SOURCE: FNB Bancorp

FNB Bancorp

January 28, 2011 16:00 ET

First National Bank of Northern California Reports Fourth Quarter 2010 Earnings of $0.20 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwire - January 28, 2011) - FNB Bancorp (OTCBB: FNBG), parent company of First National Bank of Northern California (the "Bank"), today announced net earnings available to common shareholders for the fourth quarter of 2010 of $682,000 or $0.20 per diluted share, compared to net earnings available to common shareholders of $302,000 or $0.09 per diluted share for the fourth quarter of 2009. Dividend payments on the preferred shares outstanding were made as required by the Treasury Department's Capital Purchase Program during the four quarters ended December 31, 2010. Our balance sheet is highly liquid, our allowance for loan and lease losses is adequate and we continue to be "well capitalized" as defined by bank regulations. Total assets as of December 31, 2010 were $714,539,000 compared to $708,309,000 as of December 31, 2009. Our net loans decreased by $19,521,000 or 3.9% during 2010 and our deposits increased by $29,476,000 or 4.9% during 2010. At December 31, 2010, the Company has considerable liquid assets on hand as evidenced by $126,189,000 in available for sale securities and $60,874,000 in cash and due from banks.

During the fourth quarter of 2010, as part of our continuing efforts to provide our customers a quality banking experience while we improve our operational efficiencies, our Colma branch was closed and the accounts were transferred primarily to our Daly City and South San Francisco branches. This consolidation did not have a materially adverse affect on our deposit base and is expected to provide the Bank operational efficiencies while we continue to provide high quality service to all our customers.

"The consolidation of our Eureka Square branch into our Linda Mar branch in Pacifica and our Colma branch into our Daly City and South San Francisco offices were successfully completed this past year. We were able to consolidate these branch offices without the need for any employee layoffs. The employees of these two offices were able to transition into existing open positions at other branch offices of the Bank," stated Tom McGraw, Chief Executive Officer.

"During the fourth quarter of 2010, the Bank experienced an increase in our net interest margin and net interest income earned when compared to the same period in 2009. Credit resolution costs have continued to stabilize, which allowed us to lower our provision for loan losses during the fourth quarter of 2010 to $825,000 compared to $900,000 during the same period during 2009," continued Mr. McGraw.

Financial Highlights: Fourth Quarter, 2010
Consolidated Statements of Earnings
(in '000s except earnings per share amounts)

                                  Three      Three
                                  months     months     Year       Year
                                  ended      ended      ended      ended
                                December   December   December   December
                                 31 2010    31 2009    31 2010    31 2009
                                ---------  ---------  ---------  ---------

Interest income                 $   8,396  $   8,980  $  34,428  $  35,817
Interest expense                    1,015      2,037      5,383      9,011
                                ---------  ---------  ---------  ---------
   Net interest income              7,381      6,943     29,045     26,806
Provision for loan losses            (825)      (900)    (1,854)    (4,596)
Noninterest income                  1,269      1,111      4,706      5,377
Noninterest expense                 6,556      6,970     27,005     27,575
                                ---------  ---------  ---------  ---------
   Income before income taxes       1,269        184      4,892         12
Income tax expense (benefit)          372       (331)     1,227       (581)
                                ---------  ---------  ---------  ---------
   Net earnings                       897        515      3,665        593
   Dividends and discount
    accretion on preferred stock      213        213        853        632

                                ---------  ---------  ---------  ---------
   Net earnings (loss)
    available to
    common shareholders         $     684  $     302  $   2,812  $     (39)
                                =========  =========  =========  =========

Basic earnings per share        $    0.20  $    0.09  $    0.84  ($   0.01)
Diluted earnings per share      $    0.20  $    0.09  $    0.84  ($   0.01)

Average assets                  $ 729,677  $ 708,546  $ 729,309  $ 683,829
Average equity                  $  81,929  $  78,946  $  80,709  $  77,367
Return on average assets
 (annualized)                        0.37%      0.17%      0.39%     -0.01%
Return on average equity
 (annualized)                        3.34%      1.53%      3.48%     -0.05%
Efficiency ratio                       76%        87%        80%        86%
Net interest margin (taxable
 equivalent)                         4.88%      4.61%      4.80%      4.47%
Average shares outstanding          3,341      3,341      3,341      3,341
Average diluted shares
 outstanding                        3,341      3,350      3,341      3,362



Financial Highlights: Fourth Quarter, 2010

Consolidated Balance Sheets
(in '000s)                                              As of      As of
                                                       December   December
                                                       31, 2010   31, 2009
                                                      ---------- ----------
     Assets:
Cash and cash equivalents                             $   60,874 $   62,853
Securities available for sale                            126,189     97,188
Loans, net                                               474,828    494,349
Premises, equipment and
 leasehold improvements, net                              13,535     11,784
Other real estate owned                                    6,680      7,320
Goodwill                                                   1,841      1,841
Other assets                                              30,692     32,974
                                                      ---------- ----------
   Total assets                                       $  714,639 $  708,309
                                                      ========== ==========

     Liabilities and
      stockholders' equity:
Deposits:
     Demand and NOW                                   $  197,650 $  177,883
     Savings and money market                            305,390    293,758
     Time                                                125,400    127,323
                                                      ---------- ----------
        Total deposits                                   628,440    598,964
Federal Home Loan Bank advances                               --     25,000
Accrued expenses and other
 liabilities                                               5,275      5,480
                                                      ---------- ----------
        Total liabilities                                633,715    629,444
Stockholders' equity                                      80,924     78,865
                                                      ---------- ----------
   Total liab. and
    stockholders' equity                              $  714,639 $  708,309
                                                      ========== ==========

Other Financial Information
Allowance for loan losses                             $    9,524 $    9,829
Nonperforming assets                                  $   23,392 $   32,912
Total gross loans                                     $  484,352 $  504,178

"The credit outlook for our local economy is slowly improving. However, unemployment rates remain stubbornly high, commercial real estate valuations have yet to completely stabilize, foreclosure levels and residential mortgage defaults continue to make headline news, federal, state and local budgets are under significant strains, and we continue to work through the deleveraging process that naturally occurs during a significant recession. Our Bank continues to manage our credit risks in a prudent manner, trying to find solutions that make sense for the Bank as well as our customers. Management attention has been focused on risk management of our existing loan portfolio and in improving asset quality during all of 2010. During the fourth quarter of 2010, profitability levels were still not at historical levels; however, the Bank has the capital, liquidity, and management capability to take advantage of market opportunities that become available and to grow the Bank during the coming year. During 2011, we are committed to growing our loan portfolio and are actively seeking new loan and deposit customers who want a local community bank that knows and understands their financial needs. We want our customers to know that we are committed to them and to the communities that we serve. We look forward to the opportunity to continue to provide for the banking needs of our customers, as we have done for the last 47 years," stated Mr. 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

    Website: www.fnbnorcal.com