1st Capital Bancorp Announces Second Quarter 2023 Financial Results
SALINAS, Calif., July 28, 2023 (GLOBE NEWSWIRE) -- 1st Capital Bancorp (the “Company”) (OTCQX: FISB), the $960.9 million asset bank holding company and parent company of 1st Capital Bank (the “Bank”), today reported unaudited net income of $609 thousand for the quarter ended June 30, 2023, a decrease of 42.5% compared to net income of $1.06 million for the quarter ended March 31, 2023, and a decrease of 75.9% compared to net income of $2.52 million for the quarter ended June 30, 2022.
Deposit balances have increased significantly with growth of $62.0 million, or 7.6%, in the quarter ended June 30, 2023 compared to March 31, 2023. As a result of this substantial increase in liquidity, the Company paid off the entire $55.0 million of other borrowings outstanding at March 31, 2023. Loan demand remained strong in the second quarter as the Company’s core loans increased $22.3 million, or 4.8%, at June 30, 2023 compared to March 31, 2023. This growth was partially offset by a $10 million decline in wholesale loan balances. Loan yields expanded 0.18 basis points (bps) to 4.95% for the quarter ended June 30, 2023 compared to 4.77% for the quarter ended March 31, 2023. Core loan asset quality remained strong and stable with nonperforming assets to total assets of 0.07% and 0.16% at June 30, 2023 and March 31, 2023, respectively.
“Our bankers remain focused on serving the growing needs of our clients despite the current macro-economic conditions, including elevated interest rates and the recent market disruptions,” stated Sam Jimenez, Chief Executive Officer. “Their efforts resulted in robust organic deposit and loan growth in the period which will further position the Company to improve on our second quarter’s operating performance. The Bank’s financial strength including a strong and stable core deposit base, ample and diverse sources of liquidity, and a solid capital position will continue to allow the team to remain focused on building long-term value for our shareholders.”
Financial Highlights
Performance highlights for the quarter ended June 30, 2023, as compared to the quarter ended March 31, 2023, and the quarter ended June 30, 2022:
- Earnings per share (diluted) were $0.11 for the second quarter of 2023, as compared to $0.19 and $0.45 for the quarters ended March 31, 2023, and June 30, 2022, respectively.
- For the quarter ended June 30, 2023, the Company's return on average equity was 4.13%, as compared to 7.51% and 14.82% for the quarters ended March 31, 2023, and June 30, 2022, respectively.
- For the quarter ended June 30, 2023, the Company’s return on average assets was 0.25% as compared to 0.45% and 0.98% for the quarters ended March 31, 2023, and June 30, 2022, respectively.
- For the quarter ended June 30, 2023, the Company’s net interest margin was 3.20% as compared to 3.39% and 3.58% for the quarters ended March 31, 2023, and June 30, 2022, respectively.
- Pretax, pre-provision income for the quarter ended June 30, 2023 totaled $1.8 million, as compared to $2.1 million and $3.5 million for the quarters ended March 31, 2023, and June 30, 2022, respectively.
- For the quarter ended June 30, 2023, the Company’s efficiency ratio was 77.32%, as compared to 74.38% and 61.89% for the quarters ended March 31, 2023 and June 30, 2022, respectively.
- The Company recorded $1.05 million and $690 thousand of provision expense for the quarters ended June 30, 2023, and March 31, 2023, respectively. There was no provision expense recorded for the quarter ended June 30, 2022.
- As of June 30, 2023, the Company’s nonperforming assets to total assets was 0.07%, as compared to 0.16% and 0.01% for March 31, 2023, and June 30, 2022, respectively.
- As of June 30, 2023, the Company reported total assets, total deposits, and total loans of $960.9 million, $879.4 million, and $585.1 million, respectively.
- Federal regulatory capital ratios for the quarters ended June 30, 2023, March 31, 2023, and June 30, 2022, exceed well capitalized thresholds.
- At June 30, 2023, the Company has $394.2 million in available liquidity from secured and unsecured borrowing lines, which represents 41.0% of total assets.
Net Interest Income and Net Interest Margin
The Company's second quarter 2023 net interest income decreased $226 thousand, or 2.9%, to $7.63 million as compared with $7.86 million for the quarter ended March 31, 2023, as funding costs outpaced expansion in earning asset yields. Loan interest income increased $504 thousand, or 7.50%, to $7.22 million for the quarter ended June 30, 2023, compared to $6.72 million for the quarter ended March 31, 2023. Interest income on investment securities remained consistent at $1.93 million and $1.94 million, respectively, for the quarters ended June 30, 2023 and March 31, 2023. Other interest income increased $131 thousand, or 42.1%, to $442 thousand for the quarter ended June 30, 2023 compared to $311 thousand for the quarter ended March 31, 2023, due to increases in average cash balances. Interest expense increased $854 thousand, or 71.8%, to $2.04 million for the quarter ended June 30, 2023, compared to $1.19 million for the quarter ended March 31, 2023, due to the cost of wholesale borrowings and brokered CD’s in the second quarter and a change in deposit mix to higher yielding money market and time deposit products. Interest expense for each of the quarters presented includes $169 thousand related to subordinated debt.
The Company's net interest margin declined by 19 basis points (bps) to 3.20% for the quarter ended June 30, 2023 from 3.39% when compared to the quarter ended March 31, 2023. This decrease was primarily driven by the increase in funding costs. The 0.18 bps expansion of loan yields from 4.77% for the quarter ended March 31, 2023 to 4.95% for the quarter ended June 30, 2023 was outpaced by the increased funding costs. The Company’s cost of funds increased 37 bps from 0.55% for the quarter ended March 31, 2023 to 0.92% for the quarter ended June 30, 2023.
Allowance for Credit Losses
The Company adopted Accounting Standards Update (ASU) 2016-13, more commonly referred to as the Current Expected Credit Loss (CECL) method on January 1, 2023, using the modified retrospective method with no adjustments to prior period comparative financial statements for all financial assets measured at amortized cost and off-balance sheet credit exposure as well as held to maturity securities, which resulted in a $127 thousand increase to the allowance for credit losses, a $3 thousand reserve for held-to-maturity securities and a $26 thousand increase to the reserve for unfunded commitments. The impact to retained earnings, net of taxes, was $111 thousand. Reporting periods beginning after January 1, 2023 are presented under ASU 2016-13 while prior period amounts continue to be reported in accordance with previously applicable Generally Accepted Accounting Principles in the United States.
Provision expense of $1.05 million was recorded in the quarter ended June 30, 2023, compared to $690 thousand in the quarter ended March 31, 2023. The provision expense was driven by loan growth, charge offs in the lease and consumer pools, and increased allocations to the wholesale loan pool portfolios.
Noninterest Expenses
The Company's total non-interest expense increased $108 thousand, or 1.79%, to $6.1 million in the quarter ended June 30, 2023, compared to $6.0 million for the quarter ended March 31, 2023. This increase is primarily due to an increase in FDIC insurance assessment.
Balance Sheet Summary
The Company's total assets at June 30, 2023 increased $6.4 million, or 0.7%, to $960.9 million as compared to $954.5 million at March 31, 2023.
Cash and due from banks decreased $1.3 million, or 2.7%, to $44.3 million at June 30, 2023 compared to $45.6 million at March 31, 2023.
Total loans outstanding were $585.1 million as of June 30, 2023, representing a $12.3 million, or 2.1%, increase from the March 31, 2023 outstanding balance of $572.8 million. Growth in owner occupied commercial real estate loan originations comprised the majority of loan growth in the second quarter, partially offset by declines in wholesale consumer and lease pools which continue to pay down. The Company has not purchased any wholesale loan pools in 2023.
| Loan type (dollars in thousands) | 6/30/2023 | % of Total Loans | 3/31/2023 | % of Total Loans | 6/30/2022 | % of Total Loans | |||||||||||
| Construction / land (including farmland) | $ | 24,212 | 4.1 | % | $ | 21,605 | 3.8 | % | $ | 18,502 | 3.2 | % | |||||
| Residential 1 to 4 units | 58,952 | 10.1 | % | 60,754 | 10.6 | % | 57,381 | 9.8 | % | ||||||||
| Home equity lines of credit | 3,643 | 0.6 | % | 4,214 | 0.7 | % | 5,392 | 0.9 | % | ||||||||
| Multifamily | 80,796 | 13.8 | % | 78,103 | 13.6 | % | 76,168 | 13.0 | % | ||||||||
| Owner occupied commercial real estate | 123,545 | 21.1 | % | 112,600 | 19.7 | % | 111,283 | 19.0 | % | ||||||||
| Investor commercial real estate | 189,216 | 32.3 | % | 188,220 | 32.9 | % | 186,448 | 31.8 | % | ||||||||
| Commercial and industrial | 42,949 | 7.3 | % | 40,498 | 7.1 | % | 43,652 | 7.4 | % | ||||||||
| Paycheck Protection Program | -- | 0.0 | % | -- | 0.0 | % | 1,986 | 0.3 | % | ||||||||
| Leases | 33,618 | 5.7 | % | 38,059 | 6.6 | % | 34,095 | 5.8 | % | ||||||||
| Consumer | 18,882 | 3.2 | % | 22,410 | 3.9 | % | 36,372 | 6.2 | % | ||||||||
| Other loans | 9,258 | 1.6 | % | 6,347 | 1.1 | % | 14,784 | 2.6 | % | ||||||||
| Total loans | 585,071 | 100.0 | % | 572,810 | 100.0 | % | 586,063 | 100.0 | % | ||||||||
| Allowance for credit losses | (6,746 | ) | (7,374 | ) | (8,066 | ) | |||||||||||
| Net loans held for investment | $ | 578,325 | $ | 565,436 | $ | 577,997 | |||||||||||
The investment portfolio decreased $6.6 million to $293.1 million from a balance of $299.7 million at March 31, 2023. The decline is reflective of paydowns and a $3.1 million increase in unrealized losses associated with the Company’s available-for-sale investment security portfolio; unrealized losses totaled $38.6 million at June 30, 2023 compared to $35.5 million at March 31, 2023. The increase in unrealized losses was driven by changes in the treasury yield curve that negatively impacted the portfolio’s valuation. At June 30, 2023 and March 31, 2023, $70.5 million and $71.0 million, respectively, or approximately 24%, of the investment portfolio is classified as held-to-maturity.
Total deposits were $879.4 million at June 30, 2023 representing a $62.0 million, or 7.6%, increase compared to total deposits of $817.4 million at March 31, 2023. Second quarter deposit growth benefitted from industry stabilization and represents growth in both new and existing relationships. Noninterest-bearing balances continue to comprise nearly half of total deposits at June 30, 2023.
| Deposit type (dollars in thousands) | 6/30/2023 | % of Total Deposits | 3/31/2023 | % of Total Deposits | 6/30/2022 | % of Total Deposits | ||||||||||||||
| Interest- bearing checking accounts | $ | 47,483 | 5.4 | % | $ | 51,631 | 6.3 | % | $ | 62,779 | 6.8 | % | ||||||||
| Money market | 287,148 | 32.7 | % | 233,666 | 28.6 | % | 290,106 | 31.3 | % | |||||||||||
| Savings | 116,582 | 13.3 | % | 126,513 | 15.5 | % | 143,215 | 15.4 | % | |||||||||||
| Time | 33,044 | 3.8 | % | 15,937 | 1.9 | % | 13,509 | 1.5 | % | |||||||||||
| Total interest-bearing deposits | 484,257 | 55.1 | % | 427,747 | 52.3 | % | 509,609 | 54.9 | % | |||||||||||
| Noninterest-bearing | 395,132 | 44.9 | % | 389,623 | 47.7 | % | 418,692 | 45.1 | % | |||||||||||
| Total deposits | $ | 879,389 | 100.0 | % | $ | 817,370 | 100.0 | % | $ | 928,301 | 100.0 | % | ||||||||
Uninsured deposits represent $314.2 million, or 47%, of total deposits at June 30, 2023. The Company maintains borrowing capacity of $394.2 million in secured and unsecured funding sources at June 30, 2023 covering 125.4% of uninsured balances.
Subordinated debt balances totaled $14.8 at June 30, 2023 and March 31, 2023. Other borrowings totaled $0 and $55.0 million at June 30, 2023 and March 31, 2023, respectively as deposit growth and cash flows generated by the loan and bond portfolios provided liquidity to pay off $55.0 million in other borrowings outstanding at March 31, 2023.
Shareholder’s equity totaled $57.8 million at June 30, 2023, a decrease of $500 thousand, or 0.9%, compared to $58.3 million at March 31, 2023. The decrease is reflective of the increase in unrealized losses on the available-for-sale investment security portfolio, the impact of which flows through accumulated other comprehensive income (AOCI), a component of equity, partially offset by an increase in the fair value of the cap corridor hedge which positively impacted AOCI. The negative AOCI impact in second quarter was partially offset by $609 thousand in net income contribution. The unrealized loss position on the held-to-maturity investment securities was captured at the date of transfer and amortizes over the remaining life of the bonds with market value movements having no future impact on the unrealized loss position of these bonds.
Asset Quality
At June 30, 2023, nonperforming assets were 0.07% of the Company’s total assets, compared with 0.16% at March 31, 2023. The allowance for credit losses was 1.15% of outstanding loans at June 30, 2023, compared to 1.29% at March 31, 2023. The Company had $138 thousand and $665 thousand in nonaccrual loans at June 30, 2023 and March 31, 2023, respectively, representing .02% and .12% of total loans, respectively. The Company recorded net charge-offs of $1.7 million in the quarter ended June 30, 2023, compared to $789 thousand in the quarter ended March 31, 2023. Charge-offs for the periods ended June 30, 2023 and March 31, 2023 were virtually all within the purchased consumer and lease pools, with the exception of a $46 thousand charge off of the unguaranteed portion of an SBA loan in the second quarter.
| Asset Quality (dollars in thousands) | 6/30/2023 | 3/31/2023 | 6/30/2022 | ||||||||
| Loans past due 90 days or more and accruing interest | $ | 487 | $ | 891 | $ | 145 | |||||
| Other nonaccrual loans | 138 | 665 | -- | ||||||||
| Other real estate owned | -- | -- | -- | ||||||||
| Total nonperforming assets | $ | 625 | $ | 1,556 | $ | 145 | |||||
| Allowance for credit losses to total loans | 1.15 | % | 1.29 | % | 1.38 | % | |||||
| Allowance for credit losses to nonperforming loans | 1079.36 | % | 474.01 | % | 5562.76 | % | |||||
| Nonaccrual loans to total loans | 0.02 | % | 0.12 | % | 0.00 | % | |||||
| Nonperforming assets to total assets | 0.07 | % | 0.16 | % | 0.01 | % | |||||
| 1ST CAPITAL BANCORP | ||||||||||
| CONDENSED FINANCIAL DATA – UNAUDITED | ||||||||||
| ($ in 000s, except per share data) | ||||||||||
| Assets | 6/30/2023 | 3/31/2023 | 6/30/2022 | |||||||
| Cash and due from banks | $ | 44,320 | $ | 45,567 | $ | 35,450 | ||||
| Investment securities available-for-sale | 222,662 | 228,711 | 298,483 | |||||||
| Investment securities held-to-maturity | 70,468 | 70,977 | 45,223 | |||||||
| Loans and leases held for investment | 585,071 | 572,810 | 586,063 | |||||||
| Allowance for credit losses | (6,746 | ) | (7,374 | ) | (8,066 | ) | ||||
| Net loans and leases held for investment | 578,325 | 565,436 | 577,997 | |||||||
| Other Assets | 45,129 | 43,829 | 32,926 | |||||||
| Total assets | $ | 960,904 | $ | 954,520 | $ | 990,079 | ||||
| Liabilities and Shareholders' Equity | ||||||||||
| Deposits: | ||||||||||
| Noninterest-bearing | $ | 395,132 | $ | 389,623 | $ | 418,692 | ||||
| Interest-bearing | 484,257 | 427,747 | 509,609 | |||||||
| Total deposits | 879,389 | 817,370 | 928,301 | |||||||
| Subordinated debentures | 14,776 | 14,757 | 14,701 | |||||||
| Other borrowings | -- | 55,000 | -- | |||||||
| Other liabilities | 8,915 | 9,044 | 8,386 | |||||||
| Shareholders' equity | 57,824 | 58,349 | 38,691 | |||||||
| Total liabilities and shareholders' equity | $ | 960,904 | $ | 954,520 | $ | 990,079 | ||||
| Shares outstanding | 5,518,996 | 5,509,429 | 5,467,966 | |||||||
| Earnings per share basic | $ | 0.11 | $ | 0.19 | $ | 0.46 | ||||
| Earnings per share diluted | $ | 0.11 | $ | 0.19 | $ | 0.45 | ||||
| Nominal and tangible book value per share | $ | 10.48 | $ | 10.59 | $ | 7.08 | ||||
| 1ST CAPITAL BANCORP CONDENSED FINANCIAL DATA – UNAUDITED ($ in 000s) | |||||||||
| Three Months Ended | |||||||||
| Operating Results Data | 6/30/2023 | 3/31/2023 | 6/30/2022 | ||||||
| Interest and dividend income | |||||||||
| Loans | $ | 7,222 | $ | 6,718 | $ | 7,258 | |||
| Investment securities | 1,929 | 1,944 | 2,038 | ||||||
| Federal Home Loan Bank stock | 78 | 70 | 59 | ||||||
| Other income | 442 | 311 | 56 | ||||||
| Total interest and dividend income | 9,671 | 9,043 | 9,411 | ||||||
| Interest expense | 2,042 | 1,188 | 573 | ||||||
| Net interest income | 7,629 | 7,855 | 8,838 | ||||||
| Provision for credit losses | 1,052 | 690 | - | ||||||
| Net interest income after provision for credit losses | 6,577 | 7,165 | 8,838 | ||||||
| Noninterest income | 297 | 373 | 290 | ||||||
| Net (loss) on sales/calls of investment securities | -- | (134 | ) | -- | |||||
| Noninterest expenses | |||||||||
| Salaries and benefits expense | 3,615 | 3,747 | 3,457 | ||||||
| Occupancy expense | 463 | 414 | 463 | ||||||
| Data and item processing | 328 | 308 | 265 | ||||||
| Furniture and equipment | 101 | 117 | 150 | ||||||
| Professional services | 279 | 268 | 114 | ||||||
| Other | 1,342 | 1,167 | 1,201 | ||||||
| Total noninterest expenses | 6,128 | 6,021 | 5,650 | ||||||
| Income before provision for income taxes | 746 | 1,383 | 3,478 | ||||||
| Provision for income taxes | 137 | 325 | 958 | ||||||
| Net income | $ | 609 | $ | 1,058 | $ | 2,520 | |||
| Three Months Ended | ||||||||||
| Selected Average Balances | 6/30/2023 | 3/31/2023 | 6/30/2022 | |||||||
| Gross loans | $ | 584,939 | $ | 571,144 | $ | 593,990 | ||||
| Investment securities | 333,844 | 303,034 | 373,853 | |||||||
| Federal Home Loan Bank stock | 4,314 | 4,058 | 4,024 | |||||||
| Other interest earning assets | 43,581 | 34,996 | 31,158 | |||||||
| Total interest earning assets | 966,678 | 913,232 | 1,003,025 | |||||||
| Total assets | 962,808 | 947,453 | 1,027,269 | |||||||
| Interest-bearing checking accounts | 49,082 | 66,480 | 64,988 | |||||||
| Money market | 260,482 | 238,012 | 278,646 | |||||||
| Savings | 124,088 | 138,031 | 149,930 | |||||||
| Time deposits | 28,375 | 10,897 | 12,350 | |||||||
| Total interest- bearing deposits | 462,027 | 453,420 | 505,914 | |||||||
| Noninterest bearing demand deposits | 386,503 | 405,436 | 427,351 | |||||||
| Total deposits | 848,530 | 858,856 | 933,265 | |||||||
| Subordinated debentures and other borrowings | 45,308 | 21,261 | 17,546 | |||||||
| Shareholders' equity | $ | 59,145 | $ | 57,148 | $ | 68,227 | ||||
| 1ST CAPITAL BANCORP CONDENSED FINANCIAL DATA – UNAUDITED ($ in 000s) | ||||||||||
| Three Months Ended | ||||||||||
| Selected Financial Ratios | 6/30/2023 | 3/31/2023 | 6/30/2022 | |||||||
| Return on average total assets | 0.25 | % | 0.45 | % | 0.98 | % | ||||
| Return on average shareholders' equity | 4.13 | % | 7.51 | % | 14.82 | % | ||||
| Net interest margin | 3.20 | % | 3.39 | % | 3.58 | % | ||||
| Net interest income to average total assets | 3.18 | % | 3.36 | % | 3.56 | % | ||||
| Efficiency ratio | 77.32 | % | 74.38 | % | 61.89 | % | ||||
| 1ST CAPITAL BANCORP CONDENSED FINANCIAL DATA – UNAUDITED ($ in 000s) | ||||||
| Six Months Ended | ||||||
| Operating Results Data | 6/30/2023 | 6/30/2022 | ||||
| Interest and dividend income | ||||||
| Loans | $ | 13,940 | $ | 14,154 | ||
| Investment securities | 3,873 | 3,595 | ||||
| Federal Home Loan Bank stock | 148 | 117 | ||||
| Other income | 753 | 69 | ||||
| Total interest and dividend income | 18,714 | 17,935 | ||||
| Interest expense | 3,230 | 1,103 | ||||
| Net interest income | 15,484 | 16,832 | ||||
| Provision for credit losses | 1,742 | -- | ||||
| Net interest income after provision for credit losses | 13,742 | 16,832 | ||||
| Noninterest income | 670 | 609 | ||||
| Net (loss) on sales/calls of investment securities | (134 | ) | -- | |||
| Noninterest expenses | ||||||
| Salaries and benefits expense | 7,363 | 6,902 | ||||
| Occupancy expense | 877 | 897 | ||||
| Data and item processing | 636 | 528 | ||||
| Furniture and equipment | 218 | 290 | ||||
| Professional services | 547 | 283 | ||||
| Other | 2,508 | 2,215 | ||||
| Total noninterest expenses | 12,149 | 11,115 | ||||
| Income before provision for income taxes | 2,129 | 6,326 | ||||
| Provision for income taxes | 462 | 1,714 | ||||
| Net income | $ | 1,667 | $ | 4,612 | ||
| Six Months Ended | ||||||
| Selected Average Balances | 6/30/2023 | 6/30/2022 | ||||
| Gross loans | $ | 578,080 | $ | 582,060 | ||
| Investment securities | 336,772 | 368,123 | ||||
| Federal Home Loan Bank stock | 4,187 | 3,987 | ||||
| Other interest earning assets | 39,312 | 35,207 | ||||
| Total interest earning assets | 958,351 | 989,377 | ||||
| Total assets | 955,173 | 1,012,035 | ||||
| Interest bearing checking accounts | 57,733 | 65,368 | ||||
| Money market | 217,762 | 250,017 | ||||
| Savings | 131,021 | 154,434 | ||||
| Time deposits | 19,684 | 11,963 | ||||
| Total interest-bearing deposits | 426,200 | 481,782 | ||||
| Noninterest-bearing demand deposits | 427,464 | 432,842 | ||||
| Total deposits | 853,664 | 914,624 | ||||
| Subordinated debentures and other borrowings | 33,351 | 16,116 | ||||
| Shareholders' equity | $ | 58,152 | $ | 74,152 | ||
| 1ST CAPITAL BANCORP CONDENSED FINANCIAL DATA – UNAUDITED ($ in 000s) | ||||||
| Six Months Ended | ||||||
| Selected Financial Ratios | 6/30/2023 | 6/30/2022 | ||||
| Return on average total assets | 0.35 | % | 0.92 | % | ||
| Return on average shareholders' equity | 5.78 | % | 12.54 | % | ||
| Net interest margin | 3.30 | % | 3.51 | % | ||
| Net interest income to average total assets | 3.27 | % | 3.35 | % | ||
| Efficiency ratio | 75.84 | % | 63.73 | % | ||
| Regulatory Capital and Ratios | 6/30/2023 | 3/31/2023 | 6/30/2022 | ||||||
| Common equity tier 1 capital | $ | 103,412 | $ | 102,724 | $ | 97,226 | |||
| Tier 1 regulatory capital | $ | 103,412 | $ | 102,724 | $ | 97,226 | |||
| Total regulatory capital | $ | 110,312 | $ | 110,295 | $ | 105,418 | |||
| Tier 1 leverage ratio | 10.36 | % | 10.45 | % | 9.62 | % | |||
| Common equity tier 1 risk-based capital ratio | 15.26 | % | 15.32 | % | 13.27 | % | |||
| Tier 1 capital ratio | 15.26 | % | 15.32 | % | 13.27 | % | |||
| Total risk-based capital ratio | 16.28 | % | 16.45 | % | 14.39 | % | |||
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 . 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.
This news release is available at the internet site for no charge.
For further information, please contact:
| Samuel D. Jimenez | Danelle Thomsen | |
| Chief Executive Officer | Chief Financial Officer | |
| 831.264.4057 office | 831.264.4014 office | |
