SOURCE: FPB Financial Corp.

October 31, 2013 12:49 ET

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." 

Contact Information

  • For More Information Contact:
    Fritz W. Anderson, II
    President, Chief Executive Officer,
    And Chairman
    FPB Financial Corp.
    (985) 345-1880