Market Overview

First Choice Bank Posts 37% YOY Increase in Q1 Net Income and Declares $0.20 Quarterly Cash Dividend


First Choice Bank, the "Bank" (OTCQX:FCBK), is pleased to continue to
report strong earnings of $2.1 million for the first quarter of 2017.

Earnings were especially strong year over year, and this was the
fourteenth quarter in a row where the Bank earned over $1 million,
starting with the fourth quarter of 2013, and the fourth quarter in a
row where the Bank earned over $2 million starting with the second
quarter of 2016. In the first quarter of 2016, the Bank earned $1.6
million, so the increase in earnings compared to the first quarter of
2016 was 37.2%.

As announced previously, the Board of Directors declared the second
quarterly 2017 cash dividend of $0.20 per share, payable on May 31, 2017
to shareholders of record on May 15, 2017. The Bank's 2017 Annual
Meeting of Shareholders will be held at the Cerritos Library-Skyline
Room, 18025 Bloomfield Avenue, Cerritos, California on July 31, 2017.
The record date for determination of shareholders entitled to vote at
the annual meeting will be June 6, 2017. The purpose of the annual
meeting will be the election of directors.

"2017 has started off well, with positive loan growth in the face of
what appears to be a strengthening economy. Based on the Bank's
earnings, the Board has declared another 20 cent quarterly cash
dividend. We value our shareholders and are pleased to continue this
practice of returning a portion of the earnings as a cash dividend,"
said Peter Hui, Founder & Chairman of First Choice Bank.

Capital ratios remained strong at the quarter-end, with Tier 1
risk-based capital and total risk-based ratios at 13.3% and 14.5%,
comparing favorably to the well capitalized requirements of 8% and 10%,

The gross loans balance, at $743.3 million at March 31, 2017 was up from
$669.8 million at March 31, 2016, and represented a year over year
increase of 11.0%. Compared to the balance of $704.3 million at December
31, 2016, gross loans grew by 5.5% in the most recent quarter. There was
no provision for loan losses for the first quarter of 2017. The
Allowance for Loan and Lease Losses (the "ALLL") stood at $11.5 million,
or 1.6% of total loans, and 446.3% of all non-performing assets as of
March 31, 2017.

There were no past due loans for the first quarter of 2017.
Nonperforming assets decreased to $2.6 million or 0.3% of total assets
as of March 31, 2017, compared to $3.9 million or 0.4% of total assets
as of March 31, 2016. The decrease in nonperforming assets was due to a
non-accrual loan payoff with a net charge-off of $76,200. At
quarter-end, there were four non-accrual loans in the amount of $2.6
million. Included in the nonaccrual loans are four loans classified as
Troubled Debt Restructured ("TDR"), which amounted to $2.6 million.
Three TDR and non-accrual loans were paying as agreed under their
modified terms. There was no Other Real Estate Owned.

SBA Loan production was very strong in the first quarter of 2017. In
addition, the Bank was ranked in the top 100 most active SBA 7(a)
Lenders in the United States in the SBA's fiscal year 2016. Gain on sale
premiums amounted to $1.2 million for the first quarter of 2017,
primarily related to the sale of the guaranteed portions of SBA 7a
loans. This represented an increase of 123.5% from the $0.5 million
premiums realized in March 31, 2016.

Total assets were $914.8 million, a year over year increase of 12.8%,
compared to the balance at March 31, 2016. In addition, total deposits
were $767.4 million, a year over year increase of 10.6% compared to the
balance at March 31, 2016.

Robert M. Franko, President and CEO of the Bank further commented,
"Putting some of the uncertainty of 2016 behind us, this new year has
started well. Loan growth, while episodic from month to month, continues
to be positive. Deposit growth is also keeping pace, especially in the
area of non-interest DDA growth. Our outstanding Team of bankers works
together every day to help the Bank achieve its goals."

Total Capital at the quarter-end was $102.7 million, a year over year
increase of 8.8% compared to March 31, 2016. The Bank's common book
value per share and tangible book value per share were $14.28 and $14.28
respectively at quarter-end, following distribution of the $0.20 cash
dividend in the quarter. This compared with $14.26 and $14.26 at
December 31, 2016, and $13.28 and $13.28 in the year-ago period. Common
book value per share at March 31, 2017, as compared to December 31, 2016
and March 31, 2016 was attributable to net income and stock issued for
2016 bonuses and options that were exercised, with an offset for the
first quarter 2017 cash dividend.

The Bank's total investment portfolio at quarter-end stood at $45.3
million, including $5.7 million in the Bank's Held-to-Maturity
portfolio. Cash and due from banks was $119.8 million, including
Agreement to resell of $3.46 million.

At the quarter-end, total deposits were $767.4 million, of which $197.7
million, 25.8% of total deposits was in non-interest bearing checking
accounts. The Bank's Net Loan to Deposit ratio was 95.4% at March 31,
2017. Federal Home Loan Bank of San Francisco advances totaled $40
million as of March 31, 2017.

Net Interest Income totaled $7.6 million and net interest margin stood
at 3.61% for the first quarter of 2017, compared to $7.5 million and
3.66% for the fourth quarter of 2016. The decrease in net interest
margin was 5 basis points primarily due to $11 million residential
mortgage loan early payoffs, which resulted in the immediate
amortization of purchase premium.

Non-Interest Income totaled $1.5 million for the first quarter of 2017.
Gain on the sale of loans, primarily the guaranteed portions of SBA
loans, accounted for $1.2 million of the Non-Interest Income.
Non-interest expense continued to be well-controlled, and was $5.5
million in the quarter. The Bank's efficiency ratio was 60.4% at
quarter-end, compared to 59.1% at March 31, 2016.

Selected Financial Highlights for the Quarter ending March 31, 2017:

Net after Tax Income of $2.1 million.
Pre-Tax, Pre-Provision Income
of $3.6 million.
Return on average assets annualized at 1.0%.
on average tangible common equity annualized at 8.3%.
Allowance for
Loan and Lease Losses at 1.55% of total gross loans, and 446.4% of all
non-performing assets.
Earnings Per Share for the quarter at $0.30
(basic) and $0.30 (diluted).
Earnings Per Share annualized at $1.21
(basic) and $1.19 (diluted).
Book Value and Tangible Book Value Per
Share at $14.28 and $14.28 respectively.
Tier 1 Leverage Ratio,
Common Equity Tier 1, Tier 1 Risk-Based Capital and total Risk-Based
Ratios at 11.9%, 13.3%, 13.3% and 14.5%, compares very favorably to 5%,
6.5%, 8% and 10%, which are the respective minimum required ratios for a
bank to be deemed "Well-Capitalized" by the FDIC. Capital conservation
buffer was 6.5%, well above the dividend payout restriction of 0.625%
and 2.5% requirements in 2017 transition period and 2019 fully effective


First Choice Bank, headquartered in Cerritos, California is a community
focused financial institution, serving diverse consumers and commercial
clients and specializing in loans to small businesses, Private Banking
clients, Commercial and Industrial (C&I) loans, and commercial real
estate loans with a niche in providing finance for the hospitality
industry. The Bank is a Preferred Small Business Administration (SBA)
Lender. Founded in 2005, First Choice Bank has quickly become a leading
provider of financial services that enable our customers to grow,
maintain strength, and reach unprecedented levels of success. We strive
to surpass our clients' expectations through our efficiency and
professionalism and are committed to being "First in Speed, Service, and
Solutions." First Choice Bank stock is traded on the Over the Counter
(OTCQX); our Ticker Symbol is FCBK.

The Bank's web site is

Forward Looking Statements

Except for the historical information in this news release, the
matters described herein contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 and are
subject to risks and uncertainties that could cause actual results to
differ materially. Such risks and uncertainties include: the credit
risks of lending activities, including changes in the level and trend of
loan delinquencies and charge-offs, results of examinations by our
banking regulators, our ability to maintain adequate levels of capital
and liquidity, our ability to manage loan delinquency rates, our ability
to price deposits to retain existing customers and achieve low-cost
deposit growth, manage expenses and lower the efficiency ratio, expand
or maintain the net interest margin, mitigate interest rate risk for
changes in the interest rate environment, competitive pressures in the
banking industry, access to available sources of credit to manage
liquidity, the local and national economic environment, and other risks
and uncertainties. Accordingly, undue reliance should not be placed on
forward-looking statements. These forward-looking statements speak only
as of the date of this release. First Choice Bank undertakes no
obligation to update publicly any forward-looking statements to reflect
new information, events or circumstances after the date of this release
or to reflect the occurrence of unanticipated events. Investors are
encouraged to read the First Choice Bank annual reports which are
available on our website.

BALANCE SHEET                  
(all amounts in thousand dollars except share and per share

March 31, 2017

December 31, 2016

March 31, 2016

      (unaudited)     (audited)     (unaudited)
Cash and due from banks $ 119,762 $ 110,032 $ 97,086
Investment securities 45,316 41,465 40,335
Stock Investments, restricted 3,765 3,765 3,238
Loans (gross) 743,287 704,345 669,806
Less allowance for loan losses   (11,523 )   (11,599 )   (12,315 )
Loans, net 731,764 692,746 657,490
Premises and equipment, net 975 1,036 1,328
Other assets   13,259     14,412     11,583  
TOTAL ASSETS $ 914,841   $ 863,455   $ 811,059  
Noninterest bearing deposits $ 197,672 $ 150,764 $ 106,771
Interest checking accounts 260,748 265,381 257,253
Money market accounts 78,659 92,309 107,658
Savings accounts 92,209 89,139 91,158
Certificates of deposits   138,148     158,968     130,900  
Total Deposits 767,436 756,561 693,739
Federal Home Loan Bank borrowings 40,000 0 18,000
Other liabilities   4,713     5,447     4,970  
Total liabilities 812,149 762,007 716,708
Total shareholders' equity   102,691     101,447     94,351  
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 914,841   $ 863,455   $ 811,059  
STATEMENT OF INCOME                  
For the three months ended
March 31, 2017 December 31, 2016 March 31, 2016
Interest income $ 9,064 $ 9,146 $ 9,064
Interest expense   1,436     1,646     1,416  
Net interest income 7,628 7,499 7,648
Provision for loan losses   0     0     900  
Net interest income after provision for loan losses 7,628 7,499 6,748
Noninterest income 1,471 1,066 1,089
Noninterest expense   5,493     4,820     5,187  
Income before income taxes 3,607 3,745 2,650
Provision for income taxes   1,472     1,547     1,094  
NET INCOME $ 2,135   $ 2,198   $ 1,556  
Dividends declared per common share 0.20 0.00 0.00
Net income per share-basic ¹ $ 0.30 $ 0.31 $ 0.22
Net income per share-diluted ¹ ² $ 0.30 $ 0.31 $ 0.22
Weighted average shares - basic ¹ 7,081,065 7,001,249 6,980,506
Weighted average shares - diluted ¹ ² 7,170,439 7,075,977 7,057,896
Return on assets (annualized) 1.0 % 1.07 % 0.77 %
Return on equity (annualized) 8.33 % 8.69 % 6.64 %
Net interest margin 3.61 % 3.66 % 3.82 %
Efficiency ratio 60.36 % 56.27 % 59.37 %
SELECTED RATIOS                  

March 31, 2017

December 31, 2016

March 31, 2016

Book value $ 14.28 $ 14.26 $ 13.28
Tangible book value³ $ 14.28 $ 14.26 $ 13.28
Allowance for loan losses as a percent of total gross loans 1.55 % 1.65 % 1.84 %
Nonperforming assets as a percent of total assets 4 0.28 % 0.39 % 0.48 %
Allowance for loan losses as a percent of nonperforming assets 446.35 % 346.33 % 319.47 %
Net Loan to deposit ratio 95.35 % 91.57 % 94.77 %
Tier one leverage capital 11.88 % 12.42 % 11.67 %
Total risk based capital 14.54 % 15.33 % 14.74 %
(1) Per common share data has been adjusted for the 4% stock
dividend issued to shareholders on the record of May 26,2016
(2) Diluted shares are calculated using the treasury method since
Q1 2015.
(3) Tangible book value per share excludes goodwill and
intangible assets
(4) Nonperforming assets include nonaccrual loans, loans past due
90 days or more and still accruing, and other real estate owned.

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