HAMMOND, LA--(Marketwire - Apr 20, 2011) - FPB Financial Corp. (OTCQB: FPBF) (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, announced financial results for the first quarter ended March 31, 2011.
Earnings
The first quarter's net income available to common shareholders was $477,000, a decrease of 11.0%; ($1.30 diluted available earnings per common share) compared to the 2010 first quarter.
Principal items contributing to the Company's first quarter earnings, when compared to the 2010 period; were an $80,000, or 9.5% increase in compensation/employee benefits, a $71,000 decrease in dividends paid/accretion of discount on preferred stock, a $55,000, or 38.3% decrease in provisions for loan losses and a $25,000, or 17.6% increase, in mortgage banking revenue.
First quarter total non-interest expenses increased by $127,000, or 8.5%.
Asset Quality
Non-performing assets at March 31, 2011 increased $24,000, or 0.9% to $2.8 million from $2.8 million as of December 31, 2010. Non-performing assets on March 31, 2010 totaled $1.4 million.
Net loan charge-offs for the 2011 first quarter totaled $23,000, or 0.08% (annualized) of average net loans, down from the $222,000 of net loan charge-offs in the fourth quarter of 2010.
FPB recorded a provision for loan losses for the 2011 first quarter of $110,000. The Company's allowance for loan losses was $2.7 million at March 31, 2011, or 2.3% of average net loans, $2.6 million at December 31, 2010, and $2.3 million as of March 31, 2010.
Balance Sheet and Capital
Total assets at March 31, 2011 increased to $179.5 million, or 9.9%, from $169.6 million on March 31, 2010, primarily due to a $27.8 million increase in investments and mortgage-backed securities. Total deposits increased $9.7 million to $133.0 million.
Total stockholders equity decreased $948,000, or 5.8% to $15.4 million for the twelve month period ending March 31, 2011, due to a $2.3 million redemption of Series A and Series B Preferred Stock which was partially offset by a $1.6 million increase in retained earnings. Total tangible common equity increased $1.4 million, or 9.9% to $15.4 million, due to the increase in retained earnings.
Other
The Company has terminated its Employee Stock Ownership Plan (the "ESOP") and is in the process of distributing the ESOP account balances to the ESOP participants. At March 31, 2011, the ESOP held 26,808 shares of common stock of the Company, all of which have been allocated to the accounts of ESOP participants. Each ESOP participant can elect to receive the value of his account balance in the form of all stock, all cash or a combination of stock and cash. Those participants who elect cash in lieu of shares of common stock will receive cash equal to $37.71 per share, which is the appraised value of the common stock as determined by an independent third party. Because such value is higher than recent trading prices for the Company's common stock, the Company expects that a substantial percentage of its employees will elect to receive cash rather than shares of common stock, which will result in the Company repurchasing the excess number of shares of common stock at their appraised value.
The Bank's real estate owned includes a property with a carrying value of $250,000 and an appraised value of $325,000 based on commercial zoning. The Bank has received notice from parish officials that the commercial zoning of the property is proposed to be changed to residential zoning based on a lack of continuous use of the property. A recent appraisal of the property obtained by the Bank indicated that the appraised value of the property would decrease to $30,000 if the zoning is changed to residential property, which would result in a substantial write-down of the property by the Bank by over $220,000. A hearing is scheduled to be held in late April, and the Bank believes that it has meritorious defenses to the proposed zoning change. However, there can be no assurances that the property will be able to maintain its commercial zoning or that a substantial write-down in the value of the property can be avoided.
Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of March 31, 2011.
FPB Financial Corp. reported the following for the period ending March 31, 2011, and as compared to March 31, 2010:
-- Total Assets increased $9.9 million to $179.5 million, or 5.8% -- Non-Interest Bearing deposits increased to $20.5 million, or 3.7% -- Non-maturity deposits increased $10.5 million, or 13.2% -- Tangible Common Stockholders' Equity increased $1.4 million, or 10.0% -- Tangible Common Book Value per share increased to $41.82, or 9.9% -- Net Loan Charge-off decreased $18,000, or 44.1% -- Allowance for Loan Losses increased to $2.7 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
Selected Balances March 31, 2011 Dec 31, 2010 March 31, 2010
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(Unaudited) (Audited) (Unaudited)
Cash and Cash Equivalents $ 9,009,941 $ 9,240,645 $ 14,624,235
Investment and Mortgaged-backed
Securities 40,390,609 34,306,686 12,601,735
Net Loans 119,766,770 119,226,316 132,275,591
Other Real Estate Owned (OREO) 1,229,058 1,526,432 156,828
Non-Performing Assets
(Includes OREO) 2,806,704 2,782,561 1,448,247
Allowance for Loan Losses 2,718,214 2,630,950 2,313,376
Total Assets 179,483,840 173,746,584 169,623,231
Non-Interest Bearing Deposits 20,480,043 20,829,844 19,743,132
Interest-Bearing Deposits 112,507,012 109,378,780 103,537,881
Non-Maturity Deposits
(Included in interest and
non-interest bearing
deposits) 89,702,708 84,975,598 79,240,662
Brokered Deposits (Included in
interest-bearing deposits) 7,194,851 7,500,064 5,403,266
FHLB Advances 27,279,702 24,752,506 25,935,660
Subordinated Debentures/Trust
Preferred Securities 3,093,000 3,093,000 3,093,000
Tangible Common Stockholders'
Equity (Includes other
comprehensive income (OCI)) 15,369,469 14,947,649 13,978,579
CONSOLIDATED STATEMENTS OF EARNINGS
For the Three Months
Ended
March 31, 2011 Dec 31, 2010 March 31, 2010
(Unaudited) (Audited) (Unaudited)
INTEREST INCOME:
Mortgage Loans $ 1,981,093 $ 2,065,824 $ 2,091,469
Consumer Loans 200,325 209,660 206,137
Commercial Loans 65,042 69,584 58,440
Consumer & Commercial Lines
of Credit 40,049 36,435 35,120
FHLB stock and other Investment
Securities/Deposits 58,039 70,109 56,074
Mortgage-backed securities 68,976 47,810 67,121
------------ ------------ ------------
TOTAL INTEREST INCOME 2,413,524 2,499,422 2,514,361
------------ ------------ ------------
INTEREST EXPENSE:
Deposits 297,908 346,421 364,286
Federal Home Loan Bank Advances 157,501 164,683 203,508
Subordinated Debentures/
Trust Preferred Securities 26,312 26,500 25,909
------------ ------------ ------------
TOTAL INTEREST EXPENSE 481,721 537,604 593,703
------------ ------------ ------------
NET INTEREST INCOME 1,931,803 1,961,818 1,920,658
Provisions for loan losses 110,000 295,000 165,000
------------ ------------ ------------
NET INTEREST INCOME AFTER
PROVISION FOR LOAN LOSSES 1,821,803 1,666,818 1,755,658
------------ ------------ ------------
NON-INTEREST INCOME
Service charge on deposits 194,301 225,137 230,342
Mortgage Banking 166,714 394,581 141,995
Interchange Fees 86,323 85,723 72,415
Loan Fees and Charges 43,094 32,646 32,540
Gain/(Loss) on Sale of Real
Estate/Investments 7,716 224,094 68,753
Gain/(Loss) on Investment Trading
Accounts (8,693) (23,637) 39,830
Other 37,602 17,182 30,085
------------ ------------ ------------
TOTAL NON-INTEREST INCOME 527,057 955,726 615,960
------------ ------------ ------------
NON-INTEREST EXPENSE
Compensation and Employee
Benefits 925,054 1,036,301 844,867
Occupancy, Property Taxes, and
Equipment 198,992 190,185 183,114
Technology and Information
Processing 135,565 151,626 127,397
Federal Deposit Insurance,
Supervisory Fees/Taxes 110,337 123,272 88,428
Professional Fees 62,889 17,569 67,278
Other 192,802 334,988 187,853
------------ ------------ ------------
TOTAL NON-INTEREST EXPENSE 1,625,639 1,853,941 1,498,937
------------ ------------ ------------
INCOME BEFORE INCOME TAXES 723,221 768,603 872,681
Income Tax Expense (Benefit) 245,895 245,121 265,620
------------ ------------ ------------
NET INCOME 477,326 523,482 607,061
Dividends Paid to Preferred
Shareholders 0 0 31,645
Accretion of Discount on
Preferred Stock 0 0 39,522
------------ ------------ ------------
Net Income Available to Common
Shareholders $ 477,326 $ 523,482 $ 535,894
============ ============ ============
PER COMMON SHARE DATA:
Available Earnings $ 1.31 $ 1.44 $ 1.48
Diluted Available Earnings $ 1.30 $ 1.43 $ 1.46
Dividends Paid $ 0.15 $ 0.36 $ 0.14
Tangible Book Value at Period End $ 41.82 $ 40.67 $ 38.06
RATIOS:
Net Income to Average Period
Assets (Annualized) 1.10% 1.19% 1.49%
Net Income to Average Period
Total Stockholders' Equity
(Annualized) 12.75% 13.94% 15.32%
Net Interest Margin (Average) for
the Period 4.86% 4.85% 5.12%
Non-Interest Expense less Non-Interest
Income to Average Period Total Assets
(Annualized) 2.52% 2.04% 2.16%
Efficiency Ratio for the Period 66.11% 63.54% 59.09%
Net Loan Charge-Offs for the
Period $ 22,733 $ 221,713 $ 40,633
to Average Period Net Loans
(Annualized) 0.08% 0.71% 0.12%
TDRs (Performing) at Period End $ 3,142,668 $ 3,257,876 $ 1,724,303
to Average Period Net Loans 2.63% 2.62% 1.31%
Non-Performing Assets at Period
End $ 2,806,704 $ 2,782,561 $ 1,448,247
to Average Period Total Assets 1.59% 1.59% 0.87%
Allowance for Loan Losses at
Period End $ 2,718,214 $ 2,630,950 $ 2,313,376
to Average Period Net Loans 2.28% 2.12% 1.75%
to Non-Performing Assets at
Period End 96.85% 94.55% 159.74%
CONSOLIDATED STATEMENTS OF CONDITION
March 31, 2011 Dec 31, 2010 March 31, 2010
(Unaudited) (Audited) (Unaudited)
ASSETS:
Cash and Cash Equivalents $ 9,009,941 $ 9,240,645 $ 14,624,235
Investment and Mortgage-Backed
Securities 40,390,609 34,306,686 12,601,735
Net Loans 119,766,770 119,226,316 132,275,591
Premises and Equipment, Net 7,754,061 7,645,628 8,601,175
Other Real Estate Owned 1,229,058 1,526,432 156,828
Other Assets 1,333,401 1,800,877 1,363,667
-------------- -------------- --------------
TOTAL ASSETS $ 179,483,840 $ 173,746,584 $ 169,623,231
============== ============== ==============
LIABILITIES:
Deposits 132,987,055 130,208,374 123,281,013
Federal Home Loan Bank
Advances 27,279,702 24,752,506 25,935,660
Subordinated debentures/trust
preferred securities 3,093,000 3,093,000 3,093,000
Other Liabilities 754,614 745,055 996,127
-------------- -------------- --------------
TOTAL LIABILITIES $ 164,114,371 $ 158,798,935 $ 153,305,800
============== ============== ==============
STOCKHOLDERS' EQUITY:
Common Stock $ 4,284 $ 4,284 $ 4,283
Capital Surplus 6,258,751 6,258,068 6,241,972
Retained Earnings 10,315,248 9,892,612 8,740,227
Unearned Compensation (45,012) (45,581) (60,367)
Treasury Stock (1,227,321) (1,227,321) (1,227,321)
Other Comprehensive Income
(Loss) 63,519 65,587 279,785
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Total Tangible Common
Stockholders' Equity 15,369,469 14,947,649 13,978,579
Total Preferred
Stockholders' Equity 0 0 2,338,852
-------------- -------------- --------------
Total Stockholders' Equity 15,369,469 14,947,649 16,317,431
-------------- -------------- --------------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 179,483,840 $ 173,746,584 $ 169,623,231
============== ============== ==============
Fritz W. Anderson II, Chairman of the Board announced today that "On April 14, 2011, 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 $0.15 per share and will be paid on June 25, 2011 to stockholders of record at the close of business on June 10, 2011."
Contact Information: For More Information Contact: Fritz W. Anderson, II President, Chief Executive Officer, And Chairman FPB Financial Corp. (985) 345-1880