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

HAMMOND, LA--(Marketwired - Oct 31, 2013) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended September 30, 2013.

FPB Financial Corp. reported the following for the nine months ended September 30, 2013, and as compared to the nine months ended September 30, 2012:

• Net Income increased to $1.5 million or 8.3%
  
  
• Diluted Net Income per share increased to $0.45 or 12.5%
  
  
• Net Interest Income after provision for loan losses increased to $6.3 million or 8.5%
  
  
• Net Loan Charge-Offs decreased to $204,000 or 68.9% 
  
  
• Dividend paid to common shareholders increased to $191,000 or 6.7%
  
  

Other items and per share data of note as of September 30, 2013, compared to September 30, 2012:

• Non-performing Assets decreased to $1.9 million or 55.4%
  
  
• Book Value per share increased to $17.02 or 4.9%
  
  
• Total Assets increased to $202.4 million or 5.6%
  
  
• Non-Interest Bearing Deposits increased to $36.0 million or 15.0%
  
  
• Non-Maturity Deposits increased to $121.6 million or 13.3%
  
  
• Allowance for Loan Losses increased to $3.2 million or 5.0%
  
  

Earnings

Net income for the third quarter of 2013 totaled $480,000, an increase of 14.2% from $420,000 in the third quarter of 2012. Net income per fully diluted common share was $0.45 up from $0.40 per fully diluted common share earned in the third quarter of 2012. Return on common stockholders' equity (ROE) increased to 10.6% for the period.

Third quarter earnings when compared to the third quarter of 2012 were positively affected by a $250,000 decrease in provision for loan losses. This was offset by a $208,000 decrease in non-interest income due primarily to a loss on sale of investment securities and foreclosed assets and a decline of $88,000 in mortgage banking revenue. Income tax expense increased to $233,000 in the 2013 period.

Asset Quality

Total non-performing assets at September 30, 2013 decreased $2.4 million, or 55.4% to $1.9 million when compared to September 30, 2012. Total non-performing assets at June 30, 2013 were $1.9 million. The Company's allowance for loan losses increased by $150,000 to $3.2 million compared to September 30, 2012. Total allowance for loan losses was $3.3 million at June 30, 2013.

Net loan charge-offs for the third quarter totaled $84,000, down from $233,000 in the 2012 third quarter. In the 2013 second quarter the Company's net loan charge-offs were $92,000.

Performing Troubled Debt Restructured (TDR's) as of September 30, 2013 totaled $2.4 million, or a decrease of 36.2% from September 30, 2012. Performing TDR's decreased by $2,000 when compared to June 30, 2013.

Balance Sheet and Capital

Total assets at September 30, 2013 increased to $202.4 million, or 5.6% as compared to $191.6 million at September 30, 2012. The increase in total assets was primarily attributed to an increase of $15.0 million in available-for-sale investment securities, an increase of $4.6 million in held-to-maturity investment securities, and an increase of $665,000 in net premises and equipment and an increase in other assets of $1.5 million due to $1.4 million proceeds held in a stock offering escrow account. These increases were offset by an $8.4 million decrease in net loans, a $2.0 million decrease in cash and cash equivalents and a $695,000 decrease in foreclosed assets. Total liabilities increased by 5.7% to $184.2 million primarily due to an increase of $10.2 million in total deposits to $160.6 million from $150.4 million at September 30, 2012 which was offset by an 11.4% decrease in Federal Home Bank advances to $17.7 million at September 30, 2013. Non-interest bearing deposits and total non-maturity deposits increased by 15.0% and 13.3%, respectively, in the twelve month period ended September 30, 2013.

Common stockholders' equity increased by a net of $814,000, or 4.7% to $18.1 million for the twelve month period ended September 30, 2013, primarily due to an increase of $1.7 million in retained earnings. Other comprehensive income decreased by $927,000 at September 30, 2013 when compared to September 30, 2012. Tangible common stockholders' equity increased to $18.1 million this period.

Other Matters

On September 27, 2013, we paid a 3-for-1 stock split on our common stock, pursuant to which each stockholder of the Company received two additional shares of common stock for each one share of common stock held as of the close of business on the September 11, 2013 record date. As a result of the stock split, our total shares issued increased to 1,183,013 shares at September 30, 2013, and our net number of shares issued and outstanding after subtracting unearned RRP shares and treasury shares increased to 1,066,137 shares. In addition, our per share stock price currently reflects the stock split.

On October 11, 2013, we completed the sale of 129,075 shares of our common stock at a price of $16.00 per share in a private placement, for total gross proceeds of $2.1 million. The net sales proceeds are approximately $2.0 million. The sale of the shares in the private placement further increased our stockholders' equity, and the additional capital will be used to fund growth opportunities.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of September 30, 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		Sept. 30, 2013		Sept. 30, 2012		% Change			June 30, 2013		% Change
		(Unaudited)		(Unaudited)					(Unaudited)
Total Common Stockholders' Equity		18,146,908		17,332,526		5			17,979,365		1
Net Loans		113,165,148		121,581,212		(7	)		113,481,825		0
Foreclosed Assets		361,067		1,056,127		(66	)		352,000		3
Non-Performing Assets (Includes Foreclosed Assets)		1,928,701		4,322,086		(55	)		1,867,293		3
Allowance for Loan Losses		3,186,015		3,035,642		5			3,269,522		(3	)
Total Assets		202,384,931		191,593,859		6			200,393,782		1
Non-Interest Bearing Deposits		36,033,709		31,328,579		15			35,790,453		1
Non-Maturity Deposits (Includes interest and non-interest bearing deposits)		121,619,702		107,330,746		13			121,664,675		0
Brokered Deposits (Included in interest- bearing deposits)		2,459,461		6,549,958		(62	)		5,687,161		(57	)
FHLB Advances		17,716,500		19,990,524		(11	)		13,791,500		28

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months Ended									For the Nine Months Ended
			Sept. 30, 2013			June 30, 2013			Sept. 30, 2012			Sept. 30, 2013			Sept. 30, 2012
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	1,856,595		$	1,849,969		$	2,029,301		$	5,725,511		$	6,211,984
	Consumer Loans			249,210			240,112			233,079			726,165			674,836
	Consumer & Commercial Lines of Credit			54,931			49,971			49,500			154,391			142,347
	Commercial Loans			53,195			52,018			54,302			149,300			186,731
	Investment Securities and Deposits			229,430			195,154			158,817			592,168			436,956
TOTAL INTEREST AND DIVIDEND INCOME				2,443,361			2,387,224			2,524,999			7,347,535			7,652,854
INTEREST EXPENSE:
	Deposits			151,947			175,063			232,213			514,397			696,836
Federal Home Loan Bank Advances				75,461			74,828			112,893			236,534			373,325
Other				26,691			26,752			28,152			79,894			85,184
TOTAL INTEREST EXPENSE				254,099			276,643			373,258			830,825			1,155,345
	NET INTEREST INCOME			2,189,262			2,110,581			2,151,741			6,516,710			6,497,509
Provisions for loan losses				0			55,000			250,000			181,000			657,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,189,262			2,055,581			1,901,741			6,335,710			5,840,509
NON-INTEREST INCOME:
Service charge on deposits				235,077			221,105			182,657			669,827			537,853
Mortgage Banking Fees				106,198			203,925			193,839			497,249			557,673
Interchange Fees				143,519			141,327			115,659			416,572			324,632
Loan Fees and Charges				32,057			40,905			49,413			115,292			145,417
Gain/(Loss) on Sale of Investments and Foreclosed Assets				(88,008	)		17,060			89,760			(85,574	)		278,094
Gain/(Loss) on Trading Accounts				648			14,657			(3,092	)		17,069			(9,525	)
Other				13,687			14,339			22,872			83,624			82,718
TOTAL NON-INTEREST INCOME				443,178			653,318			651,108			1,714,059			1,916,862
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,082,659			1,092,741			1,092,555			3,253,239			3,257,026
Occupancy, Property Taxes, and Equipment				226,150			227,662			206,792			683,255			624,820
Technology and Information Processing				203,584			159,268			137,384			522,102			424,768
Professional Fees				92,107			74,631			90,828			208,964			225,345
Regulatory Fees				48,320			43,218			87,492			159,193			251,636
Foreclosed Assets				8,440			45,150			21,361			76,950			67,812
Other				257,740			316,095			279,343			870,441			800,279
TOTAL NON-INTEREST EXPENSE				1,919,000			1,958,765			1,915,755			5,774,144			5,651,686
INCOME BEFORE INCOME TAXES				713,440			750,134			637,094			2,275,625			2,105,685
Income Tax Expense				233,446			248,377			216,612			754,529			700,551
NET INCOME				479,994			501,757			420,482			1,521,096			1,405,134
PER COMMON SHARE DATA (ADJUSTED FOR 3 FOR 1 STOCK SPLIT):
Net Earnings			$	0.45		$	0.47		$	0.40		$	1.43		$	1.33
Diluted Net Earnings			$	0.45		$	0.47		$	0.40		$	1.42		$	1.33
Revenue (Net Interest Income and Non-Interest Income)			$	2.47		$	2.60		$	2.65		$	7.74		$	7.97
Dividends Paid			$	0.06		$	0.06		$	0.06		$	0.18		$	0.17
Book Value Period End			$	17.02		$	16.92		$	16.41		$	17.02		$	16.41
Book value adjusted for other Comprehensive income at period end			$	17.02		$	16.92		$	16.23		$	17.02		$	16.23
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				0.95	%		1.01	%		0.89	%		1.02	%		1.13	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				10.63	%		11.03	%		9.61	%		11.28	%		12.53	%
Net Interest Margin (Average) for the period				4.77	%		4.66	%		4.96	%		4.81	%		5.10	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.92	%		2.62	%		2.66	%		2.73	%		2.68	%
Efficiency Ratio for the Period				72.90	%		70.87	%		68.35	%		70.15	%		67.17	%
Net Loan Charge-Offs (Recoveries) for the Period to Average Period Net Loans (Annualized)			$	83,507 0.29	%	$	92,314 0.33	%	$	233,062 0.75	%	$	203,799 0.24	%	$	654,641 0.71	%
TDRs (Performing) at Period End to Average Period Net Loans			$	2,390,264 2.11	%	$	2,392,749 2.10	%	$	3,747,371 3.05	%	$	2,390,264 2.08	%	$	3,747,371 3.02	%
Non-Performing Assets at Period End to Average Period Total Assets			$	1,928,701 0.96	%	$	1,867,293 0.94	%	$	4,322,086 2.29	%	$	1,928,701 0.97	%	$	4,322,086 2.32	%
Allowance for Loan Losses at Period End to Average Period Net Loans to Non-Performing Assets at Period End			$	3,186,015 2.81% 165.19	%	$	3,269,522 2.87% 175.10	%	$	3,035,642 2.47% 70.24	%	$	3,186,015 2.77% 165.19	%	$	3,035,642 2.44% 70.24	%

CONSOLIDATED STATEMENTS OF CONDITION
			Sept. 30, 2013				Sept. 30, 2012				% Change			June 30, 2013				% Change
			(Unaudited)				(Unaudited)							(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	9,737,748			$	10,522,606			(17	)		$	9,792,361			(1	)
Certificates of Deposit				1,994,000				3,235,000			(38	)			2,986,000			(33	)
Securities - Held to Maturity				4,563,195				0			-				4,569,486			0
Securities - Available for Sale				59,450,958				44,471,366			34				57,750,322			3
Trading Securities				186,226				189,098			(2	)			206,358			(10	)
Net Loans				113,165,148				121,581,212			(7	)			113,481,825			0
Accrued Interest Receivable				762,599				574,456			33				803,197			(5	)
Premises and Equipment, Net				9,111,881				8,447,000			8				8,989,589			1
Foreclosed Assets				361,067				1,056,127			(66	)			352,000			3
Other Assets				3,052,109				1,516,994			101				1,462,644			109
	TOTAL ASSETS		$	202,384,931			$	191,593,859			6			$	200,393,782			1
LIABILITIES:
Deposits				160,592,502				150,411,580			7				164,418,216			(2	)
Federal Home Loan Bank Advances				17,716,500				19,990,524			(11	)			13,791,500			28
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				2,836,021				766,229			270				1,111,701			155
	TOTAL LIABILITIES		$	184,238,023			$	174,261,333			6			$	182,414,417			1
STOCKHOLDERS' EQUITY:
Common Stock			$	4,448			$	4,433			0			$	4,437			0
Capital Surplus				6,364,018				6,283,971			1				6,335,706			0
Retained Earnings				14,304,084				12,650,272			13				13,888,057			3
Unearned Compensation				(12,339	)			(19,405	)		36				(12,340	)		0
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				(729,835	)			196,723			-				(453,027	)		(61	)
Total Stockholders' Equity				18,146,908				17,332,526			5				17,979,365			1
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	202,384,931			$	191,593,859			6	%		$	200,393,782			1	%

Fritz W. Anderson II, Chairman of the Board announced today that "On October 10, 2013, the Board of Directors of FPB Financial Corp. declared a cash dividend of $0.10 per share on the common stock of the company. The dividend rate is composed of a regular quarterly dividend rate of $0.06 per share and a special year-end dividend of $0.04 per share and will be paid on December 24, 2013 to stockholders of record at the close of business on December 10, 2013."