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Fri, June 19, 2009 First California Financial Group, Inc.: First California Revises 2009 First Quarter Financial Results
WESTLAKE VILLAGE, CA--(Marketwire - June 19, 2009) - First California Financial Group, Inc. (
Summary of Revisions to 2009 First Quarter Financial Results:
-- The company added $4.0 million to its 2009 first quarter loan loss provision for a total provision of $5.1 million for the three-month period. -- Net charge-offs increased by $1.6 million, totaling $1.8 million for the three months ended March 31, 2009; this resulted in a $1.4 million reduction in nonaccrual loans to $8.4 million as of March 31, 2009. -- These actions boosted First California's allowance for loan losses to 1.26% of total loans at March 31, 2009 from 1.00% as previously reported. -- Nonaccrual loans and loans past due 90 days and accruing declined to $8.4 million from $9.9 million; as a percentage of loans outstanding, nonaccrual loans and loans past due 90 days narrowed to 0.9% from 1.1%. -- Foreclosed property -- real and personal -- remained unchanged at $1.1 million. -- As a result of the additional provision, First California incurred a net loss of $1.9 million, or $0.18 per common share, for the 2009 first quarter, versus previously reported net income of $413,000, equal to $0.02 per diluted share. -- Notwithstanding the revisions, First California remains well capitalized; as of March 31, 2009, the total risk-based capital ratio was 11.56% for the bank and 12.73% for the holding company.
"The revisions to the company's financial results were made to recognize the ongoing challenges of the broader economy and its impact on our customer base," said C. G. Kum, president and chief executive officer. "The strengthened allowance for loan losses combined with the recent addition of a highly qualified chief credit officer have positioned us better to navigate through the challenging economy."
Revised financial results, including a complete balance sheet and income statement, along with a reconciliation of the revisions made to the company's 2009 first quarter results, are attached herewith. As the company's consolidated financial statements for the first three months of 2009 are now complete, management currently anticipates that its quarterly report on Form 10-Q for the period will be filed soon.
Outlook for 2009 Second Quarter Financial Results:
-- Management anticipates recording a provision for loan losses of approximately $1.0 million. -- Net charge-offs are expected to be approximately $500,000. -- One property that served as collateral for a $5.7 million loan on non- accrual status as of March 31, 2009 was foreclosed upon without the need for charge-off and is now recorded as other real estate owned; other real estate owned at June 30 is expected to consist of two properties at a total value of $6.8 million. -- One real estate construction loan in the amount of $22 million migrated to non-accrual status during the 2009 second quarter; management noted that the project is complete and represents the largest loan in the company's construction portfolio; no charge-off was taken on this loan. -- Nonaccrual loans and loans past due 90 days and accruing are expected to reach $28 million at the end of the quarter, equal to approximately 3% of total loans.
Kum concluded: "The increased levels of provisioning and charge-offs in the first quarter of 2009 and as anticipated in the guidance for the second quarter demonstrate our commitment to maintaining a strong balance sheet. Notwithstanding the challenges of the current economy, we are pleased with our strong capital position and the relative health of our loan portfolio."
This outlook represents management's best estimates based on a number of assumptions that are believed to be reasonable given the most current information available. Many risks and uncertainties may cause actual results to differ materially from the company's guidance. Management further noted that this outlook is not an indication of a change in practice with regards to providing guidance in future periods.
About First California
First California Financial Group, Inc. (
Forward-Looking Information
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 timing of the company's filing its Form 10-Q for the period ended March 31, 2009, the company's outlook for its 2009 second quarter, whether the company has taken the appropriate actions to fully address current trends in the loan portfolio, the asset quality trends in the second half of 2009 and the company's expectation to be profitable for the full year of 2009. 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, including the possibility of a U.S. recession, a slowdown in construction activity, recent volatility in the credit or equity markets and its effect on the general economy, loan delinquency rates, the ability of First California and First California Bank to retain customers, demographic changes, demand for the products or services of First California and First California Bank, as well as their ability to attract and retain qualified people, competition with other banks and financial institutions, 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 [ www.sec.gov ]. 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.
(Financial Tables Follow)
First California Financial Group Unaudited Quarterly Financial Results (in thousands except for share data and ratios) As of or for the quarter ended 31-Mar-09 31-Dec-08 30-Sep-08 30-Jun-08 31-Mar-08 ---------- ---------- ---------- ---------- ---------- Income statement summary Net interest income $ 10,670 $ 9,836 $ 10,348 $ 10,335 $ 10,263 Service charges, fees & other income 1,235 1,146 1,043 903 818 Loan commissions & sales 9 69 143 185 54 Operating expenses 10,401 9,398 8,041 8,460 8,016 Provision for loan losses 5,069 200 300 200 450 Amortization of intangible assets 376 298 298 297 298 Gain (loss) on sale of securities 671 (9) (13) - - Gain (loss) on derivatives - 186 (1) (367) 1,225 ---------- ---------- ---------- ---------- ---------- Income (loss) before tax (3,261) 1,332 2,881 2,099 3,596 Tax expense (benefit) (1,383) 200 1,120 815 1,407 ---------- ---------- ---------- ---------- ---------- Net income (loss) $ (1,878) $ 1,132 $ 1,761 $ 1,284 $ 2,189 ========== ========== ========== ========== ========== Balance sheet data Total assets $1,458,841 $1,183,401 $1,125,294 $1,125,096 $1,134,507 Shareholders' equity 158,181 158,923 136,680 136,229 138,256 Common shareholders' equity 134,355 133,553 135,680 135,229 137,256 Earning assets 1,285,060 1,057,198 994,212 991,740 1,005,653 Loans 897,723 787,920 783,496 773,544 754,419 Loans - held for sale 31,309 31,401 - - 23,927 Securities 271,743 202,462 209,736 217,896 227,032 Federal funds sold & other 84,285 35,415 980 300 275 Interest-bearing funds 1,005,012 822,285 784,452 790,202 794,225 Interest- bearing deposits 815,799 628,584 563,244 566,664 540,919 Borrowings 162,500 167,000 194,520 196,863 226,644 Junior subordinated debt 26,713 26,701 26,688 26,675 26,662 Goodwill and other intangibles 73,545 58,551 58,848 59,146 59,444 Deposits 1,103,578 817,595 757,765 754,115 729,819 Asset quality data and ratios Loans past due 30 to 89 days and accruing $ 6,395 $ 2,644 $ 6,560 $ 1,502 $ 4,646 Loans past due 90 days and accruing 65 429 947 1,081 1,480 Nonaccruing loans 8,380 8,475 8,636 6,627 5,720 ---------- ---------- ---------- ---------- ---------- Total past due and nonaccrual loans $ 14,840 $ 11,548 $ 16,143 $ 9,210 $ 11,846 ========== ========== ========== ========== ========== Repossessed personal property $ 76 $ 107 $ 154 $ 154 $ 161 Other real estate owned 993 220 120 - - ---------- ---------- ---------- ---------- ---------- Total foreclosed property $ 1,069 $ 327 $ 274 $ 154 $ 161 ========== ========== ========== ========== ========== Net loan charge-offs $ 1,842 $ 151 $ 194 $ 15 $ 570 Allowance for loan losses $ 11,275 $ 8,048 $ 7,999 $ 7,894 $ 7,708 Allowance for loan losses to loans 1.26% 1.02% 1.02% 1.02% 1.02% Common shareholder data Basic earnings (loss) per common share $ (0.18) $ 0.10 $ 0.15 $ 0.11 $ 0.19 Diluted earnings (loss) per common share $ (0.18) $ 0.10 $ 0.15 $ 0.11 $ 0.19 Book value per common share $ 11.55 $ 11.65 $ 11.84 $ 11.78 $ 11.95 Tangible book value per common share $ 5.23 $ 6.54 $ 6.71 $ 6.62 $ 6.77 Shares outstanding 11,633,288 11,462,964 11,456,464 11,477,086 11,485,220 Basic weighted average shares 11,527,628 11,436,152 11,466,375 11,480,271 11,484,749 Diluted weighted average shares 11,813,629 11,727,614 11,744,823 11,756,817 11,757,532 Selected ratios Return on average assets -0.55% 0.39% 0.63% 0.46% 0.80% Return on average equity -4.76% 3.22% 5.14% 3.72% 6.47% Equity to assets 10.84% 13.43% 12.15% 12.11% 12.19% Tangible equity to tangible assets 6.11% 8.92% 7.29% 7.23% 7.33% Tangible common equity to tangible assets 4.39% 6.67% 7.20% 7.14% 7.24% Efficiency ratio 87.30% 83.63% 69.72% 76.52% 64.85% Net interest margin (tax equivalent) 3.60% 3.90% 4.17% 4.17% 4.14% Total risk-based capital ratio: First California Bank 11.56% 12.27% 12.89% 12.59% 12.15% First California Financial Group, Inc. 12.73% 16.62% 14.01% 13.81% 13.46% First California Financial Group Unaudited Quarterly Financial Results (in thousands except for share data Originally and ratios) Reported Final As of or for the quarter ended 31-Mar-09 Adjustments 31-Mar-09 ----------- ----------- ----------- Income statement summary Net interest income $ 10,670 $ - $ 10,670 Service charges, fees & other income 1,235 - 1,235 Loan commissions & sales 9 - 9 Operating expenses 10,401 - 10,401 Provision for loan losses 1,115 3,954 5,069 Amortization of intangible assets 376 - 376 Gain (loss) on sale of securities 671 - 671 Gain (loss) on derivatives - - - ----------- ----------- ----------- Income (loss) before tax 693 3,954 (3,261) Tax expense (benefit) 280 (1,663) (1,383) ----------- ----------- ----------- Net income (loss) $ 413 $ 2,291 $ (1,878) =========== =========== =========== Balance sheet data Total assets $ 1,466,661 $ (7,820) $ 1,458,841 Shareholders' equity 160,472 (2,291) 158,181 Common shareholders' equity 136,646 (2,291) 134,355 Earning assets 1,286,713 (1,653) 1,285,060 Loans 899,376 (1,653) 897,723 Loans - held for sale 31,309 - 31,309 Securities 271,743 - 271,743 Federal funds sold & other 84,285 - 84,285 Interest-bearing funds 1,005,012 - 1,005,012 Interest-bearing deposits 815,799 - 815,799 Borrowings 162,500 - 162,500 Junior subordinated debt 26,713 - 26,713 Goodwill and other intangibles 73,545 - 73,545 Deposits 1,103,578 - 1,103,578 Asset quality data and ratios Loans past due 30 to 89 days and accruing $ 6,395 $ - $ 6,395 Loans past due 90 days and accruing 65 - 65 Nonaccruing loans 9,791 (1,411) 8,380 ----------- ----------- ----------- Total past due and nonaccrual loans $ 16,251 $ (1,411) $ 14,840 =========== =========== =========== Repossessed personal property $ 76 $ - $ 76 Other real estate owned 993 - 993 ----------- ----------- ----------- Total foreclosed property $ 1,069 $ - $ 1,069 =========== =========== =========== Net loan charge-offs $ 189 $ 1,653 $ 1,842 Allowance for loan losses $ 8,974 $ 2,301 $ 11,275 Allowance for loan losses to loans 1.00% 0.26% 1.26% Common shareholder data Basic earnings (loss) per common share $ 0.02 $ (0.20) $ (0.18) Diluted earnings (loss) per common share $ 0.02 $ (0.20) $ (0.18) Book value per common share $ 11.75 $ (0.20) $ 11.55 Tangible book value per common share $ 5.42 $ (0.19) $ 5.23 Shares outstanding 11,633,288 - 11,633,288 Basic weighted average shares 11,527,628 - 11,527,628 Diluted weighted average shares 11,813,629 - 11,813,629 Selected ratios Return on average assets 0.12% -0.67% -0.55% Return on average equity 1.05% -5.81% -4.76% Equity to assets 10.94% -0.13% 10.81% Tangible equity to tangible assets 6.24% -0.15% 6.09% Tangible common equity to tangible assets 4.53% -0.15% 4.38% Efficiency ratio 87.30% 0.00% 87.30% Net interest margin (tax equivalent) 3.68% -0.08% 3.60% Total risk-based capital ratio: First California Bank 11.79% -0.23% 11.56% First California Financial Group, Inc. 13.84% -1.11% 12.73% First California Financial Group Unaudited Quarterly Financial Results For the Quarter Ended March 31, ------------------ 2009 2008 -------- --------- (in thousands, except per share data) Interest income: Interest and fees on loans $ 12,427 $ 13,823 Interest on securities 3,597 3,070 Interest on federal funds sold and interest bearing deposits 55 12 -------- --------- Total interest income 16,079 16,905 -------- --------- Interest expense: Interest on deposits 3,367 4,249 Interest on borrowings 1,555 1,954 Interest on junior subordinated debentures 487 439 -------- --------- Total interest expense 5,409 6,642 -------- --------- Net interest income before provision for loan losses 10,670 10,263 Provision for loan losses 5,069 450 -------- --------- Net interest income after provision for loan losses 5,601 9,813 -------- --------- Noninterest income: Service charges on deposit accounts 1,050 517 Loan sales and commissions 9 54 Net gain on sale of securities 671 - Net gain on derivatives - 1,225 Other income 185 362 -------- --------- Total noninterest income 1,915 2,158 -------- --------- Noninterest expense: Salaries and employee benefits 5,658 4,567 Premises and equipment 1,533 1,128 Data processing 471 387 Legal, audit, and other professional services 620 368 Printing, stationary, and supplies 192 151 Telephone 263 138 Directors' fees 115 96 Advertising, marketing and business development 456 259 Postage 55 62 Insurance and assessments 309 297 Amortization of intangible assets 376 298 Other expenses 729 624 -------- --------- Total noninterest expense 10,777 8,375 -------- --------- Income (loss) before provision for income taxes (3,261) 3,596 Provision (benefit) for income taxes (1,383) 1,407 -------- --------- Net income (loss) $ (1,878) $ 2,189 ======== ========= Earnings (loss) per share: Basic $ (0.18) $ 0.19 Diluted $ (0.18) $ 0.19 First California Financial Group Unaudited Quarterly Financial Results March 31, December 31, 2009 2008 (in thousands) ----------- ----------- Cash and due from banks $ 48,773 $ 13,712 Federal funds sold 84,285 35,415 Securities available-for-sale, at fair value 271,743 202,462 Loans held for sale 31,309 31,401 Loans, net 886,448 780,373 Premises and equipment, net 20,583 20,693 Goodwill 60,705 50,098 Other intangibles, net 12,840 8,452 Deferred tax assets, net 3,596 2,572 Cash surrender value of life insurance 11,461 11,355 Accrued interest receivable and other assets 27,098 21,512 ----------- ----------- Total assets $ 1,458,841 $ 1,178,045 =========== =========== Non-interest checking $ 287,779 $ 189,011 Interest checking 81,670 22,577 Money market and savings 254,583 198,606 Certificates of deposit, under $100,000 207,451 191,888 Certificates of deposit, $100,000 and over 272,095 215,513 ----------- ----------- Total deposits 1,103,578 817,595 Securities sold under agreements to repurchase 45,000 45,000 Federal Home Loan Bank advances 117,500 122,000 Junior subordinated debentures 26,713 26,701 Accrued interest payable and other liabilities 7,869 7,826 ----------- ----------- Total liabilities 1,300,660 1,019,122 Total shareholders' equity 158,181 158,923 ----------- ----------- Total liabilities and shareholders' equity $ 1,458,841 $ 1,178,045 =========== ===========
