1st Century Bancshares, Inc. Reports Financial Results for the Quarter Ended March 31, 2012 - Page 2

Marketwire

Tuesday, May 8th 2012

The Bank's total risk-based capital ratio was 17.34% at March 31, 2012, compared to the regulatory requirement of 10.00% for "well capitalized" financial institutions. The Bank's equity is comprised solely of common stock, and does not include any capital received in connection with TARP, nor other forms of capital such as trust preferred securities, convertible preferred stock or other equity or debt instruments.
Total assets increased 6.9%, or $28.1 million, to $433.4 million at March 31, 2012, from $405.3 million at December 31, 2011.
Total core deposits, which include non-interest bearing demand deposits, interest bearing demand deposits, and money market deposits and savings, were $313.5 million and $285.6 million at March 31, 2012 and December 31, 2011, respectively, representing an increase of $27.8 million, or 9.7%.
Net interest margin was 3.20% for the quarter ended March 31, 2012, compared to 3.59% for the same period last year.
Cost of funds was 26 basis points for the quarter ended March 31, 2012, compared to 29 basis points for the same period last year.
Investment securities were $130.1 million at March 31, 2012, representing 30.0% of our total assets, compared to $129.9 million, or 32.1% of total assets at December 31, 2011.
Loans were $230.0 million at March 31, 2012, compared to $233.0 million at December 31, 2011. Loan originations were $25.7 million and $29.9 million during the quarters ended March 31, 2012 and 2011, respectively.
As of March 31, 2012, the allowance for loan losses ("ALL") was $5.3 million, or 2.30% of total loans, compared to $5.3 million, or 2.27% of total loans, at December 31, 2011. The ALL to non-performing loans was 72.59% and 69.47% at March 31, 2012 and December 31, 2011, respectively.
Non-performing loans to total loans was 3.17% and 3.26% at March 31, 2012 and December 31, 2011, respectively.
Non-performing assets as a percentage of total assets declined to 1.68% at March 31, 2012, compared to 1.88% at December 31, 2011.
For the quarter ended March 31, 2012, the Company recorded net income of $592,000, or $0.07 per diluted share, compared to $123,000, or $0.01, during the same period last year.

Capital Adequacy

At March 31, 2012, the Company's stockholders' equity totaled $45.7 million compared to $45.1 million at December 31, 2011. At March 31, 2012, the Bank's total risk-based capital ratio, tier 1 risk-based capital ratio, and tier 1 leverage ratio were 17.34%, 16.08%, and 10.18%, respectively, compared to the regulatory requirements for "well capitalized" financial institutions of 10.00%, 6.00%, and 5.00%, respectively.

In August 2010, the Company's Board of Directors authorized the purchase of up to $2.0 million of the Company's common stock. Under this stock repurchase program, the Company has been acquiring its common stock in the open market from time to time beginning in August 2010. As of March 31, 2012, the Company had repurchased 534,171 shares in the open market at a cost ranging from $3.35 to $4.02 per share in connection with this program. During the quarter ended March 31, 2012, the Company repurchased 43,847 shares in the open market at a cost ranging from $3.52 to $3.99 per share in connection with this program. At March 31, 2012, the remaining value of shares that may be repurchased under this program was $29,000.

Balance Sheet

Total assets at March 31, 2012 were $433.4 million, representing an increase of approximately $28.1 million, or 6.9%, from $405.3 million at December 31, 2011. The increase in total assets is primarily attributable to an increase in cash and cash equivalents, resulting from growth in our deposit portfolio. Cash and cash equivalents at March 31, 2012 were $73.2 million, representing an increase of $31.2 million, or 74.5%, from $41.9 million at December 31, 2011. Investment securities were $130.1 million at March 31, 2012, compared to $129.9 million at December 31, 2011. The average life of our investment securities was 3.21 years and 3.50 years at March 31, 2012 and December 31, 2011, respectively. Loans were $230.0 million and $233.0 million at March 31, 2012 and December 31, 2011, respectively.