FIRST MOUNTAIN BANCORP ANNOUNCES SECOND QUARTER AND YEARTO-DATE 2008 RESULTS
BIG BEAR LAKE, Calif.— July 17, 2008
First Mountain Bancorp (OTCBB:FMBP) today reported quarterly consolidated net
income of $34,243, or a basic earnings per share of $ 0.02 for the quarter ended June 30,
2008, compared to $450,019, or basic earnings per share of $ 0.30 for the second quarter
of 2007. Consolidated net income for the six months ended June 30, 2008, was
$278,592, or $ 0.18 per basic share, compared to $823,489, or $0.54 per basic share, for
the same period in 2007. The decline in earnings between the respective quarters and six
months was mainly attributed to additions to the Company’s loan loss reserves and a
narrowing of the net interest margin.
The Company experienced only $16,000 in net loan charge-offs for the first half of 2008,
but added $413,000 to its loan loss reserves in response to current economic trends and
recent increases in loan delinquencies. At June 30, 2008, the Company’s reserve for loan
losses represented 1.56% of outstanding loans, compared to a ratio of 1.16% at December
31, 2007. Loan delinquencies represented 3.53% of outstanding loans at June 30, 2008.
Two real estate secured loans make up 86% of all delinquencies at that date.
“As we have previously reported, the Company has never originated sub-prime
mortgages, and we pride ourselves on our conservative underwriting standards.
Nevertheless, we are feeling some effects from the slowdown in demand for new home
construction, the reduction in interest rates, and the general slowing of the economy. We
believe these factors are affecting our customers, as well,” stated Jack Briner, Chief
Executive Officer. “However, we believe our strong capital and reserve levels position
the Company well to deal with the continuing challenges of 2008.”
First Mountain Bancorp also reported total consolidated assets of $143,481,501 at June
30, 2008, compared to $152,999,304 at December 31, 2007. Assets declined mainly as a
result of a slowdown in construction and commercial lending and deposits declined as
customers reduced their average account balances, especially in checking accounts where
total accounts remained relatively constant but outstanding balances declined by $4
million since December 2007. In spite of the decline, core non-interest demand deposits
represented a strong 31% of total deposits at June 30, 2008, which is well above peer
levels. The Company is also pleased to report it has maintained a strong liquidity
position while continuing its policy of not using brokered deposits. The Company had no
outside borrowings at June 30, 2008.
Total consolidated capital was $16,844,663 at June 30, 2008, representing 11.7% of total
assets. The Company continues to be “well capitalized,” the highest designation under
regulatory guidelines.
“Although our decision to significantly increase our loan loss reserves reduced our
reported earnings for the period, our core earnings base remains strong. While we cannot
guarantee the financial performance of the Company for the remainder of 2008, we
believe our conservative loan portfolio and strong capital position provide a good
foundation to handle the potential effects of the current economic climate and the
challenges that face our industry,” stated Mr. Briner.
At June 30, 2008, the Company reported a book value per share of $11.12, on 1,514,994
shares outstanding.
First Mountain Bancorp is the parent holding company of First Mountain Bank, which is
headquartered in Big Bear Lake and has four offices serving the Big Bear and high desert
areas of Southern California. For further information contact Jack Briner, CEO, or
Dennis Saunders, President/CFO, at (909) 866-5861.
Tables follow
FIRST MOUNTAIN BANCORP
STATEMENT OF CONDITION - (Consolidated)
June 30, 2008
(Unaudited)
$
6,176,061
3,945,000
14,287,044
112,090,330
(1,744,113)
110,346,217
2,477,678
6,249,501
$ 143,481,501
Assets
Cash and due from banks
Fed funds
Investment securities
Gross loans
Less: Allowance for loan losses
Net loans
Bank premises and equipment
Other assets
Total Assets
December 31, 2007
$
4,744,437
10,165,000
14,152,411
116,570,178
(1,347,235)
115,222,943
2,570,815
6,143,698
$ 152,999,304
Liabilities
Noninterest-bearing deposits
Interest-bearing deposits
Total deposits
Advances from FHLB
Other liabilities
$
Total Liabilities
Stockholders' Equity
Common stock
Retained earnings
Accumulated other comprehensive income/(loss)
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity
39,153,192
86,758,306
125,911,498
725,340
126,636,838
$
43,206,198
92,443,868
135,650,066
771,400
136,421,466
11,315,163
5,510,719
18,781
16,844,663
11,318,472
5,232,127
27,239
16,577,838
$ 143,481,501
$ 152,999,304
STATEMENT OF INCOME - (Consolidated) (Unaudited)
For the three months ended
06/30/08
06/30/07
Interest income
Interest expense
Net interest income before
provision for loan losses
Provision for loan losses
Net interest income
Other operating income
Operating expenses
Income (loss) before income taxes
Provision for income tax expense (benefit)
$ 2,198,910
562,390
Net Income (loss)
$
$
$
Earnings/(loss) per share - basic
Earnings/(loss) per share - dilutive
$ 2,714,019
753,368
$ 4,615,645
1,250,296
$ 5,316,688
1,440,261
1,960,651
71,000
1,889,651
347,740
1,526,472
710,919
260,900
3,365,349
413,000
2,952,349
514,872
3,101,929
365,292
86,700
3,876,427
106,000
3,770,427
613,934
3,092,672
1,291,689
468,200
1,636,520
321,000
1,315,520
271,644
1,577,021
10,143
(24,100)
34,243
0.02
0.02
For the six months ended
06/30/08
06/30/07
$
$
$
450,019
0.30
0.29
$
$
$
278,592
0.18
0.18
$
$
$
823,489
0.54
0.53