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.

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.

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.

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."