CHARLOTTE, N.C., Oct. 29 /PRNewswire-FirstCall/ -- First Trust Bank (OTC: NCFT) reported results for the third quarter of 2010 today. The Bank reported a net loss of $556 thousand, or ($0.12) per diluted share, for the quarter ended September 30, 2010 compared to net income of $935 thousand, or $0.20 per diluted share, for the third quarter of 2009.

Assets at September 30, 2010 totaled $455 million compared to $456 million at December 31, 2009. Gross loans totaled $301 million at quarter-end compared to $326 million at year-end, 2009. The decrease in loans resulted primarily from payments and maturities along with management's efforts to reduce credit exposure and the continuing decline in loan demand.

The net loss for the third quarter was primarily the result of a $3.9 million provision to the allowance for loan losses compared to a provision of $1.1 million made during the third quarter of 2009. The allowance for loan losses totaled 2.69% at September 30, 2010 compared to 1.86% at September 30, 2009 and 2.24% at December 31, 2009. The net interest margin for the third quarter was 3.61% compared to 3.68% for the same quarter last year.

The Bank's capital position continues to be strong. The Bank is considered "well-capitalized" by all regulatory standards. Total risk based capital improved to 14.00% at September 30, 2010, compared to 13.71% at September 30, 2009 and December 31, 2009.

"Our third quarter results reflect the current economic cycle and our continued determination to quickly identify and resolve potential credit issues in a timely manner. While there are some indications of improvement in the local economy, we continue to focus on capital preservation and asset quality remediation," 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)


                                      September
                                         30,      December 31,
                                            2010           2009
                                                  (Derived from
                                                      audited
                                                     financial
    SELECTED BALANCE SHEET DATA     (Unaudited)    statements)
      Total loans                       $301,072       $325,999
      Allowance for loan losses           (8,084)        (7,302)
      Investment securities               97,656        103,758
      Total assets                       454,947        455,810

      Deposits                           374,341        366,951
      Borrowed funds                      29,645         38,642
      Shareholders' equity                46,076         46,020

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

    Asset Quality
      Allowance for loan losses to
       total loans                          2.69%          2.24%
      Nonperforming loans to total
       loans                                7.39%          2.02%
      Nonperforming assets to total
       assets                               6.29%          1.62%

    SELECTED INCOME AND EXPENSE       September
     DATA                                30,      September 30,     %
                                            2010           2009  Change
    For the quarter ended            (Unaudited)   (Unaudited)
      Net interest income                 $3,965         $4,166    -4.82%
      Provision for loan losses            3,940          1,055   273.46%
      Other income                           839            172   387.79%
      Other expenses                       2,100          1,902    10.41%
      Income tax expense (benefit)          (680)           446  -252.47%
      Net income (loss)                    $(556)          $935  -159.47%

    Net interest margin                     3.61%          3.68%

    Per Share Data
      Net income (loss) per share-
       basic                              $(0.12)         $0.20
      Net income (loss) per share-
       diluted                            $(0.12)         $0.20


                                      September
                                         30,      September 30,     %
                                            2010           2009  Change
    For the year to date ended       (Unaudited)   (Unaudited)
      Net interest income                $12,395        $11,142    11.25%
      Provision for loan losses           10,066          2,283   340.91%
      Other income                         1,150            624    84.29%
      Other expenses                       5,780          5,740     0.70%
      Income tax expense (benefit)          (744)         1,305  -157.01%
      Net income (loss)                  $(1,557)        $2,438  -163.86%

    Net interest margin                     3.78%          3.33%

    Per Share Data
      Net income (loss) per share-
       basic                              $(0.33)         $0.52
      Net income (loss) per share-
       diluted                            $(0.33)         $0.52

SOURCE First Trust Bank