FPB Financial Corp. Announces 2010 Third Quarter Earnings and Declares Dividends


HAMMOND, LA--(Marketwire - October 20, 2010) - FPB Financial Corp. (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, announced earnings for the quarter ended September 30, 2010.

Net income available to common shareholders for the three month period ending September 30, 2010 decreased to $439,000; ($1.19 diluted available earnings per common share) compared to $843,000 ($2.34 diluted available earnings per common share) in the 2009 period.

Earnings for the quarter were affected by increases in net interest income of $95,000, provisions for loan losses of $270,000, non-interest expense of $296,000, and a decrease in total non-interest income of $236,000, as compared to the third quarter of 2009.

Net interest income in the quarter increased 5.0% primarily due to our net interest margin increasing to 4.98% from 4.76%.

Provisions for loan losses increased 300.0% to $360,000 due to an increase in non-performing assets and other regional economic factors. Non-performing assets increased to $3.4 million, or 1.95% of average total assets compared to $1.1 million, or 0.61% of average total assets at September 30, 2009. Net loan charge-offs totaled $61,000 for the three month period compared to $230,000 in the second quarter of 2010 and $103,000 in the three months ending September 30, 2009. Allowance for loan losses increased in the twelve month period ending September 30, 2010 to $2.6 million, or 75.6% of non-performing assets.

Non-interest expenses increased 18.9% due to increases in compensation, professional fees, and other expenses.

Non-interest income decreased $236,000 or 21.4% primarily due to a $497,000 decline in gain on sale of real estate/investments. Mortgage banking income increased $288,000, or 171.3% due to an increase in mortgage refinancing volume.

Total assets increased 2.0% to $173.8 million as compared to September 30, 2009, primarily due to an $8.8 million increase in cash and cash equivalents offset by a $7.3 million decrease in net loans. Total deposits increased $1.2 million. Non-maturity demand/transaction/saving deposits increased $8.5 million, or 11.2%.

Net premises & equipment decreased $1.1 million or 12.5% as compared to September 30, 2009, primarily due to the 2009 sale of the bank's former main office facility and the 2010 transfer of $780,000 from net premises and equipment to other real estate owned (OREO). This transfer at the lower of cost or appraised value of two real estate parcels previously held in net premises and equipment for future branch development are, at September 30, 2010, now held as OREO and listed for sale at market value.

Total stockholders equity decreased $1.7 million, or 10.4% to $14.7 million for the twelve month period ending September 30, 2010, due to a $3.4 million, redemption of Series A and Series B Preferred Stock which was partially offset by a $1.9 million increase in retained earnings. Total tangible common equity increased $1.6 million, or 12.0% to $14.7 million, primarily due to the increase in retained earnings.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of September 30, 2010.

FPB Financial Corp. reported the following for September 30, 2010, and as compared to September 30, 2009:

   -- Net Interest Margin increased to 5.01% from 4.43%

   -- Net Interest income increased $95,000, or 5.0%

   -- Non-maturity deposits increased $8.5 million, or 11.2%

   -- Total Assets increased $3.5 million, or 2.0%

   -- Tangible Common Stockholders' Equity increased $1.6 million, or 12.0%

   -- Tangible Common Book Value per share increased to $40.11, or 9.7%

   -- Allowance for Loan Losses increased to $2.6 million

FPB Financial Corp. is headquartered in Hammond, LA and is the parent company of Florida Parishes Bank. The Company's common stock is traded under the "FPBF" symbol.

This news release contains certain forward-looking statements, including statements about the financial condition, results of operations and earnings outlook for FPB Financial Corp. and its subsidiaries. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond the Company's control, could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. These factors include, among others, the following: general economic conditions, changes in interest rates, deposit flows, the cost of funds, changes in credit quality, interest rate risks associated with the Company's business and operations and the adequacy of our allowance for loan losses. Other factors include changes in our loan portfolio, changes in competition, fiscal and monetary policies and legislation and regulatory changes. We undertake no obligation to update any forward-looking statements.

                           FPB Financial Corp.

                                       Sept 30,     June 30,     Sept 30,
Selected Balances                        2010         2010         2009
                                     ------------ ------------ ------------

                                      (Unaudited)  (Unaudited)  (Unaudited)

Cash and Cash Equivalents            $ 14,905,312 $ 14,650,738 $  6,103,749

Investment and Mortgaged-backed
 Securities                            19,576,218   14,783,997   17,866,826

Net Loans                             129,279,354  130,665,499  136,555,992

Other Real Estate Owned (OREO)            780,000      780,000      118,800

Non-Performing Assets (Includes
 OREO)                                  3,382,282    3,270,674    1,006,400

Allowance for Loan Losses               2,557,660    2,258,188    2,050,127

Total Assets                          173,846,280  170,099,652  170,376,487

Non-Interest Bearing Deposits          20,685,754   20,123,747   20,645,329

Interest-Bearing Deposits             109,092,755  106,357,036  107,932,788

Non-Maturity Deposits (Included in
 interest and non-interest bearing
 deposits)                             84,246,936   80,377,355   75,738,011

Brokered Deposits (Included in
 interest-bearing deposits)             6,155,733    6,152,947    5,438,889

FHLB Advances                          25,372,851   25,379,298   20,905,639

Subordinated Debentures/Trust
 Preferred Securities                   3,093,000    3,093,000    3,093,000

Tangible Common Stockholders' Equity
 (Includes other comprehensive
 income (OCI))                         14,730,768   14,410,112   13,151,351

Tangible Common Book Value per Share
 (Includes OCI)                      $      40.11 $      39.23 $      36.55




                   CONSOLIDATED STATEMENTS OF EARNINGS

                       For the Three Months          For the Nine Months
                              Ended                         Ended
                 Sept 30,    June 30,    Sept 30,    Sept 30,    Sept 30,
                   2010        2010        2009        2010        2009
               (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)

INTEREST INCOME:

 Mortgage Loans $2,119,298  $2,122,376  $2,008,764  $6,333,143  $5,858,942

 Consumer Loans    210,359     210,800     318,297     627,297     939,306

 Commercial Loans   70,784      66,054      62,046     195,278     189,065

 Consumer &
  Commercial Lines
  of Credit         39,812      38,877     106,011     113,806     292,094

 FHLB stock and
  other Investment
  Securities/
  Deposits          60,333      63,770      53,836     180,178     164,001

 Mortgage-backed
  securities        50,053      57,970      92,319     175,145     375,286
                ----------  ----------  ----------  ----------  ----------

TOTAL INTEREST
 INCOME          2,550,639   2,559,847   2,641,273   7,624,847   7,818,694
                ----------  ----------  ----------  ----------  ----------

INTEREST EXPENSE:
 Deposits          365,102     396,882     502,498   1,126,270   1,622,904

 Federal Home
  Loan Bank
  Advances         174,642     195,627     222,354     573,777     758,617

Subordinated
 Debentures/
 Trust Preferred
 Securities         28,749      26,756      29,280      81,414      98,786
                ----------  ----------  ----------  ----------  ----------

TOTAL INTEREST
 EXPENSE           568,493     619,265     754,132   1,781,461   2,480,307
                ----------  ----------  ----------  ----------  ----------

 NET INTEREST
  INCOME         1,982,146   1,940,582   1,887,141   5,843,386   5,338,387

Provisions for
 loan losses       360,000     175,000      90,000     700,000     465,000
                ----------  ----------  ----------  ----------  ----------

NET INTEREST
 INCOME AFTER
 PROVISION FOR
 LOAN LOSSES     1,622,146   1,765,582   1,797,141   5,143,386   4,873,387
                ----------  ----------  ----------  ----------  ----------

NON-INTEREST
 INCOME

Mortgage Banking   456,356     235,255     168,213     833,606     549,647

Service charge
 on deposits       248,839     236,080     252,682     715,261     671,343

Interchange
 Fees               83,121      76,195      71,904     231,731     207,802

Loan Fees and
 Charges            35,189      25,246      37,193      92,975      99,460

Gain/(Loss) on
 Sale of Real
 Estate/
 Investments        17,374      16,712     514,566     101,318     718,015

Gain/(Loss) on
 Investment
 Trading
 Accounts           (3,123)       (104)     16,716      36,604      86,749

Investment
 Impairment
 Charge                  0           0           0           0    (169,923)

Other               29,262      32,246      41,348      91,694     182,520
                ----------  ----------  ----------  ----------  ----------
TOTAL
 NON-INTEREST
 INCOME            867,018     621,630   1,102,622   2,103,189   2,345,613
                ----------  ----------  ----------  ----------  ----------

NON-INTEREST
 EXPENSE

Compensation
 and Employee
 Benefits        1,016,409     900,242     828,407   2,761,518   2,578,443

Occupancy,
 Property
 Taxes, and
 Equipment         199,114     183,246     166,434     565,474     537,435

Technology and
 Information
 Processing        143,940     143,438     147,258     414,775     319,149

Federal Deposit
 Insurance,
 Supervisory
 Fees/Taxes         90,015      85,285     128,559     263,728     381,596

Professional
 Fees              102,141      71,433      49,770     240,852     159,884

Other              308,448     249,346     243,737     743,742     721,135
                ----------  ----------  ----------  ----------  ----------

TOTAL
 NON-INTEREST
 EXPENSE         1,860,067   1,632,990   1,564,165   4,990,089   4,697,642
                ----------  ----------  ----------  ----------  ----------

INCOME BEFORE
 INCOME TAXES      629,097     754,222   1,335,598   2,256,486   2,521,358

Income Tax
 Expense
 (Benefit)         190,109     226,341     448,896     682,070     903,241
                ----------  ----------  ----------  ----------  ----------

NET INCOME         438,988     527,881     886,702   1,574,416   1,618,117

Dividends Paid
 to Preferred
 Shareholders            0      42,545      44,145      74,190      99,081

Accretion of
 Discount on
 Preferred
 Stock                   0      63,150           0     102,672           0
                ----------  ----------  ----------  ----------  ----------

Net Income
 Available to
 Common
 Shareholders   $  438,988  $  422,186  $  842,557  $1,397,554  $1,519,036
                ==========  ==========  ==========  ==========  ==========

Available
 Earnings Per
 Common Share   $     1.21  $     1.16  $     2.39  $     3.85  $     4.35

Diluted
 Available
 Earnings Per
 Common Share   $     1.19  $     1.15  $     2.34  $     3.80  $     4.22

Dividends Paid
 per Common
 Share          $     0.14  $     0.14  $     0.14  $     0.42  $     0.42

Net Income to
 Average Assets
 (Annualized)         1.01%       1.23%       2.02%       1.24%       1.23%

Net Income to
 Average Total
 Stockholders'
 Equity
 (Annualized)        11.90%      13.25%      22.02%      13.49%      14.41%

Net Interest
 Margin               4.98%       4.95%       4.76%       5.01%       4.43%

Efficiency
 Ratio               65.28%      63.73%      52.32%      62.80%      61.14%

Net Loan
 Charge-Off/
(Recoveries)    $   60,529  $  230,187  $  102,870  $  330,949  $  144,541
to Average Net
 Loans                0.05%       0.17%       0.08%       0.25%       0.11%

Non-Performing
 Assets          3,382,282   3,270,674   1,066,400   3,382,282   1,066,400
to Average Total
 Assets               1.95%       1.91%       0.61%       1.99%       0.60%

Allowance for
 Loan Losses     2,557,660   2,258,188   2,050,127   2,557,660   2,050,127
to Average Net
 Loans                1.96%       1.71%       1.52%       1.95%       1.54%
to Non-Performing
 Assets              75.62%      69.04%     192.23%      75.62%     192.23%




                   CONSOLIDATED STATEMENTS OF CONDITION

                               Sept 30, 2010  June 30, 2010  Sept 30, 2009
                                (Unaudited)    (Unaudited)    (Unaudited)

ASSETS:

Cash and Cash Equivalents      $  14,905,312  $  14,650,738  $   6,103,749

Investment and Mortgage-Backed
 Securities                       19,576,218     14,783,997     17,866,826

Net Loans                        129,279,354    130,665,499    136,555,992

Premises and Equipment, Net        7,696,355      7,731,234      8,779,567

Other Real Estate Owned              780,000        780,000        118,800

Other Assets                       1,609,041      1,488,184        951,553
                               -------------  -------------  -------------

  TOTAL ASSETS                 $ 173,846,280  $ 170,099,652  $ 170,376,487
                               =============  =============  =============

LIABILITIES:

Deposits                         129,778,509    126,480,783    128,578,117

Federal Home Loan Bank
 Advances                         25,372,851     25,379,298     20,905,639

Subordinated debentures/trust
 preferred securities              3,093,000      3,093,000      3,093,000

Other Liabilities                    871,152        736,459      1,408,380
                               -------------  -------------  -------------

  TOTAL LIABILITIES            $ 159,115,512  $ 155,689,540  $ 153,985,136
                               =============  =============  =============

STOCKHOLDERS' EQUITY:

Common Stock                   $       4,283  $       4,283  $       4,207

Capital Surplus                    6,244,738      6,244,738      6,128,276

Retained Earnings                  9,500,098      9,111,912      7,972,182

Unearned Compensation                (57,978)       (57,978)       (85,980)

Treasury Stock                    (1,227,321)    (1,227,321)    (1,227,321)

Other Comprehensive Income
 (Loss)                              266,948        334,478        359,987
                               -------------  -------------  -------------

Total Tangible Common
 Stockholders' Equity             14,730,768     14,410,112     13,151,351

Total Preferred Stockholders'
 Equity                                    0              0      3,240,000
                               -------------  -------------  -------------

Total Stockholders' Equity        14,730,768     14,410,112     16,391,351
                               -------------  -------------  -------------

  TOTAL LIABILITIES AND
   STOCKHOLDERS' EQUITY        $ 173,846,280  $ 170,099,652  $ 170,376,487
                               =============  =============  =============

Fritz W. Anderson II, Chairman of the Board announced today that "On October 14, 2010, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company bearing Cusip #302549 10 0. The dividend rate increased to $0.36 per share. This dividend rate is composed of a regular quarterly dividend rate of $0.14 per share and a special year-end dividend of $0.22 per share and will be paid on December 24, 2010 to stockholders of record at the close of business on December 10, 2010."

Contact Information: For More Information Contact: Fritz W. Anderson, II President, Chief Executive Officer, And Chairman FPB Financial Corp. (985) 345-1880