FPB Financial Corp. Announces June 30, 2013 Results,

HAMMOND, LA--(Marketwired - Jul 23, 2013) -  FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended June 30, 2013.

FPB Financial Corp. reported the following for the six months ended June 30, 2013, and as compared to six months ending June 30, 2012:

• Net Income increased to $1.0 million or 5.7%
• Diluted Net Income per share increased to $2.93 or 5.0%
• Net Interest Income after provision for loan losses increased to $4.1 million or 5.3%
• Non-Interest Income increased to $1.3 million or 0.4%
• Net Loan Charge-Offs decreased to $120,000 or 71.5%
• Dividend paid to common shareholders increased to $127,000 or 9.8%

Other items and per share data of note as of June 30, 2013, compared to June 30, 2012:

• Non-performing Assets decreased to $1.9 million or 53.3%
• Tangible Book Value per share increased to $50.77 or 6.5%
• Total Assets increased to $200.4 million or 6.4%
• Non-Maturity Deposits increased to $121.7 million or 19.2%
• Allowance for Loan Losses increased to $3.3 million or 8.3%

Earnings

Net income for the second quarter of 2013 totaled $502,000, a decrease of 4.6% from $526,000 in the second quarter of 2012. Net income per fully diluted common share was $1.41 down from $1.49 per fully diluted common share earned in the second quarter of 2012. Return on common stockholders' equity (ROE) was 11.0% for the period.

Second quarter earnings when compared to the second quarter of 2012 were positively affected by an $87,000 decrease in provision for loan losses. This was offset by a $54,000 increase in non-interest expenses, primarily due to expenses associated with foreclosed assets and other miscellaneous expenses. Non-interest income decreased by $71,000 in the period primarily due to a gain on sales of investments securities of $216,000 recorded in the 2012 second quarter. Income tax expense decreased to $248,000 in the 2013 period.

In the 2013 first quarter, in excess of $1.0 million of non-accrual loans were collected/paid off; these non-accrual loan pay-offs resulted in the Company reporting an increase of approximately $110,000 of non-accrual pre-tax interest income in the period ended March 31, 2013. The Company did not match this level of non-accrual interest recognition/collections in the 2013 second quarter and does not expect to match the first quarter level in the subsequent quarters during 2013.

Asset Quality

Total non-performing assets at June 30, 2013 decreased $2.1 million, or 53.3% to $1.9 million when compared to June 30, 2012. Total non-performing assets at March 31, 2013 were $2.9 million. The Company's allowance for loan losses increased by $251,000 to $3.3 million compared to June 30, 2012. Total allowance for loan losses were unchanged at $3.3 million this period end compared to March 31, 2013.

Net loan charge-offs for the second quarter totaled $92,000, down from $160,000 in the 2012 second quarter. In the 2013 first quarter the Company's net loan charge-offs were $28,000.

Performing Troubled Debt Restructured (TDR's) as of June 30, 2013 totaled $2.4 million, or a decrease of 23.4% from June 30, 2012. Performing TDR's decreased by $712,000 when compared to March 31, 2013.

Balance Sheet and Capital

Total assets at June 30, 2013 increased to $200.4 million, or 6.4% as compared to $188.2 million at June 30, 2012. The increase in total assets was primarily attributed to an increase of $16.6 million in available-for-sale investment securities, an increase of $4.6 million in held-to-maturity investment securities, and an increase of $1.2 million in net premises and equipment. Cash and cash equivalents increased by $1.2 million in the twelve month period. These increases were offset by an $11.1 million decrease in net loans. Total liabilities increased by 6.5% to $182.4 million primarily due to an increase of $17.9 million in total deposits to $164.4 million from $146.5 million at June 30, 2012 which was offset by a 33.8% decrease in Federal Home Loan Bank advances to $13.8 million at June 30, 2013. Non-interest bearing deposits and total non-maturity deposits increased by 24.2% and 19.2% respectively, in the twelve month period ended June 30, 2013.

Common stockholders' equity increased by a net of $1.0 million, or 6.1% to $18.0 million for the twelve month period ended June 30, 2013, primarily due to an increase of $1.6 million in retained earnings. Other comprehensive income decreased by $621,000 at June 30, 2013 when compared to June 30, 2012. Tangible common stockholders' equity increased to $18.0 million this period.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of June 30, 2013.

Private Placement Offering of Common Stock

FPB Financial Corp. anticipates that it will offer up to 100,000 shares of its common stock in a private placement to persons and entities who qualify as "accredited investor" under federal securities laws at a price of approximately $48 per share. The offering is expected to occur during the third quarter of 2013, although the exact terms and timing of the offering have not yet been determined. The purpose of the expected offering is to fund growth opportunities for Florida Parishes Bank. However, we anticipate that completion of the private placement will be initially dilutive to both book value per share and earnings per share. This release does not constitute an offer to sell the common stock or the solicitation of an offer to buy the common stock.

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, 2013		June 30, 2012		% Change			March 31, 2013		% Change
		(Unaudited)		(Unaudited)					(Unaudited)
Tangible Common Stockholders' Equity		17,979,365		16,773,884		7	%		17,994,379		0	%
Total Common Stockholders' Equity		17,979,365		16,942,288		6			18,072,555		1
Net Loans		113,481,825		124,618,331		(9	)		115,970,100		(2	)
Foreclosed Assets		352,000		868,231		(59	)		801,495		(56	)
Non-Performing Assets (Includes Foreclosed Assets)		1,867,293		3,997,023		(53	)		2,927,287		(36	)
Allowance for Loan Losses		3,269,522		3,018,703		8			3,306,836		(1	)
Total Assets		200,393,782		188,281,443		6			197,856,444		1
Non-Interest Bearing Deposits		35,790,453		28,822,902		24			40,118,217		(11	)
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)		121,664,675		102,034,162		19			119,165,496		2
Brokered Deposits (Included in interest- bearing deposits)		5,687,161		6,809,798		(16	)		6,548,866		(13	)
FHLB Advances		13,791,500		20,847,650		(34	)		13,791,500		0

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months												For the Six Months
			Ended												Ended
			June 30, 2013				March 31, 2013				June 30, 2012				June 30, 2013				June 30, 2012
			(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	1,849,969			$	2,018,946			$	2,057,109			$	3,868,916			$	4,182,683
	Consumer Loans			240,112				236,844				219,407				476,955				441,759
	Commercial Loans			52,018				44,087				59,619				96,105				132,429
	Consumer & Commercial Lines of Credit			49,971				49,489				47,112				99,460				92,847
	Investment Securities and Deposits			195,154				167,584				115,036				362,737				278,138
TOTAL INTEREST AND DIVIDEND INCOME				2,387,224				2,516,950				2,498,283				4,904,173				5,127,856
INTEREST EXPENSE:
	Deposits			175,063				187,387				240,670				362,450				464,624
Federal Home Loan Bank Advances				74,828				86,245				114,873				161,073				260,432
Other				26,752				26,450				28,248				53,202				57,031
TOTAL INTEREST EXPENSE				276,643				300,082				383,791				576,725				782,087
	NET INTEREST INCOME			2,110,581				2,216,868				2,114,492				4,327,448				4,345,769
Provisions for loan losses				55,000				126,000				142,000				181,000				407,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,055,581				2,090,868				1,972,492				4,146,448				3,938,769
NON-INTEREST INCOME:
Service charge on deposits				221,105				213,645				178,249				434,750				355,196
Mortgage Banking Fees				203,925				187,127				177,774				391,052				363,834
Interchange Fees				141,327				131,726				107,070				273,053				208,973
Loan Fees and Charges				40,905				42,330				44,520				83,235				96,004
Gain/(Loss) on Sale of Investments and Foreclosed Assets				17,060				(14,627	)			216,325				2,433				188,334
Gain/(Loss) on Trading Accounts				14,657				1,764				(22,330	)			16,421				(6,434	)
Other				14,339				55,598				22,433				69,937				59,847
TOTAL NON-INTEREST INCOME				653,318				617,563				724,041				1,270,881				1,265,754
NON-INTEREST EXPENSE:
Compensation and EmployeeBenefits				1,092,741				1,077,839				1,093,820				2,170,580				2,164,471
Occupancy, Property Taxes, and Equipment				227,662				229,444				209,432				457,105				418,028
Technology and Information Processing				159,268				159,249				150,121				318,518				287,384
Regulatory Fees				43,218				67,655				82,358				110,873				164,145
Professional Fees				74,631				42,225				80,987				116,856				135,517
Foreclosed Assets				45,150				23,361				15,437				68,510				46,450
Other				316,095				296,607				269,352				612,702				519,936
TOTAL NON-INTEREST EXPENSE				1,958,765				1,896,380				1,901,507				3,855,144				3,735,931
INCOME BEFORE INCOME TAXES				750,134				812,051				795,026				1,562,185				1,468,592
Income Tax Expense				248,377				272,706				269,497				521,083				483,939
NET INCOME				501,757				539,345				525,529				1,041,102				984,653
PER COMMON SHARE DATA:
Net Earnings			$	1.42			$	1.52			$	1.49			$	2.94			$	2.80
Diluted Net Earnings			$	1.41			$	1.52			$	1.49			$	2.93			$	2.79
Revenue (Net Interest Income and Non-Interest Income)			$	7.81			$	8.01			$	8.07			$	15.81			$	15.96
Dividends Paid			$	0.18			$	0.18			$	0.17			$	0.36			$	0.33
Book Value Period End			$	50.77			$	51.03			$	48.16			$	50.77			$	48.16
Tangible Book Value Period End			$	50.77			$	50.81			$	47.68			$	50.77			$	47.68
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				1.01	%			1.10	%			1.12	%			1.06	%			1.07	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				11.03	%			12.21	%			12.58	%			11.61	%			11.91	%
Net Interest Margin (Average) for the period				4.66	%			4.98	%			4.92	%			4.82	%			5.17	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.62	%			2.62	%			2.51	%			2.62	%			2.69	%
Efficiency Ratio for the Period				70.87	%			66.91	%			66.99	%			68.86	%			66.58	%
Net Loan Charge-Offs (Recoveries) for the			$	92,314			$	27,979			$	159,774			$	120,293			$	421,579
Period to Average Period Net Loans (Annualized)				0.33	%			0.10	%			0.52	%			0.21	%			0.68	%
TDRs (Performing) at Period End			$	2,392,749			$	3,104,363			$	3,124,881			$	2,392,749			$	3,124,881
to Average Period Net Loans				2.10	%			2.63	%			2.51	%			2.06	%			2.50	%
Non-Performing Assets at Period			$	1,867,293			$	2,927,287			$	3,997,023			$	1,867,293			$	3,997,023
End to Average Period Total Assets				0.94	%			1.48	%			2.12	%			0.94	%			2.16	%
Allowance for Loan Losses at Period End			$	3,269,522			$	3,306,836			$	3,018,703			$	3,269,522			$	3,018,703
to Average Period Net Loans				2.87	%			2.80	%			2.43	%			2.82	%			2.42	%
to Non-Performing Assets at Period End				175.10	%			113.00	%			75.52	%			175.10	%			75.52	%

CONSOLIDATED STATEMENTS OF CONDITION
			June 30, 2013				June 30, 2012				% Change			March 31, 2013				% Change
			(Unaudited)				(Unaudited)							(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	9,792,361			$	8,637,795			12			$	14,221,475			(31	)
Certificates of Deposit				2,986,000				2,986,000			0				4,235,000			(29	)
Securities - Held to Maturity				4,569,486				0			-				3,076,151			49
Securities - Available for Sale				57,750,322				41,175,614			40				48,376,629			19
Trading Securities				206,358				192,189			7				191,701			8
Net Loans				113,481,825				124,618,331			(9	)			115,970,100			(2	)
Accrued Interest Receivable				803,197				539,249			49				708,656			13
Premises and Equipment, Net				8,989,589				7,789,866			15				8,953,607			0
Foreclosed Assets				352,000				868,231			(59	)			801,495			(56	)
Other Assets				1,462,644				1,474,168			(1	)			1,321,630			11
	TOTAL ASSETS		$	200,393,782			$	188,281,443			6			$	197,856,444			1
LIABILITIES:
Deposits				164,418,216				146,481,994			12				162,036,238			1
Federal Home Loan Bank Advances				13,791,500				20,847,650			(34	)			13,791,500			0
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				1,111,701				916,511			21				863,151			29
	TOTAL LIABILITIES		$	182,414,417			$	171,339,155			6			$	179,783,889			1
STOCKHOLDERS' EQUITY:
Common Stock			$	4,437			$	4,433			0			$	4,437			0
Capital Surplus				6,335,706				6,279,173			1				6,335,706			0
Retained Earnings				13,888,057				12,293,151			13				13,450,044			3
Unearned Compensation				(12,340	)			(19,405	)		36				(12,340	)		0
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				(453,027	)			168,404			-				78,176			-
Total Stockholders' Equity				17,979,365				16,942,288			6				18,072,555			(1	)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	200,393,782			$	188,281,443			6	%		$	197,856,444			1	%

Fritz W. Anderson, II, Chairman of the Board, announced today that, "On July 11, 2013, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.18 per share will be paid on September 25, 2013 to stockholders of record at the close of business on September 10, 2013."