SOURCE: FPB Financial Corp.

July 26, 2016 11:07 ET

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

HAMMOND, LA--(Marketwired - July 26, 2016) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the 2016 period ended June 30, 2016.

Earnings

Net income in the 2016 second quarter decreased 17.9% to $637,000 ($0.34 per fully diluted common share) as compared to the 2015 second quarter net income of $702,000 ($0.39 per fully diluted common share). Earnings per share decreased by 12.8%. Return on Equity for the second quarter of 2016 was 9.3% (on an annualized basis). The Company's revenue increased $180,000 in the 2016 second quarter as compared to the 2015 quarter, net income declined primarily due to a $190,000 increase in compensation expense and a $62,000 increase in other non-interest expenses. Also net income was affected by a decline in provisions for loan losses by $49,000, or 55.1% this quarter.

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

  • Net Interest Income increased to $2.7 million from $2.6 million in 2015, or 4.1%
  • Interest income on investment securities and deposits totaled $392,000 up from $309,000 in 2015, or 26.9%
  • Total Non-Interest Income increased to $855,000 from $781,000 in 2015, or 9.5%
  • Mortgage banking fees increased to $350,000 from $296,000 in 2015, or 18.2%
  • Total non-interest expenses increased to $2.6 million in 2016 from $2.2 million in 2015, or 14.8%
  • Compensation and employee benefits increased to $1.5 million from $1.3 million in 2015, or 14.6%

Other items and per share data of note this Year-To-Date (YTD) as of June 30, 2016, compared to June 30, 2015

  • Total Revenue (Net interest income and Non-interest income) increased to $7.1 million or 5.3%
  • Net Interest income increased to $5.3 million or 3.9%
  • Non-Interest income increased to $1.8 million or 9.5%
  • Book Value per common share increased by 15.1% to $15.09
  • Total Common Stockholders' Equity increased to $28.2 million, or 15.0%
  • Cash Dividends paid to common shareholders total $180,000 in 2016 and $169,000 in 2015
  • Non-Interest Bearing Deposits increased by 18.1% to $58.3 million
  • Non-Maturity deposits increased by 16.7% to $167.2 million
  • Total Assets increased by 8.6% to $252.2 million
  • Net Loans increased to $146.6 million or 4.8%
  • Net-Loan Charge-offs decreased by $27,000, or 136.2%
  • Foreclosed Assets increased to $134,000 in 2016 from $0.00 in 2015
  • FHLB advances decreased by 53.5% to $7.7 million in 2016

Asset Quality

Net loan charge-offs for the second quarter totaled $6,000, the Company had $5,000 of net loan recoveries in second quarter of 2015. Net loan recoveries were $53,000 in the 2016 first quarter. Total Non-performing assets as of June 30, 2016 total $2.2 million or an increase of $904,000 from June 30, 2015. Non-performing assets on March 31, 2016 total $2.5 million.

Total Performing Troubled Debt Restructured (TDR's) at June 30, 2016, decreased by $1.4 million, or 45.0% to $1.7 million as compared to June 30, 2015. TDR's at March 31, 2016 were $1.7 million. The Company's allowance for loan losses increased by 8.7% to $3.4 million at June 30, 2016. Total allowance for loan losses were $3.3 million at March 31, 2016.

Balance Sheet and Capital

Total assets at June 30, 2016 increased by 8.6% to $252.1 million as compared to $232.2 million at June 30, 2015. The increase in total assets was primarily attributed to an increase of $6.8 million in net loans, an increase $5.7 million in total investment securities, an increase of $4.2 million in cash and cash equivalents, and a $2.5 million increase in premises and equipment. Total liabilities increased by 7.8% to $224.0 million primarily due to an increase of $24.0 million, or 12.8% in total deposits to $211.0 million offset by a decrease of $8.9 million or 53.5% in Federal Home Loan Bank advances.

Common Stockholders' Equity increased by a net of $3.7 million, or 15.0%, to $28.2 million for the twelve months ended June 30, 2016. Retained earnings increased by $2.5 million to $18.3 million for the twelve month period. Other comprehensive income increased by $831,000 at June 30, 2106 when compared to June 30, 2015. Tangible common stockholders' equity increased to $28.2 million for the period. Book value per common share increased to $15.09 as total common shares of 1,866,735 were outstanding at June 30, 2016. At the Subsidiary Bank level, Tier 1 Capital increased to $26.7 million at June 30, 2016.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of June 30, 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
 
June 30, 2016 (Unaudited)
 
June 30, 2015 (Unaudited)
 
% Change
  
March 31, 2016 (Unaudited)
 
% Change
 
                   
                   
Tangible Common Stockholders' Equity  28,158,619  24,479,484  15 % 27,222,850  3 %
Total Assets  
252,132,285
 
232,160,472
 
9
  
243,901,836
 
3
 
Net Loans  
146,598,659
 
139,844,421
 
5
  
142,730,721
 
3
 
Non-Interest Bearing Deposits  
58,274,162
 
49,325,889
 
18
  
55,185,955
 
6
 
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)  
167,063,787
 
143,171,989
 
17
  
163,601,365
 
2
 
Brokered Deposits (Included in interest- bearing deposits)  
1,652,703
 
1,549,029
 
7
  
1,401,705
 
18
 
FHLB Advances  
7,715,000
 
16,591,000
 
(54
) 
9,165,000
 
(16
)
                   
Foreclosed Assets  133,877  0  100   40,680  229  
                   
Non-Performing Assets (includes Foreclosed Assets)  2,222,666  1,318,224  69   2,465,355  (10 )
                   
Allowance for Loan Losses  3,354,322  3,084,940  9   3,320,693  1  
                   
                   
CONSOLIDATED STATEMENTS OF EARNINGS 
  
  For the Three Months  For the Six Months  
  Ended  Ended  
  June 30, 2016  March 31 2016  June 30, 2015  June 30, 2016  June 30, 2015  
  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  
                      
INTEREST AND DIVIDEND INCOME:                     
                       
 Mortgage Loans $2,131,697  $2,061,983  $2,100,708  $4,193,680  $4,174,904  
                       
 Consumer Loans  203,310   212,115   230,796   415,425   453,469  
                       
 Commercial Loans  216,164   210,456   172,149   426,620   336,095  
                       
 Investment Securities and Deposits  392,474
  377,632   309,361   
770,106
  610,701  
                      
TOTAL INTEREST AND DIVIDEND INCOME  2,943,645   2,862,186
  2,813,014   5,805,831   5,575,169  
                      
INTEREST EXPENSE:                     
                      
 Deposits  202,950   188,967   166,109   391,917   330,027  
                      
Federal Home Loan Bank Advances  
29,804
  
32,473
  
44,526
  
62,277
  
98,770
 
                      
Other  29,473   28,952   26,633   58,425   52,572  
                      
TOTAL INTEREST EXPENSE  262,227   250,392   237,268   512,619   481,369  
                      
 NET INTEREST INCOME  2,681,418   2,611,794   2,575,746   5,293,212   5,093,800  
                      
Provisions for loan losses  39,500   26,500   88,000   66,000   163,000  
                      
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  

2,641,918
  

2,585,294
  

2,487,746
  

5,227,212
  

4,930,800
 
                      
NON-INTEREST INCOME:                     
                      
Mortgage Banking Fees  349,688   261,237   296,064   610,925   625,584  
Service Charge on deposits  
210,183
  
217,874
  
189,599
  
428,057
  
390,214
 
Interchange Fees  
161,634
  
154,503
  
149,580
  
316,137
  
290,944
 
                      
Loan Fees and Charges  43,977   61,937   75,895   105,914   136,333  
                      
Gain on bank owned life insurance  27,508   27,698   31,345   55,206   62,038  
                      
Gain/(Loss) on Sale of Investments and Foreclosed Assets  
17,695
  
122,507
  
(38,059
) 
140,202
  
(22,211
)
                      
Gain/(Loss) on Trading Accounts  (8,665 ) (14,158 ) 9,663   (22,823 ) 383  
                      
Other  53,350   78,408   66,859   131,758   129,078  
                      
TOTAL NON-INTEREST INCOME  
855,370
  
910,006
  
780,946
  
1,765,376
  
1,612,363
 
                      
NON-INTEREST EXPENSE:                     
                      
Compensation and Employee Benefits  
1,489,725
  
1,447,185
  
1,299,591
  
2,936,910
  
2,638,392
 
                      
Occupancy, local and state taxes, and equipment  
348,737
  
319,138
  
326,989
  
667,875
  
683,589
 
                      
Technology and Information Processing  223,833   219,544   194,811   443,377   363,807  
                      
Professional Fees  105,363   83,150   88,863   188,513   144,772  
                      
Regulatory Fees  52,311   50,957   52,087   103,268   102,364  
                      
Foreclosed Assets  14,614   1,527   (56 ) 16,141   532  
                      
Other  347,881   258,325   286,436   606,206   563,298  
                      
TOTAL NON-INTEREST EXPENSE  
2,582,464
  
2,379,826
  
2,248,721
  
4,962,290
  
4,496,754
 
                      
INCOME BEFORE INCOME TAXES  
914,824
  
1,115,474
  
1,019,971
  
2,030,298
  
2,046,409
 
                      
Income Tax Expense  278,119   339,973   317,527   618,092   639,875  
                      
NET INCOME  636,705   775,501   702,444   1,412,206   1,406,534  
                      
PER COMMON SHARE DATA:                     
                      
Net Earnings $0.34  $0.42  $0.39  $0.76  $0.78  
                      
Diluted Net Earnings $0.34  $0.42  $0.39  $0.76  $0.78  
                      
Revenue (Net Interest Income and Non-Interest Income) $
1.90
 $
1.90
 $
1.85
 $
3.80
 $
3.70
 
                      
Dividends Paid $0.05  $0.047  $0.047  $0.097  $0.094  
                      
Book Value (Period End) $15.09  $14.58  $13.11  $15.09  $13.11  
                      
Book Value adjusted Net of Other comprehensive income (Period Ended) $
14.58
 $
14.29
 $
13.06
 $
14.58
 $
13.06
 
                      
RATIOS:                     
                      
ROA (Annualized Net Income to Average Period Assets)  
1.03
% 
1.28
% 
1.22
% 
1.16
% 
1.24
%
                      
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)  
9.25
% 
11.59
% 
11.57
% 
10.40
% 
11.80
%
                      
Net Interest Margin (Average) for the period  4.80 % 4.83 % 5.00 % 4.81 % 4.98 %
                      
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)  

2.79
% 

2.43
% 

2.56
% 

2.61
% 

2.53
%
                      
Efficiency Ratio for the Period  73.02 % 67.58 % 66.99 % 70.03 % 67.05 %
                      
Net Loan Charge-Offs (Recoveries) for the Period $
5,871
 $
(53,243
)$
(5,012
)$
(47,372
)$
(20,053
)
to Average Period Net Loans (Annualized) 0.02% (0.15)% (0.02)% (0.07)% (0.03)%
                      
TDRs (Performing) at Period End $1,691,983  $1,692,063  $3,075,826  $1,691,983  $3,075,826  
  to Average Period Net Loans 1.17% 1.19% 2.19% 1.18% 2.21%
                      
Non-Performing Assets at Period End $2,222,666  $2,465,355  $1,318,224 $2,222,666  $1,318,224  
 to Average Period Total Assets 0.89% 1.02% 0.57% 0.90% 0.58%
                      
Allowance for Loan Losses at Period End $3,354,322  $3,320,693  $3,084,940  $3,354,322  $3,084,940  
 to Average Period Net Loans  2.31 % 2.33 % 2.20 % 2.33 % 2.21 %
 to Non-Performing Assets at Period End  150.92 % 134.69 % 234.02 % 150.92 % 234.02 %
                
                
CONSOLIDATED STATEMENTS OF CONDITION 
  
  June 30, 2016  June 30, 2015  % Change   March 31, 2016  % Change  
  (Unaudited)  (Unaudited)      (Unaudited)     
                     
ASSETS:                    
                     
Cash and Cash Equivalents (including Interest and Non-Interest Earning Deposits) $17,950,440  $13,741,724  31   $17,752,155  1  
                     
Securities - Held to Maturity  1,466,500   3,984,099  (63 )  4,457,007  (67 )
                     
Securities - Available for Sale  67,345,130   59,089,007  14    62,557,617  8  
                     
Trading Securities  115,993   150,292  (23 )  124,659  (7 )
                     
Bank Owned Life Insurance  4,334,814   4,217,986  3    4,307,306  1  
                     
Net Loans  146,598,659   139,844,421  5    142,730,721  3  
                     
Accrued Interest Receivable  955,978   927,834  3    949,100  1  
                     
Premises and Equipment, Net  11,518,325   9,035,878  27    9,477,988  22  
                     
Foreclosed Assets  133,877   0  100    40,680  229  
                     
Other Assets  1,712,569   1,169,231  46    1,504,603  14  
                     
 TOTAL ASSETS $252,132,285  $232,160,472  9   $243,901,836  3  
                     
LIABILITIES:                    
                     
Deposits  210,968,609   186,973,118  13    202,983,071  4  
                     
Federal Home Loan Bank Advances  7,715,000   16,591,000  (54 )  9,165,000
 (16
)
                     
Subordinated debentures/trust preferred securities  3,093,000   3,093,000  0    3,093,000  0  
                     
Other Liabilities  2,197,057   1,023,870  115    1,437,915  53  
                     
 TOTAL LIABILITIES $223,973,666  $207,680,988  9   $216,678,986  3  
                     
STOCKHOLDERS' EQUITY:                    
                     
Common Stock $12,434  $13,202  (6 ) $12,434  -  
Capital Surplus  
8,911,140
  
8,529,946
 
4
   
8,911,140
 
-
 
                     
Retained Earnings  18,295,878   15,827,971  16    17,752,020  3  
                     
Other Comprehensive Income (Loss)  939,167   108,365
 767
   547,256  72
 
                     
Total Stockholders' Equity  28,158,619   24,479,484  15    27,222,850  3  
                     
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $
252,132,285
 $
232,160,472
 
9
% $
243,901,836
 
3
%
                     

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On July 14, 2016, 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 September 23, 2016 to stockholders of record at the close of business on September 9, 2016."

Contact Information

  • For More Information Contact:

    Fritz W. Anderson, II
    Chief Executive Officer
    and Chairman, FPB Financial Corp.
    (985) 345-1880

    Ronnie Fugarino
    President and
    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

    Derek Shants
    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