SOUTH SAN FRANCISCO, CA--(Marketwired - Jan 30, 2017) - FNB Bancorp (
The fourth quarter of 2016 operating results, when compared to the same period a year ago, provide the first year over year comparison where the earnings subsequent to the America California Bank ("ACB") acquisition are fully reflected. During the fourth quarter of 2016, our net interest income was $10.8 million, an increase of $375,000 from the third quarter of 2016. This increase was primarily the result of an increase in the average volume of our interest earning assets.
"During the fourth quarter of 2016, the Company was able to grow our total assets by $42 million. This growth included an increase in gross loans of $41 million. The Company also experienced an $11 million increase in our demand deposit balances. Overall, the deposit portfolio increased by $16 million, due primarily to declines in interest rate sensitive money market balances. The bank was able to continue to grow our interest earning assets by obtaining $34 million in additional Federal Home Loan Bank advances from existing credit facilities during the quarter. The current low rate environment has put pressure on our net interest margin, but we have added loans and investments in order to expand our interest earning assets. Our net interest margin improved during the fourth quarter of 2016 by 1 basis point, due primarily to higher loan levels within our interest earning assets. We remain "well capitalized" by regulatory standards and our earnings are growing. We are proud of our accomplishments, which are the result of our emphasis on meeting our customers' needs and providing them with products delivered with a high level of customer service", stated CEO Tom McGraw.
"Our total non-accrual loans balance decreased by $0.3 million during the fourth quarter. We continue to utilize a conservative underwriting approach in our loan origination process which should serve us well in the future. There was no fourth quarter provision for loan losses and our allowance for loan loss was considered by management to be sufficient, as of December 31, 2016", continued Tom McGraw.
CONSOLIDATED BALANCE SHEETS | (Unaudited) | |||||||||
(Dollars in thousands) | As of | |||||||||
December 31, | ||||||||||
2016 | 2015 | |||||||||
ASSETS | ||||||||||
Cash and due from banks | $ | 15,758 | $ | 12,314 | ||||||
Interest-bearing time deposits with financial institutions | 205 | 205 | ||||||||
Securities available for sale, at fair value | 360,105 | 329,207 | ||||||||
Other equity securities | 7,206 | 6,748 | ||||||||
Loans, net of deferred loan fees and allowance for loan losses | 782,485 | 722,747 | ||||||||
Bank premises, equipment and leasehold improvements, net | 9,837 | 10,202 | ||||||||
Bank owned life insurance | 16,247 | 15,845 | ||||||||
Accrued interest receivable | 4,942 | 4,511 | ||||||||
Other real estate owned | 1,427 | 1,026 | ||||||||
Goodwill | 4,580 | 4,580 | ||||||||
Prepaid expenses | 856 | 997 | ||||||||
Other assets | 15,746 | 15,967 | ||||||||
TOTAL ASSETS | $ | 1,219,394 | $ | 1,124,349 | ||||||
LIABILITIES | ||||||||||
Deposits: | ||||||||||
Demand, noninterest bearing | $ | 296,273 | $ | 263,822 | ||||||
Demand, interest bearing | 121,086 | 102,304 | ||||||||
Savings and money market | 487,763 | 491,633 | ||||||||
Time | 114,384 | 125,430 | ||||||||
Total Deposits | 1,019,506 | 983,189 | ||||||||
Federal Home Loan Bank advances | 71,000 | 17,000 | ||||||||
Note payable | 4,350 | 4,950 | ||||||||
Accrued expenses and other liabilities | 14,224 | 15,048 | ||||||||
Total Liabilities | 1,109,080 | 1,020,187 | ||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Common stock, no par value: | 76,433 | 74,805 | ||||||||
Retained Earnings | 35,427 | 27,816 | ||||||||
Accumulated other comprehensive earnings, net of tax | (1,546 | ) | 1,541 | |||||||
Total Stockholders' Equity | 110,314 | 104,162 | ||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,219,394 | $ | 1,124,349 | ||||||
CONSOLIDATED STATEMENTS OF EARNINGS | (Unaudited) | (Unaudited) | |||||||||||||||
(Amounts in thousands, except per share amounts) | Three Months Ended | Twelve Months Ended | |||||||||||||||
December 31, | December 31, | ||||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||||
INTEREST INCOME | |||||||||||||||||
Interest and fees on loans | $ | 9,578 | $ | 9,361 | $ | 38,313 | $ | 33,235 | |||||||||
Interest on dividends and securities | 1,925 | 1,657 | 7,156 | 6,008 | |||||||||||||
Interest on deposits with other financial institutions | 7 | 3 | 44 | 39 | |||||||||||||
Total interest income | 11,510 | 11,021 | 45,513 | 39,282 | |||||||||||||
INTEREST EXPENSE | |||||||||||||||||
Deposits | 631 | 732 | 2,780 | 2,359 | |||||||||||||
Federal Home Loan Bank advances | 48 | 7 | 67 | 9 | |||||||||||||
Interest on note payable | 55 | 56 | 222 | 229 | |||||||||||||
Total interest expense | 734 | 795 | 3,069 | 2,597 | |||||||||||||
NET INTEREST INCOME | 10,776 | 10,226 | 42,444 | 36,685 | |||||||||||||
Provision for loan losses | - | (530 | ) | 150 | (305 | ) | |||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,776 | 10,756 | 42,294 | 36,990 | |||||||||||||
NONINTEREST INCOME | |||||||||||||||||
Service charges | 599 | 645 | 2,461 | 2,501 | |||||||||||||
Net gain on sale of available-for-sale securities | 57 | 89 | 438 | 339 | |||||||||||||
Earnings on bank owned life insurance | 102 | 103 | 402 | 364 | |||||||||||||
Other income | 565 | 290 | 1,294 | 1,292 | |||||||||||||
Total Noninterest Income | 1,323 | 1,127 | 4,595 | 4,496 | |||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||
Salaries and employee benefits | 4,839 | 6,010 | 19,474 | 18,523 | |||||||||||||
Occupancy expense | 635 | 611 | 2,528 | 2,517 | |||||||||||||
Equipment expense | 448 | 393 | 1,765 | 1,926 | |||||||||||||
Professional fees | 384 | 396 | 1,363 | 1,471 | |||||||||||||
FDIC assessment | 150 | 150 | 600 | 600 | |||||||||||||
Telephone, postage, supplies | 298 | 292 | 1,199 | 1,074 | |||||||||||||
Advertising expense | 120 | 119 | 524 | 500 | |||||||||||||
Data processing expense | 178 | 136 | 657 | 1,076 | |||||||||||||
Low income housing expense | 71 | 71 | 284 | 283 | |||||||||||||
Surety insurance | 85 | 83 | 347 | 381 | |||||||||||||
Director fees | 72 | 72 | 288 | 288 | |||||||||||||
Other real estate owned expense (recovery), net | 5 | 10 | (5 | ) | 4 | ||||||||||||
Other expenses | 458 | 371 | 1,668 | 1,282 | |||||||||||||
Total Noninterest Expense | 7,743 | 8,714 | 30,692 | 29,925 | |||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 4,356 | 3,169 | 16,197 | 11,561 | |||||||||||||
Provision for income taxes | 1,314 | 1,081 | 5,696 | 3,364 | |||||||||||||
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS | $ | 3,042 | $ | 2,088 | $ | 10,501 | $ | 8,197 | |||||||||
Per Share Data: | |||||||||||||||||
Basic earnings per share available to common stockholders | $ | 0.63 | $ | 0.44 | $ | 2.18 | $ | 1.73 | |||||||||
Diluted earnings per share available to common stockholders | $ | 0.61 | $ | 0.43 | $ | 2.12 | $ | 1.68 | |||||||||
Cash dividends declared | $ | 739 | $ | 648 | $ | 2,847 | $ | 2,409 | |||||||||
Average shares outstanding | 4,850 | 4,763 | 4,822 | 4,742 | |||||||||||||
Average diluted shares outstanding | 4,974 | 4,904 | 4,945 | 4,876 | |||||||||||||
Shares outstanding as of the end of period | 4,853 | 4,769 | 4,853 | 4,769 | |||||||||||||
FINANCIAL HIGHLIGHTS | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||
Three Months Ended | Twelve Months Ended | |||||||||||||||||
December 31, | December 31, | |||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||
AVERAGE BALANCES: | ||||||||||||||||||
Total Assets | $ | 1,191,942 | $ | 1,126,582 | $ | 1,163,454 | $ | 1,010,435 | ||||||||||
Total Loans | 763,654 | 715,026 | 746,829 | 629,814 | ||||||||||||||
Total Earning Assets | 1,127,339 | 1,038,581 | 1,091,703 | 923,700 | ||||||||||||||
Total Deposits | 1,018,071 | 999,024 | 1,017,398 | 890,369 | ||||||||||||||
Total Stockholder's Equity | 111,807 | 103,780 | 109,854 | 100,621 | ||||||||||||||
SELECTED PERFORMANCE DATA | ||||||||||||||||||
Annualized return on average assets | 1.02 | % | 0.74 | % | 0.90 | % | 0.81 | % | ||||||||||
Annualized return on average equity | 10.88 | % | 8.05 | % | 9.56 | % | 8.15 | % | ||||||||||
Net interest margin (taxable equivalent) | 3.89 | % | 4.00 | % | 3.97 | % | 4.06 | % | ||||||||||
Average loans as a percent of average deposits | 75.01 | % | 71.57 | % | 73.41 | % | 70.74 | % | ||||||||||
Average total stockholders' equity as a % of average total assets | 9.38 | % | 9.21 | % | 9.44 | % | 9.96 | % | ||||||||||
Annualized common dividend payout ratio | 24.29 | % | 31.03 | % | 27.11 | % | 29.39 | % | ||||||||||
NON-PERFORMING ASSETS | (Extracted from | |||||||||||||||||
(Dollars In Thousands) | audited annual | |||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | financial statements) | ||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||
Non-accrual loans | $ 6,647 | $ | 6,903 | $ | 8,182 | $ | 6,882 | $ | 7,915 | |||||||||
Other real estate owned | 1,427 | 1,346 | 1,247 | 1,055 | 1,026 | |||||||||||||
Total non-performing assets | 8,074 | 8,249 | 9,429 | 7,937 | 8,941 | |||||||||||||
Loan loss reserve | $ 10,167 | $ | 10,092 | $ | 10,038 | $ | 9,943 | $ | 9,970 | |||||||||
Non-accrual loans/Gross loans | 0.84% | 0.92 | % | 1.11 | % | 0.92 | % | 1.08 | % | |||||||||
Loan loss reserves/Gross loans | 1.28% | 1.34 | % | 1.36 | % | 1.33 | % | 1.36 | % | |||||||||
CONSOLIDATED BALANCE SHEETS | (Extracted from | ||||||||||||||||||
(Dollars in thousands) | audited annual | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | financial statements) | |||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and due from banks | $ | 15,758 | $ | 17,342 | $ | 20,564 | $ | 37,737 | $ | 12,314 | |||||||||
Interest-bearing time deposits with financial institutions | 205 | 204 | 205 | 205 | 205 | ||||||||||||||
Securities available for sale, at fair value | 360,105 | 358,877 | 342,420 | 329,396 | 329,207 | ||||||||||||||
Other equity securities | 7,206 | 7,206 | 7,206 | 6,756 | 6,748 | ||||||||||||||
Loans, net of deferred loan fees and allowance for loan losses | 782,485 | 741,407 | 725,471 | 733,991 | 722,747 | ||||||||||||||
Bank premises, equipment and leasehold improvements, net | 9,837 | 9,918 | 10,114 | 10,320 | 10,202 | ||||||||||||||
Bank owned life insurance | 17,247 | 16,145 | 16,050 | 15,946 | 15,845 | ||||||||||||||
Accrued interest receivable | 4,942 | 4,544 | 4,547 | 4,603 | 4,511 | ||||||||||||||
Other real estate owned | 1,427 | 1,346 | 1,247 | 1,055 | 1,026 | ||||||||||||||
Goodwill | 4,580 | 4,580 | 4,580 | 4,580 | 4,580 | ||||||||||||||
Prepaid expenses | 856 | 670 | 783 | 945 | 997 | ||||||||||||||
Other assets | 14,746 | 15,309 | 15,393 | 15,444 | 15,967 | ||||||||||||||
TOTAL ASSETS | $ | 1,219,394 | $ | 1,177,548 | $ | 1,148,580 | $ | 1,160,978 | $ | 1,124,349 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Demand, noninterest bearing | $ | 296,273 | $ | 285,767 | $ | 267,593 | $ | 265,947 | $ | 263,822 | |||||||||
Demand, interest bearing | 121,086 | 110,147 | 112,591 | 113,337 | 102,304 | ||||||||||||||
Savings and money market | 487,763 | 491,047 | 508,605 | 526,557 | 491,633 | ||||||||||||||
Time | 114,384 | 116,496 | 118,700 | 124,410 | 125,430 | ||||||||||||||
Total Deposits | 1,019,506 | 1,003,457 | 1,007,489 | 1,030,251 | 983,189 | ||||||||||||||
Federal Home Loan Bank advances | 71,000 | 37,000 | 7,000 | - | 17,000 | ||||||||||||||
Note payable | 4,350 | 4,500 | 4,650 | 4,800 | 4,950 | ||||||||||||||
Accrued expenses and other liabilities | 14,224 | 18,847 | 17,026 | 17,230 | 15,048 | ||||||||||||||
Total Liabilities | 1,109,080 | 1,063,804 | 1,036,165 | 1,052,281 | 1,020,187 | ||||||||||||||
STOCKHOLDERS' EQUITY | |||||||||||||||||||
Common stock, no par value: | 76,433 | 76,065 | 75,944 | 75,240 | 74,805 | ||||||||||||||
Retained Earnings | 35,427 | 33,123 | 31,424 | 29,666 | 27,816 | ||||||||||||||
Accumulated other comprehensive earnings, net of tax | (1,546 | ) | 4,556 | 5,047 | 3,791 | 1,541 | |||||||||||||
Total Stockholders' Equity | 110,314 | 113,744 | 112,415 | 108,697 | 104,162 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 1,219,394 | $ | 1,177,548 | $ | 1,148,580 | $ | 1,160,978 | $ | 1,124,349 | |||||||||
CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | ||||||||||||||||||
(Amounts in thousands, except per share amounts) | Three Months Ended | ||||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||
INTEREST INCOME | |||||||||||||||||||
Interest and fees on loans | $ | 9,578 | $ | 9,301 | $ | 9,563 | $ | 9,871 | $ | 9,361 | |||||||||
Interest on dividends and securities | 1,925 | 1,815 | 1,731 | 1,685 | 1,657 | ||||||||||||||
Interest on deposits with other financial institutions | 7 | 6 | 22 | 9 | 3 | ||||||||||||||
Total interest income | 11,510 | 11,122 | 11,316 | 11,565 | 11,021 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 631 | 657 | 709 | 783 | 734 | ||||||||||||||
Federal Home Loan Bank advances | 48 | 10 | 1 | 8 | 7 | ||||||||||||||
Interest on note payable | 55 | 54 | 56 | 57 | 56 | ||||||||||||||
Total interest expense | 734 | 721 | 766 | 848 | 797 | ||||||||||||||
NET INTEREST INCOME | 10,776 | 10,401 | 10,550 | 10,717 | 10,224 | ||||||||||||||
Provision (recovery) for loan losses | - | - | 75 | 75 | (530 | ) | |||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,776 | 10,401 | 10,475 | 10,642 | 10,754 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Service charges | 599 | 623 | 618 | 621 | 647 | ||||||||||||||
Net gain on sale of available-for-sale securities | 57 | 140 | 57 | 184 | 89 | ||||||||||||||
Earnings on bank owned life insurance | 102 | 94 | 105 | 100 | 103 | ||||||||||||||
Other income | 565 | 245 | 256 | 229 | 290 | ||||||||||||||
Total Noninterest Income | 1,323 | 1,102 | 1,036 | 1,134 | 1,129 | ||||||||||||||
NONINTEREST EXPENSES | |||||||||||||||||||
Salaries and employee benefits | 4,839 | 4,821 | 4,876 | 4,938 | 6,010 | ||||||||||||||
Occupancy expense | 635 | 645 | 617 | 631 | 611 | ||||||||||||||
Equipment expense | 448 | 445 | 438 | 434 | 393 | ||||||||||||||
Professional fees | 384 | 298 | 294 | 387 | 396 | ||||||||||||||
FDIC assessment | 150 | 150 | 150 | 150 | 150 | ||||||||||||||
Telephone, postage, supplies | 298 | 300 | 306 | 295 | 292 | ||||||||||||||
Advertising expense | 120 | 104 | 183 | 117 | 119 | ||||||||||||||
Data processing expense | 178 | 147 | 140 | 192 | 136 | ||||||||||||||
Low income housing expense | 71 | 71 | 71 | 71 | 71 | ||||||||||||||
Surety insurance | 85 | 88 | 87 | 87 | 83 | ||||||||||||||
Director fees | 72 | 72 | 72 | 72 | 72 | ||||||||||||||
Other real estate owned expense (recovery), net | 5 | - | - | (10 | ) | 10 | |||||||||||||
Other expenses | 458 | 372 | 415 | 423 | 371 | ||||||||||||||
Total Noninterest Expense | 7,743 | 7,513 | 7,649 | 7,787 | 8,714 | ||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 4,356 | 3,990 | 3,862 | 3,989 | 3,169 | ||||||||||||||
Provision for income taxes | 1,314 | 1,546 | 1,414 | 1,422 | 1,081 | ||||||||||||||
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS | $ | 3,042 | $ | 2,444 | $ | 2,448 | $ | 2,567 | $ | 2,088 | |||||||||
(Unaudited) | |||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||
(Amounts in thousands, except per share | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||
amounts and percentages) | 2016 | 2016 | 2016 | 2016 | 2015 | ||||||||||||||||
Per Share Data: | |||||||||||||||||||||
Basic earnings per share available to common stockholders | $ | 0.63 | $ | 0.50 | $ | 0.51 | $ | 0.54 | $ | 0.44 | |||||||||||
Diluted earnings per share available to common stockholders | $ | 0.61 | $ | 0.49 | $ | 0.50 | $ | 0.52 | $ | 0.43 | |||||||||||
Cash dividends declared | $ | 739 | $ | 738 | $ | 686 | $ | 683 | $ | 680 | |||||||||||
Average shares outstanding | 4,850 | 4,843 | 4,811 | 4,777 | 4,711 | ||||||||||||||||
Average diluted shares outstanding | 4,974 | 4,953 | 4,930 | 4,921 | 4,854 | ||||||||||||||||
Shares outstanding as of end of period | 4,853 | 4,847 | 4,837 | 4,794 | 4,769 | ||||||||||||||||
SELECTED PERFORMANCE DATA | |||||||||||||||||||||
Annualized return on average assets | 1.02 | % | 0.84 | % | 0.85 | % | 0.90 | % | 0.91 | % | |||||||||||
Annualized return on average equity | 10.88 | % | 8.69 | % | 8.98 | % | 9.67 | % | 8.51 | % | |||||||||||
Net interest margin (taxable equivalent) | 3.89 | % | 3.88 | % | 3.96 | % | 4.14 | % | 4.17 | % | |||||||||||
Average loans as a percent of average deposits | 75.01 | % | 72.96 | % | 72.22 | % | 73.43 | % | 71.11 | % | |||||||||||
Average total stockholders' equity as a % of average total assets | 9.38 | % | 9.70 | % | 9.43 | % | 9.26 | % | 10.68 | % | |||||||||||
Annualized common dividend payout ratio | 24.29 | % | 30.20 | % | 28.02 | % | 26.61 | % | 32.57 | % | |||||||||||
(Extracted from | |||||||||||||||||||||
LOANS | audited annual | ||||||||||||||||||||
(Dollars in thousands) | (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | financial statements) | ||||||||||||||||
December 31, | September 30, | June 30, | March 31, | December 31, | |||||||||||||||||
2016 | 2016 | 2016 | 2016 | 2015 | |||||||||||||||||
Real Estate Loans: | |||||||||||||||||||||
Construction | $ | 43,683 | $ | 38,162 | $ | 29,251 | $ | 42,465 | $ | 44,816 | |||||||||||
Commercial | 421,222 | 404,841 | 398,290 | 411,999 | 399,993 | ||||||||||||||||
Multi family | 105,963 | 83,946 | 82,637 | 59,993 | 63,597 | ||||||||||||||||
Residential | 170,523 | 173,476 | 174,084 | 173,437 | 171,964 | ||||||||||||||||
Commercial & industrial loans | 48,874 | 50,967 | 51,366 | 55,694 | 52,033 | ||||||||||||||||
Consumer loans | 3,533 | 1,630 | 1,311 | 1,675 | 1,574 | ||||||||||||||||
Gross Loans | 793,798 | 753,022 | 736,939 | 745,263 | 733,977 | ||||||||||||||||
Net deferred loan fees | (1,146 | ) | (1,523 | ) | (1,430 | ) | (1,329 | ) | (1,260 | ) | |||||||||||
Allowance for loan losses | (10,167 | ) | (10,092 | ) | (10,038 | ) | (9,943 | ) | (9,970 | ) | |||||||||||
NET LOANS | $ | 782,485 | $ | 741,407 | $ | 725,471 | $ | 733,991 | $ | 722,747 | |||||||||||
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.
Contact Information:
Contacts:
Tom McGraw
Chief Executive Officer
(650) 875-4864
Dave Curtis
Chief Financial Officer
(650) 875-4862