SOURCE: FNB Bancorp

FNB Bancorp

October 20, 2015 16:00 ET

First National Bank of Northern California Reports Third Quarter 2015 Earnings of $0.51 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwired - Oct 20, 2015) - FNB Bancorp (OTCQB: FNBG), parent company of First National Bank of Northern California (the "Bank"), today announced net earnings available to common shareholders for the third quarter of 2015 of $2,239,000 or $0.51 per diluted share, compared to net earnings available to common shareholders of $1,823,000 or $0.42 per diluted share for the third quarter of 2014. 

"The third quarter of 2015 was a quarter of solid earnings for the Company, accentuated by a favorable income tax settlement that is underway with the Franchise Tax Board of California related to the Company's enterprise zone net interest deduction claimed on state income returns for the years 2005 through 2013. As a result, the Company was able to record a $535,416 tax benefit during the quarter related to this settlement. The acquisition of America California Bank allowed the Company to record net interest income during the third quarter that was higher than above levels recorded for the second quarter of 2015. Acquisition expenses of America California Bank, net of related tax benefits, were $527,000 during the third quarter. Total assets have increased $194 million since the beginning of the year, primarily related to the America California Bank acquisition," stated Tom McGraw, CEO.

                         
                         
Financial Highlights: Third Quarter, 2015   (Unaudited)  
Consolidated Statements of Earnings
(in 000s except share and earnings per share amounts)
  Three months
ended
September 30,
2015
    Three months
ended
September 30,
2014
    Nine months
ended
September 30,
2015
    Nine months
ended
September 30,
2014
 
                                 
Interest income   $ 9,893     $ 9,300     $ 28,261     $ 27,544  
Interest expense     691       538       1,800       1,562  
  Net interest income     9,202       8,762       26,461       25,982  
Provision for loan losses     (75 )     -       (225 )     (75 )
Noninterest income     1,022       1,041       3,367       3,067  
Noninterest expense     7,479       7,055       21,211       21,107  
  Income before provision for income taxes     2,670       2,748       8,392       7,867  
Provision for income taxes     (431 )     (925 )     (2,283 )     (2,581 )
  Net earnings     2,239       1,823       6,109       5,286  
  Dividends and discount accretion on preferred stock     -       -       -       170  
  Net earnings available to common shareholders   $ 2,239     $ 1,823     $ 6,109     $ 5,116  
                                 
Basic earnings per share   $ 0.52     $ 0.43     $ 1.42     $ 1.21  
Diluted earnings per share   $ 0.51     $ 0.42     $ 1.38     $ 1.17  
                                 
Average assets   $ 1,040,049     $ 903,222     $ 971,294     $ 897,247  
Average equity   $ 100,801     $ 91,455     $ 99,556     $ 89,738  
Return on average assets     0.86 %     0.81 %     1.26 %     1.14 %
Return on average equity     8.88 %     7.97 %     12.27 %     11.40 %
Efficiency ratio     73 %     72 %     71 %     73 %
Net interest margin (taxable equivalent)     4.00 %     4.20 %     4.09 %     4.23 %
Average shares outstanding     4,309       4,250       4,293       4,222  
Average diluted shares outstanding     4,422       4,384       4,414       4,364  
                                 

 

                 
                 
Financial Highlights: Third Quarter, 2015
 
Consolidated Balance Sheets
(in '000s)
 
 
 
 
(Unaudited)
As of
September 30,
2015
 
 
 
 
*
As of
December 31,
2014
 
 
 
 
(Unaudited)
As of
September 30,
2014
 
 
 
 
*
As of
December 31,
2013
                         
Assets:                        
Cash and cash equivalents   $ 40,282   $ 14,978   $ 15,220   $ 14,007
Interest-bearing time deposits with other financial institutions     1,246     2,784     4,068     5,543
Securities available for sale, at fair value     315,560     264,881     267,924     263,988
Loans, net     696,888     583,715     568,533     552,343
Premises, equipment and leasehold improvements, net     10,326     10,951     12,239     12,512
Other real estate owned, net     838     763     755     5,318
Goodwill     4,580     1,841     1,841     1,841
Other equity securities     6,748     5,769     5,769     5,300
Accrued interest receivable     4,326     3,725     3,670     3,808
Prepaid expenses     877     1,045     444     701
Bank owned life insurance     12,766     12,510     12,424     12,151
Other assets     17,021     14,202     14,535     14,418
  Total assets   $ 1,111,458   $ 917,164   $ 907,422   $ 891,930
                         
Liabilities and stockholders' equity:                        
Deposits:                        
Demand and NOW   $ 346,888   $ 292,359   $ 284,196   $ 279,269
Savings and money market     512,534     394,676     393,929     370,194
Time     129,943     105,159     104,031     124,152
  Total deposits     989,365     792,194     782,156     773,615
Federal Home Loan Bank advances     -     9,000     16,000     15,000
Note payable     5,100     5,550     5,700     -
Accrued expenses and other liabilities     13,303     13,332     10,974     9,066
  Total liabilities     1,007,768     820,076     814,830     797,681
Stockholders' equity     103,690     97,088     92,592     94,249
  Total liab. and stockholders' equity   $ 1,111,458   $ 917,164   $ 907,422   $ 891,930
                         
* Excerpt from the audited annual financial statements                  
                         
Other Financial Information                        
Allowance for loan losses   $ 9,940   $ 9,700   $ 10,774   $ 9,879
Nonperforming assets   $ 6,030   $ 6,411   $ 5,875   $ 12,669
Total gross loans   $ 706,828   $ 593,415   $ 579,307   $ 562,222
                         

"Our net interest margin continued to move lower during the third quarter of 2015, due primarily to the low interest rate environment created by the current policy position of the Federal Open Market Committee (the 'Committee') of the Federal Reserve Bank. To date, there has been no set date established by the Committee as to when they intend to begin raising short term interest rate targets. Until they do, our net interest margin will continue to experience downward pressure in the near term. Noninterest expenses during the third quarter were negatively affected by acquisition costs. Management is committed to keep ongoing operating costs related to the America California Bank acquisition at a minimum. The recorded goodwill related to the America California Bank acquisition was $2,739,000. Management believes the payback period related to the recorded goodwill should be approximately 1.5 years," continued 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