SALINAS, Calif., Feb. 01, 2024 (GLOBE NEWSWIRE) -- 1st Capital Bancorp (the "Company"), (OTCQX: FISB), the $989.1 million asset bank holding company and parent company of 1st Capital Bank (the "Bank"), today reported unaudited net income of $677 thousand, or $0.12 per diluted share, for the quarter ended December 31, 2023, compared to net income of $1.19 million, or $0.22 per diluted share, for the quarter ended September 30, 2023, and $1.31 million, or $0.24 per diluted share, for the quarter ended December 31, 2022. For the twelve months ended December 31, 2023, net income was $3.5 million, or $0.64 per diluted share, compared to $8.6 million, or $1.55 per diluted share for the prior twelve months ended December 31, 2022.
Loan demand remained strong in the fourth quarter as the Company's core loans increased $19.9 million, or 3.3%, at December 31, 2023, compared to September 30, 2023. Loan yields expanded 18 basis points (bps) to 5.24% for the quarter ended December 31, 2023, compared to 5.07% for the quarter ended September 30, 2023. Nonperforming assets to total assets was 0.18% as of December 31, 2023, versus 0.22% as of September 30, 2023, with the decrease driven by lower overall balances in the wholesale loan portfolio. Deposit balances decreased $15.1 million, or 1.7%, in the quarter ended December 31, 2023, compared to September 30, 2023, driven by tax payments, estate planning, and year-end distributions by clients. Operating expenses were negatively impacted in Q4 due to one-time severance costs related to the retirement of an executive.
"We expect continuing core loan growth to drive solid net interest margin expansion in the year ahead, despite the near-term funding expense pressure. We are especially pleased with our core loan growth which exceeded 12% for the year," said Sam Jimenez, Chief Executive Officer. "Although 2023 operating performance was disappointing, our strong regulatory capital position, strong credit quality, and solid liquidity allows us to remain focused on serving our clients and communities along the Central Coast."
Financial Highlights
Performance highlights for the quarter ended December 31, 2023, as compared to the quarter ended September 30, 2023, and the quarter ended December 31, 2022:
- Earnings per share (diluted) were $0.12 for the fourth quarter of 2023, as compared to $0.22 and $0.24 for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- Pretax, pre-provision income for the quarter ended December 31, 2023, totaled $2.4 million, as compared to $2.8 million and $2.2 million for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- Return on average equity was 4.81% for the fourth quarter, as compared to 8.06% and 10.47% for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- Return on average assets was 0.27% for the fourth quarter as compared to 0.48% and 0.53% for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- Net interest margin was 3.40% for the fourth quarter as compared to 3.37% and 3.63% for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- The Company's efficiency ratio was 72.71% for the fourth quarter, as compared to 67.77% and 72.26% for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- The Company recorded provision for credit loss expense of $1.47 million for the fourth quarter compared to $1.16 million and $523 thousand for the quarters ended September 30, 2023, and December 31, 2022, respectively.
- As of December 31, 2023, the Company's nonperforming assets to total assets was 0.18%, as compared to 0.22% and 0.06% for September 30, 2023, and December 31, 2022, respectively.
- The Company reported total assets, total deposits, and total loans as of December 31, 2023, of $989.1 million, $890.9 million, and $620.8 million, respectively.
- Federal regulatory capital ratios for the quarters ended December 31, 2023, September 30, 2023, and December 31, 2022, exceed well capitalized thresholds.
- At December 31, 2023, the Company has $391.2 million in available liquidity from secured and unsecured borrowing lines, which represents 39.5% of total assets.
Net Interest Income and Net Interest Margin
The Company's fourth quarter 2023 net interest income increased $192 thousand, or 2.3%, to $8.43 million as compared with $8.24 million for the quarter ended September 30, 2023, as earning asset yields outpaced expansion in funding costs. Loan interest income increased $526 thousand, or 7.0%, to $8.06 million for the quarter ended December 31, 2023, compared to $7.54 million for the quarter ended September 30, 2023. Interest income on investment securities remained stable at $1.92 million and $1.94 million, respectively, for the quarters ended December 31, 2023, and September 30, 2023. Other interest income increased $92 thousand, or 13.6%, to $769 thousand for the quarter ended December 31, 2023, compared to $677 thousand for the quarter ended September 30, 2023, due to higher yields on average cash balances. Interest expense increased $408 thousand, or 20.3%, to $2.42 million for the quarter ended December 31, 2023, compared to $2.01 million for the quarter ended September 30, 2023, due to the increased utilization of wholesale borrowings and brokered CDs in the fourth quarter to manage seasonal deposit flows associated with Agriculture-related depositors and tax payments. Interest expense for each of the quarters presented includes $169 thousand related to subordinated debt.
The Company's net interest margin increased 3 basis points to 3.40% for the quarter ended December 31, 2023, from 3.37% when compared to the quarter ended September 30, 2023. This increase was primarily driven by the increase in earning asset yields. The 18 basis point expansion of loan yields from 5.07% for the quarter ended September 30, 2023, to 5.24% for the quarter ended December 31, 2023, outpaced higher overall funding costs. The Company's cost of funds increased 17 basis points from 0.87% for the quarter ended September 30, 2023, to 1.04% for the quarter ended December 31, 2023.
Allowance for Credit Losses
The Company adopted Accounting Standards Update (ASU) 2016-13, more commonly referred to as the Current Expected Credit Loss (CECL) method on January 1, 2023, using the modified retrospective method with no adjustments to prior period comparative financial statements for all financial assets measured at amortized cost and off-balance sheet credit exposure as well as held to maturity securities, which resulted in a $127 thousand increase to the allowance for credit losses, a $3 thousand reserve for held-to-maturity securities and a $26 thousand increase to the reserve for unfunded commitments. The impact to retained earnings, net of taxes, was $111 thousand. Reporting periods beginning after January 1, 2023, are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable Generally Accepted Accounting Principles in the United States.
Provision expense of $1.47 million was recorded in the quarter ended December 31, 2023, compared to $1.16 million in the quarter ended September 30, 2023. The provision expense was driven by overall loan growth and charge offs within the wholesale loan pool portfolios.
Noninterest Expenses
The Company's total non-interest expense increased $554 thousand, or 9.6%, to $6.3 million in the quarter ended December 31, 2023, compared to $5.8 million for the quarter ended September 30, 2023. This increase was primarily associated with severance costs related to the retirement of an executive.
Balance Sheet Summary
Total assets increased $5.3 million, or 0.5%, to $989.4 million at December 31, 2023, compared to $984.1 million at September 30, 2023. Cash and due from banks decreased $20.6 million, or 34.9%, to $38.3 million at December 31, 2023, compared to $58.8 million at September 30, 2023.
The investment portfolio increased $8.4 million to $291.2 million from a balance of $282.8 million at September 30, 2023. The increase was driven by a $12.0 million decrease in unrealized losses associated with the Company's available-for-sale investment security portfolio offset by paydowns; unrealized losses totaled $35.4 million at December 31, 2023 compared to $47.4 million at September 30, 2023. The decrease in unrealized losses was driven by changes in the treasury yield curve that positively impacted the portfolio's valuation. At December 31, 2023 and September 30, 2023, $70.1 million and $70.8 million, respectively, of the investment portfolio were classified as held-to-maturity. As of December 31, 2023, investments classified as held-to-maturity comprise approximately 24% of the portfolio.
Total loans outstanding were $620.8 million as of December 31, 2023, representing a $19.9 million, or 3.3%, increase from the September 30, 2023, outstanding balance of $600.9 million. Growth was balanced across all core loan sectors, with Multifamily, Construction & Land, Residential 1-4 units and Investor CRE experiencing the greatest dollar growth within the quarterly period. This core loan portfolio growth was partially offset by declines in wholesale consumer and lease pools which continue to pay down.
| Loan type (dollars in thousands) | 12/31/2023 | % of Total Loans | 9/30/2023 | % of Total Loans | 12/31/2022 | % of Total Loans | |||||||||||
| Construction / land (including farmland) | $ | 32,701 | 5.3 | % | $ | 27,671 | 4.6 | % | $ | 14,290 | 2.5 | % | |||||
| Residential 1 to 4 units | 67,679 | 10.9 | % | 63,038 | 10.5 | % | 54,609 | 9.7 | % | ||||||||
| Home equity lines of credit | 3,855 | 0.6 | % | 3,535 | 0.6 | % | 4,690 | 0.8 | % | ||||||||
| Multifamily | 91,065 | 14.7 | % | 84,157 | 14.0 | % | 79,227 | 14.0 | % | ||||||||
| Owner occupied commercial real estate | 128,520 | 20.7 | % | 125,664 | 20.9 | % | 108,140 | 19.2 | % | ||||||||
| Investor commercial real estate | 198,411 | 32.0 | % | 194,087 | 32.3 | % | 188,374 | 33.4 | % | ||||||||
| Commercial and industrial | 49,372 | 7.9 | % | 46,743 | 7.8 | % | 39,247 | 7.0 | % | ||||||||
| Paycheck Protection Program | - | 0.0 | % | - | 0.0 | % | - | 0.0 | % | ||||||||
| Leases | 26,636 | 4.3 | % | 30,113 | 5.0 | % | 41,380 | 7.3 | % | ||||||||
| Consumer | 13,372 | 2.2 | % | 15,837 | 2.6 | % | 26,423 | 4.7 | % | ||||||||
| Other loans | 9,207 | 1.4 | % | 10,030 | 1.7 | % | 8,058 | 1.4 | % | ||||||||
| Total loans | 620,818 | 100.00 | % | 600,875 | 100.0 | % | 564,438 | 100.0 | % | ||||||||
| Allowance for credit losses | (7,119 | ) | (6,918 | ) | (7,347 | ) | |||||||||||
| Net loans held for investment | $ | 613,699 | $ | 593,957 | $ | 557,091 | |||||||||||
Total deposits were $890.9 million at December 31, 2023 representing a $15.1 million decrease compared to total deposits of $906.1 million at September 30, 2023. Noninterest-bearing balances continue to comprise nearly half of total deposits at December 31, 2023 (48.0%).
| Deposit type (dollars in thousands) | 12/31/2023 | % of Total Deposits | 9/30/2023 | % of Total Deposits | 12/31/2022 | % of Total Deposits | ||||||||
| Interest- bearing checking accounts | $ | 48,006 | 5.4 | % | $ | 56,535 | 6.2 | % | $ | 75,242 | 8.7 | % | ||
| Money market | 227,482 | 25.5 | % | 289,700 | 32.0 | % | 214,293 | 24.9 | % | |||||
| Savings | 98,395 | 11.0 | % | 115,583 | 12.8 | % | 147,161 | 17.1 | % | |||||
| Time | 89,901 | 10.1 | % | 29,775 | 3.3 | % | 10,745 | 1.2 | % | |||||
| Total interest-bearing deposits | 463,784 | 52.0 | % | 491,593 | 54.3 | % | 447,441 | 51.9 | % | |||||
| Noninterest-bearing | 427,150 | 48.0 | % | 414,470 | 45.7 | % | 415,256 | 48.1 | % | |||||
| Total deposits | $ | 890,934 | 100.0 | % | $ | 906,063 | 100.0 | % | $ | 862,697 | 100.0 | % | ||
Subordinated debt balances totaled $14.8 million at December 31, 2023 and September 30, 2023. Other borrowings totaled $10.0 million and $0 at December 31, 2023 and September 30, 2023, respectively.
Shareholder's equity totaled $62.4 million at December 31, 2023 compared to $54.1 million at September 30, 2023, an increase of $8.3 million, or 15.2%. The increase is driven by the decrease in unrealized losses on the available-for-sale investment security portfolio, the impact of which flows through accumulated other comprehensive income (AOCI), a component of equity, partially offset by an increase in the fair value of the cap corridor and fair value hedges which positively impacted AOCI.
Asset Quality
Nonperforming assets were 0.18% of the Company's total assets at December 31, 2023, compared with 0.22% at September 30, 2023. The allowance for credit losses was 1.15% of outstanding loans at December 31, 2023, and September 30, 2023, respectively. The Company had $116 thousand in nonaccrual loans at December 31, 2023, representing 0.02% of total loans in each period. The Company recorded net charge-offs of $1.26 million in the quarter ended December 31, 2023, compared to $992 thousand in the quarter ended September 30, 2023. Charge-offs for the quarters ended December 31, 2023, and September 30, 2023, were all within the purchased consumer and lease pools.
| Asset Quality (dollars in thousands) | 12/31/2023 | 9/30/2023 | 12/31/2022 | ||||||
| Loans past due 90 days or more and accruing interest | $ | 1,668 | $ | 2,069 | $ | 539 | |||
| Other nonaccrual loans | 116 | 138 | -- | ||||||
| Other real estate owned | -- | -- | -- | ||||||
| Total nonperforming assets | $ | 1,784 | $ | 2,207 | $ | 539 | |||
| Allowance for credit losses to total loans | 1.15 | % | 1.15 | % | 1.30 | % | |||
| Allowance for credit losses to nonperforming loans | 399.05 | % | 313.46 | % | 1363.08 | % | |||
| Nonaccrual loans to total loans | 0.02 | % | 0.02 | % | 0.00 | % | |||
| Nonperforming assets to total assets | 0.18 | % | 0.22 | % | 0.06 | % | |||
| Net charge-offs to average total loans | 0.82 | % | 0.67 | % | 0.51 | % | |||
1ST CAPITAL BANCORP | ||||||||||
| CONDENSED FINANCIAL DATA - UNAUDITED | ||||||||||
| ($ in 000s, except per share data) | ||||||||||
| Assets | 12/31/2023 | 9/30/2023 | 12/31/2022 | |||||||
| Cash and due from banks | $ | 38,269 | $ | 58,826 | $ | 38,015 | ||||
| Investment securities available-for-sale | 221,136 | 212,075 | 233,530 | |||||||
| Investment securities held-to-maturity | 70,081 | 70,756 | 71,039 | |||||||
| Loans and leases held for investment | 620,818 | 600,875 | 564,438 | |||||||
| Allowance for credit losses | (7,119 | ) | (6,918 | ) | (7,347 | ) | ||||
| Net loans and leases held for investment | 613,699 | 593,957 | 557,091 | |||||||
| Other Assets | 45,876 | 48,480 | 43,727 | |||||||
| Total assets | $ | 989,061 | $ | 984,094 | $ | 943,402 | ||||
| Liabilities and Shareholders' Equity | ||||||||||
| Deposits: | ||||||||||
| Non-interest-bearing | $ | 427,150 | $ | 414,470 | $ | 415,256 | ||||
| Interest-bearing | 463,784 | 491,593 | 447,441 | |||||||
| Total deposits | 890,934 | 906,063 | 862,697 | |||||||
| Subordinated debentures | 14,814 | 14,795 | 14,738 | |||||||
| Other borrowings | 10,000 | -- | -- | |||||||
| Other liabilities | 10,925 | 9,099 | 9,457 | |||||||
| Shareholders' equity | 62,388 | 54,137 | 56,510 | |||||||
| Total liabilities and shareholders' equity | $ | 989,061 | $ | 984,094 | $ | 943,402 | ||||
| Shares outstanding | 5,568,746 | 5,529,805 | 5,499,937 | |||||||
| Earnings per share basic | $ | 0.12 | $ | 0.22 | $ | 0.24 | ||||
| Earnings per share diluted | $ | 0.12 | $ | 0.22 | $ | 0.24 | ||||
| Nominal and tangible book value per share | $ | 11.20 | $ | 9.79 | $ | 10.27 | ||||
1ST CAPITAL BANCORP | |||||||
| CONDENSED FINANCIAL DATA - UNAUDITED | |||||||
| ($ in 000s) | |||||||
| Three Months Ended | |||||||
| Operating Results Data | 12/31/2023 | 9/30/2023 | 12/31/2022 | ||||
| Interest and dividend income | |||||||
| Loans | $ | 8,064 | $ | 7,538 | $ | 6,963 | |
| Investment securities | 1,916 | 1,936 | 2,054 | ||||
| Federal Home Loan Bank stock | 95 | 93 | 82 | ||||
| Interest-bearing deposits | 769 | 677 | 250 | ||||
| Total interest and dividend income | 10,844 | 10,244 | 9,349 | ||||
| Interest expense | 2,416 | 2,008 | 874 | ||||
| Net interest income | 8,428 | 8,236 | 8,475 | ||||
| Provision for credit losses | 1,465 | 1,164 | 523 | ||||
| Net interest income after provision for credit losses | 6,963 | 7,072 | 7,952 | ||||
| Noninterest income | 303 | 314 | 620 | ||||
| Net gain (loss) on sales/calls of investment securities | -- | -- | (1,201 | ) | |||
| Noninterest expenses | |||||||
| Salaries and benefits expense | 4,044 | 3,386 | 3,345 | ||||
| Occupancy expense | 483 | 459 | 432 | ||||
| Data and item processing | 296 | 325 | 278 | ||||
| Furniture and equipment | 103 | 113 | 135 | ||||
| Professional services | 143 | 248 | 244 | ||||
| Other | 1,279 | 1,263 | 1,270 | ||||
| Total noninterest expenses | 6,348 | 5,794 | 5,704 | ||||
| Income before provision for income taxes | 918 | 1,592 | 1,667 | ||||
| Provision for income taxes | 241 | 398 | 362 | ||||
| Net income | $ | 677 | $ | 1,194 | $ | 1,305 | |
| Three Months Ended | ||||||||||
| Selected Average Balances | 12/31/2023 | 9/30/2023 | 12/31/2022 | |||||||
| Gross loans | $ | 610,034 | $ | 590,030 | $ | 575,696 | ||||
| Investment securities | 328,862 | 332,185 | 326,875 | |||||||
| Federal Home Loan Bank stock | 4,381 | 4,381 | 4,058 | |||||||
| Other interest earning assets | 49,663 | 54,550 | 32,942 | |||||||
| Total interest earning assets | 992,940 | 981,146 | 939,571 | |||||||
| Total assets | 987,101 | 980,038 | 970,167 | |||||||
| Interest-bearing checking accounts | 49,002 | 46,713 | 68,216 | |||||||
| Money market | 278,125 | 299,139 | 238,255 | |||||||
| Savings | 110,251 | 117,881 | 151,478 | |||||||
| Time deposits | 43,707 | 30,262 | 10,157 | |||||||
| Total interest- bearing deposits | 481,085 | 493,995 | 468,106 | |||||||
| Noninterest bearing demand deposits | 400,941 | 396,871 | 428,227 | |||||||
| Total deposits | 882,026 | 890,866 | 896,333 | |||||||
| Subordinated debentures and other borrowings | 39,259 | 20,163 | 14,733 | |||||||
| Shareholders' equity | $ | 55,866 | $ | 58,772 | $ | 49,477 | ||||
1ST CAPITAL BANCORP CONDENSED FINANCIAL DATA - UNAUDITED ($ in 000s) | ||||||||||
| Three Months Ended | ||||||||||
| Selected Financial Ratios | 12/31/2023 | 9/30/2023 | 12/31/2022 | |||||||
| Return on average total assets | 0.27 | % | 0.48 | % | 0.53 | % | ||||
| Return on average shareholders' equity | 4.81 | % | 8.06 | % | 10.47 | % | ||||
| Net interest margin | 3.40 | % | 3.37 | % | 3.63 | % | ||||
| Net interest income to average total assets | 3.39 | % | 3.33 | % | 3.47 | % | ||||
| Efficiency ratio | 72.71 | % | 67.77 | % | 72.26 | % | ||||
| 1ST CAPITAL BANCORP | ||||||
| CONDENSED FINANCIAL DATA - UNAUDITED | ||||||
| ($ in 000s) | ||||||
| Twelve Months Ended | ||||||
| Operating Results Data | 12/31/2023 | 12/31/2022 | ||||
| Interest and dividend income | ||||||
| Loans | $ | 29,542 | $ | 28,128 | ||
| Investment securities | 7,725 | 7,703 | ||||
| Federal Home Loan Bank stock | 336 | 261 | ||||
| Interest-bearing deposits | 2,199 | 445 | ||||
| Total interest and dividend income | 39,802 | 36,537 | ||||
| Interest expense | 7,654 | 2,645 | ||||
| Net interest income | 32,148 | 33,892 | ||||
| Provision for credit losses | 4,371 | 523 | ||||
| Net interest income after provision for credit losses | 27,777 | 33,369 | ||||
| Noninterest income | 1,287 | 1,624 | ||||
| Net gain (loss) on sales/calls of investment securities | (134 | ) | (1,150 | ) | ||
| Noninterest expenses | ||||||
| Salaries and benefits expense | 14,792 | 13,489 | ||||
| Occupancy expense | 1,819 | 1,780 | ||||
| Data and item processing | 1,257 | 1,085 | ||||
| Furniture and equipment | 434 | 552 | ||||
| Professional services | 938 | 696 | ||||
| Other | 5,051 | 4,594 | ||||
| Total noninterest expenses | 24,291 | 22,196 | ||||
| Income before provision for income taxes | 4,638 | 11,647 | ||||
| Provision for income taxes | 1,101 | 3,067 | ||||
| Net income | $ | 3,537 | $ | 8,580 | ||
| Twelve Months Ended | ||||
| Selected Average Balances | 12/31/2023 | 12/31/2022 | ||
| Gross loans | $ | 589,146 | $ | 583,623 |
| Investment securities | 333,622 | 353,804 | ||
| Federal Home Loan Bank stock | 4,285 | 4,023 | ||
| Other interest earning assets | 45,762 | 35,820 | ||
| Total interest earning assets | 972,815 | 977,270 | ||
| Total assets | 969,488 | 1,003,169 | ||
| Interest bearing checking accounts | 52,754 | 66,001 | ||
| Money market | 253,489 | 253,047 | ||
| Savings | 122,474 | 154,248 | ||
| Time deposits | 28,406 | 11,612 | ||
| Total interest-bearing deposits | 457,123 | 484,908 | ||
| Noninterest-bearing demand deposits | 413,067 | 429,240 | ||
| Total deposits | 870,190 | 914,148 | ||
| Subordinated debentures and other borrowings | 31,516 | 14,700 | ||
| Shareholders' equity | $ | 57,732 | $ | 65,431 |
| 1ST CAPITAL BANCORP CONDENSED FINANCIAL DATA - UNAUDITED ($ in 000s) | ||||
| Twelve Months Ended | ||||
| Selected Financial Ratios | 12/31/2023 | 12/31/2022 | ||
| Return on average total assets | 0.36 | % | 0.86 | % |
| Return on average shareholders' equity | 6.13 | % | 13.11 | % |
| Net interest margin | 3.34 | % | 3.51 | % |
| Net interest income to average total assets | 3.32 | % | 3.38 | % |
| Efficiency ratio | 72.95 | % | 64.59 | % |
| Regulatory Capital and Ratios | 12/31/2023 | 9/30/2023 | 12/31/2022 | ||||||
| Common equity tier 1 capital | $ | 104,620 | $ | 105,099 | $ | 101,409 | |||
| Tier 1 regulatory capital | $ | 104,620 | $ | 105,099 | $ | 101,409 | |||
| Total regulatory capital | $ | 111,935 | $ | 112,208 | $ | 108,911 | |||
| Tier 1 leverage ratio | 10.13 | % | 10.32 | % | 10.04 | % | |||
| Common equity tier 1 risk-based capital ratio | 14.66 | % | 15.01 | % | 15.21 | % | |||
| Tier 1 capital ratio | 14.66 | % | 15.01 | % | 15.21 | % | |||
| Total risk-based capital ratio | 15.68 | % | 16.03 | % | 16.34 | % | |||
About 1st Capital Bancorp
1st Capital Bancorp is the holding company for 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 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. The Bank's corporate offices are located at 150 Main Street, Suite 150, Salinas, California 93901. The Bank's website is www.1stCapital.bank. The main telephone number is 831.264.4000.
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 pandemics, 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.1stCapital.bank internet site for no charge.
For further information, please contact:
| Joel Keller | Samuel D. Jimenez | |
| EVP / Chief Financial Officer | Chief Executive Officer | |
| 831.264.4014 office | 831.264.4057 office | |
| Joel.Keller@1stCapitalBank.com | Sam.Jimenez@1stCapitalBank.com | |
