SOUTH SAN FRANCISCO, CA--(Marketwired - Apr 29, 2013) - FNB Bancorp (
"During the first quarter of 2013, the Board of Directors approved the closure of our island of Guam office. This office was acquired by the Company in our acquisition of Oceanic Bank that was completed in September 2012. Alternatives to closure, such as a sale to another financial institution, either in whole or in part, were explored. After a considerable due diligence period, the Company was not able to find a suitable buyer and a tentative closure date of June 14, 2013 was established. In connection with the closure of our office on the island of Guam, during the month of March 2013, an accrued 'Stay Bonus' for all the employees of the Guam office was established totaling $78,000. Additionally, an occupancy accrual for the cost of the Guam branch lease through December 31, 2013, the end of the lease term, of $176,000 was also recorded. Together, the cost of employee severance and the cost to accelerate the expense of the Guam lease was $254,000 and this expense is reflected in our 1 st quarter, 2013 operating expenses. The Company intends to retain the loan relationships as well as the Certificate of Deposit customers through their maturity date, and will service those customers from our San Francisco locations, but the checking and savings deposit account holders will not be retained. Overall, the closure of the Guam branch will allow the Company to concentrate our efforts on our operations in San Francisco and on the peninsula," stated Tom McGraw, Chief Executive Officer.
"Our loan portfolio, investment portfolio and deposit portfolio all experienced growth during the first quarter of 2013. Overall, our assets and our deposits grew by 3% during the quarter. Our stockholders' equity increased during the first quarter as well. As we continue to integrate the Oceanic Bank purchase into the operations of the Company, we should begin to realize additional operational efficiencies. Controlling expenses is a management priority in the near term. Our tax equivalent net interest margin decreased by 3 basis points during the first quarter of 2013 compared to the fourth quarter of 2012. The low interest rate environment currently supported by the Federal Open Market Committee of the Federal Reserve Bank has made it difficult for community banks to maintain net interest margin. In order to offset declines experienced in the yield of our earning assets, management has reduced the interest rates we pay our deposit customers. Further declines in our net interest margin in the near term are likely. We are doing everything that we can to effectively manage our balance sheet in this low interest rate environment," continued Mr. McGraw.
"The quality of our loan portfolio continued to improve during the first quarter of 2013. Our total loans past due have declined since December 31, 2012 while at the same time we have increased our allowance for loan losses. Our allowance for loan losses coupled with our non-accreteable discount on purchased impaired loans was 1.7% of our outstanding loans as of March 31, 2013. We continue efforts to work with our borrowers that have experienced difficulty in making their loan payments towards the goal of finding solutions that are mutually beneficial to both our customers and the Company. We want the communities in which we live and do business to grow and prosper, and we take pride in doing our very best to help make that possible," stated Mr. McGraw.
| Financial Highlights: First Quarter, 2013 | ||||||||||||||
| Consolidated Statements of Earnings | Three months ended | Three months ended | Three months ended | Three months ended | ||||||||||
| (in '000s except earnings per share amounts) | March 31, 2013 | Dec 31, 2012 | March 31, 2012 | Dec 31, 2011 | ||||||||||
| Interest income | $ | 9,348 | $ | 9,408 | $ | 7,882 | $ | 8,167 | ||||||
| Interest expense | 682 | 727 | 684 | 744 | ||||||||||
| Net interest income | 8,666 | 8,681 | 7,198 | 7,423 | ||||||||||
| Provision for loan losses | 600 | 633 | 400 | 450 | ||||||||||
| Noninterest income | 1,025 | 1,119 | 1,920 | 1,310 | ||||||||||
| Noninterest expense | 7,739 | 7,557 | 7,053 | 6,771 | ||||||||||
| Interest before income taxes | 1,352 | 1,610 | 1,665 | 1,512 | ||||||||||
| Provision for income taxes | 422 | 264 | 377 | 427 | ||||||||||
| Net earnings | 930 | 1,346 | 1,288 | 1,085 | ||||||||||
| Dividends and discount accretion on preferred stock | 158 | 157 | 186 | - | ||||||||||
| Net earnings available to common stockholders | $ | 772 | $ | 1,189 | $ | 1,102 | $ | 1,085 | ||||||
| Basic earnings per share | $ | 0.21 | $ | 0.32 | $ | 0.30 | $ | 0.29 | ||||||
| Diluted earnings per share | $ | 0.20 | $ | 0.32 | $ | 0.30 | $ | 0.29 | ||||||
| Average assets | $ | 893,982 | $ | 900,571 | $ | 735,438 | $ | 729,771 | ||||||
| Average equity | $ | 95,378 | $ | 95,206 | $ | 87,878 | $ | 85,682 | ||||||
| Return on average assets (annualized) | 0.35 | % | 0.53 | % | 0.60 | % | 0.59 | % | ||||||
| Return on average equity (annualized) | 3.24 | % | 5.00 | % | 5.02 | % | 5.07 | % | ||||||
| Efficiency ratio | 80 | % | 77 | % | 77 | % | 78 | % | ||||||
| Net interest margin (taxable equivalent) | 4.52 | % | 4.55 | % | 4.61 | % | 4.46 | % | ||||||
| Average shares outstanding | 3,714 | 3,693 | 3,686 | 3,685 | ||||||||||
| Average diluted shares outstanding | 3,807 | 3,774 | 3,726 | 3,708 | ||||||||||
| Consolidated Balance Sheets | As of March 31, | As of Dec 31, | As of March 31, | As of Dec 31, | ||||||||
| (in '000s) | 2013 | 2012 | 2012 | 2011 | ||||||||
| Assets: | ||||||||||||
| Cash and cash equivalents | $ | 39,092 | $ | 27,861 | $ | 45,118 | $ | 38,474 | ||||
| Interest-bearing time deposits with other financial institutions | 9,713 | 13,216 | - | - | ||||||||
| Securities available for sale, at fair value | 246,460 | 234,945 | 205,353 | 187,664 | ||||||||
| Loans, net | 546,278 | 541,563 | 447,302 | 443,721 | ||||||||
| Premises, equipment and leasehold improvements, net | 12,634 | 12,706 | 13,042 | 13,227 | ||||||||
| Other real estate owned, net | 6,668 | 6,650 | 1,920 | 2,747 | ||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||
| Other equity securities | 5,338 | 5,464 | 4,580 | 4,608 | ||||||||
| Accrued inrterest receivable | 3,751 | 3,760 | 3,577 | 3,614 | ||||||||
| Prepaid expenses | 1,116 | 1,372 | 1,844 | 2,107 | ||||||||
| Bank owned life insurance | 11,880 | 11,785 | 11,491 | 9,521 | ||||||||
| Other assets | 12,707 | 14,177 | 10,581 | 8,117 | ||||||||
| Total assets | $ | 897,478 | $ | 875,340 | $ | 746,649 | $ | 715,641 | ||||
| Liabilities and stockholders' equity: | ||||||||||||
| Deposits: | ||||||||||||
| Demand and NOW | $ | 255,511 | $ | 253,849 | $ | 216,195 | $ | 202,690 | ||||
| Savings and money market | 372,112 | 343,437 | 327,592 | 310,237 | ||||||||
| Time | 162,802 | 171,066 | 107,904 | 108,851 | ||||||||
| Total deposits | 790,425 | 768,352 | 651,691 | 621,778 | ||||||||
| Accrued expenses and other liabilities | 11,184 | 11,630 | 7,068 | 6,667 | ||||||||
| Total liabilities | 801,609 | 779,982 | 658,759 | 628,445 | ||||||||
| Stockholders' equity | 95,869 | 95,358 | 87,890 | 87,196 | ||||||||
| Total liab. and stockholders' equity | $ | 897,478 | $ | 875,340 | $ | 746,649 | $ | 715,641 | ||||
| Other Financial Information | ||||||||||||
| Allowance for loan losses | $ | 9,357 | $ | 9,124 | $ | 8,287 | $ | 9,897 | ||||
| Nonperforming assets | $ | 19,459 | $ | 19,142 | $ | 21,391 | $ | 12,684 | ||||
| Total gross loans | $ | 555,635 | $ | 550,687 | $ | 455,589 | $ | 453,618 | ||||
| Common shares outstanding | 3,738,000 | 3,699,000 | 3,683,000 | 3,681,000 | ||||||||
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 Website: www.fnbnorcal.com
