Financial highlights

• Total assets reached $626 million at December 31, 2014, up 1.5% from $617 million at September 30, 2014, and up 42.4% from $440 million a year ago.
• Net Loans were $504 million at December 31 2014, an increase of 12.5% from $448 million at September 30, 2014 and an increase of 46.8% from $343 million at December 31, 2013.
• Total deposits were $536 million at December 31, 2014, a decrease of 3.9% from $558 million at September 30, 2014 and an increase of 41.2% from $380 million at December 31, 2013.
• No non-performing assets at December 31, 2014 and at September 30, 2014.
• Tier 1 Risk-Based Capital and total Risk-Based Ratios at 9.97% and 11.23%, compared to the well-capitalized requirements of 6% and 10%, respectively.

CERRITOS, Calif.--(BUSINESS WIRE)-- First Choice Bank, the “Bank” (OTCBB: FCBK), continued its strong earnings into the fourth quarter of 2014, with total income for the year of more than $4 million, and year over year growth exceeding 40% in total assets, gross loans and deposits. The Bank also raised $4.7 million in fresh equity Capital during the fourth quarter through a private placement, which brought the total equity capital raised in 2014 to approximately $18.6 million.

Capital ratios remained strong at the quarter-end, with Tier 1 risk-based capital and total risk-based ratios at 9.97% and 11.23%, comparing favorably to the well capitalized requirements of 6% and 10%, respectively.

Loan growth throughout 2014 was broadly based in all areas from construction to commercial real estate, private banking and commercial & industrial loans. In order to accommodate the increase in the loan portfolio, the Bank provided $0.95 million to the Allowance for Loan and Lease Losses (the “ALLL”) in the fourth quarter, and a total provision of $2.75 million for all of 2014. At the quarter end, the ALLL stood at $8.50 million, or 1.66% of total loans. When combined with the amount of the discount on certain loans purchased in 2012, the ALLL and that discount amounted to 1.69% of the Bank’s total loans.

Earnings remained strong at just over $1 million for the quarter, the fifth quarter in a row where the Bank earned over $1 million, for year to date income of $4.07 million. Year-to-date earnings for 2014 at $4.07 million compared quite favorably to $2.68 million in year 2013, a 51.77% year-over-year increase in net income.

The 30 days past due loans were $2.07 million, representing 0.40% of the total loan portfolio at the end of the quarter. There were no non-accrual loans, no Troubled Debt Restructured loans and no Other Real Estate Owned.

The Bank has now had 21 consecutive quarters of profitability. In May 2014, the Bank paid a cash dividend of $0.20 per share.

At the quarter end, total assets were $626.47 million, a 42.4% increase over December 31, 2013, and a 1.5% increase over $617.32 million at September 30, 2014; while total deposits were $536.12 million, a 41.2% increase over December 31, 2013, and a 3.9% decrease from $557.60 million at September 30, 2014. In addition, as of December 31, 2014, total loans were $512.21 million, a 46.8% increase over December 31, 2013, and a 12.5% increase over $455.57 million at September 30, 2014, while total Capital was $56.25 million, a 73.2% increase over December 31, 2013, and a 12.8% increase over $49.85 million at September 30, 2014. The Bank’s book value per share was $12.37 at December 31, 2014, a $1.61 increase over December 31, 2013, and a $0.43 increase over $$11.94 at September 30, 2014.

The Bank’s investment securities portfolio decreased by $14.96 million from December 31, 2013, to $41.10 million. Cash and due from Banks stood at $69.00 million, so that total Liquidity remained strong. Loan demand in the fourth quarter and throughout 2014 was robust.

Income for the quarter was generated from Net Interest Income of $5.64 million, combined with Non-Interest Income of $0.98 million. Gain on the sale of loans, primarily the guaranteed portions of SBA loans, accounted for $0.74 million of the Non-Interest Income. Non-interest expense in the quarter was $3.94 million. The Net Interest Margin for the year stood at 3.61%. The efficiency ratio for the quarter was 58.5% and for the year was 57.8%.

Peter H. Hui, Chairman of the Board stated, “Our Board is very proud of the Bank’s performance in 2014. We are excited to be a part of the growth of this vibrant Southern California market.”

Robert M. Franko, President and Chief Executive Officer stated, “I am humbled by the way our Team has come together this year to produce a very strong financial performance for our shareholders. I am also pleased that every one of our employees is a shareholder. Each of us comes to work in the morning as an owner and proud of it.”

Selected Financial Highlights for the year ending December 31, 2014:

• Net after Tax Income of $4.07 million
• Pre-Tax, Pre-Provision Income of $9.72 million
• Return on average equity at 8.99%
• Allowance for Loan and Lease Losses at 1.66% of total loans
• Earnings Per Share at $1.01 (basic) and $1.00 (diluted), respectively
• Book Value and Tangible Book Value Per Share at $12.37 and $12.07, respectively
• Tier 1 Risk-Based Capital and total Risk-Based Ratios at 9.97% and 11.23%, above 6% and 10%, respectively; Tier 1 Leverage Ratio at 8.95%, 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, 310-488-2310
President & Chief Executive Officer
or
Yvonne L. Chen, 562-345-9244
Chief Financial officer

Source: First Choice Bank