1st Capital Bank Announces Fourth Quarter and Year to Date 2015 Financial Results; Record Net Interest Income, Deposits, Assets, and Equity

MONTEREY, CA–(Marketwired – Jan 29, 2016) –  1st Capital Bank (OTC PINK: FISB) reported net income of $674 thousand for the three months ended December 31, 2015, an increase of 7.4% compared to net income of $627 thousand in the fourth quarter of 2014 and an increase of 66.4% compared to income of $405 thousand in the third quarter of 2015, the immediately preceding quarter. Earnings per share were $0.16 (diluted), compared to $0.16 (diluted) for the same period a year ago.
Year-to-date earnings were $2.38 million, or $0.58 per share (diluted), for the year ended December 31, 2015, an increase of 21.5% compared to $1.96 million, or $0.49 per share (diluted), for the year ended December 31, 2014.
Total assets grew $12 million in the fourth quarter, to $514 million at December 31, 2015, compared to $502 million at September 30, 2015 as a result of growth in deposits of $30 million, or 6.9%, from $438 million at September 30, 2015 to $468 million at December 31, 2015. Core deposits likewise increased $31 million, or 7.5%. Net loans decreased $10 million during the fourth quarter, from $381 million at September 30, 2015 to $371 million at December 31, 2014 as commercial and industrial borrowers reduced the utilization of their lines of credit, causing commercial and industrial loans to decline from $46 million to $43 million. The single-family residential portfolio experienced normal amortization and prepayments, totaling $6 million. Consequently, no provision for loan losses was required, compared to a provision of $365 thousand in the third quarter of 2015 and $50 thousand in the fourth quarter of 2014.
Net interest income before provision for loan losses increased $237 thousand, or 6.3%, to $4.02 million, compared to $3.78 million in the prior quarter. Net interest margin increased from 3.12% in the third quarter of 2015 to 3.21% in the fourth quarter of 2015.
The Bank’s efficiency ratio improved from 73.0% in the third quarter of 2015 to 72.0% in the fourth quarter of 2015, as revenue growth outpaced the increase in expenses, which were centered in salaries and benefits.
“The Bank experienced strong deposit growth of $30 million in the fourth quarter, increasing its noninterest-bearing demand deposit accounts by more than $19 million,” said Thomas E. Meyer, President and Chief Executive Officer. “While some of this growth can be considered seasonal, it nevertheless reflects the vibrant business community we serve here on California’s Central Coast.” Meyer added, “The increase in core deposits and the improved mix of earning assets contributed to the improvement in our net interest margin.”
“The Bank closed the year with a very high level of liquidity,” said Michael J. Winiarski, Chief Financial Officer. “As we enter 2016, we will be focusing on deploying those funds in our core loan portfolio and exploring opportunities to control our cost of funds and enhance our leverage ratio.”
“We are pleased to welcome Robin Seelye as Chief Administrative Officer for the Bank,” said Kurt Gollnick, Chairman of the Board, “Robin’s extensive background in banking operations and technology, strong leadership skills, and focus on the bottom line are already making themselves felt as we expand the Bank’s revenue streams while continuing to control costs.”
FOURTH QUARTER HIGHLIGHTS

Net interest income before provision for credit losses was $4.02 million for the fourth quarter of 2015, compared to $3.78 million for the third quarter of 2015 and $3.61 million for the fourth quarter of 2014. Average earning assets increased from $449 million in the fourth quarter of 2014 to $480 million in the third quarter of 2015 and to $496 million in the fourth quarter of 2015. Net interest margin increased from 3.19% in the fourth quarter of 2014 and 3.12% in the third quarter of 2015 to 3.21% in the fourth quarter of 2015.

The provision for credit losses was $0 in the fourth quarter of 2015, compared to $365 thousand in the third quarter of 2015 and $50 thousand in the fourth quarter of 2014.

The allowance for loan losses increased from 1.53% at September 30, 2015 and decreased from 1.63% of gross loans outstanding at December 31, 2014 to 1.57% of outstanding loans at December 31, 2015, reflecting the proportion of the portfolio comprising single-family and multi-family residential loans, which require smaller allowance levels in the portfolio.

Investments available for sale decreased $4.7 million in the fourth quarter, from $89 million at September 30, 2015 to $84 million at December 31, 2015, freeing up funds for additional lending.

Deposits increased $30 million, or 6.9%, to $468 million at December 31, 2015 from $438 million at September 30, 2015 and increased $46 million, or 10.8% from $423 million at December 31, 2014. Deposit growth allowed the Bank to pay off $19 million of secured borrowings outstanding at September 30, 2015.

Demand deposit accounts made up 43.7% of deposits at December 31, 2015, compared to 40.1% at September 30, 2015 and 43.0% at December 31, 2014.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES
Net interest income before provision for credit losses was $4.02 million for the fourth quarter of 2015, an increase of $237 thousand, or 6.3%, compared to $3.78 million for the third quarter of 2015, and an increase of $454 thousand, or 12.7%, compared to the fourth quarter of 2014.
Average earning assets were $496 million during the fourth quarter of 2015, an increase of 6.3% compared to $480 million in the third quarter of 2015. The yield on earning assets was 3.34% in the fourth quarter, compared to 3.26% in the third quarter, reflecting a larger average balance of loans receivable, but a smaller investment securities portfolio. The average balance of the Bank’s loan portfolio was $377 million in the fourth quarter of 2015, compared to $356 million in the third quarter, and the yield on the loan portfolio was 4.14% in both the fourth and third quarters. The average balance of investments available for sale (“AFS”) declined $10 million sequentially, from $97 million in the third quarter of 2015 to $87 million in the fourth quarter of 2015. The yield on AFS investments increased from 0.61% in the third quarter of 2015 to 0.73% in the fourth quarter of 2015. The cost of interest-bearing liabilities decreased from 0.24% in the third quarter of 2015 to 0.23% in the fourth quarter of 2015, while the average balance of interest-bearing liabilities was $274 million in both the third and fourth quarters of 2015. The average balance of noninterest-bearing demand deposit accounts (“DDAs”) increased $16 million, or 9.9%, from $167 million in the third quarter of 2015 to $184 million in the fourth quarter of 2015, causing the Bank’s cost of funds to decline to 0.14% in the fourth quarter of 2015 from 0.15% in the third quarter of 2015.
Gross loans receivable decreased $10 million, or 2.6%, to $377 million at December 31, 2015 from $387 million at September 30, 2015 and increased $50 million, or 15.4%, from $327 million outstanding at December 31, 2014. During the fourth quarter of 2015, the Bank’s commercial real estate portfolio increased 0.2%, from $176.1 million to $176.4 million. Single-family residential loans, all of which were acquired or originated in prior quarters primarily through loan pool purchases, decreased $6 million, or 0.4%, as a result of normal amortization and prepayments of $5 million, as well as a $1 million decrease in outstanding balances on home equity lines of credit. Commercial and industrial loans outstanding declined $3 million, from $46 million at September 30, 2015 to $43 million at December 31, 2015, as credit line utilization declined from 34% to 32%, largely as a result of the very strong operating results of local agricultural and agriculture-related companies.
Non-performing loans decreased from $1.9 million at September 30, 2015 and increased from $773 thousand at December 31, 2014 to $1.7 million at December 31, 2015. Loans over 90 days past due (all of which were on non-performing status) were $0, $21 thousand, and $0 at December 31, 2014, September 30, 2015, and December 31, 2015, respectively. The Bank recorded net charge-offs of $4 thousand in the fourth quarter of 2015, net of $17 thousand in recoveries.
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 estimated probable losses inherent in the loan portfolio in light of losses historically incurred by the Bank and adjusted for qualitative factors associated with the loan portfolio. The Bank did not record a provision for losses in the fourth quarter of 2015, while the provision was $365 thousand in the third quarter of 2015 and $50 thousand in the fourth quarter of 2014. The decrease in the provision reflects the total amount of loan principal outstanding, which decreased from $387 million at September 30, 2015 to $377 million at December 31, 2015. It also reflects the payment history of the portfolio (which included no loans 90 days or more past due at December 31, 2015), 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 $9.1 million at December 31, 2015, compared to $9.4 million at September 30, 2015, and $8.6 million at December 31, 2014.
At December 31, 2015, non-performing loans were 0.46% of the total loan portfolio, compared to 0.49% at September 30, 2015 and 0.24% at December 31, 2014. At December 31, 2015, the allowance for loan losses was 1.57% of outstanding loans, compared to 1.53% and 1.63% at September 30, 2015 and December 31, 2014, respectively, reflecting primarily the proportion of single-family mortgages in the loan portfolio.
NON-INTEREST INCOME
Non-interest income recognized in the fourth quarter of 2015 was $74 thousand, a decrease of $33 thousand, or 30.4%, from $107 thousand in the third quarter of 2015, and a decrease of $11 thousand from the fourth quarter of 2014. Gain on sales of Small Business Administration guaranteed loans declined $27 thousand, from $38 thousand in the third quarter of 2015 to $11 thousand in the fourth quarter of 2015.
NON-INTEREST EXPENSES
Non-interest expenses increased $109 thousand, or 3.8%, to $2.95 million for the fourth quarter of 2015, compared to $2.84 million for the third quarter of 2015, and increased $362 thousand, or 14.0%, compared to the fourth quarter of 2014. Salaries and benefits increased $115 thousand, or 6.8%, from $1.70 million in the third quarter of 2015 to $1.82 million in the fourth quarter of 2015. Compared to the prior quarter, base salaries increased $5 thousand, while stock-based compensation expense was $58 thousand higher than the previous quarter because there was employee turnover in the third quarter that caused forfeitures and, therefore, a lower level of compensation expense. In addition, there were additional participants in the equity compensation plan in the fourth quarter. Salaries and benefits, occupancy costs, and furniture and equipment expenses increased $281 thousand, $13 thousand, and $30 thousand, respectively, compared to the fourth quarter of 2014, reflecting the opening of the Bank’s San Luis Obispo branch in 2015. The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 72.0% for the fourth quarter of 2015, compared to 73.0% for the third quarter of 2015 and 69.9% for the fourth quarter of 2014. Non-interest expenses as a percent of average total assets were 2.33%, 2.32%, and 2.26% for the fourth quarter of 2015, the third quarter of 2015, and the fourth quarter of 2014, respectively. 
PROVISION FOR INCOME TAXES
The Bank’s effective book tax rate was 41.1% in the fourth quarter of 2015, compared to 40.9% for the third quarter of 2015 and 41.1% for the fourth quarter of 2015. For the years ended December 31, 2015 and 2014, the Bank’s effective book tax rate was 37.8% and 41.1%, respectively. In 2015, the Bank realized and recognized $249 in tax-free bank-owned life insurance benefits, compared to no such benefits for 2014. The income tax provision for 2015 also reflects the Bank’s settlement with the California Franchise Tax Board for certain Enterprise Zone interest deductions taken in 2009 and 2010.
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. The Bank’s corporate offices are located at 5 Harris Court, Building N, Monterey, California 93940. The Bank’s website is www.1stCapitalBank.com. 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 www.1stCapitalBank.com internet site for no charge.

 
 

 
 

1ST CAPITAL BANK
 

CONDENSED FINANCIAL DATA
 

(Unaudited)
 

(Dollars in thousands, except share and per share data)
 

 
 
 
 
 
 
 
 
 
 
 
 

Financial Condition Data1
December 31, 2015
 
 
September 30, 2015
 
 
June 30, 2015
 
 
December 31, 2014
 

Assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Cash and due from banks
$
3,334
 
 
$
3,380
 
 
$
3,261
 
 
$
2,654
 

 
Funds held at the Federal Reserve Bank2
 
42,857
 
 
 
16,004
   
 
23,759
 
 
 
31,598
 

 
Time deposits at other financial institutions
 
2,241
 
 
 
2,241
 
 
 
2,739
 
 
 
2,988
 

 
Available-for-sale securities, at fair value
 
84,203
 
 
 
88,891
 
 
 
98,672
 
 
 
96,807
 

 
Loans receivable held for investment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Construction / land (including farmland)
 
17,499
 
 
 
17,814
 
 
 
20,274
 
 
 
16,600
 

 
 
Residential 1 to 4 units
 
124,741
 
 
 
129,564
 
 
 
107,792
 
 
 
97,142
 

 
 
Home equity lines of credit
 
8,594
 
 
 
9,636
 
 
 
7,515
 
 
 
8,327
 

 
 
Multifamily
 
36,862
 
 
 
35,202
 
 
 
31,290
 
 
 
16,118
 

 
 
Owner occupied commercial real estate  
56,046
 
 
 
55,111
 
 
 
53,848
 
 
 
60,064
 

 
 
Investor commercial real estate
 
83,532
 
 
 
85,766
 
 
 
75,210
 
 
 
73,095
 

 
 
Commercial and industrial
 
42,528
 
 
 
45,584
 
 
 
45,038
 
 
 
46,922
 

 
 
Other loans
 
6,909
 
 
 
8,022
 
 
 
6,264
 
 
 
8,233
 

 
 
 
Total loans
 
376,711
 
 
 
386,699
 
 
 
347,231
 
 
 
326,501
 

 
 
Allowance for loan losses
 
(5,921
)
 
 
(5,926
)
 
 
(5,549
)
 
 
(5,325
)

 
Net loans
 
370,790
 
 
 
380,773
 
 
 
341,682
 
 
 
321,176
 

 
Premises and equipment, net
 
1,612
   
 
1,679
 
 
 
1,689
 
 
 
1,423
 

 
Bank owned life insurance
 
2,350
 
 
 
2,335
 
 
 
2,321
 
 
 
2,549
 

 
Investment in FHLB3 stock, at cost
 
2,593
 
 
 
2,593
 
 
 
2,593
 
 
 
2,007
 

 
Accrued interest receivable and other assets
 
3,370
 
 
 
4,422
 
 
 
3,950
 
 
 
3,661
 

Total assets
$
513,950
 
 
$
502,318
 
 
$
480,666
 
 
$
464,863
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Liabilities and shareholders’ equity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Deposits:
 
 
 
 
 
 
 
 
 
 
   
 
 
 

 
 
Noninterest bearing demand deposits
$
204,624
 
 
$
175,958
 
 
$
159,920
 
 
$
181,939
 

 
 
Interest bearing checking accounts
 
29,838
 
 
 
30,999
 
 
 
28,329
 
 
 
22,447
 

 
 
Money market deposits
 
110,490
 
 
 
104,876
 
 
 
120,449
 
 
 
103,804
 

 
 
Savings deposits
 
94,315
 
 
 
96,634
 
 
 
98,262
 
 
 
83,689
 

 
 
Time deposits
 
29,121
 
 
 
29,788
 
 
 
29,434
 
 
 
30,874
 

 
 
 
Total deposits
 
468,388
 
 
 
438,255
 
 
 
436,394
 
 
 
422,753
 

 
 
Borrowings
 

 
 
 
19,000
 
 
 

 
 
 

 

   
Accrued interest payable and other liabilities
 
1,073
 
 
 
1,336
 
 
 
1,056
 
 
 
929
 

 
 
Shareholders’ equity
 
44,489
 
 
 
43,727
 
 
 
43,216
 
 
 
41,181
 

 
Total liabilities and shareholders’ equity
$
513,950
 
 
$
502,318
 
 
$
480,666
 
 
$
464,863
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Shares outstanding4
 
4,064,485
 
 
 
4,035,417
 
 
 
3,842,905
 
 
 
3,779,039
 

 
Nominal and tangible book value per share
$
10.95
 
 
$
10.84
 
 
$
11.25
 
 
$
10.90
 

 
Ratio of net loans held for investment to total deposits
 
76.16
%
 
 
86.88
%
 
 
78.30
%
 
 
75.97
%

 
 
 
   
 
 
 
 
 
 
 
 
 
 
 

1 = Loans 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 = Shares outstanding and book value per share reflect the 5% stock dividend declared July 29, 2015 and payable September 30, 2015.

 

 

 

1ST CAPITAL BANK

CONDENSED FINANCIAL DATA

(Unaudited)

(Dollars in thousands, except share and per share data)

 

 
Three Months Ended

Operating Results Data1
December 31, 2015
 
September 30, 2015
 
June 30, 2015
 
December 31, 2014

Interest and dividend income
 
 
 
 
 
 
 
 
 
 
 

 
Loans
$
3,938
 
$
3,718
 
$
3,571
 
$
3,566

 
 
Investment securities
 
160
 
 
149
 
 
155
 
 
148

 
 
Federal Home Loan Bank stock
 
58
 
 
61
 
 
127
 
 
37

 
 
Other
 
23
 
 
19
 
 
18
 
 
17

 
 
 
Total interest and dividend income
 
4,179
 
 
3,947
 
 
3,871
 
 
3,768

Interest expense
   
 
 
 
 
 
 
 
 
 

 
Interest bearing checking
 
3
 
 
3
 
 
2
 
 
6

 
Money market deposits
 
71
 
 
77
 
 
88
 
 
73

 
Savings deposits
 
72
 
 
73
 
 
68
 
 
61

 
Time deposits
 
14
 
 
13
 
 
12
 
 
14

 
 
Total interest expense on deposits
 
160
 
 
166
 
 
170
 
 
154

 
Interest expense on borrowings
 
2
 
 
1
 
 
1
 
 
1

 
 
 
Total interest expense
 
162
 
 
167
 
 
171
 
 
155

Net interest income
 
4,017
 
 
3,780
 
 
3,700
 
 
3,613

Provision for loan losses
 

 
 
365
 
 

 
  50

Net interest income after provision for loan losses
 
4,017
 
 
3,415
 
 
3,700
 
 
3,563

 
 
 
 
 
 
 
 
 
 
 
 

Noninterest income
 
 
 
 
 
 
 
 
 
 
 

 
Service charges on deposits
 
34
 
 
29
 
 
29
 
 
30

 
BOLI dividend income
 
15
 
 
15
 
 
14
 
 
17

 
Gain on sale of loans
 
11
 
 
38
 
 
51
 
 
19

 
Gain on sale of securities
 

 
 

 
 

 
 

 
Other
 
14
 
 
25
 
 
18
 
 
19

 
 
Total noninterest income
 
74
 
 
107
 
 
112
 
 
85

 
 
 
 
 
 
 
 
 
   
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

1ST CAPITAL BANK
 

CONDENSED FINANCIAL DATA, continued
 

(Unaudited)
 

(Dollars in thousands, except share and per share data)
 

 
 

 
Three Months Ended
 

 
December 31, 2015
 
September 30, 2015
 
 
June 30, 2015
 
December 31, 2014
 

Noninterest expenses
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Salaries and benefits
 
1,817
 
 
1,702
 
 
 
1,744
 
 
1,536
 

 
Occupancy
 
219
 
 
224
 
 
 
198
 
 
206
 

 
Data and item processing
 
149
 
 
161
 
 
 
144
 
 
138
 

 
Professional services
 
132
 
 
137
 
 
 
151
 
 
130  

 
Furniture and equipment
 
127
 
 
127
 
 
 
107
 
 
97
 

 
Provision for unfunded loan commitments
 
19
 
 
(6
)
 
 
10
 
 
(8
)

 
Other
 
483
 
 
492
 
 
 
470
 
 
485
 

 
 
Total noninterest expenses
 
2,946
 
 
2,837
 
 
 
2,824
 
 
2,584
 

Income before provision for income taxes
 
1,145
 
 
685
 
 
 
988
 
 
1,064
 

Provision for income taxes
 
471
 
 
280
 
 
 
387
 
 
437
 

Net income
$
674
 
$
405
 
 
$
601
 
$
627
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

Common Share Data2  
 
 
 
 
 
 
 
 
 
 
 
 

 
Earnings per share
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Basic
$
0.17
 
$
0.10
 
 
$
0.15
 
$
0.16
 

 
 
Diluted
$
0.16
 
$
0.10
 
 
$
0.15
 
$
0.16
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Weighted average shares outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
Basic
 
4,052,646
 
 
4,035,543
 
 
 
4,028,844
 
 
3,950,347
 

 
 
Diluted
 
4,131,661
 
 
4,108,966
 
 
 
4,085,410
 
 
4,015,706
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 

1 = Certain reclassifications have been made to prior period financial statements to conform them to the current period presentation.
2 = Earnings per share and weighted average shares outstanding have been restated to reflect the effect of the 5% stock dividend declared July 29, 2015 and payable September 30, 2015.

 

 

 

1ST CAPITAL BANK

CONDENSED FINANCIAL DATA

(Unaudited)

(Dollars in thousands, except share and per share data)

 
 
 
 
 

 
 
12 Months Ended

 
 
December 31,
 
December 31,

Operating Results Data1
 
2015
 
2014

Interest and dividend income
 
 
 
 
 
 

 
Loans
 
$
14,732
 
$
12,921

 
Investment securities
 
 
617
 
 
681

 
Federal Home Loan Bank stock
 
 
279
 
 
1370

 
Other
 
 
82
 
 
81

 
 
Total interest and dividend income
 
 
15,710
 
 
13,819

Interest expense
 
 
 
 
 
 

 
Interest bearing checking
 
 
11
 
 
27

 
Money market deposits
 
 
319
 
 
291

 
Savings deposits
 
 
280
 
 
243

 
Time deposits
 
 
51
 
 
58

 
 
Total interest expense in deposits
 
  661
 
 
618

 
Interest expense on borrowings
 
 
4
 
 
2

 
 
 
Total interest expense
 
 
665
 
 
622

Net interest income
 
 
15,045
 
 
13,198

Provision for loan losses
 
 
565
 
 
575

Net interest income after provision for loan losses
 
 
14,480
 
 
12,623

 
 
 
 
 
 
 

Noninterest income
 
 
 
 
 
 

 
Service charges on deposits
 
 
123
 
 
122

 
BOLI dividend income
 
 
60
 
 
78

 
BOLI benefits
 
 
249
 
 

 
Gain on sale of loans
 
 
100
 
 
19

 
Gain on sale of securities
 
 

 
 
162

 
Other
 
 
78
 
 
84

 
 
Total noninterest income
 
 
610
 
 
465

 
 
 
 
 
 
 

 
 
 
   
 
 

 
 
 
 
 
 
 

1ST CAPITAL BANK
 

CONDENSED FINANCIAL DATA
 

(Unaudited)
 

(Dollars in thousands, except share and per share data)
 

 
 
 
 
 
 

 
 
12 Months Ended
 

 
 
December 31,
 
December 31,
 

 
 
2015
 
2014
 

Noninterest expenses
 
 
 
 
 
 
 

 
Salaries and benefits
 
 
6,890
 
 
5,858
 

 
Occupancy
 
 
841
 
 
764
 

 
Data and item processing
 
 
596
 
 
564
 

 
Professional services
 
 
532
 
 
529
 

 
Furniture and equipment
 
 
459
 
 
333
 

 
Provision for unfunded loan commitments
 
 
31
 
 
(3
)

 
Other
 
 
1,916
 
 
1,714
 

 
 
Total noninterest expenses
 
 
11,265
 
 
9,759
 

Income before provision for income taxes
 
 
3,825
 
 
3,330
 

Provision for income taxes
 
 
1,444
 
 
1,369
 

Net income
 
$
2,381
 
 
1,960
 

 
 
 
 
 
 
 
 

Common Share Data2
 
 
 
 
 
 
 

 
Earnings per share
 
 
 
 
 
 
 

 
 
Basic
 
$
0.59
 
$
0.50
 

 
 
Diluted
 
$
0.58
 
$
0.49
 

 
 
 
 
 
 
 
 

 
Weighted average shares outstanding
 
 
 
 

 
 
Basic
 
 
 
4,025,635
 
 
3,902,358
 

 
 
Diluted
 
 
 
4,091,555
 
 
3,964,335
 

 
 
 
 
 
 
 
 

1 = Certain reclassifications have been made to prior period financial statements to conform them to the current period presentation.
2 = Earnings per share and weighted average shares outstanding have been restated to reflect the effect of the 5% stock dividend declared July 29, 2015 and payable September 30, 2015.

 
 

 
 

 
 

1ST CAPITAL BANK
 

CONDENSED FINANCIAL DATA
 

(Unaudited)
 

(Dollars in thousands)
 

 
 

Asset Quality
December 31, 2015
 
 
September 30, 2015
 
 
June 30, 2015
 
 
December 31, 2014
 

 
Loans past due 90 days or more and accruing interest
$

 
 
$

 
 
$

 
 
$

 

 
Nonaccrual restructured loans
 
1,526
 
 
 
1,543
 
 
 

 
 
 
222
 

 
Other nonaccrual loans
 
205
 
 
 
358
 
 
 
92
 
 
 
551
 

 
Other real estate owned
 

 
 
 

 
 
 

 
 
 

 

 
$
1,731
 
 
$
1,901
 
 
$
92
 
 
$
773
 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
   

 
Allowance for loan losses to total loans
 
1.57
%
 
 
1.53
%
 
 
1.60
%
 
 
1.63
%

 
Allowance for loan losses to nonperforming loans
 
342.06
%
 
 
311.73
%
 
 
6,031.52
%
 
 
688.87
%

 
Nonaccrual loans to total loans
 
0.46
%
 
 
0.49
%
 
 
0.03
%
 
 
0.24
%

 
Nonperforming assets to total assets
 
0.34
%
 
 
0.38
%
 
 
0.02
%
 
 
0.17
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

Regulatory Capital and Ratios
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Common equity tier 1 capital
$
44,258
 
 
$
43,437
 
 
$
42,941
 
 
 
NA
 

 
Tier 1 regulatory capital
$
44,258
 
 
$
43,437
 
 
$
42,941
 
 
$ 40,924
 

 
Total regulatory capital
$
48,461
 
 
$
47,745
 
 
$
46,919
 
 
$
44,692
 

 
Tier 1 leverage ratio
 
8.82
%
 
 
8.94
%
 
 
8.97
%
 
 
9.01
%

 
Common equity tier 1 risk based capital ratio
 
13.24
%
 
 
12.67
%
 
 
13.57
%
 
 
NA
 

 
Tier 1 risk based capital ratio
 
13.24
%
 
 
12.67
%
 
 
13.57
%
 
 
13.66
%

 
Total risk based capital ratio
 
14.49
%
 
 
13.92
%
 
 
14.82
%
 
 
14.91
%

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
Three Months Ended
 

Selected Financial Ratios1
December 31, 2015
 
 
September 30, 2015
 
 
June 30, 2015
 
 
December 31, 2014
 

 
Return on average total assets
0.53
%
 
0.33
%
 
0.50
%
 
0.55
%

 
Return on average shareholders’ equity
6.04
%
 
3.68
%  
5.60
%
 
6.09
%

 
Net interest margin
3.21
%
 
3.12
%
 
3.13
%
 
3.19
%

 
Net interest income to average total assets
3.17
%
 
3.08
%
 
3.10
%
 
3.15
%

 
Efficiency ratio
72.03
%
 
72.99
%
 
74.08
%
 
69.88
%

 
 
 
 
 
 
 
 
 
 
 
 

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.

 
 

 
 

 
 

 
Three Months Ended

Selected Average Balances
December 31, 2015
 
September 30, 2015
 
June 30, 2015
 
December 31, 2014

 
Gross loans
$
376,956
 
$
355,960
 
$
345,008
 
$
326,795

 
Investment securities
 
86,974
 
 
97,070
 
 
101,475
 
 
99,588

 
Federal Home Loan Bank stock
 
2,593
 
 
2,593
 
 
2,445
 
 
2,007

 
Other interest earning assets
 
29,366
 
 
24,842
 
 
25,233
 
 
20,605

 
 
Total interest earning assets
$
495,889
 
$
480,465
 
$
474,161
 
$
448,995

 
Total assets
$
502,349
 
$
486,149
 
$
479,363
 
$
454,480

 
 
 
 
 
 
 
 
 
 
 
 
 

 
Interest bearing checking accounts
$
31,352
 
$
30,203
 
$
26,132
 
$
22,480

 
Money market deposits
 
114,281
 
 
113,377
 
 
125,098
 
 
110,179

 
Savings deposits
 
96,740
 
 
97,353
 
 
91,735
 
 
82,982

 
Time deposits
 
29,460
 
 
29,664
 
 
29,775
 
 
30,701

 
 
Total interest bearing deposits
 
271,833
 
 
270,597
 
 
272,740
 
 
246,342

 
Noninterest bearing demand deposits
 
183,569
 
 
166,990
 
 
160,349
 
 
161,797

 
 
Total deposits
$
455,402
 
$
437,587
 
$
433,089
  $
408,139

 
Borrowings
$
2,283
 
$
3,742
 
$
2,154
 
$
4,435

 
Shareholders’ equity
$
44,308
 
$
43,697
 
$
43,013
 
$
40,857

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

 
 
 
 
 
 
 
 
 
 
 
 

1ST CAPITAL BANK
 

CONDENSED FINANCIAL DATA
 

(Unaudited)
 

(Dollars in thousands)
 

 
 
12 Months Ended
 

 
 
December 31,
 
 
December 31,
 

Selected Financial Ratios1
 
2015
 
 
2014
 

Return on average total assets
 
0.49
%
 
0.45
%

Return on average shareholders’ equity
 
5.51
%
 
4.96
%

Net interest margin
 
3.14
%
 
3.09
%

Net interest income to average total assets
 
3.10
%
 
3.04
%

Efficiency ratio
 
71.96
%
 
71.42
%

   
 
 
 
 
 

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.

 
 
 

 
 
 

 
 
 

 
 
12 Months Ended

 
 
December 31,
 
December 31,

Selected Average Balances1
 
2015
 
2014

 
Gross loans
 
$
352,971
 
$
295,467

 
Investment securities
 
 
96,676
 
 
103,302

 
Federal Home Loan Bank stock
 
 
2,411
 
 
1,847

 
Other interest earning assets
 
 
27,700
 
 
26,164

 
 
Total interest earning assets
 
$
479,758
 
$
426,780

 
Total assets
 
$
485,551
 
$
433,590

 
 
 
 
 
 
 
 

 
Interest bearing checking accounts
 
$
27,709
 
$
22,344

 
Money market deposits
 
 
118,298
 
 
106,203

 
Savings deposits
 
 
94,087
 
 
81,801

 
Time deposits
 
 
29,868
 
 
30,020

 
 
Total interest bearing deposits
 
 
269,963
 
 
240,368

 
Noninterest bearing demand deposits
 
 
169,419
 
 
151,192

 
 
Total deposits
 
$
439,381
 
$
391,560

 
Borrowings
 
$
2,056
 
$
1,599

 
Shareholders’ equity
 
$
43,244
 
$
39,506

 
 
 
 
 
 
 

1 = Certain reclassifications have been made to prior period financial statements to conform them to the current period presentation.