FPB Financial Corp. Announces 2013 First Quarter Financial Results and Declares Dividends

HAMMOND, LA--(Marketwired - Apr 23, 2013) -  FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the 2013 first quarter ended March 31, 2013.

Earnings

Net income for the first quarter of 2013 totaled $539,000, an increase of 17.5% from $459,000 in the first quarter of 2012. Net income per fully diluted common share was $1.52 in the 2013 first quarter, up from $1.30 per fully diluted common share earned in the first quarter of 2012. Return on common stockholders' equity (ROE) was 12.2% for the period.

First quarter earnings were positively affected by an increase of $75,000 in non interest income when compared to the first quarter of 2012 and by a $139,000 decrease in provision for loans losses. These items were offset by a $61,000 increase in non-interest expense, primarily from increased expense for occupancy, property taxes and equipment, technology and information processing and other miscellaneous expenses, and $58,000 increase in income tax expense.

In the 2013 first quarter, in excess of $1 million of non-accrual loans were collected/paid off; these non-accrual loan pay-offs resulted in the Company reporting an increase of approximately $110,000 of non-accrual pre-tax interest income in the period ending March 31, 2013. The Company does not expect to match this level of non-accrual interest recognition/collections in the second quarter or in subsequent quarters during 2013.

Asset Quality

Total non-performing assets at March 31, 2013 decreased $1.0 million, or 25.6% to $2.9 million when compared to March 31, 2012. Total non-performing assets on December 31, 2012 were $4.1 million. The Company's allowance for loan losses increased to $3.3 million when compared to $3.0 million at March 31, 2012. Total allowance for loan losses were $3.2 million at December 31, 2012.

Net loan charge-offs for the first quarter totaled $28,000, down from $234,000 in the 2012 first quarter. In the 2012 fourth quarter the company's net loan charge-offs were $67,000.

Performing Troubled Debt Restructured (TDR's) as of March 31 totaled $3.1 million, or a decrease of $93,000 from March 31, 2012. Performing TDR's decreased by $247,000 when compared to December 31, 2012.

Balance Sheet and Capital

Total assets at March 31, 2013 increased to $197.9 million, or 5.2% as compared to $188.1 million on March 31, 2012. Total assets on December 31, 2012 were $197.9 million. The increase in total assets was primarily attributed to an increase of $18.0 million in available-for-sale investment securities, an increase of $2.1 million in held-to-maturity investment securities, and an increase of $1.2 million in net premises and equipment. These increases were offset by a $7.9 million decrease in net loans and a $2.3 million decrease in cash and cash equivalents. Total liabilities increased by 4.8% to $179.8 million primarily due to an increase of $12.5 million in total deposits to $162.0 million from $149.5 million at March 31, 2012 which was offset by a 23.4% decrease in Federal Home Loan Bank advances to $13.8 million at March 31, 2013. Non interest bearing deposits and total non-maturity deposits both increased in the twelve month period ending March 31, 2013.

Common Stockholders' equity increased by a net of $1.5 million, or 9.2% to $18.1 million for the twelve month period ending March 31, 2013, primarily due to an increase of $1.6 million in retained earnings. Tangible common stockholders' equity totaled $18.0 million at March 31, 2013.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of March 31, 2013.

FPB Financial Corp. reported the following for the period ending March 31, 2013, and as compared to March 31, 2012:

• Total Assets increased to $197.9 million, or 5.2% 
  
  
• Non-Interest Income increased to $618,000, or 13.9%
  
  
• Non-Interest Bearing deposits increased to $40.1 million, or 39.2%
  
  
• Non-maturity Deposits increased by $16.4 million, or 16.0%
  
  
• Non-performing Assets decreased by $1.0 million, or 25.6%
  
  
• Dividends paid to common shareholders increased to $64,000, or 14.2%
  
  
• Common Stockholders' equity increased by $1.5 million, or 9.2%
  
  
• Common Book Value per share increased to $51.03, or 8.5%
  
  
• Allowance for Loan Losses increased to $3.3 million, or 10.0%
  
  

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, 2013			March 31, 2012			% Change			Dec. 31, 2012			% Change
		(Unaudited)			(Unaudited)
Tangible Common Stockholders' Equity		$	17,994,379		$	16,308,164		10	%		$	17,517,532		3	%
Total Common Stockholders' Equity			18,072,555			16,549,948		9				17,712,573		2
Net Loans			115,970,100			123,758,131		(6	)			119,757,079		(3	)
Foreclosed Assets			801,495			480,688		67				1,043,322		(23	)
Non-Performing Assets (includes Foreclosed Assets)			2,927,287			3,932,285		(26	)			4,101,905		(29	)
Allowance for Loan Losses			3,306,836			3,036,477		9				3,208,815		3
Total Assets			197,856,444			188,079,694		5				197,854,896		0
Non-Interest Bearing Deposits			40,118,217			28,765,949		39				36,086,737		11
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			119,165,496			102,830,753		16				117,728,693		1
Brokered Deposits (Included in interest- bearing deposits)			6,548,866			6,834,596		(4	)			6,555,092		0
FHLB Advances			13,791,500			18,004,684		(23	)			15,591,803		(12	)

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months Ended
			March 31, 2013				Dec. 31, 2012				% Change			March 31, 2012				% Change
			(Unaudited)											(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	2,018,946			$	1,993,949			1	%		$	2,125,574			(5	)%
	Consumer Loans			236,844				227,645			4				222,352			7
	Commercial Loans			44,087				50,971			(14	)			72,810			(39	)
	Consumer & Commercial Lines of Credit			49,489				49,010			1				45,736			8
	Investment Securities and Deposits			167,584				244,108			(31	)			163,101			3
TOTAL INTEREST AND DIVIDEND INCOME				2,516,950				2,565,683			(2	)			2,629,573			(4	)
INTEREST EXPENSE:
	Deposits			187,387				218,433			(14	)			223,954			(16	)
Federal Home Loan Bank Advances				86,245				113,901			(24	)			145,559			(41	)
Other				26,450				27,108			(2	)			28,784			(8	)
TOTAL INTEREST EXPENSE				300,082				359,442			(17	)			398,297			(25	)
	NET INTEREST INCOME			2,216,868				2,206,241			0				2,231,276			(1	)
Provisions for loan losses				126,000				240,000			(48	)			265,000			(52	)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,090,868				1,966,241			6				1,966,276			6
NON-INTEREST INCOME:
Service charges on deposits				213,645				197,283			8				176,947			21
Mortgage Banking Fees				187,127				196,512			(5	)			186,060			1
Interchange Fees				131,726				120,516			9				101,902			29
Loan Fees and Charges				42,330				59,307			(29	)			51,485			(18	)
Gain/(Loss) on Trading Accounts				1,764				840			110				15,896			(89	)
Gain/(Loss) on Sale of Investments and Foreclosed Assets				(14,627	)			15,626			-				(27,991	)		48
Other				55,598				29,955			86				37,878			47
TOTAL NON-INTEREST INCOME				617,563				620,039			0				542,177			14
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,077,839				1,049,168			3				1,070,651			1
Occupancy, Property Taxes, and Equipment				229,444				219,263			5				208,596			10
Technology and Information Processing				159,249				174,374			(9	)			137,263			16
Regulatory Fees				67,655				76,290			(11	)			81,787			(17	)
Professional Fees				42,225				77,627			(46	)			53,530			(21	)
Foreclosed Assets				23,361				26,186			(11	)			31,013			(25	)
Other				296,607				284,237			4				252,048			18
TOTAL NON-INTEREST EXPENSE				1,896,380				1,907,145			(1	)			1,834,888			3
INCOME BEFORE INCOME TAXES				812,051				679,135			20				673,565			21
Income Tax Expense				272,706				227,504			20				214,441			27
NET INCOME				539,345				451,631			19				459,124			17
PER COMMON SHARE DATA:
Net Earnings			$	1.52			$	1.28			19			$	1.31			16
Diluted Net Earnings			$	1.52			$	1.28			19			$	1.30			17
Dividends Paid			$	0.18			$	0.36			(50	)		$	0.16			13
Revenue (Net Interest Income and Non-Interest Income)			$	8.85			$	8.02			10			$	7.89			12
Book Value Period End			$	51.03			$	50.02			2			$	47.04			8
Tangible Book Value Period End			$	50.81			$	49.47			3			$	46.35			10
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				1.10	%			0.88	%						1.02	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				12.21	%			10.19	%						11.22	%
Net Interest Margin (Average) for the period				4.98	%			4.74	%						5.44	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.62	%			2.52	%						2.88	%
Efficiency Ratio for the Period				66.91	%			67.48	%						66.16	%
Net Loan Charge-Offs/(Recoveries)			$	27,979			$	66,827						$	261,805
	for the Period to Average Period Net Loans (Annualized)			0.10	%			0.22	%						0.84	%
TDRs (Performing) at Period End			$	3,104,363			$	3,351,121						$	3,197,794
	to Average Period Net Loans			2.63	%			2.78	%						2.55	%
Non-Performing Assets at Period			$	2,927,287			$	4,101,905						$	3,932,285
	End to Average Period Total Assets			1.48	%			2.02	%						2.18	%
Allowance for Loan Losses at Period			$	3,306,836			$	3,208,815						$	3,036,477
	End to Average Period Net Loans			2.80	%			2.66	%						2.42	%
	to Non-Performing Assets at Period End			113.00	%			78.23	%						77.22	%

CONSOLIDATED STATEMENTS OF CONDITION
			March 31, 2013				March 31,  2012				% Change			Dec. 31, 2012				% Change
			(Unaudited)				(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest & Non-Interest Earnings Deposits			$	14,221,475			$	16,557,941			(14	)%		$	11,674,524			22	%
Certificates of Deposit				4,235,000				5,986,000			(29	)			4,235,000			0
Securities- Held to Maturity				2,074,811				0			-				1,081,508			92
Securities- Available for Sale				49,377,969				31,392,136			57				48,444,962			2
Trading Securities				191,701				215,069			(11	)			189,937			1
Net Loans				115,970,100				123,758,131			(6	)			119,757,079			(3	)
Accrued Interest Receivable				708,656				580,089			22				796,447			(11	)
Premises and Equipment, Net				8,953,607				7,788,911			15				9,052,566			(1	)
Foreclosed Assets				801,495				480,688			67				1,043,322			(23	)
Other Assets				1,321,630				1,320,729			0				1,579,551			(16	)
	TOTAL ASSETS		$	197,856,444			$	188,079,694			5			$	197,854,896			0
LIABILITIES:
Deposits				162,036,238				149,508,046			8				160,663,155			1
Federal Home Loan Bank Advances				13,791,500				18,004,684			(23	)			15,591,803			(12	)
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				863,151				924,016			(7	)			794,365			7
	TOTAL LIABILITIES		$	179,783,889			$	171,529,746			5			$	180,142,323			0
STOCKHOLDERS' EQUITY:
Common Stock			$	4,437			$	4,433			0			$	4,437			0
Capital Surplus				6,335,706				6,279,173			1				6,335,022			0
Retained Earnings				13,450,044				11,827,431			14				12,974,449			4
Unearned Compensation				(12,340	)			(19,405	)		36				(12,908	)		4
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				78,176				241,784			(68	)			195,041			(60	)
Total Stockholders' Equity				18,072,555				16,549,948			9				17,712,573			2
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	197,856,444			$	188,079,694			5	%		$	197,854,896			0	%

Fritz W. Anderson II, Chairman of the Board announced today that "On April 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 $0.18 per share and will be paid on June 25, 2013 to stockholders of record at the close of business on June 10, 2013."