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1st Century Bancshares, Inc. Reports Financial Results For The Quarter And Six Months Ended June 30, 2014

Stocks in this article: FCTY

LOS ANGELES, Aug. 7, 2014 (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, 2014 of $779,000 and $1.2 million, respectively, compared to $4.4 million and $5.8 million for the same periods last year. Pre-tax, pre-provision earnings for the three and six months ended June 30, 2014 was $1.4 million and $2.2 million, respectively, compared to $1.2 million and $2.2 million for the same periods last year. Included in net income for the three and six months ended June 30, 2014 are gains in connection with the sale of securities of $533,000 and $786,000, respectively, compared to $535,000 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 2 nd quarter results, which were highlighted by strong loan growth and improvement in net interest margins. During the quarter, loan originations were $77.0 million, an increase of over 215% from the 1 st quarter of this year, and our net interest margin increased to 3.33% during the quarter compared to 3.15% for the same period last year. Sustaining these trends, as well as continuing to maintain our strong asset quality, are key factors to our future success. Total non-performing assets to total assets was 13 basis points at the end of the quarter, which is the lowest level that this ratio has been in over five years. During the quarter, we also monetized gains in our investment portfolio. In addition to being a source of interest income for the Company, this portfolio has recently generated realized gains as a result of favorable changes in market conditions." 

Jason P. DiNapoli, President and Chief Operating Officer of the Company added, "I'm encouraged by our quarterly results. Loan demand returned during the second quarter and our local economy continues to improve. During the quarter, our cost of deposits was 9 basis points. This is the first time in our history that deposit costs have dipped below 10 basis points. This decline has been driven by an increase in our non-interest bearing relationship accounts, which now represent over 56% of total deposits." 

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