FULLERTON, CA -- (MARKET WIRE) -- 05/09/08 -- RMG Capital Corporation (OTCBB: RMGC), the
holding company for Fullerton Community Bank, F.S.B. in Fullerton,
California, announced today their 1st quarter 2008 operating results.
According to company spokesman, R. O. Kusserow, first quarter 2008 Net
Income for RMG Capital Corporation totaled $1.28 million or $0.41 per share
as compared with $965,000 or $0.32 per share at 3/31/2007. The Net Income
growth represents a 33.2% increase over the same period a year ago. At
March 31, 2008, RMG had Total Assets of $721.9 million as compared with
$662.9 million at 3/31/2007. This is an increase of 8.9% over the same
period last year.
The net interest spread (net of amortized loan fees) for Fullerton
Community Bank at 3/31/08 was 3.84%. This compares to the net interest
spread at 3/31/07 of 3.35%. This increase was the result of improvements
in the Bank's funding costs.
As of 3/31/2008, the corporation's non-performing loans to total loans
ratio was 0.60% as compared to 0.34% for the same period in 2007.
President T. E. Meyer observed that the Bank received a substantial $2
million paydown on a non-performing loan in April, thus reducing this ratio
to approximately 0.39%. Meyer also noted that loan growth has moderated
the past two quarters. Despite an obviously softening economy, he added
that delinquencies have not notably increased.
The statements contained in this news release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are based
on current expectations, estimates and projections about RMG Capital
Corporation and its subsidiary Fullerton Community Bank's business based,
in part, on assumptions made by management. These statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions that are difficult to predict. Therefore, the Company's actual
results or performance may differ materially from what is expressed or
forecasted in such forward-looking statements due to numerous factors,
including, but not limited to the general business environment, the
California real estate market, competitive conditions in the business and
geographic areas in which the Company conducts its business and regulatory
actions or changes. The Company disclaims ay obligation to subsequently
revise or update any forward-looking statements to reflect events or
circumstances after the date of such statements or to reflect the
occurrence of anticipated or unanticipated events.
RMG Capital Corporation and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
Assets 3/31/2008 3/31/2007
------------- -------------
Cash and Due from Banks $ 12,586,000 $ 13,554,000
Federal Funds Sold $ 0 $ 2,000,000
------------- -------------
Total Cash and Cash Equivalents $ 12,586,000 $ 15,554,000
Loans, net $ 648,355,000 $ 569,393,000
Investment Securities HTM $ 998,000 $ 10,989,000
Mortgage-backed Securities AFS, at fair value $ 3,517,000 $ 8,465,000
Mortgage-backed Securities HTM $ 22,821,000 $ 28,185,000
Accrued Interest Receivable $ 3,646,000 $ 3,481,000
Investments in Real Estate, net $ 3,146,000 $ 3,785,000
Real Estate Acquired through Foreclosure $ 248,000 $ 0
Federal Home Loan Bank Stock, at cost $ 8,910,000 $ 5,959,000
Cash Surrender Value of Life Insurance $ 7,676,000 $ 7,377,000
Premises and Equipment, net $ 6,039,000 $ 5,848,000
Other Assets $ 3,925,000 $ 3,821,000
Land and Other Development Costs $ 0 $ 0
------------- -------------
Total Assets $ 721,867,000 $ 662,857,000
============= =============
Liabilities and Stockholders' Equity
Liabilities
Deposit Accounts $ 458,372,000 $ 494,095,000
FHLB Borrowings $ 185,100,000 $ 100,000,000
Other Borrowings $ 1,000,000 $ 1,000,000
Junior Subordinated Debentures $ 18,558,000 $ 18,558,000
Accounts Payable and Other Liabilities $ 8,824,000 $ 5,234,000
------------- -------------
Total Liabilities $ 671,854,000 $ 618,887,000
------------- -------------
Minority Interest and Noncontrolling Interest
in Cons Subs $ 0 $ 0
Commitments and Contingencies $ 0 $ 0
Stockholders' Equity
Preferred stock, no par value: 1,000,000
shares authorized: 5,000 issued and
outstanding $ 4,823,000 $ 4,823,000
Common Stock, no par value; 10,000,000
shares authorized: 2,806,133 shares issued
and outstanding $ 3,250,000 $ 1,066,000
Accumulated other comprehensive Income (Loss) $ 18,000 $ 39,000
Retained earnings $ 41,922,000 $ 38,042,000
------------- -------------
Total Stockholders' Equity $ 50,013,000 $ 43,970,000
------------- -------------
$ 721,867,000 $ 662,857,000
============= =============
RMG Capital Corporation and Subsidiaries
Consolidated Statement of Income (Unaudited)
3/31/2008 3/31/2007
------------- -------------
Interest Income:
Interest on loans $ 11,389,000 $ 10,704,000
Interest and dividends on investments $ 426,000 $ 693,000
------------- -------------
Total Interest Income $ 11,815,000 $ 11,397,000
------------- -------------
Interest Expense:
Interest on deposit accounts $ 2,929,000 $ 4,027,000
Other noninterest expense $ 2,169,000 $ 1,684,000
------------- -------------
Total Interest Expense $ 5,098,000 $ 5,711,000
------------- -------------
Net Interest Income before provision for
loan losses $ 6,717,000 $ 5,686,000
------------- -------------
Provision for loan losses $ 228,000 $ 3,000
------------- -------------
Net Interest Income $ 6,489,000 $ 5,683,000
------------- -------------
Noninterest Income:
Loan servicing and other fees $ 701,000 $ 824,000
Real estate operations, net $ 0 $ 0
Gain on sale of loans, net $ 93,000 $ 24,000
Other $ 87,000 $ 82,000
------------- -------------
Total Noninterest Income $ 881,000 $ 930,000
------------- -------------
Noninterest Expense:
Compensation and other employee benefits $ 3,661,000 $ 3,508,000
Occupancy $ 355,000 $ 351,000
Equipment rental and data processing $ 246,000 $ 265,000
Other expense and supplies $ 116,000 $ 165,000
Other $ 896,000 $ 763,000
------------- -------------
Total Noninterest Expense $ 5,274,000 $ 5,052,000
------------- -------------
Income before income tax provision $ 2,096,000 $ 1,561,000
Income tax provision $ 811,000 $ 596,000
------------- -------------
------------- -------------
Net Income $ 1,285,000 $ 965,000
============= =============
RMG Capital Corporation and Subsidiaries
Consolidated Statement of Cash Flows
(Unaudited)
3/31/2008 3/31/2007
------------- -------------
Cash Flows from Operating Activities
Net Income $ 1,285,000 $ 965,000
Adjustments to reconcile net income to net
cash provided by operating activities $ (3,592,000) $ (2,149,000)
------------- -------------
Net cash provided by operating activities $ (2,307,000) $ (1,184,000)
Net cash (used in) investing activities $ (11,541,000) $ 8,935,000
Net Cash provided by financing activities $ 15,839,000 $ (10,765,000)
------------- -------------
Net increase (decrease) in cash and cash
equivalents $ 1,991,000 $ (3,014,000)
Cash and Cash Equivalents
Beginning of year $ 10,595,000 $ 18,568,000
------------- -------------
End of period $ 12,586,000 $ 15,554,000
============= =============
Consolidated Statement of Stockholders'
Equity (Unaudited)
3/31/2008 3/31/2007
------------- -------------
Balance, Beginning of Year $ 48,903,000 $ 43,160,000
Net Income $ 1,285,000 $ 965,000
Common stock issued, net of offering
costs $ 54,000 $ 0
Preferred dividends, $22.20 (2008),
$22.60 (2007) per share $ (111,000) $ (113,000)
Common dividends, $0.05 (2008), $0.05
(2007) per share $ (140,000) $ (135,000)
Other comprehensive income, net of tax $ (10,000) $ 3,000
Other $ 32,000 $ 90,000
------------- -------------
Balance, End of Period $ 50,013,000 $ 43,970,000
============= =============
Contact:
Richard O. Kusserow
V.P. and Secretary
RMG Capital Corporation
(714) 578-7500
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