First City Bancorp, Inc. reports increased year-end results.

MURFREESBORO, Tenn.--(BUSINESS WIRE)--Jan. 26, 1995--First City Bancorp, Inc. (ASE:FCT) today announced financial results for the year ended December 31, 1994.

Net income increased 92.9% to $631,885, or $0.39 per share, during the fourth quarter of 1994 compared with net income of $327,602, or $0.18 per share for the corresponding quarter in 1993. Net interest income was up 14.3% to $3,238,236 during the fourth quarter of 1994 as compared to $2,832,693 for the fourth quarter of 1993.

Net income increased 39.2% to $2,138,927, or $1.28 per share, for the year ended December 31, 1994, as compared to $1,536,059, or $0.87 per share, during 1993. Included in the net income for 1993 was approximately $100,000 which was the result of a new accounting pronouncement implemented during the first quarter of 1993. This increased earnings per share by approximately $0.07 for 1993.

Return on common equity is 15.52% based on the net income for the year ended 1994 adjusted for preferred stock dividends.

At December 31, 1994, total assets were approximately $335 million as compared to approximately $313 million at the end of 1993. Deposits at December 31, 1994 were approximately $295 million, up from $274 million one year ago, and loans at December 31, 1994 reflected a decrease to approximately $153 million from a December 31, 1993 balance of approximately $157 million due to the sale of approximately $11 million of student loans during the fourth quarter of 1994. Shareholders' equity was approximately $17 million at the end of 1994.

Management expressed that it was pleased with the results of the fourth quarter of 1994 when compared to the corresponding quarter of last year. The continuing increase in the Company's net income reflects management's efforts in pricing the Company's products for a better return. These efforts are reflected in the increase in earnings per share to our shareholders. The Company's most positive trend continues to be the quality of its assets. The non-performing ratios compare very favorably with all of its competitors. Non-performing loans, as a percent of total loans, at December 31, 1994, were only 0.31% while non-performing assets, as a percent of total assets, were only 0.17% at December 31, 1994.

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 and Tullahoma.

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

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                      FIRST CITY BANCORP, INC.
                   Unaudited Financial Highlights

                          For the Year Ended  For the Three Months Ended
                             December 31             December 31
                           1994        1993        1994       1993
Total interest income   $22,486,296 $15,782,664 $6,328,312 $4,990,003
Total interest expense   10,574,533   7,137,637  3,090,076  2,157,310
 Net interest income     11,911,763   8,645,027  3,238,236  2,832,693
Provision for possible
 loan losses                561,899     176,346    137,424          0
Total non-interest income 2,904,809   1,537,991    748,070    458,135
Total non-interest
 expense                 10,965,115   7,849,333  2,808,487  2,867,138
Net income before income
 taxes and cumulative
 effect of change in
 accounting principle     3,289,558   2,157,339  1,040,395    423,690
Income tax expense        1,150,631     721,280    408,510     96,088
Net income before cumulative
 effect of change in
 accounting principle     2,138,927   1,436,059    631,885    327,602
Cumulative effect of change
 in accounting principle          0     100,000          0          0
Net income               $2,138,927  $1,536,059   $631,885   $327,602
Weighted average primary
 common share equivalents
 outstanding              1,418,090   1,464,503  1,419,462  1,474,634
Primary earnings per common
 share equivalent before
 cumulative effect of
 change in accounting
 principle                    $1.28      $0.80       $0.39      $0.18
Cumulative effect of change
 in accounting principle       0.00       0.07        0.00       0.00
Primary earnings per common
 share equivalent             $1.28      $0.87       $0.39      $0.18
Weighted average fully-diluted
 common share equivalent
 outstanding              1,583,821   1,630,930  1,585,104  1,640,537
Fully-diluted earnings per
 common share equivalent
 before cumulative effect
 of change in accounting
 principle                    $1.20       $0.76      $0.36      $0.17
Cumulative effect of change
 in accounting principle       0.00        0.06       0.00       0.00
Fully-diluted earnings per
 common share equivalent      $1.20       $0.82      $0.36      $0.17

                                            December 31
                                       1994             1993
Total assets                       $334,959,371     $313,237,560
Loans, net                          152,824,172      156,755,069
Deposits                            295,278,977      274,486,940
Convertible debt                      1,355,336        1,356,536
Other long term debt                  6,501,785        5,946,714
Shareholders equity:
  Convertible preferred equity        2,029,254        2,034,804
  Non-convertible preferred equity    4,069,600        3,755,000
  Common equity                      10,624,084       11,533,786
   Total shareholders' equity       $16,722,938      $17,323,590

CONTACT: First City Bancorp, Inc., Murfreesboro

William E. Rowland, 615/898-1111

or

First City Bank, Murfreesboro

Robert B. Murfree, 615/898-1111