CHARLOTTE, N.C., May 4 /PRNewswire-FirstCall/ -- First Trust Bank (OTC Bulletin Board: NCFT) reported results for the first quarter of 2010 today. The Bank reported net income of $528 thousand, or $0.11 per diluted share, for the quarter ended March 31, 2010 compared to net income of $638 thousand, or $0.14 per diluted share, for the first quarter of 2009. Earnings for the first quarter of 2010 were adversely affected by a $2.0 million provision to the allowance for loan losses.

Assets at March 31, 2010 were $461 million, an increase of $5 million, or 1%, from the $456 million reported at December 31, 2009. Loans were $325 million at the end of the first quarter of 2010, compared to $326 million at December 31, 2009.

As a percentage of gross loans outstanding the allowance for loan losses increased 11% from 2.24% at December 31, 2009 to 2.48% at March 31, 2010. At the same time, our net interest margin improved significantly due to strong asset/liability management, from 2.96% for the first quarter of 2009 to 4.02% for the first quarter of 2010. The Bank did not participate in the federal government's TARP program and remains well-capitalized by all regulatory standards.

"Although the local and national economies remain under significant stress, we hope for positive signs of improvement this year. As we navigate through this unprecedented period within banking, we remain focused on managing through the challenges, but also looking for the opportunities that lie ahead," said Jim Bolt, President and CEO.

First Trust Bank is a commercial bank whose target market is small to medium sized businesses and professionals. The Bank operates three banking offices at 1420 East Third Street and 2245 Rexford Road, Charlotte, NC and 108 Gateway Boulevard, 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)


                                                  December
                                    March 31,         31,
                                           2010    2009*
    SELECTED BALANCE SHEET DATA     (Unaudited)
      Total loans                      $324,864     $325,999
      Allowance for loan losses          (8,046)      (7,302)
      Investment securities              98,860      103,758
      Total assets                      461,008      455,810

      Deposits                          374,644      366,951
      Borrowed funds                     35,280       38,642
      Shareholders' equity               46,911       46,020

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

    Asset Quality
      Allowance for loan losses to
       total loans                         2.48%        2.24%
      Nonperforming loans to total
       loans                               3.58%        2.02%
      Nonperforming assets to total
       assets                              2.70%        1.62%

    SELECTED INCOME AND EXPENSE
     DATA                           March 31,    March 31,       %
                                           2010         2009  Change
    For the quarter ended           (Unaudited)  (Unaudited)
      Net interest income                $4,318       $3,246    33.03%
      Provision for loan losses           1,995          580   243.97%
      Other income                          159          172    -7.56%
      Other expenses                      1,813        1,840    -1.47%
      Income tax expense                    141          360   -60.83%
      Net income                           $528         $638   -17.24%

    Net interest margin                    4.02%        2.96%

    Per Share Data
      Net income per share-basic          $0.11        $0.14
      Net income per share-diluted        $0.11        $0.14

    *derived from Audited
     Financial Statements

SOURCE First Trust Bank