FPB Financial Corp. Announces 2012 Second Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwire - Jul 24, 2012) -  FPB Financial Corp. (OTCQB: FPBF) (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, announced financial results for the second quarter ended June 30, 2012.

Earnings

Net income for the second quarter of 2012 totaled $526,000 an increase of 29.9% from $405,000 in the 2011 period. Net income per fully diluted common share for the quarter was $1.49 as compared to $1.13 in the 2011 second quarter. Return on common stockholders' equity (ROE) increased to 12.6% for the period.

Second quarter earnings, when compared to the 2011 period, were positively affected by an increase of $264,000 in net-Interest Income; a $234,000 increase in non-Interest Income, primarily due to a $221,000 gain on sale of investments and foreclosed assets; and from a decrease in Provision for Loan Losses of $210,000. Earnings were adversely affected by a $271,000, or 16.6% increase in non-interest expenses, primarily due to increased compensation and employee benefits to existing officers and staff and increased compensation expense associated with staffing our new branch in Amite, LA which opened November 1, 2011. 

Asset Quality

Total non-performing assets at June 30, 2012 increased $925,000, or 29.0%, to $4.0 million when compared to June 30, 2011. Total non-performing assets on March 31, 2012 were $3.9 million. The Company's allowance for loan losses increased to $3.0 million, or 7.1% when compared to the Company's allowance of $2.8 million on June 30, 2011.

Net loan charge-offs for the second quarter totaled $160,000, down 28.9% from $225,000 in the 2011 second quarter and down 38.9% from $262,000 in the first quarter of 2012.

Performing troubled debt restructured (TDR's) as of June 30 totaled $3.1 million, or a decrease of $309,000 from June 30, 2011. Performing TDR's totaled $3.2 million on March 31, 2012.

Balance Sheet and Capital

Total Assets at June 30, 2012 increased to $188.2 million, or 7.5% when compared to June, 30, 2011. The increase in total assets was primarily attributed to an increase of $14.6 million in available-for-sale investment securities. Total Liabilities increased 7.1% to $171.3 million primarily due to an increase of $14.5 million in total deposits to $146.5 million on June 30, 2012. Federal Home Loan Bank advances decreased 13.3% in the twelve month period to $20.8 million. Both Non-interest bearing deposits and Non-maturity deposits increased in the twelve month period ending June 30, 2012.

Common Stockholders' Equity increased by a net of $1.7 million, or 11.2% to $16.9 million for the twelve month period ending June 30, 2012, primarily due to an increase of $1.6 million in retained earnings. Tangible Common Stockholders' equity increased to a total of $16.8 million at June 30, 2012.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of June 30, 2012.

FPB Financial Corp. reported the following for the period ending June 30, 2012, and as compared to June 30, 2011:

• Total Assets increased to $188.2 million, or 7.5%
  
  
• Net Income increased $102,000, or 11.6%
  
  
• Net Interest Margin increased to 5.17%
  
  
• Non-Interest Bearing deposits increased to $28.8 million, or 20.5%
  
  
• Non-maturity Deposits increased $11.1 million, or 12.2%
  
  
• Tangible Common Stockholders' Equity increased $1.7 million, or 11.1%
  
  
• Tangible Common Book Value increased to $47.68, or 10.5%
  
  
• Allowance for Loan Losses increased to $3.0 million, or 7.1%

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, 2012			June 30, 2011			% Change			March 31, 2012			% Change
		(Unaudited)			(Unaudited)						(Unaudited)
Cash and Cash Equivalents Including Interest & Non-interest earning deposits		$	8,637,795		$	13,127,682		(34	%)		$	18,557,941		(53	%)
Net Loans			124,618,331			122,310,968		2				123,758,131		1
Foreclosed Assets			868,231			193,336		350				480,688		81
Non-Performing Assets (Includes Foreclosed Assets)			3,997,023			3,071,596		30				3,932,285		2
Allowance for Loan Losses			3,018,703			2,829,188		7				3,036,477		(1	)
Total Assets			188,202,135			175,118,317		7				188,079,694		0
Non-Interest Bearing Deposits			28,822,902			23,864,037		21				28,765,949		0
Interest-Bearing Deposits			117,659,092			108,124,732		9				120,742,097		(3	)
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			102,034,162			90,861,158		12				102,830,753		(1	)
Brokered Deposits (Included in interest- bearing deposits)			6,809,798			7,128,026		(4	)			6,834,596		0
FHLB Advances			20,847,650			23,973,008		(13	)			18,004,684		16
Subordinated Debentures/Trust Preferred Securities			3,093,000			3,093,000		0				3,093,000		0
Tangible Common Stockholders' Equity			16,773,884			15,102,672		11				16,308,164		3
Total Common Stockholders' Equity			16,942,288			15,208,798		11				16,549,948		2

CONSOLIDATED STATEMENTS OF EARNINGS
		For the Three Months												For the Six Months
		Ended												Ended
		June 30, 2012				March 31, 2012				June 30, 2011				June 30, 2012				June 30, 2011
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans	$	2,057,109			$	2,125,574			$	2,042,430			$	4,182,683			$	4,023,523
	Consumer Loans		219,407				222,352				237,244				441,759				466,639
	Commercial Loans		59,619				72,810				66,333				132,429				131,374
	Consumer & Commercial Lines of Credit		47,112				45,736				42,570				92,847				82,619
Investment Securities and Deposits			115,036				163,101				101,134				278,138				228,149
TOTAL INTEREST AND DIVIDEND INCOME			2,498,283				2,629,573				2,489,711				5,127,856				4,932,304
INTEREST EXPENSE:
	Deposits		240,670				223,954				250,193				464,624				548,101
Federal Home Loan Bank Advances			114,873				145,559				152,507				260,432				309,939
Other			28,248				28,784				26,942				57,031				53,323
TOTAL INTEREST EXPENSE			383,791				398,297				429,642				782,087				911,363
NET INTEREST INCOME			2,114,492				2,231,276				2,060,069				4,345,769				4,020,941
Provisions for loan losses			142,000				265,000				351,828				407,000				461,828
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			1,972,492				1,966,276				1,708,241				3,938,769				3,559,113
NON-INTEREST INCOME:
Service charge on deposits			178,249				176,947				188,381				355,196				353,613
Mortgage Banking Fees			177,774				186,060				163,606				363,834				330,320
Interchange Fees			107,070				101,902				90,473				208,973				176,797
Loan Fees and Charges			44,520				51,485				41,580				96,004				84,673
Gain/(Loss) on Sale of Investments and Foreclosed Assets			216,325				(27,991	)			(4,910	)			188,334				2,806
Gain/(Loss) on Trading Accounts			(22,330	)			15,896				(15,720	)			(6,434	)			(24,412	)
Other			22,433				37,878				27,036				59,847				64,637
TOTAL NON-INTEREST INCOME			724,041				542,177				490,446				1,265,754				988,434
NON-INTEREST EXPENSE:
Compensation and Employee Benefits			1,093,820				1,070,651				930,252				2,164,471				1,855,306
Occupancy, Property Taxes, and Equipment			209,432				208,596				200,905				418,028				399,897
Technology and Information Processing			150,121				137,263				135,529				287,384				271,094
Regulatory Fees			82,358				81,787				112,244				164,145				222,581
Professional Fees			80,987				53,530				40,588				135,517				103,477
Foreclosed Assets			15,437				31,013				10,545				46,450				20,340
Other			269,352				252,048				200,451				519,936				383,458
TOTAL NON-INTEREST EXPENSE			1,901,507				1,834,888				1,630,514				3,735,931				3,256,153
INCOME BEFORE INCOME TAXES			795,026				673,565				568,173				1,468,592				1,291,394
Income Tax Expense			269,497				214,441				162,820				483,939				408,715
NET INCOME			525,529				459,124				405,353				984,653				882,679
PER COMMON SHARE DATA:
Net Earnings		$	1.49			$	1.31			$	1.13			$	2.80			$	2.44
Diluted Net Earnings		$	1.49			$	1.30			$	1.13			$	2.79			$	2.42
Revenue (Net Interest Income and Non-Interest Income)		$	8.07			$	7.89			$	7.11			$	15.96			$	13.86
Dividends Paid		$	0.17			$	0.16			$	0.15			$	0.33			$	0.30
Book Value Period End		$	48.16			$	47.04			$	43.46			$	48.16			$	43.46
Tangible Book Value Period End		$	47.68			$	46.35			$	43.16			$	47.68			$	43.16
RATIOS:
ROA (Annualized Net Income to Average Period Assets)			1.12	%			1.02	%			0.91	%			1.07	%			1.00	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)			12.58	%			11.22	%			10.59	%			11.91	%			11.66	%
Net Interest Margin (Average) for the period			4.92	%			5.44	%			5.07	%			5.17	%			5.00	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)			2.51	%			2.88	%			2.56	%			2.69	%			2.58	%
Net Loan Charge-Offs (Recoveries) for the Period to Average Period Net Loans (Annualized)		$	159,774			$	261,805			$	224,526			$	421,579			$	247,259
			0.52	%			0.84	%			0.74	%			0.68	%			0.41	%
TDRs (Performing) at Period End to Average Period Net Loans		$	3,124,881			$	3,197,794			$	3,433,778			$	3,124,881			$	3,433,778
			2.51	%			2.55	%			2.84	%			2.50	%			2.86	%
Non-Performing Assets at Period End to Average Period Total Assets		$	3,997,023			$	3,932,285			$	3,071.596			$	3,997,023			$	3,071,596
			2.12	%			2.18	%			1.72	%			2.16	%			1.73	%
Allowance for Loan Losses at Period End to Average Period Net Loans to Non-Performing Assets at Period End		$	3,018,703			$	3,036,477			$	2,829,188			$	3,018,703			$	2,829,188
			2.43	%			2.42	%			2.34	%			2.42	%			2.35	%
			75.52	%			77.22	%			92.11	%			75.52	%			92.11	%

CONSOLIDATED STATEMENTS OF CONDITION
			June 30, 2012				June 30, 2011				% Change			March 31, 2012				% Change
			(Unaudited)				(Unaudited)							(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	8,637,795			$	13,127,682			(34	%)		$	18,557,941			(53	%)
Certificates of Deposit				2,986,000				1,000,000			199				3,986,000			(25	)
Securities - Available for Sale				41,175,614				26,561,690			55				31,392,136			31
Trading Securities				192,189				2,310,974			(92	)			215,069			(11	)
Net Loans				124,618,331				122,310,968			2				123,758,131			1
Accrued Interest Receivable				539,249				532,223			1				580,089			(7	)
Premises and Equipment, Net				7,710,379				7,673,113			0				7,788,911			(1	)
Foreclosed Assets				868,231				193,336			350				480,688			81
Other Assets				1,474,347				1,408,331			5				1,320,729			12
TOTAL ASSETS			$	188,202,135			$	175,118,317			7			$	188,079,694			0
LIABILITIES:
Deposits				146,481,994				131,988,769			11				149,508,046			(2	)
Federal Home Loan Bank Advances				20,847,650				23,973,008			(13	)			18,004,684			16
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				837,203				854,742			(2	)			924,016			(9	)
	TOTAL LIABILITIES		$	171,259,847			$	159,909,519			7			$	171,529,746			0
STOCKHOLDERS' EQUITY:
Common Stock			$	4,433			$	4,285			3			$	4,433			0
Capital Surplus				6,279,173				6,258,751			0				6,279,173			0
Retained Earnings				12,293,151				10,668,116			15				11,827,431			4
Unearned Compensation				(19,405	)			(45,012	)		57				(19,405	)		0
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				168,404				106,126			59				241,784			(30	)
Total Stockholders' Equity				16,942,288				15,208,798			11				16,549,948			2
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	188,202,135			$	175,118,317			7	%		$	188,079,694			0	%

Fritz W. Anderson II, Chairman of the Board announced today that "On July 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 $0.18 per share and will be paid on September 25, 2012 to stockholders of record at the close of business on September 10, 2012."