LOS ANGELES, Aug. 7, 2013 (GLOBE NEWSWIRE) -- 1st Century Bancshares, Inc. (the "Company") (Nasdaq:FCTY), the holding company for 1st Century Bank, N.A. (the "Bank"), today reported net income for the three and six months ended June 30, 2013 of $4.4 million and $5.8 million, respectively, compared to $751,000 and $1.3 million for the same periods last year. Earnings for the three and six months ended June 30, 2013 included a $3.2 million income tax benefit in connection with the reversal of our deferred tax valuation allowance and a $535,000 gain on the sale of investment securities. Pre-tax, pre-provision earnings for the three and six months ended June 30, 2013 was $1.2 million and $2.2 million, respectively, compared to $770,000 and $1.4 million for the same periods last year.
Pre-tax, pre-provision earnings, a non-GAAP financial measure, is presented because management believes adjusting the Company's results to exclude taxes and loan loss provisions provides stockholders with a useful metric for evaluating the profitability of the Company. A schedule reconciling our GAAP net income to pre-tax, pre-provision earnings is provided in the table below.
Alan I. Rothenberg, Chairman of the Board and Chief Executive Officer of the Company, stated, "I'm pleased to announce our second quarter financial results. This quarter we are reporting the highest book value per share and earnings in the Company's history. At the end of the second quarter, our book value per share increased to $5.77 per share from $5.12 per share at June 30, 2012, while our net income for the quarter increased to $4.4 million, or $0.49 per diluted share, from $751,000, or $0.09 per diluted share, during the same period last year."Jason P. DiNapoli, President and Chief Operating Officer of the Company, added, "I'm proud of our quarterly results and I'm optimistic that we will continue to build on these trends for the remainder of the year. Our increased earnings were led by the reversal of our deferred tax valuation allowance, which resulted in an income tax benefit of approximately $3.2 million. Excluding the impact of this item, net income improved by over 50% compared to the same period last year. This increase was primarily related to gains recognized in connection with the opportunistic sale of investment securities. We've also continued to enjoy robust quality loan growth, with total loans increasing by over $45 million since the beginning of the year. I believe that, in addition to our quality loan growth and our increasing book value per share, that our credit quality, regulatory capital ratios and earnings will remain a source of strength and a cornerstone for future initiatives."
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