credit culture resulting in excellent asset quality and a strong level of risk-adjusted profitability and shareholder returns,” said Thomas E. Meyer, president and chief executive officer. “Our recent additions of experienced relationship managers who are being integrated into the Bank’s culture are now developing additional lending opportunities for the second half of 2019.”
Unaudited net income for the six-month period ended June 30, 2019 increased 24.2% to $3.41 million, compared to $2.75 million for the six-month period ended June 30, 2018. Pre-tax income increased 23.1%, to $4.65 million for the six-month period ended June 30, 2019 from $3.78 million for the six-month period ended June 30, 2018. Quarterly net income increased $128 thousand, or 8.5%, year-over-year, compared to net income of $1.51 million recognized in the second quarter of 2018, and decreased $138 thousand, or 7.8%, sequentially, compared to net income of $1.78 million recognized for the first quarter of 2019.
Net interest margin increased from 3.84% in the second quarter of 2018 to 4.04% in the second quarter of 2019, but decreased slightly from 4.10% in the first quarter of 2019. The Bank’s average net loans-to-deposits ratio was relatively unchanged at 84.8% in the second quarter of 2018, 83.9% in the first quarter of 2019, and 84.6% in the second quarter of 2019. Average gross loans outstanding increased $25 million, or 5.4%, year-over-year, from $460 million to $485 million, but decreased $3.2 million, or 0.6%, sequentially. Net interest income before provision for loan losses for the three-month period ended June 30, 2019 was $5.97 million, a sequential decrease of $210 thousand, or 3.4%, compared to $6.18 million recognized in the three-month period ended March 31, 2019. The Bank’s cost of funds increased to 0.21% for the second quarter of 2019, compared to 0.13% for the second quarter of 2018 and 0.20% for the first quarter of 2019. On a year-over-year basis, quarterly net interest income before provision for loan losses increased $470 thousand, or 8.6%, from $5.50 million recognized in the second quarter of 2018.
In the second quarter of 2019, the gross loan portfolio decreased $1.6 million, or 0.3%, from $483.3 million as of March 31, 2019 to $481.7 million as of June 30, 2019. Year over year, the gross loan portfolio increased $7.6 million, or 1.6%, from $474.1 million as of June 30, 2018. The second quarter decrease resulted primarily from a $2.5 million, or 5.9%, reduction in commercial and industrial loans from $42.1 million as of March 31, 2019 to $39.6 million as of June 30, 2019; which yielded 6.02% in the second quarter compared to 5.87% in the first quarter of 2019. The payoff of an adversely graded credit contributed to the decrease in commercial and industrial loans. Commercial real estate loans were essentially unchanged during the quarter at $257.3 million as of June 30, 2019, compared to $257.8 million as of March 31, 2019; and yielded 4.93% during the second quarter of 2019 compared to 4.91% during the first quarter of 2019. The single-family residential portfolio, which consists primarily of purchased loans, and to a lesser extent home equity lines of credit, increased $3.8 million, or 2.6%, from $148.4 million as of March 31, 2019 to $152.2 million as of June 30, 2019. The Bank’s single-family residential loan portfolio yielded 3.49% in the first quarter of 2019, and 3.44% in second quarter of 2019, due to the accelerated amortization of premiums on purchased mortgages due to early payoffs. The yield on the loan portfolio increased from 4.44% in the second quarter of 2018 to 4.72% in the first quarter of 2019, but decreased to 4.61% in the second quarter of 2019.
Non-interest income for the six-month period ended June 30, 2019 increased 2.4% to $1.00 million, compared to $978 thousand for the six-month period ended June 30, 2018. Quarterly non-interest income decreased $69 thousand, or 11.6%, year-over-year to $528 thousand, compared to non-interest income of $597 thousand recognized in the second quarter of 2018, and increased $54 thousand, or 11.4%, sequentially, compared to non-interest income of $474 thousand recognized for the first quarter of 2019.
Non-interest expenses for the six-month period ended June 30, 2019 increased 7.8% to $8.50 million, compared to $7.89 million for the six-month period ended June 30, 2018. Quarterly non-interest expenses increased $257 thousand, or 6.4%, year-over-year to $4.26 million, compared to non-interest expenses of $4.01 million recognized in the second quarter of 2018, and increased $23 thousand, or 0.5%, sequentially, compared to non-interest expenses of $4.24 million recognized for the first quarter of 2019.
NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
Net interest income before provision for credit losses was $5.97 million in the second quarter of 2019, an increase of $470 thousand, or 8.6%, compared to $5.50 million in the second quarter of 2018, and a decrease of $210 thousand, or 3.4% compared to $6.18 million in the first quarter of 2019.
Average earning assets were $592 million during the second quarter of 2019, a decrease of 3.1% compared to $611 million in the first quarter of 2019 and an increase of 3.0% compared to $575 million in the second quarter of 2018. The yield on earning assets was 4.23% in the second quarter of 2019, compared to 3.96% in the second quarter of 2018 and 4.28% in the first quarter of 2019. The decrease in asset yield from the first quarter was primarily due to a decrease in the yield on average loans outstanding, which was 4.44%, 4.72% and 4.61%, in the second quarter of 2018, the first quarter of 2019, and the second quarter of 2019, respectively. The average balance of loans outstanding decreased 0.6% from $488 million in the first quarter of 2019 to $485 million in the second quarter of 2019, but increased 5.4% from a $460 million average in the second quarter of 2018. The average balance of the investment portfolio remained relatively constant at $70.5 million in the second quarter of 2018, $69.6 million in the first quarter of 2019, and $70.0 million in the second quarter of 2019, as contemplated by the Bank’s business plan. The yield on the investment portfolio increased from 2.18% in the second quarter of 2018 to 2.66% in the first quarter of 2019, but decreased slightly to 2.62% in the second quarter of 2019. The average balances of other interest-earnings assets (exclusive of Federal Home Loan Bank stock) declined from $41 million in the second quarter of 2018 and $51 million in the first quarter of 2019, to $34 million in the second quarter of 2019, while their yield was 1.38%, 2.08%, and 1.93% for the respective quarters.
The cost of interest-bearing liabilities increased from 0.24% in the second quarter of 2018 to 0.38% in the first quarter of 2019, and to 0.40% in the second quarter of 2019, while the average balance of interest-bearing liabilities decreased from $292 million in the second quarter of 2018 to $287 million in the first quarter of 2019, and to $280 million in the second quarter of 2019. During the past twelve months, the Bank managed its leverage ratio, primarily with Promontory Interfinancial Network’s Insured Cash Sweep (“ICS”) program, which had off-balance sheet quarter-end balances of $98 million, $113 million, and $106 million as of June 30, 2018, March 31, 2019, and June 30, 2019, respectively. The balances reflect a significant liquidity event experienced by a Bank depositor in early 2018, as well as continued interest on the part of large depositors in the program. These funds may be moved back into the Bank’s deposit portfolio at the Bank’s discretion, and reciprocal deposits on the Bank’s balance sheet as of June 30, 2018, March 31, 2019, and June 30, 2019 totaled $32 million, $20 million, and $20 million, respectively. The average balance of noninterest-bearing demand deposit accounts increased from $242 million, or 45.3% of total deposits, in the second quarter of 2018 to $276 million, or 49.0% of total deposits, in the first quarter of 2019, and decreased to $262 million, or 48.3% of total deposits, in the second quarter of 2019, consistent with the normal seasonal pattern of the Bank’s deposits. The Bank’s overall cost of funds increased from 0.13% in the second quarter of 2018 to 0.20% in the first quarter of 2019 and 0.21% in the second quarter of 2019.
“We are pleased to report that we succeeded in maintaining our superior cost of funds despite competitive pressures to increase rates on deposits during the first half of 2019,” said Michael J. Winiarski, chief financial officer. “In the second quarter, we entered into facilities leases that will provide a physical lending presence in Santa Cruz County and a more visible branch presence in San Luis Obispo to support our ongoing geographic expansion and additional access to low-cost funding sources.”
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 management’s estimate of probable incurred credit losses inherent in the loan portfolio as of the balance sheet date in light of losses historically incurred by the Bank and adjusted for qualitative factors associated with the loan portfolio.
For the six-month period ended June 30, 2019 the Bank recorded no provision for loan losses, compared to a provision of $20 thousand in the six-month period ended June 30, 2018. The Bank recorded no provisions for loan losses in the second quarter of 2019, none in the first quarter of 2019, and none in the second quarter of 2018.
Changes in the provision reflect declines in the levels of problem assets, offset by the growth of the portfolio, changes in the mix of loan types within the portfolio and their respective loss histories, as well as management’s assessment of the amounts expected to be realized from certain loans identified as impaired. Impaired loans totaled $240 thousand as of June 30, 2019, compared to $279 thousand as of March 31, 2019, and $3.8 million as of June 30, 2018.
As of June 30, 2019, as well as of March 31, 2019, there were no non-performing loans in the Bank’s loan portfolio, compared to 0.04% at June 30, 2018. As of June 30, 2019, the allowance for loan losses was 1.36% of outstanding loans, compared to 1.35% as of June 30, 2018 and 1.36% at March 31, 2019, respectively. The Bank recorded net recoveries of $12 thousand in the second quarter of 2019, compared to net recoveries of $13 thousand and $12 thousand in the second quarter of 2018 and the first quarter of 2019, respectively.
NON-INTEREST INCOME
Year-to-date non-interest income increased $24 thousand, or 2.4%, from $978 thousand in the six-month period ended June 30, 2018 to $1,002 thousand in the six-month period ended June 30, 2019. Non-interest income recognized in the second quarter of 2019 was $528 thousand, compared to $597 thousand in the second quarter of 2018, which included $65 thousand in gain on sale of Small Business Administration (“SBA”) guaranteed loans, and $474 thousand in the first quarter of 2019, which included gain on sale of loans of $8 thousand. This represents a decrease of $69 thousand, or 11.6%, compared to the second quarter of 2018, and an increase of $54 thousand, or 11.4%, compared to the first quarter of 2019.
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, the increase in non-interest income included a 10.6% increase in service charges on deposits, including lockbox and analysis fees, from $143 thousand to $158 thousand; an 11.9% increase in mortgage referral fees from $58 thousand to $64 thousand; and a 28.5% increase in other income, from $412 thousand to $530 thousand, primarily attributable to increased participation in the ICS program, for the six-month periods ended June 30, 2018 and 2019, respectively.
NON-INTEREST EXPENSES
Non-interest expenses increased $23 thousand, or 0.5%, to $4.26 million in the second quarter of 2019, compared to $4.24 million for the first quarter of 2019, and increased $257 thousand, or 6.4%, compared to $4.01 million recognized in the second quarter of 2018.
Salaries and benefits increased $26 thousand, or 1.0%, to $2.70 million for the second quarter of 2019, compared to $2.67 million for the first quarter of 2019, and increased $117 thousand, or 4.5%, compared to $2.58 million recognized in the second quarter of 2018. The increase reflects a 4.5% increase in headcount from 85 employees as of June 30, 2018 to 89 employees as of June 30, 2019, primarily for new relationship managers and SBA loan production professionals. The increase in headcount, together with annual salary increases effective April 1, 2019, drove a $216 thousand, or 11.6%, increase in base salaries from $1.87 million in the second quarter of 2018 to $2.08 million in the second quarter of 2019. Sequentially, base salaries increased $207 thousand, or 11.0%, from $1.88 million in the first quarter of 2019 to $2.08 million in the second quarter. Accruals for stock-based and cash incentive compensation for employees totaled $365 thousand in the second quarter of 2019, a decrease of $17 thousand, or 4.5%, compared to $382 thousand in the second quarter of 2018 and a decrease of $19 thousand, or 5.0%, compared to $384 thousand in the first quarter of 2019.
The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 65.6% for the second quarter of 2019, compared to 65.7% for the second quarter of 2018 and 63.7% for the first quarter of 2019. Annualized non-interest expenses as a percent of average total assets were 2.72%, 2.74%, and 2.80% for the second quarter of 2018, the first quarter of 2019, and the second quarter of 2019, respectively.
PROVISION FOR INCOME TAXES
The Bank’s effective book tax rate was 26.7% in the second quarter of 2019, compared to 27.8% for the second quarter of 2018 and 26.4% for the first quarter of 2019.
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 | Equal Housing 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
or
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)
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| Financial Condition Data1 | 2019 | 2019 | 2018 | 2018 | ||||||||||||
| Assets | ||||||||||||||||
| Cash and due from banks | $ | 5,994 | $ | 6,569 | $ | 6,476 | $ | 5,078 | ||||||||
| Funds held at the Federal Reserve Bank2 | 56,057 | 60,979 | 45,625 | 45,124 | ||||||||||||
| Time deposits at other financial institutions | - | - | - | 996 | ||||||||||||
| Available-for-sale securities, at fair value | 70,396 | 69,320 | 70,263 | 71,102 | ||||||||||||
| Loans receivable held for sale | - | - | - | 1,000 | ||||||||||||
| Loans receivable held for investment: | ||||||||||||||||
| Construction / land (including farmland) | 18,014 | 20,189 | 21,353 | 16,866 | ||||||||||||
| Residential 1 to 4 units | 144,336 | 139,765 | 150,677 | 140,124 | ||||||||||||
| Home equity lines of credit | 7,920 | 8,676 | 8,008 | 6,655 | ||||||||||||
| Multifamily | 53,561 | 54,586 | 53,181 | 56,101 | ||||||||||||
| Owner occupied commercial real estate | 61,242 | 61,775 | 62,976 | 64,048 | ||||||||||||
| Investor commercial real estate | 142,533 | 141,452 | 139,261 | 128,289 | ||||||||||||
| Commercial and industrial | 39,603 | 42,098 | 38,745 | 45,051 | ||||||||||||
| Other loans | 14,468 | 14,724 | 13,189 | 16,956 | ||||||||||||
| Total loans | 481,677 | 483,265 | 487,390 | 474,090 | ||||||||||||
| Allowance for loan losses | (6,572) | (6,560) | (6,548) | (6,423) | ||||||||||||
| Net loans | 475,105 | 476,705 | 480,842 | 467,667 | ||||||||||||
| Premises and equipment, net | 2,192 | 1,996 | 2,087 | 2,239 | ||||||||||||
| Bank owned life insurance | 7,968 | 7,916 | 7,866 | 7,759 | ||||||||||||
| Investment in FHLB3 stock, at cost | 3,501 | 3,163 | 3,163 | 3,163 | ||||||||||||
| Accrued interest receivable and other assets | 9,577 | 7,780 | 5,965 | 5,512 | ||||||||||||
| Total assets | $ | 630,790 | $ | 634,428 | $ | 622,287 | $ | 609,640 | ||||||||
| Liabilities and shareholders' equity | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Noninterest bearing demand deposits | $ | 270,939 | $ | 268,195 | $ | 281,695 | $ | 247,247 | ||||||||
| Interest bearing checking accounts | 36,721 | 35,832 | 33,144 | 31,693 | ||||||||||||
| Money market deposits | 134,108 | 134,044 | 129,064 | 144,069 | ||||||||||||
| Savings deposits | 100,049 | 110,877 | 99,340 | 117,155 | ||||||||||||
| Time deposits | 19,694 | 18,953 | 17,254 | 12,717 | ||||||||||||
| Total deposits | 561,511 | 567,901 | 560,497 | 552,881 | ||||||||||||
| Accrued interest payable and other liabilities | 5,305 | 4,818 | 2,625 | 2,093 | ||||||||||||
| Shareholders' equity | 63,974 | 61,709 | 59,165 | 54,666 | ||||||||||||
| Total liabilities and shareholders' equity | $ | 630,790 | $ | 634,428 | $ | 622,287 | $ | 609,640 | ||||||||
| Shares outstanding | 5,124,892 | 5,118,759 | 5,105,784 | 5,035,423 | ||||||||||||
| Nominal and tangible book value per share | $ | 12.48 | $ | 12.06 | $ | 11.59 | $ | 10.86 | ||||||||
| Ratio of net loans to total deposits | 84.61 | % | 83.94 | % | 85.79 | % | 84.59 | % | ||||||||
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 | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| Operating Results Data | 2019 | 2019 | 2018 | 2018 | ||||||||||||
| Interest and dividend income | ||||||||||||||||
| Loans | $ | 5,570 | $ | 5,681 | $ | 5,611 | $ | 5,093 | ||||||||
| Investment securities | 457 | 456 | 436 | 382 | ||||||||||||
| Federal Home Loan Bank stock | 59 | 56 | 107 | 54 | ||||||||||||
| Other | 166 | 259 | 236 | 143 | ||||||||||||
| Total interest and dividend income | 6,252 | 6,452 | 6,390 | 5,672 | ||||||||||||
| Interest expense | ||||||||||||||||
| Interest bearing checking | 3 | 3 | 4 | 3 | ||||||||||||
| Money market deposits | 140 | 129 | 134 | 81 | ||||||||||||
| Savings deposits | 85 | 91 | 81 | 74 | ||||||||||||
| Time deposits | 54 | 49 | 41 | 14 | ||||||||||||
| Total interest expense on deposits | 282 | 272 | 260 | 172 | ||||||||||||
| Interest expense on borrowings | - | - | - | - | ||||||||||||
| Total interest expense | 282 | 272 | 260 | 172 | ||||||||||||
| Net interest income | 5,970 | 6,180 | 6,130 | 5,500 | ||||||||||||
| Provision for loan losses | - | - | 100 | - | ||||||||||||
| Net interest income after provision | ||||||||||||||||
| for loan losses | 5,970 | 6,180 | 6,030 | 5,500 | ||||||||||||
| Noninterest income | ||||||||||||||||
| Service charges on deposits | 82 | 76 | 78 | 72 | ||||||||||||
| BOLI dividend income | 52 | 51 | 53 | 53 | ||||||||||||
| Gain on sale of loans | - | 8 | 59 | 65 | ||||||||||||
| Other | 394 | 339 | 351 | 407 | ||||||||||||
| Total noninterest income | 528 | 474 | 541 | 597 | ||||||||||||
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
| Three Months Ended | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| 2019 | 2019 | 2018 | 2018 | |||||||||||||
| Noninterest expenses | ||||||||||||||||
| Salaries and benefits | 2,700 | 2,674 | 2,523 | 2,583 | ||||||||||||
| Occupancy | 326 | 306 | 292 | 288 | ||||||||||||
| Data and item processing | 284 | 215 | 193 | 197 | ||||||||||||
| Furniture and equipment | 142 | 157 | 116 | 123 | ||||||||||||
| Professional services | 108 | 130 | 119 | 132 | ||||||||||||
| Provision for unfunded loan | ||||||||||||||||
| commitments | (8 | ) | (15 | ) | 10 | - | ||||||||||
| Other | 711 | 773 | 633 | 683 | ||||||||||||
| Total noninterest expenses | 4,263 | 4,240 | 3,886 | 4,006 | ||||||||||||
| Income before provision for income taxes | 2,235 | 2,414 | 2,685 | 2,091 | ||||||||||||
| Provision for income taxes | 597 | 638 | 745 | 581 | ||||||||||||
| Net income | $ | 1,638 | $ | 1,776 | $ | 1,940 | $ | 1,510 | ||||||||
| Common Share Data1 | ||||||||||||||||
| Earnings per common share | ||||||||||||||||
| Basic | $ | 0.32 | $ | 0.35 | $ | 0.38 | $ | 0.30 | ||||||||
| Diluted | $ | 0.31 | $ | 0.34 | $ | 0.38 | $ | 0.29 | ||||||||
| Weighted average common shares outstanding | ||||||||||||||||
| Basic | 5,120,053 | 5,110,382 | 5,081,260 | 5,028,336 | ||||||||||||
| Diluted | 5,207,230 | 5,186,796 | 5,166,613 | 5,130,832 | ||||||||||||
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)
| Six Months Ended | ||||||||
| June 30, | June 30, | |||||||
| Operating Results Data | 2019 | 2018 | ||||||
| Interest and dividend income | ||||||||
| Loans | $ | 11,251 | $ | 9,862 | ||||
| Investment securities | 913 | 749 | ||||||
| Federal Home Loan Bank stock | 115 | 110 | ||||||
| Other | 425 | 317 | ||||||
| Total interest and dividend income | 12,704 | 11,038 | ||||||
| Interest expense | ||||||||
| Interest bearing checking | 6 | 7 | ||||||
| Money market deposits | 269 | 153 | ||||||
| Savings deposits | 176 | 144 | ||||||
| Time deposits | 103 | 23 | ||||||
| Total interest expense in deposits | 554 | 327 | ||||||
| Interest expense on borrowings | - | 3 | ||||||
| Total interest expense | 554 | 330 | ||||||
| Net interest income | 12,150 | 10,708 | ||||||
| Provision for loan losses | - | 20 | ||||||
| Net interest income after provision for loan losses | 12,150 | 10,688 | ||||||
| Noninterest income | ||||||||
| Service charges on deposits | 158 | 143 | ||||||
| BOLI dividend income | 103 | 105 | ||||||
| Gain on sale of loans | 8 | 135 | ||||||
| Other | 733 | 595 | ||||||
| Total noninterest income | 1,002 | 978 | ||||||
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)
| Six Months Ended | ||||||||
| June 30, | June 30, | |||||||
| 2019 | 2018 | |||||||
| Noninterest expenses | ||||||||
| Salaries and benefits | 5,374 | 5,064 | ||||||
| Occupancy | 632 | 578 | ||||||
| Data and item processing | 499 | 393 | ||||||
| Furniture and equipment | 299 | 249 | ||||||
| Professional services | 238 | 270 | ||||||
| Provision for unfunded loan commitments | (23 | ) | (6 | ) | ||||
| Other | 1,484 | 1,340 | ||||||
| Total noninterest expenses | 8,503 | 7,888 | ||||||
| Income before provision for income taxes | 4,649 | 3,778 | ||||||
| Provision for income taxes | 1,235 | 1,029 | ||||||
| Net income | $ | 3,414 | $ | 2,749 | ||||
| Common Share Data1 | ||||||||
| Earnings per common share | ||||||||
| Basic | $ | 0.67 | $ | 0.55 | ||||
| Diluted | $ | 0.66 | $ | 0.54 | ||||
| Weighted average common shares outstanding | ||||||||
| Basic | 5,115,245 | 5,023,951 | ||||||
| Diluted | 5,197,069 | 5,109,499 | ||||||
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)
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| Asset Quality | 2019 | 2019 | 2018 | 2018 | ||||||||||||
| Loans past due 90 days or more and accruing | ||||||||||||||||
| interest | $ | - | $ | - | $ | - | $ | - | ||||||||
| Nonaccrual restructured loans | - | - | - | - | ||||||||||||
| Other nonaccrual loans | - | - | 2,711 198 | 198 | ||||||||||||
| Other real estate owned | - | - | - | - | ||||||||||||
| $ | - | $ | - | $ | 2,711 | $ | 198 | |||||||||
| Allowance for loan losses to total loans | 1.36 | % | 1.36 | % | 1.34 | % | 1.35 | % | ||||||||
| Allowance for loan losses to nonperforming loans | n/a | n/a | 241.53 | % | 3,243.94 | % | ||||||||||
| Nonaccrual loans to total loans | 0.00 | % | 0.00 | % | 0.56 | % | 0.04 | % | ||||||||
| Nonperforming assets to total assets | 0.00 | % | 0.00 | % | 0.44 | % | 0.03 | % | ||||||||
| Regulatory Capital and Ratios | ||||||||||||||||
| Common equity tier 1 capital | $ | 63,446 | $ | 61,585 | $ | 59,565 | $ | 55,240 | ||||||||
| Tier 1 regulatory capital | $ | 63,446 | $ | 61,585 | $ | 59,565 | $ | 55,240 | ||||||||
| Total regulatory capital | $ | 69,077 | $ | 67,209 | $ | 65,177 | $ | 60,673 | ||||||||
| Tier 1 leverage ratio | 10.40 | % | 9.79 | % | 9.55 | % | 9.35 | % | ||||||||
| Common equity tier 1 risk based capital ratio | 14.12 | % | 13.72 | % | 13.30 | % | 12.74 | % | ||||||||
| Tier 1 risk based capital ratio | 14.12 | % | 13.72 | % | 13.30 | % | 12.74 | % | ||||||||
| Total risk based capital ratio | 15.37 | % | 14.97 | % | 14.55 | % | 14.00 | % | ||||||||
| Three Months Ended | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| Selected Financial Ratios1 | 2019 | 2019 | 2018 | 2018 | ||||||||||||
| Return on average total assets | 1.08 | % | 1.15 | % | 1.24 | % | 1.03 | % | ||||||||
| Return on average shareholders' equity | 10.47 | % | 11.95 | % | 13.33 | % | 11.25 | % | ||||||||
| Net interest margin | 4.04 | % | 4.10 | % | 4.01 | % | 3.84 | % | ||||||||
| Net interest income to average total assets | 3.92 | % | 3.99 | % | 3.91 | % | 3.74 | % | ||||||||
| Efficiency ratio | 65.58 | % | 63.73 | % | 58.26 | % | 65.70 | % | ||||||||
1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.
| Three Months Ended | ||||||||||||||||
| June 30, | March 31, | December 31, | June 30, | |||||||||||||
| Selected Average Balances | 2019 | 2019 | 2018 | 2018 | ||||||||||||
| Gross loans | $ | 484,676 | $ | 487,838 | $ | 484,041 | $ | 459,931 | ||||||||
| Investment securities | 70,033 | 69,553 | 69,778 | 70,500 | ||||||||||||
| Federal Home Loan Bank stock | 3,415 | 3,163 | 3,163 | 3,163 | ||||||||||||
| Other interest earning assets | 34,233 | 50,778 | 49,212 | 41,454 | ||||||||||||
| Total interest earning assets | $ | 592,357 | $ | 611,332 | $ | 606,194 | $ | 575,048 | ||||||||
| Total assets | $ | 610,453 | $ | 628,320 | $ | 622,259 | $ | 590,041 | ||||||||
| Interest bearing checking accounts | $ | 36,569 | $ | 34,268 | $ | 36,273 | $ | 34,207 | ||||||||
| Money market deposits | 125,529 | 127,764 | 124,924 | 124,057 | ||||||||||||
| Savings deposits | 99,517 | 107,158 | 106,889 | 120,962 | ||||||||||||
| Time deposits | 18,759 | 18,099 | 16,828 | 12,763 | ||||||||||||
| Total interest bearing deposits | 280,374 | 287,289 | 284,914 | 291,989 | ||||||||||||
| Noninterest bearing demand deposits | 262,225 | 275,956 | 276,866 | 241,852 | ||||||||||||
| Total deposits | $ | 542,599 | $ | 563,245 | $ | 561,780 | $ | 533,841 | ||||||||
| Borrowings | $ | - | $ | - | $ | - | $ | - | ||||||||
| Shareholders' equity | $ | 62,740 | $ | 60,286 | $ | 57,751 | $ | 53,844 | ||||||||
1ST CAPITAL BANK
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)
| Six Months Ended | ||||||||
| June 30, | June 30, | |||||||
| Selected Financial Ratios | 2019 | 2018 | ||||||
| Return on average total assets | 1.11 | % | 0.94 | % | ||||
| Return on average shareholders' equity | 11.19 | % | 10.39 | % | ||||
| Net interest margin | 4.07 | % | 3.77 | % | ||||
| Net interest income to average total assets | 3.96 | % | 3.68 | % | ||||
| Efficiency ratio | 64.65 | % | 67.50 | % | ||||
1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.
| Six Months Ended | ||||||||
| June 30, | June 30, | |||||||
| Selected Average Balances | 2019 | 2018 | ||||||
| Gross loans | $ | 486,248 | $ | 450,552 | ||||
| Investment securities | 69,794 | 72,180 | ||||||
| Federal Home Loan Bank stock | 3,290 | 3,163 | ||||||
| Other interest earning assets | 42,460 | 47,082 | ||||||
| Total interest earning assets | $ | 601,792 | $ | 572,977 | ||||
| Total assets | $ | 619,337 | $ | 587,558 | ||||
| Interest bearing checking accounts | $ | 35,425 | $ | 34,934 | ||||
| Money market deposits | 126,638 | 119,746 | ||||||
| Savings deposits | 103,316 | 120,644 | ||||||
| Time deposits | 18,431 | 12,654 | ||||||
| Total interest bearing deposits | 283,881 | 287,978 | ||||||
| Noninterest bearing demand deposits | 269,053 | 243,460 | ||||||
| Total deposits | $ | 552,864 | $ | 531,438 | ||||
| Borrowings | $ | - | $ | 464 | ||||
| Shareholders' equity | $ | 61,520 | $ | 53,337 | ||||
SOURCE: 1st Capital Bank
View source version on accesswire.com:
https://www.accesswire.com/554488/1st-Capital-Bank-Announces-Second-Quarter-2019-Financial-Results-Record-First-Half-Earnings