Founders Community Bank Announces Record Year

SAN LUIS OBISPO, Calif., Jan. 25, 2013 /PRNewswire/ -- Founders Community Bank, a wholly-owned subsidiary of Founders Bancorp (OTCBB:FBCP) today reported net income of $850 thousand for the year ended December 31, 2012, up 76.7 percent from $481 thousand for the year ended December 31, 2011.

"Founders Community Bank completed a profitable quarter and a very productive year by focusing on consistent growth in our core products of loans and deposits and improved service to our communities," said Chief Executive Officer Thomas J. Sherman.

"Total loans grew to $97.9 million, an increase of 13.4 percent while maintaining strong loan quality with no loans past due more than 30 days or on non-accrual. Furthermore, Other Real Estate Owned decreased to $751 thousand at December 31, 2012. In addition to the loan growth, the Bank also grew deposits to $120.0 million, an increase of 10.6 percent. The continued and consistent growth in both the loan portfolio and deposits is a testament to the dedication and expertise of our employees," commented Sherman.

During 2012 the Bank also expanded its physical locations by adding a new full service branch at 310 Morro Bay Boulevard, Morro Bay, CA. In coordination with the two San Luis Obispo branches and a loan production office in Atascadero, this branch offers loan generation, deposit acceptance, internet banking, safe deposit boxes and other financial services.

Fourth Quarter 2012 Highlights

(at or for the quarter ended December 31, 2012, compared to December 31, 2011 unless otherwise noted)

• Net income grew by $13 thousand in the fourth quarter 2012 to $236 thousand or 5.8 percent over the same quarter in 2011.
• Net income before provision for income tax expense grew by $353 thousand in the fourth quarter 2012 to $407 thousand or 653.7 percent over the fourth quarter 2011.
• Total interest income increased to $1.5 million, up $115 thousand or 8.1 percent from fourth quarter 2011 due to organic loan growth.
• Net interest margin was 4.81 percent for the year ended December 31, 2012 up from 4.45 percent for the year ended December 31, 2011, due largely to the impact of steady loan growth and decreased cost of deposits.
• Total asset grew to $135.7 million, an increase of $12.3 million or 10.0 percent from December 31, 2011.
• Total loans grew to $97.9 million, an $11.6 million or 13.4 percent increase from December 31, 2011.
• Continued strong loan quality with no charged-off loans and recoveries of $1 thousand in the fourth quarter of December 2012.
• Total deposits grew to $120.0 million, an $11.5 million or 10.6 percent increase from December 31, 2011.
• Noninterest bearing deposits increased to $55.1 million or 45.9 percent of total deposits at December 31, 2012. Noninterest bearing deposits grew $10.0 million or 22.0 percent from December 31, 2011.
• Cost of deposits declined to 0.43 percent for the year ending December 31, 2012 as compared to 0.67 percent for the year ending December 31, 2011. Interest expense fell to $62 thousand for the fourth quarter 2012 versus $92 thousand in the fourth quarter of December 2011, a decline of 32.6 percent.
• Continued status as well-capitalized, the highest regulatory category.

About the Bank

Headquartered in San Luis Obispo, CA, Founders Community Bank operates three full service branches and a loan production office. Founders Community Bank specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through on-line banking, telephone and ATMs. 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: Mandy Leastman

Phone: 805.547.2527

SOURCE Founders Community Bank