SOURCE: FNB Bancorp

FNB Bancorp

January 30, 2014 16:00 ET

First National Bank of Northern California Reports Fourth Quarter 2013 Earnings of $0.46 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwired - Jan 30, 2014) - 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 fourth quarter of 2013 of $1,880,000 or $0.46 per diluted share, compared to net earnings available to common shareholders of $1,189,000 or $0.30 per diluted share for the fourth quarter of 2012. Total assets as of December 31, 2013 were $891,930,000 compared to $875,340,000 as of December 31, 2012. Our net loan totals increased by $10,780,000 or 2% during the twelve months from December 31, 2012, and our deposits increased $5,263,000 or 1% during the same period. The Company's liquidity position remains strong with $263,988,000 in available for sale securities and $5,543,000 in interest earning deposits with other financial institutions.

"During the fourth quarter of 2013, The Bank's net interest income increased by $162,000 from the level achieved during the previous quarter. When you consider that our net loans declined by $5,821,000 during the quarter, our net interest income level remains pretty strong. New loan production during 2013 was near historical highs, but line usage by our customers of their credit lines remained muted and loan principal repayments were elevated well above the historical norm. All in all, for the full year ended December 31, 2013, the Bank added $10,780,000 in net loans and $5,263,000 in additional deposits. Considering that during 2013 we closed our office on the island of Guam, and consolidated three of our other branch office locations, we are pleased with these growth numbers. We are looking forward to expanding our Sunnyvale loan production office into a full service branch location during 2014. We believe our Sunnyvale location has significant growth potential, and the expansion of business conducted at this office will allow us to fully serve our customers in Sunnyvale and the surrounding Santa Clara county area," stated Tom McGraw, Chief Executive Officer.

During the third quarter of 2012, FNB Bancorp acquired Oceanic Bank. The acquisition added approximately $103 million in new loans and $114 million in new deposits, and strengthened our presence in the San Francisco market. The transaction also allowed the Bank to record a bargain purchase gain of approximately $3.7 million. The full year 2012 statement of operations for 2012 includes the operations of Oceanic Bank from September 21, 2012 through December 31, 2012.

   
   
Financial Highlights: Fourth Quarter, 2013  
Consolidated Statements of Earnings  
(in '000s except earnings per share amounts)  
   
    Three months ended
December 31 2013
    Three months ended
December 31 2012
    Year ended December 31 2013     Year ended
December 31 2012
 
                                 
Interest income   $ 9,375     $ 9,467     $ 37,389     $ 33,588  
Interest expense     514       727       2,395       2,727  
  Net interest income     8,861       8,740       34,994       30,861  
Provision for loan losses     50       633       1,385       1,833  
Noninterest income     1,137       1,060       4,183       9,159  
Noninterest expense     6,954       7,557       29,028       27,739  
  Income before income taxes     2,994       1,610       8,764       10,448  
Income tax expense     995       264       1,325       1,645  
  Net earnings     1,999       1,346       7,439       8,803  
  Dividends and discount accretion on preferred stock     119       157       567       658  
  Net earnings available to common shareholders   $ 1,880     $ 1,189     $ 6,872     $ 8,145  
                                 
Basic earnings per share   $ 0.47     $ 0.31     $ 1.81     $ 2.10  
Diluted earnings per share   $ 0.46     $ 0.30     $ 1.77     $ 2.07  
                                 
Average assets   $ 912,819     $ 900,571     $ 903,825     $ 793,713  
Average equity   $ 93,679     $ 95,206     $ 93,166     $ 90,466  
Return on average assets (annualized)     0.82 %     0.53 %     0.76 %     1.03 %
Return on average equity (annualized)     8.03 %     5.00 %     7.38 %     9.00 %
Efficiency ratio     70 %     77 %     74 %     69 %
Net interest margin (taxable equivalent)     4.24 %     4.46 %     4.31 %     4.54 %
Average shares outstanding     3,965       3,882       3,793       3,879  
Average diluted shares outstanding     4,088       3,963       3,882       3,943  
                                 
         
 
 
Financial Highlights: Fourth Quarter, 2013
Consolidated Balance Sheets
(in '000s)
    As of
December 31,
2013
  As of
December 31,
2012
  Assets:            
Cash and cash equivalents   $ 14,007   $ 27,861
Interest-bearing time deposits with other financial institutions     5,543     13,216
Securities available for sale     263,988     234,945
Loans, net     552,343     541,563
Premises, equipment and leasehold improvements, net     12,512     12,706
Bank owned life insurance     12,151     11,785
Other equity securities     5,300     5,464
Accrued interest receivable     3,808     3,760
Other real estate owned, net     5,318     6,650
Goodwill     1,841     1,841
Prepaid expenses     701     1,372
Other assets     14,418     14,177
  Total assets   $ 891,930   $ 875,340
             
  Liabilities and stockholders' equity:            
Deposits:            
  Demand and NOW   $ 279,269   $ 253,849
  Savings and money market     370,194     343,437
  Time     124,152     171,066
    Total deposits     773,615     768,352
Accrued expenses and other liabilities     24,066     11,630
    Total liabilities     797,681     779,982
Stockholders' equity     94,249     95,358
  Total liab. and stockholders' equity   $ 891,930   $ 875,340
             
Other Financial Information            
Allowance for loan losses   $ 9,879   $ 9,124
Nonperforming assets   $ 12,669   $ 19,124
Total gross loans   $ 562,222   $ 550,687
             
             

"During 2013, management made efforts to change the mix of our deposit portfolio. Our 2012 acquisition of Oceanic Bank brought brokered Certificates of Deposit onto our balance sheet in volumes that we had not previously experienced. At December 31, 2012, our brokered deposits totaled $15,651,000. By December 31, 2013, we had reduced our brokered deposits to $4,905,000. At the same time, we were able to add to our demand and NOW account totals and our savings and money market totals. These changes have placed the bank in a better position to manage our deposit portfolio should interest rates move significantly upward in the near term," stated Tom McGraw.

 "Looking forward to 2014, our company faces significant challenges, but also has significant opportunities. With new regulations being promulgated at unprecedented volumes, compliance costs will continue to escalate. Our economy is slowly getting stronger, which we believe will provide us with new business opportunities and new customers. I believe our company is well positioned to take full advantage of our presence in San Francisco and the peninsula and I am excited about those possibilities as we enter into 2014. We want everyone to know that First National Bank of Northern California is looking forward to the future, as we continue our efforts to be the community bank of choice in San Francisco and on the peninsula here in the San Francisco bay area," continued 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