Financial Highlights: Third Quarter, 2009
Consolidated Statements of Earnings
(in '000s except earnings per share amounts)
Three Three Nine Nine
months months months months
ended ended ended ended
September September September September
30, 30, 30, 30,
2009 2008 2009 2008
--------- --------- --------- ---------
Interest income $ 9,283 $ 9,787 $ 26,837 $ 29,815
Interest expense 2,293 2,725 6,974 8,888
--------- --------- --------- ---------
Net interest income 6,990 7,062 19,863 20,927
Provision for loan losses (796) (300) (3,696) (1,590)
Noninterest income 1,672 769 4,266 3,167
Noninterest expense 6,427 6,481 20,605 18,944
--------- --------- --------- ---------
Interest before income taxes 1,439 1,050 (172) 3,560
Provision for income taxes (176) (3) 250 (536)
--------- --------- --------- ---------
Net earnings (loss) 1,263 1,047 78 3,024
Dividends and discount
accretion on preferred stock 214 -- 419 --
Net earnings (loss)
available to common --------- --------- --------- ---------
shareholders $ 1,049 $ 1,047 $ (341) $ 3,024
========= ========= ========= =========
Basic earnings per share $ 0.35 $ 0.34 ($ 0.11) $ 0.98
Diluted earnings per share $ 0.35 $ 0.34 ($ 0.11) $ 0.97
Average assets $ 694,806 $ 661,328 $ 675,487 $ 655,178
Average equity $ 78,525 $ 67,189 $ 76,834 $ 67,562
Return on average assets 0.60% 0.63% -0.20% 1.85%
Return on average equity 5.34% 6.23% -1.78% 17.90%
Efficiency ratio 74% 83% 85% 79%
Net interest margin (taxable
equivalent) 4.62% 4.75% 4.43% 4.78%
Average shares outstanding 3,030 3,055 3,030 3,092
Average diluted shares
outstanding 3,030 3,065 3,030 3,118
Financial Highlights: Third Quarter, 2009
Consolidated Balance Sheets
(in '000s) As of As of As of As of
September December September December
30, 31, 30, 31,
2009 2008 2008 2007
---------- ---------- ---------- ----------
Assets:
Cash and cash equivalents $ 46,371 $ 14,865 $ 17,873 $ 15,750
Securities available for sale 94,264 99,221 104,489 94,432
Loans, net 506,537 497,984 489,644 489,574
Premises, equipment and
leasehold improvements 12,040 13,030 13,378 13,686
Other real estate owned 9,425 3,557 3,819 440
Goodwill 1,841 1,841 1,841 1,841
Other assets 28,835 30,459 29,252 28,742
---------- ---------- ---------- ----------
Total assets $ 699,313 $ 660,957 $ 660,296 $ 644,465
========== ========== ========== ==========
Liabilities and stockholders' equity:
Deposits:
Demand and NOW $ 174,826 $ 179,688 $ 184,014 $ 181,638
Savings and money market 279,696 179,382 181,426 181,276
Time 130,645 141,840 155,030 136,341
---------- ---------- ---------- ----------
Total deposits 585,167 500,910 520,470 499,255
Federal Home Loan Bank advances 30,000 86,100 66,000 66,000
Federal funds purchased - - - 5,595
Accrued expenses and other
liabilities 5,218 5,798 7,275 7,070
---------- ---------- ---------- ----------
Total liabilities 620,385 592,808 593,745 577,920
Stockholders' equity 78,928 68,149 66,551 66,545
---------- ---------- ---------- ----------
Total liab. and
stockholders' equity $ 699,313 $ 660,957 $ 660,296 $ 644,465
========== ========== ========== ==========
Other Financial Information
Allowance for loan losses $ 9,424 $ 7,075 $ 6,031 $ 5,638
Nonperforming assets $ 32,164 $ 17,659 $ 15,694 $ 11,905
Total gross loans $ 515,961 $ 505,059 $ 495,675 $ 495,212
"We are working very hard to insure our loan customers have the credit they
need as they plan for the future. The Treasury Department has gone on
record that they believe the recession may have ended. While that may be
technically true, we are also acutely aware of the fragile real estate and
business climate that currently exists. The strength of our balance sheet
will allow us to grow our banking franchise locally in a safe and sound
manner during a time when others may be required to sell assets and shrink
their institutions," continued Mr. McGraw.
"Management has had to make some painful decisions during the first nine
months of 2009. Our level of OREO assets and nonperforming loans have
steadily increased during the first nine months of 2009. Management has
instituted plans that we believe will reduce the OREO and nonperforming
levels in the near future. Management is committed to reducing
nonperforming assets as soon as possible. We believe our decisions and
proactive approach in dealing with troubled credits has paved the way for
the Bank to attract new customers, grow our franchise, reduce future credit
related problems and to provide a solid investment for 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