SOUTH SAN FRANCISCO, CA--(Marketwired - Oct 29, 2014) - FNB Bancorp (
"During the third quarter of 2014, we were able to grow our loan portfolio, our securities portfolio and our total assets. Our borrowers began to utilize their lines of credit more than they have during the second quarter and real estate prices in the San Francisco Bay Area continued to rise. According to the Zillow Home Value Index, San Francisco home values are up 12.4% for the twelve months ended September 30, 2014. We are carefully watching the valuations currently being provided on our residential and commercial real estate appraisals as valuations surpass the highs before the last recession. Deposit trends during the third quarter were not as favorable. Overall, our deposits were down approximately $8 million or 1% from June 30, 2014 levels. The largest percentage declines were in the certificate of deposit segment of our deposit portfolio as brokered CDs obtained in our Oceanic Bank acquisition continue to mature and not be renewed. Declines were also noted in our savings and money market depository accounts, although at a lower decline rate. Total FHLB advances outstanding at the end of the third quarter were $16 million. Management has and will continue to utilize this low cost funding source when it is prudent to do so," stated Tom McGraw, CEO.
| Financial Highlights: Third Quarter, 2014 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Consolidated Statements of Earnings (in 000s except share and earnings per share amounts) | Three months ended September 30, 2014 | Three months ended September 30, 2013 | Nine months ended September 30, 2014 | Nine months ended September 30, 2013 | |||||||||||||
| Interest income | $ | 9,300 | $ | 9,259 | $ | 27,544 | $ | 28,014 | |||||||||
| Interest expense | 538 | 560 | 1,562 | 1,881 | |||||||||||||
| Net interest income | 8,762 | 8,699 | 25,982 | 26,133 | |||||||||||||
| Provision for loan losses | - | (225 | ) | (75 | ) | (1,335 | ) | ||||||||||
| Noninterest income | 1,041 | 978 | 3,067 | 3,046 | |||||||||||||
| Noninterest expense | 7,055 | 6,950 | 21,107 | 22,074 | |||||||||||||
| Income before income taxes | 2,748 | 2,502 | 7,867 | 5,770 | |||||||||||||
| (Provision for) benefit from income taxes | (925 | ) | 629 | (2,581 | ) | (330 | ) | ||||||||||
| Net earnings | 1,823 | 3,131 | 5,286 | 5,440 | |||||||||||||
| Dividends and discount accretion on preferred stock | - | 251 | 170 | 581 | |||||||||||||
| Net earnings available to common shareholders | $ | 1,823 | $ | 2,880 | $ | 5,116 | $ | 4,859 | |||||||||
| Basic earnings per share | $ | 0.45 | $ | 0.73 | $ | 1.27 | $ | 1.24 | |||||||||
| Diluted earnings per share | $ | 0.44 | $ | 0.71 | $ | 1.23 | $ | 1.21 | |||||||||
| Average assets | $ | 903,222 | $ | 903,868 | $ | 897,247 | $ | 900,794 | |||||||||
| Average equity | $ | 91,455 | $ | 89,728 | $ | 89,738 | $ | 92,994 | |||||||||
| Return on average assets | 0.81 | % | 1.27 | % | 1.14 | % | 0.72 | % | |||||||||
| Return on average equity | 7.97 | % | 12.84 | % | 11.40 | % | 6.97 | % | |||||||||
| Efficiency ratio | 72 | % | 72 | % | 73 | % | 76 | % | |||||||||
| Net interest margin (taxable equivalent) | 4.20 | % | 4.23 | % | 4.23 | % | 4.34 | % | |||||||||
| Average shares outstanding | 4,048 | 3,949 | 4,021 | 3,922 | |||||||||||||
| Average diluted shares outstanding | 4,175 | 4,045 | 4,156 | 4,015 | |||||||||||||
| Financial Highlights: Third Quarter, 2014 | |||||||||||||
| Consolidated Balance Sheets (in '000s) | (Unaudited) As of September 30, 2014 | * As of December 31, 2013 | (Unaudited) As of September 30, 2013 | * As of December 31, 2012 | |||||||||
| Assets: | |||||||||||||
| Cash and cash equivalents | $ | 15,220 | $ | 14,007 | $ | 18,368 | $ | 27,861 | |||||
| Interest-bearing time deposits with other financial institutions | 4,068 | 5,543 | 6,979 | 13,216 | |||||||||
| Securities available for sale, at fair value | 267,924 | 263,988 | 285,610 | 234,945 | |||||||||
| Loans, net | 568,533 | 552,343 | 558,164 | 541,563 | |||||||||
| Premises, equipment and leasehold improvements, net | 12,239 | 12,512 | 12,631 | 12,706 | |||||||||
| Other real estate owned, net | 755 | 5,318 | 6,675 | 6,650 | |||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | |||||||||
| Other equity securities | 5,769 | 5,300 | 5,300 | 5,464 | |||||||||
| Accrued interest receivable | 3,670 | 3,808 | 3,855 | 3,760 | |||||||||
| Prepaid expenses | 444 | 701 | 741 | 1,372 | |||||||||
| Bank owned life insurance | 12,424 | 12,151 | 12,065 | 11,785 | |||||||||
| Other assets | 14,535 | 14,418 | 14,822 | 14,177 | |||||||||
| Total assets | $ | 907,422 | $ | 891,930 | $ | 927,051 | $ | 875,340 | |||||
| Liabilities and stockholders' equity: | |||||||||||||
| Deposits: | |||||||||||||
| Demand and NOW | $ | 284,196 | $ | 279,269 | $ | 263,480 | $ | 253,849 | |||||
| Savings and money market | 393,929 | 370,194 | 387,275 | 343,437 | |||||||||
| Time | 104,031 | 124,152 | 130,369 | 171,066 | |||||||||
| Total deposits | 782,156 | 773,615 | 781,124 | 768,352 | |||||||||
| Federal Home Loan Bank advances | 16,000 | 15,000 | 44,000 | 1,220 | |||||||||
| Note payable | 5,700 | - | - | - | |||||||||
| Accrued expenses and other liabilities | 10,974 | 9,066 | 9,109 | 10,410 | |||||||||
| Total liabilities | 814,830 | 797,681 | 834,233 | 779,982 | |||||||||
| Stockholders' equity | 92,592 | 94,249 | 92,818 | 95,358 | |||||||||
| Total liab. and stockholders' equity | $ | 907,422 | $ | 891,930 | $ | 927,051 | $ | 875,340 | |||||
| * Excerpt from the audited annual financial statements | |||||||||||||
| Other Financial Information | |||||||||||||
| Allowance for loan losses | $ | 10,774 | $ | 9,879 | $ | 9,748 | $ | 9,124 | |||||
| Nonperforming assets | $ | 5,875 | $ | 12,669 | $ | 15,728 | $ | 19,124 | |||||
| Total gross loans | $ | 579,307 | $ | 562,222 | $ | 567,912 | $ | 550,687 | |||||
"During the third quarter, our net interest income and net interest margins increased when compared to the second quarter. The loan to deposit ratio increased to 74% at September 30, 2014 compared to 73% at year end. We are lending when it is prudent to do so, staying true to our conservative underwriting standards rather the increasing lending volume by accepting unwarranted risk into our loan pipeline. We continue to be 'well capitalized' by regulatory capital standards. The Bank's Tier 1 leverage capital ratio was 10.16% at September 30, 2014. The Bank's Tier 1 risk-based capital ratio was 13.05% and our total risk-based capital was 14.30%. We also continue to look for bank acquisitions. A Form 8-K was filed with the SEC on October 23, 2014 which provided additional information concerning our pending acquisition of Valley Community Bank," 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.
Contacts: Tom McGraw Chief Executive Officer (650) 875-4864 Dave Curtis Chief Financial Officer (650) 875-4862 www.fnbnorcal.com
