HENDERSONVILLE, N.C., May 6 /PRNewswire-FirstCall/ -- Mountain 1st Bank & Trust Company (BULLETIN BOARD: MOBT) reported earnings of $789 thousand or $0.15 per diluted share for the first quarter of 2008. This compares with $891 thousand or $0.16 per diluted share earned during the same period in 2007, representing a decrease in net income of 11.5%. At March 31, 2008, the Bank's assets increased to $653.7 million from $606.5 million at December 31, 2007, representing an increase of $47.2 million or 7.8% for the quarter. Loans and deposits continued to increase during the quarter totaling $564.0 million and $543.0 million, respectively at March 31, 2008. This compares with $521.9 million and $529.1 million, respectively at December 31, 2007, representing increases of $42.0 million or 8.1% and $13.9 million or 2.6%, respectively.
Greg Gibson, CEO stated, "It is a bit difficult to be comfortable saying we are pleased with anything other than consistent increases in earnings. However, given the current banking environment, we are indeed pleased with the Bank's first quarter performance. Our decline in earnings was a direct result of the unprecedented decline in interest rates over the past seven months. Since the Fed began decreasing short term interest rates in late September of last year, we have experienced a decline of 325 basis points in rates. This has had a direct and pronounced impact on the Bank's net interest margin. Compared with the first quarter of 2007, the Bank's net interest margin declined from 3.90% to 3.36% in the first quarter of 2008. Fortunately, we believe this to be predominately a short term issue and we expect much of this decline in margin will be recovered as the Bank's CD portfolio is repriced over the next two quarters. Also we were very pleased that our asset quality remained good in the first quarter. Given the turmoil in much of the banking industry, we are pleased to be able to report the continued growth and progress of Mountain 1st Bank."
This Press Release and its exhibits contain statements relating to our financial condition, results of operations, plans, strategies, trends, projections of results of specific activities or investments, expectations or beliefs about future events or results, and other statements that are not descriptions of historical facts. Those statements may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may be identified by terms such as "may," "will," "should," "could," "expects," "plans," "intends," "anticipates," "believes," "estimates," "predicts," "forecasts," "potential" "opportunity," or "continue," or similar terms or the negative of these terms, or other statements concerning opinions or judgments of our management about future events. Forward-looking information is inherently subject to risks and uncertainties, and actual results could differ materially from those currently anticipated due to a number of factors, which include, but are not limited to, factors discussed in our Annual Report on Form 10-K and in other reports we file with the Federal Deposit Insurance Corporation from time to time. Other factors that could influence the accuracy of those forward-looking statements include, but are not limited to: (a) the financial success or changing strategies of our customers; (b) customer acceptance of our services, products and fee structure; (c) changes in competitive pressures among depository and other financial institutions or in our ability to compete effectively against larger financial institutions in our banking market; (d) actions of government regulators, or changes in laws, regulations or accounting standards, that adversely affect our business; (e) our ability to manage our growth and to underwrite increasing volumes of loans; (f) the impact on our profits of increased staffing and expenses resulting from expansion; (g) changes in the interest rate environment and the level of market interest rates that reduce our net interest margin and/or the volumes and values of loans we make and securities we hold; (h) weather and similar conditions that affect our customers in the markets we serve; (i) changes in general economic or business conditions and the real estate market in our banking market (particularly changes that affect our loan portfolio, the abilities of our borrowers to repay their loans, and the values of loan collateral); and (j) other developments or changes in our business that we do not expect. Although our management believes that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. All forward-looking statements attributable to us are expressly qualified in their entirety by the cautionary statements in this paragraph. We have no obligation, and do not intend, to update these forward-looking statements.
About Mountain 1st Bank
Established in mid 2004 and headquartered in Hendersonville, NC, Mountain 1st Bank and Trust is one of the fastest growing and most successful de novo community banks in the southeast. With over $600 million in assets, Mountain 1st Bank and Trust's more than 155 employees serve nine counties in western North Carolina through fourteen full service branches. Mountain 1st Bank and Trust is one of the few publicly traded companies headquartered in western North Carolina (BULLETIN BOARD: MOBT) . For more information, visit http://www.mountain1st.com/.
Mountain 1st Bank & Trust Company Selected Financial Highlights For the Three Months Ended Amount Percent March 31, Increase/ Increase/ 2008 2007 (Decrease) (Decrease) Selected Income (dollars in thousands except Statement Data and share and per share data) Ratios (unaudited) Net interest income $5,057 $4,643 $414 8.92% Provision for loan losses 685 663 22 3.32% Noninterest income 1,358 1,059 299 28.23% Noninterest expense 4,509 3,528 981 27.81% Income before income taxes 1,221 1,511 (290) -19.19% Income tax expense 432 620 (188) -30.32% Net income $789 $891 $(102) -11.45% Net interest margin 3.36% 3.90% -0.54% -13.85% Return on average assets 0.50% 0.72% -0.22% -30.50% Return on average equity 6.72% 8.15% -1.43% -17.56% Efficiency ratio 70.29% 61.87% 8.42% 13.60% Net charge-offs to average total loans, excluding held for sale 0.00% 0.02% -0.02% -96.54% Nonperforming assets to period end loans and other real estate 0.25% 0.16% 0.14% 92.63% Nonperforming assets to total assets 0.20% 0.12% 0.09% 72.12% Net income per share: Basic (1) $0.16 $0.18 $(0.02) -11.67% Diluted (1) $0.15 $0.16 $(0.01) -8.24% Weighted average shares outstanding: Basic (1) 4,997,027 4,984,529 12,498 0.25% Diluted (1) 5,256,327 5,446,481 (190,154) -3.49% (1) Amounts have been adjusted for stock splits As of As of Amount Percent March 31, December 31, Increase/ Increase/ Selected Balance 2008 2007 (Decrease) (Decrease) Sheet Data (unaudited) (unaudited) (dollars in thousands except share and per share data) Total assets $653,666 $606,491 $47,175 7.78% Loans, including loans held for sale 563,978 521,943 42,035 8.05% Allowance for loan losses 8,253 7,571 682 9.01% Deposits 543,031 529,105 13,926 2.63% Federal funds purchased and securities sold under agreements to repurchase 7,169 9,458 (2,289) -24.20% Borrowings 50,000 15,000 35,000 233.33% Shareholders' equity 47,278 46,212 1,066 2.31% Book value per share $9.46 $9.25 $0.21 2.27%
