Profile: 1st Century Bancshares Inc (FCTY.O)

1st Century Bancshares, Inc. (Bancshares) is a bank holding company. Bancshares has one subsidiary, 1st Century Bank, National Association (the Bank). As of December 31, 2011, the Company had deposits of $332.5 million. The Bank is a full service commercial bank. During the year ended December 31, 2011, the Bank opened a relationship office in Santa Monica, California. The Bank’s focus is relationship banking to family and middle market businesses, professional service firms, and high net worth individuals, real estate investors and entrepreneurs.

Lending Activities

The Bank’s loans include business and personal lines of credit and term loans; tenant improvement and equipment financing; bridge and/or specific purpose loans; commercial, industrial, multi-family and one-to-four single family residential real estate lending; personal home equity loans and lines of credit, and credit cards for business and personal use. As of December 31, 2011, gross loans outstanding totaled $233 million. As of December 31, 2011, the Company’s loan customers were located in Southern California. As of December 3, 2011, approximately 60.9% of total loans consisted of real estate loans, including first trust deeds on single family residential properties, undeveloped land, multi-family residential properties, commercial/industrial real estate, and construction-in-process. As of December 31, 2011, of the total loans outstanding, there were 78 loans that have outstanding balances of $1,000,000 or more, which totals approximately $176.1 million or 75.6% of the total loan portfolio. As of December 31, 2011, the loan portfolio included 410 loans totaling $233 million.

Investment Activities

As of December 31, 2011, investment securities totaled $129.9 million. The Company’s investment portfolio is composed of residential mortgage-backed securities issued by the Federal National Mortgage Association (FNMA) and the Federal Home Loan Mortgage Corporation (FHLMC). The underlying loans for these securities are residential mortgages. These loans are dispersed throughout the United States.

Sources of Funds

The Bank’s deposit products include business checking, money market and certificates of deposit; personal checking, money market and certificates of deposits; attorney-client trust accounts; trust accounts; cash management and on-line banking, and debit cards. As of December 31, 2011, total deposits were $332.5 million. As of December 31, 2011, total core deposits, which include non-interest bearing demand deposits, interest bearing demand deposits and money market deposits and savings, were $285.6 million.

As of December 31, 2011, the Company had three certificates of deposit with the State of California Treasurer’s Office for a total of $34 million, which represented 10.2% and 13.2%, respectively, of total deposits. As of December 31, 2011, the Company had $27 million in Federal fund lines of credit available with other correspondent banks. As of December 31, 2011, the Company had a borrowing/credit facility secured by a blanket lien on eligible loans at the Federal Home Loan Bank (FHLB) of $53.7 million. As of December 31, 2011, the Company had $25 million long-term borrowings outstanding under this borrowing/credit facility with the FHLB. As of December 31, 2011, the Company had no overnight borrowings outstanding under this borrowing/credit facility. As of December 31, 2011, the Company also had $27 million in Federal fund lines of credit available with other correspondent banks.