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

HAMMOND, LA--(Marketwire - Oct 30, 2012) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the third quarter ended September 30, 2012.

Earnings

Net income for the third quarter of 2012 totaled $420,000 a decrease of 20.2% from $526,000 in the 2011 period. Net income per fully diluted common share for the quarter was $1.19 as compared to $1.66 in the 2011 third quarter. Return on common stockholders' equity (ROE) was 9.7% (annualized) for the period.

The decrease in third quarter earnings, when compared to the 2011 period, was primarily due to an increase of $205,000, or 456% in provisions for loan losses. The increased provision expense was due to increases in non-performing assets and in net loan charge-offs.

Asset Quality

Total non-performing assets at September 30, 2012 increased $1.2 million, or 38.7%, to $4.3 million when compared to September 30, 2011, primarily due to an $863,000 increase in foreclosed assets. Total non-performing assets on June 30, 2012 were $4.0 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 September 30, 2011.

Net loan charge-offs for the third quarter totaled $233,000, up 171% from $86,000 in the 2011 third quarter and up 45.6% from $160,000 in the second quarter of 2012.

Performing troubled debt restructured (TDRs) as of September 30, 2012 totaled $3.7 million, or a decrease of $75,000 from September 30, 2011. Performing TDR's totaled $3.1 million on June 30, 2012.

Balance Sheet and Capital

Total Assets at September 30, 2012 increased to $191.6 million, or 12.0% when compared to September 30, 2011. The increase in total assets was primarily attributed to an increase of $19.5 million in available-for-sale investment securities. Total Liabilities increased 12.5% to $174.2 million primarily due to an increase of $18.1 million in total deposits. Total Deposits were $150.4 million on September 30, 2012. Federal Home Loan Bank advances decreased 16.0% in the twelve month period to $20.0 million. Non-interest bearing deposits and Non-maturity deposits increased 37.3% and 21.3% respectively in the twelve month period ending September 30, 2012.

Common Stockholders' Equity increased by a net of $1.3 million, or 8.1% to $17.3 million for the twelve month period ending September 30, 2012, primarily due to an increase of $1.5 million in retained earnings. Tangible Common Stockholders' equity increased to a total of $17.1 million at September 30, 2012.

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

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

• Total Assets increased to $191.6 million, or 12.1%
  
  
• Net Interest Income Increased to $6.5 million, or 5.5%
  
  
• Non-Interest Income increased to $1.9 million, or 23.6%
  
  
• Revenue per share increased to $23.92, or 11.0%
  
  
• Common Dividends Paid increased to $179,000, or 11.8%
  
  
• Non-Interest Bearing deposits increased to $31.3 million, or 37.3%
  
  
• Non-maturity Deposits increased $18.8 million, or 21.2%
  
  
• Tangible Common Stockholders' Equity increased $1.5 million, or 9.6%
  
  
• Tangible Common Book Value increased to $ 48.68, or 9.0%
  
  
• Allowance for Loan Losses increased to $3.0 million, or 7.1%
  
  

Our subsidiary, Florida Parishes Bank, will open a new branch officer in Amite, Louisiana on November 1, 2012. This will be the Company's fourth full service office.

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		Sept 30, 2012			Sept 30, 2011			% Change			June 30, 2012			% Change
		(Unaudited)			(Unaudited)						(Unaudited)
Cash and Cash Equivalents Including Interest & Non-interest earning deposits		$	11,763,606		$	10,314,319		14	%		$	8,637,795		36	%
Net Loans			121,581,212			121,970,199		0				124,618,331		(2	)
Foreclosed Assets			1,056,127			193,336		446				868,231		22
Non-Performing Assets (Includes Foreclosed Assets)			4,322,086			3,082,869		40				3,997,023		8
Allowance for Loan Losses			3,035,642			2,789,714		9				3,018,703		1
Total Assets			191,593,859			170,985,880		12				188,202,135		2
Non-Interest Bearing Deposits			31,328,579			22,815,069		37				28,822,902		9
Interest-Bearing Deposits			119,083,001			104,465,550		14				117,659,092		1
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			107,330,746			88,472,290		21				102,034,162		5
Brokered Deposits (Included in interest- bearing deposits)			6,549,958			7,083,907		(8	)			6,809,798		(4	)
FHLB Advances			19,990,524			23,768,479		(16	)			20,847,650		(4	)
Subordinated Debentures/Trust Preferred Securities			3,093,000			3,093,000		0				3,093,000		0
Tangible Common Stockholders' Equity			17,135,803			15,644,775		10				16,773,884		2
Total Common Stockholders' Equity			17,332,526			15,963,597		9				16,942,288		2

CONSOLIDATED STATEMENTS OF EARNINGS
		For the Three Months									For the Nine Months
		Ended									Ended
		Sept 30, 2012			June 30, 2012			Sept 30, 2011			Sept 30, 2012			Sept 30, 2011
		(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans	$	2,029,301		$	2,057,109		$	2,031,765		$	6,211,984		$	6,055,288
	Consumer Loans		233,079			219,407			241,298			674,836			707,937
	Commercial Loans		54,302			59,619			68,250			186,731			199,624
	Consumer & Commercial Lines of Credit		49,500			47,112			43,638			142,347			126,257
	Investment Securities and Deposits		158,817			115,036			145,397			436,956			373,546
TOTAL INTEREST AND DIVIDEND INCOME			2,524,999			2,498,283			2,530,348			7,652,854			7,462,652
INTEREST EXPENSE:
	Deposits		232,213			240,670			220,881			696,836			768,982
Federal Home Loan Bank Advances			112,893			114,873			146,402			373,325			456,341
Other			28,152			28,248			26,452			85,184			79,775
TOTAL INTEREST EXPENSE			373,258			383,791			393,735			1,155,345			1,305,098
	NET INTEREST INCOME		2,151,741			2,114,492			2,136,613			6,497,509			6,157,554
Provisions for loan losses			250,000			142,000			45,000			657,000			506,828
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES			1,901,741			1,972,492			2,091,613			5,840,509			5,650,726
NON-INTEREST INCOME:
Mortgage Banking Fees			193,839			177,774			223,089			557,673			553,409
Service charge on deposits			182,657			178,249			223,392			537,853			577,005
Interchange Fees			115,659			107,070			98,959			324,632			275,756
Loan Fees and Charges			49,413			44,520			46,558			145,417			131,232
Gain/(Loss) on Sale of Investments and Foreclosed Assets			89,760			216,325			7,070			278,094			9,876
Gain/(Loss) on Trading Accounts			(3,092	)		(22,330	)		(62,850	)		(9,525	)		(87,262	)
Other			22,872			22,433			26,573			82,718			91,208
TOTAL NON-INTEREST INCOME			651,108			724,041			562,791			1,916,862			1,551,224
NON-INTEREST EXPENSE:
Compensation and Employee Benefits			1,092,555			1,093,820			1,010,805			3,257,026			2,866,111
Occupancy, Property Taxes, and Equipment			206,792			209,432			212,374			624,820			612,271
Technology and Information Processing			137,384			150,121			147,138			424,768			418,232
Regulatory Fees			87,492			82,358			101,795			251,636			324,376
Professional Fees			90,828			80,987			65,393			225,345			168,870
Foreclosed Assets			21,361			15,437			2,124			67,812			22,464
Other			279,343			269,352			233,091			800,279			616,548
TOTAL NON-INTEREST EXPENSE			1,915,755			1,901,507			1,772,720			5,651,686			5,028,872
INCOME BEFORE INCOME TAXES			637,094			795,026			881,684			2,105,685			2,173,078
Income Tax Expense			216,612			269,497			295,646			700,551			704,360
NET INCOME			420,482			525,529			586,038			1,405,134			1,468,718
PER COMMON SHARE DATA:
Net Earnings		$	1.19		$	1.49		$	1.67		$	3.99		$	4.11
Diluted Net Earnings		$	1.19		$	1.49		$	1.66		$	3.98		$	4.09
Revenue (Net Interest Income and Non-Interest Income)		$	7.96		$	8.07		$	7.71		$	23.92		$	21.55
Dividends Paid		$	0.18		$	0.17		$	0.15		$	0.51		$	0.45
Book Value Period End		$	49.24		$	48.16		$	45.55		$	49.24		$	45.55
Tangible Book Value Period End		$	48.68		$	47.68		$	44.65		$	48.68		$	44.65
RATIOS:
ROA (Annualized Net Income to Average Period Assets)			0.89	%		1.12	%		1.35	%		1.01	%		1.12	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)			9.71	%		12.58	%		14.94	%		11.15	%		12.78	%
Net Interest Margin (Average) for the period			4.96	%		4.92	%		5.36	%		5.10	%		5.12	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)			2.66	%		2.51	%		2.78	%		2.68	%		2.64	%
Efficiency Ratio for the Period			68.35	%		66.99	%		65.67	%		67.17	%		65.23	%
Net Loan Charge-Offs (Recoveries) for the Period		$	233,062		$	159,774		$	85,881		$	654,641		$	349,467
to Average Period Net Loans (Annualized)			0.75	%		0.52	%		0.28	%		0.70	%		0.39	%
TDRs (Performing) at Period End		$	3,747,371		$	3,124,881		$	3,822,451		$	3,747,371		$	3,822,451
	to Average Period Net Loans		3.05	%		2.51	%		3.11	%		3.02	%		3.16	%
Non-Performing Assets at Period		$	4,322,086		$	3,997,023		$	3,082,869		$	4,322,086		$	3,082,869
	End to Average Period Total Assets		2.29	%		2.12	%		1.78	%		2.32	%		1.75	%
Allowance for Loan Losses at Period End		$	3,035,642		$	3,018,703		$	2,789,714		$	3,035,642		$	2,789,714
	to Average Period Net Loans		2.47	%		2.43	%		2.27	%		2.44	%		2.30	%
	to Non-Performing Assets at Period End		70.24	%		75.52	%		96.02	%		70.24	%		96.02	%

CONSOLIDATED STATEMENTS OF CONDITION
			Sept 30, 2012				Sept 30, 2011				% Change			June 30, 2012				% Change
			(Unaudited)				(Unaudited)							(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	11,763,606			$	10,314,319			14	%		$	8,637,795			36	%
Certificates of Deposit				1,994,000				1,992,000			0				2,986,000			(33	)
Securities - Available for Sale				44,471,396				25,027,946			78				41,175,614			8
Trading Securities				189,098				2,265,249			(92	)			192,189			(2	)
Net Loans				121,581,212				121,970,199			0				124,618,331			(2	)
Accrued Interest Receivable				574,456				544,304			6				539,249			7
Premises and Equipment, Net				8,447,000				7,603,649			11				7,789,866			8
Foreclosed Assets				1,056,127				193,336			446				868,231			22
Other Assets				1,516,964				1,074,878			41				1,394,860			9
	TOTAL ASSETS		$	191,593,859			$	170,985,880			12			$	188,202,135			2
LIABILITIES:
Deposits				150,411,580				127,359,107			18				146,481,994			3
Federal Home Loan Bank Advances				19,990,524				23,768,479			(16	)			20,847,650			(4	)
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				766,229				801,697			(4	)			837,203			(8	)
	TOTAL LIABILITIES		$	174,261,333			$	155,022,283			12			$	171,259,847			2
STOCKHOLDERS' EQUITY:
Common Stock			$	4,433			$	4,289			3			$	4,433			0
Capital Surplus				6,283,971				6,264,367			0				6,279,173			0
Retained Earnings				12,650,272				11,201,594			13				12,293,151			3
Unearned Compensation				(19,405	)			(42,007	)		54				(19,405	)		0
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				196,723				318,822			(38	)			168,404			17
Total Stockholders' Equity				17,332,526				15,963,597			9				16,942,288			2
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	191,593,859			$	170,985,880			12	%		$	188,202,135			2	%

Fritz W. Anderson II, Chairman of the Board announced today that "On October 11, 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 $0.36 per share. This dividend rate is composed of a regular quarterly dividend rate of $0.18 per share and a special year-end dividend of $0.18 per share and will be paid on December 26, 2012 to stockholders of record at the close of business on December 10 2012."