SOUTH SAN FRANCISCO, CA--(Marketwired - Oct 30, 2013) - FNB Bancorp (
"During the third quarter of 2013, the Bank was able to increase our loan production and our net loans outstanding. At the same time, higher rate brokered time deposits acquired in our Oceanic Bank acquisition have been allowed to runoff. During the 12 month period ended September 30, 2013, which is also the first twelve months following our Oceanic Bank acquisition, our time deposit balances have decreased by $55,906,000 while our noninterest bearing demand deposits have grown by $15,068,000 and our savings and money market deposits have grown by $36,197,000. Overall, our deposit portfolio has performed well, with the decrease in total deposits in line with management's projections. During the third quarter of 2013, there was an increase in the outstanding wholesale borrowings obtained from the Federal Home Loan Bank, which totaled $44,000,000 as of September 30, 2013. The Bank intends to slowly reduce the amount of our outstanding borrowings over the next twelve months by utilizing funds derived from principal repayments that occur within our investment portfolio and the slow and steady acquisition of additional deposit accounts and dollars. There was also a sizeable tax benefit recorded during the third quarter of 2013. Based on the filing of our 2012 income tax returns and a review of our expected profitability levels, the Bank was able to reverse, in total, our outstanding deferred tax asset valuation allowance," stated Tom McGraw, Chief Executive Officer.
| Financial Highlights: Third Quarter, 2013 | |||||||||||||||||
| Consolidated Statements of Earnings | |||||||||||||||||
| (in '000s except earnings per share amounts) | |||||||||||||||||
| Three months ended September 30, 2013 |
Three months ended September 30, 2012 |
Nine months ended September 30, 2013 |
Nine months ended September 30, 2012 |
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| Interest income | $ | 9,259 | $ | 8,361 | $ | 28,014 | $ | 24,121 | |||||||||
| Interest expense | 560 | 663 | 1,881 | 2,000 | |||||||||||||
| Net interest income | 8,699 | 7,698 | 26,133 | 22,121 | |||||||||||||
| Provision for loan losses | (225 | ) | (400 | ) | (1,335 | ) | (1,200 | ) | |||||||||
| Noninterest income | 978 | 4,764 | 3,046 | 8,099 | |||||||||||||
| Noninterest expense | 6,950 | 6,631 | 22,074 | 20,182 | |||||||||||||
| Income before income taxes | 2,502 | 5,431 | 5,770 | 8,838 | |||||||||||||
| Provision for income taxes | 629 | (490 | ) | (330 | ) | (1,381 | ) | ||||||||||
| Net earnings | 3,131 | 4,941 | 5,440 | 7,457 | |||||||||||||
| Dividends and discount accretion on preferred stock | 251 | 158 | 581 | 501 | |||||||||||||
| Net earnings available to common shareholders | $ | 2,880 | $ | 4,783 | $ | 4,859 | $ | 6,956 | |||||||||
| Basic earnings per share | $ | 0.77 | $ | 1.30 | $ | 1.30 | $ | 1.89 | |||||||||
| Diluted earnings per share | $ | 0.75 | $ | 1.27 | $ | 1.27 | $ | 1.86 | |||||||||
| Average assets | $ | 903,868 | $ | 787,264 | $ | 900,794 | $ | 757,792 | |||||||||
| Average equity | $ | 89,728 | $ | 90,135 | $ | 92,994 | $ | 88,834 | |||||||||
| Return on average assets | 1.27 | % | 2.43 | % | 1.08 | % | 1.22 | % | |||||||||
| Return on average equity | 12.84 | % | 21.23 | % | 10.45 | % | 10.44 | % | |||||||||
| Efficiency ratio | 72 | % | 53 | % | 76 | % | 67 | % | |||||||||
| Net interest margin (taxable equivalent) | 4.23 | % | 4.58 | % | 4.34 | % | 4.55 | % | |||||||||
| Average shares outstanding | 3,761 | 3,692 | 3,735 | 3,689 | |||||||||||||
| Average diluted shares outstanding | 3,852 | 3,759 | 3,824 | 3,745 | |||||||||||||
| Financial Highlights: Third Quarter, 2013 | |||||||||||||
| Consolidated Balance Sheets | |||||||||||||
| (in '000s) | |||||||||||||
| As of September 30, 2013 |
As of December 31, 2012 |
As of September 30, 2012 |
As of December 31, 2011 |
||||||||||
| Assets: | |||||||||||||
| Cash and cash equivalents | $ | 18,368 | $ | 27,861 | $ | 53,708 | $ | 38,474 | |||||
| Interest-bearing time deposits with other financial institutions | 6,979 |
13,216 |
17,095 |
- |
|||||||||
| Securities available for sale, at fair value | 285,610 | 234,945 | 228,805 | 187,664 | |||||||||
| Loans, net | 558,164 | 541,563 | 547,549 | 443,721 | |||||||||
| Premises, equipment and leasehold improvements, net | 12,631 |
12,706 |
12,761 |
13,227 |
|||||||||
| Other real estate owned, net | 6,675 | 6,650 | 1,923 | 2,747 | |||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | |||||||||
| Other equity securities | 5,300 | 5,464 | 5,888 | 4,608 | |||||||||
| Accrued interest receivable | 3,855 | 3,760 | 3,639 | 3,614 | |||||||||
| Prepaid expenses | 741 | 1,372 | 1,513 | 2,107 | |||||||||
| Bank owned life insurance | 12,065 | 11,785 | 11,691 | 9,521 | |||||||||
| Other assets | 14,822 | 14,177 | 11,311 | 8,117 | |||||||||
| Total assets | $ | 927,051 | $ | 875,340 | $ | 897,724 | $ | 715,641 | |||||
| Liabilities and stockholders' equity: | |||||||||||||
| Deposits: | |||||||||||||
| Demand and NOW | $ | 263,480 | $ | 253,849 | $ | 254,611 | $ | 202,690 | |||||
| Savings and money market | 387,275 | 343,437 | 351,078 | 310,237 | |||||||||
| Time | 130,369 | 171,066 | 186,275 | 108,851 | |||||||||
| Total deposits | 781,124 | 768,352 | 791,964 | 621,778 | |||||||||
| Federal Home Loan Bank advances | 44,000 | 1,220 | 2,728 | - | |||||||||
| Accrued expenses and other liabilities | 9,109 | 10,410 | 8,316 | 6,667 | |||||||||
| Total liabilities | 834,233 | 779,982 | 803,008 | 628,445 | |||||||||
| Stockholders' equity | 92,818 | 95,358 | 94,716 | 87,196 | |||||||||
| Total liab. and stockholders' equity | $ | 927,051 | $ | 875,340 | $ | 897,724 | $ | 715,641 | |||||
| Other Financial Information | |||||||||||||
| Allowance for loan losses | $ | 9,748 | $ | 9,124 | $ | 8,582 | $ | 9,897 | |||||
| Nonperforming assets | $ | 15,728 | $ | 19,124 | $ | 25,555 | $ | 21,845 | |||||
| Total gross loans | $ | 567,912 | $ | 550,687 | $ | 556,131 | $ | 453,618 | |||||
"During the third quarter, the Bank's loan production activity was up substantially. Borrowers are beginning to make additional real estate investments in our service area. Overall, our assets grew by 2.8% during the quarter. Our stockholders' equity increased during the third quarter by 3.0% and we remain "well capitalized" by regulatory definitions. As our capital base will allow, it is the intent of our Board to make additional redemptions of outstanding Small Business Lending Program preferred stock. The Oceanic Bank purchase has been fully integrated into the operations of the Company and our capital is growing in line with our growth in assets. Steps taken by management to prudently reduce our future noninterest expenses by closing some of our branch offices is making a difference. Our salary and benefit costs were $213,000 lower during the third quarter of 2013 when compared to the prior quarter. We understand that we must meet or exceed our customer's expectations relative to their banking experience with us in order for us to continue to grow and be a positive influence in the communities we serve. For 50 years, we have built our organization around the idea that we must continually earn our customer's business," continued CEO Tom 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