Founders Community Bank Announces First Quarter Earnings

SAN LUIS OBISPO, Calif., April. 12, 2013

"In the first quarter of 2013, Founders Community Bank continued to deliver increased profitability along with core business growth.  The largest increase came in deposits which grew $10.1 million since December 31, 2012," said Chief Executive Officer Thomas J. Sherman. 

"We appreciate the trust and confidence placed in us by our current and new customers.  In addition to the deposit growth, the Bank has maintained good credit quality with no loans past due more than 30 days and no loans on non-accrual.  During the first quarter of 2013 the Bank was able to sell one Other Real Estate Owned (OREO) property resulting in a decrease in OREO of $133 thousand at March 31, 2013, with a second OREO property also in escrow."   

First Quarter 2013 Highlights
(at or for the quarter ended March 31, 2013, compared to March 31, 2012 unless otherwise noted)

• Net income grew by $27 thousand in the first quarter 2013 to $216 thousand or 14.3 percent over the same period in 2012.
• Net income before Provision for Income Tax Expense grew by $70 thousand in the first quarter 2013 to $396 thousand or 21.5 percent over the first quarter 2012.
• Total interest income increased to $1.6 million, up $134 thousand or 9.3 percent from first quarter 2012 due to organic loan growth.
• Total asset increased to $146.1 million, an increase of $25.4 million or 21.0 percent from March 31, 2012.
• Total loans grew to $95.2 million, an $8 million or 9.3 percent increase from March 31, 2012.
• Continued strong loan quality with only one charged-off loan of $64 thousand and recoveries of $104 thousand in the first quarter of March 2013.
• Total deposits grew to $130.2 million, a $24.5 million or 23.2 percent increase from March 31, 2012.
• Noninterest bearing deposits increased to $54.7 million or 42.0 percent of total deposits at March 31, 2013.  Noninterest bearing deposits grew $10.4 million or 23.7 percent from March 31, 2012.
• Cost of deposits declined to 0.21 percent at March 31, 2013 versus 0.26 percent at March 31, 2012.  Interest expense fell to $65 thousand for the first quarter 2013 versus $74 thousand in the first quarter of March 2012, a decline of 12.2 percent.
• Continued status as well-capitalized, the highest regulatory category. 

	Regulatory Minimum	Founders
	Capital to be Considered ARIVA.DE Börsen-Geflüster Kurse FOUNDERS BANCORP (CA) -   0,00%	Community
March 31, 2013	"Well Capitalized"	Bank
Total Risk-Based Capital Ratio	10.0 %	16.71 %
Tier 1 Risk-Based Capital Ratio	6.0 %	15.45 %
Tier 1 Leverage Capital Ratio	5.0 %	11.48 %

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.

SOURCE Founders Community Bank