Founders Community Bank Announces Record First Quarter Earnings

SAN LUIS OBISPO, Calif., April 25, 2014

"Despite incurring a $109 thousand charge off in the first quarter of 2014, Founders Community Bank was able to deliver record revenue growth along with expansion of our core business relationships and the addition of several new service offerings," said Chief Executive Officer Thomas J. Sherman.  "This growth and profitability was the direct result of the time and efforts invested by the Bank's employees in expanding our electronic banking platform, and streamlining lending products."

First Quarter 2014 Highlights
(at or for the quarter ended March 31, 2014, compared to March 31, 2013 unless otherwise noted)

• Net income grew by $165 thousand in the first quarter 2014 to $381 thousand or 76.4 percent over the same period in 2013.
• Net income before Provision for Income Tax Expense grew by $259 thousand in the first quarter 2014 to $655 thousand or 65.4 percent over the first quarter 2013.
• Total interest income increased to $1.9 million, up $288 thousand or 18.3 percent from first quarter 2013 due to organic loan growth.
• Total asset increased to $161.5 million, an increase of $15.3 million or 10.5 percent from March 31, 2013.
• Total loans grew to $111.2 million, a $16 million or 16.8 percent increase from March 31, 2013.
• Continued strong loan quality with one charged-off loan of $109 thousand and recoveries of $1.4 thousand in the first quarter of 2014.
• Total deposits grew to $145.3 million, a $15.2 million or 11.6 percent increase from March 31, 2013.
• Noninterest bearing deposits increased to $62.5 million or 43.0 percent of total deposits at March 31, 2014.  Noninterest bearing deposits grew $8.8 million or 14.3 percent from March 31, 2013.
• Cost of deposits declined to 0.19 percent at March 31, 2014 versus 0.21 percent at March 31, 2013.  Interest expense increased slightly to $66 thousand for the first quarter 2014 versus $65 thousand in the first quarter of 2013, an increase of 1.5 percent.
• Continued status as well-capitalized, the highest regulatory category. 

	Regulatory Minimum Capital to be Considered  "Well Capitalized" ARIVA.DE Börsen-Geflüster Kurse FOUNDERS BANCORP (CA) -   0,00%	Founders Community Bank
March 31, 2014
Total Risk-Based Capital Ratio	10.0 %	14.66 %
Tier 1 Risk-Based Capital Ratio	6.0 %	13.41 %
Tier 1 Leverage Capital Ratio	5.0 %	9.93 %

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