United States
SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 8-K
Current Report
Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
October 30, 2013
FNB BANCORP
(Exact name of registrant as specified in its charter)
California
(State or other jurisdiction of incorporation)
| 000-49693 | 92-2115369 |
| (Commission File Number) | (IRS Employer Identification No.) |
| 975 El Camino Real, South San Francisco, California | 94080 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (650) 588-6800
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| o | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02 Results of Operations and Financial Condition
FNB Bancorp (Bulletin Board: FNBG), parent company of First National Bank of Northern California, on October 30, 2013 announced financial highlights of operating results for the quarter ended September 30, 2013.
A copy of the News Release issued by the registrant on October 30, 2013, is attached to this report as Exhibit 99.01 and is incorporated here by reference.
Item 9.01. Financial Statements and Exhibits.
| (c) Exhibits | ||
| 99.01 | News Release dated October 30, 2013, announcing financial highlights of operating results for the quarter ended September 30, 2013. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FNB BANCORP (Registrant) | ||
| Dated: October 30, 2013. | By: | /s/ Dave A. Curtis |
| Dave A. Curtis | ||
| Senior Vice President and Chief Financial Officer | ||
Exhibit 99.01
Press Release
Available for Immediate Publication: October 30, 2013
First National Bank of Northern California Reports Third Quarter 2013 Earnings of $0.75 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 (the “Bank”), today announced net earnings available to common shareholders for the third quarter of 2013 of $2,880,000 or $0.75 per diluted share, compared to net earnings available to common shareholders of $4,783,000 or $1.27 per diluted share for the third quarter of 2012. Dividend payments on the preferred shares outstanding were made as required by the Treasury Department’s Small Business Lending (SBLF) Program. Total assets as of September 30, 2013 were $927,051,000 compared to $897,724,000 as of September 30, 2012. Our net loans increased by $10,615,000 since September 30, 2012. During this same time frame, our deposits decreased by $10,840,000. At September 30, 2013, the Company had considerable liquid assets on hand of $285,610,000 in available for sale securities, $6,979,000 in interest earning time deposits as well as $18,368,000 in cash and cash equivalents.
“During the third quarter of 2013, the Bank was able to increase our loan production and our net loans outstanding. At the same time, higher rate brokered time deposits acquired in our Oceanic Bank acquisition have been allowed to runoff. During the 12 month period ended September 30, 2013, which is also the first twelve months following our Oceanic Bank acquisition, our time deposit balances have decreased by $55,906,000 while our noninterest bearing demand deposits have grown by $15,068,000 and our savings and money market deposits have grown by $36,197,000. Overall, our deposit portfolio has performed well, with the decrease in total deposits in line with management’s projections. During the third quarter of 2013, there was an increase in the outstanding wholesale borrowings obtained from the Federal Home Loan Bank, which totaled $44,000,000 as of September 30, 2013. The Bank intends to slowly reduce the amount of our outstanding borrowings over the next twelve months by utilizing funds derived from principal repayments that occur within our investment portfolio and the slow and steady acquisition of additional deposit accounts and dollars. There was also a sizeable tax benefit recorded during the third quarter of 2013. Based on the filing of our 2012 income tax returns and a review of our expected profitability levels, the Bank was able to reverse, in total, our outstanding deferred tax asset valuation allowance,” stated Tom McGraw, Chief Executive Officer.
Financial Highlights: Third Quarter, 2013
Consolidated Statements of Earnings
(in ’000s except earnings per share amounts)
| Three months | Three months | Nine months | Nine months | |||||||||||||
| ended | ended | ended | ended | |||||||||||||
| September 30, | September 30, | September 30, | September 30, | |||||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||||||
| Interest income | $ | 9,259 | $ | 8,361 | $ | 28,014 | $ | 24,121 | ||||||||
| Interest expense | 560 | 663 | 1,881 | 2,000 | ||||||||||||
| Net interest income | 8,699 | 7,698 | 26,133 | 22,121 | ||||||||||||
| Provision for loan losses | (225 | ) | (400 | ) | (1,335 | ) | (1,200 | ) | ||||||||
| Noninterest income | 978 | 4,764 | 3,046 | 8,099 | ||||||||||||
| Noninterest expense | 6,950 | 6,631 | 22,074 | 20,182 | ||||||||||||
| Income before income taxes | 2,502 | 5,431 | 5,770 | 8,838 | ||||||||||||
| Provision for income taxes | 629 | (490 | ) | (330 | ) | (1,381 | ) | |||||||||
| Net earnings | 3,131 | 4,941 | 5,440 | 7,457 | ||||||||||||
| Dividends and discount accretion on preferred stock | 251 | 158 | 581 | 501 | ||||||||||||
| Net earnings available to common shareholders | $ | 2,880 | $ | 4,783 | $ | 4,859 | $ | 6,956 | ||||||||
| Basic earnings per share | $ | 0.77 | $ | 1.30 | $ | 1.30 | $ | 1.89 | ||||||||
| Diluted earnings per share | $ | 0.75 | $ | 1.27 | $ | 1.27 | $ | 1.86 | ||||||||
| Average assets | $ | 903,868 | $ | 787,264 | $ | 900,794 | $ | 757,792 | ||||||||
| Average equity | $ | 89,728 | $ | 90,135 | $ | 92,994 | $ | 88,834 | ||||||||
| Return on average assets | 1.27 | % | 2.43 | % | 1.08 | % | 1.22 | % | ||||||||
| Return on average equity | 12.84 | % | 21.23 | % | 10.45 | % | 10.44 | % | ||||||||
| Efficiency ratio | 72 | % | 53 | % | 76 | % | 67 | % | ||||||||
| Net interest margin (taxable equivalent) | 4.23 | % | 4.58 | % | 4.34 | % | 4.55 | % | ||||||||
| Average shares outstanding | 3,761 | 3,692 | 3,735 | 3,689 | ||||||||||||
| Average diluted shares outstanding | 3,852 | 3,759 | 3,824 | 3,745 | ||||||||||||
Financial Highlights: Third Quarter, 2013
Consolidated Balance Sheets
(in ’000s)
| As of | As of | As of | As of | |||||||||||||
| September 30 | December 31, | September 30, | December 31, | |||||||||||||
| 2013 | 2012 | 2012 | 2011 | |||||||||||||
| Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 18,368 | $ | 27,861 | $ | 53,708 | $ | 38,474 | ||||||||
| Interest-bearing time deposits with other financial institutions | 6,979 | 13,216 | 17,095 | — | ||||||||||||
| Securities available for sale, at fair value | 285,610 | 234,945 | 228,805 | 187,664 | ||||||||||||
| Loans, net | 558,164 | 541,563 | 547,549 | 443,721 | ||||||||||||
| Premises, equipment and leasehold improvements, net | 12,631 | 12,706 | 12,761 | 13,227 | ||||||||||||
| Other real estate owned, net | 6,675 | 6,650 | 1,923 | 2,747 | ||||||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||||||
| Other equity securities | 5,300 | 5,464 | 5,888 | 4,608 | ||||||||||||
| Accrued interest receivable | 3,855 | 3,760 | 3,639 | 3,614 | ||||||||||||
| Prepaid expenses | 741 | 1,372 | 1,513 | 2,107 | ||||||||||||
| Bank owned life insurance | 12,065 | 11,785 | 11,691 | 9,521 | ||||||||||||
| Other assets | 14,822 | 14,177 | 11,311 | 8,117 | ||||||||||||
| Total assets | $ | 927,051 | $ | 875,340 | $ | 897,724 | $ | 715,641 | ||||||||
| Liabilities and stockholders’ equity: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Demand and NOW | $ | 263,480 | $ | 253,849 | $ | 254,611 | $ | 202,690 | ||||||||
| Savings and money market | 387,275 | 343,437 | 351,078 | 310,237 | ||||||||||||
| Time | 130,369 | 171,066 | 186,275 | 108,851 | ||||||||||||
| Total deposits | 781,124 | 768,352 | 791,964 | 621,778 | ||||||||||||
| Federal Home Loan Bank advances | 44,000 | 1,220 | 2,728 | — | ||||||||||||
| Accrued expenses and other liabilities | 9,109 | 10,410 | 8,316 | 6,667 | ||||||||||||
| Total liabilities | 834,233 | 779,982 | 803,008 | 628,445 | ||||||||||||
| Stockholders’ equity | 92,818 | 95,358 | 94,716 | 87,196 | ||||||||||||
| Total liab. and stockholders’ equity | $ | 927,051 | $ | 875,340 | $ | 897,724 | $ | 715,641 | ||||||||
| Other Financial Information | ||||||||||||||||
| Allowance for loan losses | $ | 9,748 | $ | 9,124 | $ | 8,582 | $ | 9,897 | ||||||||
| Nonperforming assets | $ | 15,728 | $ | 19,124 | $ | 25,555 | $ | 21,845 | ||||||||
| Total gross loans | $ | 567,912 | $ | 550,687 | $ | 556,131 | $ | 453,618 | ||||||||
“During the third quarter, the Bank’s loan production activity was up substantially. Borrowers are beginning to make additional real estate investments in our service area. Overall, our assets grew by 2.8% during the quarter. Our stockholders’ equity increased during the third quarter by 3.0% and we remain “well capitalized” by regulatory definitions. As our capital base will allow, it is the intent of our Board to make additional redemptions of outstanding Small Business Lending Program preferred stock. The Oceanic Bank purchase has been fully integrated into the operations of the Company and our capital is growing in line with our growth in assets. Steps taken by management to prudently reduce our future noninterest expenses by closing some of our branch offices is making a difference. Our salary and benefit costs were $213,000 lower during the third quarter of 2013 when compared to the prior quarter. We understand that we must meet or exceed our customer’s expectations relative to their banking experience with us in order for us to continue to grow and be a positive influence in the communities we serve. For 50 years, we have built our organization around the idea that we must continually earn our customer’s business,” continued CEO Tom 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.