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)
| January | 30, 2015 |
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):
£ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
£ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
£ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
£ 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, today announced financial highlights of operating results for the quarter ended December 31, 2014.
A copy of the News Release issued by the registrant on January 30, 2015, 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 January 30, 2015, announcing financial highlights of operating results for the quarter ended December 31, 2014. |
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: January 30, 2015. | By: | /s/ Dave A. Curtis |
| Dave A. Curtis | ||
| Senior Vice President and | ||
| Chief Financial Officer | ||
Exhibit 99.01
Press Release
Available for Immediate Publication: January 30, 2015
First National Bank of Northern California Reports Fourth Quarter 2014 Earnings of $0.44 Per Diluted Share
Source: FNB Bancorp (CA) (QTCQB: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 (QTCQB: FNBG), parent company of First National Bank of Northern California (the “Bank”), today announced net earnings available to common shareholders for the fourth quarter of 2014 of $4,123,000 or $0.94 per diluted share, compared to net earnings available to common shareholders of $2,013,000 or $0.47 per diluted share for the fourth quarter of 2013. During the fourth quarter of 2014, FNB Bancorp reversed $1,095,000 out of the provision for loan losses due to improving credit metrics within the loan portfolio. In addition, the Company recorded a pretax gain of $2,085,000 from the sale of our S. Airport Boulevard, South San Francisco building and we received a $500,000 pretax breakup fee related to the Valley Community Bank definitive purchase agreement that was terminated. During the fourth quarter of 2014, Valley Community Bank signed a new definitive agreement to be purchased by Bay Commercial Bank. For the year ended December 31, 2014 asset growth was 2.8%, loan growth was 5.5% and deposit growth was 2.4%.
“The fourth quarter of 2014 provided the Bank a favorable loan production environment, with the annualized loan growth rate for the quarter at 9.7%. Credit metrics continued to improve during the fourth quarter, which allowed management to reverse a little over $1 million from our allowance for loan losses. The Bank recorded net recoveries of $841 thousand during the year ended December 31, 2014 and ended the year with an allowance for loan losses / gross loans ratio of 1.64%. Increases in our deposit balance during the fourth quarter were led by growth of 19.7% in our NOW accounts, primarily due to an influx of public agency NOW deposits towards the end of the year. The Bank’s Certificates of Deposit accounts experienced net inflows of $1.1 million during the quarter. Net deposit outflows for the quarter in our non-interest bearing deposit balances were $5.8 million, and included declines in both our individual and business products. Federal home loan balances were reduced by $7 million during the fourth quarter to end the year at $9 million”, stated Tom McGraw, CEO.
| Financial Highlights: Fourth Quarter, 2014 | (Unaudited) | |||||||||||||||
| Three months | Three months | Year | Year | |||||||||||||
| Consolidated Statements of Earnings | ended | ended | ended | ended | ||||||||||||
| (in ’000s except earnings per share amounts) | December 31, | December 31, | December 31, | December 31, | ||||||||||||
| 2014 | 2013 | 2014 | 2013 | |||||||||||||
| Interest income | $ | 9,315 | $ | 9,375 | $ | 36,859 | $ | 37,389 | ||||||||
| Interest expense | 531 | 514 | 2,093 | 2,395 | ||||||||||||
| Net interest income | 8,784 | 8,861 | 34,766 | 34,994 | ||||||||||||
| (Recovery) provision for loan losses | (1,095 | ) | 50 | (1,020 | ) | 1,385 | ||||||||||
| Noninterest income | 3,522 | 1,137 | 6,589 | 4,183 | ||||||||||||
| Noninterest expense | 6,761 | 6,954 | 27,868 | 29,028 | ||||||||||||
| Income before income taxes | 6,640 | 2,994 | 14,507 | 8,764 | ||||||||||||
| Provision for income taxes | (2,517 | ) | (995 | ) | (5,098 | ) | (1,325 | ) | ||||||||
| Net earnings | 4,123 | 1,999 | 9,409 | 7,439 | ||||||||||||
| Dividends and discount accretion on preferred stock | — | (14 | ) | 170 | 567 | |||||||||||
| Net earnings available to common shareholders | $ | 4,123 | $ | 2,013 | $ | 9,239 | $ | 6,872 | ||||||||
| Basic earnings per share | $ | 0.97 | $ | 0.48 | $ | 2.18 | $ | 1.66 | ||||||||
| Diluted earnings per share | $ | 0.94 | $ | 0.47 | $ | 2.12 | $ | 1.63 | ||||||||
| Average assets | $ | 914,250 | $ | 912,819 | $ | 901,533 | $ | 903,825 | ||||||||
| Average equity | $ | 94,500 | $ | 93,679 | $ | 90,938 | $ | 93,166 | ||||||||
| Return on average assets, annualized | 1.80 | % | 0.88 | % | 1.02 | % | 0.76 | % | ||||||||
| Return on average equity, annualized | 17.45 | % | 8.60 | % | 10.16 | % | 7.38 | % | ||||||||
| Efficiency ratio | 55 | % | 70 | % | 67 | % | 74 | % | ||||||||
| Net interest margin (taxable equivalent) | 4.17 | % | 4.24 | % | 4.14 | % | 4.31 | % | ||||||||
| Average shares outstanding | 4,256 | 4,163 | 4,232 | 4,132 | ||||||||||||
| Average diluted shares outstanding | 4,389 | 4,292 | 4,367 | 4,225 | ||||||||||||
| Financial Highlights: Fourth Quarter, 2014 | As of | As of | ||||||
| Consolidated Balance Sheets | December 31, | December 31, | ||||||
| (in ’000s) | 2014 | 2013 | ||||||
| Assets: | ||||||||
| Cash and due from banks | $ | 14,978 | $ | 14,007 | ||||
| Interest-bearing time deposits with other financial institutions | 2,784 | 5,543 | ||||||
| Securities available for sale, at fair value | 264,881 | 263,988 | ||||||
| Loans, net | 583,715 | 552,343 | ||||||
| Premises, equipment and leasehold improvements, net | 10,951 | 12,512 | ||||||
| Bank owned life insurance | 12,510 | 12,151 | ||||||
| Other equity securities | 5,769 | 5,300 | ||||||
| Accrued interest receivable | 3,725 | 3,808 | ||||||
| Other real estate owned, net | 763 | 5,318 | ||||||
| Goodwill | 1,841 | 1,841 | ||||||
| Prepaid expenses | 1,045 | 701 | ||||||
| Other assets | 14,202 | 14,418 | ||||||
| Total assets | $ | 917,164 | $ | 891,930 | ||||
| Liabilities and stockholders’ equity: | ||||||||
| Deposits: | ||||||||
| Demand and NOW | $ | 292,359 | $ | 279,269 | ||||
| Savings and money market | 394,676 | 370,194 | ||||||
| Time | 105,159 | 124,152 | ||||||
| Total deposits | 792,194 | 773,615 | ||||||
| Federal Home Loan Bank advances | 9,000 | 15,000 | ||||||
| Note payable | 5,550 | — | ||||||
| Accrued expenses and other liabilities | 13,332 | 9,066 | ||||||
| Total liabilities | 820,076 | 797,681 | ||||||
| Stockholders’ equity | 97,088 | 94,249 | ||||||
| Total liabilities and stockholders’ equity | $ | 917,164 | $ | 891,930 | ||||
| Other Financial Information | ||||||||
| Allowance for loan losses | $ | 9,700 | $ | 9,879 | ||||
| Nonperforming assets | $ | 5,906 | $ | 12,669 | ||||
| Total gross loans | $ | 593,415 | $ | 562,222 | ||||
“During the fourth quarter, the Bank’s taxable equivalent net interest margin dropped 3 basis points to 4.17% for the quarter. The Bank continues to build the loan portfolio at pricing that is prudent and underwriting standards that are conservative. The Bank benefitted from a significant increase in non-interest income during the quarter, driven by two significant transaction; the receipt of a $500,000 termination fee and the sale of our S. Airport Blvd. branch building. The termination fee was paid to the Bank by Valley Community Bank after Valley Community Bank terminated our definitive purchase agreement and signed a new definitive agreement to be purchased by Bay Commercial Bank. The S. Airport Blvd. branch was closed and ceased it’s branch operations on September 30, 2013. During the fourth quarter of 2014, the building was sold in an all cash transaction that resulted in a pretax gain of approximately $2.1 million. Non-interest expenses declined 2.8% during the fourth quarter due primarily to reductions in salary and benefits costs. Management has worked with the Board of Directors to keep salary and benefit costs as low as is reasonably possible. Capital ratios continued to increase during the quarter, with the Bank finishing the year with a Tier 1 leverage capital ratio of 10.79%, a Tier 1 risk-based capital ratio of 13.88% and total risk-based capital of 15.13%” continued 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.