EX-99.53 2 ex99_53.htm EXHIBIT 99.53

Exhibit 99.53

NEWS RELEASE

 

 

 

               For Immediate Release

Contacts:

 

 

Tom McGraw, Chief Executive Officer (650) 875-4864

 

 

Dave Curtis, Chief Financial Officer (650) 875-4862

 

Press Release
Available for Immediate Publication: October 22, 2007

First National Bank of Northern California Reports Third Quarter 2007 Earnings of $0.62 Per Diluted Share

Source: FNB Bancorp (CA) (Bulletin Board: FNBG)
South San Francisco, California
Website: www.fnbnorcal.com

Contacts:
Tom McGraw, Chief Executive Officer (650) 875-4864
Dave Curtis, Chief Financial Officer (650) 875-4862

 

          FNB Bancorp (Bulletin Board: FNBG), parent company of First National Bank of Northern California, today announced net earnings for the third quarter of 2007 of $1,795,000 or $0.62 per diluted share, compared to $1,466,000 or $0.51 per diluted share for the third quarter of 2006. Total consolidated assets as of September 30, 2007 were $638,528,000 compared to $586,023,000 as of September 30, 2006. Certain amounts reported for 2006 have been reclassified to conform to the September 30, 2007 presentation. The reclassifications had no effect on Net earnings or Stockholders’ equity.

 

 

 

Financial Highlights: Third quarter, 2007

 

Consolidated Statement of Earnings

 

(in ‘000s except earnings per share amounts)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended
September 30,

 

 

Nine months ended
September 30,

 

 

 

2007

 

2006

 

 

2007

 

2006

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

$

10,881

 

$

9,502

 

 

$

31,439

 

$

27,267

 

Interest expense

 

 

3,531

 

 

2,786

 

 

 

10,046

 

 

6,905

 

 

 

 

Net interest income

 

 

7,350

 

 

6,716

 

 

 

21,393

 

 

20,362

 

Provision for loan losses

 

 

(180

)

 

(163

)

 

 

(510

)

 

(519

)

Non-interest income

 

 

1,093

 

 

1,046

 

 

 

3,239

 

 

5,189

 

Non-interest expense

 

 

5,761

 

 

5,346

 

 

 

17,327

 

 

16,135

 

 

 

 

Income before income taxes

 

 

2,502

 

 

2,253

 

 

 

6,795

 

 

8,897

 

Provision for income taxes

 

 

(707

)

 

(787

)

 

 

(1,814

)

 

(2,874

)

 

 

 

Net earnings

 

$

1,795

 

$

1,466

 

 

$

4,981

 

$

6,023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings per share

 

$

0.63

 

$

0.52

 

 

$

1.74

 

$

2.12

 

Diluted earnings per share

 

$

0.62

 

$

0.51

 

 

$

1.72

 

$

2.07

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average assets

 

$

627,520

 

$

585,307

 

 

$

615,185

 

$

569,719

 

Average equity

 

$

64,940

 

$

59,723

 

 

$

63,745

 

$

58,076

 

Return on average assets

 

 

1.14

%

 

1.00

%

 

 

1.08

%

 

1.41

%

Return on average equity

 

 

11.06

%

 

9.82

%

 

 

10.42

%

 

13.83

%

Efficiency ratio

 

 

68

%

 

69

%

 

 

70

%

 

63

%

Net interest margin

 

 

5.10

%

 

5.01

%

 

 

5.12

%

 

5.28

%

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

2,861

 

 

2,842

 

 

 

2,859

 

 

2,840

 

Diluted

 

 

2,881

 

 

2,901

 

 

 

2,888

 

 

2,905

 

 

 

 

Consolidated Balance Sheets

 

(In ‘000s)

 

 

 

 

 

 

 

 

 

 

As of
September 30, 2007

 

As of
September 30, 2006

 

 

 

 

 

Assets

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

17,264

 

$

16,675

 

Securities available for sale

 

 

91,127

 

 

136,133

 

Loans, net

 

 

486,127

 

 

393,883

 

Premises, equipment and leasehold improvements

 

 

13,604

 

 

13,300

 

Goodwill

 

 

1,841

 

 

1,841

 

Other assets

 

 

28,565

 

 

24,191

 

 

 

 

 

Total assets

 

$

638,528

 

$

586,023

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and stockholders’ equity:

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

Demand and NOW

 

$

179,627

 

$

180,069

 

Savings and money market

 

 

189,232

 

 

170,378

 

Time

 

 

138,154

 

 

126,431

 

 

 

 

 

Total deposits

 

 

507,013

 

 

476,878

 

Federal funds purchased

 

 

12,620

 

 

10,622

 

Federal Home Loan Bank advances

 

 

45,000

 

 

30,000

 

Accrued expenses and other liabilities

 

 

8,859

 

 

8,051

 

 

 

 

 

Total liabilities

 

 

573,492

 

 

525,551

 

Stockholders’ equity

 

 

65,036

 

 

60,472

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

638,528

 

$

586,023

 

 

 

 

 

          “Our operating results for the third quarter of 2007 reflect our ability to add quality interest earning assets, primarily construction and permanent commercial real estate financing instruments, which have positively affected our profitability for the quarter. We have been able to grow our assets by $52,505,000 or 9%, total deposits by $30,135,000 or 6% year over year. We have increased our use of FHLB borrowings to help fund this loan growth in order to keep the interest rates paid on our deposits at levels that management believes to be prudent. During the quarter, the growth in loans has allowed our net interest margin to increase 9 basis points over levels achieved during the same quarter of 2006. Our quarterly net interest income increased by $634,000 year over year, resulting in a net interest margin of 5.10% during the third quarter of 2007, compared to 5.01% during the third quarter of 2006. The third quarter net interest margin decreased by 3 basis points when compared to the 5.13% recorded for the second quarter of 2007. The primary reason for the decline in the third quarter net interest margin from the level achieved during the second quarter of this year was an increase in nonaccrual loans. At September 30, 2007 there were four loans totaling $11,253,000 in nonaccrual status, compared to $2,344,000 and $3,000 in nonaccrual loans as of June 30, 2007 and September 30, 2006, respectively. At September 30, 2007, the nonaccrual loans were all real estate loans that were considered well secured by management based on current valuations. Our increased non-interest expenses year over year were primarily the result of increased salaries and benefits and occupancy expenses, “ stated Tom McGraw, Chief Executive Officer.

          “Our focus in the near term is to increase our deposit base, in particular our DDA deposits, while continuing to meet our customers’ loan needs. Anticipated deposit acquisition efforts are planned throughout our existing branches, highlighting products such as our business on-line banking and remote capture products. We also plan to offer positive pay and lockbox products in the near future. Our challenge, as we plan for the future, is to deliver the products and services that will help our customers meet their personal and business financial goals while we manage the growth of our non-interest expenses,” noted 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.