SALINAS, CA / ACCESSWIRE / April 30, 2021 / 1st Capital Bancorp (the 'Company), (OTC Pink:FISB), the $875 million asset bank holding company and parent company of 1st Capital Bank (the 'Bank'), today reported net income of $1.54 million or $0.27 diluted earnings per share for the quarter ended March 31, 2021. This compares to $608 thousand, or $0.11 diluted earnings per share for the quarter ended March 31, 2020, and $1.59 million, or $0.28 for the quarter ended December 31, 2020.
Performance highlights for the quarter ended March 31, 2021, as compared to quarter ending March 31, 2020, and the quarter ending December 31, 2020:
Financial Highlights (Con't)
'Despite the lingering challenges posed by COVID-19, our first quarter financial results are solid and reflect the continuing efforts of our dedicated team of bankers in serving our customers throughout our Central Coast communities,' stated Sam Jimenez Chief Executive Officer. 'Our credit quality and capital levels remain strong, positioning us well for continued growth as California and our local economies recover from the effects of the pandemic.'
1ST CAPITAL BANCORP
CONDENSED FINANCIAL DATA - UNAUDITED
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FIRST QUARTER 2021 EARNINGS SUMMARY
Net Interest Income and Net Interest Margin
The Company's first quarter 2021 net interest income increased $1.0 million or 17.07% as compared with the quarter ending March 31, 2020 and $240 thousand or 3.62%, compared with the quarter ending December 31, 2020. The increase from the same period a year ago was driven almost exclusively from revenue generation from the Paycheck Protection Program (PPP) loans while the increase over the trailing quarter was primarily driven from an increased level of investment securities.
The Company's net interest margin decreased by 32 basis points (bps) or 8.27% when compared to the quarter ending March 31, 2020, and was generally flat relative to the quarter ending December 31, 2020.
The 32 bps decrease compared to the same period a year ago was driven by a significant amount of the Company's earning assets re-pricing lower as a result of 150 bps reduction of the Federal Funds rate in March of 2020. The net interest margin remained flat relative to the trailing quarter due to a combination of exchanging incoming cash flows from prepaying residential mortgage loans and deposit growth for newly generated PPP loan originations and securities purchases.
Provision for Loan Losses
The Company did not make any provisions for loan losses in the quarter ending March 31, 2021, as compared to $825 thousand and $0 in the quarter ending March 31, 2020, and December 31, 2020, respectively. Uncertainty surrounding COVID-19, and the potential negative impact on our clients and asset quality dictated the provisions made in the same period a year ago. Improving economic conditions and diminished concern with the Company's asset quality eliminated the need for any additional provisions for loan losses in the trailing quarter of December 31, 2020.
The Company's first quarter 2021 non-interest expenses increased $423 thousand and $278 thousand or 9.41% and 5.99%, as compared with quarter ending March 31, 2020, and December 31, 2020, respectively.
The increases in both comparative periods is centered in salaries and benefits. In regards to the same period ending March 31, 2020, the addition of 11 employees, including a team of Relationship Managers in our San Luis Obispo market, the opening of our Santa Cruz branch, merit increases for all employees, and to a lesser extent, increases in various other general operating areas also contributed to the increased level of expenses.
The increase as compared to the trailing period of December 31, 2020 is primarily attributed to the transition expense of an executive officer.
Balance Sheet Summary
The Company's total assets increased $228.7 million or 35.42% to $874.4 million as compared to the quarter ending March 31, 2020.
Total loans outstanding totaled $619.4 million as of March 31, 2021. This represents an $88.9 million increase or 16.77% from the quarter ending March 31, 2020 outstanding balance of $530.5 million. The Company's loan growth was driven by $118.4 million in PPP loan originations, $18.8 million in organic loan growth, and partially offset by $48.3 in payoffs from our residential mortgage portfolio.
The investment portfolio increased $117.5 million or 184.34% to $181.2 million from an outstanding balance of $63.7 million as of March 31, 2020. As mentioned above, incoming cashflows from prepaying assets and deposit growth were also significantly deployed in bonds. The majority of the investments were made in mortgage-backed securities, floating rate securities, and to a lesser extent in municipal securities.
Total deposits totaled $787.8 million as of March 31, 2021. This represents a $215.8 million increase or 37.74% from the quarter ending March 31, 2020 outstanding balance of $572.0 million. Growth in noninterest-bearing demand deposit accounts accounted $148.4 million or 68.77% of the total deposit growth over the twelve months ending on March 31, 2021. The majority of this growth was associated with PPP loan proceeds which our customers deposited with the Bank.
The balance of the deposit growth was distributed among interest-bearing deposit accounts with the exception of time deposits which decreased by approximately $5.1 million to $14.3 million
At March 31, 2021, non-performing assets were 0.35% of the Company's total assets, compared with 0.08% at March 31, 2020. At March 31, 2021, the allowance for loan losses was 1.43% of outstanding loans, compared to 1.40% at March 31, 2020, respectively. The Bank recorded net recoveries of $12 thousand in each of the first quarters of 2021 and 2020.
As of March 31, 2021, the Company does not have any outstanding loan deferments or forbearances stemming from COVID-19.
1ST CAPITAL BANCORP
CONDENSED FINANCIAL DATA - UNAUDITED
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CONDENSED FINANCIAL DATA
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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
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.
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