First Mountain Bancorp Announces Fourth Quarter and Year-End 2010 Results

BIG BEAR LAKE, Calif.--([ BUSINESS WIRE ])--First Mountain Bancorp (OTCBB:FMBP) and its subsidiary, First Mountain Bank, today reported a quarterly consolidated net loss of $108,131, or loss per basic share of $0.07 for the quarter ended December 31, 2010. However, for the full year ended December 31, 2010, the Company reported net income of $66,496, or $0.04 per basic share. In 2009 the Company reported fourth quarter and full year losses of $619,729 and $2,009,816, respectively, representing losses per basic share of $0.40 for the quarter and $1.29 for the full year ended December 31, 2009.

"The turnaround in earnings in 2010 is very dramatic, noteworthy in the current economic conditions"

aThe turnaround in earnings in 2010 is very dramatic, noteworthy in the current economic conditions,a noted Jack Briner, Chief Executive Officer. aAlthough earnings are well below pre-recessionary levels, the stabilization of the level of non-performing loans and expense levels provides positive signs for future earnings growth at the Company. We are confident that our local economy and the financial performance our subsidiary, First Mountain Bank, will continue to improve as we work closely with our clients.a

Total assets ended the year at $143,777,320 as compared to the December 31, 2009, figure of $137,772,896, reflecting a 4.4% increase in assets. The asset growth during the year resulted from strong deposit growth that came from our local market areas. During 2010 deposits increased by $5,822,000, or 4.8%.

aThe Bank is really encouraged by these recent deposit trends, especially in light of economic conditions and local competition for deposits. In fact, the FDICa�s Summary of Deposits report shows we outpaced all other mountain competitors in market share growth between June 2009 and June 2010, the latest date for which comparative data is available,a noted Mr. Briner.

Gross loans outstanding at December 31, 2010, totaled $98,914,244, compared to $107,629,578 at December 31, 2009. The decrease in outstanding loan balances was a direct result of managementa�s decision to de-leverage credit exposure during the height of the economic downturn. As the economy continues to show signs of recovery the Company will add loans to its portfolio. The Companya�s strong loan portfolio yield and core deposit mix continues to provide an interest rate spread well in excess of peers.

The allowance for possible loan losses stood at $2,711,957 at December 31, 2010, or 2.74% of outstanding loans. Non-performing loans represented 7.1% of the loan portfolio at December 31, 2010, compared to 9.2% at September 30, 2010. At December 31, 2010 the Bank had an inventory of five foreclosed properties totaling $3,541,240. Subsequent to year end the largest property was sold reducing the remaining outstanding balance to approximately $1,746,000. Another property is scheduled to close soon. The Banka�s net proceeds from sales are generally covering the carrying values of the properties with only minor net gains or losses from the sales.

At December 31, 2010, the Company had total consolidated equity capital of $15,002,199 which represents a Tier 1 leverage capital ratio of 9.7%, while the Banka�s stand-alone Tier 1 leverage capital ratio was 9.6%. Both ratios are significantly in excess of regulatory guidelines for a aWell Capitalizeda designation. The Company also reported book value of $9.59 per share on 1,564,926 shares outstanding at year end.

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.

FIRST MOUNTAIN BANCORP

STATEMENT OF CONDITION - (Consolidated) (Unaudited)

	December 31, 2010			December 31, 2009
Assets
Cash and due from banks	$	25,563,874		$	14,805,413
Fed funds		962,653			710,773
Investment securities		7,884,000			7,081,000
Gross loans		98,914,244			107,629,578
Less: Allowance for loan losses		(2,711,957	)		(3,759,073	)
Net loans		96,202,287			103,870,505
Bank premises and equipment		2,275,008			2,257,059
Other assets		10,889,498			9,048,146
Total Assets	$	143,777,320		$	137,772,896

Liabilities
Noninterest-bearing deposits	$	38,061,645		$	37,539,472
Interest-bearing deposits		89,860,147			84,560,794
Total deposits		127,921,792			122,100,266
Other liabilities		853,329			805,829
Total Liabilities		128,775,121			122,906,095
Stockholders' Equity
Common stock		12,002,760			11,935,614
Retained earnings		2,944,012			2,876,516
Accumulated other comprehensive income		55,427			54,671
Total Stockholders' Equity		15,002,199			14,866,801
Total Liabilities and Stockholders' Equity	$	143,777,320		$	137,772,896



STATEMENT OF INCOME - (Consolidated) (Unaudited)

	For the three months ended						For the year ended
		12/31/10			12/31/09			12/31/10			12/31/09

Interest income	$	1,644,021		$	1,842,242		$	6,654,773		$	7,881,305
Interest expense		202,708			245,036			816,723			1,256,886
Net interest income before
provision for loan losses		1,441,313			1,597,206			5,838,050			6,624,419
Provision for loan losses		32,000			1,060,000			125,000			4,470,000
Net interest income		1,409,313			537,206			5,713,050			2,154,419
Other operating income		252,850			268,542			1,100,332			1,093,891
Operating expenses		1,871,294			1,896,477			6,814,886			6,812,126
Income (loss) before income taxes		(209,131	)		(1,090,729	)		(1,504	)		(3,563,816	)
Provision (benefit) for income taxes		(101,000	)		(471,000	)		(69,000	)		(1,554,000	)
Net Income (Loss)	$	(108,131	)	$	(619,729	)	$	67,496		$	(2,009,816	)
Earnings (loss) per share - basic	$	(0.07	)	$	(0.40	)	$	0.04		$	(1.29	)
Earnings (loss) per share - dilutive	$	(0.07	)	$	(0.40	)	$	0.04		$	(1.29	)

FIRST MOUNTAIN BANCORP

	For the three months ended				For the year ended
	12/31/2010		12/31/2009			12/31/2010			12/31/2009
Performance Ratios:
Return on Average Assets	-0.30	%	-1.80	%		0.05	%		-1.43	%
Return on Average Equity	-2.87	%	-16.33	%		0.45	%		-12.42	%

Average yield on interest-earning assets	5.209	%	5.908	%		5.332	%		6.139	%
Average cost of interest-bearing liabilities	0.648	%	0.812	%		0.673	%		1.029	%
Net interest spread	4.561	%	5.096	%		4.659	%		5.110	%

Net interest margin	4.529	%	5.080	%		4.678	%		5.160	%

					As of			As of
						12/31/2010			12/31/2009
Capital Ratios (Bank):
Total Risk-Based Capital Ratio						13.2	%		13.1	%
Tier 1 Risk-Based Capital Ratio						12.0	%		11.8	%
Tier 1 Leverage Ratio						9.6	%		10.4	%


Asset Quality:
Number of non-performing loans						10			18

Total number of foreclosed properties						5			2

Total non-performing loans					$	7,028,999		$	7,764,563
Total foreclosed properties (OREO)					$	3,541,240		$	291,636
Total non-performing assets					$	10,570,239		$	8,056,199


Ratio of non-performing loans to total loans						7.11	%		7.21	%
Total non-performing assets to total assets						7.35	%		5.85	%
Total non-performing assets to equity and loan loss reserves						60.19	%		43.25	%
(commonly referred to as Texas Ratio)
Allowance for Loan Losses:
Total Balance					$	2,711,957		$	3,759,073
As a percent of non-performing assets						25.66	%		46.66	%
As a percent of total loans outstanding						2.74	%		3.49	%

Stock Information:

Shares outstanding						1,564,926			1,560,262
Book value per share					$	9.59		$	9.53

Contributing Sources

Market Wire

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First Mountain Bancorp Announces Fourth Quarter and Year-End 2010 Results