SOURCE: FPB Financial Corp.

January 30, 2018 10:37 ET

FPB FINANCIAL CORP. (OTCQB: FPBF), the Holding Company for Florida Parishes Bank, Announces 2017 Fourth Quarter/Full Year Results and Declares Dividends

HAMMOND, LA--(Marketwired - January 30, 2018) - FPB Financial Corp. (OTCQB: FPBF), the holding for Florida Parishes Bank, announced financial results for the 2017 period ended December 31, 2017.

Balance Sheet and Capital

Total assets at December 31, 2017 increased 16% to $346.2 million when compared to December 31, 2016. The increase in total assets was primarily due to a 35% increase in net loans over the twelve month period to $217.0 million. Total Liabilities increased 13% over the period. Deposits were the primary component of these increases with total deposits of $290.6 million at December 31, 2017 of which $76.3 million were Non-Interest Bearing, which represents an increase of 13% from December 31, 2016.

Total loans increased to $221.3 million at December 31, 2017. Of that total $195.3 million, or 88.2%, were secured by real estate.

 
REAL ESTATE SECURED LOANS
December 31, 2017
(In Thousands)
  Balances   % of Portfolio
        
1-4 Family $78,296   35.38%
Multi-Family  7,191   3.25%
Land & Construction  43,320   19.57%
Commercial Real Estate       
  Non-Owner Occupied  31,711   14.33%
  Owner Occupied  34,766   15.71%
        
TOTAL REAL ESTATE $195,284   88.23%
        
        
NON - REAL ESTATE SECURED LOANS
        
Commercial & Industrial $19,597   8.85%
Consumer  7,369   3.33%
        
TOTAL COMMERCIAL &        
  INDUSTRIAL & CONSUMER $26,966   12.18%
        
Less unearned income on loans  (923)   (0.42%)
        
 TOTAL LOANS $221,327   100.00%
        
 
CONSOLIDATED LOAN AND DEPOSIT BALANCES BY MARKET
December 31, 2017
(In Thousands)
       
Market  Deposit Balances  Loan Balances
         
Tangipahoa Parish (4 offices) $223,246  $102,740
St. Tammany Parish (2 offices)  34,725   69,013
Jefferson Parish (1 office)  32,592   46,060
Other   0   3,564
         
  Total $290,563  $221,377
       

Total Common Stockholders' Equity increased by a net of $11.0 million, or 35% to $42.1 million for the twelve months ended December 31, 2017. This was primarily due to the sale of 594,806 shares of common stock in a private placement during the first and second quarters of 2017. The common shares were sold at a per share price of $16.75 producing gross proceeds of $10.0 million. A total of 198,275 warrants shares were authorized in connection with the 2017 private placement sale of common shares, the warrants which are convertible into common shares were authorized at a conversion price of $16.75 per share. The warrant holders have until March 31, 2019 to exercise and convert their warrants into common shares of the company. The net proceeds from this common stock issue will be used to fund business development and growth opportunities primarily in both the New Orleans and Hammond, LA Metropolitan Statistical Areas (MSA's) through our subsidiary, Florida Parishes Bank and for other general corporate purposes at the Company level.

Capital Surplus increased by $9.9 million to $22.1 million at December 31, 2017 when compared to December 31, 2016. Retained Earnings increased by $719,000 to $20.0 million for the twelve month period. Other Comprehensive Income increased by $343,000, or 95% from December 31, 2016 to December 31, 2017. Book value per common share increased to $15.56 as total common shares of 2,706,732 were outstanding at December 31, 2017 (this common share total does not include 198,275 of authorized warrants). In the 2017 fourth quarter, a total of 49,500 restricted common shares were awarded to officers and executive officers of Florida Parishes Bank and FPB Financial Corp. These recently awarded shares are scheduled to be fully vested on or before the fourth quarter of 2032. As of the 2017 year-end, 51,383 shares of the 2,706,732 common shares outstanding are restricted common shares that represent stock awards to officers of the Bank and Company which are not vested as of December 31, 2017.

At the subsidiary bank level, Tier 1 Capital increased to $ 33.0 million at December 31, 2017.

Earnings

Net Income in the 2017 fourth quarter decreased 70% to $167,000 ($0.06 per fully diluted common share) as compared to the 2016 fourth quarter net income of $560,000 ($0.27 per fully diluted common share). For the year ending December 31, 2017 net income decreased 52% to $1.3 million ($0.51 per fully diluted common share) as compared to the 2016 period net income of $2.6 million ($1.36 per fully diluted common share). The decline in net income in both the 2017 fourth quarter and for the 2017 year was primarily attributed to increases in Non-Interest expense, Provisions for Loan Losses and Income Tax expense. Compensation, Occupancy and Other expenses increased in both periods primarily due to the March 2017 opening of our full service banking center in Metairie, LA. Provisions for Loan Losses increased primarily due to an increase in total loans outstanding of $59.3 million, or 35%, in the 12 month period ending December 31, 2017 and by $19.3 million, or 9.4%, in the 2017 fourth quarter. Income tax expense increased in the 2017 fourth quarter by $278,000, or 136%, primarily due to the December 2017 change in Federal taxation requirements in relation to the company's deferred tax assets (DTAs).

Revenue (defined as Net-Interest income and Total Non-Interest income) in the 2017 fourth quarter increased to $4.3 million, or 17.1% when compared to the 2016 period. Pre-Provision for loan losses, Pre-Income tax expense - net income in the 3 month period ending December 31, 2017 increased to $1.0 million, or 21.7% when compared to the 2016 period. The Company's Net-Interest Margin declined in the 2017 fourth quarter to 4.31% from 4.39% in the 2016 period.

 
CONSOLIDATED RATE & YIELD
For the Twelve Months Ended December 31, 2017
 
         2017
Average
Yield/
Rate
 2016
Average
Yield/
Rate
           
   Average
Balance
  
Interest
   
       
Interest-Earning Assets              
 Loans Receivable  $190,370  $12,240  6.43%  6.86%
 Mortgage-Backed Securities   18,137   337  1.86%  1.78%
 Investment Securities AFS   51,937   1,042  2.01%  2.07%
 Investment Securities HTM   3,784   106  2.80%  3.29%
 Trading Assets   127   -  0.00%  0.00%
 State & Municipal Securities   14,374   322  2.24%  2.63%
 Federal Home Loan Bank Stock   605   7  1.16%  0.87%
 First National Bankers Bank Stock   300   3  1.00%  1.00%
 Interest-earning deposits   18,815   159  0.85%  0.37%
               
 Total Interest-Earning Assets   298,449   14,216  4.76%  5.13%
               
Non-Interest Earning Assets   29,373          
               
Less Allowance for Loan Loss   3,805          
               
 Total Assets  $324,017          
               
Interest-Bearing Liabilities              
 Deposits  $204,297  $1,265  0.62%  0.54%
 FHLB Advances   4,327   76  1.76%  1.30%
 Fed Funds Purchased   250   -  0.00%  0.00%
 Preferred Statutory Trust   3,093   135  4.36%  3.85%
               
 Total Interest-Bearing Liabilities   211,967   1,476  0.70%  0.64%
               
Non-Interest Bearing Liabilities   72,441          
               
 Total Liabilities   284,408          
               
Stockholders' Equity   39,609          
               
 Total Liabilities and              
 Stockholders' Equity  $324,017          
               
Net Interest-Earning Assets  $86,482          
               
Net Interest Income; Average              
 Interest Rate Spread      $12,740  4.07%  4.49%
               
Net Interest Margin          4.27%  4.67%
               
Average Interest-Earning Assets              
 to Average Interest-Bearing              
 Liabilities   140.80%          
               
 
CONSOLIDATED RATE & YIELD
For the Three Months Ended December 31, 2017
 
 
    
 
Average
Balance
  
 
 
Interest
 2017
Average
Yield/
Rate
 2016
Average
Yield/
Rate
         
         
         
Interest-Earning Assets:              
 Loans Receivable  $213,177  $3,377  6.28%  6.71%
 Mortgage-Backed Securities   16,911   77  1.81%  1.42%
 Investment Securities AFS   56,249   257  1.81%  2.01%
 Investment Securities HTM   5,075   38  2.97%  2.45%
 Trading Assets   126   -  0.00%  0.00%
 State & Municipal Securities   14,245   80  2.23%  2.43%
 Federal Home Loan Bank Stock   278   -  0.00%  0.99%
 First National Bankers Bank Stock   300   -  0.00%  0.00%
 Interest-earning deposits   10,967   19  0.69%  0.38%
                
 Total Interest-Earning Assets   317,328   3,848  4.81%  4.85%
               
Non-Interest Earning Assets   29,397          
               
Less Allowance for Loan Loss   4,385          
               
 Total Assets  $342,340          
               
Interest-Bearing Liabilities:              
 Deposits  $215,183  $351  0.65%  0.54%
 FHLB Advances   2,800   17  2.41%  1.45%
 Fed Funds Purchased   998   -  0.00%  0.00%
 Preferred Statutory Trust   3,093   35  4.49%  3.99%
               
 Total Interest-Bearing Liabilities   222,074   403  0.72%  0.63%
               
Non-Interest Bearing Liabilities   77,882          
               
 Total Liabilities   299,956          
               
Stockholders' Equity   42,384          
               
 Total Liabilities and              
 Stockholders' Equity  $342,340          
               
Net Interest-Earning Assets  $95,254          
               
Net Interest Income; Average              
 Interest Rate Spread      $3,445  4.09%  4.22%
               
Net Interest Margin          4.31%  4.39%
               
Average Interest-Earning Assets              
 to Average Interest-Bearing              
 Liabilities   142.89%          
            

Items affecting and contributing to the Company's 2017 fourth quarter change in net income when compared to the 2016 quarterly period:

  • Net Interest Income increased to $3.4 million from $2.8 million in 2016, or 23.0%
  • Total non-interest expenses increased to $3.3 million in 2017 from $2.8 million in 2016, or 15.7%
  • Compensation and employee benefits increased to $1.9 million from $1.7 million in 2016, or 10.5%
  • Provisions for Loan Losses increased to $400,000, or 433.0%

Other items and per share data of note this Year-To-Date (YTD) as of December 31, 2017, compared to the twelve month period ending December 31, 2016

  • Total Revenue (Net interest income and Non-interest income) increased to $16.4 million or 14.0%
  • Net Interest income increased to $12.7 million or 17.2%
  • Total Common Stockholders' Equity increased to $42.1 million, or 35.3%
  • Cash Dividends paid to common shareholders total $499,000 in 2017 and $365,000 in 2016
  • Book Value per common share increased by 3.1% to $15.56
  • Net Loans increased to $217.0 million or 35.1%
  • Allowance for Loan Losses increased to $4.4 million, or 31.0%
  • Non-Interest Bearing Deposits increased by 13.0% to $76.3 million
  • Non-Maturity deposits increased by 18.1% to $241.5 million
  • Total Assets increased by 15.6% to $346.2 million
  • FHLB advances decreased by 17.8% to $8.8 million

Asset Quality

Total non-performing assets (NPA's) at December 31, 2017 increased by $1.0 million, or 45% to $3.1 million when compared to December 31, 2016 and represents 1.4% of gross loans. NPA's at September 30, 2017 totaled $3.4 million. The increase during the 12 month period ending December 31, 2017 in NPA's were attributed to an increase of $148,000 in loans on nonaccrual, to $1.8 million; an increase of $814,000 in Other Real Estate Owned (OREO), to $1.3 million and a $20,000 increase in loans 90-days past due and accruing, to $20,000. The decrease in NPA's during the 3 month period ending December 31, 2017 were attributed to a decrease of $320,000 in non-accrual loans, an increase of $158,000 in OREO and a $121,000 decrease in loans 90-days past due and accruing. The Company's allowance for loan losses (ALLL) increased by 31% to $4.4 million at December 31, 2017 when compared to December 30, 2016. The $4.4 million in the ALLL represents 2.1% of average net loans in the 2017 fourth quarter period and 139% of NPA's on December 31, 2017. At September 30, 2017 the Company's ALLL totaled $4.3 million or 2.2% of 2017 third quarter average net loans and 124% of NPA's at period end.

Net loan charge-offs for the 2017 fourth quarter totaled $292,000 (0.55% of average net loans) up from $156,000 (0.40%) of net loan charge-offs in the 2016 fourth quarter. Net loan charge-offs were $70,000 (0.14%) in the 2017 third quarter. Troubled Debt Restructured (TDR's) cumulative total through December 31, 2017 was $2.9 million, of which $471,000 are on nonaccrual. Total TDR's on December 31, 2016 and September 30, 2017 were $3.4 million and $3.2 million respectively.

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,  Dec. 31,     Sept. 30,   
   2017  2016  %  2017  %
   (Unaudited)  (Unaudited)  Change  (Unaudited)  Change
                   
Tangible Common Stockholders' Equity                  
$42,111,968  $31,122,382  35  $42,325,625  (1)
                   
Total Assets   346,174,764   299,319,113  16   337,925,939  2
                   
Net Loans   217,000,626   160,595,181  35   200,004,420  8
                   
Non-Interest Bearing Deposits   76,322,570   67,565,911  13   75,276,323  1
                   
Non-Maturity Deposits (included in Interest and non-interest bearing Deposits)                  
                
 241,536,253   204,402,513  18   242,251,184  (0)
                   
Brokered Deposits (included in Interest-Bearing deposits                  
 4,380,507   5,400,997  (19)   4,022,470  9
                   
FHLB Advances   8,800,000   10,700,000  (18)   2,000,000  340
                   
Foreclosed Assets   943,500   129,470  629   786,120  20
                   
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)                  
                
 3,147,007   2,165,737  45   3,430,584  (8)
                   
Allowance for Loan Losses   4,376,126   3,340,404  31   4,267,899  3
              
 
CONSOLIDATED STATEMENT OF EARNINGS
 
                
   For the Three Months Ended  For the Twelve Months Ended
                
   Dec. 31,  Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
   2017  2017  2016  2017  2016
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                     
INTEREST AND DIVIDEND INCOME                    
                     
Mortgage Loans  $2,895,980  $2,768,117  $2,261,610  $10,412,504  $8,685,243
                     
Commercial Loans   283,229   281,084   227,207   1,031,324   882,296
                     
Consumer Loans   195,689   191,637   210,909   786,149   837,454
                     
Investment Securities and                    
Deposits   473,403   523,803   386,490   1,986,301   1,545,525
                     
TOTAL INTEREST AND DIVIDEND                    
INCOME   3,848,301   3,764,641   3,086,216   14,216,278   11,950,518
                     
INTEREST EXPENSE                    
                     
Deposits   351,280   351,440   233,810   1,265,149   841,752
                     
Subordinated debentures/trust                    
Preferred securities   34,892   34,909   30,935   135,098   119,038
                     
Federal Home Loan Bank                    
Advances   17,172   13,008   26,525   75,841   118,549
                     
TOTAL INTEREST EXPENSE   403,345   399,357   291,270   1,476,088   1,079,339
                     
NET INTEREST INCOME   3,444,956   3,365,284   2,794,946   12,740,190   10,871,179
                     
Provisions for loan losses   400,000   612,000   75,000   1,522,000   216,000
                     
 NET INTEREST INCOME                    
 AFTER PROVISION FOR                    
 LOAN LOSSES   3,044,956   2,753,284   2,719,946   11,218,190   10,655,179
                     
                     
NON-INTEREST INCOME                    
                     
Mortgage Banking Fees   225,776   410,517   333,145   1,239,980   1,296,793
                     
Service Charges on Deposits   251,248   236,450   203,132   916,487   855,350
                     
Interchange Fees   188,701   181,428   179,132   733,596   654,499
                     
Gain on Bank Owned Life                    
Insurance   47,318   48,265   46,576   184,876   139,966
                     
Loan Fees and Charges   37,958   53,424   41,697   168,956   203,920
                     
Gain/(Loss) on Trading Accounts   (46)   (211)   16,921   (8,646)   (4,992)
                     
Gain/(Loss) on Sale of Investments                    
and Foreclosed Assets   (51,169)   24,327   (2,422)   (30,717)   165,846
                     
Other   156,060   192,059   59,201   489,360   236,449
                     
TOTAL NON-INTEREST INCOME   855,846   1,146,259   877,382   3,693,892   3,547,831
                     
NON-INTEREST EXPENSE                    
                     
Compensation and Employee                    
Benefits   1,877,674   1,811,219   1,698,472   7,499,832   6,174,112
                     
Occupancy, local and state taxes                    
and Equipment   379,369   413,537   336,536   1,608,216   1,352,807
                     
Technology and Information                    
Processing   275,370   268,269   247,666   1,024,949   940,287
                     
Professional Fees   83,401   127,491   76,560   388,942   354,135
                     
Regulatory Fees   105,830   106,312   52,844   346,672   208,639
                     
Other   529,866   451,581   397,971   1,893,017   1,398,995
                     
TOTAL NON-INTEREST EXPENSE   3,251,510   3,178,409   2,810,049   12,761,627   10,428,975
                     
INCOME BEFORE INCOME TAXES   649,293   721,134   787,279   2,150,455   3,774,035
                     
Income Tax Expense   481,802   204,114   227,211   872,072   1,132,206
                     
 NET INCOME  $167,490  $517,020  $560,068  $1,278,383  $2,641,829
                     
PER COMMON SHARE DATA               
                
Net Earnings  $0.06  $0.19  $0.27  $0.51  $1.36
                     
Diluted Net Earnings  $0.06  $0.19  $0.27  $0.51  $1.36
                     
Revenue (Net Interest Income and                    
Non-Interest Income  $1.62  $1.70  $1.79  $6.58  $7.44
                     
Dividends Paid  $0.05  $0.05  $0.05  $0.20  $0.20
                     
Book Value (Period End)  $15.56  $15.93  $15.09  $15.56  $15.09
                     
Book Value Adjusted Net of                    
Other Comprehensive Income                    
(Period Ended)  $15.56  $15.84  $15.27  $15.56  $15.27
                     
RATIOS                    
                     
ROA (Annualized Net Income to                    
Average Period Assets)   0.19%   0.61%   0.80%   0.39%   1.02%
                     
ROE (Annualized Net Income to                    
Average Period Total Stockholders'                    
Equity)   1.57%   4.86%   7.06%   3.23%   9.07%
                     
Net Interest Margin (Average                    
for the Period)   4.31%   4.34%   4.39%   4.27%   4.67%
                     
Non-Interest expense less Non-                    
Interest Income to Average Period                    
Total Assets (Annualized)   2.78%   2.41%   2.75%   2.80%   2.66%
                     
Efficiency Ratio for the Period   75.60%   70.45%   76.52%   77.65%   72.33%
                     
Net Loan Charge-Offs (Recoveries) for the Period to Average  $291,774  $69,856  $156,138  $486,278  $116,546
Period Net Loans (Annualized)   0.55%   0.14%   0.40%   0.26%   0.08%
                     
TDR's at Period End  $2,931,589  $3,175,034  $3,440,321  $2,931,589  $3,440,321
to Average Period Net Loans   1.40%   1.61%   2.19%   1.57%   2.32%
                     
Non-Performing Assets at Period End  $3,147,007  $3,430,584  $2,165,737  $3,147,007  $2,165,737
to Average Period Assets   0.92%   1.03%   0.77%   0.97%   0.84%
                     
Allowance for Loan Losses at                    
Period End  $4,376,126  $4,267,899  $3,340,404  $4,376,126  $3,340,404
to Average Period Net Loans   2.10%   2.17%   2.13%   2.34%   2.26%
to Non-Performing Assets at                    
Period End   139.06%   124.41%   154.24%   139.06%   154.24%
                
 
CONSOLIDATED STATEMENT OF CONDITION
                
                
   Dec. 31,
2017
(Unaudited)
 Dec. 31,
2016
(Unaudited)
  
%
Change
 Sept. 30,
2017
(Unaudited)
  
%
Change
           
           
                
ASSETS               
                   
Cash and Cash Equivalents (including                 
Interest and Non-Interest Earning                  
Deposits)  $11,831,667  $34,265,949  (65)  $25,144,154  (53)
                   
Securities - Held to Maturity   5,405,894   2,922,473  85   3,405,644  59
                   
Securities - Available for Sale   89,217,057   80,714,624  11   86,789,197  3
                   
Trading Securities   125,179   133,824  (6)   125,225  (0)
                   
Bank Owned Life Insurance   7,104,450   6,419,574  11   7,057,131  1
                   
Net Loans   217,000,626   160,595,181  35   200,326,778  8
                   
Accrued Interest Receivable   1,362,179   1,141,310  19   1,203,375  13
                   
Premises and Equipment, Net   11,472,614   11,616,056  (1)   11,553,154  (1)
                   
Foreclosed Assets   943,500   129,470  629   785,170  20
                   
Deferred Tax Assets   436,753   397,761  10   87,246  401
                   
Other Assets   1,274,844   982,891  30   1,448,865  (12)
                   
 TOTAL ASSETS  $346,174,764  $299,319,113  16  $337,925,939  2
                   
LIABILITIES                  
                   
Deposits  $290,562,949  $253,398,720  15  $289,418,157  0
                   
Federal Home Loan Bank Advances   8,800,000   10,700,000  (18)   2,000,000  340
                   
Subordinated debentures/trust                  
Preferred securities   3,093,000   3,093,000  0   3,093,000  0
                   
Other Liabilities   1,606,846   1,005,011  60   1,089,157  48
                   
 TOTAL LIABILITIES  $304,062,796  $268,196,731  13  $295,600,314  3
                   
STOCKHOLDERS' EQUITY                  
                   
Common Stock  $14,192  $12,872  10  $14,192  0
                   
Capital Surplus   22,075,469   12,149,513  82   22,069,909  0
                   
Retained Earnings   20,042,572   19,319,861  4   20,004,420  0
                   
Other Comprehensive Income (Loss)   (20,264)   (359,864)  95   237,104  (107)
                   
Total Stockholders' Equity   42,111,968   31,122,382  35   42,325,625  (1)
                   
 TOTAL LIABILITIES AND                  
 STOCKHOLDERS' EQUITY  $346,174,764  $299,319,113  16%  $337,925,939  2%
              

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On January 11, 2018, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.06 per share will be paid on March 26, 2018 to stockholders of record at the close of business on March 12, 2018."

Contact Information

  • For More Information Contact:

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

    Ronnie Fugarino
    President
    FPB Financial Corp.
    Chief Executive Officer
    Florida Parishes Bank
    (985) 345-1880

    Albert Kelleher
    President
    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