Lending Lifts First California Financial Group on 3Q

By Brian Browdie October 25, 2012, 11:47 a.m. EDT 1 Min Read

M&A

First California Seen in $200M Sale in Next Week

First California Financial Group is on the verge of announcing an agreement to sell itself, possibly to UnionBanCal or CVB Financial — and not hostile bidder PacWest, sources familiar with the matter say.

By Matthew Monks

September 20
M&A

First California Omits Any Mention of Hostile Bid in M&A Doc

First California Financial Group faces investor pressure to sell and an unsolicited bid from PacWest Bancorp. Yet it danced around its vulnerable M&A status in a proxy filing on its deal to buy Premier Service Bank.

By Matthew Monks

August 23
M&A

Seven Banks that Could Bag First California

First California CEO C.G. Kum has already received a hostile offer from PacWest's Matt Wagner, and other bidders — including U.S. Bancorp, Umpqua and City National — could join the fray.

By Matthew Monks

August 3
Community banking

KBW Helps First California Weigh a Possible Sale

First California Financial Group (FCAL) — under pressure from activist investors to find a buyer — hired Keefe, Bruyette & Woods (KBW) to explore a sale or other strategic options.

By Matthew Monks

August 1

A pickup in lending lifted First California Financial Group (FCAL) in Westlake Village in the third quarter.

Earnings rose 250%, to $3.1 million, from the same period a year earlier, the $2 billion-asset company said Thursday.

First California recorded net interest income of $17 million, up 9% from a year earlier. Its net interest margin fell 14 basis points, to 3.91%, reflecting declining yields.

Noninterest income fell 8.7%, to $2.1 million, from the third quarter of 2011. Noninterest expense rose 6.7%, to $12.8 million. The increase primarily reflected an increase in legal fees and expenses related to shareholder matters and higher deposit insurance premiums, according to the company.

First California reported an efficiency ratio of 68.37% in the third quarter, roughly unchanged from the same period last year.

Loans rose 10%, to $1.1 billion, from a year earlier. The provision for loan losses fell 67.7%, to $500,000. Chargeoffs fell 71%, to $605 million.

"Earnings for the 2012 third quarter grew significantly over the same period last year and return on average tangible common equity improved to 10.25% from 4.25%," C.G. Kum, First California's chief executive officer, said in a news release. "Moreover, we were able to grow net interest income and fee income, as well as our loan portfolio and deposits."

"Our solid financial performance continues to demonstrate the successful strategies we implemented to enhance profitability, despite economic headwinds and the added expense and challenges related to ongoing shareholder matters," Kum added.

First California is said to be seeking to sell itself following a hostile bid in May for the company by PacWest Bancorp (PACW). In August, First California, under pressure from investors to find a buyer, hired Keefe, Bruyette & Woods (KBW) to explore a sale or other strategic options.

Brian Browdie