FPB FINANCIAL CORP. (OTCQB: FPBF), the Holding Company for Florida Parishes Bank, Announces Record 2018 Third Quarter Results and Declares Dividends

HAMMOND, La., Oct. 30, 2018 (GLOBE NEWSWIRE) -- FPB Financial Corp. (OTCQB: FPBF), the holding for Florida Parishes Bank, announced financial results for the 2018 period ended September 30, 2018.

Earnings

Net Income in the 2018 third quarter increased 165% to a record of $1,371,000 ($0.48 per fully diluted common share) as compared to the 2017 third quarter net income of $517,000 ($0.19 per fully diluted common share). Annualized return on average common equity (ROE) for the 3 months ended September 30, 2018 increased to 12.4%

The increase in net income during the 2018 third quarter was primarily attributed to a $557,000, or 17%, increase in net-interest income. The increase in net-interest income was primarily due to a 20% increase in mortgage loan interest income and a 33% increase in interest income from investment securities. Net income was positively affected by a $359,000, or 11% decrease in Non-Interest Expense. The decrease in non-interest expense was the result of a $60,000, or 3% decrease in compensation and employee benefits; a $58,000, or 45% reduction in Professional fees; a $54,000, or 51% decrease in Regulatory fees; and a $165,000, or 36% decrease in Other Non-operating expenses largely from a $53,000 decrease in advertising expense. Net Income was also affected by a $370,000 decrease, or 32.2%, in Total Non-Interest Income for the 2018 period, as compared to the 2017 period. The decrease in Non-Interest Income was due to a $310,000 decrease in Mortgage Banking Fees and a $135,000 decrease in SBA Fee Income. Other than Mortgage Banking and SBA Fees, our Non-Interest Income increased by $135,000 in the period.

Revenue (defined as net-interest income and total non-interest income) in the 2018 third quarter increased to $4.7 million, or 4% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended September 30, 2018 increased to $1.9 million, or 40.9% when compared to the 2017 period. The Company’s Net-Interest Margin increased in the 2018 third quarter to 4.43% from 4.39% in the 2017 period. The Efficiency Ratio improved to 60.0% in the 2018 period.

While the Company’s effective income tax rate decreased to 19.4% in the 2018 period, Income Tax expense increased by $126,000 as compared to the 2017 period.

Balance Sheet and Capital

Total assets at September 30, 2018 increased 13% to $382.7 million when compared to September 30, 2017. The increase in total assets was primarily due a 19% increase in net loans over the twelve month period to $238.5 million. Total Liabilities increased 15% over the period. Deposits were the primary component of these increases with total deposits of $317.7 million at September 30, 2018, an increase of 10% of which $84.8 million were Non-Interest Bearing, which represents an increase of 13% from September 30, 2017.

The Company’s increase in total assets were affected by a 19% decrease in Cash and Cash Equivalents to $20.5 million, an increase of 12% in Investment Securities to $101 million and an 862% increase in deferred tax assets to $839,000. The increase in total liabilities were affected by a $17.7 million, or 885% increase in Federal Home Loan Bank advances and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $243.1 million at September 30, 2018. Of that total $217.8 million, or 90%, were secured by real estate.

Common Stockholders’ Equity increased by $1.7 million, or 4% to $44.0 million for the twelve months ended September 30, 2018.

Retained Earnings increased by $4.3 million to $24.4 million for the twelve month period. Other Comprehensive Income decreased by $1.9 million, or 792% from September 30, 2017 to September 30, 2018. Tangible Book value per common share increased to $16.26 as total common shares of 2,703,944 were outstanding at September 30, 2018. Of the 2,703,944 outstanding shares; 49,140 shares are restricted common shares that represent stock awards to officers and directors of the Bank and Company which are not vested as of September 30, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $ 39.9 million at September 30, 2018.

Items affecting and contributing to the Company’s record 2018 third quarter net income when compared to the 2017 quarterly period:

• Net Interest Income increased to $3.9 million from $3.4 million, or 16.5%
• Service charges on deposits increased to $288,000 from $236,000, or 21.7%
• Total non-interest expenses decreased to $2.8 million from $3.2 million, or 11.3%
• Compensation and employee benefits decreased by 3.3%
• Provisions for Loan Losses decreased to $177,000, or 71.1%
• The effective tax rate decreased to 19.4%

Other items and per share data of note as of September 30, 2018, compared to the nine month period ending September 30, 2017

• Net Earnings per diluted common share increased to $1.41, or 213%
• Annualized Return on Average Equity increased to 12.6%
• Total Revenue (Net interest income and Non-interest income) increased to $13.9 million or 14.7%
• The Efficiency Ratio improved to 61.2%
• Total Common Stockholders’ Equity increased to $44.0 million, or 3.9%
• Cash Dividends paid to common shareholders increased to $557,000 in 2018, or a 53% increase
• Tangible Book Value per common share increased to $16.26
• Net Loans increased to $238.5 million or 19.2%
• Allowance for Loan Losses increased to $4.6 million, or 8.0%
• Non-Interest Bearing Deposits total $84.8 million, an increase of 12.6%
• Non-Maturity deposits increased by 7.2% to $259.8 million
• Total Assets increased by 13.2% to $382.7 million
• FHLB advances increased by 887.5% to $19.7 million 

Asset Quality

Non-performing assets (NPA’s) at September 30, 2018 decreased by $718,000, or 20.9% to $2.7 million when compared to September 30, 2017 and represents 1.12% of gross loans.   NPA’s at June 30, 2018 totaled $2.0 million. The decrease during the 12 month period ending September 30, 2018 in NPA’s were attributed to an increase of $101,000 in loans on nonaccrual, to $2.2 million; a decrease of $721,000 in Other Real Estate Owned (OREO), to $0 and a $98,000 decrease in loans 90-days past due and accruing, to $42,000. The increase in NPA’s during the 3 month period ending September 30, 2018 were attributed to an increase of $661,000 in non-accrual loans and a $41,000 increase in loans 90-days past due and accruing, to $42,000. The Company’s allowance for loan losses (ALLL) increased by 8% to $4.6 million at September 30, 2018 when compared to September 30, 2017. The $4.6 million in the ALLL represents 2.0% of average net loans in the 2018 third quarter period and 169.9% of NPA’s on September 30, 2018. At June 30, 2018 the Company’s ALLL totaled $4.5 million or 2.0% of 2018 second quarter average net loans and 226.1% of NPA’s at period end.

Net loan charge-offs for the 2018 third quarter totaled $114,000 (0.20% of average net loans) up from $70,000 (0.14%) of net loan charge-offs in the 2017 third quarter. Net loan charge-offs were $6,000 (0.01%) in the 2018 second quarter. Troubled Debt Restructured (TDR’s) through September 30, 2018 were $3.6 million, of which $961,000 are on nonaccrual. Total TDR’s on September 30, 2017 and June 30, 2018 were $3.2 million and $3.5 million respectively.

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, CEO and Chairman of the Board, announced today that, “On October 11, 2018, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.09 per share will be paid on December 26, 2018 to stockholders of record at the close of business on December 10, 2018.”

For More Information Contact:

Fritz W. Anderson, II
Chief Executive Officer,
and Chairman, FPB Financial Corp.
Chairman, Florida Parishes Bank
(985) 345-1880

Ronnie Fugarino
President, FPB Financial Corp.
Chief Executive Officer, Florida Parishes Bank       
(985) 345-1880

Albert Kelleher
President, Florida Parishes Bank
(985) 345-1880

Derek Shants
Chief Financial Officer
and Chief Operations Officer,
FPB Financial Corp. and Florida Parishes Bank
(985) 345-1880