SOURCE: FPB Financial Corp.

January 30, 2017 12:35 ET

FPB FINANCIAL CORP. (OTCQB: FPBF), the Holding Company for Florida Parishes Bank, Announces 2016 Fourth Quarter/Full Year Results and Declares Dividends

FLORIDA PARISHES BANK Announces a New Member of the Banks's Executive Management

HAMMOND, LA--(Marketwired - January 30, 2017) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the 2016 period ended December 31, 2016.

Earnings

Net income in the 2016 fourth quarter decreased 15.1% to $560,000 ($0.27 per fully diluted common share) as compared to the 2015 fourth quarter net income of $660,000 ($0.36 per fully diluted common share). For the year ending December 31, 2016 net income decreased 6.1% to $2.6 million ($1.36 per fully diluted common share) as compared to the 2015 period net income of $2.8 million ($1.54 fully diluted common share). The decline in net income in both the 2016 fourth quarter and for the 2016 year was primarily attributed to expenses associated with our recently opened new branch in Mandeville, LA and a new Executive Officer who joined The Company and the Bank in January 2016 developing lending and deposit relationships for the Bank in the Greater New Orleans region.

The Company's revenue from net-interest income and non-interest income increased in both the fourth quarter and the full year of 2016. The increase in revenue was offset by a 17.9% (fourth quarter) and a 13.6% (full year) increase in total non-interest expenses, the increase in expenses was primarily attributed to compensation and employee benefits and to a lesser extent to technology and information processing. Provisions for Loan Losses for the year 2016 had a positive effect on net income as provision expense declined by 40% to $216,000 from $360,000 in 2015. Return on shareholder equity for the fourth quarter of 2016 was 7.1%, return on equity for 2016 was 9.1%. Earnings per share in both the fourth quarter and the year were affected due to the Company completing the sale of 197,370 shares of our common stock on July 28, 2016 at a price of $16.50 per share in a private placement for the total gross proceeds of $3.3 million. The net sales proceeds are approximately $3.2 million. The additional capital raised in the private placement will be used to fund growth opportunities.

Items affecting and contributing to the Company's 2016 fourth quarter change in net income when compared to the 2015 quarterly period:

  • Net Interest Income increased to $2.8 million from $2.6 million in 2015, or 6.0%
  • Total Non-Interest Income increased to $877,000 from $767,000 in 2015, or 14.4%
  • Mortgage banking fees increased to $333,000 from $260,000 in 2015, or 28.1%
  • Total non-interest expenses increased to $2.8 million in 2016 from $2.4 million in 2015, or 17.9%
  • Compensation and employee benefits increased to $1.7 million from $1.4 million in 2015, or 21.6%

Other items and per share data of note this Year-To-Date (YTD) as of December 31, 2016, compared to December 31, 2015

  • Total Revenue (Net interest income and Non-interest income) increased to $14.4 million or 6.0%
  • Net Interest income increased to $10.9 million or 5.0%
  • Non-Interest income increased to $3.5 million or 9.3%
  • Book Value per common share increased by 7.4% to $15.09
  • Total Common Stockholders' Equity increased to $31.1 million, or 18.7%
  • Cash Dividends paid to common shareholders total $385,000 in 2016 and $337,000 in 2015
  • Non-Interest Bearing Deposits increased by 37.8% to $67.6 million
  • Non-Maturity deposits increased by 32.8% to $204.4 million
  • Total Assets increased by 24.4% to $299.3 million
  • Net Loans increased to $160.6 million or 13.2%
  • FHLB advances decreased by 33.5% to $10.7 million
  • Net-Loan charge-offs increased to $117,000 in 2016 from $21,000 in 2015
  • Provisions for Loan Losses decreased 40% to $216,000 from $360,000 in 2015
  • Foreclosed Assets increased to $129,000 in 2016 from $41,000 in 2015

Asset Quality

The Company had $156,000 of net loan charge-offs in fourth quarter of 2016 compared to $22,000 in the 2015 fourth quarter. Net loan charge-offs were $8,000 in the 2016 third quarter. Non-performing assets as of December 31, 2016 total $2.2 million, a 2.3% increase from December 31, 2015. Non-performing assets on September 30, 2016 total $2.2 million.

Total Troubled Debt Restructured (TDR'S) at December 31, 2016 increased by $703,000, or 25.7% to $3.4 million as compared to December 31, 2015. TDR'S that are current (less than 30 days past due) at December 31, 2016 represent $2.3 million of the $3.4 million TDR total. Total TDR'S at September 30, 2016 were $3.2 million. The Company's allowance for loan losses increased from December 31, 2015 by 3.1% to $3.3 million at December 31, 2016. Total allowance for loan losses were $3.4 million at September 30, 2016.

Balance Sheet and Capital

Total assets at December 31, 2016 increased by 24.4% to $299.3 million as compared to $240.6 million at December 31, 2015. The increase in total assets was primarily attributed to an increase of $21.1 million in cash and cash equivalents, an increase of $18.7 million in net loans, an increase of $13.7 million in investment securities, a $2.8 million increase in premises and equipment and a $2.8 million increase in bank owned life insurance. Total liabilities increased by 25.1% to $268.2 million primarily due to an increase of $59.0 million, or 30.3% in total deposits to $253.4 million offset by a decrease of $5.4 million or 33.5% in Federal Home Loan Bank advances.

Common Stockholders' Equity increased by $4.9 million, or 18.7%, to $31.1 million for the twelve months ended December 31, 2016, primarily due to the completion of the $3.2 million (net) private placement common stock offering on July 28, 2016. Capital surplus increased by $3.2 million or 36.3% to $12.1 million. Retained earnings increased by $2.3 million to $19.3 million for the twelve month period. Other comprehensive income decreased by $592,000 at December 31, 2016. Tangible common stockholders' equity increased to $31.1 million for the period. Book value per common share increased to $15.09 as total common shares of 2,057,943 were outstanding at December 31, 2016. At the Subsidiary Bank level, Tier 1 Capital increased to $28.1 million at December 31, 2016.

Other Matters - New Member of Executive Management and a 3 for 2 Stock Split

Effective January 23, 2017, Albert C. Kelleher has joined Florida Parishes Bank as the Bank's President. Mr. Kelleher brings years of banking relationships and wide range of banking experience in Southeast Louisiana to Florida Parishes Bank. His primary responsibilities will be for strategic initiatives and business development for the Bank in the Greater New Orleans region. Initially Mr. Kelleher's office will be in a new full service FPB banking facility located at 1041 Veterans Blvd. in Metairie, LA. This new Metairie office is scheduled to open to the public in March of this year.

On March 31, 2016 a 3 for 2 stock split was paid on our common stock. Primary as a result of the stock split, our total shares issued increased to 2,065,203 shares at December 31, 2016, and our net number of shares issued and outstanding after subtracting unearned RRP shares increased to 2,057,810 shares. In addition, our per share stock price currently reflects the stock split.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of December 31, 2016.

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, 2016 
(Unaudited)
 Dec. 31, 2015 
(Unaudited)
 Change   Sept. 30, 2016 
(Unaudited)
 Change  
                   
                   
Tangible Common Stockholders' Equity  31,122,382  26,219,613  19 % 31,761,541  (2 )%
Total Assets  299,319,113  240,640,929  24   268,887,250  11  
Net Loans  160,595,181  141,897,400  13   151,668,049  6  
Non-Interest Bearing Deposits  67,565,911  49,044,811  38   62,103,473  9  
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)  204,402,513  153,930,249  33   184,975,143  11  
Brokered Deposits (Included in interest- bearing deposits)  5,400,997  1,549,096  249   1,777,725  204
 
FHLB Advances  10,700,000  16,078,000  (33 ) 9,405,000  14  
                   
Foreclosed Assets  129,470  40,680  218   129,470  0  
                   
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)  2,165,737  2,117,168  2   2,223,326  (3 )
                   
Allowance for Loan Losses  3,340,404  3,240,950  3   3,421,542  (2 )
                   
                   
  
CONSOLIDATED STATEMENTS OF EARNINGS 
  
   For the Three Months   For the Twelve Months  
   Ended   Ended  
   Dec. 31, 2016  Sept. 30 2016  Dec. 31, 2015  Dec. 31, 2016  Dec. 31, 2015
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                           
INTEREST AND DIVIDEND INCOME:                          
                           
 Mortgage Loans  $2,261,610   $2,229,953   $2,068,209   $8,685,243   $8,360,250
 
 Commercial Loans   227,207    228,469    206,727    882,296    729,424
 
 Consumer Loans   210,909    211,120    224,387    837,454    903,121  
                           
 Investment Securities and Deposits   386,490    388,929    378,289    1,545,525
   1,317,885  
                           
TOTAL INTEREST AND DIVIDEND INCOME   3,086,216    3,058,471
   2,877,612    11,950,518    11,310,680  
                           
INTEREST EXPENSE:                          
                           
Deposits   233,810    216,025    182,671    841,752    681,900  
Subordinated debentures/trust Preferred securities   30,935    29,678    26,790    119,038    106,166  
                           
 Federal Home Loan Bank Advances   
26,525
   
29,747
   
31,405
   
118,549
   
164,838
 
TOTAL INTEREST EXPENSE   291,270    275,450    240,866    1,079,339    952,904  
                           
 NET INTEREST INCOME   2,794,946    2,783,021    2,636,746    10,871,179    10,357,776  
                           
Provisions for loan losses   75,000    75,000    81,000    216,000    360,000  
                           
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES   2,719,946    2,708,021    2,555,746    10,655,179    9,997,776  
                           
NON-INTEREST INCOME:                          
                           
Mortgage Banking Fees   333,145    352,723    260,007    1,296,793    1,198,348  
 Service Charge on deposits   
203,132
   
224,161
   
204,967
   
855,350
   
786,256
 
 Interchange Fees   
179,132
   
159,230
   
157,021
   
654,499
   
598,881
 
                           
Gain on bank owned life insurance   46,576    38,184    29,647    139,966    123,690  
                           
Loan Fees and Charges   41,697    56,309    48,269    203,920    241,315  
                           
Gain/(Loss) on Trading Accounts   16,921    910    2,601    (4,992 )  (8,668 )
                           
Gain/(Loss) on Sale of Investments and Foreclosed Assets   
(2,422
)  
28,066
   
9,578
   
165,846
   
68,454
 
                           
Other   59,201    45,490    54,838    236,449    237,639  
                           
TOTAL NON-INTEREST INCOME   877,382    905,073    766,928    3,547,831
   3,245,915  
                           
NON-INTEREST EXPENSE:                          
                           
Compensation and Employee Benefits   1,698,472    1,538,730    1,396,784    6,174,112    5,366,743  
                           
Occupancy, local and state taxes, and equipment   336,536    348,396    334,512    1,352,807    1,348,483  
                           
Technology and Information Processing   247,666    249,244    204,632    940,287    744,146  
                           
Professional Fees   76,560    89,062    70,703    354,135    311,659  
                           
Regulatory Fees   52,844    52,527    52,304    208,639    205,028  
                           
Foreclosed Assets   21,290    40,832    (16,804 )  78,263    (15,221 )
                           
Other   376,681    337,845    340,765    1,320,732    1,223,514  
                           
TOTAL NON-INTEREST EXPENSE   
2,810,049
   
2,656,636
   
2,382,896
   
10,428,975
   
9,184,352
 
                           
INCOME BEFORE INCOME TAXES   787,279    956,458    939,778    3,774,035    4,059,339  
                           
Income Tax Expense   227,211    286,903    279,834    1,132,206    1,245,947  
                           
NET INCOME   560,068    669,555    659,944    2,641,829    2,813,392  
                           
PER COMMON SHARE DATA: (Adjusted for a 3 for 2 Stock Split)                          
                           
Net Earnings  $0.27   $0.34   $0.36   $1.36   $1.55  
                           
Diluted Net Earnings  $0.27   $0.34   $0.36   $1.36   $1.54  
                           
Revenue (Net Interest Income and Non-Interest Income)  $
1.79
  $
1.83
  $
1.83
  $
7.44
  $
7.32
 
                           
Dividends Paid  $0.05   $0.05   $0.047   $0.197   $0.187  
                           
Book Value (Period End)  $15.09   $15.39   $14.05   $15.09   $14.05  
                           
Book Value adjusted Net of Other comprehensive income (Period Ended)  $
15.27
  $
15.02
  $
13.64
  $
15.27
  $
13.64
 
                           
RATIOS:                          
                           
ROA (Annualized Net Income to Average Period Assets)   
0.80
%  
1.02
%  
1.11
%  
1.02
%  
1.21
%
                           
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)   
7.06
%  
8.77
%  
10.14
%  
9.07
%  
11.38
%
                           
Net Interest Margin (Average) for the period   4.39 %  4.70 %  4.94 %  4.67 %  4.97 %
                           
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)   

2.75
%  

2.67
%  

2.72
%  

2.66
%  

2.56
%
                           
Efficiency Ratio for the Period   76.52 %  72.03 %  70.01 %  72.33 %  67.51 %
                           
Net Loan Charge-Offs (Recoveries) for the Period $156,138  $7,779  $21,891  $116,546  $20,937 
to Average Period Net Loans (Annualized)   
0.40
%  
0.02
%  
0.06
%  
0.08
%  
0.02
%
                           
TDR's at Period End $3,440,321  $3,248,646  $2,737,746  $3,440,321  $2,737,746 
to Average Period Net Loans   2.19 %  2.20 %  1.98 %  2.32 %  1.97 %
                           
Non-Performing Assets $2,165,737  $2,223,326  $2,117,168  $2,165,737  $2,117,168 
at Period End to Average Period Total Assets   0.77 %  0.85 %  0.90 %  0.84 %  0.91 %
                           
Allowance for Loan Losses at Period End $3,340,404  $3,421,542  $3,240,950  $3,340,404  $3,240,950 
to Average Period Net Loans  2.13%  2.31%  2.34%  2.26%  2.33%
to Non-Performing Assets at Period End   154.24 %  153.89 %  153.08 %  154.24 %  153.08 %
                           
                           
  
CONSOLIDATED STATEMENTS OF CONDITION 
  
   Dec. 31, 2016 (Unaudited)   Dec. 31, 2015 (Unaudited)  % Change
  Sept. 30, 2016 (Unaudited)  % Change
 
                       
ASSETS:                      
                       
Cash and Cash Equivalents (including Interest and Non-Interest Earning Deposits)  $34,265,949   $13,176,197  160   $23,505,723  46  
                       
Securities - Held to Maturity   2,922,473    4,456,490  (34 )  1,960,711  49  
                       
Securities - Available for Sale   80,714,624    65,484,984  23    70,891,481  14  
                       
Trading Securities   133,824    138,816  (4 )  116,903  14  
                       
Bank Owned Life Insurance   6,419,574    4,279,608  50    6,372,998  1  
                       
Net Loans   160,595,181    141,897,400  13    151,668,049  6  
                       
Accrued Interest Receivable   1,141,310    989,037  15    956,536  19  
                       
Premises and Equipment, Net   11,616,056    8,818,959  32    11,696,239  (1 )
                       
Foreclosed Assets   129,470    40,680  218    129,470  0  
                       
Other Assets   1,380,652    1,358,758  2    1,589,140  (13 )
                       
 TOTAL ASSETS  $299,319,113   $240,640,929  24   $268,887,250  11  
                       
LIABILITIES:                      
                       
Deposits   253,398,720    194,415,451  30    223,078,334  14  
                       
Federal Home Loan Bank Advances   10,700,000    16,078,000  (33 )  9,405,000
 14
 
                       
Subordinated debentures/trust preferred securities   3,093,000    3,093,000  0    3,093,000  0  
                       
Other Liabilities   1,005,011    834,865  20    1,549,375  (35 )
                       
 TOTAL LIABILITIES  $268,196,731   $214,421,316  25   $237,125,709  13  
                       
STOCKHOLDERS' EQUITY:                      
                       
Common Stock  $12,872    12,445  3    12,872  0  
Capital Surplus   
12,149,513
   
8,911,140
 
36
   
12,127,479
 
0
 
                       
Retained Earnings   19,319,861    17,063,850  13    18,862,684  2  
                       
Other Comprehensive Income (Loss)   (359,864 )  232,178
 -
   758,506  -
 
                       
Total Stockholders' Equity   31,122,382    26,219,613  19    31,761,541  (2 )
                       
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $
299,319,113
  $
240,640,929
 
24
% $
268,887,250
 
11
%
                       
                 

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On January 12, 2017, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.05 per share will be paid on March 25, 2017 to stockholders of record at the close of business on March 10, 2017."

Contact Information

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

    Ronnie Fugarino
    Chief Executive Officer
    Florida Parishes Bank
    (985) 345-1880

    David Anderson
    President
    FPB Financial Corp.
    and Executive Vice President
    and Development Officer
    Florida Parishes Bank
    (985) 345-1880

    Albert Kelleher
    President
    Florida Parishes Bank
    (985) 345-1880

    Derek Shants, CPA
    Chief Financial Officer
    and Chief Operations Officer
    FPB Financial Corp. and Florida Parishes Bank
    (985) 345-1880

    Joe Omner
    Executive Vice President, Chief Operating
    Officer and Chief Lending Officer
    Florida Parishes Bank
    (985) 345-1880