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1st Capital Bancorp Announces Fourth Quarter 2020 Financial Results

SALINAS, CA / ACCESSWIRE / January 29, 2021 / 1st Capital Bancorp (OTC PINK:FISB) reported unaudited net income of $1.59 million for the three months ended December 31, 2020, an increase of 67.1% compared to net income of $953 thousand in the third quarter of 2020 and a decrease of 8.1% compared to net income of $1.73 million in the fourth quarter of 2019. Earnings per share were $0.28 (diluted) for the fourth quarter of 2020, compared to $0.17 (diluted) for the prior quarter, and $0.31 (diluted) for the fourth quarter of 2019.

Unaudited net income for the year ended December 31, 2020 was $4.50 million, a decrease of 36.5% compared to net income of $7.09 million for the year ended December 31, 2019. Year-to-date earnings per share were $0.81 (diluted) and $1.27 (diluted) for the years ended December 31, 2020 and 2019, respectively.

"During the fourth quarter, we continued to focus on building our core loan portfolio," said Jon D. Ditlevsen, president. "New loans funded during the quarter totaled $21.2 million. In 2020, each of our four major markets, Salinas, Monterey, Santa Cruz, and San Luis Obispo, contributed more than $30 million to our annual production, which was a record $133 million."

Net loans held for investment decreased $23.1 million, or 3.7%, during the fourth quarter, from $619.4 million at September 30, 2020 to $596.3 million at December 31, 2020. Paycheck Protection Program ("PPP") loans outstanding decreased $16.2 million, or 15.2%, as borrowers' loans were forgiven by the U.S. Small Business Administration ("SBA"), and single-family loans purchased by the Company in prior quarters declined $12.1 million, or 12.9%, while the core portfolio of non-PPP commercial and industrial and commercial real estate loans originated by the Company increased $5.2 million, or 1.2%.

As of December 31, 2020, the Company's allowance for loan and lease losses was $8.8 million, or 1.46% percent of loans held for investment, compared to $8.8 million, or 1.40% of loans held for investment, as of September 30, 2020. Operating results reflect no provision for loan losses in the fourth quarters of 2020 and 2019, compared to a provision of $650 thousand in the third quarter of 2020, which recognized incurred losses in the Company's loan portfolio, attributable primarily to the COVID-19 outbreak and consequent action taken by governmental officials to curtail the operations of businesses deemed nonessential.

"In the fourth quarter, the Company's exposure to credit losses came into clearer focus," said Dale R. Diederick, chief credit officer. "The upward trend in coronavirus cases is placing short-term stress on the economy and continuing to affect the value and market absorption of commercial real estate. This has caused downward migration in certain loan risk ratings, while others have improved. At the same time, we are beginning to see the resolution of certain troubled assets. Because these trends offset one another, we determined that no provision for loan losses for the current quarter of 2020 was warranted."

Total assets increased $83.5 million in the fourth quarter, from $749.0 million as of September 30, 2020 to $832.6 million as of December 31, 2020, an increase of 11.1%. More than 70% of the increase was caused by depositors moving funds from off-balance sheet Insured Cash Sweep accounts into on-balance sheet demand deposit and money market accounts. Following year-end, these balances declined, as depositors made distributions to investors and estimated income tax payments, and total deposits were $683.3 million as of January 28, 2021, compared to $748.5 as of December 31, 2020.

"On October 30, 2020, the Company completed the formation of a bank holding company, 1st Capital Bancorp," said Samuel D. Jimenez, chief executive officer. "We believe the holding company structure will provide us with a wider range of options to manage capital, which in turn will lead to greater shareholder value."

Fourth Quarter Highlights:

  • Return on average equity was 8.60%, compared to 5.26% for the third quarter of 2020 and 10.21% for the fourth quarter of 2019.
  • Return on average assets was 0.82%, compared to 0.51% for the third quarter of 2020 and 1.11% for the fourth quarter of 2019.
  • Gross loans held for investment decreased $23.0 million, or 3.7%, during the fourth quarter of 2020, from $628.2 million at September 30, 2020 to $605.2 million at December 31, 2020.
  • Non-accrual loans were $1.3 million, or 0.21% of loans outstanding, at December 31, 2020, compared to $1.5 million at September 30, 2020 and $492 thousand at December 31, 2019. Loans 30 to 89 days delinquent decreased from $8.0 million at September 30, 2020 to $617 thousand at December 31, 2020.
  • The Company's net loans-to-deposits ratio decreased from 93.6% at September 30, 2020 to 79.7% at December 31, 2020 as transitory deposits came onto the balance sheet.
  • Sources of liquidity comprising secured borrowing capacity with the Federal Home Loan Bank of San Francisco and deposits eligible to be moved onto the Company's balance sheet in the form of reciprocal deposits totaled $197.4 million at December 31, 2020. $25.0 million of additional liquidity under Federal funds facilities also was available.
  • Deposits totaled $748.3 million at December 31, 2020, compared to $661.6 million at September 30, 2020, an increase of $86.8 million, or 13.1%.
  • Demand deposits increased $30.0 million, or 8.4%, from $356.7 million at September 30, 2020 to $386.7 million at December 31, 2020 and made up 51.7% of total deposits at December 31, 2020.
  • The Company's cost of funds was 0.13% in the third and fourth quarters of 2020.
  • Non-interest income decreased from $326 thousand in the third quarter of 2020 to $233 thousand in the fourth quarter of 2020.
  • Non-interest expenses increased 1.4%, from $4.58 million in the third quarter of 2020 to $4.64 million in the fourth quarter of 2020.
  • 1st Capital Bank's common equity Tier 1 ("CET1") risked-based capital ratio was 14.01%, and its Tier 1 leverage ratio was 9.44% at December 31, 2020, compared to 14.16% and 9.58%, respectively, at September 30, 2020.
  • Net interest margin increased from 3.45% in the third quarter of 2020 to 3.54% in the fourth quarter of 2020 as the Bank began to recognize increased levels of deferred PPP loan fees in income as PPP loan payoffs increased.
  • Deferred loan origination fees (net of unamortized direct loan origination costs) on PPP loans totaled $1.71 million at December 31, 2020, compared to $2.49 million at September 30, 2020.

Throughout the fourth quarter of 2020, all branch offices of 1st Capital Bank (the "Bank"), other than the limited service branch at the Company's headquarters office, which historically has had very limited transaction activity, remained open. Approximately 65% of Company employees were working remotely. Nine of the Bank's 98 employees have tested positive for the coronavirus, and all have recovered and returned to work after quarantine periods.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Net interest income before provision for credit losses was $6.62 million in the fourth quarter of 2020, an increase of $401 thousand, or 6.4%, compared to $6.22 million in the third quarter of 2020 and an increase of $817 thousand, or 14.1%, compared to $5.81 million in the fourth quarter of 2019.

Average earning assets were $744.0 million during the fourth quarter of 2020, an increase of 3.5% compared to $718.6 million in the third quarter of 2020. The yield on earning assets was 3.65% in the fourth quarter of 2020, compared to 3.55% in the third quarter of 2020. The increase in yield reflected a higher yield on the loan portfolio, which increased from 3.86% in the third quarter of 2020 to 4.19% in the fourth quarter of 2020, offset by a lower tax-equivalent yield on the investment portfolio, which decreased from 1.78% in the third quarter of 2020 to 1.52% in the fourth quarter of 2020, and higher average cash balances, which increased from $24.8 million in the third quarter of 2020 to $46.9 million in the fourth quarter of 2020.

Net loans held for investment decreased $23.1 million, or 3.7%, during the fourth quarter, from $619.4 million at September 30, 2020 to $596.4 million at December 31, 2020. PPP loans outstanding decreased $16.2 million, or 15.2%, as borrowers' loans were forgiven by the SBA. Single-family loans purchased by the Company in prior quarters declined $12.1 million, or 12.9%, while the portfolio of non-PPP loans originated by the Company increased $5.2 million, or 1.2%. Growth in the core loan portfolio was concentrated in commercial real estate loans, which increased $8.4 million, or 3.5%. Commercial and industrial loans decreased $1.0 million, or 2.0%, while multi-family residential loans increased $5.0 million, or 6.3%. Undrawn, available credit increased $2.5 million, from $88.8 million at September 30, 2020 to $91.3 million at December 31, 2020.

The Company recognizes income on its net investment in PPP loans (outstanding principal plus direct loan origination costs less deferred loan fees paid by the SBA) based on the amortization schedule of the underlying loan. Unamortized loan fees are taken into income at the time a loan is paid off. Interest income on PPP loans in the fourth quarter totaled $972 thousand, compared to $693 thousand in the third quarter. Fourth quarter income included $717 thousand of net deferred fee amortization, compared to $420 thousand in the third quarter, as borrowers began to participate in the SBA's loan forgiveness process. During the fourth quarter, the average balance of PPP loans was $99.3 million, with a yield incorporating both interest and deferred fee recognition of 3.89%, compared to $105.7 million, with a yield of 2.66%, in the third quarter. As of December 31, 2020, unamortized net deferred fees not yet taken into income totaled $1.71 million.

The yields on non-PPP commercial and industrial and commercial real estate loans in the fourth quarter of 2020 were 3.96% and 4.16% on average balances of $49.5 million and $244.6 million, respectively, compared to 4.16% and 4.72% on average balances of $48.7 million and $243.7 million in the third quarter of 2020. The average balance of multi-family residential loans increased to $82.0 million in the fourth quarter of 2020 from $76.1 million in the third quarter of 2020, while the respective yields were 4.25% and 4.21%. The portfolio of single-family residential first liens (purchased and originated in-house) yielded 3.47% and 3.24% on average balances of $108.9 million and $121.3 million in the fourth and third quarters of 2020, respectively.

The average balance of the investment portfolio increased $13.7 million, from $61.3 million in the third quarter of 2020 to $75.0 million in the fourth quarter of 2020, and the tax-equivalent yield decreased from 1.78% in the third quarter of 2020 to 1.52% in the fourth quarter of 2020, as the Company invested funds in short-term U.S. Treasury securities.

The cost of interest-bearing liabilities was 0.28% in both the fourth quarter and third quarter of 2020, while the average balance of interest-bearing liabilities increased 6.9% from $297.6 million in the third quarter of 2020 to $318.1 million in the fourth quarter of 2020.

The Company's portfolio of certificates of deposit had average balances of $17.7 million in the third quarter of 2020 and $15.9 million in the fourth quarter of 2020, and an average cost of funds of 0.79% and 0.51%, respectively.

On May 28, 2020, the Bank drew down $10.0 million under the Federal Home Loan Bank of San Francisco's zero interest rate Recovery Advance program. $5.0 million of this amount was repaid November 27, 2020, and the remaining $5.0 million is payable May 27, 2021.

The Company's overall cost of funds was 0.13% in the third and fourth quarters of 2020.

CREDIT QUALITY AND PROVISION FOR CREDIT LOSSES

The Company's core market comprises Monterey, San Luis Obispo, and Santa Cruz Counties, all of which are located along California's Central Coast. As of December 31, 2020, approximately $72.3 million, or 82.9%, of owner-occupied commercial real estate loans, $159.8 million, or 91.6%, of investor real estate loans, $24.9 million, or 22.9%, of single-family residential loans, and substantially all multi-family, construction, and farmland loans, as well as all home equity lines of credit, were collateralized by properties located within the Company's market area. An additional $15.5 million of commercial real estate loans was collateralized by properties located in neighboring San Benito and Santa Clara Counties. All single-family residential loans were collateralized by properties located in California, and substantially all commercial and industrial loans were to businesses operating within the Company's market area or San Benito County.

Effective January 25, 2021, the State of California returned to a system of county-by-county risk ratings and assigned a "widespread" pandemic risk rating (the most severe of four ratings) to counties making up 99.9% of the state population. These included Monterey, San Luis Obispo, and Santa Cruz Counties. The State of California has indicated that under a "widespread" risk rating, many non-essential business operations (including shopping malls, retailers not offering merchandise deemed essential, bars, restaurants not offering take-out and/or outdoor dining, and most personal services) are closed.

A summary of loans outstanding by industry sector as of December 31, 2020 is provided within the disclosure of Condensed Financial Data.

Single-family mortgages totaling $84.7 million as of December 31, 2020 are serviced by the Company's outside single-family loan servicers in conformity with guidance issued by the Government-Sponsored Entities, including forbearance under the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"). The Company services all other loans (including all home equity lines of credit) in its portfolio.

As of December 31, 2020, the Company had in place one forbearance agreement as defined by the CARES Act in effect on an $885 thousand non-conforming single-family residential ("SFR") loan serviced by the Company's outside servicer with an original loan-to-value ratio of 55.9%. The forbearance agreement calls for the deferral of payments until January 2021.

As of December 31, 2020, non-accrual loans totaled $1.3 million or 0.21% of the Company's loans held for investment, compared with $1.5 million, or 0.24%, as of September 30, 2020, and $492 thousand, or 0.10%, as of December 31, 2019. Non-accrual loans comprised two relationships that in aggregate included five commercial and industrial loans totaling $1.3 million as of December 31, 2020.

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 Company and adjusted for qualitative factors associated with the loan portfolio.

The Company recorded a provision for loan losses of $2.1 million in the year ended December 31, 2020: $825 thousand in the first quarter, $650 thousand in the second quarter, $650 thousand in the third quarter, and no provision in the fourth quarter of 2020. The Company recorded no provision in the year ended December 31, 2019.

The historical loss rates associated with the various types of loans in the Company's portfolio were largely unchanged in the fourth quarter of 2020 compared to the prior quarter. The level of impaired loans increased, and the amount of impairment also increased $323 thousand during the quarter, causing an increase in the impairment component of the allowance for loan and lease losses ("ALLL") of such amount. The level of other classified loans decreased, which drove a decrease in the related quantitative factor within the Company's ALLL model. At the same time, the level of criticized loans (i.e., those exhibiting some deterioration, but of insufficient amount to be deemed classified) increased, resulting in an increase in the related quantitative factor of lesser amount, and loans on the Company's watch list, but not yet criticized, declined substantially, driving a quantitative factor decrease. In the fourth quarter, there was a lessening in concentrations by loan type, particularly single-family mortgages, which resulted in a decrease in the related qualitative factor. In addition, during the fourth quarter it became apparent that the COVID pandemic was worsening and economic conditions would continue to be affected by it longer than originally anticipated. The changes in the amount of impairment and the quantitative and qualitative factors used to compute the ALLL offset one another in the fourth quarter of 2020, and accordingly management determined no provision for loan losses was warranted.

As of December 31, 2020, the Company's allowance for loan and lease losses was $8.8 million, or 1.46% percent of loans held for investment, compared to $8.8 million, or 1.40% of loans held for investment, as of September 30, 2020, and $6.6 million, or 1.29% of loans held for investment, as of December 31, 2019. The allowance for loan losses as of December 31, 2020 was 1.71% of loans held for investment excluding its net investment of $90.4 million in loans insured under the PPP, compared to 1.69% as of September 30, 2020.

Gross impaired loans totaled $1.2 million as of December 31, 2020, compared to $836 thousand as of September 30, 2020 and $652 thousand as of December 31, 2019, and were extended to borrowers engaged in manufacturing, retail trade, and business services. The amount of impairment was $804 thousand at December 31, 2020, compared to $481 thousand at September 30, 2020 and $326 thousand at December 31, 2019. The Company recognized net recoveries of $12 thousand, $61 thousand, and $12 thousand in the fourth quarter of 2020, the third quarter of 2020, and the fourth quarter of 2019, respectively, and recognized no loan or lease charge-offs in such periods.

NON-INTEREST INCOME

Non-interest income recognized in the fourth quarter of 2020 was $233 thousand, compared to $326 thousand in the third quarter of 2020. A $63 thousand decrease in mortgage referral fees was the primary cause of the decrease.

NON-INTEREST EXPENSES

Non-interest expenses increased $62 thousand, or 1.4%, to $4.64 million in the fourth quarter of 2020, compared to $4.58 million for the third quarter of 2020, and increased $895 thousand, or 23.9%, compared to $3.74 million recognized in the fourth quarter of 2019.

Salaries and benefits increased $233 thousand, or 8.6%, to $2.94 million in the fourth quarter of 2020 from $2.70 million in the third quarter of 2020, and increased $800 thousand, or 37.4%, compared to $2.14 million in the fourth quarter of 2019. Employee salaries increased $163 thousand, or 7.4%, sequentially and $430 thousand, or 22.2%, year over year, reflecting expansion in the Company's headcount.

Professional fees decreased $227 thousand, or 64.9%, to $123 thousand in the fourth quarter of 2020 from $350 thousand in the third quarter of 2020, and decreased $112 thousand, or 47.7%, compared to $235 thousand in the fourth quarter of 2019. The decrease is attributable to sequential decreases of $124 thousand in legal fees and $124 thousand in executive recruiting fees and a year-over-year decrease of $147 thousand in consulting fees.

The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 67.6% for the fourth quarter of 2020, compared to 69.9% for the third quarter of 2020 and 61.3% for the fourth quarter of 2019. Annualized non-interest expenses as a percent of average total assets were 2.44%, 2.45%, and 2.45% for the fourth quarter of 2020, the third quarter of 2020, and the fourth quarter of 2019, respectively.

About 1st Capital Bancorp

The Company's primary target markets are commercial enterprises, professionals, real estate investors, family business entities, and residents along the Central Coast region of California. The Company's subsidiary, 1st Capital 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 and the U.S. Department of Agriculture. A full suite of deposit accounts also is furnished, complemented by robust cash management services. The Bank operates full service branch offices in Monterey, Salinas, King City, San Luis Obispo, and Santa Cruz County. The Company's corporate offices are located at 150 Main Street, Suite 150, Salinas, California 93901. The Company's website is www.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 Company's market areas; governmental regulation and legislation; credit quality; competition affecting the Company's businesses generally; the risk of natural disasters and future catastrophic events including pandemics, terrorist related incidents and other factors beyond the Company's control; and other factors. The Company 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.1stCapital.bank internet site for no charge.

For further information, please contact:

Samuel D. Jimenez
or
Michael J. Winiarski
Chief Executive Officer
 
Chief Financial Officer
831.264.4057 office
 
831.264.4014 office
 
 
 
 

– financial data follow –

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

                         
 
  December 31,     September 30,     June 30,     December 31,  
Financial Condition Data1
  2020     2020     2020     2019  
Assets
                       
Cash and due from banks
  9,304     6,966     6,719     6,198  
Funds held at the Federal Reserve Bank2
    97,462       38,715       29,056       46,155  
Available-for-sale securities, at fair value
    106,214       59,649       62,473       66,095  
Loans held for sale
          442       488        
Loans receivable held for investment:
                               
Construction / land (including farmland)
    17,097       15,850       16,372       19,457  
Residential 1 to 4 units
    102,688       115,881       127,192       140,623  
Home equity lines of credit
    5,955       6,034       6,630       6,964  
Multifamily
    84,704       79,693       71,795       59,830  
Owner occupied commercial real estate
    72,427       70,935       70,478       70,622  
Investor commercial real estate
    174,437       173,557       172,219       159,350  
Commercial and industrial
    47,550       48,812       47,717       41,100  
Paycheck Protection Program
    90,382       106,559       100,652        
Other loans
    9,914       10,877       10,638       12,943  
Total loans
    605,154       628,198       623,693       510,889  
Allowance for loan losses
    (8,816 )     (8,804 )     (8,093 )     (6,594 )
Net loans
    596,338       619,394       615,600       504,295  
Premises and equipment, net
    2,919       3,034       2,541       2,102  
Bank owned life insurance
    8,262       8,215       8,167       8,071  
Investment in FHLB3 stock, at cost
    3,534       3,534       3,534       3,501  
Accrued interest receivable and other assets
    8,518       9,073       8,113       8,930  
Total assets
  832,551     749,022     736,691     645,347  
 
                               
Liabilities and shareholders' equity
                               
Deposits:
                               
Noninterest-bearing demand deposits
  386,711     356,730     343,042     280,634  
Interest-bearing checking accounts
    65,686       54,228       46,774       35,804  
Money market deposits
    159,509       128,039       138,796       128,559  
Savings deposits
    121,148       105,431       103,152       107,677  
Time deposits
    15,284       17,147       19,031       19,395  
Total deposits
    748,338       661,575       650,795       572,069  
Borrowings
    5,000       10,000       10,000        
Accrued interest payable and other liabilities
    4,880       5,059       4,856       5,263  
Shareholders' equity
    74,333       72,388       71,040       68,015  
Total liabilities and shareholders' equity
  832,551     749,022     736,691     645,347  
 
                               
Shares outstanding
    5,570,021       5,543,393       5,535,804       5,520,179  
Nominal and tangible book value per share
  13.35     13.06     12.83     12.32  
Ratio of net loans to total deposits
    79.69 %     93.62 %     94.59 %     88.15 %
                                 

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 BANCORP
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands, except per share data)

 
  Three Months Ended  
 
  December 31,     September 30,     June 30,     December 31,  
Operating Results Data1
  2020     2020     2020     2019  
Interest and dividend income
                       
Loans
  6,531     6,133     6,234     5,556  
Investment securities
    266       253       296       410  
Other
    55       51       32       153  
Total interest and dividend income
    6,852       6,437       6,562       6,119  
Interest expense
                               
Interest-bearing checking
    4       3       3       3  
Money market deposits
    122       101       116       159  
Savings deposits
    80       72       68       93  
Time deposits
    20       36       53       55  
Total interest expense
    226       212       240       310  
Net interest income
    6,626       6,225       6,322       5,809  
Provision for loan losses
          650       650        
Net interest income after provision
                               
for loan losses
    6,626       5,575       5,672       5,809  
 
                               
Noninterest income
                               
Service charges on deposits
    73       73       64       76  
BOLI dividend income
    47       48       48       50  
Gain on sale of loans
    23       52              
Gain on sale of investments
                       
Other
    90       153       69       179  
Total noninterest income
    233       326       181       305  
 
                               
Noninterest expenses
                       
Salaries and benefits
    2,937       2,704       2,393       2,137  
Occupancy
    408       390       353       331  
Data and item processing
    249       225       206       231  
Furniture and equipment
    131       127       189       169  
Professional services
    123       350       167       235  
Provision for unfunded loan
                               
commitments
    3       41             12  
Other
    789       741       645       630  
Total noninterest expenses
    4,640       4,578       3,953       3,745  
Income before provision for income taxes
    2,219       1,323       1,900       2,369  
Provision for income taxes
    626       370       550       634  
Net income
  1,593     953     1,350     1,735  

 

                   
Common Share Data1
                 
Earnings per common share
                 
Basic
  $ 0.29   $ 0.17   $ 0.24   $ 0.32  
Diluted
  $ 0.28   $ 0.17   $ 0.24   $ 0.31  
 
                         
Weighted average common shares outstanding
                         
Basic
    5,553,493     5,540,643     5,531,341     5,506,349  
Diluted
    5,609,681     5,575,971     5,563,391     5,584,827  

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 22, 2019 and paid December 20, 2019.

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

       
 
  Twelve Months Ended  
 
  December 31,     December 31,  
Operating Results Data1
  2020     2019  
Interest and dividend income
           
Loans
  24,581     22,385  
Investment securities
    1,190       1,765  
Other
    268       943  
Total interest and dividend income
    26,039       25,093  
Interest expense
               
Interest-bearing checking
    13       12  
Money market deposits
    516       554  
Savings deposits
    308       357  
Time deposits
    164       220  
Total interest expense
    1,001       1,143  
Net interest income
    25,038       23,950  
Provision for loan losses
    2,125        
Net interest income after provision for loan losses
    22,913       23,950  
 
               
Noninterest income
               
Service charges on deposits
    304       323  
BOLI dividend income
    190       205  
Gain on sale of loans
    75       41  
Gain on sale of investments
          60  
Other
    459       1,283  
Total noninterest income
    1,028       1,912  
                 
Noninterest expenses
           
Salaries and benefits
    10,858       9,963  
Occupancy
    1,515       1,335  
Data and item processing
    901       950  
Furniture and equipment
    638       617  
Professional services
    802       616  
Provision for unfunded loan commitments
    27       (18 )
Other
    2,925       2,745  
Total noninterest expenses
    17,666       16,208  
Income before provision for income taxes
    6,275       9,654  
Provision for income taxes
    1,770       2,567  
Net income
  4,505     7,087  
             
Common Share Data1
           
Earnings per common share
           
Basic
  $ 0.81     $ 1.29  
Diluted
  $ 0.81     $ 1.27  
 
               
Weighted average common shares outstanding      
Basic
    5,536,805       5,486,515  
Diluted
    5,582,987       5,571,351  
                 

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 22, 2019 and paid December 20, 2019.

1ST CAPITAL BANCORP
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

 
  December 31,     September 30,     June 30,     December 31,  
Asset Quality
  2020     2020     2020     2019  
 
                       
Loans past due 90 days or more and accruing interest
               
Nonaccrual restructured loans
                       
Other nonaccrual loans
    1,299       1,535       490       492  
Other real estate owned
                       
 
  1,299     1,535     490     492  
Allowance for loan losses to total loans
    1.46 %     1.40 %     1.30 %     1.29 %
Allowance for loan losses to nonperforming loans
    678.68 %     573.55 %     1651.63 %     1340.24 %
Nonaccrual loans to total loans
    0.21 %     0.24 %     0.08 %     0.10 %
Nonperforming assets to total assets
    0.16 %     0.20 %     0.07 %     0.08 %
 
                               
Regulatory Capital and Ratios
                               
Common equity tier 1 capital
  $ 72,461     $ 70,831     $ 69,675     $ 67,471  
Tier 1 regulatory capital
  $ 72,461     $ 70,831     $ 69,675     $ 67,471  
Total regulatory capital
  $ 78,957     $ 77,117     $ 75,868     $ 73,487  
Tier 1 leverage ratio
    9.44 %     9.58 %     9.66 %     10.90 %
Common equity tier 1 risk-based capital ratio
    14.01 %     14.16 %     14.12 %     14.04 %
Tier 1 risk-based capital ratio
    14.01 %     14.16 %     14.12 %     14.04 %
Total risk-based capital ratio
    15.27 %     15.42 %     15.37 %     15.29 %
                                 

 

 
  Three Months Ended  
 
  December 31,     September 30,     June 30,     December 31,  
Selected Financial Ratios1
  2020     2020     2020     2019  
Return on average total assets
    0.82 %     0.51 %     0.75 %     1.11 %
Return on average shareholders' equity
    8.60 %     5.26 %     7.74 %     10.21 %
Net interest margin2
    3.54 %     3.45 %     3.65 %     3.89 %
Net interest income to average total assets
    3.42 %     3.33 %     3.51 %     3.72 %
Efficiency ratio
    67.65 %     69.88 %     60.79 %     61.25 %
                                 

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  
 
  December 31,     September 30,     June 30,     December 31,  
Selected Average Balances
  2020     2020     2020     2019  
Gross loans
  618,458     628,889     608,076     501,995  
Investment securities
    75,020       61,323       63,034       67,695  
Other interest earning assets
    50,503       28,349       26,044       25,572  
Total interest earning assets
  743,981     718,561     697,154     595,262  
Total assets
  769,694     741,263     721,907     620,218  
 
                               
Interest-bearing checking accounts
  54,120     47,246     43,774     38,440  
Money market deposits
    136,535       127,094       152,748       113,313  
Savings deposits
    111,468       105,548       101,291       106,293  
Time deposits
    15,937       17,748       19,247       19,484  
Total interest-bearing deposits
    318,060       297,636       317,060       277,530  
Noninterest-bearing demand deposits
    364,571       356,738       326,152       269,597  
Total deposits
  682,631     654,374     643,212     547,127  
Borrowings
  8,261     10,000     3,736      
Shareholders' equity
  73,488     71,849     69,982     67,381  
                                 

1ST CAPITAL BANCORP
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

       
 
  Twelve Months Ended  
 
  December 31,     December 31,  
Selected Financial Ratios
  2020     2019  
Return on average total assets
    0.63 %     1.15 %
Return on average shareholders' equity
    6.32 %     11.09 %
Net interest margin2
    3.62 %     4.03 %
Net interest income to average total assets
    3.48 %     3.87 %
Efficiency ratio
    67.78 %     62.67 %
                 

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.

 
  Twelve Months Ended  
 
  December 31,     December 31,  
Selected Average Balances
  2020     2019  
Gross loans
  593,887     488,996  
Investment securities
    66,146       69,052  
Other interest earning assets
    32,502       38,892  
Total interest earning assets
  692,535     596,940  
Total assets
  716,834     618,384  
 
               
Interest-bearing checking accounts
  46,829     37,916  
Money market deposits
    137,155       119,880  
Savings deposits
    105,383       106,130  
Time deposits
    18,068       19,075  
Total interest-bearing deposits
    307,435       283,001  
Noninterest-bearing demand deposits
    327,651       266,149  
Total deposits
  635,086     549,150  
Borrowings
  5,519      
Shareholders' equity
  71,090     63,930  
                 

1ST CAPITAL BANCORP
CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

December 31, 2020:
  Original Loan-to-Value Ratio  
 
  Average     Median     Maximum  
Construction/land
    23.52 %     20.40 %     65.93 %
Residential 1 to 4 units
    52.01 %     52.94 %     77.90 %
Home equity lines of credit
    23.47 %     21.87 %     75.00 %
Multifamily
    43.13 %     45.62 %     71.39 %
Owner-occupied CRE
    47.54 %     48.01 %     84.45 %
Investor CRE
    40.85 %     41.80 %     77.36 %
                         

 

December 31, 2020:
  Original Loan-to-Value Ratio  
 
  Under 50%     50%-60%     60%-70%     70%-75%     75%-80%     Over 80%     Total  
Construction/land
  11,752         5,345                 17,097  
Residential 1 to 4 units
    39,043       28,703       23,689       7,557       3,696             102,688  
Home equity lines of credit
    4,863       283       207       602                   5,955  
Multifamily
    36,769       24,120       20,652       3,163                   84,704  
Owner-occupied CRE
    28,878       21,505       13,806       7,364       179       695       72,427  
Investor CRE
    106,186       45,405       16,287       3,425       3,134             174,437  
 
  227,491     120,016     79,986     22,111     7,009     695     457,308  
                                                         

 

December 31, 2020:
  Commercial Real Estate Loans  
 
  Investor     Owner-Occupied  
Office
  31,082     17,925  
Industrial and warehouse
    27,815       26,668  
Hotels and motels
    27,239        
Retail
    22,810       6,618  
Mini storage
    13,285        
Health care
    12,540       7,984  
Mixed use
    32,873       4,725  
Other
    6,793       8,507  
 
    174,437       72,427  
Multifamily residential
    84,704        
Single-family residential
    30,827       77,816  
 
  289,968     150,243  
 
               
December 31, 2020:
  Commercial          
    and Industrial          
Health care
  27,717          
Agricultural
    20,654          
Manufacturing
    17,859          
Wholesale trade
    16,048          
Construction
    16,043          
Real estate rental/leasing
    9,210          
Professional services
    7,669          
Retail trade
    4,951          
Other
    27,695          
 
  147,846          
 
               

SOURCE: 1st Capital Bank 

View source version on accesswire.com:
https://www.accesswire.com/626800/1st-Capital-Bancorp-Announces-Fourth-Quarter-2020-Financial-Results

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