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.

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."