SOURCE: FPB Financial Corp.

July 21, 2011 11:55 ET

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

HAMMOND, LA--(Marketwire - Jul 21, 2011) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the second quarter ended June 30, 2011.

Earnings

Net income available to common shareholders was $405,000 with fully diluted available earnings per common share of $1.13. The 2011 second quarter diluted available earnings decreased slightly when compared to $1.15 for the same quarter a year ago and to $1.30 in the 2011 first quarter.

Items contributing to the Company's first quarter earnings when compared to the 2010 period were; a $177,000, or 101% increase in provisions for loan losses; a $106,000 decrease in dividends paid/accretion of discount on preferred stock; a $72,000, or 30.5% decrease in mortgage banking revenue; and a $64,000, or 28% decrease in income tax expense.

Second quarter total non-interest expenses decreased slightly when compared to the 2010 second quarter.

Asset Quality

Non-performing assets (including troubled debt restructured) on June 30, 2011 decreased $199,000, or 6.1% to $3.1 million when compared to June 30, 2010. Non-performing assets on March 31, 2011 totaled $2.8 million.

Net loan charge-offs for the second quarter totaled $225,000, down from $230,000 in the 2010 second quarter. Included in the quarter's loan charge-offs was a $223,000 charge-off of a previously noted real estate owned property involved in a parish zoning dispute. This property as of June 30 has a carrying value of $27,000 as compared to a carrying value of $250,000 on March 31, 2011.

Performing Troubled Debt Restructured (TDR's) as of June 30 totaled $3.4 million, or an increase of $1.6 million when compared to June 30, 2010. Performing TDR's on March 31, 2011 totaled $3.1 million.

The Company recorded a provision for loan losses in the second quarter of $352,000, a 101% increase over the 2010 period, primarily due to a discussed second quarter charge-off of an individual real estate owned parcel. The company's allowance for loan losses was $2.8 million on June 30, 2011, or 2.3% of average net loans, $2.3 million on June 30, 2010 and $2.7 million on March 31, 2011.

Balance Sheet and Capital

Total Assets on June 30, 2011 increased to $175.1 million, or 3.0% from $170.1 million on June 30, 2010, primarily due to a $14.1 million increase in investment, trading and mortgage-backed securities. Net loans decreased 6.4% to $122.3 million. Total deposits increased 4.4% to $132.0 million.

Tangible Common Stockholders' Equity increased $799,000, or 5.5% to $15.2 million for the twelve month period ending June 20, 2011, due to an increase of $1.6 million in retained earnings and due to 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 June 30, 2011.

FPB Financial Corp. reported the following for the period ending June 30, 2011, and as compared to June 30, 2010:

  • Total Assets increased $5.0 million to $175.1 million, or 2.9%

  • Non-Interest Bearing deposits increased to $23.9 million, or 18.9%

  • Non-maturity Deposits increased $10.5 million, or 13.1%

  • Dividends paid to common shareholders increased to $0.80 per share, or 2.6%

  • Tangible Common Stockholders' Equity increased $800,000, or 5.5%

  • Tangible Common Book Value per share increased to $43.11, or 9.9%

  • Non-performing Assets decreased $199,000, or 6.1%

  • Net Loan Charge-off decreased $23,000, or 8.6%

  • Allowance for Loan Losses increased to $2.8 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

June 30, 2011

June 30, 2010

% Change

March 31, 2011

% Change
(Unaudited) (Unaudited) (Unaudited)
Cash and Cash Equivalents $ 14,127,682 $ 14,650,738 (4 %) $ 9,009,941 57 %
Investment, Trading, and Mortgaged-backed Securities
28,872,664

14,783,997

95

40,390,609

(29
)
Net Loans 122,310,968 130,665,499 (6 ) 119,766,770 2
Other Real Estate Owned (OREO) 793,336 649,491 22 1,229,058 (35 )
Non-Performing Assets (Includes OREO)
3,071,596

3,270,674

(6
)
2,806,704

9
Allowance for Loan Losses 2,829,188 2,258,188 25 2,718,214 4
Total Assets 175,118,317 170,099,652 3 179,483,840 (2 )
Non-Interest Bearing Deposits 23,864,037 20,123,747 19 20,480,043 17
Interest-Bearing Deposits 108,124,732 106,357,036 2 112,507,012 (4 )
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)

90,861,158


80,377,355


13


89,702,708


1
Brokered Deposits (Included in interest- bearing deposits)
7,128,026

6,152,947

16

7,194,851

(1
)
FHLB Advances 23,973,008 25,379,298 (6 ) 27,279,702 (12 )
Subordinated Debentures/Trust Preferred Securities
3,093,000

3,093,000

0

3,093,000

0
Tangible Common Stockholders' Equity (Includes other comprehensive income (OCI))

15,208,798


14,410,112


6


15,369,469


(1
)
CONSOLIDATED STATEMENTS OF EARNINGS
For the Three Months For the Six Months
Ended Ended
June 30, 2011 March 31, 2011 June 30, 2010 June 30, 2011 June 30, 2010
(Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
INTEREST INCOME:
Mortgage Loans $ 2,042,430 $ 1,981,093 $ 2,122,376 $ 4,023,523 $ 4,213,845
Consumer Loans 237,244 229,394 253,433 466,639 504,151
Commercial Loans 66,333 65,042 66,054 131,374 124,494
Consumer & Commercial
Lines of Credit

42,570

40,049

38,877

82,619

73,994
Mortgage-backed securities 56,911 68,976 57,968 125,887 125,092
FHLB stock and other
Investment, Trading
Securities/Deposits


44,223


58,039


63,771


102,262


119,845
TOTAL INTEREST INCOME 2,489,711 2,442,593 2,602,479 4,932,304 5,161,421
INTEREST EXPENSE:
Deposits 250,193 297,908 396,882 548,101 761,168
Federal Home Loan Bank
Advances

152,507

157,501

195,627

309,939

399,135
Other 26,942 26,312 26,756 53,323 52,665
TOTAL INTEREST EXPENSE 429,642 481,721 619,265 911,363 1,212,968
NET INTEREST INCOME 2,060,069 1,960,872 1,983,214 4,020,941 3,948,453
Provisions for loan losses 351,828 110,000 175,000 461,828 340,000
NET INTEREST INCOME
AFTER PROVISION FOR
LOAN LOSSES


1,708,241


1,850,872


1,808,214


3,559,113


3,608,453
NON-INTEREST INCOME:
Service charge on deposits 188,381 165,232 193,448 353,613 379,209
Mortgage Banking 163,606 166,714 235,255 330,320 377,250
Interchange Fees 90,473 86,323 76,195 176,797 148,610
Loan Fees and Charges 41,580 43,094 25,246 84,673 57,786
Gain/(Loss) on Sale of Real Estate/Investments
(4,910
)
7,716

16,712

2,806

83,944
Gain/(Loss) on Investment Trading Accounts (15,720 ) (8,693 ) (104 ) (24,412 ) 39,727
Other 27,036 37,602 32,246 64,637 62,331
TOTAL NON-INTEREST
INCOME

490,446

497,988

578,998

988,434

1,148,857
NON-INTEREST EXPENSE:
Compensation and Employee
Benefits

930,252

925,054

900,242

1,855,306

1,745,109
Occupancy, Property Taxes, and Equipment 200,905 198,992 183,246 399,897 366,360
Technology and Information Processing 135,529 135,565 143,438 271,094 270,835
Federal Deposit Insurance,
Supervisory Fees/Taxes

112,244

110,337

85,285

222,581

173,713
Professional Fees 40,588 62,889 71,433 103,477 138,711
Other 210,996 192,802 249,346 403,798 435,287
TOTAL NON-INTEREST
EXPENSE

1,630,514

1,625,639

1,632,990

3,256,153

3,130,015
INCOME BEFORE INCOME
TAXES

568,173

723,221

754,222

1,291,394

1,627,295
Income Tax Expense 162,820 245,895 226,341 408,715 491,961
NET INCOME 405,353 477,326 527,881 882,679 1,135,334
Dividends Paid to Preferred
Shareholders

0

0

42,545

0

74,190
Accretion of Discount on Preferred Stock 0 0 63,150 0 102,672
Net Income Available to Common Shareholders
$405,353

$477,326

$422,186

$882,679

$958,472
PER COMMON SHARE DATA:
Available Earnings $ 1.13 $ 1.31 $ 1.16 $ 2.44 $ 2.64
Diluted Available Earnings $ 1.13 $ 1.30 $ 1.15 $ 2.42 $ 2.61
Revenue (Net Interest Income and Non-Interest Income)
$7.11

$6.74

$7.05

$13.86

$14.04
Dividends Paid $ 0.15 $ 0.15 $ 0.14 $ 0.30 $ 0.28
Tangible Book Value Period End $ 43.11 $ 41.82 $ 39.23 $ 43.11 $ 39.23
RATIOS:
Net Income to Average Period Assets (Annualized) 0.91 % 1.10 %
1.23
%
1.00
%
1.36
%
Net Income to Average Period Total Stockholders' Equity (Annualized)
10.59
%
12.75
%
13.25
%
11.66
%
14.32
%
Net Interest Margin (Average) for the period 5.07 % 5.00 % 5.06 % 5.00 % 5.16 %
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)
2.56
%
2.59
%
2.46
%
2.58
%
2.37
%
Efficiency Ratio for the Period 63.93 % 66.11 % 63.73 % 65.00 % 61.41 %
Net Loan Charge-Offs for the Period $ 224,526 $ 22,733 $ 230,187 $ 247,259 $ 270,421
to Average Period Net Loans (Annualized) 0.74 % 0.08 % 0.70 % 0.41 % 0.41 %
TDRs (Performing) at Period End $ 3,433,778 $ 3,142,668 $ 1,814,138 $ 3,433,778 $ 1,814,138
to Average Period Net Loans 2.84 % 2.63 % 1.37 % 2.86 % 1.38 %
Non-Performing Assets at Period $ 3,071,596 $ 2,806,704 $ 3,270,674 $ 3,071,596 $ 3,270,674
End to Average Period Total Assets 1.72 % 1.59 % 1.91 % 1.73 % 1.94 %
Allowance for Loan Losses at Period End $ 2,829,188 $ 2,718,214 $ 2,258,188 $ 2,829,188 $ 2,258,188
to Average Period Net Loans 2.34 % 2.28 % 1.71 % 2.35 % 1.71 %
to Non-Performing Assets at Period End 92.11 % 96.85 % 69.04 % 92.11 % 69.04 %
CONSOLIDATED STATEMENTS OF CONDITION
June 30, 2011 June 30, 2010 % Change March 31, 2011 % Change
(Unaudited) (Unaudited) (Unaudited)
ASSETS:
Cash and Cash Equivalents $ 14,127,682 $ 14,650,738 (4 %) $ 9,009,941 57 %
Investment, Trading and Mortgage-Backed Securities
28,872,664

14,783,997

95

40,390,609

(29
)
Net Loans 122,310,968 130,665,499 (6 ) 119,766,770 2
Premises and Equipment, Net 7,673,113 7,861,743 (2 ) 7,754,061 (1 )
Other Real Estate Owned 793,336 649,491 22 1,229,058 (35 )
Other Assets 1,340,554 1,488,184 (10 ) 1,333,401 1
TOTAL ASSETS $ 175,118,317 $ 170,099,652 3 $ 179,483,840 (2 )
LIABILITIES:
Deposits 131,988,769 126,480,783 4 132,987,055 (1 )
Federal Home Loan Bank Advances
23,973,008

25,379,298

(6
)
27,279,702

(12
)
Subordinated debentures/trust preferred securities
3,093,000

3,093,000

0

3,093,000

0
Other Liabilities 854,742 736,459 16 754,614 13
TOTAL LIABILITIES $ 159,909,519 $ 155,689,540 3 $ 164,114,371 (3 )
STOCKHOLDERS' EQUITY:
Common Stock $ 4,285 $ 4,283 0 $ 4,284 0
Capital Surplus 6,258,751 6,244,738 0 6,258,751 0
Retained Earnings 10,668,116 9,111,912 17 10,315,248 3
Unearned Compensation (45,012 ) (57,978 ) 22 (45,012 ) 0
Treasury Stock (1,783,468 ) (1,227,321 ) (45 ) (1,227,321 ) (45 )
Other Comprehensive Income (Loss)
106,126

334,478

(68
)
63,519

67
Total Stockholders' Equity 15,208,798 14,410,112 6 15,369,469 (1 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
$175,118,317

$170,099,652

3
%
$179,483,840

(2
%)

Fritz W. Anderson II, Chairman of the Board announced today that "On July 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 September 26, 2011 to stockholders of record at the close of business on September 9, 2011."

Contact Information

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