RMG Capital Corporation Announces 1st Quarter 2008 Operating Results

FULLERTON, CA -- (MARKET WIRE) -- 05/09/08 -- RMG Capital Corporation (OTCBB: RMGC), the holding company for Fullerton Community Bank, F.S.B. in Fullerton, California, announced today their 1st quarter 2008 operating results.

According to company spokesman, R. O. Kusserow, first quarter 2008 Net Income for RMG Capital Corporation totaled $1.28 million or $0.41 per share as compared with $965,000 or $0.32 per share at 3/31/2007. The Net Income growth represents a 33.2% increase over the same period a year ago. At March 31, 2008, RMG had Total Assets of $721.9 million as compared with $662.9 million at 3/31/2007. This is an increase of 8.9% over the same period last year.

The net interest spread (net of amortized loan fees) for Fullerton Community Bank at 3/31/08 was 3.84%. This compares to the net interest spread at 3/31/07 of 3.35%. This increase was the result of improvements in the Bank's funding costs.

As of 3/31/2008, the corporation's non-performing loans to total loans ratio was 0.60% as compared to 0.34% for the same period in 2007. President T. E. Meyer observed that the Bank received a substantial $2 million paydown on a non-performing loan in April, thus reducing this ratio to approximately 0.39%. Meyer also noted that loan growth has moderated the past two quarters. Despite an obviously softening economy, he added that delinquencies have not notably increased.

The statements contained in this news release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about RMG Capital Corporation and its subsidiary Fullerton Community Bank's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, the Company's actual results or performance may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including, but not limited to the general business environment, the California real estate market, competitive conditions in the business and geographic areas in which the Company conducts its business and regulatory actions or changes. The Company disclaims ay obligation to subsequently revise or update any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.

RMG Capital Corporation and Subsidiaries Consolidated Statements of Financial Condition (Unaudited)

Assets 3/31/2008 3/31/2007 ------------- -------------Cash and Due from Banks $ 12,586,000 $ 13,554,000 Federal Funds Sold $ 0 $ 2,000,000 ------------- ------------- Total Cash and Cash Equivalents $ 12,586,000 $ 15,554,000

Loans, net $ 648,355,000 $ 569,393,000 Investment Securities HTM $ 998,000 $ 10,989,000 Mortgage-backed Securities AFS, at fair value $ 3,517,000 $ 8,465,000 Mortgage-backed Securities HTM $ 22,821,000 $ 28,185,000 Accrued Interest Receivable $ 3,646,000 $ 3,481,000 Investments in Real Estate, net $ 3,146,000 $ 3,785,000 Real Estate Acquired through Foreclosure $ 248,000 $ 0 Federal Home Loan Bank Stock, at cost $ 8,910,000 $ 5,959,000 Cash Surrender Value of Life Insurance $ 7,676,000 $ 7,377,000 Premises and Equipment, net $ 6,039,000 $ 5,848,000 Other Assets $ 3,925,000 $ 3,821,000 Land and Other Development Costs $ 0 $ 0 ------------- ------------- Total Assets $ 721,867,000 $ 662,857,000 ============= ============ Liabilities and Stockholders' Equity Liabilities Deposit Accounts $ 458,372,000 $ 494,095,000 FHLB Borrowings $ 185,100,000 $ 100,000,000 Other Borrowings $ 1,000,000 $ 1,000,000 Junior Subordinated Debentures $ 18,558,000 $ 18,558,000 Accounts Payable and Other Liabilities $ 8,824,000 $ 5,234,000 ------------- ------------- Total Liabilities $ 671,854,000 $ 618,887,000 ------------- ------------- Minority Interest and Noncontrolling Interest in Cons Subs $ 0 $ 0

Commitments and Contingencies $ 0 $ 0

Stockholders' Equity Preferred stock, no par value: 1,000,000 shares authorized: 5,000 issued and outstanding $ 4,823,000 $ 4,823,000 Common Stock, no par value; 10,000,000 shares authorized: 2,806,133 shares issued and outstanding $ 3,250,000 $ 1,066,000 Accumulated other comprehensive Income (Loss) $ 18,000 $ 39,000 Retained earnings $ 41,922,000 $ 38,042,000 ------------- ------------- Total Stockholders' Equity $ 50,013,000 $ 43,970,000 ------------- ------------- $ 721,867,000 $ 662,857,000 ============= ============ RMG Capital Corporation and Subsidiaries Consolidated Statement of Income (Unaudited) 3/31/2008 3/31/2007 ------------- -------------Interest Income: Interest on loans $ 11,389,000 $ 10,704,000 Interest and dividends on investments $ 426,000 $ 693,000 ------------- ------------- Total Interest Income $ 11,815,000 $ 11,397,000 ------------- ------------- Interest Expense: Interest on deposit accounts $ 2,929,000 $ 4,027,000 Other noninterest expense $ 2,169,000 $ 1,684,000 ------------- ------------- Total Interest Expense $ 5,098,000 $ 5,711,000 ------------- ------------- Net Interest Income before provision for loan losses $ 6,717,000 $ 5,686,000 ------------- ------------- Provision for loan losses $ 228,000 $ 3,000 ------------- ------------- Net Interest Income $ 6,489,000 $ 5,683,000 ------------- ------------- Noninterest Income: Loan servicing and other fees $ 701,000 $ 824,000 Real estate operations, net $ 0 $ 0 Gain on sale of loans, net $ 93,000 $ 24,000 Other $ 87,000 $ 82,000 ------------- ------------- Total Noninterest Income $ 881,000 $ 930,000 ------------- ------------- Noninterest Expense: Compensation and other employee benefits $ 3,661,000 $ 3,508,000 Occupancy $ 355,000 $ 351,000 Equipment rental and data processing $ 246,000 $ 265,000 Other expense and supplies $ 116,000 $ 165,000 Other $ 896,000 $ 763,000 ------------- ------------- Total Noninterest Expense $ 5,274,000 $ 5,052,000 ------------- ------------- Income before income tax provision $ 2,096,000 $ 1,561,000

Income tax provision $ 811,000 $ 596,000 ------------- ------------- ------------- ------------- Net Income $ 1,285,000 $ 965,000 ============= ============ RMG Capital Corporation and Subsidiaries Consolidated Statement of Cash Flows (Unaudited)

3/31/2008 3/31/2007 ------------- -------------Cash Flows from Operating Activities Net Income $ 1,285,000 $ 965,000 Adjustments to reconcile net income to net cash provided by operating activities $ (3,592,000) $ (2,149,000) ------------- ------------- Net cash provided by operating activities $ (2,307,000) $ (1,184,000)

Net cash (used in) investing activities $ (11,541,000) $ 8,935,000

Net Cash provided by financing activities $ 15,839,000 $ (10,765,000) ------------- ------------- Net increase (decrease) in cash and cash equivalents $ 1,991,000 $ (3,014,000)

Cash and Cash Equivalents Beginning of year $ 10,595,000 $ 18,568,000 ------------- ------------- End of period $ 12,586,000 $ 15,554,000 ============= ============ Consolidated Statement of Stockholders' Equity (Unaudited)

3/31/2008 3/31/2007 ------------- -------------Balance, Beginning of Year $ 48,903,000 $ 43,160,000 Net Income $ 1,285,000 $ 965,000 Common stock issued, net of offering costs $ 54,000 $ 0 Preferred dividends, $22.20 (2008), $22.60 (2007) per share $ (111,000) $ (113,000) Common dividends, $0.05 (2008), $0.05 (2007) per share $ (140,000) $ (135,000) Other comprehensive income, net of tax $ (10,000) $ 3,000 Other $ 32,000 $ 90,000 ------------- -------------Balance, End of Period $ 50,013,000 $ 43,970,000 ============= ============

Contact: Richard O. Kusserow V.P. and Secretary RMG Capital Corporation (714) 578-7500

2008-05-09 19:09:42 0358090 MARKETWIRE