First California Reports 33 Percent Increase in Earnings for 2012 Second Quarter
Company to Host Conference Call Today at 11 a.m. Pacific Time
(firmenpresse) - WESTLAKE VILLAGE, CA -- (Marketwire) -- 07/26/12 -- First California Financial Group, Inc. (NASDAQ: FCAL), the holding company of First California Bank, today reported net income of $3.2 million for the quarter ended June 30, 2012, compared with $2.4 million for the same quarter a year ago. Net income available to common shareholders was $2.9 million, or $0.10 per diluted share, compared with $2.1 million, or $0.07 per diluted share, for the prior year second quarter. Preferred dividends were $312,500 for each of the second quarters of 2012 and 2011. At June 30, 2012, tangible book value per common share was $4.51.
"Results for the second quarter continue to demonstrate positive momentum, reflecting the strategies we put into place to increase profitability and improve efficiency," said C. G. Kum, president and chief executive officer of First California Financial Group. "Fee income, net interest income, and deposits all grew by double digits in the second quarter compared with the second quarter of 2011, and core earnings continued to show significant improvement, increasing 33 percent over the comparable prior year quarter and 24 percent from the 2012 first quarter."
Net interest income rose 11 percent from the same period a year ago;
Service charges, fees and other income jumped 29 percent from the year ago period;
The efficiency ratio declined to 67 percent from 71 percent;
Core earnings improved 33 percent from the same period a year ago;
Asset quality remained solid as annualized net charge-offs were 0.07 percent of average loans for the first half of 2012, while net charge-offs declined to $310,000 for the 2012 second quarter from $860,000 a year ago;
Non-covered loans increased 11 percent to $1.039 billion over the 2011 year end;
Non-interest checking deposits increased 26 percent, and total deposits increased 10 percent over the 2011 year end;
Tangible book value per common share increased to $4.51, or 8 percent, from the 2011 year end;
The second quarter return on average tangible common equity was 9.91 percent.
For the 2012 second quarter, net interest income before the provision for loan losses increased 11 percent to $17.2 million from $15.5 million for the 2011 second quarter. The increase reflects a 7 percent increase in average earning assets and a 4 percent increase in net interest margin. Interest income (discount accretion) on covered loans for the 2012 second quarter was $5.1 million. 2011 second quarter interest income (discount accretion) on covered loans was $4.3 million. Net interest margin, on a taxable equivalent basis, rose to 4.12 percent from 3.95 percent for the 2011 second quarter. A 26 percent decline in the rate paid on interest-bearing liabilities and a 36 percent increase in average noninterest-bearing deposits drove the increase in net interest margin.
Service charges, fees and other income increased to $2.9 million from $2.2 million for the 2011 second quarter, primarily reflecting continued growth in business volumes and fees generated from the EPS division. Revenues from the EPS division doubled to $1.7 million for the 2012 second quarter from $854,000 for the same quarter last year.
Second quarter 2012 non-interest income included a $593,000 net gain on the sale of securities and a $296,000 loss on non-hedged derivatives. For the 2011 second quarter, non-interest income included a $490,000 net gain on the sale of securities, a $166,000 gain from the sale of the former head office of the Bank and a $466,000 gain on the acquisition of the EPS division.
Operating expenses for the 2012 second quarter were $13.4 million, compared with $12.6 million for the 2011 second quarter. Operating expenses exclude intangible amortization, integration/conversion expenses and foreclosed property gains, losses and expenses. The increase reflects higher salaries and benefit expense, primarily due to the EPS division acquisition and the addition of new lending teams, and higher professional services expense, primarily related to shareholder matters. The efficiency ratio was 67.01 percent for the 2012 second quarter, compared with 70.81 percent for the same period last year.
Core earnings, which represent income before taxes and exclude credit charges and non-recurring items such as gain on acquisitions, integration/conversion expense and securities transactions, were $6.1 million for the second quarter of 2012, compared with $4.6 million for the same period a year ago, an increase of 33 percent.
Non-covered loans, before the allowance for loan losses, grew 11 percent to $1.0 billion at June 30, 2012 from $936.1 million at December 31, 2011.
At June 30, 2012, covered loans decreased to $114.7 million from $135.4 million at December 31, 2011. The Bank's covered non-performing assets declined by $14.7 million, or 44 percent, during the same period.
Non-interest checking deposits increased 26 percent from year-end 2011 and now represent 39 percent of total deposits. The cost of all deposits, aided by the change in the mix of deposits, fell 44 percent to 36 basis points for the 2012 first quarter from 64 basis points for the same period last year. Core deposits now comprise 83 percent of all deposits.
Kum added, "Our industry continues to face a low interest rate environment and, now, a slowing economy. Despite these challenges, we have been able to increase loans and grow our non-interest bearing deposits. In addition, we continue to make progress on improving our efficiency. With the completion of our branch realignment initiative in June, we are expecting further improvement to our efficiency ratio in the second half of 2012."
At June 30, 2012, non-covered non-performing assets (the sum of non-covered loans past due 90 days and accruing, nonaccrual loans and foreclosed properties) improved to 1.50 percent of total assets, compared with 1.89 percent at December 31, 2011.
The allowance for loan losses was $18.3 million, or 1.76 percent of non-covered loans, at June 30, 2012, compared with $17.7 million, or 1.90 percent of non-covered loans, at December 31, 2011. Net loan charge-offs for the 2012 second quarter were $310,000, down from $860,000 for the 2011 second quarter. The provision for non-covered loan losses was $500,000 for both the 2012 and 2011 second quarters.
Shareholders' equity rose to $231.2 million at June 30, 2012 from $223.1 million at December 31, 2011. The Company's book value per common share increased to $7.02 at June 30, 2012 from $6.75 at December 31, 2011. Tangible book value per common share rose to $4.51 at June 30, 2012 from $4.19 at December 31, 2011.
At June 30, 2012, First California's preliminary Tier 1 leverage capital ratio was 9.99 percent versus 10.33 percent at the 2011 calendar year end, and the total risk-based capital ratio decreased to 16.93 percent from 17.32 percent at December 31, 2011. The Company's ratio of tangible common equity to tangible assets was 6.92 percent at June 30, 2012 and 7.05 percent at the end of 2011. Total assets were $1.98 billion at June 30, 2012, compared with $1.81 billion at December 31, 2011.
Kum concluded, "As we proceed into the second half of the year, our objectives are to continue to grow our low-cost deposit base, safely generate earnings assets and maintain focus on our expense base. The pending transaction with Premier Service Bank, expected to be completed in the second half of 2012, will provide immediate improvement to both our balance sheet and earnings. As always, we remain steadfast in enhancing the value of the First California franchise for our customer, employee and shareholder base."
This news release includes "non-GAAP financial measures" within the meaning of the Securities and Exchange Commission rules. Tangible common equity as a percentage of tangible assets is a non-GAAP financial measure. Tangible common equity to tangible assets represents tangible common equity, calculated as total shareholders' equity less preferred stock and related dividend and accretion of preferred stock discount, goodwill and intangible assets, net, divided by tangible assets which are total assets less goodwill and other intangible assets, net. Management believes that this measure is useful when comparing banks with preferred stock, due to CPP or SBLF funding, to banks without preferred stock on their balance sheet and for evaluating a company's capital levels. Core earnings represent income before taxes and exclude credit charges and other items such as gain on acquisitions, integration/conversion expense and securities transactions and are intended to represent recurring operating earnings. Operating expenses exclude amortization of intangible assets and loss on and expense of foreclosed property and other items such as integration/conversion expenses related to acquisitions and are intended to represent normalized, recurring expenses. This information is being provided in response to market participant interest in these financial metrics. This information is not intended to be considered in isolation or as a substitute for the relevant measures calculated in accordance with U.S. GAAP. The reconciliation of this non-GAAP financial measure to a GAAP financial measure is provided as an attachment to the financial tables.
First California will hold a conference call today, July 26, 2012 at 11 a.m. Pacific (2 p.m. Eastern) to discuss the Company's 2012 second quarter financial performance. Investment professionals are invited to participate in the live call by dialing 877-317-6789 (domestic), 866-605-3852 (Canada) or 412-317-6789 (international) and requesting the First California conference call. Other interested parties are invited to listen to the live call through a live, listen-only audio Internet broadcast at . Listeners are encouraged to visit the Web site at least 15 minutes prior to the start of the call to register, download and install any necessary audio software. For those who are not available to listen to the live broadcast, the call will be archived on the same Web site for one year. A telephonic replay of the call will be available one hour after the end of the conference through August 9, 2012 by dialing 877-344-7529 (domestic) or 412-317-0088 (international) and entering replay passcode 10016623.
First California Financial Group, Inc. (NASDAQ: FCAL) is the holding company of First California Bank. Founded in 1979 and with nearly $2 billion in assets, First California serves the comprehensive financial needs of small- and middle-sized businesses and high net worth individuals throughout Southern California. Led by an experienced team of bankers, First California is committed to providing the best client service available in its markets, offering a full line of quality commercial banking products through 15 full-service branch offices in Los Angeles, Orange, Riverside, San Bernardino, San Diego, San Luis Obispo and Ventura counties. The holding company's website can be accessed at . For additional information on First California Bank's products and services, visit .
This press release contains certain forward-looking information about First California that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, and include statements related to the maintenance of First California's asset quality and capital position, the Company's ability to enhance efficiencies and manage costs and the expected continued progress in consolidating operations and the benefits of those activities, the monitoring of and management of risks in First California's loan portfolio, the adequacy of sources of liquidity to support First California's operations and strategic plans, the monitoring of and response to changing market conditions, and the status of the economy in the Southern California communities served by First California. Such statements involve inherent risks and uncertainties, many of which are difficult to predict and are generally beyond the control of First California. First California cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. Risks and uncertainties include, but are not limited to, revenues are lower than expected, credit quality deterioration which could cause an increase in the provision for credit losses, First California's ability to complete future acquisitions, successfully integrate such acquired entities, or achieve expected beneficial synergies and/or operating efficiencies within expected time-frames or at all, changes in consumer spending, borrowing and savings habits, technological changes, the cost of additional capital is more than expected, a change in the interest rate environment reduces interest margins, asset/liability repricing risks and liquidity risks, general economic conditions, particularly those affecting real estate values, either nationally or in the market areas in which First California does or anticipates doing business are less favorable than expected, a slowdown in construction activity, volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of First California to retain customers, changes in the bank regulatory environment, demographic changes, demand for the products or services of First California as well as their ability to attract and retain qualified people, competition with other banks and financial institutions, First California's level of small business lending, and other factors. If any of these risks or uncertainties materializes or if any of the assumptions underlying such forward-looking statements proves to be incorrect, First California's results could differ materially from those expressed in, or implied or projected by such forward-looking statements. First California assumes no obligation to update such forward-looking statements. For a more complete discussion of risks and uncertainties, investors and security holders are urged to read the section titled "Risk Factors" in First California's Annual Report on Form 10-K and any other reports filed by it with the Securities and Exchange Commission ("SEC"). The documents filed by First California with the SEC may be obtained at the SEC's website at . These documents may also be obtained free of charge from First California by directing a request to: First California Financial Group, Inc., 3027 Townsgate Road, Suite 300, Westlake Village, CA 91361. Attention: Investor Relations. Telephone (805) 322-9655.
For further Information:
At the Company:
Ron Santarosa
805-322-9333
At PondelWilkinson:
Robert Jaffe
310-279-5969
Corporate Headquarters Address:
3027 Townsgate Road, Suite 300
Westlake Village, CA 91361
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Datum: 26.07.2012 - 12:00 Uhr
Sprache: Deutsch
News-ID 168941
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WESTLAKE VILLAGE, CA
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