1st Century Shares Surge Despite $3.5 Million Loss

Shares of 1st Century Bank in Century City rose 9 percent Tuesday after the company reported a fourth-quarter net loss of $3.5 million.

Shares of the bank closed at $3.70, up 30 cents for the day

The company lost a total of $7.8 million in 2009. In a statement, Chief Executive Alan Rothenberg said that number was primarily caused by a $6.2 million provision for loan losses and a $3.5 million deferred tax provision.

Excluding the provisions, the bank’s had net income of $1.8 million for 2009, compared with $1.7 million for 2008.

Rothenberg said that the bank was taking steps to improve its financial ratios. During 2009, core deposits increased 33 percent and the bank’s risk-based capital ratio was 21 percent, well above the regulatory standard of 10 percent for a well-capitalized financial institution.