FPB Financial Corp. Announces 2017 First Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwired - April 26, 2017) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank (FPB), announced financial results for the 2017 first quarter ended March 31, 2017.

Balance Sheet and Capital

Total Common Stockholders' Equity increased by a net of $12.8 million, or 47.0% to $40.0 million for the twelve months ended March 31, 2017. This was primarily due to the sale of 499,113 shares of common stock in a private placement on March 31, 2017. The common shares were sold at a per share price of $16.75 producing gross proceeds of $8.4 million. 166,371 warrant shares were authorized in connection with the March 31, 2017 sale of common shares, the warrants which are convertible into common shares were authorized at a conversion price of $16.75 per share. The warrant holders have until March 31, 2019 to exercise and convert their warrants into common shares. The Company anticipates selling up to 100,887 common shares at a price of $16.75 per share in the 2017 second quarter. Should these shares be sold the gross proceeds would total $1.7 million and an additional 33,629 of warrant shares will be authorized with the same terms and expiration date of March 31, 2019. The net proceeds from this common stock issue will be used to fund business development and growth opportunities on both the North and South Shore of Lake Ponchartrain through our subsidiary, Florida Parishes Bank and for general corporate purposes at the Company level.

Capital Surplus increased by $11.6 million at March 31, 2017 when compared to March 31, 2016. Retained earnings increased by $1.9 million to $19.7 million for the twelve month period. Other Comprehensive Income decreased by $731,000, or 134% from March 31, 2016 to March 31, 2017. Book value per common share increased to $15.63 as total common shares of 2,561,544 were outstanding at March 31, 2017 (this common share total does not include 166,371 of authorized warrants). At the Subsidiary Bank level, Tier 1 Capital increased to $28.6 million at March 31, 2017. Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of March 31, 2017.

Total assets at March 31, 2017 increased by 25.5% to $306.1 million as compared to $234.9 million at March 31, 2016. The increase in total assets was primary attributed to a 14.0% increase of $20 million in net loans, an increase of $19.8 million in securities available for sale, and a $17.8 million increase in cash and cash equivalents. Total liabilities increased by 22.8% to $266.1 million primarily due to an increase of $54.1 million, or 26.7% in total deposits to $257.1 million and offset by a decrease of $4.5 million or 49.0% in Federal Home Loan Bank (FHLB) advances.

Earnings - (Per Share Data Adjusted for a 3 for 2 Stock Split on March 31, 2016)

Net income in the 2017 first quarter decreased 39.6% to $469,000 ($0.23 per fully diluted common share) as compared to the 2016 first quarter net income of $776,000 ($0.42 per fully diluted common share). Although Revenue increased by $268,000, or 7.1% in the twelve month period ended March 31, 2017, net income for the 2017 period declined primarily due to increases in Compensation and Employee Benefits expenses along with Occupancy and Other expenses associated in the opening of a new banking center in Metairie, LA. Total Non-Interest income decreased by 8.1% to $837,000 in the 2017 period, primarily due to FPB not recording a gain on the sale of investments and foreclosed assets in 2017 and recording a $123,000 gain in the 2016 period. Mortgage banking revenue increased in 2017 by 12.8% to $295,000 and interchange revenue increased to $178,000, or 15.1%. Total Non-Interest expenses increased by $581,000, or 24.4%. Provisions for Loan Losses increased by 372% to $125,000 in the 2017 period. Earnings per share (EPS) decreased by 45.2%, primarily due to the decline in net income, EPS was also affected by the Company issuing new common shares in July 2016 and in March 2017.

Items and per share data of note as of March 31, 2017, compared to March 31, 2016.

• Total Common stockholders' Equity increased to $40.0 million, or 47.0%
• Book Value per common share increased by 7.1% to $15.63
• Cash Dividends paid to common shareholders total $103,000 in 2017 and $87,000 in 2016
• Net Interest Income (before provisions for loan losses) increased to $2.9 million or 10.9%
• Non-Interest Bearing deposits increased by 24.2% to $68.5 million
• Non-Maturity Deposits increased by 32.5% to $216.8 million
• FHLB Advances decreased by 49.0% to $4.7 million
• Net Loans increased to $162.7 million or 14.0%
• Total Assets increased by 25.5% to $306.1 million
• Allowance for Loan Losses increased to $3.4 million, or 3.4%

Asset Quality

Total non-performing assets at March 31, 2017 increased by $660,000, or 26.8% to $3.1 million as compared to March 31, 2016. The increase in non-performing assets were primary attributed to increases in loans secured by 1-4 family residential properties that are past due 90 days and still accruing or on nonaccrual. At March 31, 2017, $1.5 million of the $3.1 million total non-performing assets were loans secured by 1-4 family residential properties, $677,000 in residential and non-residential construction loans and $531,000 of OREO. Non-performing assets at December 31, 2016 were $2.2 million. The Company's allowance for loan losses increased by 3.4% to $3.4 million at March 31, 2017 while decreasing from 134.7% to 109.9% of total non-performing assets. Total allowance for loan losses were $3.3 million at December 31, 2016.

Net loan charge-offs for the 2017 first quarter totaled $31,000 an increase from $53,000 of net loan recoveries in the 2016 first quarter. Net loan charge-offs were $156,000 in the 2016 fourth quarter. Troubled Debt Restructured (TDR's) cumulative total through March 31, 2017 was $3.4 million (of which $1.5 million are past due ($637,000 are 30 to 90 days past due and $904,000 are on nonaccrual)), an increase of $656,000, or 24.2% from March 31, 2016. TDR's at December 31, 2016 totaled $3.4 million.

Other News - New Member of Executive Management and Opening of a New Branch Office

On January 23, 2017, Albert C. Kelleher joined Florida Parishes Bank as the Bank's President. Mr. Kelleher brings over 28 years of banking relationships and a wide range of banking experience in Southeast Louisiana to FPB. His primary responsibilities will be for strategic initiatives and business development for FPB in the Greater New Orleans region.

FPB opened a new full service banking facility located at 1041 Veterans Blvd. in Metairie, LA on March 15, 2017.

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.

Fritz W. Anderson II, Chairman of the Board announced today that "On April 13, 2017, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company bearing Cusip #302549 10 0. The dividend rate of $0.05 per share and will be paid on June 26, 2017 to stockholders of record at the close of business on June 12, 2017."