SOURCE: FPB Financial Corp.

April 20, 2011 10:32 ET

FPB Financial Corp. Announces 2011 First Quarter Financial Results and Declares Dividends

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
                               -------------- -------------- --------------
                                (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
                            --------------  --------------  --------------

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