FPB Financial Corp. Announces 2014 First Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwired - Apr 29, 2014) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the 2014 first quarter ended March 31, 2014.

Earnings

Net income for the first quarter of 2014 totaled $466,000, a decrease of 13.7% from $539,000 in the first quarter of 2013. Net income in the 2013 fourth quarter totaled $468,000. 2014 Net income per fully diluted common share was $0.39, down from $0.51 per fully diluted common share in the first quarter of 2013. The 2013 results have been adjusted for a 3 for 1 stock split of our common shares completed on September 27, 2013. Earnings per share decreased 23.5% primarily due to a 15.5% increase in total non-interest expense and due to our completion of the sale of 129,075 shares of our common stock on October 11, 2013 in a private placement. Return on common stockholders' equity (ROE) was 9.0% on an annualized basis for the 2014 first quarter period.

Total non-interest expense increased by $294,000 in 2014 when compared to the 2013 period, primarily due to a $171,000 increase in compensation and employee benefits, primarily related to the hiring of new officers and staff for our recently opened branch office located in Covington, LA.

Although mortgage banking revenue declined by 52.9% to $88,000 in the first quarter, total non-interest income increased in the period primarily due to a net gain of $43,000 on sale of foreclosed assets and investments. Gain on bank owned life insurance totaled $36,000 in the period compared to $-0- in 2013.

Net interest income was unchanged at $2.2 million in the 2014 first quarter when compared to the first quarter of 2013 and down $20,000 from the 2013 fourth quarter.

First quarter earnings were positively affected by a $126,000 decrease in provision for loan losses when compared to the 2013 period.

The Company's effective income tax rate in the 2014 first quarter decreased to 29.2% compared to 33.6% in the 2013 period, primarily due to increased investment in municipal securities and due to the purchase of Bank Owned Life Insurance (BOLI).

Asset Quality

Total non-performing assets at March 31, 2014 decreased $1.0 million, or 35.0% to $1.9 million when compared to March 31, 2013. Total non-performing assets on December 31, 2013 were $1.8 million. The Company's allowance for loan losses decreased to $2.9 million when compared to $3.3 million at March 31, 2013. Total allowance for loan losses were $3.0 million at December 31, 2013. The March 31, 2014 allowance for loan losses represents 150.0% of non-performing assets and 2.4% of average period net loans.

Net loan charge-offs for the first quarter totaled $152,000 or 0.52% (on an annualized basis) of net loans up from $28,000 or 0.10% of net loans in the 2013 first quarter. In the 2013 fourth quarter the company's net loan charge-offs were $207,000 or 0.72% of net loans.

Performing Troubled Debt Restructured (TDRs) as of March 31 totaled $2.8 million, or a decrease of $260,000 from March 31, 2013. Performing TDRs increased by $222,000 when compared to December 31, 2013.

Balance Sheet and Capital

Total assets at March 31, 2014 increased to $208.8 million, or 5.5% as compared to $197.9 million on March 31, 2013. Total assets on December 31, 2013 were $205.9 million. The increase in total assets was primarily attributed to an increase of $10.0 million in available-for-sale investment securities, an increase of $4.2 million in net loans and the purchase of $4.0 million of Bank Owned Life Insurance (BOLI) in the 2013 third quarter. These increases were offset by a $5.3 million decrease in cash and cash equivalents, a decrease of $4.2 million in certificates of deposit and a $594,000 decrease in foreclosed assets. Total liabilities increased by 4.4% to $187.7 million primarily due to an increase of $5.4 million in total deposits to $167.4 million from $162.0 million at March 31, 2013 and an increase of 17.6% or $2.4 million in Federal Home Loan Bank advances to $16.2 million at March 31, 2014. Non interest bearing deposits and total non-maturity deposits both increased in the twelve month period ending March 31, 2014.

Common Stockholders' equity increased by a net of $3.0 million, or 16.7% to $21.1 million for the twelve month period ending March 31, 2014, 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 the total net sale proceeds of $2.0 million. Retained earnings increased by $1.6 million in the twelve month period. Other comprehensive income decreased by $651,000 at March 31, 2014 when compared to March 31, 2013. Book value per common share increased to $17.56 as total common shares of 1,200,912 were outstanding at March 31, 2014.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of March 31, 2014.

FPB Financial Corp. reported the following for the period ending March 31, 2014, and as compared to March 31, 2013:

• Total Assets increased to $208.8 million, or 5.5%
  
  
• Net Loans increased by $4.2 million, or 3.6%
  
  
• Non-Interest Income increased to $628,000, or 1.6%
  
  
• Non-Interest Bearing deposits increased to $40.7 million, or 1.6%
  
  
• Non-maturity Deposits increased by $8.3 million, or 7.0%
  
  
• Non-performing Assets decreased by $1.0 million, or 35.0%
  
  
• Dividends paid to common shareholders increased to $84,000, or 31.9%
  
  
• Common Stockholders' equity increased by $3.0 million, or 16.7%
  
  
• Common Book Value per share increased to $17.56, or 3.2%
  
  

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, 2014			March 31, 2013			% Change			Dec. 31, 2013			% Change
		(Unaudited)			(Unaudited)
Tangible Common Stockholders' Equity		$	21,088,325		$	18,072,555		17			$	20,430,683		3
Net Loans			120,174,242			115,970,100		4				115,983,445		4
Foreclosed Assets			407,067			801,495		(49	)			575,267		(29	)
Non-Performing Assets (includes Foreclosed Assets)			1,901,331			2,927,287		(35	)			1,753,875		8
Allowance for Loan Losses			2,852,379			3,306,836		(14	)			3,003,948		(5	)
Total Assets			208,828,057			197,856,444		6				205,913,362		1
Non-Interest Bearing Deposits			40,741,587			40,118,217		2				36,775,928		11
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			127,459,440			119,165,496		7				122,406,800		4
Brokered Deposits (Included in interest- bearing deposits)			1,799,202			6,548,866		(73	)			2,453,461		(27	)
FHLB Advances			16,218,000			13,791,500		18				19,391,500		(16	)

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months Ended
			March 31, 2014				Dec. 31, 2013				% Change			March 31, 2013				% Change
			(Unaudited)											(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	1,815,999			$	1,835,241			(1	)		$	2,018,946			(10	)
	Consumer Loans			241,092				249,176			(3	)			236,844			2
	Commercial Loans			62,925				56,905			11				44,087			43
	Consumer & Commercial Lines of Credit			61,264				58,812			4				49,489			24
	Investment Securities and Deposits			286,809				293,947			(2	)			167,584			71
TOTAL INTEREST AND DIVIDEND INCOME				2,468,089				2,494,081			(1	)			2,516,950			(2	)
INTEREST EXPENSE:
	Deposits			151,094				151,204			0				187,387			(19	)
Federal Home Loan Bank Advances				70,719				76,594			(8	)			86,245			(18	)
Other				25,873				26,193			(1	)			26,450			(2	)
TOTAL INTEREST EXPENSE				247,686				253,991			(2	)			300,082			(17	)
	NET INTEREST INCOME			2,220,403				2,240,090			(1	)			2,216,868			0
Provisions for loan losses				0				25,000			(100	)			126,000			(100	)
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,220,403				2,215,090			0				2,090,868			6
NON-INTEREST INCOME:
Service charges on deposits				232,144				236,641			(2	)			213,645			9
Interchange Fees				108,382				119,560			(9	)			100,149			8
Mortgage Banking Fees				88,208				131,502			(33	)			187,127			(53	)
Loan Fees and Charges				61,160				44,216			38				42,330			44
Gain on bank owned life insurance				35,748				11,118			222				0			-
Gain/(Loss) on Sale of Foreclosed Assets and Investments				28,433				5,723			397				(14,627	)		-
Gain/(Loss) on Trading Accounts				(14,913	)			7,454			-				1,764			-
Other				88,470				56,926			55				87,175			1
TOTAL NON-INTEREST INCOME				627,632				613,140			2				617,563			2
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,248,776				1,225,106			2				1,077,839			16
Occupancy, Local and State Taxes, and Equipment				263,238				244,476			8				263,944			0
Technology and Information Processing				194,401				248,308			(22	)			159,249			22
Professional Fees				75,052				69,604			8				42,225			78
Regulatory Fees				48,500				31,469			54				67,655			(28	)
Foreclosed Assets				33,568				35,334			(5	)			23,361			44
Other				327,146				325,058			1				267,107			25
TOTAL NON-INTEREST EXPENSE				2,190,681				2,179,355			1				1,896,380			16
INCOME BEFORE INCOME TAXES				657,354				648,875			1				812,051			(19	)
Income Tax Expense				191,834				180,749			6				272,706			(27	)
NET INCOME				465,520				468,126			(1	)			539,345			(14	)
PER COMMON SHARE DATA: Adjusted for 3 for 1 Stock Split)
Net Earnings			$	0.39			$	0.40			(3	)		$	0.51			(24	)
Diluted Net Earnings			$	0.39			$	0.39			0			$	0.51			(24	)
Dividends Paid			$	0.07			$	0.10			(30	)		$	0.06			17
Revenue (Net Interest Income and Non-Interest Income)			$	2.37			$	2.41			(2	)		$	2.67			(11	)
Book Value Period End			$	17.56			$	17.02			3			$	17.01			3
Book value adjusted for other comprehensive income at period end			$	18.04			$	17.72			2			$	16.94			6
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				0.91	%			0.91	%						1.11	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				9.04	%			9.24	%						12.21	%
Net Interest Margin (Average) for the period				4.83	%			4.80	%						4.98	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				3.04	%			3.03	%						2.62	%
Efficiency Ratio for the Period				76.92	%			76.38	%						66.91	%
Net Loan Charge-Offs/(Recoveries) for the Period to Average Period Net Loans (Annualized)			$	151,809 0.52	%		$	207,067 0.72	%		(27	)		$	27,979 0.10	%		443
TDRs (Performing) at Period End to Average Period Net Loans			$	2,843,939 2.40	%		$	2,621,929 2.29	%		8			$	3,104,363 2.63	%		(8	)
Non-Performing Assets at Period End to Average Period Total Assets			$	1,901,331 0.91	%		$	1,753,875 0.86	%		8			$	2,927,287 1.48	%		(35	)
Allowance for Loan Losses at Period End to Average Period Net Loans to Non-Performing Assets at Period End			$	2,852,379 2.41 150.02	%%		$	3,003,948 2.62 171.28	% %		(5	)		$	3,306,836 2.80 113.00	% %		(14	)

CONSOLIDATED STATEMENTS OF CONDITION
		March 31, 2014			March 31,  2013			% Change			Dec. 31, 2013			% Change
		(Unaudited)			(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest & Non-Interest Earnings Deposits		$	8,942,553		$	14,221,475		(37	)		$	7,385,835		21
Certificates of Deposit			0			4,235,000		(100	)			747,000		(100	)
Securities- Held to Maturity			4,550,255			2,074,811		119				4,556,671		0
Securities- Available for Sale			59,382,158			49,377,969		20				61,120,450		(3	)
Trading Securities			178,767			191,701		(8	)			193,679		(8	)
Net Loans			120,174,242			115,970,100		4				115,983,445		4
Accrued Interest Receivable			793,097			708,656		12				878,520		(10	)
Bank owned life insurance			4,046,866			0		-				4,011,118		1
Premises and Equipment, Net			9,132,962			8,953,607		2				9,072,060		1
Foreclosed Assets			407,067			801,495		(49	)			575,267		(29	)
Other Assets			1,220,090			1,321,630		(8	)			1,389,312		(12	)
	TOTAL ASSETS	$	208,828,057		$	197,856,444		6			$	205,913,357		1
LIABILITIES:
Deposits		$	167,411,314		$	162,036,238		3			$	162,384,981		3
Federal Home Loan Bank Advances			16,218,000			13,791,500		18				19,391,500		(16	)
Subordinated debentures/trust preferred securities			3,093,000			3,093,000		0				3,093,000		0
Other Liabilities			1,017,418			863,151		18				613,188		66
	TOTAL LIABILITIES	$	187,739,732		$	179,783,889		4			$	185,482,669		1
STOCKHOLDERS' EQUITY:
Common Stock		$	13,127		$	4,437		196			$	13,127		0
Capital Surplus			8,404,758			6,335,706		33				8,404,084		0
Retained Earnings			15,033,604			13,450,044		12				14,652,138		3
Unearned Compensation			(6,902	)		(12,340	)	44				(7,480	)	8
Treasury Stock			(1,783,468	)		(1,783,468	)	0				(1,783,468	)	0
Other Comprehensive Income (Loss)			(572,794	)		78,176		-				(847,713	)	32
Total Stockholders' Equity			21,088,325			18,072,555		17				20,430,688		3
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	208,828,057		$	197,856,444		6			$	205,913,357		1

Fritz W. Anderson II, Chairman of the Board announced today that "On April 10, 2014, 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 $0.07 per share and will be paid on June 25, 2014 to stockholders of record at the close of business on June 10, 2014."