SOUTH SAN FRANCISCO, CA--(Marketwired - Jan 30, 2014) - FNB Bancorp (
"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 |
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| 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