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1st Capital Bancorp Announces First Quarter 2021 Results

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1st Capital Bancorp (OTC Pink:FISB) reported a net income of $1.54 million, or $0.27 per diluted share, for Q1 2021, a substantial increase from $608,000 or $0.11 per diluted share in Q1 2020. Total assets rose 35% to $874.4 million YoY, driven by a 38% increase in deposits. The bank did not incur any provisions for loan losses this quarter, contrasting with $825,000 in Q1 2020. However, nonperforming assets increased to 0.35% of total assets. The efficiency ratio improved to 69.69% from 73.06% a year ago. CEO Sam Jimenez highlighted the bank's strong credit quality amid economic recovery.

Positive
  • Net income rose 153% YoY to $1.54 million.
  • Total assets increased 35% to $874.4 million compared to last year.
  • Deposits grew 38% to $787.8 million.
  • Return on average equity improved to 8.29% from 3.53% YoY.
  • No provisions for loan losses, reflecting confidence in credit quality.
Negative
  • Nonperforming assets increased to 0.35% of total assets, up from 0.08% YoY.
  • Net interest margin decreased by 32 basis points YoY to 3.55%.

SALINAS, CA / ACCESSWIRE / April 30, 2021 / 1st Capital Bancorp (the "Company), (OTC Pink:FISB), the $875 million asset bank holding company and parent company of 1st Capital Bank (the "Bank"), today reported net income of $1.54 million or $0.27 diluted earnings per share for the quarter ended March 31, 2021. This compares to $608 thousand, or $0.11 diluted earnings per share for the quarter ended March 31, 2020, and $1.59 million, or $0.28 for the quarter ended December 31, 2020.

Financial Highlights

Performance highlights for the quarter ended March 31, 2021, as compared to quarter ending March 31, 2020, and the quarter ending December 31, 2020:

●

For the quarter ended March 31, 2021, the Company's return on average equity was 8.29%, as compared to 3.53% and 8.60% for the quarter ended March 31, 2020 and December 31, 2020, respectively.

●

For the quarter ended March 31, 2021, the Company's return on average assets was 0.77%, as compared to 0.38% and 0.82% for the quarter ended March 31, 2020 and December 31, 2020, respectively.

●

For the quarter ended March 31, 2021, the Company's net interest margin was 3.55%, as compared to 3.87% and 3.54% for the three months ended March 31, 2020 and December 31, 2020, respectively.

●

For the quarter ended March 31, 2021, the Company's efficiency ratio was 69.69%, as compared to 73.06% and 67.65% for the three months ended March 31, 2020 and December 31, 2020, respectively.

●

For the quarter ended March 31, 2021, the Company's provision expense for loan losses was $0, as compared to $825 thousand and $0 for the three months ended March 31, 2020 and December 31, 2020, respectively.

Financial Highlights (Con't)

●

For the quarter ended March 31, 2021, the Company's nonperforming assets to total assets was 0.35%, as compared to 0.08% and 0.16% for the three months ended March 31, 2020 and December 31, 2020, respectively.

●

As of March 31, 2021, the Company reported total assets, total deposits, and total loans of $874.4 million, $787.8 million, and $619.4 million, respectively.

"Despite the lingering challenges posed by COVID-19, our first quarter financial results are solid and reflect the continuing efforts of our dedicated team of bankers in serving our customers throughout our Central Coast communities," stated Sam Jimenez Chief Executive Officer. "Our credit quality and capital levels remain strong, positioning us well for continued growth as California and our local economies recover from the effects of the pandemic."

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

For the Three Months Ended

March 31,

Change

Dec 31,

Change

2021

2020

Amount

%

2020

Amount

%

Operating Results Data

Interest income

$7,108

$6,188

$920

15%

$6,852

$256

4%

Interest expense

242

323

(81)

-25%

226

16

7%

Net interest income

6,866

5,865

1,001

17%

6,626

240

4%

Provision for loan losses

-

825

(825)

-100%

-

-

-

Noninterest income

191

288

(97)

-34%

233

(42)

-18%

Noninterest expenses

4,918

4,495

423

9%

4,640

278

6%

Income before provision for income taxes

2,139

833

1,306

157%

2,219

(80)

-4%

Provision for income taxes

602

225

377

168%

626

(24)

-4%

Net income

$1,537

$608

$929

153%

$1,593

$(56)

-4%

Assets

Cash and due from banks

$11,497

$6,582

$4,915

75%

$9,304

$2,193

24%

Funds held at the Federal Reserve Bank

47,158

30,071

17,087

57%

97,462

(50,304)

-52%

Available-for-sale securities, at fair value

181,201

63,728

117,473

184%

106,214

74,987

71%

Total loans

619,436

530,487

88,949

17%

605,154

14,282

2%

Allowance for loan losses

(8,828)

(7,431)

(1,397)

19%

(8,816)

(12)

0%

Net loans

610,608

523,056

87,552

17%

596,338

14,270

2%

Other Assets

24,003

22,323

1,680

8%

23,233

770

3%

Total assets

$874,467

$645,760

$228,707

35%

$832,551

$41,916

5%

Liabilities and Shareholders' Equity

Noninterest bearing demand deposits

$401,123

$252,760

$148,363

59%

$386,711

$14,412

4%

Interest bearing checking accounts

58,612

41,857

16,755

40%

65,686

(7,074)

-11%

Money market

185,841

158,178

27,663

17%

159,509

26,332

17%

Savings

127,940

99,789

28,151

28%

121,148

6,792

6%

Time

14,317

19,400

(5,083)

-26%

15,284

(967)

-6%

Interest bearing deposits

386,710

319,224

67,486

21%

361,627

25,083

7%

Total deposits

787,833

571,984

215,849

38%

748,338

39,495

5%

Other liabilities

12,249

4,961

7,288

147%

9,880

2,369

24%

Shareholders' equity

74,385

68,815

5,570

8%

74,333

52

0%

Total liabilities and shareholders' equity

$874,467

$645,760

$228,707

35%

$832,551

$41,916

5%

Shares outstanding

5,571,545

5,528,218

43,327

1%

5,570,021

1,524

0%

Earnings per share basic

$0.28

$0.11

$0.17

155%

$0.29

$-0.01

-4%

Earnings per share diluted

$0.27

$0.11

$0.16

145%

$0.28

$-0.01

-4%

Nominal and tangible book value per share

$13.35

$12.45

$0.90

7%

$13.35

$0.00

0%

FIRST QUARTER 2021 EARNINGS SUMMARY

Net Interest Income and Net Interest Margin

The Company's first quarter 2021 net interest income increased $1.0 million or 17.07% as compared with the quarter ending March 31, 2020 and $240 thousand or 3.62%, compared with the quarter ending December 31, 2020. The increase from the same period a year ago was driven almost exclusively from revenue generation from the Paycheck Protection Program (PPP) loans while the increase over the trailing quarter was primarily driven from an increased level of investment securities.

The Company's net interest margin decreased by 32 basis points (bps) or 8.27% when compared to the quarter ending March 31, 2020, and was generally flat relative to the quarter ending December 31, 2020.

The 32 bps decrease compared to the same period a year ago was driven by a significant amount of the Company's earning assets re-pricing lower as a result of 150 bps reduction of the Federal Funds rate in March of 2020. The net interest margin remained flat relative to the trailing quarter due to a combination of exchanging incoming cash flows from prepaying residential mortgage loans and deposit growth for newly generated PPP loan originations and securities purchases.

Provision for Loan Losses

The Company did not make any provisions for loan losses in the quarter ending March 31, 2021, as compared to $825 thousand and $0 in the quarter ending March 31, 2020, and December 31, 2020, respectively. Uncertainty surrounding COVID-19, and the potential negative impact on our clients and asset quality dictated the provisions made in the same period a year ago. Improving economic conditions and diminished concern with the Company's asset quality eliminated the need for any additional provisions for loan losses in the trailing quarter of December 31, 2020.

Noninterest Expenses

The Company's first quarter 2021 non-interest expenses increased $423 thousand and $278 thousand or 9.41% and 5.99%, as compared with quarter ending March 31, 2020, and December 31, 2020, respectively.

The increases in both comparative periods is centered in salaries and benefits. In regards to the same period ending March 31, 2020, the addition of 11 employees, including a team of Relationship Managers in our San Luis Obispo market, the opening of our Santa Cruz branch, merit increases for all employees, and to a lesser extent, increases in various other general operating areas also contributed to the increased level of expenses.

The increase as compared to the trailing period of December 31, 2020 is primarily attributed to the transition expense of an executive officer.

Balance Sheet Summary

The Company's total assets increased $228.7 million or 35.42% to $874.4 million as compared to the quarter ending March 31, 2020.

Total loans outstanding totaled $619.4 million as of March 31, 2021. This represents an $88.9 million increase or 16.77% from the quarter ending March 31, 2020 outstanding balance of $530.5 million. The Company's loan growth was driven by $118.4 million in PPP loan originations, $18.8 million in organic loan growth, and partially offset by $48.3 in payoffs from our residential mortgage portfolio.

The investment portfolio increased $117.5 million or 184.34% to $181.2 million from an outstanding balance of $63.7 million as of March 31, 2020. As mentioned above, incoming cashflows from prepaying assets and deposit growth were also significantly deployed in bonds. The majority of the investments were made in mortgage-backed securities, floating rate securities, and to a lesser extent in municipal securities.

Total deposits totaled $787.8 million as of March 31, 2021. This represents a $215.8 million increase or 37.74% from the quarter ending March 31, 2020 outstanding balance of $572.0 million. Growth in noninterest-bearing demand deposit accounts accounted $148.4 million or 68.77% of the total deposit growth over the twelve months ending on March 31, 2021. The majority of this growth was associated with PPP loan proceeds which our customers deposited with the Bank.

The balance of the deposit growth was distributed among interest-bearing deposit accounts with the exception of time deposits which decreased by approximately $5.1 million to $14.3 million

Asset Quality

At March 31, 2021, non-performing assets were 0.35% of the Company's total assets, compared with 0.08% at March 31, 2020. At March 31, 2021, the allowance for loan losses was 1.43% of outstanding loans, compared to 1.40% at March 31, 2020, respectively. The Bank recorded net recoveries of $12 thousand in each of the first quarters of 2021 and 2020.

As of March 31, 2021, the Company does not have any outstanding loan deferments or forbearances stemming from COVID-19.

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

Assets
 3/31/2021 12/31/2020 9/30/2020 3/31/2020
Cash and due from banks
 $11,497 $9,304 $6,966 $6,582
Funds held at the Federal Reserve Bank
 47,158 97,462 38,715 30,071
Available-for-sale securities, at fair value
 181,201 106,214 59,649 63,728
Loans held for sale
 - - 442 -
Construction/land (including farmland)
 19,331 17,097 15,850 21,193
Residential 1 to 4 units
 87,736 102,688 115,881 136,014
Home equity lines of credit
 5,400 5,955 6,034 7,656
Multifamily
 84,942 84,704 79,693 57,900
Owner occupied commercial real estate
 68,189 72,427 70,935 73,488
Investor commercial real estate
 176,709 174,437 173,557 171,266
Commercial and industrial
 49,314 47,550 48,812 50,460
Paycheck Protection Program
 118,381 90,382 106,559 -
Other loans
 9,434 9,914 10,877 12,510
Total loans held for investment
 619,436 605,154 628,198 530,487
Allowance for loan losses
 (8,828) (8,816) (8,804) (7,431)
Net loans held for investment
 610,608 596,338 619,394 523,056
Other assets
 24,003 23,233 23,856 22,323
Total assets
 $874,467 $832,551 $749,022 $645,760
Liabilities and Shareholders' Equity
 3/31/2021 12/31/2020 9/30/2020 3/31/2020
Noninterest bearing demand deposits
 $401,123 $386,711 $356,730 $252,760
Interest bearing checking accounts
 58,612 65,686 54,228 41,857
Money market
 185,841 159,509 128,039 158,178
Savings
 127,940 121,148 105,431 99,789
Time
 14,317 15,284 17,147 19,400
Interest bearing deposits
 386,710 361,627 304,845 319,224
Total deposits
 787,833 748,338 661,575 571,984
Other liabilities
 12,249 9,880 15,059 4,961
Shareholders' equity
 74,385 74,333 72,388 68,815
Total liabilities and shareholders' equity
 $874,467 $832,551 $749,022 $645,760

CONDENSED FINANCIAL DATA
(Unaudited)
(Dollars in thousands)

 Three Months Ended
Operating Results Data
 3/31/2021 12/31/2020 9/30/2020 3/31/2020
Loans
 $6,600 $6,531 $6,133 $5,683
Investment securities
 455 266 253 375
Federal Home Loan Bank stock
 44 44 44 62
Other income
 9 11 7 68
Interest expense
 242 226 212 323
Net interest income
 6,866 6,626 6,225 5,865
Provision for loan losses
 - - 650 825
Noninterest income
 191 233 326 288
Salaries and benefits expense
 3,144 2,937 2,704 2,824
Occupancy expense
 418 408 390 363
Data and item processing
 251 249 225 221
Furniture and equipment
 116 131 127 191
Professional services
 178 123 350 161
Other
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FAQ

What was 1st Capital Bancorp's net income for Q1 2021?

1st Capital Bancorp reported a net income of $1.54 million for Q1 2021.

How did total assets change for 1st Capital Bancorp in Q1 2021?

Total assets increased by 35% to $874.4 million in Q1 2021.

What was the diluted earnings per share for FISB in Q1 2021?

The diluted earnings per share for 1st Capital Bancorp in Q1 2021 was $0.27.

Did 1st Capital Bancorp incur any provisions for loan losses in Q1 2021?

No provisions for loan losses were made in Q1 2021.

What percentage of nonperforming assets does 1st Capital Bancorp have as of March 31, 2021?

As of March 31, 2021, nonperforming assets were 0.35% of total assets.

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Banks - Regional
Financial Services
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United States of America
Salinas