First City Bancorp, Inc. reports first quarter results.

MURFREESBORO, Tenn.--(BUSINESS WIRE)--May 1, 1995--First City Bancorp, Inc. (AMEX:FCT) today announced financial results for its first quarter ended March 31, 1995.

Net interest income increased 5.9% to $2,887,783 compared with $2,726,490 reported during the first quarter of 1994. Net income was down 24.3% to $338,805, or $0.18 per share, compared with net income of $447,693, or $0.26 per share, reported during the corresponding period in the previous year. This decline in net income is primarily due to the decision approved by the Board of Directors to repay a loan of the Employee Stock Ownership Plan secured by shares of common stock for which new accounting rules apply as explained more fully below.

At March 31, 1995, total assets were approximately $343 million, an increase of approximately $20 million from a year ago. Shareholders' equity was approximately $17.8 million. Deposits at March 31, 1995, amounted to approximately $304 million, up from $283 million a year ago. Loans at March 31, 1995, totaled approximately $159 million as compared to approximately $160 million at March 31, 1994.

First City Bancorp's continuing commitment to superior asset quality is shown by the fact that, at March 31, 1995, non-performing loans as a percent of total loans were only 0.20%, and non-performing assets as a percent of total assets were only 0.12%.

The capital accounts at March 31, 1995, reflect an after-tax unrealized loss in the available for sale securities portfolio of $1,327,477 compared to a $2,148,344 after-tax unrealized loss in the account at December 31, 1994. At March 31, 1995, the available for sale securities portfolio has increased in market value as a result of a decline in market interest rates and the shortening of the average lives of the amortized securities as the payment speeds increase and as the final maturity date of the securities in the portfolio become closer.

During 1994, new accounting requirements became effective for leveraged Employee Stock Ownership Plans (ESOP's) which had acquired shares of the sponsor's common stock after December 31, 1992. First City Bancorp's ESOP shares acquired in 1993 are subject to these new accounting provisions. These provisions require that, as First City makes contributions to the ESOP to repay the ESOP's debt, First City must recognize compensation expense based on the fair market value of the common shares that are committed to be released by the contribution, ratably over the period of time ESOP participants perform services. After reviewing the long-term potential impact of these new accounting requirements, the Board of Directors has determined to repay a $544,000 loan relating to the shares acquired in 1993 during 1995.

The additional compensation expense that will be recognized as a result of the prepayment of this loan will be prorated over each quarter of 1995. The increase in net after-tax expense for the first quarter of 1995, as a result of the acceleration of the ESOP debt payment, was $106,378. There will be similar increases in compensation expense for each of the remaining quarters of 1995, the amount of which will be dictated by the average market price of First City Bancorp's common stock during each respective quarter.

First City Bancorp, Inc. is a bank holding company whose subsidiaries include First City Bank and Citizens Bank. First City Bank, a Tennessee state-chartered bank is headquartered in Murfreesboro and also has locations in Smyrna, Nashville and Columbia. Citizens Bank is also a Tennessee state-chartered bank headquartered in Smithville with additional locations in Ardmore and Elkton. In addition, Tennessee Credit Corporation, a wholly-owned subsidiary of First City Bank, is a consumer finance company with offices in Murfreesboro, Lebanon, Dickson, Cookeville, Nashville, Franklin, Lewisburg, Tullahoma and McMinnville.

The common stock of First City Bancorp, Inc. is traded on the American Stock Exchange under the symbol "FCT". -0-

                        FIRST CITY BANCORP, INC.
                     Unaudited Financial Highlights

                                              Three Months Ended
                                                   March 31,
                                             1995            1994
Total interest income                     $6,187,210      $4,979,869
Total interest expense                     3,299,427       2,253,379
 Net interest income                       2,887,783       2,726,490
Provision for possible loan losses            59,070         173,413
 Income after provision for possible loan
  losses                                   2,828,713       2,553,077
Total non-interest income                    826,614         508,942
Total non-interest expense                 3,079,837       2,423,145
Income before income taxes                   575,490         638,874
Income tax expenses                          236,685         191,181
Net income                                $  338,805      $  447,693
Weighted-average primary common stock
 equivalents outstanding                   1,426,144       1,418,491
Primary earings per common share
 equivalent                                    $0.18           $0.26
Weighted-average fully diluted common
 stock equivalents outstanding             1,592,678       1,584,138
Fully diluted earnings per common share
 equivalent                                    $0.18           $0.25

                                                  March 31,
                                            1995            1994
Total assets                            $343,379,042    $322,993,707
Loans, net                              $158,674,586    $160,485,703
Deposits                                $303,990,285    $282,697,223
Shareholders' equity                    $ 17,797,753    $ 17,360,674

CONTACT: First City Bancorp, Inc., Murfreesboro

William E. Rowland, 615/898-1111

or

First City Bank, Murfreesboro

Robert B. Murfree, 615/898-1111