There were 1,656 press releases posted in the last 24 hours and 413,676 in the last 365 days.

1st Capital Bancorp Announces Third Quarter 2022 Financial Results

SALINAS, Calif., Oct. 28, 2022 (GLOBE NEWSWIRE) -- 1st Capital Bancorp (the “Company”), (OTCQX: FISB), the $994.6 million asset bank holding company and parent company of 1st Capital Bank (the “Bank”), today reported unaudited net income of $2.66 million for the quarter ended September 30, 2022, a 18.0% increase compared to net income of $2.26 million for the quarter ended September 30, 2021, and a 5.6% increase compared to net income of $2.52 million for the quarter ended June 30, 2022.

Financial Highlights
Performance highlights for the quarter ended September 30, 2022, as compared to the quarter ended September 30, 2021, and the quarter ended June 30, 2022:

  • Earnings per share (diluted) were $0.48 for the third quarter of 2022, as compared to $0.40 and $0.45 for the quarters ended September 30, 2021 and June 30, 2022, respectively.

  • For the quarter ended September 30, 2022, the Company's return on average equity was 16.44%, as compared to 11.35% and 14.82% for the quarters ended September 30, 2021 and June 30, 2022, respectively.

  • For the quarter ended September 30, 2022, the Company’s return on average assets was 1.04%, as compared to 0.92% and 0.98% for the quarters ended September 30, 2021 and June 30, 2022, respectively.

  • For the quarter ended September 30, 2022, the Company’s net interest margin was 3.46%, as compared to 3.26% and 3.58% for the quarters ended September 30, 2021 and June 30, 2022 and, respectively.

  • Pretax, pre-provision income for the quarter ended September 30, 2022 totaled $3.7 million, as compared to $3.2 million and $3.5 million for the quarters ended September 30, 2021 and June 30, 2022, respectively.

  • For the quarter ended September 30, 2022, the Company’s efficiency ratio was 59.54%, as compared to 60.58% and 61.89% for the quarters ended September 30, 2021 and June 30, 2022, respectively.

  • The Company recorded no provision expense for the quarters ended September 30, 2022, September 30, 2021 and June 30, 2022.

  • As of September 30, 2022, the Company’s nonperforming assets to total assets was 0.04%, as compared to 0.11% and 0.01% for the quarters ended September 30, 2021 and June 30, 2022, respectively.

  • As of September 30, 2022, the Company reported total assets, total deposits, and total loans of $994.6 million, $922.2 million, and $579.2 million, respectively.

  • Federal regulatory capital ratios for the quarters ended September 30, 2022, June 30, 2022 and September 30, 2021 exceed well capitalized thresholds.

“We are pleased with the continuing positive trends in our Company's operating performance,” commented Sam Jimenez, chief executive officer. “While the economic outlook remains uncertain, the Company is well positioned with strong asset quality and liquidity positions, reflecting a relatively low risk profile.”

Net Interest Income and Net Interest Margin

The Company's third quarter 2022 net interest income decreased $253 thousand, or 2.86%, to $8.59 million as compared with $8.84 million for the quarter ended June 30, 2022. Loan interest income, excluding PPP income, increased $45 thousand, or 0.65%, to $6.96 million for the quarter ended September 30, 2022 compared to $6.91 million for the quarter ended June 30, 2022. Interest and fee income related to PPP loans decreased $292 thousand to $52 thousand for the quarter ended September 30, 2022, compared to $344 thousand for the quarter ended June 30, 2022.   PPP loans have been fully forgiven in the third quarter 2022.

The Company's net interest margin increased by 20 basis points (bps), or 6.03%, to 3.46% when compared to 3.26% for the quarter ended September 30, 2021. The increase was primarily driven by the Company’s mix of average interest earning assets as cash was deployed into higher yielding loans and leases and investment securities. Interest expense increased $173 thousand, or 34.93%, to $669 thousand for the quarter ended September 30, 2022 compared to $496 thousand for the quarter ended September 30, 2021 due to an increase in average balances of interest-bearing deposits and interest expense associated with the cap corridor. Interest expense includes $169 thousand of interest expense associated with subordinated debt recognized in each period.

Provision for Loan Losses

Stable credit quality resulted in no loan loss provision in the quarters ended September 30, 2022, September 30, 2021 and June 30, 2022.

Noninterest Expenses

The Company's total non-interest expense increased $525 thousand, or 10.81%, to $5.38 million in the quarter ended September 30, 2022, compared to $4.85 million for the quarter ended September 30, 2021. The increase reflects the salary and benefit costs of senior leadership positions filled in the fourth quarter of 2021.

Balance Sheet Summary

The Company's total assets decreased $12.90 million, or 1.3%, to $994.6 million as compared to $1.01 billion at September 30, 2021.

Total loans outstanding were $586.8 million as of September 30, 2022, representing a $21.8 million, or 3.9%, increase from the September 30, 2021 outstanding balance of $565.0 million. Excluding the $42.4 million decline in PPP loan balances, loans increased $64.2 million, or 12.3%, at September 30, 2022 compared to September 30, 2021. The increase includes purchased lease pools with outstanding balances of $45.0 million and a $10 million increase in consumer loan pool balances, along with growth in commercial real estate loan originations, partially offset by declines in construction and residential loans outstanding.

PPP loans outstanding were $0 as of September 30, 2022, compared to $42.4 million at September 30, 2021.

Loan type (dollars in thousands) 9/30/2022 % of Total Loans   6/30/2022 % of Total Loans   9/30/2021 % of Total Loans
                 
Construction / land (including farmland) $ 12,403   2.1 %   $ 18,502   3.2 %   $ 25,476   4.5 %
Residential 1 to 4 units               56,592   9.6 %                 57,381   9.8 %                 68,438   12.1 %
Home equity lines of credit                 4,909   0.8 %     5,392   0.9 %                   7,601   1.3 %
Multifamily               82,936   14.1 %                 76,168   13.0 %                 81,268   14.4 %
Owner occupied commercial real estate             111,097   18.9 %     111,283   19.0 %                 80,166   14.2 %
Investor commercial real estate             188,930   32.2 %               186,448   31.8 %               185,001   32.7 %
Commercial and industrial               39,804   6.8 %                 43,652   7.4 %     40,719   7.2 %
Paycheck Protection Program   -   0.0 %                  1,986   0.3 %                 42,414   7.5 %
Leases               45,049   7.7 %     34,095   5.8 %     -   0.0 %
Consumer               30,902   5.3 %     36,372   6.2 %     20,581   3.6 %
Other loans               14,176   2.4 %     14,784   2.6 %                 13,366   2.4 %
Total loans             586,798   100.0 %               586,063   100.0 %               565,030   100.0 %
Allowance for loan losses             (7,560 )       (8,066 )                (8,830 )  
Net loans held for investment $ 579,238       $ 577,997       $ 556,200    

The investment portfolio increased $34.8 million, or 11.7%, to $332.3 million from $297.5 million at September 30, 2021. The unrealized loss associated with the Company’s available-for-sale investment security portfolio increased from $38.2 million at June 30, 2022 to $40.1 million at September 30, 2022 as market yields continued to negatively impact portfolio valuation.

Total deposits were $922.2 million as of September 30, 2022. This represents a $10.5 million, or 1.1% increase from the September 30, 2021 balance of $911.7 million.   Growth in money market balances of $56.5 million drove deposit growth, offset by noninterest bearing balances declining $14.1 million. Noninterest bearing balances comprised 46.0% and 48.1% of total deposit balances at September 30, 2022 and September 30, 2021, respectively.

Deposit type (dollars in thousands) 9/30/2022 % of Total Deposits   6/30/22 % of Total Deposits   9/30/2021 % of Total Deposits
Interest bearing checking accounts $ 69,258 7.5 %   $ 62,780 6.8 %   $ 72,867 8.0 %
Money market             308,772 33.5 %               290,106 31.3 %               252,257 27.7 %
Savings             109,653 11.9 %               143,215 15.4 %               135,736 14.9 %
Time               10,256 1.1 %                 13,509 1.5 %                 12,422 1.4 %
Total interest-bearing deposits             497,889 54.0 %               509,609 54.9 %               473,281 51.9 %
Noninterest-bearing             424,312 46.0 %               418,692 45.1 %               438,445 48.1 %
Total deposits $ 922,201 100.0 %   $ 928,301 100.0 %   $ 911,726 100.0 %

Shareholder’s equity totaled $48.3 million at September 30, 2022, a decline of $30.2 million, or 38.5%, compared to $78.5 million at September 30, 2021. This is reflective of the increase in unrealized losses on the investment security portfolio, the impact of which flows through accumulated other comprehensive income, a component of equity. At September 30, 2022 $72.8 million in bonds are classified as held-to-maturity, approximately 22% of the total investment portfolio. The unrealized losses on these held-to-maturity bonds are captured in AOCI at the transfer date and amortize over the life of the bonds, with interest rate environment changes having no further impact on the unrealized loss position of these bonds.

In the second quarter of 2022, the Company entered into a cap corridor transaction with a $100 million notional amount designed to hedge a portion of deposit interest expense and to partially mitigate the future investment portfolio valuation impact of increasing interest rates. The corridor qualifies for hedge accounting and is carried at fair value on the balance sheet with changes in fair value flowing through AOCI. The fair value of the hedge increased $1.0 million in the third quarter, positively impacting AOCI, and is carried on the balance sheet at a fair value of $3.1 million at September 30, 2022.

Stock Repurchase Activity

The Company announced a Stock Repurchase Program on December 3, 2021 and subsequently has repurchased a total of 181,589 shares to date at a weighted average price of $15.19. Repurchase activity has been suspended through the remainder of 2022.

Asset Quality

At September 30, 2022, non-performing assets were 0.04% of the Company’s total assets, compared with 0.11% at September 30, 2021. The allowance for loan losses was 1.29% of outstanding loans at September 30, 2022, compared to 1.56% at September 30, 2021. The Company had $0 and $921 thousand in nonaccrual loans at September 30, 2022 and September 30, 2021, respectively. The Company recorded net charge-offs of $506 thousand in the quarter ended September 30, 2022 compared to $10 thousand in the quarter ended September 30, 2021. Charge-offs were within the purchased consumer loan pools.   

Asset Quality (dollars in thousands) 9/30/2022  6/30/2022  9/30/2021 
Loans past due 90 days or more and accruing interest $ 409   $ 145   $ 146  
Other nonaccrual loans   -     -     921  
Other real estate owned   -     -     -  
Total nonperforming assets $ 409   $ 145   $ 1,067  
       
Allowance for loan losses to total loans   1.29 %   1.38 %   1.56 %
Allowance for loan losses to nonperforming loans   1848.34 %   5562.76 %   827.55 %
Nonaccrual loans to total loans   0.00 %   0.00 %   0.16 %
Nonperforming assets to total assets   0.04 %   0.01 %   0.11 %

As of September 30, 2022, the Company had no outstanding loan deferments or forbearances stemming from COVID-19.


1ST CAPITAL BANCORP
CONDENSED FINANCIAL DATA - UNAUDITED
($ in 000s except per share data)

Assets   9/30/2022 6/30/2022 9/30/2021
Cash and due from banks   $             41,842   $             35,450   $             129,673  
Investment securities available-for-sale     259,472     298,483     297,456  
Investment securities held-to-maturity     72,818     45,223     --  
Loans and leases held for investment     586,798     586,063     565,031  
   Allowance for loan and lease losses     (7,560 )   (8,066 )   (8,830 )
Net loans and leases held for investment     579,238     577,997     556,201  
Other Assets     41,241     32,926     24,186  
Total assets   $        994,611   $           990,079   $           1,007,516  
         
Liabilities and Shareholders' Equity        
Deposits:        
Noninterest bearing demand deposits   $           424,312   $           418,692   $           438,445  
Interest-bearing accounts     497,889     509,609     473,281  
Total deposits     922,201     928,301     911,726  
Subordinated debentures     14,719     14,701     14,644  
Other borrowings     --     --     --  
Other liabilities     9,415     8,386     2,665  
Shareholders' equity     48,276     38,691     78,481  
Total liabilities and shareholders' equity   $        994,611   $           990,079   $           1,007,516  
         
Shares outstanding        5,476,092     5,467,966     5,587,878  
Earnings per share basic   $ 0.49   $ 0.46   $ 0.40  
Earnings per share diluted   $ 0.48   $ 0.45   $ 0.40  
Nominal and tangible book value per share   $ 8.82   $ 7.08   $ 14.04  


  Three Months Ended
Operating Results Data 9/30/2022 6/30/2022 9/30/2021
Interest and dividend income      
Loans $               7,011 $                7,258 $                   7,121
Investment securities      2,055   2,038   1,000
Federal Home Loan Bank stock   62   59   60
Other income   126   56      29
Total interest and dividend income   9,254   9,411   8,210
Interest expense      669   573      495
Net interest income   8,585   8,838   7,715
Provision for loan losses   -   -   -
Net interest income after provision for loan losses   8,585   8,838   7,715
Noninterest income   446   290   294
Noninterest expenses      
Salaries and benefits expense   3,243   3,457   2,737
Occupancy expense   451   463   422
Data and item processing   279   265   288
Furniture and equipment   127   150   119
Professional services   168   114   148
Other   1,109   1,201   1,138
Total noninterest expenses   5,377   5,650   4,852
Income before provision for income taxes   3,654   3,478   3,157
Provision for income taxes   992   958   901
Net income $               2,662 $                2,520 $                  2,256


              Three Months Ended  
Selected Average Balances 9/30/2022 6/30/2022 9/30/2021
Gross loans $          594,624   $           593,990   $             588,133  
Investment securities   352,564     373,853     279,122  
Federal Home Loan Bank stock   4,058     4,024     3,948  
Other interest earning assets   34,162     31,158     80,909  
Total interest earning assets   985,408     1,003,025     952,112  
Total assets   1,018,730     1,027,269     977,147  
Interest-bearing checking accounts   65,171     64,988     64,009  
Money market   303,802     278,646     232,979  
Savings   126,511     149,930     134,724  
Time deposits   12,376     12,350     13,534  
Total interest-bearing deposits   507,860     505,914     445,246  
Noninterest bearing demand deposits   423,166     427,351     433,518  
Total deposits   931,026     933,265     878,764  
Subordinated debentures and other borrowings   15,055     17,546     14,646  
Shareholders' equity $             64,227   $             68,227   $             78,624  
       
                                                                    
                                                                                                             Three Months Ended
Selected Financial Ratios  9/30/2022 6/30/2022 9/30/2021
Return on average total assets   1.04 %   0.98 %   0.92 %
Return on average shareholders' equity   16.44 %   14.82 %   11.35 %
Net interest margin   3.46 %   3.58 %   3.26 %
Net interest income to average total assets   3.34 %   3.56 %   3.13 %
Efficiency ratio   59.54 %   61.89 %   60.58 %


  Nine Months Ended
Operating Results Data 9/30/2022 9/30/2021
Interest and dividend income    
Loans $ 21,165 $ 20,698
Investment securities      5,650      2,205
Federal Home Loan Bank stock   179   169
Other income   195   47
Total interest and dividend income   27,188   23,119
Interest expense      1,772   1,033
Net interest income   25,417   22,086
Provision for loan losses   -   -
Net interest income after provision for loan losses   25,417   22,086
Noninterest income   1,054      675
Noninterest expenses    
Salaries and benefits expense   10,144   9,103
Occupancy expense   1,348   1,230
Data and item processing   807   803
Furniture and equipment   417   349
Professional services   451   488
Other   3,324   2,782
Total noninterest expenses   16,492   14,755
Income before provision for income taxes   9,979   8,006
Provision for income taxes   2,705   2,263
Net income $ 7,274 $                5,743


  Nine Months Ended
Selected Average Balances 9/30/2022 9/30/2021
Gross loans $ 586,294 $ 607,673
Investment securities   362,879   202,569
Federal Home Loan Bank stock   4,011   3,773
Other interest earning assets   36,790   52,335
Total interest earning assets   989,974   866,350
Total assets   1,014,291   891,336
     
Interest bearing checking accounts   65,302   60,931
Money market   268,143   197,320
Savings   145,024   128,742
Time deposits   12,102   14,163
Total interest-bearing deposits   490,571   401,156
Noninterest bearing demand deposits   429,581   401,407
Total deposits   920,152   802,563
Subordinated debentures and other borrowings   15,758   7,131
Shareholders' equity $ 70,808 $ 76,552


                                     

                                                                           
Nine Months Ended
Selected Financial Ratios  9/30/2022 9/30/2021
Return on average total assets 0.96 % 0.86 %
Return on average shareholders' equity 13.74 % 10.03 %
Net interest margin 3.43 % 3.44 %
Net interest income to average total assets 3.35 % 3.31 %
Efficiency ratio 62.30 % 64.82 %
     


Regulatory Capital and Ratios 9/30/2022 6/30/2022 9/30/2021
Common equity tier 1 capital $ 100,148   $ 97,226   $ 78,702  
Tier 1 regulatory capital $ 100,148   $ 97,226   $ 78,702  
Total regulatory capital $ 107,855   $ 105,418   $ 86,122  
Tier 1 leverage ratio   10.22 %   9.62 %   8.07 %
Common equity tier 1 risk-based capital ratio   14.44 %   13.27 %   13.30 %
Tier 1 capital ratio   14.44 %   13.27 %   13.30 %
Total risk-based capital ratio   15.55 %   14.39 %   14.55 %

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.

For further information, please contact:

Samuel D. Jimenez   Danelle Thomsen
Chief Executive Officer   Chief Financial Officer
831.264.4057 office   831-264-4014 office
Sam.Jimenez@1stCapitalBank.com   Danelle.Thomsen@1stCapitalBank.com