SOURCE: FPB Financial Corp.

October 26, 2016 14:07 ET

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

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

Earnings

Net income in the 2016 third quarter decreased 10.4% to $670,000 ($0.34 per fully diluted common share) as compared to the 2015 third quarter net income of $747,000 ($0.41 per fully diluted common share). Net income increased 5.2% as compared to The Company's 2016 second quarter net income of $637,000. Return on Equity for the third quarter of 2016 was 8.8% (on an annualized basis). The Company's revenue increased $194,000 in the 2016 third quarter as compared to the 2015 quarter with net income declining primarily due to a $207,000 increase in compensation expense and a $74,000 increase in technology and information processing expenses and a $40,000 increase in foreclosed assets expenses. Net income was also affected by a decline in provisions for loan losses by $41,000, or 35.4% this quarter. The decline in earnings per share of 17.1% was greater than the 10.4% decline in net income due to the Company completeing 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 third 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 5.9%
  • Total Non-Interest Income increased to $905,000 from $866,000 in 2015, or 4.4%
  • Mortgage banking fees increased to $353,000 from $313,000 in 2015, or 12.8%
  • Total non-interest expenses increased to $2.7 million in 2016 from $2.3 million in 2015, or 15.3%
  • Compensation and employee benefits increased to $1.5 million from $1.3 million in 2015, or 15.6%

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

  • Total Revenue (Net interest income and Non-interest income) increased to $10.7 million or 5.4%
  • Net Interest income increased to $8.1 million or 4.6%
  • Non-Interest income increased to $2.7 million or 7.7%
  • Book Value per common share increased by 13.1% to $15.39
  • Total Common Stockholders' Equity increased to $31.8 million, or 25.0%
  • Cash Dividends paid to common shareholders total $282,000 in 2016 and $255,000 in 2015
  • Non-Interest Bearing Deposits increased by 16.4% to $62.1 million
  • Non-Maturity deposits increased by 23.7% to $185.0 million
  • Total Assets increased by 14.7% to $268.9 million
  • Net Loans increased to $151.7 million or 9.9%
  • FHLB advances decreased by 6.1% to $9.4 million
  • Net-Loan Recoveries increased by $39,000 in 2016 from $1,000 in 2015
  • Foreclosed Assets increased to $129,000 in 2016 from $0.00 in 2015

Asset Quality

The Company had $8,000 of net loan charge-offs in third quarter of 2016 and $19,000 in the 2015 third quarter. Net loan charge-offs were $6,000 in the 2016 second quarter. Non-performing assets as of September 30, 2016 total $2.2 million, a 20.7% increase of $382,000 from September 30, 2015. Non-performing assets on June 30, 2016 total $2.2 million.

Total Troubled Debt Restructured (TDR'S) at September 30, 2016 increased by $430,000, or 15.2% to $3.2 million as compared to September 30, 2015. TDR'S that are current (less than 30 days past due) at September 30, 2016 represent $2.4 million of the $3.2 million TDR total. Total TDR'S at June 30, 2016 were $2.6 million. The Company's allowance for loan losses increased by 7.5% to $3.4 million at September 30, 2016. Total allowance for loan losses were $3.4 million at June 30, 2016.

Balance Sheet and Capital

Total assets at September 30, 2016 increased by 14.7% to $268.9 million as compared to $234.5 million at September 30, 2015. The increase in total assets was primarily attributed to an increase of $13.7 million in net loans, an increase of $9.8 million in cash and cash equivalents, an increase of $5.7 million in total investment securities and a $2.8 million increase in premises and equipment. Total liabilities increased by 13.4% to $237.1 million primarily due to an increase of $28.3 million, or 14.5% in total deposits to $223.1 million offset by a decrease of $608,000 or 6.1% in Federal Home Loan Bank advances.

Common Stockholders' Equity increased by $6.3 million, or 25.0%, to $31.8 million for the twelve months ended September 30, 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 $3.6 million or 41.6% to $12.1 million. Retained earnings increased by $2.4 million to $18.9 million for the twelve month period. Other comprehensive income increased by $417,000 at September 30, 2016. Tangible common stockholders' equity increased to $31.8 million for the period. Book value per common share increased to $15.39 as total common shares of 2,065,203 were outstanding at September 30, 2016. At the Subsidiary Bank level, Tier 1 Capital increased to $27.4million at September 30, 2016.

Other Matters

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 September 30, 3016, 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 September 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  Sept. 30,
2016
(Unaudited)
 Sept. 30,
2015
(Unaudited)
 %
Change
 June 30,
2016
(Unaudited)
 %
Change
                
Tangible Common Stockholders' Equity  31,761,541  25,408,493  25%  28,158,619  13%
Total Assets  268,887,250  234,462,670
 15  252,019,862  7
Net Loans  151,668,049  138,001,407  10  146,598,659  3
Non-Interest Bearing Deposits  62,103,473  53,371,851  16  58,274,162  7
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)  184,975,143  149,507,469  24  167,063,787  11
Brokered Deposits (Included in interest- bearing deposits)  1,777,725  1,549,022  15  1,652,703  8
FHLB Advances  9,405,000  10,013,000  (6)  7,715,000  22
                
Foreclosed Assets  129,470  0  100  133,877  (3)
                
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)  2,223,326  1,841,454  21  2,222,666  
                
Allowance for Loan Losses  3,421,542  3,181,841  8  3,354,322  2
                
 
CONSOLIDATED STATEMENTS OF EARNINGS
    
 For the Three Months For the Nine Months
 Ended Ended
 Sept. 30, 2016 June 30 2016 Sept. 30, 2015 Sept. 30, 2016 Sept. 30, 2015
 (Unaudited) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
          
INTEREST AND DIVIDEND INCOME:         
          
 Mortgage Loans$2,229,953 $2,131,697 $2,117,137 $6,423,633 $6,292,041
           
 Commercial Loans228,469 216,164 186,602 655,089 522,697
           
 Consumer Loans211,120 203,310 225,265 626,545 678,734
           
 Investment Securities and Deposits388,929 392,474 328,895 1,159,035 939,596
          
          
TOTAL INTEREST AND DIVIDEND INCOME3,058,471 2,943,645 2,857,899
 8,864,302 8,433,068
          
          
INTEREST EXPENSE:         
          
 Deposits216,025 202,950 169,202 607,942 499,229
          
Federal Home Loan Bank Advances29,747 29,804 34,663 92,024 133,433
          
Other29,678 29,473 26,804 88,103 79,376
          
TOTAL INTEREST EXPENSE275,450 262,227 230,669 788,069 712,038
          
 NET INTEREST INCOME2,783,021 2,681,418 2,627,230 8,076,233 7,721,030
          
Provisions for loan losses75,000 39,500 116,000 141,000 279,000
          
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES2,708,021 2,641,918 2,511,230 7,935,233 7,442,030
          
NON-INTEREST INCOME:         
          
Mortgage Banking Fees352,723 349,688 312,757 963,648 938,341
Service Charge on deposits224,161 210,183 191,075 652,218 581,289
Interchange Fees159,230 161,634 150,916 475,367 441,860
          
Loan Fees and Charges56,309 43,977 56,713 162,223 193,046
          
Gain on bank owned life insurance38,184 27,508 32,005 93,390 94,043
          
Gain/(Loss) on Sale of Investments and Foreclosed Assets28,066 17,695 81,087 168,268 58,876
          
Gain/(Loss) on Trading Accounts910 (8,665) (11,652) (21,913) (11,269)
          
Other45,490 53,350 53,723 177,248 182,801
          
TOTAL NON-INTEREST INCOME905,073 855,370 866,624 2,670,449 2,478,987
          
          
NON-INTEREST EXPENSE:         
          
Compensation and Employee Benefits1,538,730 1,489,725 1,331,567 4,475,640 3,969,959
          
Occupancy, local and state taxes, and equipment348,396 348,737 330,382 1,016,271 1,013,971
          
Technology and Information Processing249,244 223,833 175,707 692,621 539,514
          
Professional Fees89,062 105,363 96,184 277,575 240,956
          
Regulatory Fees52,527 52,311 50,360 155,795 152,724
          
Foreclosed Assets40,832 14,614 1,051 56,973 1,583
          
Other337,845 347,881 319,451 944,051 882,749
          
TOTAL NON-INTEREST EXPENSE2,656,636 2,582,464 2,304,702 7,618,926 6,801,456
          
INCOME BEFORE INCOME TAXES956,458 914,824 1,073,152 2,986,756 3,119,561
          
Income Tax Expense286,903 278,119 326,238 904,995 966,113
          
NET INCOME669,555 636,705 746,914 2,081,761 2,153,448
          
PER COMMON SHARE DATA: (Adjusted for a 3 for 2 Stock Split)         
          
Net Earnings$0.34 $0.34 $0.41 $1.10 $1.19
          
Diluted Net Earnings$0.34 $0.34 $0.41 $1.10 $1.19
          
Revenue (Net Interest Income and Non-Interest Income)$1.83 $1.90 $1.92 $5.59 $5.62
          
Dividends Paid$0.05 $0.05 $0.047 $0.147 $0.14
          
Book Value (Period End)$15.39 $15.09 $13.61 $15.39 $13.61
          
Book Value adjusted Net of Other comprehensive income (Period Ended)$15.02 $14.58 $13.43 $15.02 $13.43
          
RATIOS:         
          
ROA (Annualized Net Income to Average Period Assets)1.02% 1.03% 1.27% 1.11% 1.25%
          
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)8.77% 9.25% 11.85% 9.82% 11.82%
          
Net Interest Margin (Average) for the period4.70% 4.80% 4.99% 4.77% 4.91%
          
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)2.67% 2.79% 2.44% 2.63% 2.50%
          
Efficiency Ratio for the Period72.03% 73.02% 65.97% 70.90% 66.68%
          
Net Loan Charge-Offs (Recoveries) for the Period$7,779 $5,871 $19,099 $(39,592) $(954)
to Average Period Net Loans (Annualized)0.02% 0.02% 0.06% (0.04)% -
          
TDR's at Period End$3,248,646 $2,565,727 $2,818,958 $3,248,646 $2,818,958
to Average Period Net Loans2.20% 1.77% 2.02% 2.24% 2.02%
          
Non-Performing Assets at Period End$2,223,326 $2,222,666 $1,841,454 $2,223,326 $1,841,454
to Average Period Total Assets0.85% 0.89% 0.79% 0.89% 0.80%
          
Allowance for Loan Losses at Period End$3,421,542 $3,354,322 $3,181,841 $3,421,542 $3,181,841
to Average Period Net Loans2.31% 2.31% 2.29% 2.36% 2.28%
to Non-Performing Assets at Period End153.89% 150.92% 172.79% 153.89% 172.79%
          
 
CONSOLIDATED STATEMENTS OF CONDITION
           
   Sept. 30,
2016
 Sept. 30,
2015
 %
Change
 June 30,
2016
 %
Change
   (Unaudited)  (Unaudited)     (Unaudited)   
ASSETS:               
                
Cash and Cash Equivalents (including Interest and Non-Interest Earning Deposits)  $23,505,723  $13,678,437  72  $17,950,440  31
                
Securities - Held to Maturity  1,960,711  4,462,428  (56)  1,466,500  34
                
Securities - Available for Sale  70,891,481  62,651,766  14  67,345,130  5
                
Trading Securities  116,903  138,641  (16)  115,993  1
                
Bank Owned Life Insurance  6,372,998  4,249,991  50  4,334,814  47
                
Net Loans  151,668,049  138,001,407  10  146,598,659  3
                
Accrued Interest Receivable  956,536  903,230  6  955,978  0
                
Premises and Equipment, Net  11,696,239  8,943,315  31  11,477,238  2
                
Foreclosed Assets  129,470  0  100  133,877  (3)
                
Other Assets  1,589,140  1,433,455  11  1,641,233  (3)
                
 TOTAL ASSETS  $268,887,250  $234,462,670  15  $252,019,862  7
                
LIABILITIES:               
                
Deposits  223,078,334  194,799,380  15  210,976,212  6
                
Federal Home Loan Bank Advances  9,405,000  10,013,000  (6)  7,715,000
 22
                
Subordinated debentures/trust preferred securities  3,093,000  3,093,000  0  3,093,000  0
                
Other Liabilities  1,549,375  1,148,797  35  2,077,031  (25)
                
 TOTAL LIABILITIES  $237,125,709  $209,054,177  13  $223,861,243  6
                
STOCKHOLDERS' EQUITY:               
                
Common Stock  $12,872  $13,202  (3)  $12,434  4
 Capital Surplus  12,127,479  8,564,201  42  8,911,140  36
                
Retained Earnings  18,862,684  16,489,724  14  18,295,878  3
                
Other Comprehensive Income (Loss)  758,506  341,366
 122
 939,167  (19)
                
Total Stockholders' Equity  31,761,541  25,408,493  25  28,158,619  13
           
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY  $268,887,250
 $234,462,670  15%  $252,019,862  7%
                

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On October 13, 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 December 26, 2016 to stockholders of record at the close of business on December 12, 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.
    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