SOURCE: FPB Financial Corp.

July 25, 2017 13:37 ET

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

HAMMOND, LA--(Marketwired - July 25, 2017) - FPB Financial Corp. (OTCQB: FPBF), the holding for Florida Parishes Bank, announced financial results for the 2017 period ended June 30, 2017.

Balance Sheet and Capital

Total Assets increased 9% to $332.6 million at June 30, 2017 when compared to March 31, 2017 and an increase of 32% when compared to June 30, 2016. The increase in total assets was primary due to a 15% increase in net loans for the three month period ending June 30, 2017 and a 27% increase in net loans over the twelve month period. Total liabilities increased 9% and 30% over the respective three and twelve month periods. Deposits were the primary component of these increases with total deposits increasing to $283.7 million at June 30, 2017 or 10% from March 31, 2017 and an increase of 35% when compared to June 30, 2016.

Total Common Stockholders' Equity increased by a net of $13.9 million, or 50% to $42.1 million for the twelve months ended June 30, 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 $13.2 million to $22.1 million at June 30, 2017 when compared to June 30, 2016. Retained Earnings increased by $1.3 million to $19.6 million for the twelve month period. Other Comprehensive Income decreased by $536,000, or 57% from June 30, 2016 to June 30, 2017. Book value per common share increased to $ 15.84 as total common shares of 2,657,232 were outstanding at June 30, 2017 (this common share total does not include 198,275 of authorized warrants). At the subsidiary bank level, Tier 1 Capital increased to $ 28.7 million at June 30, 2017.

Earnings

Net Income in the 2017 second quarter decreased 80% to $125,000 ($0.05 per fully diluted common share) as compared the 2016 second quarter net income of $637,000 ($0.34) per fully diluted common share). Revenue increased by $455,000, or 12% in the second quarter of 2017 when compared to the 2016 second quarter, net income for the 2017 period declined primarily due to increases of $461,000 in Compensation and Employee benefit expenses, $346,000 in Provisions for Loan Losses and $104,000 in interest expenses. Total non-interest income was unchanged at $855,000 in the 2017 second quarter, when compared to the 2016 period. Net interest margin decreased in the 2017 second quarter to 4.16% from 4.80% in 2016. Revenue increased by $213,000, or 5% for the three month period ending June 30, 2017 as compared to the three month period ending March 31, 2017. Expenses, including Interest, non-Interest and Provisions for Loan Losses increased by $410,000 in the 3 month period ending June 30, 2017 when compared to the March 31, 2017 three month period.

Earnings per share (EPS) decreased primarily due to the decline in net income while EPS was also affected by the Company issuing new common shares in July 2016 and in the first six months of 2017.

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

  • Net Interest Income increased to $3.0 million from $2.7 million in 2017, or 13.1%
  • Interest income on investment securities and deposits totaled $514,000 up from $392,000 in 2016, or 30.8%
  • Total non-interest expenses increased to $3.4 million in 2017 from $2.6 million in 2016, or 30.5%
  • Compensation and employee benefits increased to $2.0 million from $1.5 million in 2016, or 31.0%

Other items and per share data of note this Year-To-Date (YTD) as of June 30, 2017, compared to the six month period ending June 30, 2016

  • Total Revenue (Net interest income and Non-interest income) increased to $7.6 million or 8.0%
  • Net Interest income increased to $5.9 million or 12.0%
  • Total Common Stockholders' Equity increased to $42.1 million, or 49.5%
  • Cash Dividends paid to common shareholders total $234,000 in 2017 and $180,000 in 2016
  • Book Value per common share increased by 4.9% to $15.84
  • Net Loans increased to $186.5 million or 27.2%
  • Non-Interest Bearing Deposits increased by 19.5% to $69.7 million
  • Non-Maturity deposits increased by 38.7% to $231.7 million
  • Total Assets increased by 32.0% to $332.6 million
  • FHLB advances decreased by 65.7% to $2.7 million in 2017

Asset Quality

Total non-performing assets (NPA's) at June 30, 2017 increased by $1.6 million, or 71% to $3.8 million when compared to June 30, 2016. NPA's at March 31, 2017 totaled $3.1 million. The increase during the 12 month period ending June 30, 2017 in NPA's were attributed to an increase of $884,000 in loans on nonaccrual, to $2.4 million; an increase of $517,000 in Other Real Estate Owned (OREO), to $1.3 million and a $171,000 increase in loans 90-days past due and accruing, to $171,000. The increase in NPA's during the 3 month period ending June 30, 2017 were attributed to an increase of $720,000 in OREO, $413,000 in loans on nonaccrual and a $404,000 reduction in loans 90-days past due and accruing. The Company's allowance for loan losses (ALLL) increased by 11% to $3.7 million at June 30, 2017 when compared to June 30, 2016. The $3.7 million in the ALLL represents 2.1% of average net loans in the 2017 second quarter period and 98% of NPA's on June 30, 2017. At March 31, 2017 the Company's ALLL totaled $3.4 million or 2.1% of 2017 first quarter average net loans and 110% of NPA's at period end.

Net loan charge-offs for the 2017 second quarter totaled $94,000 (0.21% of average net loans) up from $6,000 (0.02%) of net loan charge-offs in the 2016 second quarter. Net loan charge-offs were $31,000 (0.08%) in the 2017 first quarter. Troubled Debt Restructured (TDR's) cumulative total through June 30, 2017 was $3.4 million, of which $478,000 are on nonaccrual. Total TDR's on June 30, 2016 and March 31, 2017 were $2.6 million and $3.4 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  June 30,  June 30,     March 31,     
   2017  2016  %  2017  %  
   (Unaudited)  (Unaudited)  Change  (Unaudited)  Change  
                  
Tangible Common Stockholders' Equity  42,099,344  28,158,619  50 %40,024,292  5 %
                  
Total Assets  332,582,863  251,913,862  32  306,110,828  9  
                  
Net Loans  186,466,214  146,598,659  27  162,737,413  15  
                  
Non-Interest Bearing Deposit  69,655,793  58,274,162  20  68,533,045  2  
            
Non-Maturity Deposits (included in Interest and non-interest bearing Deposit)  231,720,879  167,063,787  39  216,799,252  7  
                  
Brokered Deposits (included in Interest-Bearing deposits)  4,014,316  1,652,703  143  4,007,542  -  
                  
FHLB Advances  2,650,000  7,715,000  (66 )4,675,000  (43 )
                  
Foreclosed Assets  851,620  133,877  536  129,470  558  
                  
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)  3,802,411  2,222,666  71  3,125,129  22  
                  
Allowance for Loan Losses  3,725,755  3,354,322  11  3,434,185  8
 

CONSOLIDATED STATEMENT OF EARNINGS

  For the Three Months Ended  For the Six Months Ended  
                      
  June 30,  March 31,  June 30,  June 30,  June 30,  
  2017  2017  2016  2017  2016  
  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  
                      
INTEREST AND DIVIDEND INCOME:                     
                      
Mortgage Loans $2,433,392  $2,315,014  $2,131,697  $4,748,407  $4,193,680  
                      
Commercial Loans  256,234   210,777   216,164   467,011   426,620  
                      
Consumer Loans  195,850   202,973   203,310   398,823   415,425  
                      
Investment Securities and Deposits  513,531   475,564   392,474   989,094   770,106  
                      
TOTAL INTEREST AND DIVIDEND INCOME  3,399,007   3,204,328   2,943,645   6,603,335   5,805,831  
                      
INTEREST EXPENSE:                     
                      
Deposits  314,157   248,272   202,950   562,429   391,917  
                      
Subordinated debentures/trust Preferred securities  33,616   31,680   29,473   65,296   58,425  
                      
Federal Home Loan Bank Advances  18,372   27,289   29,804   45,661   62,277  
                      
TOTAL INTEREST EXPENSE  366,145   307,241   262,227   673,386   512,619  
                      
NET INTEREST INCOME  3,032,862   2,897,087   2,681,418   5,929,949   5,293,212  
                      
Provisions for loan losses  385,000   125,000   39,500   510,000   66,000  
                      
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  2,647,862   2,772,087   2,641,918   5,419,949   5,227,212  
                      
NON-INTEREST INCOME:                     
                      
Mortgage Banking Fees  309,057   294,628   349,688   603,686   610,925  
                      
Service Charge on Deposits  221,760   207,029   210,183   428,789   428,057  
                      
Interchange Fees  185,592   177,874   161,634   363,466   316,137  
                      
Gain on Bank Owned Life Insurance  45,406   43,886   27,508   89,292   55,206  
                      
Loan Fees and Charges  34,732   42,842   43,977   77,574   105,914  
                      
Gain/(Loss) on Trading Accounts  (5,032 ) (3,358 ) (8,665 ) (8,389 ) (22,823 )
                      
Gain/(Loss) on Sale of Investments and Foreclosed Assets  (3,874 ) 0   17,695   (3,874 ) 140,202  
                      
Other  67,299   73,946   53,350   141,244   131,758  
                      
TOTAL NON-INTEREST INCOME  854,940   836,847   855,370   1,691,788   1,765,376  
                      
NON-INTEREST EXPENSE:                     
                      
Compensation and Employee Benefits  1,950,892   1,860,047   1,489,725   3,810,939   2,936,910  
                      
Occupancy, local and state taxes, and Equipment  424,997   390,312   348,737   815,309   667,875  
                      
Technology and Information Processing  253,745   227,565   223,833   481,310   443,377  
                      
Professional Fees  97,916   80,133   105,363   178,049   188,513  
                      
Regulatory Fees  71,165   63,365   52,311   134,530   103,268  
                      
Other  571,762   339,810   362,495   911,572   622,347  
                      
TOTAL NON-INTEREST EXPENSE  3,370,477   2,961,232   2,582,464   6,331,709   4,962,290  
                      
INCOME BEFORE INCOME TAXES  132,325   647,702   914,824   780,028   2,030,298  
                      
Income Tax Expense  7,094   179,061   278,119   186,155   618,092  
                      
NET INCOME  125,231   468,641   636,705   593,873   1,412,206  
                      
PER COMMON SHARE DATA:                     
                      
Net Earnings $0.05  $0.23  $0.34  $0.25  $0.76  
                      
Diluted Net Earnings $0.05  $0.23  $0.34  $0.25  $0.76  
                      
Revenue (Net Interest Income and Non-Interest Income) $1.50  $1.80  $1.91  $3.26  $3.80  
                      
Dividends Paid $0.05  $0.05  $0.05  $0.10  $0.097  
                      
Book Value (Period End) $15.84  $15.63  $15.10  $15.84  $15.10  
                      
Book Value Adjusted Net of Other Comprehensive income (Period Ended) $15.69  $15.70  $14.59  $15.69  $14.59  
                      
RATIOS:                     
                      
ROA (Annualized Net Income to Average Period Assets)  0.16 % 0.64 % 1.03 % 0.39 % 1.16 %
                      
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)  1.23 % 5.80 % 9.25 % 3.25 % 10.40 %
                      
Net Interest Margin (Average for the Period)  4.16 % 4.35 % 4.80 % 4.25 % 4.81 %
                      
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)  3.14 % 2.90 % 2.79 % 3.02 % 2.61 %
                      
Efficiency Ratio for the Period  86.69 % 79.31 % 73.02 % 83.07 % 70.03 %
                      
Net Loan Charge-Offs (Recoveries)               
for the Period $94,060  $30,589  $5,871  $124,649  $(47,372 )
to Average Period Net Loans  0.21 % 0.08 % 0.02 % 0.15 % (0.07 )%
                      
TDR's at Period End $3,369,444  $3,370,199  $2,565,727  $3,369,444  $2,565,727  
to Average Period Net Loans  1.91 % 2.04 % 1.77 % 1.97 % 1.79 %
                      
Non-Performing Assets at Period $3,802,411  $3,125,129  $2,222,666  $3,802,411  $2,222,666  
End to Average Period Total Assets  1.18 % 1.05 % 0.89 % 1.23 % 0.90 %
                      
Allowance for Loan Losses at Period End $3,725,755  $3,434,815  $3,354,322  $3,725,755  $3,354,322  
to Average Period Net Loans  2.11 % 2.08 % 2.31 % 2.18 % 2.33 %
to Non-Performing Assets at Period End  97.98 % 109.91 % 150.92 % 97.98 % 153.92 %

CONSOLIDATED STATEMENT OF CONDITION

  June 30,  June 30,      March 31,      
  2017  2016  %  2017  %  
  (Unaudited)  (Unaudited)  Change  (Unaudited)  Change  
                      
ASSETS:                     
                      
Cash and Cash Equivalents (including Interest and Non-Interest Earning Deposits) $34,141,370  $17,950,440   90  $36,551,178   (7 )
                      
Securities - Held to Maturity  3,410,803   1,466,500   133   3,416,410   -  
                      
Securities - Available for Sale  86,514,148   67,345,130   28   82,335,124   5  
                      
Trading Securities  125,435   115,993   8   130,467   (4 )
                      
Bank Owned Life Insurance  6,508,867   4,334,814   50   6,463,460   1  
                      
Net Loans  186,466,214   146,598,659   27   162,737,413   15  
                      
Accrued Interest Receivable  1,165,431   955,978   22   1,095,974   6  
                      
Premises and Equipment, Net  11,695,360   11,518,325   2   11,721,344   -  
                      
Foreclosed Assets  851,620   133,877   536   129,470   558  
                      
Other Assets  1,703,615   1,494,146   14   1,529,988   13  
                      
 TOTAL ASSETS $332,582,863  $251,913,862   32  $306,110,828   9  
                      
LIABILITIES:                     
                      
Deposits  283,744,513   210,968,609   35   257,087,845   10  
                      
Federal Home Loan Bank Advances  2,650,000   7,715,000   (66 ) 4,675,000   (43 )
                      
Subordinated debentures/trust preferred securities  3,093,000   3,093,000   0   3,093,000   0  
                      
Other Liabilities  996,006   1,978,634   (50 ) 1,230,781   (24 )
                      
 TOTAL LIABILITIES: $290,483,519  $223,755,243   30  $266,086,626   9  
                      
STOCKHOLDERS' EQUITY:                     
                      
Common Stock $14,192  $12,434   14  $13,980   2  
                      
Capital Surplus  22,062,244   8,911,140   148   20,508,631   8  
                      
Retained Earnings  19,620,072   18,295,878   7   19,685,606   -  
                      
Other Comprehensive Income (Loss)  402,836   939,167   (57 ) (184,015 ) -  
                      
Total Stockholders' Equity  42,099,344   28,158,619   50   40,024,202   5  
                      
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $332,582,863  $251,913,862   32  $306,110,828   9  

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On July 13, 2017, 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 25, 2017 to stockholders of record at the close of business on September 8, 2017."

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