SOUTH SAN FRANCISCO, CA--(Marketwire - April 29, 2010) - FNB Bancorp (
During the first quarter of 2010, the Bank completed the modification of a single large construction loan whereby the bank received a principal reduction of $1,416,000 and recorded a charge-off of approximately $1,003,000 for financial reporting purposes. Management believes that the Bank will ultimately collect this entire loan balance.
"Over the last 15 months, the majority of the Bank's charge-off activity has been related to our land development and construction loans, which are a component of the commercial real estate ("CRE") segment of our loan portfolio. Management has performed stress tests on our CRE portfolio, and based on the results of these tests, management believes that the Bank could sustain a significant decrease in CRE valuations without having to recognize a significant addition to our provision for loan losses. Our nonperforming assets are expected to continue to decline during the second quarter of 2010. New loan production volumes are also expected to remain low until such time as local real estate values improve, economic activity increases, and unemployment rates decline. Reviews of our entire loan portfolio are ongoing to ensure that our allowance for loan losses is adequate to absorb any anticipated losses that might be contained within our loan portfolio," stated CEO Tom McGraw.
Financial Highlights: First Quarter, 2010
Three months Three months
Consolidated Statements of Earnings ended ended
(in '000s except earnings per share March 31, March 31,
amounts) 2010 2009
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Interest income $ 8,660 $ 8,911
Interest expense 1,700 2,319
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Net interest income 6,960 6,592
Provision for loan losses (250) (2,140)
Noninterest income 1,100 1,349
Noninterest expense 6,538 7,420
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Interest before income taxes 1,272 (1,619)
Provision for income taxes (268) 430
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Net earnings (loss) 1,004 (1,189)
Dividends and discount accretion
on preferred stock (212) (16)
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Net earnings (loss) available to
common shareholders $ 792 $ (1,205)
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Basic earnings per share $ 0.25 ($ 0.38)
Diluted earnings per share $ 0.25 ($ 0.38)
Average assets $ 727,122 $ 658,199
Average equity $ 79,421 $ 73,098
Return on average assets 0.44% (0.72%)
Return on average equity 3.99% (6.51%)
Efficiency ratio 81% 93%
Net interest margin (taxable equivalent) 4.69% 4.52%
Average shares outstanding 3,182 3,182
Average diluted shares outstanding 3,190 3,182
Financial Highlights: First Quarter, 2010
As of As of
Consolidated Balance Sheets March 31, March 31,
(in '000s) 2010 2009
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Assets:
Cash and cash equivalents $ 69,371 $ 29,471
Securities available for sale 114,584 91,711
Loans, net 485,864 490,910
Premises, equipment and leasehold
improvements 11,823 12,737
Other real estate owned 7,058 5,655
Goodwill 1,841 1,841
Other assets 33,025 28,866
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Total assets $ 723,566 $ 661,191
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Liabilities and stockholders' equity:
Deposits:
Demand and NOW $ 182,639 $ 171,697
Savings and money market 317,650 206,390
Time 123,297 137,983
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Total deposits 623,586 516,070
Federal Home Loan Bank advances 15,000 60,000
Accrued expenses and other liabilities 5,436 6,680
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Total liabilities 644,022 582,750
Stockholders' equity 79,544 78,441
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Total liab. and stockholders' equity $ 723,566 $ 661,191
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Other Financial Information
Allowance for loan losses $ 9,096 $ 8,726
Nonperforming assets $ 25,263 $ 18,018
Total gross loans $ 494,960 $ 499,636
"We are committed to the continued use of conservative underwriting standards as we help meet the credit needs of our customers. We are also working on new product delivery channels, including online account opening, to make your banking experience easy and convenient. Our capital levels remain significantly above minimum levels required to be considered 'well capitalized' by regulatory definitions," continued Mr. McGraw.
"During the first quarter of 2010, we improved our profitability and the strength of our balance sheet. While profitability levels are still not where we would like them to be, they are better than many of our peers. We have conservatively positioned the Bank so that we will be able to take advantage of any market opportunities that become available and to grow the Bank as the health of the economy allows. We continue to lend and are actively seeking new loan and deposit customers who want a local, community bank that knows and understands them. Our commitment is to our customers, our shareholders, and the communities we serve. Providing for our customers' financial needs is what we do, in both good times and bad," stated Mr. McGraw.
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