First National Bank of Northern California Reports First Quarter 2016 Earnings of $0.55 per Diluted Share

SOUTH SAN FRANCISCO, CA--(Marketwired - Apr 27, 2016) - 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 first quarter of 2016 of $2,567,000 or $0.55 per diluted share, compared to net earnings available to common shareholders of $1,799,000 or $0.39 per diluted share for the first quarter of 2015.

The first quarter of 2016 operating results, when compared to the same period a year ago, were positively affected by the completion of our America California Bank ("ACB") acquisition that occurred in September, 2015. The ACB acquisition provided an opportunity for the Company to leverage our balance sheet and increase our interest earning assets and interest bearing liabilities, without a significant increase in operating expense. During the first quarter of 2016, our net interest income was $10.7 million, an increase of $483,000 from the fourth quarter of 2015.

"During the first quarter of 2016, the Company was able to grow our loans, net of allowance, by $11.2 million. This growth was achieved through our internal loan origination efforts. Also during the first quarter of 2016 we were able to increase our combined DDA and NOW deposit accounts by $13.2 million. The combination of all these things are what helped us to increase our net interest income during the quarter. Comparing the first quarter of 2016 with the fourth quarter of 2015, we were able to increase noninterest income slightly above fourth quarter levels, but noninterest expenses were significantly reduced due to the payment of non-recurring post acquisition expenses during the fourth quarter of 2015," stated CEO Tom McGraw.

"During the first quarter of 2016, we were able to reduce our non-accrual loans from levels experienced at year-end. Nonperforming assets were also reduced from levels experienced at year-end. The Bank has worked hard to adhere to prudent underwriting standards as we continue to grow our loan portfolio. Our allowance for loan losses has remained relatively constant during the quarter. The first quarter provision for loan and lease losses was $75,000 and management believes the level of reserves are sufficient to meet expected losses inherent in our loan portfolio at March 31, 2016," continue Tom McGraw.

CONSOLIDATED BALANCE SHEETS					(Unaudited)
(Dollars In Thousands)					As of
					March 31,
					2016			2015
ASSETS
	Cash and due from banks				$	37,737		$	30,640
	Interest-bearing time deposits with financial institutions					205			2,783
	Securities available for sale, at fair value					329,396			264,499
	Loans, net of deferred loan fees and allowance for loan losses					733,991			575,606
	Bank Premises, equipment and leasehold improvements, net					10,320			10,685
	Bank owned life insurance					15,946			12,594
	Other equity securities					6,756			5,773
	Accrued interest receivable					4,603			3,744
	Other real estate owned					1,055			770
	Goodwill					4,580			1,841
	Prepaid expenses					945			1,016
	Other assets					15,444			12,402
		TOTAL ASSETS			$	1,160,978		$	922,353
LIABILITIES
	Deposits:
		Demand, noninterest bearing			$	265,947		$	222,400
		Demand, interest bearing				113,337			90,914
		Savings and money market				526,557			384,799
		Time				124,410			106,511
			Total Deposits			1,030,251			804,624
	Note payable					4,800			5,400
	Accrued expenses and other liabilities					17,230			12,292
			Total Liabilities			1,052,281			822,316
STOCKHOLDERS' EQUITY
	Common stock, no par value:					75,240			67,242
	Retained Earnings					29,666			29,944
	Accumulated other comprehensive earnings, net of tax					3,791			2,851
		Total Stockholders' Equity				108,697			100,037
		TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	1,160,978		$	922,353

CONSOLIDATED STATEMENTS OF EARNINGS				(Unaudited)
(Dollars In Thousands, Except Per Share Amounts)				Three Months Ended							Twelve Months Ended
				March 31,							December 31,
				2016				2015			2015				2014
INTEREST INCOME
	Interest and fees on loans			$	9,871			$	7,710		$	33,235			$	31,355
	Interest on dividends and securities				1,685				1,344			6,008				5,423
	Interest on deposits with other financial institutions				1				14			39				81
		Total interest income			11,557				9,068			39,282				36,859
INTEREST EXPENSE
	Deposits				783				454			2,359				1,884
	Federal Home Loan Bank advances				8				1			9				17
	Interest on note payable				57				59			229				192
		Total interest expense			848				514			2,597				2,093
NET INTEREST INCOME					10,709				8,554			36,685				34,766
	Provision for (recovery of) loan losses				75				75			(305	)			(1,020	)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES					10,634				8,479			36,990				35,786
NONINTEREST INCOME
	Service charges				621				611			2,501				2,548
	Gain on sale of premises				-				-			-				2,085
	Net gain on sale of available-for-sale securities				184				69			339				138
	Earnings on bank owned life insurance				100				84			364				359
	Break-up fee from terminated definitive agreement				-				-			-				500
	Other income				237				314			1,292				959
		Total Noninterest Income			1,142				1,078			4,496				6,589
NONINTEREST EXPENSES
	Salaries and employee benefits				4,938				4,302			18,523				16,731
	Occupancy expense				631				668			2,517				2,773
	Equipment expense				434				405			1,926				1,624
	Professional fees				387				387			1,471				1,845
	FDIC assessment				150				150			600				655
	Telephone, postage, supplies				295				289			1,074				1,250
	Advertising expense				117				99			500				414
	Data processing expense				192				134			1,076				572
	Low income housing expense				71				71			283				439
	Surety insurance				87				88			381				278
	Director fees				72				72			288				252
	Gain on sale of other real estate owned				-				-			-				(220	)
	Other real estate owned (income) expense				(10	)			-			4				87
	Other expenses				423				278			1,282				1,168
		Total Noninterest Expense			7,787				6,943			29,925				27,868
EARNINGS BEFORE PROVISION FOR INCOME TAXES					3,989				2,614			11,561				14,507
	Provision for income taxes				1,422				815			3,364				5,098
NET EARNINGS					2,567				1,799			8,197				9,409
	Dividends and discount accretion on preferred stock				-				-			-				170
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS				$	2,567			$	1,799		$	8,197			$	9,239
Per Share Data:
	Basic earnings per share available to common stockholders			$	0.56			$	0.40		$	1.82			$	2.08
	Diluted earnings per share available to common stockholders			$	0.55			$	0.39		$	1.77			$	2.02
	Cash dividends declared			$	683			$	555		$	2,447			$	1,780
	Average shares outstanding				4,550				4,487			4,516				4,444
	Average diluted shares outstanding				4,687				4,623			4,644				4,585

FINANCIAL HIGHLIGHTS											(Extracted from
(Dollars In Thousands)											audited annual
			(Unaudited)								financial statements)
			Three Months Ended								Twelve Months Ended
			March 31,								December 31,
			2016				2015				2015				2014
AVERAGE BALANCES:
	Total Assets		$	1,146,493			$	919,313			$	1,010,435			$	901,533
	Total Loans			743,282				587,903				629,814				572,070
	Total Earning Assets			1,072,790				848,925				923,700				840,360
	Total Deposits			1,012,268				801,718				890,369				785,481
	Total Stockholder's Equity			106,219				98,140				100,621				90,938
SELECTED PERFORMANCE DATA
	Annualized return on average assets			0.90	%			0.78	%			0.81	%			1.02	%
	Annualized return on average equity			9.67	%			7.33	%			8.15	%			10.16	%
	Net interest margin (taxable equivalent)			4.14	%			4.17	%			4.06	%			4.21	%
	Average loans as a percent of average deposits			73.43	%			73.33	%			70.70	%			72.83	%
	Average total stockholders' equity as a % of average total assets			9.26	%			10.68	%			9.96	%			10.09	%
	Annualized common dividend payout ratio			26.61	%			30.85	%			29.85	%			19.27	%

NON-PERFORMING ASSETS							(Extracted from
(Dollars In Thousands)							audited annual
		(Unaudited)				financial statements)				(Unaudited)				(Unaudited)				(Unaudited)
											As of
			March 31,				December 31,				September 30,				June 30,				March 31,
			2016				2015				2015				2015				2015
Non-accrual loans				6,882				7,915				5,192				6,020				5,923
Other real estate owned				1,055				1,026				838				806				770
	Total non-performing assets			7,937				8,941				6,030				6,826				6,693
Loan loss reserve			$	9,943			$	9,970			$	9,940			$	9,836			$	9,744
Non-accrual loans/Gross loans				0.92	%			1.08	%			0.73	%			1.03	%			1.01	%
Loan loss reserves/Gross loans				1.33	%			1.36	%			1.40	%			1.69	%			1.66	%

CONSOLIDATED BALANCE SHEETS								(Extracted from
(Dollars In Thousands)								audited annual
				(Unaudited)				financial statements)		(Unaudited)				(Unaudited)			(Unaudited)
											As of
					March 31,			December 31,			September 30,			June 30,			March 31,
					2016			2015			2015			2015			2015
ASSETS
	Cash and due from banks				$	37,737		$	12,314		$	40,282		$	91,662		$	30,640
	Interest-bearing time deposits with financial institutions					205			205			1,246			2,138			2,783
	Securities available for sale, at fair value					329,396			329,207			315,560			295,171			264,499
	Loans, net of deferred loan fees and allowance for loan losses					733,991			722,747			696,888			571,665			575,606
	Bank Premises, equipment and leasehold improvements, net					10,320			10,202			10,326			10,527			10,685
	Bank owned life insurance					15,946			15,845			15,742			12,681			12,594
	Other equity securities					6,756			6,748			6,748			6,069			5,773
	Accrued interest receivable					4,603			4,511			4,326			3,909			3,744
	Other real estate owned					1,055			1,026			838			806			770
	Goodwill					4,580			4,580			4,580			1,841			1,841
	Prepaid expenses					945			997			877			922			1,016
	Other assets					15,444			15,967			14,044			12,437			12,402
		TOTAL ASSETS			$	1,160,978		$	1,124,349		$	1,111,457		$	1,009,828		$	922,353
LIABILITIES
	Deposits:
		Demand, noninterest bearing			$	265,947		$	263,822		$	262,206		$	249,420		$	222,400
		Demand, interest bearing				113,337			102,304			84,682			101,693			90,914
		Savings and money market				526,557			491,633			512,534			437,092			384,799
		Time				124,410			125,430			129,943			104,935			106,511
			Total Deposits			1,030,251			983,189			989,365			893,140			804,624
	Federal Home Loan Bank advances					-			17,000			-			-			-
	Note payable					4,800			4,950			5,100			5,250			5,400
	Accrued expenses and other liabilities					17,230			15,048			13,302			11,001			12,292
			Total Liabilities			1,052,281			1,020,187			1,007,767			909,391			822,316
STOCKHOLDERS' EQUITY
	Common stock, no par value:					75,240			74,805			67,852			67,597			67,242
	Retained Earnings					29,666			27,816			33,046			31,452			29,944
	Accumulated other comprehensive earnings, net of tax					3,791			1,541			2,792			1,388			2,851
			Total Stockholders' Equity			108,697			104,162			103,690			100,437			100,037
			TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY		$	1,160,978		$	1,124,349		$	1,111,457		$	1,009,828		$	922,353

CONSOLIDATED STATEMENTS OF INCOME				(Unaudited)
(Dollars In Thousands, Except Per Share Amounts)				Three Months Ended
				March 31,				December 31,				September 30,			June 30,				March 31,
				2016				2015				2015			2015				2015
INTEREST INCOME
	Interest and fees on loans			$	9,871			$	9,361			$	8,309		$	7,855			$	7,710
	Interest on dividends and securities				1,685				1,657				1,575			1,432				1,344
	Interest on deposits with other financial institutions				1				3				9			13				14
		Total interest income			11,557				11,021				9,893			9,300				9,068
INTEREST EXPENSE
	Deposits				783				734				635			538				454
	Federal Home Loan Bank advances				8				7				1			-				1
	Interest on note payable				57				56				57			57				59
		Total interest expense			848				797				693			595				514
NET INTEREST INCOME					10,709				10,224				9,200			8,705				8,554
	Provision for (recovery of) loan losses				75				(530	)			75			75				75
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES					10,634				10,754				9,125			8,630				8,479
NONINTEREST INCOME
	Service charges				621				647				618			627				611
	Net gain on sale of available-for-sale securities				184				89				29			152				69
	Earnings on bank owned life insurance				100				103				90			87				84
	Other income				237				290				287			401				314
		Total Noninterest Income			1,142				1,129				1,024			1,267				1,078
NONINTEREST EXPENSES
	Salaries and employee benefits				4,938				6,010				4,100			4,111				4,302
	Occupancy expense				631				611				592			646				668
	Equipment expense				434				393				718			410				405
	Professional fees				387				396				334			354				387
	FDIC assessment				150				150				150			150				150
	Telephone, postage, supplies				295				292				237			256				289
	Advertising expense				117				119				112			170				99
	Data processing expense				192				136				659			147				134
	Low income housing expense				71				71				70			71				71
	Surety insurance				87				83				122			88				88
	Director fees				72				72				72			72				72
	Other real estate owned (income) expense				(10	)			10				-			(6	)			-
	Other expenses				423				371				313			320				278
		Total Noninterest Expense			7,787				8,714				7,479			6,789				6,943
EARNINGS BEFORE PROVISION FOR INCOME TAXES					3,989				3,169				2,670			3,108				2,614
	Provision for income taxes				1,422				1,081				431			1,037				815
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS				$	2,567			$	2,088			$	2,239		$	2,071			$	1,799

			(Unaudited)
			Three Months Ended
			March 31,				December 31,				September 30,				June 30,				March 31,
			2016				2015				2015				2015				2015
Per Share Data:
	Basic earnings per share available to common stockholders		$	0.56			$	0.47			$	0.49			$	0.46			$	0.40
	Diluted earnings per share available to common stockholders		$	0.55			$	0.45			$	0.48			$	0.45			$	0.39
	Cash dividends declared		$	683			$	648			$	646			$	559			$	555
	Average shares outstanding			4,550				4,487				4,524				4,511				4,487
	Average diluted shares outstanding			4,687				4,623				4,643				4,636				4,623
SELECTED PERFORMANCE DATA
	Annualized return on average assets			0.90	%			0.91	%			0.86	%			0.87	%			0.78	%
	Annualized return on average equity			9.67	%			8.51	%			8.88	%			8.31	%			7.33	%
	Net interest margin (taxable equivalent)			4.14	%			4.17	%			4.00	%			4.14	%			4.17	%
	Average loans as a percent of average deposits			73.43	%			71.11	%			67.72	%			70.63	%			73.33	%
	Average total stockholders' equity as a % of average total assets			9.26	%			10.68	%			9.69	%			10.46	%			10.68	%
	Annualized common dividend payout ratio			26.61	%			31.03	%			28.85	%			26.99	%			30.85	%

LOANS							(Extracted from
(Dollars In Thousands)							audited annual
		(Unaudited)				financial statements)				(Unaudited)				(Unaudited)				(Unaudited)
											As of
			March 31,				December 31,				September 30,				June 30,				March 31,
			2016				2015				2015				2015				2015
Real Estate Loans:
	Construction		$	42,465			$	44,816			$	35,868			$	32,648			$	34,237
	Commercial			411,999				399,993				394,090				330,303				322,414
	Multi family			59,993				63,597				63,928				51,613				53,703
	Residential			173,437				171,964				172,280				127,900				128,105
Commercial & industrial loans				55,694				52,033				39,843				37,745				45,589
Consumer loans				1,675				1,574				1,497				1,696				1,697
	Gross Loans			745,263				733,977				707,506				581,905				585,745
Net deferred loan fees				(1,329	)			(1,260	)			(678	)			(404	)			(395	)
Allowance for loan losses				(9,943	)			(9,970	)			(9,940	)			(9,836	)			(9,744	)
	NET LOANS		$	733,991			$	722,747			$	696,888			$	571,665			$	575,606

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.