1st Centennial Bancorp reports $2.7 million 2Q loss
| Press Release | Source: 1st Centennial Bancorp |
1st Centennial Bancorp Announces Second Quarter Financial Results and Plans to Evaluate Capital Alternatives
Thursday August 7, 5:11 pm ET
REDLANDS, Calif.--(BUSINESS WIRE)--1st Centennial Bancorp (OTCBB: FCEN - News), parent holding company of 1st Centennial Bank (the "Bank"), today announced second quarter operating results. The Company reported a net loss for the quarter ended June 30, 2008 of ($2.778) million or ($0.57) diluted loss per share, compared to a net loss of ($1.455) million or ($0.29) diluted loss per share for the first quarter of 2008.
Both the Company and Bank remain "well capitalized" as defined by applicable regulatory definitions. As of June 30, 2008, the Bank's Tier 1 capital to average assets ratio ("Leverage Capital Ratio") was 7.38%, the Tier 1 risk-based capital ratio was 9.35%, and the total risk-based capital ratio was 10.61%. On a consolidated basis, as of June 30, 2008, the Company's Tier 1 capital to average assets ratio was 7.60%, the Tier 1 risk-based capital ratio was 9.61%, and the total risk-based capital ratio was 10.87%. Under the regulatory definitions, in order to be considered "well capitalized," a financial institution must have a Leverage Capital Ratio of at least 5%, Tier 1 risk-based capital ratio of at least 6% and a total risk-based capital ratio of at least 10%. To be adequately capitalized, those same ratios must be at least 4%, 4% and 8%, respectively.
Patrick J. Meyer, Chairman of the Board, commented, "The financial services industry continues to experience a very challenging economic environment, especially in the Inland Empire and other parts of Southern California. These are clearly unprecedented times for our nation, our region and our company, as reflected in the results of operations that so many other financial institutions are reporting. As the financial services industry works through the excess housing inventory in the Inland Empire and surrounding areas, we are strategically positioning ourselves to take advantage of the economic recovery that will occur once the housing industry returns to normal. Here are some specific steps we have taken so far:
- We are completing our review of our entire loan portfolio, with specific emphasis on our construction loan portfolio;
- We have significantly curtailed our construction lending and will be concentrating on our commercial lending product line;
- We are diligently working on plans to resolve and/or restructure our nonperforming assets in an effective and efficient manner in order to maximize shareholder value and not 'give away' these assets to others at low current market prices."
Meyer continued, "While both the Company and the Bank continue to remain well capitalized under applicable regulatory definitions, we believe that further strengthening of our capital position is important to properly position the Company for future growth. This additional capital will help support the balance sheet during this difficult credit environment and provide operational flexibility to allow our footprint in high-growth and populous markets and favorable core deposit franchise to continue to create value for shareholders.
Accordingly, our Board of Directors is evaluating capital alternatives in order to further strengthen our capital position, and we have engaged the investment banking firm D.A. Davidson & Company as our financial advisor with respect to evaluating capital and other strategic alternatives to enhance shareholder value. We have always valued our customer and shareholder relationships and will continue to do so in the future in order to remain a 'Nice Place to Raise Your Business.'"
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