Message from the Chairman
February 22, 2013
Dear Stockholder:
2012 was a record year for your company. FCB Bancorp, Inc. recorded net earnings of $2,807,059, a 40% increase over 2011 net earnings of $2,001,027. The earnings improvement in 2012 was attributable to quality loan growth of over $25 million and a reduction in cost of funding. Additionally, our asset quality remains solid and continues to compare favorably to our peer group. The bank was able to reduce its non-performing assets by over 36% during the year.
Deposits increased over $12 million during 2012, while the cost of funds decreased from 1.38% to 1.04%. Our net interest margin began the year at 3.03% and ended the year at 3.25%. The margin was improved due to a focus on reducing excess liquidity and reducing the cost of long term funding.
First Capital Bank of Kentucky views Community involvement as a primary objective of the bank and encourages its employees to give back to the community in which they live and work. The bank's employees continue to respond to this commitment as demonstrated by participating in nearly 1,400 hours of community service and civic events in 2012.
We welcome the opportunity to do business with any customers you may send our way. As always, we appreciate your continued support. Please feel free to call me at any time regarding our results or our prospects going forward.
Sincerely,
H. David Hale
Chairman, President & CEO
