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."