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

HAMMOND, LA--(Marketwire - Jan 25, 2012) - FPB Financial Corp. (OTCQB: FPBF) (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, today announced financial results for the fourth quarter and year ended December 31, 2011.

Earnings

Net income available to common shareholders for the fourth quarter of 2011 decreased to $350,000; ($0.99 per fully diluted common share) as compared to the 2010 fourth quarter net income available to common shareholders of $523,000 ($1.43 per fully diluted common share.)

Net income available to common shareholders for 2011 totaled $1.8 million; ($5.08 per fully diluted common share) down 5.4% from the 2010 available net income of $1.9 million ($5.27 per fully diluted common share.)

Items contributing to the Company's fourth quarter earnings when compared to the 2010 period were; a decrease of $400,000 in total non-interest income (primarily from a $228,000 decline in gain on sale of investments and a $217,000 decrease in mortgage banking fees); a $201,000 increase in foreclosed assets expense; and a $145,000 reduction in provision for loan losses. Net interest income increased $219,000 when compared to the 2010 period.

Asset Quality

Non-performing assets on December 31, 2011 increased $224,000, or 8.0%, to $3.0 million when compared to December 31, 2010. Non-performing assets on September 30, 2011 were $3.1 million.

Net loan charge-offs for the fourth quarter totaled ($94,000), down $316,000 from the 2010 fourth quarter total. Net loan charge-offs in the 2011 third quarter were $86,000. For the 2011 twelve month period, net loan charge-offs decreased to $254,000 from $553,000 in 2010.

Performing Troubled Debt Restructured (TDR's) as of December 31 totaled $3.6 million, or an increase of $374,000 from December 31, 2010. Performing TDR's on September 30, 2011 totaled $3.8 million.

The Company recorded a provision for loan losses in the 2011 fourth quarter of $150,000, a 49.3% decrease from the 2010 period. Provisions for 2011 totaled $656,000, down from $995,000 recorded in 2010. The Company's allowance for loan losses was $3.0 million on December, 31, 2011, or 2.5% of average net loans and 100.9% of non-performing assets. The allowance on December 31, 2010 was $2.6 million.

Balance Sheet and Capital

Total Assets on December 31, 2011 increased to $174.7 million, or 0.6% from $173.7 million on December 31, 2010. Total Assets on September 30, 2011 were $171.0 million. Net loans increased 5.9% to $126.3 million for the year ending December 31, 2011. Available for sale investment securities increased during the 2011 twelve month period 28.2% to $25.7 million. Trading securities decreased from $14.2 million on December 31, 2010 to $243,000 on December 31, 2011. Non-interest bearing deposits and total non-maturity deposits both increased in 2011, 9.6% and 4.5% respectively.

Common Stockholders' equity increased by a net of $1.2 million, or 8.1% to $16.1 million for the twelve month period ending December 31, 2011, primarily due to an increase of $1.5 million in retained earnings. Common Stockholders' equity rate of increase was reduced by an increase of $556,000 in treasury stock. The increase in treasury stock was due to the company completing the termination of its Employee Stock Ownership Plan (ESOP) and distributing the ESOP account balances to the ESOP participants during the second quarter of 2011.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of December 31, 2011.

FPB Financial Corp. reported the following for the period ending December 31, 2011, and as compared to December 31, 2010:

• Total Assets increased to $174.9 million, or 0.6%

• Net interest margin increased to 5.12%

• Non-Interest Bearing deposits increased to $22.8 million, or 9.6%

• Non-maturity Deposits increased $3.8 million, or 4.5%

• Dividends paid to common shareholders increased to $286,000, or 1.0%

• Common Stockholders' equity increased $1.2 million, or 8.1%

• Common Book Value per share increased to $45.89, or 11.6%

• Net loan charge-offs decreased $299,000, or 54.0%

• Foreclosed Assets decreased $393,000, or 25.7%

• Allowance for Loan Losses increased to $3.0 million, or 15.4%

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		Dec. 31, 2011				Dec. 31, 2010			% Change			Sept. 30, 2011				% Change
			(Unaudited	)									(Unaudited	)
Cash and Interest Earning Deposits		$	11,934,953			$	9,240,645		29			$	12,306,319			(3	)
Net Loans			126,309,459				119,226,316		6				121,970,199			4
Foreclosed Assets			1,133,388				1,526,432		(26	)			793,336			43
Non-Performing Assets (includes Foreclosed Assets)			3,007,078				2,782,561		8				3,082,869			(2	)
Allowance for Loan Losses			3,033,282				2,574,346		18				2,789,714			9
Total Assets			174,719,552				173,719,654		1				170,985,880			2
Non-Interest Bearing Deposits			22,774,022				20,829,844		9				22,815,069			0
Interest-Bearing Deposits			106,561,531				109,378,780		(3	)			104,465,550			2
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			88,806,587				84,975,598		5				88,472,290			0
Brokered Deposits (Included in interest- bearing deposits)			7,116,816				7,500,064		(5	)			7,083,907			0
FHLB Advances			25,361,627				24,752,506		2				23,768,479			7
Subordinated Debentures/Trust Preferred Securities			3,093,000				3,093,000		0				3,093,000			0
Tangible Common Stockholders' Equity			15,918,488				14,882,061		7				15,644,775			2
Total Common Stockholders' Equity			16,132,126				14,947,648		8				15,963,597			1

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months												For the Twelve Months
			Ended												Ended
			Dec 31, 2011				Sept 30, 2011				Dec 31, 2010				Dec 31, 2011				Dec 31, 2010
				(Unaudited	)			(Unaudited	)							(Unaudited	)
INTEREST AND DIVIDED INCOME:
	Mortgage Loans		$	2,061,602			$	2,031,765			$	2,065,824			$	8,116,890			$	8,398,969
	Consumer Loans			233,040				241,298				209,660				940,977				836,960
	Commercial Loans			71,999				68,250				69,584				271,623				264,862
	Consumer & Commercial Lines of Credit			42,284				43,638				36,435				168,541				150,240
	Investment Securities and Deposits			156,553				145,397				117,919				530,099				473,243
TOTAL INTEREST AND DIVIDEND INCOME				2,565,478				2,530,348				2,499,422				10,028,130				10,124,274
INTEREST EXPENSE:
	Deposits			209,009				220,881				346,421				977,990				1,472,691
Federal Home Loan Bank Advances				148,226				146,402				164,658				604,567				738,460
Other				27,037				26,452				26,525				106,813				107,913
TOTAL INTEREST EXPENSE				384,272				393,735				537,604				1,689,370				2,319,064
	NET INTEREST INCOME			2,181,206				2,136,613				1,961,818				8,338,760				7,805,210
Provisions for loan losses				149,639				45,000				295,000				656,468				995,000
NET INTEREST INCOMEAFTER PROVISION FORLOAN LOSSES				2,031,567				2,091,613				1,666,818				7,682,292				6,810,210
NON-INTEREST INCOME:
Service charges on deposits				216,907				223,392				225,137				793,912				940,398
Mortgage Banking Fees				177,813				223,089				394,581				731,222				1,226,345
Interchange Fees				97,637				98,959				85,723				373,392				317,454
Loan Fees and Charges				47,376				46,558				32,646				178,607				125,621
Gain/(Loss) on Sale of Investments/Foreclosed Assets				(4,296	)			7,070				224,094				5,581				304,563
Gain/(Loss) on Trading Accounts				(5,814	)			(62,850	)			(23,637	)			(93,076	)			12,966
Other				26,406				26,573				17,182				117,615				125,566
TOTAL NON-INTEREST INCOME				556,029				562,791				955,726				2,107,253				3,052,913
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,029,837				1,010,805				1,036,301				3,895,947				3,797,817
Occupancy, Property Taxes, and Equipment				215,863				212,374				190,185				828,134				755,660
Technology and Information Processing				163,791				147,138				151,626				582,023				566,401
Regulatory Fees				2,726				101,795				123,272				327,101				387,001
Foreclosed Assets				260,854				2,124				60,287				283,318				73,701
Professional Fees				73,608				65,393				17,569				242,478				258,420
Other				337,426				233,091				274,701				954,000				998,785
TOTAL NON-INTEREST EXPENSE				2,084,105				1,772,720				1,853,941				7,113,001				6,837,785
INCOME BEFORE INCOME TAXES				503,491				881,684				768,603				2,676,544				3,025,338
Income Tax Expense				153,940				295,646				245,121				858,301				927,191
NET INCOME				349,551				586,038				523,482				1,818,243				2,098,147
Dividends Paid to Preferred Shareholders				0				0				0				0				74,190
Accretion of Discount on Preferred Stock				0				0				0				0				102,671
Net Income Available to Common Shareholders			$	349,551			$	586,038			$	523,482			$	1,818,243			$	1,921,286
PER COMMON SHARE DATA:
Available Earnings			$	1.00			$	1.67			$	1.44			$	5.11			$	5.29
Diluted Available Earnings			$	0.99			$	1.66			$	1.43			$	5.08			$	5.27
Dividends Paid			$	0.36			$	0.15			$	0.36			$	0.81			$	0.78
Revenue (Net Interest Income and Non-Interest Income)			$	7.81			$	7.70			$	8.02			$	29.35			$	29.91
Book Value Period End			$	45.89			$	45.55			$	41.12			$	45.89			$	41.12
Tangible Book Value Period End			$	45.23			$	44.65			$	40.94			$	45.23			$	40.94
RATIOS:
Net Income to Average Period Assets (Annualized)				0.80	%			1.35	%			1.19	%			1.04	%			1.22	%
Net Income to Average Period Total Stockholders' Equity (Annualized)				8.66	%			14.94	%			13.94	%			11.70	%			13.58	%
Net Interest Margin (Average) for the period				5.49	%			5.36	%			4.85	%			5.12	%			4.97	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				3.50	%			2.78	%			2.04	%			2.86	%			2.21	%
Efficiency Ratio for the Period				76.14	%			65.67	%			63.54	%			68.09	%			62.97	%
Net Loan Charge-Offs for the Period			$	(93,929	)		$	85,881			$	221,713			$	254,132			$	552,663
	to Average Period Net Loans (Annualized)			(0.30	%)			0.28	%			0.71	%			0.21	%			0.43	%
TDRs (Performing) at Period End			$	3,632,371			$	3,822,451			$	3,257,876			$	3,632,371			$	3,257,876
	to Average Period Net Loans			2.94	%			3.11	%			2.62	%			2.98	%			2.52	%
Non-Performing Assets at Period			$	3,007,078			$	3,082,869			$	2,782,561			$	3,007,078			$	2,782,561
	End to Average Period Total Assets			1.74	%			1.78	%			1.59	%			1.72	%			1.62	%
Allowance for Loan Losses at Period End			$	3,033,282			$	2,789,714			$	2,574,346			$	3,033,282			$	2,574,346
	to Average Period Net Loans			2.46	%			2.27	%			2.07	%			2.47	%			2.00	%
	to Non-Performing Assets at Period End			100.87	%			96.02	%			92.52	%			100.87	%			95.52	%

CONSOLIDATED STATEMENTS OF CONDITION
		Dec 31, 2011				Dec 31, 2010				% Change			Sept 30, 2011				% Change
			(Unaudited	)										(Unaudited	)
ASSETS:
Cash and Cash Equivalents		$	4,848,445			$	3,747,116			29			$	4,682,734			4
Interest Earning Deposits			7,086,508				5,493,529			29				7,623,585			(7	)
Securities- Available for Sale			25,735,921				20,067,250			28				25,027,946			3
Trading Securities			243,069				14,239,436			(98	)			2,265,249			(89	)
Net Loans			126,309,459				119,226,313			6				121,970,199			4
Accrued Interest Receivable			622,776				543,470			15				544,304			14
Premises and Equipment, Net			7,870,050				7,645,630			3				7,585,748			4
Foreclosed Assets			1,133,388				1,526,432			(26	)			793,336			43
Other Assets			869,936				1,230,478			(29	)			492,779			77
TOTAL ASSETS		$	174,719,552			$	173,719,654			1			$	170,985,880			2
LIABILITIES:
Deposits			129,335,553				130,208,376			(1	)			127,280,619			2
Federal Home Loan Bank Advances			25,361,627				24,752,506			2				23,768,479			7
Subordinated debentures/trust preferred securities			3,093,000				3,093,000			0				3,093,000			0
Other Liabilities			797,246				718,124			11				880,185			(9	)
TOTAL LIABILITIES		$	158,587,426			$	158,772,006			0			$	155,022,283			2
STOCKHOLDERS' EQUITY:
Common Stock		$	4,431			$	4,285			3			$	4,289			3
Capital Surplus			6,274,941				6,258,067			0				6,264,367			0
Retained Earnings			11,424,558				9,892,611			15				11,201,594			2
Unearned Compensation			(19,974	)			(45,581	)		56				(42,007	)		52
Treasury Stock			(1,783,468	)			(1,227,321	)		(45	)			(1,783,468	)		0
Other Comprehensive Income (Loss)			231,638				65,587			253				318,822			(27	)
Total Stockholders' Equity			16,132,126				14,947,648			8				15,963,597			1
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	174,719,552			$	173,719,654			1	%		$	170,985,880			2	%

Fritz W. Anderson II, Chairman of the Board announced today that "On January 12, 2012, 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 $0.16 per share and will be paid on March 26, 2012 to stockholders of record at the close of business on March 9, 2012."