SAN LUIS OBISPO, Calif., April 11, 2012 /PRNewswire/ -- Founders Community Bank, a wholly-owned subsidiary of Founders Bancorp (OTCBB:FBCP) today reported net income of $189 thousand for the quarter ended March 31, 2012, up 220 percent from $86 thousand for the quarter ended March 31, 2011.
"In the first quarter of 2012, Founders Community Bank delivered increased profitability along with growth of our core business including loans and deposits, particularly noninterest-bearing deposits which increased $7.0 million over March 31, 2011, and now represents 41.8 percent of our total deposits," said Chief Executive Officer Thomas J. Sherman.
"Credit quality for the first quarter of 2012 remained strong with no loans past due more than 30 days, and only one loan on non-accrual in an amount of $48 thousand which was fully covered by the guarantee of the U.S. Small Business Administration. Additionally, Other Real Estate Owned totaled $764 thousand at March 31, 2012, down from $1.7 million at March 31, 2011."
"Our core business franchise was enhanced by the addition in 2011 of $4.2 million in fresh capital under the U.S. Treasury's Small Business Lending Fund program, of which $3.8 million was down streamed to the Bank as Tier 1 capital. This additional capital has clearly positioned the Bank to support significant organic growth opportunities as we execute our strategic plan."
Additionally the Bank recently received Federal Deposit Insurance Corporation approval to proceed on the opening of a new full service branch at 310 Morro Bay Boulevard, Morro Bay, CA. This branch office will provide a full range of services including loan generation, deposit acceptance, internet banking, safe deposit boxes and an array of other financial services. In addition this office will be the first Founders branch to offer drive-up service to deposit customers. The anticipated opening of this branch is July 2012.
First Quarter 2012 Highlights
(at or for the quarter ended March 31, 2012, compared to March 31, 2011 unless otherwise noted)
- Net income grew by $103 thousand in the first quarter 2012 to $189 thousand or 220 percent over the same period in 2011.
- Net income before Provision for Income Tax Expense grew by $240 thousand in the first quarter 2012 to $326 thousand or 379 percent over the first quarter 2011.
- Total interest income increased to $1.4 million, up $134 thousand or 10 percent from first quarter 2011 due to organic loan growth.
- Net interest margin was 4.57 percent in the first quarter 2012 up from 4.28 percent in the first quarter 2011, due largely to the impact of steady loan yields and decreased cost of deposits.
- Total asset growth of $8 million or 7.4 percent from March 31, 2011.
- Total loans grew to $87 million, a $9 million or 11.6 percent increase from March 31, 2011.
- Continued strong loan quality with only one charged-off loan of $6 thousand and recoveries of $16 thousand in the first quarter of March 2012.
- Total deposits grew to $106 million, a $4 million or 3.9 percent increase from March 31, 2011.
- Noninterest bearing deposits increased to $44 million or 41.8 percent of total deposits at March 31, 2012. Noninterest bearing deposits grew $7 million or 18.8 percent from March 31, 2011.
- Cost of deposits declined to 0.26 percent versus 0.47 percent at March 31, 2011. Interest expense fell to $74 thousand for the first quarter 2012 versus $119 thousand in the first quarter of March 2011, a decline of 37.8 percent.
- Continued status as well-capitalized, the highest regulatory category.
About the Bank
Founders Community Bank opened for business on May 5, 2005 and on July 5, 2007 the Bank became a wholly-owned subsidiary of Founders Bancorp. In addition to the new Atascadero Small Business Lending Center at 6100 El Camino Real, the Bank has two San Luis Obispo locations: the Main Office is located at 237 Higuera Street while the Downtown Office is located at 863 Marsh Street. A new full service branch at 310 Morro Bay Boulevard, Morro Bay, CA is projected to open in July 2012. For additional information please review the Bank's website at www.fcbslo.com.
Founders Community Bank - Built on a foundation of success
Forward-Looking Statement Disclaimer –
This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to the Company's ability to sustain dividend payments, fluctuations in interest rates, monetary policy established by the Federal Reserve, inflation, government regulations, general economic conditions, and competition within the business areas in which the Company is conducting its operations, including the real estate market in California, the ability to recognize identified cost savings, and other factors beyond the Company's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.
Press Release Contact:
SOURCE Founders Community Bank