SOURCE: FPB Financial Corp.

July 29, 2014 10:57 ET

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

HAMMOND, LA--(Marketwired - Jul 29, 2014) -  FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended June 30, 2014.

FPB Financial Corp. reported the following for the period ending June 30, 2014, and as compared to June 30, 2013:

  • Total Assets increased to $216.6 million or 8.1%

  • Net Loans increased by $12.2 million or 10.7%

  • Net Interest Income increased by $194,000, or 4.3%

  • Non-Interest bearing deposits increased to $42.5 million or 18.7%

  • Non-Maturity deposits increased by $10.2 or 8.4%

  • Dividend paid to common shareholders increased to $168,000 or 32.3%

  • Non-performing Assets decreased to $1.8 million or 1.0%

  • Common Stockholders' equity increased by $3.8 million or 21.0%

  • Common Book Value per share increased to $18.12, or 12.8%

Earnings

Net income for the second quarter of 2014 totaled $446,000, a decrease of 11.2% from $502,000 in the second quarter of 2013. Net income in the 2014 first quarter totaled $466,000. The 2014 second quarter net income per fully diluted common share was $0.37, down from $0.47 per fully diluted common share in the second 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 21.3% primarily due to a 13.8% 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 8.3% on an annualized basis for the 2014 second quarter period.

Total non-interest expense increased by $271,000 in the second quarter when compared to the 2013 period, primarily due to a $151,000 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. Technology and information processing expense increased 35.2% in the period, primarily due to a core processing conversion completed in the 2014 second quarter.

Net interest income increased by $190,000, or 9.0%, in the second quarter as compared to the 2013 second quarter and up $81,000 when compared to the 2014 first quarter.

Total non-interest income declined by $91,000, or 14.0%, in the period, primarily due to a 48.9% decline in revenue from mortgage banking fees. Gain on bank owned life insurance (BOLI) increased by $37,000 in the period. Loan fees increased by $24,000 compared to the 2013 period. Loss on trading Accounts totaled $11,000 in the quarter compared to a $15,000 gain in 2013.

Provisions for loan losses totaled -0- in the period as compared to $55,000 in the 2013 period.

The Company's effective tax rate decreased in the period due to the 2013 investment in BOLI and due to increased investment in municipal securities.

Asset Quality

Total non-performing assets at June 30, 2014 decreased $24,000 to $1.8 million when compared to June 30, 2013. Total non-performing assets on March 31, 2014 were $1.9 million. The Company's allowance for loan losses decreased to $2.8 million as compared to $3.3 million at June 30, 2013. Total allowance for loan losses were $2.9 million at March 31, 2014.

Net loan charge-offs in the second quarter totaled $22,000 down from $92,000 in the second quarter of 2013. In the first quarter of 2014, net loan charge-offs totaled $152,000.

Performing Troubled Debt Restructured (TDR's) as of June 30, 2014 totaled $2.9 million, or an increase of $512,000 from June 30, 2013. Performing TDR's totaled $2.8 million on March 31, 2014.

Balance Sheet and Capital

Total assets at June 30, 2014 increased to $216.6 million, or 8.1% as compared to June 30, 2013. Total assets on March 31, 2014 were $208.8 million. The increase in total assets was primarily attributed to an increase of $12.2 million in Net Loans and from the purchase of $4.1 million of BOLI in the 2013 third quarter. Total liabilities increased by 6.8% to $194.9 million primarily due to an increase of $6.6 million, or 47.8% in Federal Home loan Bank (FHLB) Advances. Deposits increased by $6.3 million to $170.8 million at June 30, 2014 as compared $164.4 million at June 30, 2013. Non-interest bearing deposits and total non-maturity deposits both increased in the twelve month period ending June 30, 2014.

Common Stockholders' Equity increased by a net of $3.8 million, or 21.0% to $21.8 million for the twelve month period ending June 30, 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 $1.5 million in the twelve month period. Other comprehensive income increase by $194,000, or 42.9% at June 30, 2014 when compared to June 30, 2013. Book value per common share increased to $18.12 as total common shares of 1,200,912 were outstanding at June 30, 2014.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of June 30, 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
 
June 30, 2014
 
June 30, 2013
 
%
Change
   
March 31, 2014
 
%
Change
 
    (Unaudited)   (Unaudited)         (Unaudited)      
                         
Tangible Common Stockholders' Equity  
21,764,077
 
17,979,365
 
21
%  
21,088,325
 
3
%
                         
Net Loans   125,728,515   113,481,825   11     120,174,242   5  
                         
Foreclosed Assets   0   352,000   (100 )   407,067   (100 )
                         
Non-Performing Assets (Includes Foreclosed Assets)  
1,842,896
 
1,867,293
 
(1
)  
1,901,331
 
(3
)
                         
Allowance for Loan Losses   2,830,652   3,269,522   (13 )   2,852,379   (1 )
                         
Total Assets   216,622,073   200,393,782   8     208,828,057   4  
                         
Non-Interest Bearing Deposits   42,539,401   35,790,453   19     40,741,587   4  
                         
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)  

131,935,775
 

121,664,675
 

8
   

127,459,440
 

4
 
                         
Brokered Deposits (Included in interest- bearing deposits)  
1,798,280
 
5,687,161
 
(68
)  
1,799,202
 
0
 
                         
FHLB Advances   20,418,000   13,791,500   48     16,218,000   26  
                         
                         
                         
CONSOLIDATED STATEMENTS OF EARNINGS  
   
    For the Three Months   For the Six Months  
    Ended   Ended  
    June 30, 2014   March 31, 2014   June 30, 2013   June 30, 2014   June 30, 2013  
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)  
                                 
INTEREST AND DIVIDEND INCOME:                                
                                 
  Mortgage Loans   $ 1,844,756   $ 1,815,999   $ 1,849,969   $ 3,660,755   $ 3,868,916  
                                   
  Consumer Loans     258,377     252,977     248,436     511,354     495,391  
                                   
  Commercial Loans     148,328     112,304     93,665     260,632     177,129  
                                   
  Investment Securities and Deposits    
293,409
   
286,809
   
195,154
   
580,218
   
362,737
 
                                 
TOTAL INTEREST AND DIVIDEND INCOME    
2,544,870
   
2,468,089
   
2,387,224
   
5,012,959
   
4,904,173
 
                                 
INTEREST EXPENSE:                                
                                 
  Deposits     149,318     151,094     175,063     300,412     362,450  
                                 
Federal Home Loan Bank Advances    
68,122
   
70,719
   
74,828
   
138,841
   
161,073
 
                                 
Other     26,361     25,873     26,752     52,234     53,202  
                                 
TOTAL INTEREST EXPENSE     243,801     247,686     276,643     491,487     576,725  
                                 
  NET INTEREST INCOME     2.301,069     2,220,403     2,110,581     4,521,472     4,327,448  
                                 
Provisions for loan losses     0     0     55,000     0     181,000  
                                 
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES    

2,301,069
   

2,220,403
   

2,055,581
   

4,521,472
   

4,146,448
 
                                 
NON-INTEREST INCOME:                                
                                 
Service charge on deposits     199,674     232,144     221,105     431,818     434,750  
                                 
Interchange Fees     107,562     108,382     111,587     215,944     211,736  
                                 
Mortgage Banking Fees     104,208     88,208     203,925     192,416     391,052  
                                 
Loan Fees and Charges     65,436     61,160     40,905     126,596     83,235  
                                 
Gain on bank owned life insurance     36,815     35,748     0     72,563     0  
                                 
Gain/(Loss) on Sale of Investments and Foreclosed Assets    
8,147
   
28,433
   
17,060
   
36,580
   
2,433
 
                                 
Gain/(Loss) on Trading Accounts     (10,798 )   (14,913 )   14,657     (25,711 )   16,421  
                                 
Other     50,962     88,470     44,079     139,432     131,254  
                                 
TOTAL NON-INTEREST INCOME    
562,006
   
627,632
   
653,318
   
1,189,638
   
1,270,881
 
                                 
NON-INTEREST EXPENSE:                                
                                 
Compensation and Employee Benefits    
1,243,814
   
1,248,776
   
1,092,741
   
2,492,590
   
2,170,580
 
                                 
Occupancy, local and state taxes, and equipment    
287,222
   
263,238
   
262,162
   
550,460
   
526,105
 
                                 
Technology and Information Processing     214,874     194,401     159,268     409,275     318,518  
                                 
Professional Fees     76,653     75,052     74,631     151,705     116,856  
                                 
Regulatory Fees     50,870     48,500     43,218     99,370     110,873  
                                 
Foreclosed Assets     4,795     33,568     45,150     38,363     68,510  
                                 
Other     351,492     327,146     281,595     678,638     543,702  
                                 
TOTAL NON-INTEREST EXPENSE    
2,229,720
   
2,190,681
   
1,958,765
   
4,420,401
   
3,855,144
 
                                 
INCOME BEFORE INCOME TAXES    
633,355
   
657,354
   
750,134
   
1,290,709
   
1,562,185
 
                                 
Income Tax Expense     187,778     191,834     248,377     379,612     521,083  
                                 
NET INCOME     445,577     465,520     501,757     911,097     1,041,102  
                                 
PER COMMON SHARE DATA:(Adjusted for 3 for 1 stock split)                                
                                 
Net Earnings   $ 0.37   $ 0.39   $ 0.47   $ 0.76   $ 0.98  
                                 
Diluted Net Earnings   $ 0.37   $ 0.39   $ 0.47   $ 0.76   $ 0.97  
                                 
Revenue (Net Interest Income and Non-Interest Income)   $
2.38
  $
2.37
  $
2.87
  $
4.75
  $
5.82
 
                                 
Dividends Paid   $ 0.07   $ 0.07   $ 0.06   $ 0.14   $ 0.11  
                                 
Book Value (Period End)   $ 18.12   $ 17.56   $ 16.92   $ 18.12   $ 16.92  
                                 
Book Value adjusted forOther comprehensive income (Period Ended)   $
18.34
  $
18.04
  $
17.35
  $
18.34
  $
17.35
 
                                 
RATIOS:                                
                                 
ROA (Annualized Net Income to Average Period Assets)    
0.84
%  
0.91
%  
1.01
%  
0.88
%  
1.06
%
                                 
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)    
8.30
%  
9.04
%  
11.03
%  
8.66
%  
11.61
%
                                 
Net Interest Margin (Average) for the period     4.86 %   4.83 %   4.66 %   4.85 %   4.82 %
                                 
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)    

3.16
%  

3.04
%  

2.62
%  

3.10
%  

2.62
%
                                 
Efficiency Ratio for the Period     77.88 %   76.92 %   70.87 %   77.40 %   68.86 %
                                 
Net Loan Charge-Offs (Recoveries) for the Period   $
21,487
  $
151,809
   
92,314
  $
173,296
   
120,293
 
to Average Period Net Loans (Annualized)     0.07 %   0.52 %   0.33 %   0.29 %   0.21 %
                                 
TDRs (Performing) at Period End   $ 2,905,005   $ 2,843,939   $ 2,392,749   $ 2,905,005   $ 2,392,749  
to Average Period Net Loans     2.39 %   2.40 %   2.10 %   2.42 %   2.06 %
                                 
Non-Performing Assets at Period   $ 1,842,896   $ 1,901,331   $ 1,867,293   $ 1,842,896   $ 1,867,293  
End to Average Period Total Assets     0.87 %   0.91 %   0.94 %   0.88 %   0.94 %
                                 
Allowance for Loan Losses at Period End   $ 2,830,652   $ 2,852,379   $ 3,269,522   $ 2,830,652   $ 3,269,522  
to Average Period Net Loans     2.33 %   2.41 %   2.87 %   2.36 %   2.82 %
to Non-Performing Assets at Period End     153.60 %   150.02 %   175.10 %   153.60 %   175.10 %
                                 
                                 
                                 
CONSOLIDATED STATEMENTS OF CONDITION  
   
  June 30, 2014     June 30, 2013     % Change     March 31, 2014     % Change  
  (Unaudited)     (Unaudited)           (Unaudited)        
                                   
ASSETS:                                  
                                   
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits $

9,444,417
    $

9,792,361
   

(4
)   $

8,942,553
   

6
 
                                   
Certificates of Deposit   0       2,986,000     -       0     -  
                                   
Securities - Held to Maturity   5,698,479       4,569,486     25       4,550,255     25  
                                   
Securities - Available for Sale   59,981,455       57,750,322     4       59,382,158     1  
                                   
Trading Securities   167,969       206,358     (19 )     178,767     (6 )
                                   
Bank Owned Life Insurance   4,084,581       0     -       4,046,866     1  
                                   
Net Loans   125,728,515       113,481,825     11       120,174,242     5  
                                   
Accrued Interest Receivable   880,523       803,197     10       793,097     11  
                                   
Premises and Equipment, Net   9,338,442       8,989,589     4       9,132,962     2  
                                   
Foreclosed Assets   0       352,000     -       407,067     -  
                                   
Other Assets   1,310,436       1,462,644     (10 )     1,220,090     7  
                                   
  TOTAL ASSETS $ 216,622,073     $ 200,393,782     8     $ 208,828,057     4  
                                   
LIABILITIES:                                  
                                   
Deposits   170,751,521       164,418,216     4       167,411,314     2  
                                   
Federal Home Loan Bank Advances  
20,418,000
     
13,791,500
   
48
     
16,218,000
   
26
 
                                   
Subordinated debentures/trust preferred securities  
3,093,000
     
3,093,000
   
0
     
3,093,000
   
0
 
                                   
Other Liabilities   595,475       1,111,701     (46 )     1,017,418     (41 )
                                   
  TOTAL LIABILITIES $ 194,857,996     $ 182,414,417     7     $ 187,739,732     4  
                                   
STOCKHOLDERS' EQUITY:                                  
                                   
Common Stock $ 13,127     $ 4,437     196     $ 13,127     0  
                                   
Capital Surplus   8,404,758       6,335,706     33       8,404,758     0  
                                   
Retained Earnings   15,395,118       13,888,057     11       15,033,604     2  
                                   
Unearned Compensation   (6,902 )     (12,340 )   44       (6,902 )   0  
                                   
Treasury Stock   (1,783,468 )     (1,783,468 )   0       (1,783,468 )   0  
                                   
Other Comprehensive Income (Loss)  
(258,556
)    
(453,027
)  
43
     
(572,794
)  
55
 
                                   
Total Stockholders' Equity   21,764,077       17,979,365     21       21,088,325     3  
                                   
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
216,622,073
    $
200,393,782
   
8
%   $
208,828,057
   
4
%
                                   

Fritz W. Anderson II, Chairman of the Board announced today that "On July 10, 2014, 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 September 25, 2014 to stockholders of record at the close of business on September 10, 2014."

Contact Information

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