First Mountain Bancorp Announces 2nd Quarter and Year-to-Date 2011 Results

BIG BEAR LAKE, Calif.--([ BUSINESS WIRE ])--First Mountain Bancorp (OTCBB:FMBP) and its subsidiary, First Mountain Bank, today reported quarterly consolidated net income of $136,180, or earnings per basic share of $0.09, for the quarter ended June 30, 2011, compared to net income of $13,355, or earnings per basic share of $0.01, for the second quarter of 2010. The Company also reported net income of $201,182, or $0.13 per basic share, for the six months ended June 30, 2011, compared to $118,804 in earnings, or $0.08 per basic share, for the comparable period in 2010.

"We are pleased that the turnaround in earnings that began in 2010 has continued into the first half of 2011. In fact, earnings more than doubled between the first and second quarters"

aWe are pleased that the turnaround in earnings that began in 2010 has continued into the first half of 2011. In fact, earnings more than doubled between the first and second quarters,a stated Jack Briner, Chief Executive Officer.

Total assets ended the quarter at $141,010,562 as compared to the December 31, 2010, figure of $143,707,686. Total deposits were $124,808,031 at June 30, 2011, compared to the December 31, 2010 figure of $127,921,792. Assets and deposits declined slightly during the second quarter due in large part to the seasonality of our local resort community.

Gross loans outstanding at quarter end totaled $103,930,748, compared to $98,914,244 at December 31, 2010, an increase of $5,016,504, or 5.1%. The Bank has experienced a compression in yields and net interest margin over the past twelve months. However, at 4.7%, the Banka�s net interest margin continues to provide an interest rate spread well in excess of peers.

The allowance for possible loan losses stood at $2,484,256 at June 30, 2011, or 2.39% of outstanding loans, compared to a ratio of 2.74% at December 31, 2010. Non-performing loans represented 6.7% of the loan portfolio at quarter end, and continues to be an area of special focus and aggressive effort by the Bank.

At June 30, 2011, the Company had total equity capital of $15,255,473, which represents a Tier 1 leverage capital ratio of 9.8%, which is significantly in excess of regulatory guidelines for a aWell Capitalizeda designation. The Company also reported book value of $9.75 per share on 1,564,926 shares outstanding at quarter end.

The Company recently completed a successful shareholder solicitation to allow the Company to issue preferred stock. This approval provides additional capital raising options for the Company and makes it possible for the Company to participate in the U.S. Treasury Departmenta�s Small Business Lending Fund capital program if it chooses to do so.

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)
		June 30, 2011				December 31, 2010
	Assets
	Cash and due from banks		$	15,461,103			$	25,563,874
	Fed funds			963,739				962,653
	Investment securities			11,881,902				7,884,000
	Gross loans			103,930,748				98,914,244
	Less: Allowance for loan losses			(2,484,256	)			(2,711,957	)
	Net loans			101,446,492				96,202,287
	Bank premises and equipment			2,174,007				2,275,008
	Other assets			9,083,319				10,819,864
	Total Assets		$	141,010,562			$	143,707,686

	Liabilities
	Noninterest-bearing deposits		$	37,018,332			$	38,061,645
	Interest-bearing deposits			87,789,699				89,860,147
	Total deposits			124,808,031				127,921,792
	Other liabilities			947,058				783,695
	Total Liabilities			125,755,089				128,705,487
	Stockholders' Equity
	Common stock			12,039,020				12,002,760
	Retained earnings			3,145,194				2,944,012
	Accumulated other comprehensive income			71,259				55,427
	Total Stockholders' Equity			15,255,473				15,002,199
	Total Liabilities and Stockholders' Equity		$	141,010,562			$	143,707,686


STATEMENT OF INCOME - (Consolidated) (Unaudited)
	For the three months ended					For the six months ended
	06/30/11		06/30/10			06/30/11		06/30/10

Interest income	$	1,712,079	$	1,661,091		$	3,402,094	$	3,349,642
Interest expense		156,351		191,542			331,320		398,943
Net interest income before
provision for loan losses		1,555,728		1,469,549			3,070,774		2,950,699
Provision for loan losses		-		58,000			30,000		58,000
Net interest income		1,555,728		1,411,549			3,040,774		2,892,699
Other operating income		292,199		278,426			560,373		531,725
Operating expenses		1,632,747		1,689,620			3,295,965		3,270,620
Income before income taxes		215,180		355			305,182		153,804
Provision for income taxes		79,000		(13,000	)		104,000		35,000
Net Income	$	136,180	$	13,355		$	201,182	$	118,804
Earnings per share - basic	$	0.09	$	0.01		$	0.13	$	0.08
Earnings per share - dilutive	$	0.09	$	0.01		$	0.13	$	0.08

FIRST MOUNTAIN BANCORP

	For the three months ended				For the six months ended
	6/30/2011		6/30/2010		6/30/2011			6/30/2010
Performance Ratios:
Return on Average Assets	0.38	%	0.04	%		0.28	%		0.17	%
Return on Average Equity	3.59	%	0.36	%		2.66	%		1.59	%

Average yield on interest-earning assets	5.275	%	5.413	%		5.220	%		5.488	%
Average cost of interest-bearing liabilities	0.501	%	0.653	%		0.526	%		0.683	%
Net interest spread	4.774	%	4.760	%		4.694	%		4.805	%

Net interest margin	4.793	%	4.789	%		4.711	%		4.834	%
					As of			As of
					6/30/2011			12/31/2010
Capital Ratios (Bank):
Total Risk-Based Capital Ratio						13.3	%		13.2	%
Tier 1 Risk-Based Capital Ratio						12.0	%		12.0	%
Tier 1 Leverage Ratio						9.8	%		9.6	%


Asset Quality:
Number of non-performing loans						11			10

Total number of foreclosed properties						4			5

Total non-performing loans					$	6,912,286		$	7,028,999
Total foreclosed properties (OREO)					$	1,943,410		$	3,541,240
Total non-performing assets					$	8,855,696		$	10,570,239


Ratio of non-performing loans to total loans						6.65	%		7.11	%
Total non-performing assets to total assets						6.14	%		7.35	%
Total non-performing assets to equity and loan loss reserves						50.28	%		60.19	%
(commonly referred to as Texas Ratio)
Allowance for Loan Losses:
Total Balance					$	2,484,256		$	2,711,957
As a percent of non-performing assets						28.05	%		25.66	%
As a percent of total loans outstanding						2.39	%		2.74	%

Stock Information:

Shares outstanding						1,564,926			1,564,926
Book value per share					$	9.75		$	9.59

Contributing Sources

Market Wire

N@N

First Mountain Bancorp Announces 2nd Quarter and Year-to-Date 2011 Results