SOURCE: FPB Financial Corp.

October 25, 2017 11:43 ET

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

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

Balance Sheet and Capital

Total assets at September 30, 2017 increased 26% to $337.9 million when compared to September 30, 2016. The increase in total assets was primarily due to a 32% increase in net loans over the twelve month period to $200.3 million. Total Liabilities increased 25% over the period. Deposits were the primary component of these increases with total deposits of $289.4 million at Sept. 30, 2017 of which $75.3 million were Non-Interest Bearing, which represents an increase of 21% from September 30, 2016.

Total loans increased to $204.9 million at September 30, 2017. Of that total $176.3 million, or 86.0%, were secured by real estate.

REAL ESTATE SECURED LOANS
September 30, 2017

        
  (In Thousands)     
1-4 Family $68,850  33.6 %
Multi-Family 6,229  3.0 %
Land & Construction 39,854  19.4 %
Commercial Real Estate       
 Non-Owner Occupied 29,640  14.5 %
 Owner Occupied 31,741  15.5 %
        
TOTAL REAL ESTATE $176,286  86.0 %
        

NON - REAL ESTATE SECURED LOANS

Commercial & Industrial $16,505  8.1 %
Consumer 12,201  5.9 %
        
TOTAL COMMERCIAL &       
 INDUSTRIAL & CONSUMER $28,605  14.0 %
        
  TOTAL LOANS $204,891  100.0 %

Total Common Stockholders' Equity increased by a net of $10.6 million, or 33% to $42.3 million for the twelve months ended September 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 $9.9 million to $22.1 million at September 30, 2017 when compared to September 30, 2016. Retained Earnings increased by $1.1 million to $20.0 million for the twelve month period. Other Comprehensive Income decreased by $521,000, or 69% from September 30, 2016 to September 30, 2017. Book value per common share increased to $ 15.93 as total common shares of 2,657,232 were outstanding at September 30, 2017 (this common share total does not include 198,275 of authorized warrants). At the subsidiary bank level, Tier 1 Capital increased to $ 31.1 million at September 30, 2017.

Earnings

Net Income in the 2017 third quarter decreased 23% to $517,000 ($0.19 per fully diluted common share) as compared to the 2016 third quarter net income of $670,000 ($0.34) per fully diluted common share). Revenue increased by $823,000, or 22% in the third quarter of 2017 when compared to the 2016 third quarter, net income for the 2017 period declined primarily due to increases of $537,000 in Provisions for Loan Losses, $272,000 in Compensation and Employee benefit expenses, $124,000 in interest expenses. Total non-interest income increased by $241,000 or 27% in the 2017 third quarter, when compared to the 2016 period primarily due to increases in revenue from SBA lending and from mortgage banking. Although the Company's net interest margin decreased in the 2017 third quarter to 4.39% from 4.70% in 2016, net interest income increased by $582,000, or 21% in the period.

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

Items affecting and contributing to the Company's 2017 third 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 21.0%
  • Total non-interest income increased to $1.1 million, or 26.6%
  • Total non-interest expenses increased to $3.2 million in 2017 from $2.7 million in 2016, or 19.6%
  • Compensation and employee benefits increased to $1.8 million from $1.5 million in 2016, or 17.7%
  • Provisions for Loan Losses increased to $612,000, or 716.0%

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

  • Total Revenue (Net interest income and Non-interest income) increased to $12.1 million or 12.9%
  • Net Interest income increased to $9.3 million or 15.1%
  • Total Common Stockholders' Equity increased to $42.3 million, or 33.3%
  • Cash Dividends paid to common shareholders total $367,000 in 2017 and $282,000 in 2016
  • Book Value per common share increased by 3.5% to $15.93
  • Net Loans increased to $200.3 million or 32.1%
  • Allowance for Loan Losses increased to $4.3 million, or 24.7%
  • Non-Interest Bearing Deposits increased by 21.2% to $75.3 million
  • Non-Maturity deposits increased by 31.0% to $242.3 million
  • Total Assets increased by 25.8% to $338.0 million
  • FHLB advances decreased by 78.7% to $2.0 million

Asset Quality

Total non-performing assets (NPA's) at September 30, 2017 increased by $1.2 million, or 54% to $3.4 million when compared to September 30, 2016 and represents 1.7% of gross loans. NPA's at June 30, 2017 totaled $3.8 million. The increase during the 12 month period ending September 30, 2017 in NPA's were attributed to an increase of $622,000 in loans on nonaccrual, to $2.1 million; an increase of $458,000 in Other Real Estate Owned (OREO), to $1.2 million and a $115,000 increase in loans 90-days past due and accruing, to $115,000. The decrease in NPA's during the 3 month period ending September 30, 2017 were attributed to a decrease of $256,000 in non-accrual loans, a decrease of $64,000 in OREO and a $56,000 reduction in loans 90-days past due and accruing. The Company's allowance for loan losses (ALLL) increased by 25% to $4.3 million at September 30, 2017 when compared to September 30, 2016. The $4.3 million in the ALLL represents 2.4% of average net loans in the 2017 third quarter period and 124% of NPA's on September 30, 2017. At June 30, 2017 the Company's ALLL totaled $3.7 million or 2.1% of 2017 second quarter average net loans and 98% of NPA's at period end.

Net loan charge-offs for the 2017 third quarter totaled $70,000 (0.14% of average net loans) up from $8,000 (0.02%) of net loan charge-offs in the 2016 third quarter. Net loan charge-offs were $94,000 (0.21%) in the 2017 second quarter. Troubled Debt Restructured (TDR's) cumulative total through September 30, 2017 was $3.2 million, of which $471,000 are on nonaccrual. Total TDR's on September 30, 2016 and June 30, 2017 were $3.2 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  Sept. 30,  Sept. 30,     June 30,   
   2017  2016  %  2017  %
   (Unaudited)  (Unaudited)  Change  (Unaudited)  Change
                
Tangible Common Stockholders' Equity  42,325,625  31,761,541  33%  42,099,344  1%
                
Total Assets  337,925,939  268,887,250  26  332,582,863  2
                
Net Loans  200,004,420  151,668,049  32  186,466,214  7
                
Non-Interest Bearing Deposits  75,276,323  62,103,473  21  69,655,793  8
                
Non-Maturity Deposits (included in Interest and non-interest bearing Deposits)  242,251,184  184,975,143  31  231,720,879  5
                
Brokered Deposits (included in Interest-Bearing deposits)  4,022,470  1,777,725  126  4,014,316  -
                
FHLB Advances  2,000,000  9,405,000  (79)  2,650,000  (25)
                
Foreclosed Assets  783,170  129,470  505  851,620  (8)
                
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)  3,430,584  2,223,326  54  3,802,411  (10)
                
Allowance for Loan Losses  4,267,899  3,421,542  25  3,725,755  15
                
 
CONSOLIDATED STATEMENT OF EARNINGS
                
   For the Three Months Ended  For the Nine Months Ended
                
   Sept. 30,  June 30,  Sept. 30,  Sept. 30,  Sept. 30,
   2017  2017  2016  2017  2016
   (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)  (Unaudited)
                
INTEREST AND DIVIDEND INCOME:               
                
Mortgage Loans  $2,768,117  $2,433,392  $2,229,953  $7,516,523  $6,423,633
                
Commercial Loans  281,084  256,234  228,469  748,095  655,089
                
Consumer Loans  191,637  195,850  211,120  590,460  626,545
                
Investment Securities and Deposits  523,803  513,531  388,929  1,512,898  1,159,035
                
TOTAL INTEREST AND DIVIDEND INCOME  3,764,641  3,399,007  3,058,471  10,367,976  8,864,302
                
INTEREST EXPENSE:               
                
Deposits  351,440  314,157  216,025  913,868  607,942
                
Subordinated
debentures/trust
              
Preferred securities  34,909  33,616  29,678  100,206  88,103
                
Federal Home Loan Bank               
Advances  13,008  18,372  29,747  58,669  92,024
                
TOTAL INTEREST EXPENSE  399,357  366,145  275,450  1,072,743  788,069
                
NET INTEREST INCOME  3,365,284  3,032,862  2,783,021  9,295,233  8,076,233
                
Provisions for loan losses  612,000  385,000  75,000  1,122,000  141,000
                
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES  2,753,284  2,647,862  2,708,021  8,173,233  7,935,233
                
NON-INTEREST INCOME:               
                
Mortgage Banking Fees  410,517  309,057  352,723  1,014,203  963,648
                
Service Charge on Deposits  236,450  221,760  224,161  665,239  652,218
                
Interchange Fees  181,428  185,592  159,230  544,894  475,367
SBA Lending Fees  
128,613
 
-
 
-
 
128,613
 
-
Gain on Bank Owned Life Insurance  
48,265
 
45,406
 
38,184
 
137,557
 
93,390
                
Loan Fees and Charges  53,424  34,732  56,309  130,998  162,223
                
Gain/(Loss) on Trading Accounts  (211)  (5,032)  910  (8,600)  (21,913)
                
Gain/(Loss) on Sale of Investments and Foreclosed Assets  24,327  (3,874)  28,066  20,453  168,268
                
Other  63,446  67,299  45,490  204,690  177,248
                
TOTAL NON-INTEREST INCOME  1,146,259  854,940  905,073  2,838,047  2,670,449
                
NON-INTEREST EXPENSE:               
                
Compensation and Employee Benefits  1,811,219  1,950,892  1,538,730  5,622,158  4,475,640
                
Occupancy, local and state taxes, and Equipment  413,537  424,997  348,396  1,228,846  1,016,271
                
Technology and Information Processing  268,269  253,745  249,244  749,579  692,621
                
Professional Fees  127,491  97,916  89,062  305,541  277,575
                
Regulatory Fees  106,312  71,165  52,527  240,842  155,795
                
Other  451,581  571,762  378,677  1,363,152  1,001,024
                
TOTAL NON-INTEREST EXPENSE  3,178,409  3,370,477  2,656,636  9,510,118  7,618,926
                
INCOME BEFORE INCOME TAXES  721,134  132,325  956,458  1,501,162  2,986,756
                
Income Tax Expense  204,114  7,094  286,903  390,269  904,995
                
NET INCOME  517,020  125,231  669,555  1,110,893  2,081,761
                
PER COMMON SHARE DATA:               
                
Net Earnings  $0.19  $0.05  $0.34  $0.45  $1.10
                
Diluted Net Earnings  $0.19  $0.05  $0.34  $0.45  $1.10
                
Revenue (Net Interest Income and Non-Interest Income)  $1.70  $1.50  $1.83  $4.96  $5.59
                
Dividends Paid  $0.05  $0.05  $0.05  $0.15  $0.147
                
Book Value (Period End)  $15.93  $15.84  $15.39  $15.93  $15.39
                
Book Value Adjusted Net of Other               
Comprehensive income (Period Ended)  $15.84  $15.69  $15.02  $15.84  $15.02
                
RATIOS:               
                
ROA (Annualized Net Income to Average Period Assets)  0.61%  0.16%  1.02%  0.47%  1.11%
                
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)  4.86%  1.23%  8.77%  3.84%  9.82%
                
Net Interest Margin (Average for the Period)  4.39%  4.16%  4.70%  4.30%  4.77%
                
Non-Interest Expense less Non-Interest Income to Average Period               
Total Assets (Annualized)  2.41%  3.14%  2.67%  2.81%  2.63%
                
Efficiency Ratio for the Period  70.45%  86.69%  72.03%  78.38%  70.90%
                
Net Loan Charge-Offs (Recoveries)               
for the Period  $69,856  $94,060  $7,779  $194,505  $(39,592)
to Average Period Net Loans  0.14%  0.21%  0.02%  0.15%  (0.04)%
                
TDR's at Period End  $3,175,034  $3,369,444  $3,248,646  $3,175,034  $3,248,646
to Average Period Net Loans  1.61%  1.91%  2.20%  1.77%  2.24%
                
Non-Performing Assets at Period  $3,430,584  $3,802,411  $2,223,326  3,430,584  $2,223,326
End to Average Period Total Assets  1.03%  1.18%  0.85%  1.08%  0.89%
                
Allowance for Loan Losses at               
Period End  $4,267,899  $3,725,755  $3,421,542  $4,267,899  $3,421,542
to Average Period Net Loans  2.17%  2.11%  2.31%  2.38%  2.36%
to Non-Performing Assets at               
Period End  124.41%  97.98%  153.89%  124.41%  153.89%
                
                

CONSOLIDATED STATEMENT OF CONDITION

          
  Sept. 30,  Sept. 30,     June 30,   
  2017  2016  %  2017  %
  (Unaudited)  (Unaudited)  Change  (Unaudited)  Change
               
               
ASSETS:              
               
Cash and Cash Equivalents (including Interest and Non-Interest Earning Deposits) $25,144,154  $23,505,723  7  $34,141,370  (26)
               
Securities - Held to Maturity 3,405,644  1,960,711  74  3,410,803  -
               
Securities - Available for Sale 86,789,197  70,891,481  22  86,514,148  -
               
Trading Securities 125,225  116,903  7  125,435  -
               
Bank Owned Life Insurance 7,057,131  6,372,998  11  6,508,867  8
               
Net Loans 200,326,778  151,668,049  32  186,466,214  7
               
Accrued Interest Receivable 1,203,375  956,536  26  1,165,431  3
               
Premises and Equipment, Net 11,553,154  11,696,239  (1)  11,695,360  (1)
               
Foreclosed Assets 785,170  129,470  506  851,620  (9)
               
Other Assets 1,536,111  1,412,272  9  1,703,615  (10)
               
 TOTAL ASSETS $337,925,939  $268,710,382  26  $332,582,863  2
               
LIABILITIES:              
               
Deposits 289,418,157  223,078,334  30  283,744,513  2
               
Federal Home Loan Bank Advances 2,000,000  9,405,000  (79)  2,650,000  25
               
Subordinated debentures/trust              
preferred securities 3,093,000  3,093,000  0  3,093,000  0
               
Other Liabilities 1,089,157  1,372,507  (21)  996,006  9
               
 TOTAL LIABILITIES: $295,600,314  $236,948,841  25  $290,483,519  2
               
STOCKHOLDERS' EQUITY:              
               
Common Stock $14,192  $12,872  10  $14,192  -
               
Capital Surplus 22,069,909  12,127,479  82  22,062,244  -
               
Retained Earnings 20,004,420  18,862,684  6  19,620,072  2
               
Other Comprehensive Income (Loss) 237,104  758,506  (69)  402,836  (41)
               
Total Stockholders' Equity 42,325,625  31,761,541  33  42,099,344  1
               
 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $337,925,939  $268,710,382  26%  $332,582,863  2%
               

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On October 12, 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 December 26, 2017 to stockholders of record at the close of business on December 11, 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