SOURCE: FNB Bancorp

FNB Bancorp

July 30, 2012 16:00 ET

First National Bank of Northern California Reports Second Quarter 2012 Earnings of $0.30 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwire - Jul 30, 2012) -  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 2012 of $1,071,000 or $0.30 per diluted share, compared to net earnings available to common shareholders of $966,000 or $0.27 per diluted share for the second quarter of 2011. Dividend payments on the preferred shares outstanding were made as required by the Treasury Department's Small Business Lending Program. Total assets as of June 30, 2012 were $748,750,000 compared to $718,448,000 as of June 30, 2011. Our net loan totals declined by $6,456,000 or 1.4% when compared to the second quarter of 2011, and our deposits increased $23,335,000 or 3.7% during the same time period. The Company's liquidity position remains strong with $203,548,000 in available for sale securities and $44,856,000 in cash and cash equivalents as of June 30, 2012.

During March, 2012, FNB Bancorp entered into a Stock Purchase Agreement whereby FNB Bancorp agreed to acquire all the outstanding shares of Oceanic Bank Holding, Inc., the sole shareholder of Oceanic Bank, in San Francisco, CA. This purchase is subject to regulatory approval.

"First National Bank of Northern California was able to continue to grow our loan and deposit portfolios during the second quarter of 2012. Earnings available to common shareholders during the second quarter were again in excess of $1 million dollars. The level of nonperforming loans continues to be high by historical standards, but workout programs are in place and proceeding. The result of these programs should become evident by improvement in the level of nonperforming assets during the second half of 2012. We continue to work with our borrowers through loan workout and modification programs in order to provide the best outcome possible for the Bank and our loan customers," stated Tom McGraw, Chief Executive Officer.

   
Financial Highlights: Second Quarter, 2012  
   
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,  
    2012     2011     2012     2011  
                                 
Interest income   $ 7,878     $ 8,270     $ 15,760     $ 16,489  
Interest expense     653       857       1,337       1,741  
  Net interest income     7,225       7,413       14,423       14,748  
Provision for loan losses     (400 )     (400 )     (800 )     (850 )
Noninterest income     1,415       1,389       3,335       2,402  
Noninterest expense     6,498       6,772       13,551       13,520  
  Income before income taxes     1,742       1,630       3,407       2,780  
Provision for income taxes     (514 )     (450 )     (891 )     (797 )
  Net earnings     1,228       1,180       2,516       1,983  
  Dividends and discount accretion on preferred stock    
157
     
214
     
343
     
428
 
  Net earnings available to common shareholders   $
1,071
    $
966
    $
2,173
    $
1,555
 
                                 
Basic earnings per share   $ 0.30     $ 0.28     $ 0.62     $ 0.44  
Diluted earnings per share   $ 0.30     $ 0.27     $ 0.61     $ 0.44  
                                 
Average assets   $ 750,351     $ 713,116     $ 742,895     $ 711,994  
Average equity   $ 88,476     $ 82,638     $ 88,177     $ 82,007  
Return on average assets     0.57 %     0.54 %     0.59 %     0.44 %
Return on average equity     4.84 %     4.68 %     4.93 %     3.79 %
Efficiency ratio     75 %     77 %     76 %     79 %
Net interest margin (taxable equivalent)     4.46 %     4.98 %     4.54 %     4.97 %
Average shares outstanding     3,514       3,509       3,512       3,509  
Average diluted shares outstanding     3,576       3,521       3,563       3,528  
   
Certain ratios in this table have been annualized.  
                                 
                 
Financial Highlights: Second Quarter, 2012        
 
Consolidated Balance Sheets        
(in '000s)        
     As of    As of    As of    As of
     June 30,    December 31,    June 30,    December 31,
      2012   2011   2011   2010
  Assets:                        
Cash and cash equivalents   $ 44,856   $ 38,474   $ 68,654   $ 60,874
Securities available for sale     203,548     187,664     143,164     126,189
Loans, net     453,300     443,721     459,756     474,828
Premises, equipment and leasehold improvements, net    
12,916
   
13,227
   
13,647
   
13,535
Other real estate owned     1,923     2,747     2,438     6,680
Goodwill     1,841     1,841     1,841     1,841
Other equity securities     4,603     4,608     4,929     5,246
Accrued interest receivable     3,621     3,614     3,074     3,765
Prepaid expenses     1,609     2,107     1,966     2,843
Bank owned life insurance     11,594     9,521     9,361     9,195
Other assets     8,939     8,117     9,618     9,643
  Total assets   $ 748,750   $ 715,641   $ 718,448   $ 714,639
                         
  Liabilities and stockholders' equity:                        
Deposits:                        
Demand and NOW   $ 223,341   $ 202,690   $ 201,150   $ 197,650
Savings and money market     323,372     310,237     313,744     305,390
Time     105,130     108,851     113,614     125,400
  Total deposits     651,843     621,778     628,508     628,440
Accrued expenses and other liabilities     7,586     6,667     6,010     5,275
  Total liabilities     659,429     628,445     634,518     633,715
Stockholders' equity     89,321     87,196     83,930     80,924
  Total liab. and stockholders' equity   $ 748,750   $ 715,641   $ 718,448   $ 714,639
                         
Other Financial Information                        
                         
Allowance for loan losses   $ 8,458   $ 9,897   $ 9,719   $ 9,524
Nonperforming assets (1)   $ 20,953   $ 21,845   $ 18,282   $ 23,392
Total gross loans   $ 461,758   $ 453,618   $ 469,475   $ 484,352
                         
(1) Nonperforming assets in this table are the sum of nonaccrual loans and other real estate owned
 

"During the second quarter, we were able to continue to grow our balance sheet. Our loan pipeline has recently improved, and we hope to be able to fund more loans and increase the size of our loan portfolio during the remainder of 2012. We have recently hired an additional loan officer for our Sunnyvale loan production center in the belief that we have significant lending opportunities available to us in Santa Clara county. It is our intent to eventually gain regulatory approval to make this location a full service branch. We believe the key to the success of our Bank is our ability to grow our franchise through means that make sense. We believe that our growth is best achieved through thoughtful strategic acquisitions, such as the Oceanic Bank purchase, as well as organic growth and branch expansion, as evidenced by our commitment to our Sunnyvale loan production office. During the second quarter of 2012, the Bank also increased our overnight cash positions in anticipation of regulatory approval to purchase Oceanic Bank. Once the purchase is approved and completed, management expects to adopt a deposit rate structure for Oceanic Bank's brokered deposits that mirror the rate structure utilized by First National Bank of Northern California. Management believes this may cause some deposit runoff, but should positively affect the overall operations of the combined entities," 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