SOUTH SAN FRANCISCO, CA--(Marketwired - Jul 30, 2014) - FNB Bancorp (OTCQB: FNBG), parent company of First National Bank of Northern California (the "Bank"), today announced net earnings available to common shareholders for the second quarter of 2014 of $1,629,000 or $0.39 per diluted share, compared to net earnings available to common shareholders of $1,207,000 or $0.30 per diluted share for the second quarter of 2013. During the second quarter of 2014, FNB Bancorp signed a definitive agreement and submitted an application to the Office of the Comptroller of the Currency to purchase Valley Community Bank in an all stock transaction. This acquisition is expected to close during the fourth quarter of 2014.
"During the second quarter of 2014, the Bank experienced strong deposit growth. Most of the higher rate interest-bearing brokered time deposits acquired in our Oceanic Bank acquisition have matured. Overall, our deposit portfolio has performed in line with expectations, with reductions in certificates of deposit more than offset by increases in DDA, NOW and MMDA accounts. During the second quarter of 2014, there was a decrease of $18,000,000 in our outstanding wholesale borrowings obtained from the Federal Home Loan Bank, which totaled $7,000,000 as of June 30, 2014. The Bank intends to use and repay outstanding borrowings as needed in order to stay fully invested in our loan and investment portfolios in the near term. Loan originations slowed during the second quarter of 2014 in comparison to the first quarter of the year, but yields have held steady. During the second quarter of 2014, the Bank realized a $1.1 million recovery from a single credit relationship that was credited to the Bank's Allowance for Loan Loss, giving us further evidence that the worst of the credit issues caused by the last recession are now behind us," stated Tom McGraw, Chief Executive Officer.
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| Financial Highlights: Second Quarter, 2014 |
|
(Unaudited) |
|
Consolidated Statements of Earnings
(in '000s except share and earnings per share amounts) |
|
Three months
ended
June 30,
2014 |
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|
Three months
ended
June 30,
2013 |
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|
Six months
ended
June 30,
2014 |
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|
Six months
ended
June 30,
2013 |
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|
|
|
|
| Interest income |
|
$ |
9,267 |
|
|
$ |
9,366 |
|
|
$ |
18,244 |
|
|
$ |
18,755 |
|
| Interest expense |
|
|
(555 |
) |
|
|
(639 |
) |
|
|
(1,024 |
) |
|
|
(1,321 |
) |
| |
Net interest income |
|
|
8,712 |
|
|
| 8,727 |
|
|
|
17,220 |
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|
|
17,434 |
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| Provision for loan losses |
|
|
- |
|
|
|
(510 |
) |
|
|
(75 |
) |
|
|
(1,110 |
) |
| Noninterest income |
|
|
980 |
|
|
|
1,084 |
|
|
|
2,026 |
|
|
|
2,068 |
|
| Noninterest expense |
|
|
(7,210 |
) |
|
|
(7,385 |
) |
|
|
(14,052 |
) |
|
|
(15,124 |
) |
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Income before provision for income taxes |
|
|
2,482 |
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|
|
1,916 |
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|
|
5,119 |
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|
|
3,268 |
|
| Provision for income tax |
|
|
(853 |
) |
|
|
(537 |
) |
|
|
(1,656 |
) |
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|
(959 |
) |
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Net earnings |
|
|
1,629 |
|
|
|
1,379 |
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|
|
3,463 |
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|
| 2,309 |
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Dividends and discount accretion on preferred stock |
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|
- |
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|
|
(172 |
) |
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|
(170 |
) |
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|
(330 |
) |
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Net earnings available to common shareholders |
|
$ |
1,629 |
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|
$ |
1,207 |
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$ |
3,293 |
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|
$ |
1,979 |
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| Basic earnings per share |
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$ |
0.40 |
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|
$ |
0.31 |
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$ |
0.82 |
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$ |
0.51 |
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| Diluted earnings per share |
|
$ |
0.39 |
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|
$ |
0.30 |
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$ |
0.80 |
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$ |
0.49 |
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| Average assets |
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$ |
898,817 |
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$ | 904,421 |
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$ |
894,211 |
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$ |
899,231 |
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| Average equity |
|
$ |
89,063 |
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|
$ |
93,938 |
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$ |
88,863 |
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$ |
94,654 |
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| Return on average assets (annualized) |
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|
0.72 |
% |
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|
0.53 |
% |
|
|
0.74 |
% |
|
|
0.44 |
% |
| Return on average equity (annualized) |
|
|
7.32 |
% |
|
|
5.14 |
% |
|
|
7.41 |
% |
|
|
4.18 |
% |
| Efficiency ratio |
|
|
74 |
% |
|
|
75 |
% |
|
|
73 |
% |
|
|
78 |
% |
| Net interest margin (taxable equivalent) |
|
|
4.11 |
% |
|
|
4.39 |
% |
|
|
4.25 |
% |
|
|
4.41 |
% |
| Average shares outstanding |
|
|
4,029 |
|
|
|
3,919 |
|
|
|
4,007 |
|
|
|
3,911 |
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| Average diluted shares outstanding |
|
|
4,159 | |
|
|
4,003 |
|
|
|
4,142 |
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|
|
4,000 |
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Financial Highlights: Second Quarter, 2014
Consolidated Balance Sheets
(in '000s) |
|
(Unaudited)
As of
June 30,
2014 |
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|
*
As of
December 31,
2013 |
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|
(Unaudited)
As of
June 30,
2013 |
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*
As of
December 31,
2012 |
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Assets: |
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| Cash and cash equivalents |
| $ |
21,682 |
|
|
$ |
14,007 |
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|
$ |
23,698 |
|
|
$ |
27,861 |
|
| Interest-bearing time deposits with other financial institutions |
|
|
4,461 |
|
|
|
5,543 |
|
|
|
8,473 |
|
|
|
13,216 |
|
| Securities available for sale, at fair value |
|
|
267,795 |
|
|
|
263,988 |
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|
|
281,422 |
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|
|
234,945 |
|
| Loans, net |
|
|
560,432 |
|
|
|
552,343 |
|
|
|
531,238 |
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|
|
541,563 |
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| Premises, equipment and leasehold improvements, net |
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|
12,429 |
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|
12,512 |
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|
|
12,699 |
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|
|
12,706 |
|
| Other real estate owned, net |
|
|
754 |
|
|
|
5,318 |
|
|
|
6,675 |
|
|
|
6,650 |
|
| Goodwill |
|
|
1,841 |
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|
|
1,841 |
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|
|
1,841 |
|
|
|
1,841 |
|
| Other equity securities | |
|
5,576 |
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|
|
5,300 |
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|
|
5,300 |
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|
|
5,464 |
|
| Accrued interest receivable |
|
|
3,674 |
|
|
|
3,808 |
|
|
|
3,886 |
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|
|
3,760 |
|
| Prepaid expenses |
|
|
504 |
|
|
|
701 |
|
|
|
718 |
|
|
|
1,372 |
|
| Bank owned life insurance |
|
|
12,337 |
|
|
|
12,151 |
|
|
|
11,975 |
|
|
|
11,785 |
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| Other assets |
|
|
13,945 |
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|
|
14,418 |
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|
|
13,563 |
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|
|
14,177 |
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| |
Total assets |
|
$ |
905,430 |
|
|
$ |
891,930 |
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|
$ |
901,488 |
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|
$ |
875,340 |
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Liabilities and stockholders' equity: |
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| Deposits: |
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|
|
|
|
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|
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| Demand and NOW |
|
$ |
286,017 |
|
|
$ |
279,269 |
|
|
$ |
269,369 |
|
|
$ |
253,849 |
|
| Savings and money market |
|
|
397,457 |
|
|
|
370,194 |
|
|
|
385,017 |
|
|
|
343,437 |
|
| Time |
|
|
106,748 |
|
|
|
124,152 |
|
|
|
148,414 |
|
|
|
171,066 |
|
| |
Total deposits |
|
|
790,222 |
|
|
|
773,615 |
|
|
|
802,800 |
|
|
|
768,352 |
|
| Federal Home Loan Bank advances |
|
|
7,000 |
|
|
|
15,000 |
| |
|
- |
|
|
|
- |
|
| Note payable |
|
|
5,850 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Accrued expenses and other liabilities |
|
|
11,215 |
|
|
|
9,066 |
|
|
|
8,597 |
|
|
|
11,630 |
|
| |
Total liabilities |
|
|
814,287 |
|
|
|
797,681 |
|
|
|
811,397 |
|
|
|
779,982 |
|
| Stockholders' equity |
|
|
91,143 |
|
|
|
94,249 |
|
|
|
90,091 |
|
|
|
95,358 |
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| |
Total liab. and stockholders' equity |
|
$ |
905,430 |
|
|
$ |
891,930 |
|
|
$ |
901,488 |
|
|
$ |
875,340 |
|
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| |
| * Taken from the audited annual financial statements |
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| Other Financial Information |
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|
|
|
|
| Allowance for loan losses |
|
$ |
10,859 |
|
|
$ |
9,879 |
|
|
$ |
9,745 |
|
|
$ |
9,124 |
|
| Nonperforming assets |
|
$ |
6,217 |
|
|
$ |
12,669 |
|
|
$ |
18,527 |
|
|
$ |
19,124 |
|
| Total gross loans |
|
$ |
571,291 |
|
|
$ |
562,222 |
|
|
$ |
540,983 |
|
|
$ |
550,687 |
|
| |
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"During the second quarter, the Bank continued to improve our capital position through the retention of earnings, even after an increase of $0.01 per share in the quarterly cash dividend declared to $0.11 per share. Total assets grew at an annualized rate of less than 2% during the quarter which helped the Bank improve our Tier 1 leverage capital ratio to 10.06% as of June 30, 2014. The Bank remains 'well capitalized' in all regulatory capital calculations and we have sufficient capital resources to be able to pursue potential acquisitions that may benefit the bank in this environment. To be successful, we understand that we must continually meet or exceed our customers' expectations. For over 50 years, we have built our organization around the idea that we must earn our customers' business," continued CEO Tom McGraw.
Cautionary Statement: This release contains certain forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those stated herein. Management's assumptions and projections are based on their anticipation of future events and actual performance may differ materially from those projected. Risks and uncertainties which could impact future financial performance include, among others, (a) competitive pressures in the banking industry; (b) changes in the interest rate environment; (c) general economic conditions, either nationally or regionally or locally, including fluctuations in real estate values; (d) changes in the regulatory environment; (e) changes in business conditions or the securities markets and inflation; (f) possible shortages of gas and electricity at utility companies operating in the State of California, and (g) the effects of terrorism, including the events of September 11, 2001, and thereafter, and the conduct of war on terrorism by the United States and its allies. Therefore, the information set forth herein, together with other information contained in the periodic reports filed by FNB Bancorp with the Securities and Exchange Commission, should be carefully considered when evaluating its business prospects. FNB Bancorp undertakes no obligation to update any forward-looking statements contained in this release.