SOUTH SAN FRANCISCO, CA--(Marketwired - Jul 29, 2013) - FNB Bancorp (
"During the second quarter of 2013, our island of Guam office was closed. This office was acquired by the Company in our acquisition of Oceanic Bank that was completed in September, 2012. Alternatives to closure of this branch office, 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 the office was closed on June 14, 2013. The Company intends to retain the loan relationships as well as the Certificate of Deposit customers through their maturity date, and will service these customers from our Battery Street, San Francisco location. Checking and savings deposit account holders will not be retained. Overall, the closure of the Guam branch office will allow the Company to concentrate our efforts on our operations in San Francisco and on the San Francisco peninsula. The consolidation of our Post Street office into our Battery Street office recently occurred during July, 2013. This action was taken in order to more properly align our cost structure with the low interest environment we find ourselves. The service levels in our branch offices are critically important to us and must be maintained. Any cost reductions that are implemented are done so only after due consideration of our customers and the customer experience," stated Tom McGraw, Chief Executive Officer.
| Financial Highlights: Second Quarter, 2013 | ||||||||||||||
| Consolidated Statements of Earnings | ||||||||||||||
| (in '000s except earnings per share amounts) | ||||||||||||||
| Three months | Three months | Six months | Six months | |||||||||||
| ended | ended | ended | ended | |||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||
| Interest income | $ | 9,317 | $ | 7,878 | $ | 18,665 | $ | 15,760 | ||||||
| Interest expense | 639 | 653 | 1,321 | 1,337 | ||||||||||
| Net interest income | 8,678 | 7,225 | 17,344 | 14,423 | ||||||||||
| Provision for loan losses | (510 | ) | (400 | ) | (1,110 | ) | (800 | ) | ||||||
| Noninterest income | 1,133 | 1,415 | 2,158 | 3,335 | ||||||||||
| Noninterest expense | 7,385 | 6,498 | 15,124 | 13,551 | ||||||||||
| Income before income taxes | 1,916 | 1,742 | 3,268 | 3,407 | ||||||||||
| Provision for income taxes | (537 | ) | (514 | ) | (959 | ) | (891 | ) | ||||||
| Net earnings | 1,379 | 1,228 | 2,309 | 2,516 | ||||||||||
| Dividends and discount accretion on preferred stock | 172 | 157 | 330 | 343 | ||||||||||
| Net earnings available to common shareholders | $ | 1,207 | $ | 1,071 | $ | 1,979 | $ | 2,173 | ||||||
| Basic earnings per share | $ | 0.32 | $ | 0.29 | $ | 0.53 | $ | 0.59 | ||||||
| Diluted earnings per share | $ | 0.32 | $ | 0.29 | $ | 0.52 | $ | 0.58 | ||||||
| Average assets | $ | 904,421 | $ | 750,351 | $ | 899,231 | $ | 742,895 | ||||||
| Average equity | $ | 93,938 | $ | 88,476 | $ | 94,654 | $ | 88,177 | ||||||
| Return on average assets | 0.53 | % | 0.57 | % | 0.44 | % | 0.59 | % | ||||||
| Return on average equity | 5.14 | % | 4.84 | % | 4.18 | % | 4.93 | % | ||||||
| Efficiency ratio | 75 | % | 75 | % | 78 | % | 76 | % | ||||||
| Net interest margin (taxable equivalent) | 4.41 | % | 4.48 | % | 4.44 | % | 4.52 | % | ||||||
| Average shares outstanding | 3,729 | 3,690 | 3,722 | 3,688 | ||||||||||
| Average diluted shares outstanding | 3,813 | 3,752 | 3,810 | 3,739 | ||||||||||
| Financial Highlights: Second Quarter, 2013 | ||||||||||||||
| Consolidated Balance Sheets | ||||||||||||||
| (in '000s) | ||||||||||||||
| As of | As of | As of | As of | |||||||||||
| June 30, | December 31, | June 30, | December 31, | |||||||||||
| 2013 | 2012 | 2012 | 2011 | |||||||||||
| Assets: | ||||||||||||||
| Cash and cash equivalents | $ | 23,698 | $ | 27,861 | $ | 44,856 | $ | 38,474 | ||||||
| Interest-bearing time deposits with other financial institutions | 8,473 | 13,216 | - | - | ||||||||||
| Securities available for sale, at fair value | 281,422 | 234,945 | 203,548 | 187,664 | ||||||||||
| Loans, net | 531,238 | 541,563 | 453,300 | 443,721 | ||||||||||
| Premises, equipment and leasehold improvements, net | 12,699 | 12,706 | 12,916 | 13,227 | ||||||||||
| Other real estate owned, net | 6,675 | 6,650 | 1,923 | 2,747 | ||||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||||
| Other equity securities | 5,300 | 5,464 | 4,603 | 4,608 | ||||||||||
| Accrued interest receivable | 3,886 | 3,760 | 3,621 | 3,614 | ||||||||||
| Prepaid expenses | 718 | 1,372 | 1,609 | 2,107 | ||||||||||
| Bank owned life insurance | 11,975 | 11,785 | 11,594 | 9,521 | ||||||||||
| Other assets | 13,563 | 14,177 | 8,939 | 8,117 | ||||||||||
| Total assets | $ | 901,488 | $ | 875,340 | $ | 748,750 | $ | 715,641 | ||||||
| Liabilities and stockholders' equity: | ||||||||||||||
| Deposits: | ||||||||||||||
| Demand and NOW | $ | 269,369 | $ | 253,849 | $ | 223,341 | $ | 202,690 | ||||||
| Savings and money market | 385,017 | 343,437 | 323,372 | 310,237 | ||||||||||
| Time | 148,414 | 171,066 | 105,130 | 108,851 | ||||||||||
| Total deposits | 802,800 | 768,352 | 651,843 | 621,778 | ||||||||||
| Accrued expenses and other liabilities | 8,597 | 11,630 | 7,586 | 6,667 | ||||||||||
| Total liabilities | 811,397 | 779,982 | 659,429 | 628,445 | ||||||||||
| Stockholders' equity | 90,091 | 95,358 | 89,321 | 87,196 | ||||||||||
| Total liab. and stockholders' equity | $ | 901,488 | $ | 875,340 | $ | 748,750 | $ | 715,641 | ||||||
| Other Financial Information | ||||||||||||||
| Allowance for loan losses | $ | 9,745 | $ | 9,124 | $ | 8,458 | $ | 9,897 | ||||||
| Nonperforming assets | $ | 18,527 | $ | 19,124 | $ | 20,953 | $ | 21,845 | ||||||
| Total gross loans | $ | 540,983 | $ | 550,687 | $ | 461,758 | $ | 453,618 | ||||||
"Our investment portfolio and deposit portfolio experienced growth during the three and six months ended June 30, 2013. Our core deposit balances are at historical highs. Our loan portfolio declined during the second quarter of 2013, due primarily to the repayment of several large commercial real estate loans, yet our loan application pipeline has increased. With the recent uptick in the three, five and ten year U.S. Treasury yields, our loan prepayments are expected to slow during the third quarter of 2013 when compared to the second quarter of 2013. Overall, our assets and our deposits grew by 0.4% during the quarter, despite the closure of our office on the island of Guam. Our stockholders' equity decreased during the second quarter of 2013, due primarily to the redemption of $3,150,000 or 25% of the outstanding Preferred stock - series C issued to the U.S. Treasury as part of their SBLF program. This was the first redemption we have consummated with the U.S. Treasury. As our capital base will allow, the Board has determined that additional redemptions of this type may be in the Bank's best interest. The Oceanic Bank purchase has now been fully integrated into the operations of the Company. Management has taken steps designed to prudently reduce our future noninterest expenses through the consolidation of branch offices while at the same time keeping our focus on maintaining the highest level of customer service. We understand that we must meet or exceed our customers' expectations relative to their banking experience with us. For 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.
Contacts: Tom McGraw Chief Executive Officer (650) 875-4864 Dave Curtis Chief Financial Officer (650) 875-4862 Website: www.fnbnorcal.com
