EX-99.01 2 ex99_01.htm EXHIBIT 99.01
 

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.