First Trust Bank (Charlotte, NC) (NCFT)

[SFGiants]

First Trust Bank Reports Third Quarter Earnings

CHARLOTTE, N.C., Oct. 22 /PRNewswire-FirstCall/ -- First Trust Bank (OTC Bulletin Board: NCFT) reported results for the third quarter of 2009 today. The Bank reported net income of $935 thousand, or $0.20 per diluted share, for the quarter ended September 30, 2009 compared to net income of $1.15 million, or $0.25 per diluted share, for the third quarter of 2008. Return on equity was 7.85% for the quarter compared to 11.72% last year. Return on assets was 0.74% compared to 1.06% for the same period last year.

Assets at September 30, 2009 were $467 million, an increase of $28 million, or 6% over the $439 million reported at September 30, 2008. Loans increased to $333 million at quarter end, an increase of 3%, over September 30, 2008.

Earnings for the third quarter of 2009 were adversely affected by a $1.1 million addition to the allowance for loan losses and FDIC assessment expense of $294 thousand. The provision for loan losses increased by $919 thousand over 2008 and is primarily the result of downgrading individual credits as appropriate to reflect risk exposure in the current weak economy. The expense for FDIC assessments reflects an increase of 488% over the same period last year.

At September 30, 2009, the loan loss reserve was 1.86% of total loans outstanding, up from 1.37% at 2008 year-end. Non-performing assets were $6.6 million or 1.60% of total assets and consisted of $5.8 million in non-accrual loans and $800 thousand in OREO. Management believes it has thoroughly evaluated its non-accrual loans and they are either well collateralized or adequately reserved.

"Despite this very difficult environment, earnings remain relatively stable," said Jim Bolt, President and CEO.

First Trust Bank is a commercial bank whose target market is small to medium sized businesses and professionals. The Bank operates three banking offices at 1420 East Third Street and 2245 Rexford Road, Charlotte, NC and 108 Gateway Boulevard, Mooresville, NC; and a loan production office at 2616 W. Roosevelt Boulevard in Monroe, NC.

Information in this press release may contain forward looking statements that might involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, and changes in interest rates.

SELECTED FINANCIAL DATA FIRST TRUST BANK (dollars in thousands, except per share)

September 30, December 31, 2009 2008 SELECTED BALANCE SHEET DATA (Unaudited) (Audited) Total loans $332,750 $334,737 Allowance for loan losses (6,192) (4,602) Investment securities 105,107 89,745 Other real estate owned 800 - Total assets 466,833 468,114

Deposits 380,336 372,757 Borrowed funds 35,998 47,888 Shareholders' equity 46,029 42,034

September 30, September 30, % 2009 2008 Change For the quarter ended (Unaudited) (Unaudited) Net interest income $4,166 $3,568 16.76% Provision for loan losses 1,055 136 675.74% Other income 172 159 8.18% Other expenses 1,902 1,902 0.00% Income tax expense 446 543 -17.86% Net income $935 $1,146 -18.41% Per Share Data Net income per share-basic $0.20 $0.26 Net income per share-diluted $0.20 $0.25

September 30, September 30, % 2009 2008 Change For the six months ended (Unaudited) (Unaudited) Net interest income $11,142 $10,373 7.41% Provision for loan losses 2,283 178 1182.58% Other income 624 475 31.37% Other expenses 5,740 5,659 1.43% Income tax expense 1,305 1,811 -27.94% Net income $2,438 $3,200 -23.81% Per Share Data Net income per share-basic $0.52 $0.72 Net income per share-diluted $0.52 $0.69

Shares Outstanding at period end 4,775,898 4,465,326

Allowance to loan losses to total loans 1.86% 1.37% Nonperforming loans to total loans 2.01% 0.21% Nonperforming assets to total assets 1.60% 0.16%

http://www.firsttrustnc.com/

DATASOURCE: First Trust Bank

CONTACT: Jean Galloway or Jim Bolt, [phone], fax:

[phone], or by e-mail at http://www.firsttrustnc.com/

Web Site: http://www.firsttrustnc.com/