First Trust Bank Reports Second Quarter Results

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Jul 29, 2010, 12:00 ET

CHARLOTTE, N.C., July 29 /PRNewswire-FirstCall/ -- First Trust Bank (OTC Bulletin Board: NCFT) reported results for the second quarter of 2010 today. The Bank reported a net loss of $1.5 million, or $0.32 per diluted share, for the quarter ended June 30, 2010 compared to net income of $865 thousand, or $0.18 per diluted share, for the second quarter of 2009.

Assets at June 30, 2010 were $458 million compared to $456 million at December 31, 2009. Loans were $314 million at quarter-end compared to $326 million at year-end, 2009. This decline is the result of a reduction in outstanding loans in conjunction with a decline in loan demand during the first half of 2010.

The net loss for the second quarter is primarily the result of a $4.1 million provision to the allowance for loan losses compared to a provision of $648 thousand during the second quarter of 2009. The allowance for loan losses totaled 3.21% at June 30, 2010 compared to 1.60% at June 30, 2009. Our pre-tax, pre-provision for loan loss income stream, primarily net interest income, remains approximately $2.4 million per quarter. The net interest margin increased 35 basis points from 3.35% for the same period in 2009 to 3.70% for the second quarter of 2010.

"Although the second quarter loss is a reflection of the current economic cycle and our determination to quickly identify and resolve potential credit issues in a timely manner, our operation remains strong and our capital levels remain above well-capitalized under all regulatory guidelines. As we navigate through these economic challenges, we remain focused on our long-term strategy of operating in a safe and sound manner," said Jim Bolt, President and CEO.

First Trust Bank specializes in serving the banking needs of small businesses and professionals in the Charlotte, Mooresville, Davidson, Cornelius, Huntersville, Monroe and Concord markets. The Bank operates three banking offices in the Charlotte, North Carolina area with locations at 1420 East Third Street and 2245 Rexford Road, Charlotte, NC and 108 Gateway Boulevard in Mooresville, NC.

For additional information, please contact Jean Galloway or Jim Bolt at 704-377-3936 (fax 704-377-8869) or by e-mail at http://www.firsttrustnc.com.

Information in this press release may contain forward looking statements that might involve risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include without limitation, the effects of future economic conditions, governmental fiscal and monetary policies, legislative and regulatory changes, and changes in interest rates.

SELECTED FINANCIAL DATA
FIRST TRUST BANK
(dollars in thousands, except per share)

		June 30,	December 31,
		2010	2009
SELECTED BALANCE SHEET DATA		(Unaudited)	(Audited)
	Total loans	$ 314,321	$ 325,999
	Allowance for loan losses	(10,103)	(7,302)
	Investment securities	94,521	103,758
	Total assets	458,483	455,810

	Deposits	373,475	366,951
	Borrowed funds	34,713	38,642
	Shareholders' equity	45,907	46,020

Shares Outstanding at period end		4,775,898	4,775,898

Asset Quality
	Allowance for loan losses to total loans	3.21%	2.24%
	Nonperforming loans to total loans	8.73%	2.02%
	Nonperforming assets to total assets	7.02%	1.62%

SELECTED INCOME AND EXPENSE DATA		June 30,	June 30,	%
		2010	2009	Change
For the quarter ended		(Unaudited)	(Unaudited)
	Net interest income	$ 4,112	$ 3,730	10.24%
	Provision for loan losses	4,131	648	537.50%
	Other income	152	280	-45.71%
	Other expenses	1,867	1,998	-6.56%
	Income tax expense (benefit)	(205)	499	-141.08%
	Net income (loss)	$ (1,529)	$ 865	-276.76%

Net interest margin		3.70%	3.35%

Per Share Data
	Net income (loss) per share-basic	$ (0.32)	$ 0.18
	Net income (loss) per share-diluted	$ (0.32)	$ 0.18

		June 30,	June 30,	%
		2010	2009	Change
For the year to date ended		(Unaudited)	(Unaudited)
	Net interest income	$ 8,430	$ 6,976	20.84%
	Provision for loan losses	6,126	1,228	398.86%
	Other income	311	452	-31.19%
	Other expenses	3,680	3,838	-4.12%
	Income tax expense (benefit)	(64)	859	-107.45%
	Net income (loss)	$ (1,001)	$ 1,503	-166.60%

Net interest margin		3.86%	3.15%

Per Share Data
	Net income (loss) per share-basic	$ (0.21)	$ 0.33
	Net income (loss) per share-diluted	$ (0.21)	$ 0.32