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

HAMMOND, La., April 30, 2018 (GLOBE NEWSWIRE) -- FPB Financial Corp. (OTCQB:FPBF), the holding for Florida Parishes Bank, announced financial results for the 2018 period ended March 31, 2018.

Earnings

Net Income in the 2018 first quarter increased 170% to a record of $1,267,000 ($0.44 per fully diluted common share) as compared to the 2017 first quarter net income of $468,000 ($0.23 per fully diluted common share). Annualized return on average common equity (ROE) for the 3 months ended March 31, 2018 increased to 12.2%

The increase in net income during the 2018 first quarter was primarily attributed to a $975,000, or 30%, increase in net-interest income. The increase in net-interest income was primarily due to a 33% increase in mortgage loan interest income and a 28% increase in interest income from investment securities and deposits. Net income was positively affected by a $63,000, or 7% increase in Non-Interest Income. Non-Interest Income increased primarily due to a $91,000 increase in service charges on deposits, a $74,000 increase in SBA Fee Income offset by a $64,000 decreasing in mortgage banking fees, and a $69,000 loss on sale of foreclosed assets.  Total consolidated non-interest expenses declined, by $98,000, or 3% in the 2018 period.

Revenue (defined as net-interest income and total non-interest income) in the 2018 first quarter increased to $4.6 million, or 23% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended March 31, 2018 increased to $1.7 million, or 124% when compared to the 2017 period. The Company’s Net-Interest Margin increased in the 2018 first quarter to 4.45% from 4.35% in the 2017 period. The Efficiency Ratio improved to 62.4% in the 2018 period.

While the Company’s effective income tax rate decreased to 20.7% in the 2018 period, Income Tax expense increased by $151,000, or 85% in the period as compared to 2017.

Balance Sheet and Capital

Total assets at March 31, 2018 increased 19% to $365.5 million when compared to March 31, 2017. The increase in total assets was primarily due to a 39% increase in net loans over the twelve month period to $226.2 million. Total Liabilities increased 21% over the period. Deposits were the primary component of these increases with total deposits of $305.8 million at March 31, 2018, an increase of 19% of which $82.7 million were Non-Interest Bearing, which represents an increase of 21% from March 31, 2017.

The Company’s increase in total assets were affected by a 54% decrease in Cash and Cash Equivalents to $16.7 million, an increase of 17% in Investment Securities to $100.5 million and a 95% increase in deferred tax assets to $664,000. The increase in total liabilities were affected by a $7.2 million, or 82% increase in Federal Home Loan Bank advances and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $230.7 million at March 31, 2018.  Of that total $204.4 million, or 88.6%, were secured by real estate. 

Total Common Stockholders’ Equity increased by a net of $2.3 million, or 6% to $42.3 million for the twelve months ended March 31, 2018.

Capital Surplus increased by $1.6 million to $22.1 million at March 31, 2018 when compared to March 31, 2017.  Retained Earnings (net of unearned MRP stock) increased by $1.5 million to $21.1 million for the twelve month period. Other Comprehensive Income decreased by $697,000, or 379% from March 31, 2017 to March 31, 2018. Tangible Book value per common share increased to $15.69 as total common shares of 2,699,732 were outstanding at March 31, 2018. As of the end of the first quarter, 45,671 shares of the 2,699,732 common shares outstanding are restricted common shares that represent stock awards to officers of the Bank and Company which are not vested as of March 31, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $ 37.0 million at March 31, 2018.

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

• Net Interest Income increased to $3.7 million from $2.9 million in 2017, or 27%
• Service charges on deposits increased to $298,000 from $207,000, or 44.0%
• Total non-interest expenses decreased to $2.9 million in 2018 from $3.0 million in 2017, or 3.0%
• Compensation and employee benefits decreased to $1.8 million from $1.9 million in 2017, or 3.0%
• Provisions for Loan Losses increased to $130,000, or 4.0%
• The effective tax rate decreased to 20.7% from 27.6% in the 2017 period          

Other items and per share data of note this Year-To-Date (YTD) as of March 31, 2018, compared to the three month period ending March 31, 2017

• Net Earnings per diluted common share increased to $0.44, or 91%
• Annualized Return on Average Equity increased to 12.2%
• Total Revenue (Net interest income and Non-interest income) increased to $4.6 million or 23.0%
• The Efficiency Ratio improved to 62.4%
• Total Common Stockholders’ Equity increased to $42.4 million, or 6.0%
• Cash Dividends paid to common shareholders total $159,000 in 2018 and $103,000 in 2017
• Tangible Book Value per common share increased to $15.69
• Net Loans increased to $226.2 million or 39.0%
• Allowance for Loan Losses increased to $4.5 million, or 31.0%
• Non-Interest Bearing Deposits total $82.7 million, an increase of 20.7%
• Non-Maturity deposits increased by 17.4% to $254.5 million
• Total Assets increased by 19.0% to $365.5 million
• FHLB advances increased by 243.0% to $16.0 million 

Asset Quality

Total non-performing assets (NPA’s) at March 31, 2018 decreased by $645,000, or 21% to $2.5 million when compared to March 31, 2017 and represents 1.1% of gross loans.   NPA’s at December 31, 2017 totaled $3.1 million. The decrease during the 12 month period ending March 31, 2018 in NPA’s were attributed to an decrease of $208,000 in loans on nonaccrual, to $1.7 million; an increase of $200,000 in Other Real Estate Owned (OREO), to $731,000 and a $637,000 decrease in loans 90-days past due and accruing, to $12,000. The decrease in NPA’s during the 3 month period ending March 31, 2018 were attributed to a decrease of $45,000 in non-accrual loans, a decrease of $615,000 in OREO, and a $7,000 decrease in loans 90-days past due and accruing, to $12,000. The Company’s allowance for loan losses (ALLL) increased by 31% to $4.5 million at March 31, 2018 when compared to March 31, 2017. The $4.5 million in the ALLL represents 2.0% of average net loans in the 2018 first quarter period and 181% of NPA’s on March 31, 2018. At December 31, 2017 the Company’s ALLL totaled $4.4 million or 2.1% of 2017 fourth quarter average net loans and 139% of NPA’s at period end.

Net loan charge-offs for the 2018 first quarter totaled $14,000 (0.03% of average net loans) down from $31,000 (0.08%) of net loan charge-offs in the 2017 first quarter. Net loan charge-offs were $292,000 (0.55%) in the 2017 fourth quarter. Troubled Debt Restructured (TDR’s) through March 31, 2018 was $2.7 million, of which $1.1 million are on nonaccrual. Total TDR’s on March 31, 2017 and December 31, 2017 were $3.4 million and $2.9 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 April 12, 2018, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.075 per share will be paid on June 25, 2018 to stockholders of record at the close of business on June 11, 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