1st Century Bank, N.A. ("1st Century") (OTCBB:FCNA)
announced today that strong growth in assets, loans and deposits and
an expanding net interest margin contributed to improved financial
performance for the period ended December 31, 2005.
FINANCIAL HIGHLIGHTS (at or periods ended December 31, 2005, compared to December 31, 2004)
-- Total assets grew 88% to $161.6 million in 2005.
-- Total loans outstanding increased 157% to $86.4 million.
-- Deposits grew 67% to $107.1 million, with non-interest bearing deposits reaching $26.0 million.
-- Quarterly net interest margin expanded 210 basis points to 4.81%, compared to the same period last year.
-- Credit quality remained strong with no non-performing loans at December 31, 2005.
"The investment in the resources and people necessary to build a solid foundation during our first 22 months of operation are beginning to be reflected in our financial performance with the strong growth and improved operating performance," noted Richard S. Cupp, President and CEO. "We believe that 1st Century Bank is well positioned to continue the momentum going into the year 2006."
Total assets increased to $161.6 million at December 31, 2005, representing an 88% increase from the same period last year and an 18% increase over the $136.6 million asset level for the quarter ended September 30, 2005. Total loans outstanding increased to $86.4 million at December 31, 2005, an increase of 157% from the same period last year and a 21% increase for the quarter. All new loan production was the result of direct marketing efforts to 1st Century's target markets. Total deposits at December 31, 2005 were $107.1 million, an increase of 67% from the same period last year and a 31% increase from the prior quarter. The level of non-interest bearing deposits increased to $26.0 million, or 24% of total deposits at December 31, 2005.
The quarterly net interest margin expanded 210 basis points to 4.81% in 2005, compared to the fourth quarter of 2004. This reflects the continued deployment of deposits and capital into loans. Net interest income for the fourth quarter was $1,807,000, representing a 215% increase from the same period last year and a 30% increase from the prior quarter. Operating expenses for the fourth quarter (excluding non-cash compensation expense) remained stable at $1,748,000 compared to $1,705,000 for the third quarter. The quarterly net loss from operations at December 31, 2005 of $279,000, excluding non-cash compensation expense, represents a 53% reduction from the $599,000 loss incurred for the third quarter ended September 30, 2005 and a 65% decrease from the quarter ended December 31, 2004 loss of $788,000.
Alan I. Rothenberg, Chairman, stated, "2005 represented a year of continued achievements for 1st Century Bank. While we completed a two-for-one stock split, a $35.2 million secondary stock offering, and attracted talented employees and directors to join the Bank, we remained focused on executing our original strategic plan. This keen focus will enable 1st Century Bank to continue to realize its potential as a top performing financial institution."
1st Century is a full service bank headquartered in the Century City area of Los Angeles, California. 1st Century's primary focus is relationship banking to family owned and closely held middle market businesses, professional service firms and high net worth individuals, real estate investors and entrepreneurs. Additional information is available at www.1stcenturybank.com.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this letter constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to 1st Century's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on 1st Century's operating results, ability to attract deposit and loan customers and the quality of 1st Century's earning assets; (2) government regulation; and (3) the other risks set forth in 1st Century's reports filed with the Office of the Comptroller of the Currency, including its Annual Report on Form 10-KSB for the year ended December 31, 2004. 1st Century does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.
FINANCIAL HIGHLIGHTS (at or periods ended December 31, 2005, compared to December 31, 2004)
-- Total assets grew 88% to $161.6 million in 2005.
-- Total loans outstanding increased 157% to $86.4 million.
-- Deposits grew 67% to $107.1 million, with non-interest bearing deposits reaching $26.0 million.
-- Quarterly net interest margin expanded 210 basis points to 4.81%, compared to the same period last year.
-- Credit quality remained strong with no non-performing loans at December 31, 2005.
"The investment in the resources and people necessary to build a solid foundation during our first 22 months of operation are beginning to be reflected in our financial performance with the strong growth and improved operating performance," noted Richard S. Cupp, President and CEO. "We believe that 1st Century Bank is well positioned to continue the momentum going into the year 2006."
Total assets increased to $161.6 million at December 31, 2005, representing an 88% increase from the same period last year and an 18% increase over the $136.6 million asset level for the quarter ended September 30, 2005. Total loans outstanding increased to $86.4 million at December 31, 2005, an increase of 157% from the same period last year and a 21% increase for the quarter. All new loan production was the result of direct marketing efforts to 1st Century's target markets. Total deposits at December 31, 2005 were $107.1 million, an increase of 67% from the same period last year and a 31% increase from the prior quarter. The level of non-interest bearing deposits increased to $26.0 million, or 24% of total deposits at December 31, 2005.
The quarterly net interest margin expanded 210 basis points to 4.81% in 2005, compared to the fourth quarter of 2004. This reflects the continued deployment of deposits and capital into loans. Net interest income for the fourth quarter was $1,807,000, representing a 215% increase from the same period last year and a 30% increase from the prior quarter. Operating expenses for the fourth quarter (excluding non-cash compensation expense) remained stable at $1,748,000 compared to $1,705,000 for the third quarter. The quarterly net loss from operations at December 31, 2005 of $279,000, excluding non-cash compensation expense, represents a 53% reduction from the $599,000 loss incurred for the third quarter ended September 30, 2005 and a 65% decrease from the quarter ended December 31, 2004 loss of $788,000.
Alan I. Rothenberg, Chairman, stated, "2005 represented a year of continued achievements for 1st Century Bank. While we completed a two-for-one stock split, a $35.2 million secondary stock offering, and attracted talented employees and directors to join the Bank, we remained focused on executing our original strategic plan. This keen focus will enable 1st Century Bank to continue to realize its potential as a top performing financial institution."
1st Century is a full service bank headquartered in the Century City area of Los Angeles, California. 1st Century's primary focus is relationship banking to family owned and closely held middle market businesses, professional service firms and high net worth individuals, real estate investors and entrepreneurs. Additional information is available at www.1stcenturybank.com.
FORWARD LOOKING STATEMENTS
Certain matters discussed in this letter constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward looking statements relate to 1st Century's current expectations regarding deposit and loan growth, operating results and the strength of the local economy. These forward looking statements are subject to certain risks and uncertainties that could cause the actual results, performance or achievements to differ materially from those expressed, suggested or implied by the forward looking statements. These risks and uncertainties include, but are not limited to: (1) the impact of changes in interest rates, a decline in economic conditions and increased competition among financial service providers on 1st Century's operating results, ability to attract deposit and loan customers and the quality of 1st Century's earning assets; (2) government regulation; and (3) the other risks set forth in 1st Century's reports filed with the Office of the Comptroller of the Currency, including its Annual Report on Form 10-KSB for the year ended December 31, 2004. 1st Century does not undertake, and specifically disclaims, any obligation to update any forward-looking statements to reflect occurrences or unanticipated events or circumstances after the date of such statements.