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Alan I. Rothenberg
Chairman/Chief Executive Officer
Phone: (310) 270-9501
Jason P. DiNapoli
President/Chief Operating Officer
Phone: (310) 270-9505
1ST CENTURY BANCSHARES, INC. REPORTS FINANCIAL RESULTS
FOR THE QUARTER ENDED MARCH 31, 2016
Los Angeles, CA (April 27, 2016) – 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 quarter ended March 31, 2016 of $273,000, compared to $315,000 for the same period last year. Diluted earnings per share for both the quarters ended March 31, 2016 and 2015 was $0.03. Pre-tax, pre-provision earnings for the quarter ended March 31, 2016 was $682,000, compared to $711,000 for the same period last year. Included in net income for the quarter ended March 31, 2016, are non-interest expenses of $861,000 and $268,000 incurred in connection with the proposed merger with Midland Financial Co. (“Midland”) and the registration statement on Form S-1 (“Form S-1”) that was filed with the U.S. Securities and Exchange Commission (the “SEC”) on September 25, 2015, respectively. Excluding the impact of these items, net earnings would have been approximately $928,000 during the quarter ended March 31, 2016. Net earnings excluding these items, a non-GAAP financial measure, is presented because management believes adjusting the Company’s results to exclude these non-interest expenses provides stockholders with a useful metric for evaluating the profitability of the Company. A schedule reconciling our GAAP net income to earnings, excluding merger and Form S-1 related expenses is provided in the table below. Further discussion regarding the proposed merger is also provided below.
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 of Directors and Chief Executive Officer of the Company, stated, “I’m proud to announce our financial results for the quarter ended March 31, 2016, which reflect positive trends in loan and deposit growth, as well as in our net interest margin. During the quarter, total loans increased to $609 million from $598 million at December 31, 2015, while our deposits grew to $655 million from $598 million at December 31, 2015. In addition, our net interest margin improved to 3.89% from 3.46% during the same period last year.”
Jason P. DiNapoli, President and Chief Operating Officer of the Company, added, “Our momentum continues as we enter the next chapter of our history with Midland. The capital, financial strength and product breadth provided by Midland will enable us to continue building our unique franchise and further support our shared vision of creating the premier bank on the Westside of Los Angeles.”
Proposed Merger with Midland Financial Co.
On March 10, 2016, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”), with Midland, and MC 2016 Corp., a wholly-owned subsidiary of Midland (“Merger Sub”), pursuant to which, upon the terms and subject to the conditions set forth therein, Merger Sub will merge (the “Merger”) with and into the Company, with the Company surviving the Merger as a wholly-owned subsidiary of Midland. Simultaneously with the Merger, the Bank will merge (the “Bank Merger”) with and into MidFirst Bank, a federally-chartered savings association and a wholly-owned subsidiary of Midland (“MidFirst”), with MidFirst surviving the Bank Merger. Immediately after the Merger and Bank Merger described above, the Company, as the surviving corporation in the Merger, will merge with and into Midland, with Midland as the surviving corporation. Following these transactions, the business of 1st Century Bank will continue to operate under the 1st Century brand as a division of MidFirst Bank.
The following information was filed by 1St Century Bancshares, Inc. (FCTY) on Wednesday, April 27, 2016 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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