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1st Capital Bank Announces Fourth Quarter and Year to Date 2015 Financial Results; Record Net Interest Income, Deposits, Assets, and Equity


/EINPresswire.com/ -- MONTEREY, CA -- (Marketwired) -- 01/29/16 -- 1st Capital Bank (OTC PINK: FISB) reported net income of $674 thousand for the three months ended December 31, 2015, an increase of 7.4% compared to net income of $627 thousand in the fourth quarter of 2014 and an increase of 66.4% compared to income of $405 thousand in the third quarter of 2015, the immediately preceding quarter. Earnings per share were $0.16 (diluted), compared to $0.16 (diluted) for the same period a year ago.

Year-to-date earnings were $2.38 million, or $0.58 per share (diluted), for the year ended December 31, 2015, an increase of 21.5% compared to $1.96 million, or $0.49 per share (diluted), for the year ended December 31, 2014.

Total assets grew $12 million in the fourth quarter, to $514 million at December 31, 2015, compared to $502 million at September 30, 2015 as a result of growth in deposits of $30 million, or 6.9%, from $438 million at September 30, 2015 to $468 million at December 31, 2015. Core deposits likewise increased $31 million, or 7.5%. Net loans decreased $10 million during the fourth quarter, from $381 million at September 30, 2015 to $371 million at December 31, 2014 as commercial and industrial borrowers reduced the utilization of their lines of credit, causing commercial and industrial loans to decline from $46 million to $43 million. The single-family residential portfolio experienced normal amortization and prepayments, totaling $6 million. Consequently, no provision for loan losses was required, compared to a provision of $365 thousand in the third quarter of 2015 and $50 thousand in the fourth quarter of 2014.

Net interest income before provision for loan losses increased $237 thousand, or 6.3%, to $4.02 million, compared to $3.78 million in the prior quarter. Net interest margin increased from 3.12% in the third quarter of 2015 to 3.21% in the fourth quarter of 2015.

The Bank's efficiency ratio improved from 73.0% in the third quarter of 2015 to 72.0% in the fourth quarter of 2015, as revenue growth outpaced the increase in expenses, which were centered in salaries and benefits.

"The Bank experienced strong deposit growth of $30 million in the fourth quarter, increasing its noninterest-bearing demand deposit accounts by more than $19 million," said Thomas E. Meyer, President and Chief Executive Officer. "While some of this growth can be considered seasonal, it nevertheless reflects the vibrant business community we serve here on California's Central Coast." Meyer added, "The increase in core deposits and the improved mix of earning assets contributed to the improvement in our net interest margin."

"The Bank closed the year with a very high level of liquidity," said Michael J. Winiarski, Chief Financial Officer. "As we enter 2016, we will be focusing on deploying those funds in our core loan portfolio and exploring opportunities to control our cost of funds and enhance our leverage ratio."

"We are pleased to welcome Robin Seelye as Chief Administrative Officer for the Bank," said Kurt Gollnick, Chairman of the Board, "Robin's extensive background in banking operations and technology, strong leadership skills, and focus on the bottom line are already making themselves felt as we expand the Bank's revenue streams while continuing to control costs."

FOURTH QUARTER HIGHLIGHTS

  • Net interest income before provision for credit losses was $4.02 million for the fourth quarter of 2015, compared to $3.78 million for the third quarter of 2015 and $3.61 million for the fourth quarter of 2014. Average earning assets increased from $449 million in the fourth quarter of 2014 to $480 million in the third quarter of 2015 and to $496 million in the fourth quarter of 2015. Net interest margin increased from 3.19% in the fourth quarter of 2014 and 3.12% in the third quarter of 2015 to 3.21% in the fourth quarter of 2015.
  • The provision for credit losses was $0 in the fourth quarter of 2015, compared to $365 thousand in the third quarter of 2015 and $50 thousand in the fourth quarter of 2014.
  • The allowance for loan losses increased from 1.53% at September 30, 2015 and decreased from 1.63% of gross loans outstanding at December 31, 2014 to 1.57% of outstanding loans at December 31, 2015, reflecting the proportion of the portfolio comprising single-family and multi-family residential loans, which require smaller allowance levels in the portfolio.
  • Investments available for sale decreased $4.7 million in the fourth quarter, from $89 million at September 30, 2015 to $84 million at December 31, 2015, freeing up funds for additional lending.
  • Deposits increased $30 million, or 6.9%, to $468 million at December 31, 2015 from $438 million at September 30, 2015 and increased $46 million, or 10.8% from $423 million at December 31, 2014. Deposit growth allowed the Bank to pay off $19 million of secured borrowings outstanding at September 30, 2015.
  • Demand deposit accounts made up 43.7% of deposits at December 31, 2015, compared to 40.1% at September 30, 2015 and 43.0% at December 31, 2014.

NET INTEREST INCOME BEFORE PROVISION FOR CREDIT LOSSES

Net interest income before provision for credit losses was $4.02 million for the fourth quarter of 2015, an increase of $237 thousand, or 6.3%, compared to $3.78 million for the third quarter of 2015, and an increase of $454 thousand, or 12.7%, compared to the fourth quarter of 2014.

Average earning assets were $496 million during the fourth quarter of 2015, an increase of 6.3% compared to $480 million in the third quarter of 2015. The yield on earning assets was 3.34% in the fourth quarter, compared to 3.26% in the third quarter, reflecting a larger average balance of loans receivable, but a smaller investment securities portfolio. The average balance of the Bank's loan portfolio was $377 million in the fourth quarter of 2015, compared to $356 million in the third quarter, and the yield on the loan portfolio was 4.14% in both the fourth and third quarters. The average balance of investments available for sale ("AFS") declined $10 million sequentially, from $97 million in the third quarter of 2015 to $87 million in the fourth quarter of 2015. The yield on AFS investments increased from 0.61% in the third quarter of 2015 to 0.73% in the fourth quarter of 2015. The cost of interest-bearing liabilities decreased from 0.24% in the third quarter of 2015 to 0.23% in the fourth quarter of 2015, while the average balance of interest-bearing liabilities was $274 million in both the third and fourth quarters of 2015. The average balance of noninterest-bearing demand deposit accounts ("DDAs") increased $16 million, or 9.9%, from $167 million in the third quarter of 2015 to $184 million in the fourth quarter of 2015, causing the Bank's cost of funds to decline to 0.14% in the fourth quarter of 2015 from 0.15% in the third quarter of 2015.

Gross loans receivable decreased $10 million, or 2.6%, to $377 million at December 31, 2015 from $387 million at September 30, 2015 and increased $50 million, or 15.4%, from $327 million outstanding at December 31, 2014. During the fourth quarter of 2015, the Bank's commercial real estate portfolio increased 0.2%, from $176.1 million to $176.4 million. Single-family residential loans, all of which were acquired or originated in prior quarters primarily through loan pool purchases, decreased $6 million, or 0.4%, as a result of normal amortization and prepayments of $5 million, as well as a $1 million decrease in outstanding balances on home equity lines of credit. Commercial and industrial loans outstanding declined $3 million, from $46 million at September 30, 2015 to $43 million at December 31, 2015, as credit line utilization declined from 34% to 32%, largely as a result of the very strong operating results of local agricultural and agriculture-related companies.

Non-performing loans decreased from $1.9 million at September 30, 2015 and increased from $773 thousand at December 31, 2014 to $1.7 million at December 31, 2015. Loans over 90 days past due (all of which were on non-performing status) were $0, $21 thousand, and $0 at December 31, 2014, September 30, 2015, and December 31, 2015, respectively. The Bank recorded net charge-offs of $4 thousand in the fourth quarter of 2015, net of $17 thousand in recoveries.

PROVISION FOR CREDIT LOSSES

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 Bank and adjusted for qualitative factors associated with the loan portfolio. The Bank did not record a provision for losses in the fourth quarter of 2015, while the provision was $365 thousand in the third quarter of 2015 and $50 thousand in the fourth quarter of 2014. The decrease in the provision reflects the total amount of loan principal outstanding, which decreased from $387 million at September 30, 2015 to $377 million at December 31, 2015. It also reflects the payment history of the portfolio (which included no loans 90 days or more past due at December 31, 2015), changes in the mix of loan types within the portfolio and their respective loss histories, as well as management's assessment of the amounts expected to be realized from certain loans identified as impaired. Impaired loans totaled $9.1 million at December 31, 2015, compared to $9.4 million at September 30, 2015, and $8.6 million at December 31, 2014.

At December 31, 2015, non-performing loans were 0.46% of the total loan portfolio, compared to 0.49% at September 30, 2015 and 0.24% at December 31, 2014. At December 31, 2015, the allowance for loan losses was 1.57% of outstanding loans, compared to 1.53% and 1.63% at September 30, 2015 and December 31, 2014, respectively, reflecting primarily the proportion of single-family mortgages in the loan portfolio.

NON-INTEREST INCOME

Non-interest income recognized in the fourth quarter of 2015 was $74 thousand, a decrease of $33 thousand, or 30.4%, from $107 thousand in the third quarter of 2015, and a decrease of $11 thousand from the fourth quarter of 2014. Gain on sales of Small Business Administration guaranteed loans declined $27 thousand, from $38 thousand in the third quarter of 2015 to $11 thousand in the fourth quarter of 2015.

NON-INTEREST EXPENSES

Non-interest expenses increased $109 thousand, or 3.8%, to $2.95 million for the fourth quarter of 2015, compared to $2.84 million for the third quarter of 2015, and increased $362 thousand, or 14.0%, compared to the fourth quarter of 2014. Salaries and benefits increased $115 thousand, or 6.8%, from $1.70 million in the third quarter of 2015 to $1.82 million in the fourth quarter of 2015. Compared to the prior quarter, base salaries increased $5 thousand, while stock-based compensation expense was $58 thousand higher than the previous quarter because there was employee turnover in the third quarter that caused forfeitures and, therefore, a lower level of compensation expense. In addition, there were additional participants in the equity compensation plan in the fourth quarter. Salaries and benefits, occupancy costs, and furniture and equipment expenses increased $281 thousand, $13 thousand, and $30 thousand, respectively, compared to the fourth quarter of 2014, reflecting the opening of the Bank's San Luis Obispo branch in 2015.

The efficiency ratio (non-interest expenses divided by the sum of net interest income before provision for loan losses and non-interest income) was 72.0% for the fourth quarter of 2015, compared to 73.0% for the third quarter of 2015 and 69.9% for the fourth quarter of 2014. Non-interest expenses as a percent of average total assets were 2.33%, 2.32%, and 2.26% for the fourth quarter of 2015, the third quarter of 2015, and the fourth quarter of 2014, respectively.

PROVISION FOR INCOME TAXES

The Bank's effective book tax rate was 41.1% in the fourth quarter of 2015, compared to 40.9% for the third quarter of 2015 and 41.1% for the fourth quarter of 2015. For the years ended December 31, 2015 and 2014, the Bank's effective book tax rate was 37.8% and 41.1%, respectively. In 2015, the Bank realized and recognized $249 in tax-free bank-owned life insurance benefits, compared to no such benefits for 2014. The income tax provision for 2015 also reflects the Bank's settlement with the California Franchise Tax Board for certain Enterprise Zone interest deductions taken in 2009 and 2010.

About 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 ("SBA") and the U.S. Department of Agriculture ("USDA"). A full suite of deposit accounts is also furnished, complemented by robust cash management services. The Bank operates full service branch offices in Monterey, Salinas, King City, and San Luis Obispo. The Bank's corporate offices are located at 5 Harris Court, Building N, Monterey, California 93940. The Bank's website is www.1stCapitalBank.com. 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 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 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.1stCapitalBank.com internet site for no charge.



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

Financial Condition   December 31,  September 30,    June 30,  December 31,
 Data(1)                      2015           2015        2015          2014
                      ------------  -------------  ----------  ------------
Assets
  Cash and due from
   banks              $      3,334  $       3,380  $    3,261  $      2,654
  Funds held at the
   Federal Reserve
   Bank(2)                  42,857         16,004      23,759        31,598
  Time deposits at
   other financial
   institutions              2,241          2,241       2,739         2,988
  Available-for-sale
   securities, at fair
   value                    84,203         88,891      98,672        96,807
  Loans receivable
   held for
   investment:
    Construction /
     land (including
     farmland)              17,499         17,814      20,274        16,600
    Residential 1 to 4
     units                 124,741        129,564     107,792        97,142
    Home equity lines
     of credit               8,594          9,636       7,515         8,327
    Multifamily             36,862         35,202      31,290        16,118
    Owner occupied
     commercial real
     estate                 56,046         55,111      53,848        60,064
    Investor
     commercial real
     estate                 83,532         85,766      75,210        73,095
    Commercial and
     industrial             42,528         45,584      45,038        46,922
    Other loans              6,909          8,022       6,264         8,233
                      ------------  -------------  ----------  ------------
      Total loans          376,711        386,699     347,231       326,501
    Allowance for loan
     losses                 (5,921)        (5,926)     (5,549)       (5,325)
                      ------------  -------------  ----------  ------------
  Net loans                370,790        380,773     341,682       321,176
  Premises and
   equipment, net            1,612          1,679       1,689         1,423
  Bank owned life
   insurance                 2,350          2,335       2,321         2,549
  Investment in
   FHLB(3) stock, at
   cost                      2,593          2,593       2,593         2,007
  Accrued interest
   receivable and
   other assets              3,370          4,422       3,950         3,661
                      ------------  -------------  ----------  ------------
Total assets          $    513,950  $     502,318  $  480,666  $    464,863
                      ============  =============  ==========  ============

Liabilities and
 shareholders' equity
  Deposits:
    Noninterest
     bearing demand
     deposits         $    204,624  $     175,958  $  159,920  $    181,939
    Interest bearing
     checking accounts      29,838         30,999      28,329        22,447
    Money market
     deposits              110,490        104,876     120,449       103,804
    Savings deposits        94,315         96,634      98,262        83,689
    Time deposits           29,121         29,788      29,434        30,874
                      ------------  -------------  ----------  ------------
      Total deposits       468,388        438,255     436,394       422,753
    Borrowings                  --         19,000          --            --
    Accrued interest
     payable and other
     liabilities             1,073          1,336       1,056           929
    Shareholders'
     equity                 44,489         43,727      43,216        41,181
                      ------------  -------------  ----------  ------------
  Total liabilities
   and shareholders'
   equity             $    513,950  $     502,318  $  480,666  $    464,863
                      ============  =============  ==========  ============

  Shares
   outstanding(4)        4,064,485      4,035,417   3,842,905     3,779,039
  Nominal and tangible
   book value per
   share              $      10.95  $       10.84  $    11.25  $      10.90
  Ratio of net loans
   held for investment
   to total deposits         76.16%         86.88%      78.30%        75.97%

1 = Loans 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 = Shares outstanding and book value per share reflect the 5% stock dividend declared July 29, 2015 and payable September 30, 2015.




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

                                         Three Months Ended
                        ----------------------------------------------------
Operating Results        December 31,  September 30,  June 30,  December 31,
 Data(1)                         2015           2015      2015          2014
                        ------------- -------------- --------- -------------
Interest and dividend
 income
  Loans                 $       3,938 $        3,718 $   3,571 $       3,566
    Investment
     securities                   160            149       155           148
    Federal Home Loan
     Bank stock                    58             61       127            37
    Other                          23             19        18            17
                        ------------- -------------- --------- -------------
      Total interest and
       dividend income          4,179          3,947     3,871         3,768
                        ------------- -------------- --------- -------------
Interest expense
  Interest bearing
   checking                         3              3         2             6
  Money market deposits            71             77        88            73
  Savings deposits                 72             73        68            61
  Time deposits                    14             13        12            14
                        ------------- -------------- --------- -------------
    Total interest
     expense on deposits          160            166       170           154
  Interest expense on
   borrowings                       2              1         1             1
                        ------------- -------------- --------- -------------
      Total interest
       expense                    162            167       171           155
                        ------------- -------------- --------- -------------
Net interest income             4,017          3,780     3,700         3,613
Provision for loan
 losses                            --            365        --            50
                        ------------- -------------- --------- -------------
Net interest income
 after provision for
 loan losses                    4,017          3,415     3,700         3,563
                        ------------- -------------- --------- -------------

Noninterest income
  Service charges on
   deposits                        34             29        29            30
  BOLI dividend income             15             15        14            17
  Gain on sale of loans            11             38        51            19
  Gain on sale of
   securities                      --             --        --            --
  Other                            14             25        18            19
                        ------------- -------------- --------- -------------
    Total noninterest
     income                        74            107       112            85
                        ------------- -------------- --------- -------------



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

                                        Three Months Ended
                       ----------------------------------------------------
                        December 31, September 30,    June 30, December 31,
                                2015          2015        2015         2014
                       ------------- -------------  ---------- ------------
Noninterest expenses
  Salaries and benefits        1,817         1,702       1,744        1,536
  Occupancy                      219           224         198          206
  Data and item
   processing                    149           161         144          138
  Professional services          132           137         151          130
  Furniture and
   equipment                     127           127         107           97
  Provision for
   unfunded loan
   commitments                    19            (6)         10           (8)
  Other                          483           492         470          485
                       ------------- -------------  ---------- ------------
    Total noninterest
     expenses                  2,946         2,837       2,824        2,584
                       ------------- -------------  ---------- ------------
Income before provision
 for income taxes              1,145           685         988        1,064
Provision for income
 taxes                           471           280         387          437
                       ------------- -------------  ---------- ------------
Net income             $         674 $         405  $      601 $        627
                       ============= =============  ========== ============

Common Share Data(2)
  Earnings per share
    Basic              $        0.17 $        0.10  $     0.15 $       0.16
    Diluted            $        0.16 $        0.10  $     0.15 $       0.16

  Weighted average
   shares outstanding
    Basic                  4,052,646     4,035,543   4,028,844    3,950,347
    Diluted                4,131,661     4,108,966   4,085,410    4,015,706

1 = Certain reclassifications have been made to prior period financial statements to conform them to the current period presentation.
2 = Earnings per share and weighted average shares outstanding have been restated to reflect the effect of the 5% stock dividend declared July 29, 2015 and payable September 30, 2015.




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

                                                       12 Months Ended
                                                 ---------------------------
                                                  December 31,  December 31,
Operating Results Data(1)                                 2015          2014
                                                 ------------- -------------
Interest and dividend income
  Loans                                          $      14,732 $      12,921
  Investment securities                                    617           681
  Federal Home Loan Bank stock                             279          1370
  Other                                                     82            81
                                                 ------------- -------------
    Total interest and dividend income                  15,710        13,819
                                                 ------------- -------------
Interest expense
  Interest bearing checking                                 11            27
  Money market deposits                                    319           291
  Savings deposits                                         280           243
  Time deposits                                             51            58
                                                 ------------- -------------
    Total interest expense in deposits                     661           618
  Interest expense on borrowings                             4             2
                                                 ------------- -------------
      Total interest expense                               665           622
                                                 ------------- -------------
Net interest income                                     15,045        13,198
Provision for loan losses                                  565           575
                                                 ------------- -------------
Net interest income after provision for loan
 losses                                                 14,480        12,623
                                                 ------------- -------------

Noninterest income
  Service charges on deposits                              123           122
  BOLI dividend income                                      60            78
  BOLI benefits                                            249            --
  Gain on sale of loans                                    100            19
  Gain on sale of securities                                --           162
  Other                                                     78            84
                                                 ------------- -------------
    Total noninterest income                               610           465
                                                 ------------- -------------



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

                                                      12 Months Ended
                                               ----------------------------
                                                December 31,   December 31,
                                                        2015           2014
                                               ------------- --------------
Noninterest expenses
  Salaries and benefits                                6,890          5,858
  Occupancy                                              841            764
  Data and item processing                               596            564
  Professional services                                  532            529
  Furniture and equipment                                459            333
  Provision for unfunded loan commitments                 31             (3)
  Other                                                1,916          1,714
                                               ------------- --------------
    Total noninterest expenses                        11,265          9,759
                                               ------------- --------------
Income before provision for income taxes               3,825          3,330
Provision for income taxes                             1,444          1,369
                                               ------------- --------------
Net income                                     $       2,381          1,960
                                               ============= ==============

Common Share Data(2)
  Earnings per share
    Basic                                      $        0.59 $         0.50
    Diluted                                    $        0.58 $         0.49

  Weighted average shares outstanding
    Basic                                          4,025,635      3,902,358
    Diluted                                        4,091,555      3,964,335

1 = Certain reclassifications have been made to prior period financial statements to conform them to the current period presentation.
2 = Earnings per share and weighted average shares outstanding have been restated to reflect the effect of the 5% stock dividend declared July 29, 2015 and payable September 30, 2015.




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

                      December 31,  September 30,    June 30,  December 31,
Asset Quality                 2015           2015        2015          2014
                      ------------  -------------  ----------  ------------
  Loans past due 90
   days or more and
   accruing interest  $         --  $          --  $       --  $         --
  Nonaccrual
   restructured loans        1,526          1,543          --           222
  Other nonaccrual
   loans                       205            358          92           551
  Other real estate
   owned                        --             --          --            --
                      ------------  -------------  ----------  ------------
                      $      1,731  $       1,901  $       92  $        773
                      ============  =============  ==========  ============

  Allowance for loan
   losses to total
   loans                      1.57%          1.53%       1.60%         1.63%
  Allowance for loan
   losses to
   nonperforming loans      342.06%        311.73%   6,031.52%       688.87%
  Nonaccrual loans to
   total loans                0.46%          0.49%       0.03%         0.24%
  Nonperforming assets
   to total assets            0.34%          0.38%       0.02%         0.17%

Regulatory Capital and
 Ratios
  Common equity tier 1
   capital            $     44,258  $      43,437  $   42,941            NA
  Tier 1 regulatory
   capital            $     44,258  $      43,437  $   42,941  $     40,924
  Total regulatory
   capital            $     48,461  $      47,745  $   46,919  $     44,692
  Tier 1 leverage
   ratio                      8.82%          8.94%       8.97%         9.01%
  Common equity tier 1
   risk based capital
   ratio                     13.24%         12.67%      13.57%           NA
  Tier 1 risk based
   capital ratio             13.24%         12.67%      13.57%        13.66%
  Total risk based
   capital ratio             14.49%         13.92%      14.82%        14.91%

                                        Three Months Ended
                      -----------------------------------------------------
Selected Financial    December 31,  September 30,    June 30,  December 31,
 Ratios(1)                    2015           2015        2015          2014
                      ------------  -------------  ----------  ------------
  Return on average
   total assets               0.53%          0.33%       0.50%         0.55%
  Return on average
   shareholders'
   equity                     6.04%          3.68%       5.60%         6.09%
  Net interest margin         3.21%          3.12%       3.13%         3.19%
  Net interest income
   to average total
   assets                     3.17%          3.08%       3.10%         3.15%
  Efficiency ratio           72.03%         72.99%      74.08%        69.88%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.




                                         Three Months Ended
                       -----------------------------------------------------
Selected Average        December 31,  September 30,   June 30,  December 31,
 Balances                       2015           2015       2015          2014
                       ------------- -------------- ---------- -------------
  Gross loans          $     376,956 $      355,960 $  345,008 $     326,795
  Investment securities       86,974         97,070    101,475        99,588
  Federal Home Loan
   Bank stock                  2,593          2,593      2,445         2,007
  Other interest
   earning assets             29,366         24,842     25,233        20,605
                       ------------- -------------- ---------- -------------
    Total interest
     earning assets    $     495,889 $      480,465 $  474,161 $     448,995
  Total assets         $     502,349 $      486,149 $  479,363 $     454,480

  Interest bearing
   checking accounts   $      31,352 $       30,203 $   26,132 $      22,480
  Money market deposits      114,281        113,377    125,098       110,179
  Savings deposits            96,740         97,353     91,735        82,982
  Time deposits               29,460         29,664     29,775        30,701
                       ------------- -------------- ---------- -------------
    Total interest
     bearing deposits        271,833        270,597    272,740       246,342
  Noninterest bearing
   demand deposits           183,569        166,990    160,349       161,797
                       ------------- -------------- ---------- -------------
    Total deposits     $     455,402 $      437,587 $  433,089 $     408,139
  Borrowings           $       2,283 $        3,742 $    2,154 $       4,435
  Shareholders' equity $      44,308 $       43,697 $   43,013 $      40,857



                              1ST CAPITAL BANK
                          CONDENSED FINANCIAL DATA
                                (Unaudited)
                           (Dollars in thousands)
                                                      12 Months Ended
                                               ----------------------------
                                                December 31,   December 31,
Selected Financial Ratios(1)                            2015           2014
                                               -------------  -------------
Return on average total assets                          0.49%          0.45%
Return on average shareholders' equity                  5.51%          4.96%
Net interest margin                                     3.14%          3.09%
Net interest income to average total assets             3.10%          3.04%
Efficiency ratio                                       71.96%         71.42%

1 = All Selected Financial Ratios are annualized other than the Efficiency Ratio.




                                                      12 Months Ended
                                               -----------------------------
                                                 December 31,   December 31,
Selected Average Balances(1)                             2015           2014
                                               -------------- --------------
  Gross loans                                  $      352,971 $      295,467
  Investment securities                                96,676        103,302
  Federal Home Loan Bank stock                          2,411          1,847
  Other interest earning assets                        27,700         26,164
                                               -------------- --------------
    Total interest earning assets              $      479,758 $      426,780
  Total assets                                 $      485,551 $      433,590

  Interest bearing checking accounts           $       27,709 $       22,344
  Money market deposits                               118,298        106,203
  Savings deposits                                     94,087         81,801
  Time deposits                                        29,868         30,020
                                               -------------- --------------
    Total interest bearing deposits                   269,963        240,368
  Noninterest bearing demand deposits                 169,419        151,192
                                               -------------- --------------
    Total deposits                             $      439,381 $      391,560
  Borrowings                                   $        2,056 $        1,599
  Shareholders' equity                         $       43,244 $       39,506

1 = Certain reclassifications have been made to prior period financial statements to conform them to the current period presentation.

For further information, please contact:

Thomas E. Meyer
President and Chief Executive Officer
831.264.4057 office
Tom.Meyer@1stCapitalBank.com

or

Michael J. Winiarski
Chief Financial Officer
831.264.4014 office
Michael.Winiarski@1stCapitalBank.com


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