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)
July 28, 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):
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, today announced financial highlights of operating results for the quarter ended June 30, 2015.
A copy of the News Release issued by the registrant on July 28, 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 July 28, 2015, announcing financial highlights of operating results for the quarter ended June 30, 2015. |
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: July 28, 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: July 28, 2015
First National Bank of Northern California Reports Second Quarter 2015 Earnings of $0.47 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 second quarter of 2015 of $2,071,000 or $0.47 per diluted share, compared to net earnings available to common shareholders of $1,629,000 or $0.37 per diluted share for the second quarter of 2014. During the second quarter of 2015, total assets of FNB Bancorp surpassed the one billion dollar threshold. Deposits increased more than eighty-eight million dollars during this time period.
“The second quarter of 2015 was a quarter of significant growth for the Bank. About $18.5 million of the DDA account balance increase during the quarter is related to a single customer relationship that is expected to disburse these same dollars out of the Bank early in the third quarter. The increase of more than $50 million in our Savings and Money Market account balances during the quarter is related to a single customer relationship that is not expected to keep these additional funds with the Bank long term. The majority of the increase in the deposit base is reflected in the more than $61 million increase in our cash and cash equivalents during the quarter. The remainder of the deposit increase has been invested in available for sale securities during the quarter. Loan production was strong during the second quarter, but pay downs and pay offs within the loan portfolio caused our loan portfolio to decline in overall size during the quarter and for the first six months of 2015,” stated Tom McGraw, CEO.
| Financial Highlights: Second Quarter, 2015 | (Unaudited) | |||||||||||||||
| Three months | Three months | Six months | Six months | |||||||||||||
| Consolidated Statements of Earnings | ended | ended | ended | ended | ||||||||||||
| (in ’000s except earnings per share amounts) | June 30, | June 30, | June 30, | June 30, | ||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Interest income | $ | 9,300 | $ | 9,267 | $ | 18,368 | $ | 18,244 | ||||||||
| Interest expense | (595 | ) | (555 | ) | (1,109 | ) | (1,024 | ) | ||||||||
| Net interest income | 8,705 | 8,712 | 17,259 | 17,220 | ||||||||||||
| Provision for loan losses | (75 | ) | — | (150 | ) | (75 | ) | |||||||||
| Noninterest income | 1,267 | 980 | 2,345 | 2,026 | ||||||||||||
| Noninterest expense | (6,789 | ) | (7,210 | ) | (13,732 | ) | (14,052 | ) | ||||||||
| Income before provision for income taxes | 3,108 | 2,482 | 5,722 | 5,119 | ||||||||||||
| Provision for income tax | (1,037 | ) | (853 | ) | (1,852 | ) | (1,656 | ) | ||||||||
| Net earnings | 2,071 | 1,629 | 3,870 | 3,463 | ||||||||||||
| Dividends and discount accretion on preferred stock | — | — | — | (170 | ) | |||||||||||
| Net earnings available to common shareholders | $ | 2,071 | $ | 1,629 | $ | 3,870 | $ | 3,293 | ||||||||
| Basic earnings per share | $ | 0.48 | $ | 0.39 | $ | 0.90 | $ | 0.78 | ||||||||
| Diluted earnings per share | $ | 0.47 | $ | 0.37 | $ | 0.88 | $ | 0.76 | ||||||||
| Average assets | $ | 953,193 | $ | 898,817 | $ | 936,347 | $ | 894,211 | ||||||||
| Average equity | $ | 99,701 | $ | 89,063 | $ | 98,924 | $ | 88,863 | ||||||||
| Return on average assets (annualized) | 0.87 | % | 0.72 | % | 0.83 | % | 0.74 | % | ||||||||
| Return on average equity (annualized) | 8.31 | % | 7.32 | % | 7.82 | % | 7.41 | % | ||||||||
| Efficiency ratio | 68 | % | 74 | % | 70 | % | 73 | % | ||||||||
| Net interest margin (taxable equivalent) | 4.14 | % | 4.11 | % | 4.18 | % | 4.25 | % | ||||||||
| Average shares outstanding | 4,296 | 4,230 | 4,285 | 4,207 | ||||||||||||
| Average diluted shares outstanding | 4,415 | 4,367 | 4,409 | 4,349 | ||||||||||||
| Financial Highlights: Second Quarter, 2015 | (Unaudited) | * | (Unaudited) | * | ||||||||||||
| As of | As of | As of | As of | |||||||||||||
| Consolidated Balance Sheets (in ’000s) | June 30, | December 31, | June 30, | December 31, | ||||||||||||
| 2015 | 2014 | 2014 | 2013 | |||||||||||||
| Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 91,662 | $ | 14,978 | $ | 21,682 | $ | 14,007 | ||||||||
| Interest-bearing time deposits with other financial institutions | 2,138 | 2,784 | 4,461 | 5,543 | ||||||||||||
| Securities available for sale, at fair value | 295,171 | 264,881 | 267,795 | 263,988 | ||||||||||||
| Loans, net | 571,665 | 583,715 | 560,432 | 552,343 | ||||||||||||
| Premises, equipment and leasehold improvements, net | 10,527 | 10,951 | 12,429 | 12,512 | ||||||||||||
| Other real estate owned, net | 806 | 763 | 754 | 5,318 | ||||||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||||||
| Other equity securities | 6,069 | 5,769 | 5,576 | 5,300 | ||||||||||||
| Accrued interest receivable | 3,909 | 3,725 | 3,674 | 3,808 | ||||||||||||
| Prepaid expenses | 922 | 1,045 | 504 | 701 | ||||||||||||
| Bank owned life insurance | 12,681 | 12,510 | 12,337 | 12,151 | ||||||||||||
| Other assets | 12,437 | 14,202 | 13,945 | 14,418 | ||||||||||||
| Total assets | $ | 1,009,828 | $ | 917,164 | $ | 905,430 | $ | 891,930 | ||||||||
| Liabilities and stockholders’ equity: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Demand and NOW | $ | 351,113 | $ | 292,359 | $ | 286,017 | $ | 279,269 | ||||||||
| Savings and money market | 437,092 | 394,676 | 397,457 | 370,194 | ||||||||||||
| Time | 104,935 | 105,159 | 106,748 | 124,152 | ||||||||||||
| Total deposits | 893,140 | 792,194 | 790,222 | 773,615 | ||||||||||||
| Federal Home Loan Bank advances | — | 9,000 | 7,000 | 15,000 | ||||||||||||
| Note payable | 5,250 | 5,550 | 5,850 | — | ||||||||||||
| Accrued expenses and other liabilities | 11,001 | 13,332 | 11,215 | 9,066 | ||||||||||||
| Total liabilities | 909,391 | 820,076 | 814,287 | 797,681 | ||||||||||||
| Stockholders’ equity | 100,437 | 97,088 | 91,143 | 94,249 | ||||||||||||
| Total liabilities and stockholders’ equity | $ | 1,009,828 | $ | 917,164 | $ | 905,430 | $ | 891,930 | ||||||||
| * Exracted from the audited annual financial statements | ||||||||||||||||
| Other Financial Information | ||||||||||||||||
| Allowance for loan losses | $ | 9,836 | $ | 9,700 | $ | 10,859 | $ | 9,879 | ||||||||
| Nonperforming assets | $ | 6,826 | $ | 6,411 | $ | 6,217 | $ | 12,669 | ||||||||
| Total gross loans | $ | 581,501 | $ | 593,415 | $ | 571,291 | $ | 562,222 | ||||||||
“Net interest margins declined during the second quarter of 2015 primarily due to new loan production originated at interest rates that were lower than existing rates on paid off loans and a decline in the proportion of interest earning assets that were deployed within our loan portfolio. Management continues to pursue loan growth thoughtfully in a prudent and conservative fashion. The quality of our loan portfolio and our earnings stream are evidence of this commitment. During the second quarter of 2015, our earnings stream also benefited from an increase in noninterest income that was primarily the result of a significant Federal Home Loan Bank of San Francisco dividend indirectly related to a $459 million dollar legal settlement entered into by the Federal Home Loan Bank of San Francisco with certain lenders involved in $19.1 billion dollars of mortgage related investment securities purchased by the Federal Home Loan Bank of San Francisco from mid-2004 to 2008. Noninterest expenses declined during the quarter due primarily to continued reductions in legal and loan collection related costs,” continued Tom McGraw.
“Our previously announced purchase of America California Bank is on schedule to close late in the third quarter of 2015. By combining the talents and resources of America California Bank with and into First National Bank of Northern California, we strive to position ourselves to service the combined customer base of both institutions in the San Francisco financial district from our existing Battery Street branch location and to increase the scale of our operations. We continue to focus our efforts on growing our Company through a combination of strategic acquisitions and organic growth in San Francisco and on the San Francisco peninsula,” stated 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.