1st Century Bancshares Slips to Loss in Quarter

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1st Century Bancshares Inc. on Tuesday reported a net loss in its fourth quarter as the bank took a larger provision for loan losses.

The Los Angeles holding company of 1st Century Bank reported a net loss of $1.93 million (-19 cents per share), compared with net income of $2.13 million (21 cents) a year ago. Net interest income for the quarter rose 2.6 percent to $2.74 million and non-interest income rose 87 percent to $252,000.

1st Century’s provision for loan losses rose to $3.6 million, compared with $281,000 for the third quarter. Nonaccrual loans totaled $5.7 million, compared with zero a year earlier. Net charge-offs, which were concentrated in five loans, were $1.4 million.

“Throughout the year we had one primary objective to protect our customers and shareholders in this time of unprecedented uncertainty for the financial markets and the U.S. economy,” Chief Executive Alan I. Rothenberg said in a statement. “Our strong balance sheet combined with one of the highest risk-based capital ratios in our peer group without needing to access TARP Capital will provide us with the strength to weather this economic cycle.”

The bank’s total risk-based capital ratio was 23 percent at the end of the quarter, which is above the regulatory standard of 10 percent for “well-capitalized” financial institutions. Gross loans were up 16 percent from a year ago to $200 million, and up 2 percent from the third quarter.

1st Century’s shares were unchanged at $3.75 in Tuesday trading on the Nasdaq.

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