FISB-1st Capital Bank is an eight year-old community bank serving the Monterey County market in California. The bank has three branches in Monterey, Salinas and King City. FISB plans to open a fourth branch in San Luis Obispo in 2Q-15. The bank’s markets include the very affluent along the coast (such as Carmel and Pebble Beach) as well as the vibrant Salinas Valley (which produces $4 Billion in agriculture revenue annually).
- Largest commercial bank headquartered in Monterey Bay Area. Targets affluent business owners along the coast and companies serving the $4 Bil agriculture industry in Salinas Valley.
- Organic loan growth annual run-rate of 20% with total loan portfolio concentrated in CRE-Commercial Real Estate (44%) and C&I-Commercial & Industrial (13%).
- Management uses purchased pools of hybrid adjustable mortgages ($79 Million purchased since 1Q-14) as investment strategy, not lending strategy. Securities portfolio is 99.5% variable rate.
- Non-interest bearing deposits are ~40% with cost of deposits at 0.15%.
- NPAs were $1.9 Mil, or 55bps of Loans+OREO, with reserves at 1.59% of loans.
Please see our report for more information.