SOURCE: FNB Bancorp

FNB Bancorp

April 27, 2016 16:00 ET

First National Bank of Northern California Reports First Quarter 2016 Earnings of $0.55 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwired - Apr 27, 2016) - FNB Bancorp (OTCQB: FNBG), parent company of First National Bank of Northern California (the "Bank"), today announced net earnings available to common shareholders for the first quarter of 2016 of $2,567,000 or $0.55 per diluted share, compared to net earnings available to common shareholders of $1,799,000 or $0.39 per diluted share for the first quarter of 2015.

The first quarter of 2016 operating results, when compared to the same period a year ago, were positively affected by the completion of our America California Bank ("ACB") acquisition that occurred in September, 2015. The ACB acquisition provided an opportunity for the Company to leverage our balance sheet and increase our interest earning assets and interest bearing liabilities, without a significant increase in operating expense. During the first quarter of 2016, our net interest income was $10.7 million, an increase of $483,000 from the fourth quarter of 2015.

"During the first quarter of 2016, the Company was able to grow our loans, net of allowance, by $11.2 million. This growth was achieved through our internal loan origination efforts. Also during the first quarter of 2016 we were able to increase our combined DDA and NOW deposit accounts by $13.2 million. The combination of all these things are what helped us to increase our net interest income during the quarter. Comparing the first quarter of 2016 with the fourth quarter of 2015, we were able to increase noninterest income slightly above fourth quarter levels, but noninterest expenses were significantly reduced due to the payment of non-recurring post acquisition expenses during the fourth quarter of 2015," stated CEO Tom McGraw.

"During the first quarter of 2016, we were able to reduce our non-accrual loans from levels experienced at year-end. Nonperforming assets were also reduced from levels experienced at year-end. The Bank has worked hard to adhere to prudent underwriting standards as we continue to grow our loan portfolio. Our allowance for loan losses has remained relatively constant during the quarter. The first quarter provision for loan and lease losses was $75,000 and management believes the level of reserves are sufficient to meet expected losses inherent in our loan portfolio at March 31, 2016," continue Tom McGraw.

     
     
CONSOLIDATED BALANCE SHEETS   (Unaudited)
(Dollars In Thousands)   As of
    March 31,
    2016   2015
ASSETS            
  Cash and due from banks   $ 37,737   $ 30,640
  Interest-bearing time deposits with financial institutions     205     2,783
  Securities available for sale, at fair value     329,396     264,499
  Loans, net of deferred loan fees and allowance for loan losses     733,991     575,606
  Bank Premises, equipment and leasehold improvements, net     10,320     10,685
  Bank owned life insurance     15,946     12,594
  Other equity securities     6,756     5,773
  Accrued interest receivable     4,603     3,744
  Other real estate owned     1,055     770
  Goodwill     4,580     1,841
  Prepaid expenses     945     1,016
  Other assets     15,444     12,402
    TOTAL ASSETS   $ 1,160,978   $ 922,353
             
LIABILITIES            
  Deposits:            
    Demand, noninterest bearing   $ 265,947   $ 222,400
    Demand, interest bearing     113,337     90,914
    Savings and money market     526,557     384,799
    Time     124,410     106,511
      Total Deposits     1,030,251     804,624
  Note payable     4,800     5,400
  Accrued expenses and other liabilities     17,230     12,292
      Total Liabilities     1,052,281     822,316
STOCKHOLDERS' EQUITY            
  Common stock, no par value:     75,240     67,242
  Retained Earnings     29,666     29,944
  Accumulated other comprehensive earnings, net of tax     3,791     2,851
    Total Stockholders' Equity     108,697     100,037
    TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,160,978   $ 922,353
                 
                 
                       
                       
CONSOLIDATED STATEMENTS OF EARNINGS   (Unaudited)      
(Dollars In Thousands, Except Per Share Amounts)   Three Months Ended   Twelve Months Ended  
    March 31,   December 31,  
    2016     2015   2015     2014  
INTEREST INCOME                              
  Interest and fees on loans   $ 9,871     $ 7,710   $ 33,235     $ 31,355  
  Interest on dividends and securities     1,685       1,344     6,008       5,423  
  Interest on deposits with other financial institutions     1       14     39       81  
    Total interest income     11,557       9,068     39,282       36,859  
                               
INTEREST EXPENSE                              
  Deposits     783       454     2,359       1,884  
  Federal Home Loan Bank advances     8       1     9       17  
  Interest on note payable     57       59     229       192  
    Total interest expense     848       514     2,597       2,093  
NET INTEREST INCOME     10,709       8,554     36,685       34,766  
  Provision for (recovery of) loan losses     75       75     (305 )     (1,020 )
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES     10,634       8,479     36,990       35,786  
NONINTEREST INCOME                              
  Service charges     621       611     2,501       2,548  
  Gain on sale of premises     -       -     -       2,085  
  Net gain on sale of available-for-sale securities     184       69     339       138  
  Earnings on bank owned life insurance     100       84     364       359  
  Break-up fee from terminated definitive agreement     -       -     -       500  
  Other income     237       314     1,292       959  
    Total Noninterest Income     1,142       1,078     4,496       6,589  
NONINTEREST EXPENSES                              
  Salaries and employee benefits     4,938       4,302     18,523       16,731  
  Occupancy expense     631       668     2,517       2,773  
  Equipment expense     434       405     1,926       1,624  
  Professional fees     387       387     1,471       1,845  
  FDIC assessment     150       150     600       655  
  Telephone, postage, supplies     295       289     1,074       1,250  
  Advertising expense     117       99     500       414  
  Data processing expense     192       134     1,076       572  
  Low income housing expense     71       71     283       439  
  Surety insurance     87       88     381       278  
  Director fees     72       72     288       252  
  Gain on sale of other real estate owned     -       -     -       (220 )
  Other real estate owned (income) expense     (10 )     -     4       87  
  Other expenses     423       278     1,282       1,168  
    Total Noninterest Expense     7,787       6,943     29,925       27,868  
EARNINGS BEFORE PROVISION FOR INCOME TAXES     3,989       2,614     11,561       14,507  
  Provision for income taxes     1,422       815     3,364       5,098  
NET EARNINGS     2,567       1,799     8,197       9,409  
  Dividends and discount accretion on preferred stock     -       -     -       170  
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS   $ 2,567     $ 1,799   $ 8,197     $ 9,239  
                               
                               
Per Share Data:                              
  Basic earnings per share available to common stockholders   $ 0.56     $ 0.40   $ 1.82     $ 2.08  
  Diluted earnings per share available to common stockholders   $ 0.55     $ 0.39   $ 1.77     $ 2.02  
  Cash dividends declared   $ 683     $ 555   $ 2,447     $ 1,780  
  Average shares outstanding     4,550       4,487     4,516       4,444  
  Average diluted shares outstanding     4,687       4,623     4,644       4,585  
                               
                               
                         
                         
FINANCIAL HIGHLIGHTS               (Extracted from  
(Dollars In Thousands)         audited annual  
    (Unaudited)     financial statements)  
    Three Months Ended     Twelve Months Ended  
    March 31,     December 31,  
    2016     2015     2015     2014  
                                 
AVERAGE BALANCES:                                
  Total Assets   $ 1,146,493     $ 919,313     $ 1,010,435     $ 901,533  
  Total Loans     743,282       587,903       629,814       572,070  
  Total Earning Assets     1,072,790       848,925       923,700       840,360  
  Total Deposits     1,012,268       801,718       890,369       785,481  
  Total Stockholder's Equity     106,219       98,140       100,621       90,938  
                                 
SELECTED PERFORMANCE DATA                                
  Annualized return on average assets     0.90 %     0.78 %     0.81 %     1.02 %
  Annualized return on average equity     9.67 %     7.33 %     8.15 %     10.16 %
  Net interest margin (taxable equivalent)     4.14 %     4.17 %     4.06 %     4.21 %
  Average loans as a percent of average deposits     73.43 %     73.33 %     70.70 %     72.83 %
  Average total stockholders' equity as a % of average total assets     9.26 %     10.68 %     9.96 %     10.09 %
  Annualized common dividend payout ratio     26.61 %     30.85 %     29.85 %     19.27 %
                                   
                                   
                               
                               
NON-PERFORMING ASSETS         (Extracted from                    
(Dollars In Thousands)         audited annual                    
  (Unaudited) financial statements) (Unaudited) (Unaudited) (Unaudited)
                As of              
    March 31,     December 31,     September 30,     June 30,     March 31,  
    2016     2015     2015     2015     2015  
Non-accrual loans     6,882       7,915       5,192       6,020       5,923  
Other real estate owned     1,055       1,026       838       806       770  
  Total non-performing assets     7,937       8,941       6,030       6,826       6,693  
                                         
                                         
Loan loss reserve   $ 9,943     $ 9,970     $ 9,940     $ 9,836     $ 9,744  
Non-accrual loans/Gross loans     0.92 %     1.08 %     0.73 %     1.03 %     1.01 %
Loan loss reserves/Gross loans     1.33 %     1.36 %     1.40 %     1.69 %     1.66 %
                                         
                                         
                     
                     
CONSOLIDATED BALANCE SHEETS       (Extracted from            
(Dollars In Thousands)       audited annual            
  (Unaudited) financial statements) (Unaudited) (Unaudited) (Unaudited)
            As of        
    March 31,   December 31,   September 30,   June 30,   March 31,
    2016   2015   2015   2015   2015
ASSETS                              
  Cash and due from banks   $ 37,737   $ 12,314   $ 40,282   $ 91,662   $ 30,640
  Interest-bearing time deposits with financial institutions     205     205     1,246     2,138     2,783
  Securities available for sale, at fair value     329,396     329,207     315,560     295,171     264,499
  Loans, net of deferred loan fees and allowance for loan losses     733,991     722,747     696,888     571,665     575,606
  Bank Premises, equipment and leasehold improvements, net     10,320     10,202     10,326     10,527     10,685
  Bank owned life insurance     15,946     15,845     15,742     12,681     12,594
  Other equity securities     6,756     6,748     6,748     6,069     5,773
  Accrued interest receivable     4,603     4,511     4,326     3,909     3,744
  Other real estate owned     1,055     1,026     838     806     770
  Goodwill     4,580     4,580     4,580     1,841     1,841
  Prepaid expenses     945     997     877     922     1,016
  Other assets     15,444     15,967     14,044     12,437     12,402
    TOTAL ASSETS   $ 1,160,978   $ 1,124,349   $ 1,111,457   $ 1,009,828   $ 922,353
                               
LIABILITIES                              
  Deposits:                              
    Demand, noninterest bearing   $ 265,947   $ 263,822   $ 262,206   $ 249,420   $ 222,400
    Demand, interest bearing     113,337     102,304     84,682     101,693     90,914
    Savings and money market     526,557     491,633     512,534     437,092     384,799
    Time     124,410     125,430     129,943     104,935     106,511
      Total Deposits     1,030,251     983,189     989,365     893,140     804,624
  Federal Home Loan Bank advances     -     17,000     -     -     -
  Note payable     4,800     4,950     5,100     5,250     5,400
  Accrued expenses and other liabilities     17,230     15,048     13,302     11,001     12,292
      Total Liabilities     1,052,281     1,020,187     1,007,767     909,391     822,316
STOCKHOLDERS' EQUITY                              
  Common stock, no par value:     75,240     74,805     67,852     67,597     67,242
  Retained Earnings     29,666     27,816     33,046     31,452     29,944
  Accumulated other comprehensive earnings, net of tax     3,791     1,541     2,792     1,388     2,851
      Total Stockholders' Equity     108,697     104,162     103,690     100,437     100,037
      TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,160,978   $ 1,124,349   $ 1,111,457   $ 1,009,828   $ 922,353
                               
                               
                           
                           
CONSOLIDATED STATEMENTS OF INCOME   (Unaudited)
(Dollars In Thousands, Except Per Share Amounts)   Three Months Ended
    March 31,     December 31,     September 30,   June 30,     March 31,
    2016     2015     2015   2015     2015
INTEREST INCOME                                    
  Interest and fees on loans   $ 9,871     $ 9,361     $ 8,309   $ 7,855     $ 7,710
  Interest on dividends and securities     1,685       1,657       1,575     1,432       1,344
  Interest on deposits with other financial institutions     1       3       9     13       14
    Total interest income     11,557       11,021       9,893     9,300       9,068
                                     
INTEREST EXPENSE                                    
  Deposits     783       734       635     538       454
  Federal Home Loan Bank advances     8       7       1     -       1
  Interest on note payable     57       56       57     57       59
    Total interest expense     848       797       693     595       514
NET INTEREST INCOME     10,709       10,224       9,200     8,705       8,554
  Provision for (recovery of) loan losses     75       (530 )     75     75       75
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES     10,634       10,754       9,125     8,630       8,479
NONINTEREST INCOME                                    
  Service charges     621       647       618     627       611
  Net gain on sale of available-for-sale securities     184       89       29     152       69
  Earnings on bank owned life insurance     100       103       90     87       84
  Other income     237       290       287     401       314
    Total Noninterest Income     1,142       1,129       1,024     1,267       1,078
NONINTEREST EXPENSES                                    
  Salaries and employee benefits     4,938       6,010       4,100     4,111       4,302
  Occupancy expense     631       611       592     646       668
  Equipment expense     434       393       718     410       405
  Professional fees     387       396       334     354       387
  FDIC assessment     150       150       150     150       150
  Telephone, postage, supplies     295       292       237     256       289
  Advertising expense     117       119       112     170       99
  Data processing expense     192       136       659     147       134
  Low income housing expense     71       71       70     71       71
  Surety insurance     87       83       122     88       88
  Director fees     72       72       72     72       72
  Other real estate owned (income) expense     (10 )     10       -     (6 )     -
  Other expenses     423       371       313     320       278
    Total Noninterest Expense     7,787       8,714       7,479     6,789       6,943
EARNINGS BEFORE PROVISION FOR INCOME TAXES     3,989       3,169       2,670     3,108       2,614
  Provision for income taxes     1,422       1,081       431     1,037       815
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS   $ 2,567     $ 2,088     $ 2,239   $ 2,071     $ 1,799
                                     
                                     
                               
    (Unaudited)  
    Three Months Ended  
    March 31,     December 31,     September 30,     June 30,     March 31,  
    2016     2015     2015     2015     2015  
Per Share Data:                                        
  Basic earnings per share available to common stockholders   $ 0.56     $ 0.47     $ 0.49     $ 0.46     $ 0.40  
  Diluted earnings per share available to common stockholders   $ 0.55     $ 0.45     $ 0.48     $ 0.45     $ 0.39  
  Cash dividends declared   $ 683     $ 648     $ 646     $ 559     $ 555  
  Average shares outstanding     4,550       4,487       4,524       4,511       4,487  
  Average diluted shares outstanding     4,687       4,623       4,643       4,636       4,623  
                                         
SELECTED PERFORMANCE DATA                                        
  Annualized return on average assets     0.90 %     0.91 %     0.86 %     0.87 %     0.78 %
  Annualized return on average equity     9.67 %     8.51 %     8.88 %     8.31 %     7.33 %
  Net interest margin (taxable equivalent)     4.14 %     4.17 %     4.00 %     4.14 %     4.17 %
  Average loans as a percent of average deposits     73.43 %     71.11 %     67.72 %     70.63 %     73.33 %
  Average total stockholders' equity as a % of average total assets     9.26 %     10.68 %     9.69 %     10.46 %     10.68 %
  Annualized common dividend payout ratio     26.61 %     31.03 %     28.85 %     26.99 %     30.85 %
                                         
                                         
                               
                               
LOANS         (Extracted from                    
(Dollars In Thousands)         audited annual                    
  (Unaudited) financial statements) (Unaudited) (Unaudited) (Unaudited)
                As of              
    March 31,     December 31,     September 30,     June 30,     March 31,  
    2016     2015     2015     2015     2015  
Real Estate Loans:                                        
  Construction   $ 42,465     $ 44,816     $ 35,868     $ 32,648     $ 34,237  
  Commercial     411,999       399,993       394,090       330,303       322,414  
  Multi family     59,993       63,597       63,928       51,613       53,703  
  Residential     173,437       171,964       172,280       127,900       128,105  
Commercial & industrial loans     55,694       52,033       39,843       37,745       45,589  
Consumer loans     1,675       1,574       1,497       1,696       1,697  
  Gross Loans     745,263       733,977       707,506       581,905       585,745  
Net deferred loan fees     (1,329 )     (1,260 )     (678 )     (404 )     (395 )
Allowance for loan losses     (9,943 )     (9,970 )     (9,940 )     (9,836 )     (9,744 )
  NET LOANS   $ 733,991     $ 722,747     $ 696,888     $ 571,665     $ 575,606  
                                           
                                           

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
    Website: www.fnbnorcal.com