Financial highlights

• Total assets reached $680 million at March 31, 2015, up 8.6% from $626 million at December 31, 2014, and up 40.4% from $484 million a year ago at March 31, 2014.
• Net Loans were $553 million at March 31 2015, an increase of 9.8% from $504 million at December 31, 2014 and an increase of 63.5% from $338 million at March 31, 2014.
• Total deposits were $587 million at March 31, 2015, an increase of 9.6% from $536 million at December 31, 2014 and an increase of 36.2% from $431 million at March 31, 2014.
• $296,000 non-performing assets at March 31, 2015, and no non-performing assets at December 31, 2014.
• Common Equity Tier 1, Tier 1 Risk-Based Capital and total Risk-Based Ratios at 9.9%, 9.9% and 11.2%, compared to the well-capitalized requirements of 6.5%, 8% and 10%, respectively.

CERRITOS, Calif.--(BUSINESS WIRE)-- First Choice Bank, the “Bank” (OTCQB: FCBK), announced earnings for the first quarter of 2015 of $1 million.

Capital ratios remained strong at the quarter-end, with Tier 1 risk-based capital and total risk-based ratios at 9.9% and 11.2%, comparing favorably to the well capitalized requirements of 8% and 10%, respectively.

Loans grew in the first quarter to $562.1 million. In order to accommodate the increase in the loan portfolio, the Bank provided $0.591 million to the Allowance for Loan and Lease Losses (the “ALLL”) in the first quarter. At the quarter end, the ALLL stood at $9.1 million, or 1.61% of total loans. When combined with the amount of the discount on certain loans purchased in 2012, the ALLL and that discount amounted to 1.64% of the Bank’s total loans.

Earnings remained strong at just over $1 million for the quarter, the sixth quarter in a row where the Bank earned over $1 million.

The 30 days past due loans were $0.294 million, representing 0.05% of the total loan portfolio at the end of the quarter. There was one non-accrual loan in the amount of $0.296 million, there were no Troubled Debt Restructured loans and there was no Other Real Estate Owned.

The Bank announced a 4% stock dividend in the quarter, payable on May 6, 2015 to shareholders of record on April 15, 2015.

At the quarter end, total assets were $680.3 million, an 8.6% increase over December 31, 2014, and a 40.4% increase over the same quarter in 2014; while total deposits were $587.4 million, a 9.6% increase over December 31, 2014, and a 36.2% increase over the same quarter in 2014. In addition, at the quarter end, total net loans were $552.8 million, a 9.8% increase over December 31, 2014, and a 63.5% increase over the same quarter in 2014. Total Capital at the quarter end was $58.0 million, a 3.1% increase over December 31, 2014, and a 34.3% increase over the same quarter in 2014. The Bank’s tangible book value per share was $12.61 at the quarter end, but $12.13 per share after giving effect to the 4% stock dividend effective as of April 15, 2015.

The Bank transferred $16.0 million of its investment portfolio to Held-to-Maturity status, with the total investment portfolio at quarter end at $40.8 million, which combined with cash and due from Banks of $72.6 million, provided total Liquidity of $113.4 million.

Income for the quarter was generated from Net Interest Income of $5.6 million, combined with Non-Interest Income of $1.0 million. Gain on the sale of loans, primarily the guaranteed portions of SBA loans, accounted for $0.7 million of the Non-Interest Income. Non-interest expense in the quarter was $4.3 million. The Net Interest Margin for the quarter and the year stood at 3.62%.

Selected Financial Highlights for the quarter ending March 31, 2015:

Net after Tax Income of $1.0 million.
Pre-Tax, Pre-Provision Income of $2.3 million.
Return on average equity annualized at 7.18%.
Allowance for Loan and Lease Losses at 1.61% of total loans.
Earnings Per Share annualized at $0.90 (basic) and $0.88 (diluted), respectively, and following adjustment for the 4% stock dividend announced in the quarter at $0.86 (basic) and $0.84 (diluted).
Book Value and Tangible Book Value Per Share at $12.57 and $12.61 respectively, and following adjustment for the 4% stock dividend announced in the quarter at Book Value and Tangible Book Value Per Share at $12.09 and $12.13, respectively.
Common Equity Tier 1, Tier 1 Risk-Based Capital and total Risk-Based Ratios at 9.9%, 9.9% and 11.2%, above 6.5%, 8% and 10%, respectively; Tier 1 Leverage Ratio at 9.2%, compares very favorably to 5.00%, which is the minimum required for a bank to be deemed “Well Capitalized” by the FDIC.

ABOUT FIRST CHOICE BANK

First Choice Bank, headquartered in Cerritos, California, is a community focused financial institution, serving diverse consumers and commercial clients and specializing in loans to small businesses, Commercial and Industrial (C&I) loans, and commercial real estate loans with a niche in providing finance for the hospitality industry. The Bank is a Preferred Small Business Administration (SBA) Lender. The Bank recently started a private banking operation. Founded in 2005, First Choice Bank has quickly become a leading provider of financial services that enable our customers to grow, maintain strength, and reach unprecedented levels of success. We strive to surpass our clients’ expectations through our efficiency and professionalism and are committed to being “First in Speed, Service, and Solutions.” First Choice Bank stock is traded on the Over the Counter Bulletin Board (OTCBB); our Ticker Symbol is FCBK.

The Bank’s web site is www.FirstChoiceBankCA.com.

Forward-Looking Statements

Except for the historical information in this news release, the matters described herein contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are subject to risks and uncertainties that could cause actual results to differ materially. Such risks and uncertainties include: the credit risks of lending activities, including changes in the level and trend of loan delinquencies and charge-offs, results of examinations by our banking regulators, our ability to maintain adequate levels of capital and liquidity, our ability to manage loan delinquency rates, our ability to price deposits to retain existing customers and achieve low-cost deposit growth, manage expenses and lower the efficiency ratio, expand or maintain the net interest margin, mitigate interest rate risk for changes in the interest rate environment, competitive pressures in the banking industry, access to available sources of credit to manage liquidity, the local and national economic environment, and other risks and uncertainties.Accordingly, undue reliance should not be placed on forward-looking statements. These forward-looking statements speak only as of the date of this release. First Choice Bank undertakes no obligation to update publicly any forward-looking statements to reflect new information, events or circumstances after the date of this release or to reflect the occurrence of unanticipated events. Investors are encouraged to read the First Choice Bank annual reports which are available on our website.

First Choice Bank
Robert M. Franko, 562-345-9241
President & Chief Executive Officer
or
Yvonne L. Chen, 562-345-9244
Chief Financial Officer

Source: First Choice Bank