Financial Highlights: Second Quarter, 2009
Consolidated Statements of Earnings
(in '000s except earnings per share amounts)
Three months Three months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Interest income $ 8,643 $ 9,657 $ 17,554 $ 20,028
Interest expense 2,362 2,841 4,681 6,163
------------ ------------ ------------ ------------
Net interest
income 6,281 6,816 12,873 13,865
Provision for loan
losses (760) (300) (2,900) (1,290)
Noninterest income 1,245 1,137 2,594 2,398
Noninterest expense 6,758 6,286 14,178 12,463
------------ ------------ ------------ ------------
Interest before
income taxes 8 1,367 (1,611) 2,510
Provision for
income taxes (4) (277) 426 (533)
------------ ------------ ------------ ------------
Net earnings
(loss) 4 1,090 (1,185) 1,977
Dividends and
discount
accretion
on preferred
stock 189 - 205 -
------------ ------------ ------------ ------------
Net earnings
(loss)
available to
common
shareholders $ (185) $ 1,090 $ (1,390) $ 1,977
============ ============ ============ ============
Basic earnings per
share $ (0.06) $ 0.35 $ (0.46) $ 0.64
Diluted earnings
per share $ (0.06) $ 0.35 $ (0.46) $ 0.63
Average assets $ 673,061 $ 651,661 $ 665,571 $ 652,069
Average equity $ 78,825 $ 67,754 $ 75,977 $ 67,750
Return on average
assets -0.11% 0.67% -0.84% 1.21%
Return on average
equity -0.94% 6.44% -7.32% 11.67%
Efficiency ratio 90% 79% 92% 77%
Net interest margin
(taxable
equivalent) 4.21% 4.71% 4.37% 4.80%
Average shares
outstanding 3,030 3,111 3,030 3,111
Average diluted
shares outstanding 3,030 3,122 3,030 3,121
Financial Highlights: Second Quarter, 2009
Consolidated Balance Sheets
(in '000s)
As of As of As of As of
June 30, December 31, June 30, December 31,
2009 2008 2008 2007
------------ ------------ ------------ ------------
Assets:
Cash and cash
equivalents $ 36,696 $ 14,865 $ 18,766 $ 15,750
Securities available
for sale 89,556 99,221 103,067 94,432
Loans, net 487,312 497,984 488,709 489,574
Premises, equipment and
leasehold improvements 12,381 13,030 13,677 13,686
Other real estate owned 5,492 3,557 3,955 440
Goodwill 1,841 1,841 1,841 1,841
Other assets 28,550 30,459 29,135 28,742
------------ ------------ ------------ ------------
Total assets $ 661,828 $ 660,957 $ 659,150 $ 644,465
============ ============ ============ ============
Liabilities and
stockholders'
equity:
Deposits:
Demand and NOW $ 170,734 $ 179,688 $ 180,573 $ 181,638
Savings and money
market 233,951 179,382 193,071 181,276
Time 133,793 141,840 133,832 136,341
------------ ------------ ------------ ------------
Total deposits 538,478 500,910 507,476 499,255
Federal Home Loan Bank
advances 40,000 86,100 70,000 66,000
Federal funds purchased - - 7,330 5,595
Accrued expenses and
other liabilities 5,511 5,798 7,423 7,070
------------ ------------ ------------ ------------
Total liabilities 583,989 592,808 592,229 577,920
Stockholders' equity 77,839 68,149 66,921 66,545
------------ ------------ ------------ ------------
Total liab. and
stockholders'
equity $ 661,828 $ 660,957 $ 659,150 $ 644,465
============ ============ ============ ============
Other Financial
Information
Allowance for loan
losses $ 9,095 $ 7,075 $ 5,800 $ 5,638
Nonperforming assets $ 32,385 $ 17,659 $ 16,567 $ 11,905
Total gross loans $ 496,407 $ 505,059 $ 494,509 $ 495,212
During the first six months of 2009, assets grew by $871,000 or less than
1% above December 31, 2008 levels. Total deposits increased by $37,568,000
or approximately 7% during this same time period. Over the last six months
we have decreased our FHLB borrowings by $46,100,000 in an effort to place
increased emphasis on developing long-term deposit relationships. Our
deposit growth during the first six months of 2009 has been very strong,
allowing us to repay over $46 million in Federal Home Loan Bank advances.
The current rate environment of very low short term rates has negatively
affected our taxable equivalent net interest margin, which has decreased to
4.21% during the second quarter of 2009, compared with 4.38% for the same
period in 2008. Our quarterly net interest income decreased by $535,000
year over year. "During the second quarter of 2009, we added $760,000 into
our provision for loan losses in order to increase our allowance for loan
losses to $9,095,000 or 1.83% of gross loans. This action was taken to
insure that reserves were sufficient to absorb any future losses that may
occur in our lending portfolio. Management believes that the negative
effects of the current recession are now fully reflected in our reserves,
and we believe that increases in our provision for the remainder of 2009
will be significantly lower than the provision recorded during the first
half of the year," stated Tom McGraw, CEO.
"We are working very hard to insure our loan customers have the credit they
need as they move their business plans forward. Our Money Market Maximizer
accounts has been very well received by our deposit customers, adding to
the growth of our deposits. We are highly liquid and remain 'well
capitalized' by regulatory standards. We continue to look for new business
opportunities, both in our current marketplace, and in the surrounding Bay
Area. The strength of our balance sheet will allow us to grow our banking
franchise in a safe and sound manner well into the future, during a time
when others may be required to sell assets and shrink their institutions to
the detriment of their shareholders," continued Mr. McGraw.
"Management has had to make some painful decisions during the first six
months of 2009. We believe these decisions have paved the way for the Bank
to not only survive this recession, but to emerge ready to attract new
customers, continue to grow the franchise, and to provide a solid
investment to our shareholders," 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