SOUTH SAN FRANCISCO, CA--(Marketwired - Apr 28, 2014) - FNB Bancorp (
"During the first quarter of 2014, the Bank experienced strong loan demand and was able to grow our net loans outstanding. At the same time, higher rate brokered time deposits acquired in our Oceanic Bank acquisition have continued to mature. Overall, our deposit portfolio has performed well, with the decrease in total deposits in line with management's projections. During the first quarter of 2014, there was an increase of $10,000,000 in the outstanding wholesale borrowings obtained from the Federal Home Loan Bank, which totaled $25,000,000 as of March 31, 2014. The Bank intends to slowly reduce the amount of our outstanding borrowings during 2014 by utilizing funds derived from principal repayments that occur within our investment portfolio and the slow and steady acquisition of additional deposit accounts and dollars. During the first quarter of 2014, we also redeemed all the outstanding preferred stock held by the U.S. Treasury. The dividend rate increased from 5% to 9% effective January 1, 2014, so it no longer made sense to keep this source of capital. In order to keep the Bank funded at a high level of common equity, during the first quarter of 2014, FNB Bancorp obtained a $6,000,000 holding company loan. The proceeds from this loan were contributed to the Bank as an additional capital contribution," stated Tom McGraw, Chief Executive Officer.
| Financial Highlights: First Quarter, 2014 | (Unaudited) | |||||||||||||||||
| Consolidated Statements of Earnings (in '000s except earnings per share amounts) |
Three months ended March 31, 2014 |
Three months ended December 31, 2013 |
Three months ended March 31, 2013 |
Three months ended December 31, 2012 |
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| Interest income | $ | 8,983 | $ | 9,375 | $ | 9,397 | $ | 9,467 | ||||||||||
| Interest expense | (469 | ) | (514 | ) | (682 | ) | (727 | ) | ||||||||||
| Net interest income | 8,514 | 8,861 | 8,715 | 8,740 | ||||||||||||||
| Provision for loan losses | (75 | ) | (50 | ) | (600 | ) | (633 | ) | ||||||||||
| Noninterest income | 1,040 | 1,137 | 976 | 1,060 | ||||||||||||||
| Noninterest expense | (6,842 | ) | (6,954 | ) | (7,739 | ) | (7,557 | ) | ||||||||||
| Interest before income taxes | 2,637 | 2,994 | 1,352 | 1,610 | ||||||||||||||
| Provision for income tax | (803 | ) | (995 | ) | (422 | ) | (264 | ) | ||||||||||
| Net earnings | 1,834 | 1,999 | 930 | 1,346 | ||||||||||||||
| Dividends and discount accretion on preferred stock | (170 | ) | (119 | ) | (158 | ) | (157 | ) | ||||||||||
| Net earnings available to common shareholders | $ | 1,664 | $ | 1,880 | $ | 772 | $ | 1,189 | ||||||||||
| Basic earnings per share | $0.42 | $0.47 | $0.20 | $0.31 | ||||||||||||||
| Diluted earnings per share | $0.40 | $0.46 | $0.19 | $0.30 | ||||||||||||||
| Average assets | $ | 889,553 | $ | 912,819 | $ | 893,982 | $ | 900,571 | ||||||||||
| Average equity | $ | 88,995 | $ | 93,679 | $ | 95,378 | $ | 95,206 | ||||||||||
| Return on average assets (annualized) | 0.75 | % | 0.82 | % | 0.35 | % | 0.53 | % | ||||||||||
| Return on average equity (annualized) | 7.48 | % | 8.03 | % | 3.24 | % | 5.00 | % | ||||||||||
| Efficiency ratio | -72 | % | -70 | % | -80 | % | -77 | % | ||||||||||
| Net interest margin (taxable equivalent) | 4.24 | % | 4.24 | % | 4.52 | % | 4.46 | % | ||||||||||
| Average shares outstanding | 3,985 | 3,965 | 3,903 | 3,882 | ||||||||||||||
| Average diluted shares outstanding | 4,126 | 4,088 | 3,996 | 3,963 | ||||||||||||||
| Consolidated Balance Sheets (in '000s) |
(Unaudited) As of March 31, 2014 |
* As of December 31, 2013 |
(Unaudited) As of March 31, 2013 |
* As of December 31, 2012 |
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| Assets: | ||||||||||||||
| Cash and cash equivalents | $ | 19,244 | $ | 14,007 | $ | 39,092 | $ | 27,861 | ||||||
| Interest-bearing time deposits with | ||||||||||||||
| other financial institutions | 4,805 | 5,543 | 9,713 | 13,216 | ||||||||||
| Securities available for sale, at fair value | 258,184 | 263,988 | 246,460 | 234,945 | ||||||||||
| Loans, net | 566,861 | 552,343 | 546,278 | 541,563 | ||||||||||
| Premises, equipment and leasehold improvements, net | 12,533 | 12,512 | 12,634 | 12,706 | ||||||||||
| Other real estate owned, net | 2,478 | 5,318 | 6,668 | 6,650 | ||||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||||
| Other equity securities | 5,307 | 5,300 | 5,338 | 5,464 | ||||||||||
| Accrued interest receivable | 3,758 | 3,808 | 3,751 | 3,760 | ||||||||||
| Prepaid expenses | 631 | 701 | 1,116 | 1,372 | ||||||||||
| Bank owned life insurance | 12,248 | 12,151 | 11,880 | 11,785 | ||||||||||
| Other assets | 13,658 | 14,418 | 12,707 | 14,177 | ||||||||||
| Total assets | $ | 901,548 | $ | 891,930 | $ | 897,478 | $ | 875,340 | ||||||
| Liabilities and stockholders' equity: | ||||||||||||||
| Deposits: | ||||||||||||||
| Demand and NOW | $ | 281,366 | $ | 279,269 | $ | 255,511 | $ | 253,849 | ||||||
| Savings and money market | 380,227 | 370,194 | 372,112 | 343,437 | ||||||||||
| Time | 112,352 | 124,152 | 162,802 | 171,066 | ||||||||||
| Total deposits | 773,945 | 773,615 | 790,425 | 768,352 | ||||||||||
| Federal Home Loan Bank advances | 25,000 | 15,000 | 502 | 1,220 | ||||||||||
| Bank borrowings | 6,000 | - | - | - | ||||||||||
| Accrued expenses and other liabilities | 8,977 | 9,066 | 10,682 | 10,410 | ||||||||||
| Total liabilities | 813,922 | 797,681 | 801,609 | 779,982 | ||||||||||
| Stockholders' equity | 87,626 | 94,249 | 95,869 | 95,358 | ||||||||||
| Total liab. and stockholders' equity | $ | 901,548 | $ | 891,930 | $ | 897,478 | $ | 875,340 | ||||||
| * Taken from the audited annual financial statements | ||||||||||||||
| Other Financial Information | ||||||||||||||
| Allowance for loan losses | $ | 9,897 | $ | 9,879 | $ | 9,357 | $ | 9,124 | ||||||
| Nonperforming assets | $ | 9,447 | $ | 12,669 | $ | 19,459 | $ | 19,142 | ||||||
| Total gross loans | $ | 576,758 | $ | 562,222 | $ | 555,635 | $ | 550,687 | ||||||
"During the first quarter, the Bank's problem assets continued to decrease. Borrowers are making additional investments in our service area, in particular in real estate investments. The skyline in San Francisco is filled with cranes building large residential housing towers. Loans are up for the quarter and overall, our assets grew by approximately 1.1% during the quarter. The Bank's Tier 1 leverage capital increased during the first quarter by $309,000 despite the redemption of the preferred stock by FNB Bancorp during the quarter. At March 31, 2014, the Bank's leverage capital stood at 9.96%. We remain 'well capitalized' by regulatory definitions in all our regulatory capital requirements. The Oceanic Bank purchase has been fully integrated into the operations of the Company and our capital is growing in line with our growth in assets. Steps taken by management to prudently reduce our future noninterest expenses are currently underway. To be successful in our current environment, we understand that we must meet or exceed our customers' expectations in their interaction with the Bank. For over 50 years, we have built our organization around the idea that we must continually earn our customer's business," continued CEO Tom McGraw.
Cautionary Statement: This release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those stated herein. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from those projected. Risks and uncertainties which could impact future financial performance include, among others, (a) competitive pressures in the banking industry; (b) changes in the interest rate environment; (c) general economic conditions, either nationally or regionally or locally, including fluctuations in real estate values; (d) changes in the regulatory environment; (e) changes in business conditions or the securities markets and inflation; (f) possible shortages of gas and electricity at utility companies operating in the State of California, and (g) the effects of terrorism, including the events of September 11, 2001, and thereafter, and the conduct of war on terrorism by the United States and its allies. Therefore, the information set forth herein, together with other information contained in the periodic reports filed by FNB Bancorp with the Securities and Exchange Commission, should be carefully considered when evaluating its business prospects. FNB Bancorp undertakes no obligation to update any forward-looking statements contained in this release.
Contact Information:
Contacts:
Tom McGraw
Chief Executive Officer
(650) 875-4864
Dave Curtis
Chief Financial Officer
(650) 875-4862