FPB Financial Corp. (OTCQB: FPBF), the Holding Company for Florida Parishes Bank, Announces 2014 Fourth Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwired - Jan 29, 2015) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended December 31, 2014. 

Earnings

Net income in the 2014 fourth quarter increased to $561,000 ($0.46 per fully diluted common share) or 19.9% as compared to the 2013 fourth quarter net income of $468,000 (0.39 per fully diluted common share). Earnings per share increased by 17.9%. Return on Equity for the fourth quarter was 9.7%. Net income for the year ended 2014 totaled $2.1 million ($1.71 per fully diluted common share) up 3.7% from the year ended 2013 net income of $2.0 million ($1.81 per fully diluted common share). 2014 Earnings per Share decreased by 5.5% due to an increase in the average common shares outstanding to 1,205,263. Return on Equity for 2014 was 9.4%.

Items affecting and contributing to the Company's 2014 fourth quarter gain in net income when compared to the 2013 quarterly period:

• Net Interest Income increased to $2.5 million from $2.2 million, or 11.4%
• Mortgage Banking Fees totaled $235,000 up from $132,000 in 2013, or 78.6%
• Gain on Bank Owned Life Insurance increased by 214.9% to $35,000
• Income tax expense decreased 13.8% to $156,000
• Provisions for loan losses increased to $160,000 from $25,000, or 540.0%
• Return on Equity (ROE) increased to 9.7% from 9.2%

FPB Financial Corp. reported the following which affected net income for the year ended December 31, 2014, as compared to the year ended December 31, 2013.

• Net Interest Income increased to $9.5 million from $8.8 million, or 8.3%
• Net Interest Margin increased to 4.88% from 4.80%
• Non-Interest Income increased by $129,000, or 5.5%
• Income tax expense decreased 14.2% to $802,000
• Provisions for loan losses increased to $235,000 from $206,000, or 14.1%

Other items and per share data of note as of December 31, 2014, compared to December 31, 2013

• Foreclosed Assets decreased by $502,000, or 86.9%
• Non-performing Assets decreased by $243,000 to $1.5 million, or 13.8%
• Net Loan Charge-offs decreased by $74,000, or 18.0%
• Total Assets increased by 10.1% to $226.7 million
• Net Loans increased to $136.6 million or 17.8%
• Non-Interest Bearing Deposits increased by 20.7% to $44.4 million
• Non-Maturity deposits increased by 9.2% to $133.7 million
• Total Common Stockholders' Equity increased to $23.3 million, or 14.0%
• Book Value per share increased by 13.4% to $19.30 per share
• Dividends paid to common shareholders increased by 8.1% to $337,000

Asset Quality

Total non-performing assets at December 31, 2014 decreased by 13.8% to $1.5 million as compared to December 31, 2013. Non-performing assets at September 30, 2014 were $1.5 million. The Company's allowance for loan losses decreased by 3.4% to $2.9 million at December 31, 2014 while increasing to 192.0% of total non-performing assets. Total allowance for loan losses was $2.8 million at September 30, 2014

Net loan charge-offs for the fourth quarter totaled $64,000, down 69.3% from $207,000 in the 2013 fourth quarter. Net loan charge-offs were $100,000 in the 2014 third quarter. For the twelve months ended December 31, 2014 net loan charge-offs declined by $74,000, or 18.0%, to $337,000.

Performing Troubled Debt Restructured (TDR's) as of December 31, 2014 totaled $3.0 million, or an increase of $375,000 from December 31, 2013. Performing TDR's on September 30, 2014 totaled $2.9 million.

Balance Sheet and Capital

Total assets at December 31, 2014 increased by 10.1% to $226.7 million as compared to $205.9 at December 31, 2013. The increase in total assets was primarily attributed to an increase of $20.6 million in net loans, an increase of $2.4 million in cash and cash equivalents, an increase of $1.1 million in held-to-maturity investment securities, and an increase of $145,000 in Bank Owned Life Insurance (BOLI), and an increase of $132,000 in other miscellaneous assets. These increases were offset by a $3.3 million decrease in available for sale securities and a $502,000 decrease in foreclosed assets. Total liabilities increased by 9.7% to $203.4 million primarily due to an increase of $14.5 million, or 9.0% in total deposits to $176.9 and an increase of $3.1 million or 16.0% in Federal Home Loan Bank advances.

Common Stockholders' Equity increased by a net of $2.9 million, or 14.0%, to $23.3 million for the year ended December 31, 2014. Retained earnings increased by $1.7 million to $16.4 million for the 2014 period. Other comprehensive income increased by $1.1 million at December 31, 2014 when compared to December 31, 2013. Tangible common stockholders' equity increased to $23.3 million for the period. Book value per common share increased to $19.30 as total common shares of 1,206,947 were outstanding at December 31, 2014.

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

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, 2014		Dec. 31, 2013		% Change			Sept. 30, 2014		% Change
		(Unaudited)							(Unaudited)
Tangible Common Stockholders' Equity		23,291,053		20,430,688		14	%		22,411,468		4	%
Net Loans		136,622,308		115,983,447		18			132,080,832		3
Foreclosed Assets		76,000		575,267		(87	)		68,000		12
Non-Performing Assets (Includes Foreclosed Assets)		1,511,321		1,753,875		(14	)		1,493,422		1
Allowance for Loan Losses		2,901,887		3,003,947		(3	)		2,805,475		3
Total Assets		226,671,580		205,913,362		10			224,326,211		1
Non-Interest Bearing Deposits		44,399,159		36,775,928		21			43,224,862		3
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)		132,844,713		122,406,800		9			132,844,713		1
Brokered Deposits (Included in interest- bearing deposits)		1,549,540		2,453,461		(37	)		1,549,540		(14	)
FHLB Advances		22,673,000		19,391,500		28			22,673,000		11

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months												For the twelve Months
			Ended												Ended
			Dec. 31, 2014				Sept. 30, 2014				Dec. 30, 2013				Dec. 31, 2014				Dec. 31, 2013
			(Unaudited)				(Unaudited)								(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	2,049,922			$	2,017,494			$	1,835,241			$	7,728,171			$	7,560,752
	Consumer Loans			226,536				245,461				259,534				983,352				1,014,623
	Commercial Loans			166,257				168,892				105,358				595,780				380,125
	Investment Securities and Deposits			305,830				292,941				293,948				1,178,989				886,116
TOTAL INTEREST AND DIVIDEND INCOME				2,748,545				2,724,788				2,494,081				10,486,292				9,841,616
INTEREST EXPENSE:
	Deposits			164,738				160,622				151,207				625,772				665,604
Federal Home Loan Bank Advances				61,277				68,715				76,594				268,833				313,128
Other				26,075				26,432				26,193				104,740				106,087
TOTAL INTEREST EXPENSE				252,090				255,769				253,994				999,345				1,084,819
NET INTEREST INCOME				2,496,455				2,469,019				2,240,087				9,486,947				8,756,797
Provisions for loan losses				160,000				75,000				25,000				235,000				206,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,336,455				2,394,019				2,215,087				9,251,947				8,550,797
NON-INTEREST INCOME:
Service charge on deposits				192,562				187,106				237,058				811,486				906,885
Interchange Fees				140,394				119,300				119,560				475,638				441,997
Mortgage Banking Fees				234,904				105,206				131,503				532,527				628,752
Loan Fees and Charges				(209	)			108,884				44,216				235,271				159,508
Gain on bank owned life insurance				35,019				37,278				11,118				144,859				11,118
Gain/(Loss) on Sale of Investments and Foreclosed Assets				3,740				33,100				5,722				73,421				(79,852	)
Gain/(Loss) on Trading Accounts				(13,597	)			(4,463	)			7,454				(43,770	)			24,523
Other				29,422				57,502				56,010				226,354				233,769
TOTAL NON-INTEREST INCOME				622,235				643,913				612,641				2,455,786				2,326,700
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,298,297				1,244,628				1,225,107				5,035,514				4,478,346
Occupancy, local and state taxes, and equipment				326,992				315,539				214,014				1,192,991				1,000,79
Technology and Information Processing				199,862				192,460				248,309				801,596				770,411
Professional Fees				44,089				65,867				69,603				261,660				278,567
Regulatory Fees				51,730				50,966				46,701				202,067				205,894
Foreclosed Assets				4,219				5,946				35,334				48,528				112,284
Other				316,917				304,107				339,800				1,299,665				1,106,741
TOTAL NON-INTEREST EXPENSE				2,242,106				2,179,513				2,178,868				8,842,021				7,953,012
INCOME BEFORE INCOME TAXES				716,584				858,419				648,860				2,865,712				2,924,485
Income Tax Expense				155,887				266,895				180,744				802,394				935,273
NET INCOME				560,697				591,524				468,116				2,063,318				1,989,212
PER COMMON SHARE DATA:
Net Earnings			$	0.47			$	0.49			$	0.40			$	1.72			$	1.82
Diluted Net Earnings			$	0.46			$	0.49			$	0.39			$	1.71			$	1.81
Revenue (Net Interest Income and Non-Interest Income)			$	2.60			$	2.59			$	2.41			$	9.94			$	10.14
Dividends Paid			$	0.07			$	0.07			$	0.10			$	0.28			$	0.28
Book Value (Period End)			$	19.30			$	18.65			$	17.02			$	19.30			$	17.02
Book Value adjusted for Other comprehensive income (Period Ended)			$	19.12			$	18.76			$	17.72			$	19.12			$	17.72
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				0.99	%			1.07	%			0.91	%			0.95	%			0.99	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				9.72	%			10.60	%			9.24	%			9.44	%			10.73	%
Net Interest Margin (Average) for the period				4.87	%			4.95	%			4.80	%			4.88	%			4.80	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.85	%			2.76	%			3.03	%			2.95	%			2.80	%
Efficiency Ratio for the Period				71.89	%			70.02	%			76.38	%			74.04	%			71.76	%
Net Loan Charge-Offs (Recoveries) for the Period to Average Period Net Loans			$	63,589			$	100,176			$	207,067			$	337,061			$	410,867
(Annualized)				0.17	%			0.31	%			0.72	%			0.27	%			0.36	%
TDRs (Performing) at Period End			$	2,996,505			$	2,878,020			$	2,621,929			$	2,996,505			$	2,621,929
to Average Period Net Loans				2.21	%			2.23	%			2.29	%			2.38	%			2.28	%
Non-Performing Assets at Period			$	1,511,321			$	1,493,422			$	1,753,875			$	1,511,321			$	1,753,875
End to Average Period Total Assets				0.67	%			0.68	%			0.86	%			0.70	%			0.87	%
Allowance for Loan Losses at Period End			$	2,901,887			$	2,805,475			$	3,003,947			$	2,901,887			$	3,003,947
to Average Period Net Loans				2.14	%			2.18	%			2.62	%			2.30	%			2.61	%
to Non-Performing Assets at Period End				192.01	%			187.86	%			171.28	%			192.01	%			171.28	%

CONSOLIDATED STATEMENTS OF CONDITION
			Dec. 31, 2014				Dec. 31, 2013				% Change			Sept 30, 2014				% Change
			(Unaudited)											(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	10,576,401			$	7,385,834			43			$	10,729,294			(1	)
Certificates of Deposit				0				747,000			-				0			-
Securities - Held to Maturity				5,689,478				4,556,671			25				5,694,069			0
Securities - Available for Sale				57,835,117				61,120,450			(5	)			60,015,549			(4	)
Trading Securities				149,909				193,680			(23	)			163,506			(8	)
Bank Owned Life Insurance				4,155,978				4,011,118			4				4,120,959			1
Net Loans				136,622,308				115,983,447			18				132,080,832			3
Accrued Interest Receivable				888,513				878,523			1				825,267			8
Premises and Equipment, Net				9,159,312				9,072,061			1				9,347,985			(2	)
Foreclosed Assets				76,000				578,068			(87	)			68,000			12
Other Assets				1,518,564				1,386,510			10				1,280,750			19
	TOTAL ASSETS		$	226,671,580			$	205,913,362			10			$	224,326,211			1
LIABILITIES:
Deposits				176,887,045				162,368,052			9				175,306,273			1
Federal Home Loan Bank Advances				22,501,000				19,391,500			16				22,673,000			(1	)
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				899,482				630,122			43				842,470			8
	TOTAL LIABILITIES		$	203,380,527			$	185,482,674			10			$	201,914,743			1
STOCKHOLDERS' EQUITY:
Common Stock			$	13,127			$	13,127			0			$	13,127			0
Capital Surplus				8,470,021				8,404,084			1				8,413,084			1
Retained Earnings				16,378,745				14,652,139			12				15,902,533			3
Unearned Compensation				(4,341	)			(7,481	)		42				(6,900	)		37
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				216,969				(847,713	)		-				(126,908	)		-
Total Stockholders' Equity				23,291,053				20,430,688			14				22,411,468			4
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	226,671,580			$	205,913,362			10	%		$	224,326,211			1	%

Fritz W. Anderson II, Chairman of the Board, announced today that, "On January 8, 2015, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.07 per share will be paid on March 25, 2015 to stockholders of record at the close of business on March 10, 2015."