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

HAMMOND, LA--(Marketwired - Jan 27, 2014) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended December 31, 2013.

Earnings

Net income in the 2013 fourth quarter increased to $468,000 ($0.39 per fully diluted common share) as compared to the 2012 fourth quarter net income of $452,000 ($0.43 per fully diluted common share. The 2012 results have been adjusted for a 3-for-1 stock split of our common shares completed on September 27, 2013). Earnings per share decreased 9.3% in the fourth quarter primarily due to our completion of the sale of 129,075 shares of our common stock on October 11, 2013 in a private placement.

Net income for the year ended 2013 totaled $2.0 million ($1.81 per fully diluted common share) up 7.1% from the year ended 2012 net income of $1.9 million ($1.75 per fully diluted common share). 2013 earnings per share increase by 3.4%.

Items contributing to the Company's 2013 fourth quarter earnings when compared to the 2012 period primarily were a reduction in provisions for loan losses of $215,000, or 89.6%, and a reduction in income tax expense of $47,000 or 20.6%; service charges on deposits and interchange fees increased by 20.0% and 27.6% respectively; mortgage banking fees declined by 33.1%. Total non-interest expense increased $272,000, or 14.3%, primarily due to $176,000, or 16.8%, increase in compensation and employee benefits.

FPB Financial Corp. reported the following for the year ended December 31, 2013 and as compared to the year ended December 31, 2012:

• Net Income increased 7.1% to $2.0 million
• Diluted Net Income per share increased 3.4% to $1.81
• Net Interest Income after provision for loan losses increased 9.5% to $8.6 million
• Net Loan Charge-Offs decreased by $311,000, or 43.1%
• Dividends paid to common shareholders increased 1.5% to $312,000

Other items and per share data of note as of December 31, 2013, compared to December 31, 2012

• Non-performing Assets decreased by $2.3 million, or 57.2%
• Total Assets increased 4.1% to $206.0 million
• Non-Interest Bearing Deposits increased 1.9% to $36.8 million
• Non-Maturity Deposits increased 4.0% to $122.4 million
• Book Value per share increased 2.1% to $17.02

Asset Quality

Total Non-performing assets at December 31, 2013 decreased by 57.2% to $1.8 million as compared to December 31, 2012. Non-performing assets at September 30, 2013 were $1.9 million. The Company's allowance for loan losses decreased by 6.4% to $3.0 million at December 31, 2013 while increasing to 171.3% of total non-performing assets. Total allowance for loan losses was $3.2 million at September 30, 2013.

Net loan charge-offs for the fourth quarter totaled $207,000, up 209.9% from $67,000 in the 2012 fourth quarter. Net loan charge-offs were $84,000 in the 2013 third quarter. For the twelve months ended December 31, 2013 net loan charge-offs declined by $311,000, or 43.1%, to $411,000.

Performing Troubled Debt Restructured (TDR's) as of December 31, 2013 totaled $2.6 million, or a decrease of $729,000 from December 31, 2012. Performing TDR's on September 30, 2013 totaled $2.4 million.

Balance Sheet and Capital

Total assets at December 31, 2013 increased 4.1% to $ 206.0 million as compared to $197.9 at December 31, 2012. The increase in total assets was primarily attributed to an increase of $12.7 million in available-for-sale investment securities, the purchase of $4.0 million of Bank Owned Life Insurance (BOLI) and an increase of $3.5 million in held-to-maturity investment securities. These increases were offset by a $3.8 million decrease in net loans, a $4.3 million decrease in cash and cash equivalents and a $468,000 decrease in foreclosed assets. Total liabilities increased by 3.0% to $185.6 million primarily due to an increase of $3.8 million, or 24.4% in Federal Home Loan Bank advances to $19.4 million.

Common stockholders' equity increased by a net of $2.7 million, or 15.3%, to $20.4 million for the year ended December 31, 2013, primarily due to the October 11, 2013 sale of 129,075 shares of our common stock at a price of $16.00 per share in a private placement, for total net sales proceeds of $2.0 million. Retained earnings increased by $1.7 million to $14.7 million for the 2013 period. Other comprehensive income decreased by $1.0 million at December 31, 2013 when compared to December 31, 2012. Tangible common stockholders' equity increased to $20.4 million for the period. Book value per share increased to $17.02 as total common shares of 1,200,762 were outstanding at December 31, 2013.

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

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,  2013		Dec. 31,  2012	%  Change			Sept. 30,  2013	%  Change
	(Unaudited)						(Unaudited)
Total Common Stockholders' Equity	20,430,683		17,712,572	15			18,146,908	13
Net Loans	115,983,445		119,757,079	(3	)		113,165,148	2
Foreclosed Assets	575,267		1,043,322	(45	)		361,067	59
Non-Performing Assets (Includes Foreclosed Assets)	1,753,875		4,101,905	(57	)		1,928,701	(9	)
Allowance for Loan Losses	3,003,948		3,208,815	(6	)		3,186,015	(6	)
Total Assets	206,015,687		197,854,896	4			202,384,931	2
Non-Interest Bearing Deposits	36,775,928		36,086,737	2			36,033,709	2
Non-Maturity Deposits (Includes interest and non-interest bearing deposits)	122,406,800		117,728,693	4			121,619,702	1
Brokered Deposits (Included in interest-bearing deposits)	2,453,461		6,555,092	(63	)		2,459,461	0
FHLB Advances	19,391,500		15,591,803	24			17,716,500	9

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months									For the Year
			Ended									Ended
			Dec. 31, 2013			Sept. 30, 2013			Dec. 31, 2012			Dec. 31, 2013			Dec. 31, 2012
			(Unaudited)			(Unaudited)						(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	1,835,241		$	1,856,595		$	1,993,949		$	7,560,752		$	8,205,934
	Consumer Loans			249,176			249,210			227,645			975,342			902,482
	Consumer & Commercial Lines of Credit			58,812			54,931			49,010			213,203			191,358
	Commercial Loans			56,905			53,195			50,971			206,204			237,702
	Investment Securities and Deposits			293,947			229,430			244,108			886,115			681,064
TOTAL INTEREST AND DIVIDEND INCOME				2,494,081			2,443,361			2,565,683			9,841,616			10,218,540
INTEREST EXPENSE:
	Deposits			151,204			151,947			218,433			665,601			915,270
Federal Home Loan Bank Advances				76,594			75,461			113,901			313,128			487,226
Other				26,193			26,691			27,108			106,087			112,292
TOTAL INTEREST EXPENSE				253,991			254,099			359,442			1,084,816			1,514,788
	NET INTEREST INCOME			2,240,090			2,189,262			2,206,241			8,756,800			8,703,752
Provisions for loan losses				25,000			0			240,000			206,000			897,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,215,090			2,189,262			1,966,241			8,550,800			7,806,752
NON-INTEREST INCOME:
Service charge on deposits				236,641			235,077			197,283			906,468			735,137
Interchange Fees				153,725			143,591			120,516			570,297			445,148
Mortgage Banking Fees				131,502			106,198			196,512			628,752			754,185
Loan Fees and Charges				44,216			32,057			59,307			159,508			204,725
Gain on Bank Owned Life Insurance				11,118			0			0			11,118			0
Gain/(Loss) on Sale of Investments and Foreclosed Assets				5,723			(88,008	)		15,626			(79,852	)		229,443
Gain/(Loss) on Trading Accounts				7,454			648			840			24,523			(8,686	)
Other				22,761			13,687			29,955			105,885			174,450
TOTAL NON-INTEREST INCOME				613,140			443,178			620,039			2,326,699			2,534,402
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,225,106			1,082,659			1,049,168			4,478,346			4,306,195
Occupancy, Property Taxes, and Equipment				229,245			226,150			219,263			912,500			844,084
Technology and Information Processing				248,308			203,584			174,374			770,410			599,143
Professional Fees				69,604			92,107			77,627			278,567			302,972
Regulatory Fees				46,700			48,320			76,290			205,893			327,912
Foreclosed Assets				35,334			8,440			26,186			112,284			93,998
Other				325,058			257,740			284,237			1,194,999			1,082,024
TOTAL NON-INTEREST EXPENSE				2,179,355			1,919,000			1,907,145			7,952,999			7,556,328
INCOME BEFORE INCOME TAXES				648,875			713,440			679,135			2,924,500			2,784,826
Income Tax Expense				180,749			233,446			227,504			935,278			928,042
NET INCOME				468,126			479,994			451,631			1,989,222			1,856,784
PER COMMON SHARE DATA (ADJUSTED FOR 3 FOR 1 STOCK SPLIT):
Net Earnings			$	0.40		$	0.45		$	0.43		$	1.82		$	1.76
Diluted Net Earnings			$	0.39		$	0.45		$	0.43		$	1.81		$	1.75
Revenue (Net Interest Income and Non-Interest Income)			$	2.41		$	2.47		$	2.67		$	10.14		$	10.64
Dividends Paid			$	0.10		$	0.06		$	0.12		$	0.28		$	0.29
Book Value Period End			$	17.02		$	17.02		$	16.67		$	17.02		$	16.67
Book value adjusted for other comprehensive income at period end			$	17.72		$	17.71		$	16.49		$	17.72		$	16.49
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				0.91	%		0.95	%		0.88	%		0.99	%		0.98	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				9.24	%		10.63	%		10.19	%		10.73	%		10.91	%
Net Interest Margin (Average) for the period				4.80	%		4.77	%		4.74	%		4.80	%		5.00	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				3.03	%		2.92	%		2.52	%		2.80	%		2.64	%
Efficiency Ratio for the Period				76.38	%		72.90	%		67.48	%		71.76	%		67.24	%
Net Loan Charge-Offs (Recoveries) for the			$	207,067		$	83,507		$	66,827		$	410,867		$	721,468
Period to Average Period Net Loans (Annualized)				0.72	%		0.29	%		0.22	%		0.36	%		0.59	%
TDRs (Performing) at Period End			$	2,621,929		$	2,390,264		$	3,351,121		$	2,621,929		$	3,351,121
	to Average Period Net Loans			2.29	%		2.11	%		2.78	%		2.28	%		2.72	%
Non-Performing Assets at Period			$	1,753,875		$	1,928,701		$	4,101,905		$	1,753,875		$	4,101,905
	End to Average Period Total Assets			0.86	%		0.96	%		2.02	%		0.87	%		2.15	%
Allowance for Loan Losses at Period End			$	3,003,948		$	3,186,015		$	3,208,815		$	3,003,948		$	3,208,815
	to Average Period Net Loans			2.62	%		2.81	%		2.66	%		2.61	%		2.60	%
	to Non-Performing Assets at Period End			171.28	%		165.19	%		78.23	%		171.28	%		78.23	%

CONSOLIDATED STATEMENTS OF CONDITION
		Dec. 31,  2013			Dec. 31,  2012			%  Change		Sept. 30,  2013			%  Change
		(Unaudited								(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits		$	7,385,835		$	11,674,524		(37	)	$	9,737,748		(24	)
Certificates of Deposit			747,000			4,235,000		(82	)		1,994,000		(63	)
Securities - Held to Maturity			4,556,671			1,081,508		321			4,563,195		0
Securities - Available for Sale			61,120,450			48,444,962		26			59,450,958		3
Trading Securities			193,679			189,937		2			186,226		4
Net Loans			115,983,445			119,757,079		(3	)		113,165,148		2
Accrued Interest Receivable			878,520			796,447		10			762,599		15
Bank Owned Life Insurance			4,011,118			0		0			0		0
Premises and Equipment, Net			9,068,013			9,052,566		0			9,111,881		0
Foreclosed Assets			575,267			1,043,322		(45	)		361,067		59
Other Assets			1,495,689			1,579,551		(5	)		3,052,109		(51	)
	TOTAL ASSETS	$	206,015,687		$	197,854,896		4		$	202,384,931		2
LIABILITIES:
Deposits			162,384,981			160,663,155		1			160,592,502		1
Federal Home Loan Bank Advances			19,391,500			15,591,803		24			17,716,500		9
Subordinated debentures/trust preferred securities			3,093,000			3,093,000		0			3,093,000		0
Other Liabilities			715,523			794,366		(10	)		2,836,021		(75	)
	TOTAL LIABILITIES	$	185,585,004		$	180,142,324		3		$	184,238,023		1
STOCKHOLDERS' EQUITY:
Common Stock		$	13,127		$	4,437		196		$	4,448		195
Capital Surplus			8,404,060			6,335,022		33			6,364,018		32
Retained Earnings			14,652,133			12,974,449		13			14,304,084		2
Unearned Compensation			(7,456	)		(12,909	)	42			(12,339	)	40
Treasury Stock			(1,783,468	)		(1,783,468	)	0			(1,783,468	)	0
Other Comprehensive Income (Loss)			(847,713	)		195,041		-			(729,835	)	(16	)
Total Stockholders' Equity			20,430,683			17,712,572		15			18,146,908		13
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	206,015,687		$	197,854,896		4	%	$	202,384,931		2	%

Fritz W. Anderson II, Chairman of the Board announced today that "On January 9, 2014, the Board of Directors of FPB Financial Corp. declared a cash dividend of $0.07 per share on the common stock of the company. The dividend will be paid on March 25, 2014 to stockholders of record at the close of business on March 10, 2014."