Message from the Chairman
February 23, 2010Dear Stockholder:
2009 was another difficult year in the banking industry. The interest rate environment provided ongoing margin pressure throughout the year. The declining housing market and a continued deterioration in the commercial real estate market negatively impacted the financial industry's credit quality. Our asset quality, however, remained solid and continues to compare favorably to our peer group. We are cautiously optimistic going into 2010 that these positive results will continue.
The bank's net earnings were $1,241,526 for 2009 versus $932,768 for the year 2008, a 33% increase in spite of a $580,000 increase in FDIC insurance premiums and the opening of a new branch in Middletown on January 12, 2009. All the retail branches, including the Middletown branch, were profitable in 2009. Total deposits grew by $31.4 million during the year. We continue to shift more of our deposits into checking and money market accounts, which lowers our cost of funds and improves our net interest margin. Transaction accounts grew by almost $100 million, which allowed us to decrease high cost certificates of deposit by over $67 million. The liquidity ratio increased from 7.86% to 10.03%.
The bank originated over $75 million in portfolio loans and $42 million in secondary market loans in 2009. Net loans increased by over $1.8 million during the year.
On January 20, 2010, the Board of Directors of FCB Bancorp, Inc. declared a dividend of $0.40 per share, payable to stockholders of record as of February 1, 2010, which was paid on February 19, 2010.
First Capital Bank of Kentucky continues to take great pride in its community involvement and strives to give back to each community in which its employees live and work. In 2009, 1,266 community service hours were performed by an average staff of 75. Each year, community involvement ranks as a major bank objective, and our management team is committed to emphasizing the importance of employees' participation in community and civic events.
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.
Sincerely,
H. David Hale
Chairman, President & CEO
