FCEN and the markets..
A poster has asked me to defend from it's last PR Release... I have highlighted some very important items from this release,, The return on STKholders equity and assets has jumped well above the normal rates of returs within the calif markets.. This is due the the type of loans that FCEN has on the books.. About one half are construction loan commitments made in the past 18 months and are for inital construction and not in the somewhat toppy housing markets for mortages...Thier gains from income from non interest items has declined as the bank has not participated in conduit or sold loans off creating profits from this source.. As FCEN also has almost 110 mil in non interest deposits this speaks well for the offsetting compensating balances required to do business with the bank..Salaries and offsetting expenses have come down and the bank seems able to contain any costs due to the cost of money in rising rate enviorments... while the bank has made earnings postings this reporting period of 50% + I still feel that the normal for this bank should be over 40% for the rest of the year... As it also has a religious division some of it's deposits are less likely to leave for a 1/4 point higher rate some where else.. I own 3095 shares at a cost aver below $30.00 and have actually bought more since the earnings release... hank
1st Centennial Bancorp Announces Record Earningsel
1st Centennial Bancorp (OTCBB:FCEN), parent holding company of 1st Centennial Bank, today announced second quarter operating results. The company reported earnings for the quarter ended June 30, 2006, of $1.8 million, compared to earnings of $1.2 million for the second quarter 2005, representing a 50%, or $618,000 increase. Basic earnings per share(1) were 58 cents for the current quarter compared to 39 cents for the same period last year. Year to date income for 2006 was $3.6 million compared to $2.2 million for 2005, an increase of $1.4 million, or 59%. Year to date basic earnings per share(1) were $1.12 compared to $0.72 for the same period last year.
The Return on Average Equity and Return on Average Assets as of June 30, 2006, were 20.03% and 1.54%, respectively, compared to 15.56% and 1.16% for the same period in 2005, respectively. The increases in Return on Average Equity and Return on Average Assets are attributed to our record earnings, which resulted primarily from an increase in average earning assets.
Total net loans increased $29.6 million, or 8% from $381.2 million at Dec. 31, 2005, to $410.8 million at June 30, 2006. Deposits, at $431.9 million on June 30, 2006, increased $30.6 million, or 8% from $401.3 million at Dec. 31, 2005. Total assets reached a record high of $491 million at June 30, 2006, up 8%, or $35.0 million, from $456 million at Dec. 31, 2005. The growth in assets, loans, and deposits was due to the continued success of our business development efforts in and around the marketplaces we serve.
Thomas E. Vessey, president and chief executive officer, stated: "Management is again proud to report the most profitable quarter in the company's history. We will stay the course of our Strategic Plan for targeted results for the balance of 2006."
Patrick J. Meyer, chairman of the board, stated: "We are pleased to continue our record performance during the second quarter of 2006. We are grateful for the continued trust and confidence shown to us by our shareholders and customers, and thank our employees for their commitment to excellent customer service."
1st Centennial Bank operates its main office and construction/real estate loan production offices in downtown Redlands; its Religious Lending Group and its SBA/Commercial Lending Group and a full-service branch in Brea, Calif.; its Homeowners Association and a full-service branch in Escondido; and full-service branches in Palm Desert, Irwindale and Temecula, Calif.
The statements contained in this release that are not historical facts are forward-looking statements based on management's current expectations and beliefs concerning future developments and their potential effects on the company. Readers are cautioned not to unduly rely on forward-looking statements. Actual results may differ from those projected. These forward-looking statements involve risks and uncertainties including but not limited to the health of the national and California economies, the company's ability to implement its strategy and expand its lending operations, the company's ability to attract and retain skilled employees, customers' service expectations, the company's ability to successfully deploy new technology and gain efficiencies therefrom, the success of branch expansion, changes in interest rates, loan portfolio performance, and other factors detailed in the company's SEC filings.
Additional information is available on the Internet at www.1stcent.com or by contacting Beth Sanders, executive vice president and chief financial officer, at bsanders@1stcent.com.
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1ST CENTENNIAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CONDITION
June 30, 2006 and Dec. 31, 2005
Dollar amounts in thousands 2006 2005
(Unaudited)
ASSETS
Cash and due from banks $11,124 $16,862
Federal funds sold 22,730 21,505
Total cash and cash equivalents 33,854 38,367
Interest-bearing deposits in financial
institutions 2,497 2,334
Investment securities, available for sale 17,274 12,208
Stock investments restricted, at cost 1,650 1,620
Loans, net of allowance for loan losses of
$5,845 and $5,376 410,751 381,153
Accrued interest receivable 2,495 2,425
Premises and equipment, net 3,391 3,652
Goodwill 4,180 4,180
Cash surrender value of life insurance 11,400 6,735
Other assets 3,737 3,518
Total assets $491,229 $456,192
LIABILITIES
Deposits:
Noninterest-bearing demand deposits $109,761 $106,121
Interest-bearing deposits 322,183 295,154
Total deposits 431,944 401,275
Accrued interest payable 192 170
Other liabilities 3,209 3,020
Subordinated notes payable to subsidiary
trusts 18,306 18,306
Total liabilities 453,651 422,771
SHAREHOLDERS' EQUITY
Common stock, no par value; authorized
10,000,000 shares, issued and outstanding
3,200,661 and 2,100,075 shares at June 30,
2006, and Dec. 31, 2005, respectively 27,533 26,803
Retained earnings 10,174 6,617
Accumulated other comprehensive income (loss) (129) 1
Total shareholders' equity 37,578 33,421
Total liabilities and
shareholders' equity $491,229 $456,192
1ST CENTENNIAL BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF EARNINGS
Three and Six Months Ended June 30, 2006, and 2005 (unaudited)
Three Months Ended Six Months Ended
June 30, June 30,
Dollar amounts in thousands, 2006 2005 2006 2005
except per share amounts
Interest income:
Interest and fees on loans $9,316 $7,941 $17,874 $14,941
Deposits in financial
institutions 31 34 59 73
Federal funds sold 281 31 552 42
Investments:
Taxable 101 112 196 251
Tax-exempt 70 42 110 83
Total interest income 9,799 8,160 18,791 15,390
Interest expense:
Interest bearing demand and
savings deposits 1,427 423 2,589 775
Time deposits $100,000 or
greater 637 513 1,198 788
Other time deposits 344 263 665 468
Interest on borrowed funds 356 473 695 871
Total interest expense 2,764 1,672 5,147 2,902
Net interest income 7,035 6,488 13,644 12,488
Provision for loan losses 155 660 620 1,010
Net interest income
after provision for
loan losses 6,880 5,828 13,024 11,478
Noninterest income:
Customer service fees 357 354 685 675
Gains from sale of loans 52 250 317 305
Conduit loan sale income 63 344 558 646
Other income 174 173 254 409
Total noninterest
income 646 1,121 1,814 2,035
Noninterest expense:
Salaries and employee benefits 2,465 2,956 4,952 5,914
Net occupancy expense 571 483 1,122 930
Other operating expense 1,524 1,489 2,967 3,017
Total noninterest
expense 4,560 4,928 9,041 9,861
Income before provision
for income taxes 2,966 2,021 5,797 3,652
Provision for income taxes 1,119 792 2,234 1,413
Net income $1,847 $1,229 $3,563 $2,239
Basic earnings per share(1) $0.58 $0.39 $1.12 $0.72
Diluted earnings per share(1) $0.52 $0.36 $1.01 $0.66
(1) All per share data has been adjusted for the 50% stock
distribution declared to shareholders of record on March 3, 2006,
and distributed April 3, 2006.
1st Centennial Bancorp
Beth Sanders, 909-798-3611
Fax: 909-798-1872
bsanders@1stcent.com
www.1stcent.com
AI
