HAMMOND, LA — (Marketwired) — 07/23/13 — FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended June 30, 2013.
FPB Financial Corp. reported the following for the six months ended June 30, 2013, and as compared to six months ending June 30, 2012:
Net Income increased to $1.0 million or 5.7%
Diluted Net Income per share increased to $2.93 or 5.0%
Net Interest Income after provision for loan losses increased to $4.1 million or 5.3%
Non-Interest Income increased to $1.3 million or 0.4%
Net Loan Charge-Offs decreased to $120,000 or 71.5%
Dividend paid to common shareholders increased to $127,000 or 9.8%
Other items and per share data of note as of June 30, 2013, compared to June 30, 2012:
Non-performing Assets decreased to $1.9 million or 53.3%
Tangible Book Value per share increased to $50.77 or 6.5%
Total Assets increased to $200.4 million or 6.4%
Non-Maturity Deposits increased to $121.7 million or 19.2%
Allowance for Loan Losses increased to $3.3 million or 8.3%
Earnings
Net income for the second quarter of 2013 totaled $502,000, a decrease of 4.6% from $526,000 in the second quarter of 2012. Net income per fully diluted common share was $1.41 down from $1.49 per fully diluted common share earned in the second quarter of 2012. Return on common stockholders- equity (ROE) was 11.0% for the period.
Second quarter earnings when compared to the second quarter of 2012 were positively affected by an $87,000 decrease in provision for loan losses. This was offset by a $54,000 increase in non-interest expenses, primarily due to expenses associated with foreclosed assets and other miscellaneous expenses. Non-interest income decreased by $71,000 in the period primarily due to a gain on sales of investments securities of $216,000 recorded in the 2012 second quarter. Income tax expense decreased to $248,000 in the 2013 period.
In the 2013 first quarter, in excess of $1.0 million of non-accrual loans were collected/paid off; these non-accrual loan pay-offs resulted in the Company reporting an increase of approximately $110,000 of non-accrual pre-tax interest income in the period ended March 31, 2013. The Company did not match this level of non-accrual interest recognition/collections in the 2013 second quarter and does not expect to match the first quarter level in the subsequent quarters during 2013.
Asset Quality
Total non-performing assets at June 30, 2013 decreased $2.1 million, or 53.3% to $1.9 million when compared to June 30, 2012. Total non-performing assets at March 31, 2013 were $2.9 million. The Company-s allowance for loan losses increased by $251,000 to $3.3 million compared to June 30, 2012. Total allowance for loan losses were unchanged at $3.3 million this period end compared to March 31, 2013.
Net loan charge-offs for the second quarter totaled $92,000, down from $160,000 in the 2012 second quarter. In the 2013 first quarter the Company-s net loan charge-offs were $28,000.
Performing Troubled Debt Restructured (TDR-s) as of June 30, 2013 totaled $2.4 million, or a decrease of 23.4% from June 30, 2012. Performing TDR-s decreased by $712,000 when compared to March 31, 2013.
Balance Sheet and Capital
Total assets at June 30, 2013 increased to $200.4 million, or 6.4% as compared to $188.2 million at June 30, 2012. The increase in total assets was primarily attributed to an increase of $16.6 million in available-for-sale investment securities, an increase of $4.6 million in held-to-maturity investment securities, and an increase of $1.2 million in net premises and equipment. Cash and cash equivalents increased by $1.2 million in the twelve month period. These increases were offset by an $11.1 million decrease in net loans. Total liabilities increased by 6.5% to $182.4 million primarily due to an increase of $17.9 million in total deposits to $164.4 million from $146.5 million at June 30, 2012 which was offset by a 33.8% decrease in Federal Home Loan Bank advances to $13.8 million at June 30, 2013. Non-interest bearing deposits and total non-maturity deposits increased by 24.2% and 19.2% respectively, in the twelve month period ended June 30, 2013.
Common stockholders- equity increased by a net of $1.0 million, or 6.1% to $18.0 million for the twelve month period ended June 30, 2013, primarily due to an increase of $1.6 million in retained earnings. Other comprehensive income decreased by $621,000 at June 30, 2013 when compared to June 30, 2012. Tangible common stockholders- equity increased to $18.0 million this period.
Our subsidiary, Florida Parishes Bank, is considered “well capitalized” by all applicable federal banking regulations and definitions as of June 30, 2013.
Private Placement Offering of Common Stock
FPB Financial Corp. anticipates that it will offer up to 100,000 shares of its common stock in a private placement to persons and entities who qualify as “accredited investor” under federal securities laws at a price of approximately $48 per share. The offering is expected to occur during the third quarter of 2013, although the exact terms and timing of the offering have not yet been determined. The purpose of the expected offering is to fund growth opportunities for Florida Parishes Bank. However, we anticipate that completion of the private placement will be initially dilutive to both book value per share and earnings per share. This release does not constitute an offer to sell the common stock or the solicitation of an offer to buy the common stock.
FPB Financial Corp. is headquartered in Hammond, LA and is the parent company of Florida Parishes Bank. The Company-s common stock is traded under the “FPBF” symbol.
This news release contains certain forward-looking statements, including statements about the financial condition, results of operations and earnings outlook for FPB Financial Corp. and its subsidiaries. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “estimate” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond the Company-s control, could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. These factors include, among others, the following: general economic conditions, changes in interest rates, deposit flows, the cost of funds, changes in credit quality, interest rate risks associated with the Company-s business and operations and the adequacy of our allowance for loan losses. Other factors include changes in our loan portfolio, changes in competition, fiscal and monetary policies and legislation and regulatory changes. We undertake no obligation to update any forward-looking statements.
Fritz W. Anderson, II, Chairman of the Board, announced today that, “On July 11, 2013, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.18 per share will be paid on September 25, 2013 to stockholders of record at the close of business on September 10, 2013.”
For more information contact:
Fritz W. Anderson, II
President, Chief Executive Officer,
and Chairman
FPB Financial Corp.
(985) 345-1880