SOURCE: FNB Bancorp

FNB Bancorp

July 28, 2011 16:00 ET

First National Bank of Northern California Reports Second Quarter 2011 Earnings of $0.29 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwire - Jul 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 second quarter of 2011 of $966,000 or $0.29 per diluted share, compared to net earnings available to common shareholders of $525,000 or $0.16 per diluted share for the second quarter of 2010. Dividend payments on the preferred shares outstanding were made as required by the Treasury Department's Capital Purchase Program during the first and second quarters of 2011 and 2010. Our balance sheet is strong and we continue to be "well capitalized" as defined by bank regulations. Total assets as of June 30, 2011 were $718,448,000 compared to $721,811,000 as of June 30, 2010. Our net loan totals declined by $20,896,000 or 4.3% during the second quarter of 2011 when compared to the second quarter of 2010, and our deposits increased $8,342,000 or 1.3% during the same time period. The Company's liquidity position remains strong with $143,164,000 in available for sale securities and $68,654,000 in cash and cash equivalents as of June 30, 2011.

"As mentioned in our first quarter earnings release, the Bank has opened our newest branch, located in the Marina District of San Francisco, California. As of June 30, 2011, this branch already had a funded loan portfolio of $1.9 million and a deposit base of $3.7 million. This type of branch expansion into neighborhoods where our Bank can make a positive difference is one way we can profitably grow the Bank," stated Tom McGraw, Chief Executive Officer.

"The marketplace currently has an abundance of cash and liquid assets, which helped the Bank increase our deposit base by approximately $68 thousand during the first six months of 2011. Loan demand has remained weak, with many of our customers reducing their outstanding balances on their lines of credit and generally deleveraging their balance sheets. As a result, our loan portfolio has decreased $15.1 million during this same time period," continued Tom McGraw.

"During the second quarter of 2011, we reduced the number of DDA accounts that are not charged a monthly service charge and increased our NSF charges. These changes were necessary in order to keep our Bank financially strong while we continue to offer our customers a quality banking experience. We offer a high touch banking relationship where we actively get to know our customers and consult with them regarding their banking needs. We strive to bring them credit when they need it, deposit products that are appropriate, and assist them in understanding how their bank can help them manage their balance sheet positions and their cash flows," continued CEO McGraw.

Financial Highlights: Second Quarter, 2011
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,
2011 2010 2011 2010
Interest income $ 8,270 $ 8,756 $ 16,489 $ 17,416
Interest expense 857 1,330 1,741 3,030
Net interest income 7,413 7,426 14,748 14,386
Provision for loan losses (400 ) (315 ) (850 ) (565 )
Noninterest income 1,389 1,025 2,402 2,126
Noninterest expense 6,772 7,236 13,520 13,775
Income before income taxes 1,630 900 2,780 2,172
Provision for income taxes (450 ) (161 ) (797 ) (429 )
Net earnings 1,180 739 1,983 1,743
Dividends and discount accretion
on preferred stock

214

214

428

426
Net earnings available to common shareholders $
966
$
525
$
1,555
$
1,317
Basic earnings per share $ 0.29 $ 0.16 $ 0.47 $ 0.39
Diluted earnings per share $ 0.29 $ 0.16 $ 0.46 $ 0.39
Average assets $ 713,116 $ 693,481 $ 711,994 $ 727,682
Average equity $ 82,638 $ 79,903 $ 82,007 $ 79,663
Return on average assets 0.54 % 0.30 % 0.44 % 0.36 %
Return on average equity 4.68 % 2.63 % 3.79 % 3.31 %
Efficiency ratio 77 % 86 % 79 % 83 %
Net interest margin (taxable equivalent) 4.98 % 4.89 % 4.97 % 4.79 %
Average shares outstanding 3,342 3,341 3,342 3,341
Average diluted shares outstanding 3,368 3,341 3,363 3,350
Financial Highlights: Second Quarter, 2010
Consolidated Balance Sheets
(in '000s)
As of As of As of As of
June 30, December 31, June 30, December 31,
2011 2010 2010 2009
Assets:
Cash and cash equivalents $ 68,654 $ 60,874 $ 60,876 $ 62,853
Securities available for sale 143,164 126,189 125,976 97,188
Loans, net 459,756 474,828 480,652 494,349
Premises, equipment and leasehold improvements, net

13,647


13,535


11,762


11,784
Other real estate owned 2,438 6,680 8,677 7,320
Goodwill 1,841 1,841 1,841 1,841
Other assets 28,948 30,692 32,027 32,974
Total assets $ 718,448 $ 714,639 $ 721,811 $ 708,309
Liabilities and stockholders' equity:
Deposits:
Demand and NOW $ 201,150 $ 197,650 $ 186,384 $ 177,883
Savings and money market 313,744 305,390 313,613 293,758
Time 113,614 125,400 120,169 127,323
Total deposits 628,508 628,440 620,166 598,964
Federal Home Loan Bank advances - - 15,000 25,000
Accrued expenses and other liabilities 6,010 5,275 5,977 5,480
Total liabilities 634,518 633,715 641,143 629,444
Stockholders' equity 83,930 80,924 80,668 78,865
Total liab. and stockholders' equity $ 718,448 $ 714,639 $ 721,811 $ 708,309
Other Financial Information
Allowance for loan losses $ 9,719 $ 9,524 $ 9,076 $ 9,829
Nonperforming assets $ 18,282 $ 23,392 $ 22,775 $ 32,912
Total gross loans $ 469,475 $ 484,352 $ 489,728 $ 504,178

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