FPB Financial Corp. (OTCQB: FPBF), the Holding Company for Florida Parishes Bank, Announces 2014 Third Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwired - Oct 23, 2014) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the period ended September 30, 2014. 

FPB Financial Corp. reported the following for the period ending September 30, 2014, and as compared to September 30, 2013:

• Total Assets increased to $224.3 million or 10.8%
  
  
• Net Loans increased by $18.9 million or 16.7%
  
  
• Net Interest Income increased by $474,000, or 7.3%
  
  
• Non-Interest Income Increased by $201,000, or 45.3%
  
  
• Non-Interest bearing deposits increased to $43.2 million or 20.0%
  
  
• Non-Maturity deposits increased by $11.2 million or 9.2%
  
  
• Dividend paid to common shareholders increased to $252,000 or 31.7%
  
  
• Non-performing Assets decreased to $1.5 million or 22.6%
  
  
• Common Stockholders' equity increased by $4.3 million or 23.5%
  
  
• Common Book Value per share increased to $18.65, or 9.3%
  
  

Earnings

Net income for the third quarter of 2014 totaled $592,000, an increase of 23.3% from $480,000 in the third quarter of 2014. Net income in the 2014 second quarter totaled $446,000. The 2014 third quarter net income per fully diluted common share was $0.49, up from $0.45 per fully diluted common share in the third quarter of 2013. Earnings per share increased 8.9% primarily due to a 12.8% increase in net interest income and a 45.3% increase in total non-interest income which was offset by a 13.6% increase in non-interest expense and an increase in the average total common shares outstanding. Return on common stockholders' equity (ROE) was 10.6% on an annualized basis for the 2014 third quarter period.

Total non-interest expense increased by $261,000 in the third quarter when compared to the 2013 period, primarily due to a $162,000 increase in compensation and employee benefits, related to the hiring of new officers and staff for our recently opened branch and mortgage loan office located in Covington, LA and in Mandeville, LA., respectfully.

Provision for loan losses totaled $75,000 in the period as compared to -0- in the 2013 period.

The Company's effective tax rate decreased in the period due to the 2013 investment in BOLI and due to investments in municipal securities.

Asset Quality

Total non-performing assets at September 30, 2014 decreased $435,000 to $1.5 million when compared to September 30, 2013. Total non-performing assets on June 30, 2014 were $1.8 million. The Company's allowance for loan losses decreased to $2.8 million as compared to $3.2 million at September 30, 2013. Total allowance for loan losses were $2.8 million at June 30, 2014.

Net loan charge-offs in the third quarter totaled $100,000 up from $84,000 in the third quarter of 2013. In the second quarter of 2014, net loan charge-offs totaled $22,000.

Performing Troubled Debt Restructured (TDR's) as of September 30, 2014 totaled $2.9 million, or an increase of $488,000 from September 30, 2013. Performing TDR's totaled $2.9 million on June 30, 2014.

Balance Sheet and Capital

Total assets at September 30, 2014 increased to $224.3 million, or 10.8% as compared to September 30, 2013. Total assets on June 30, 2014 were $216.6 million. The increase in total assets was primarily attributed to an increase of $18.9 million in Net Loans and $4.1 million of BOLI. Total liabilities increased by 9.6% to $201.9 million primarily due to an increase of $14.7 million, or 9.2% in deposits to $175.3 million at September 30, 2014 compared to $160.6 million at September 30, 2013. Federal Home Loan Bank (FHLB) Advances increased by $5.0 million to $22.7 million at September 30, 2014 as compared to $17.7 million at September 30, 2013. Non-interest bearing deposits and total non-maturity deposits both increased in the twelve month period September 30, 2014.

Common Stockholders' Equity increased by a net of $4.3 million, or 23.5% to $22.4 million for the twelve month period ending September 30, 2014, primarily due to the October 11, 2013 sale of 129,075 shares of our common stock at a price of $16.00 per share in a private placement for the total net sale proceeds of $2.0 million. Retained earnings increased by $1.6 million in the twelve month period. Other comprehensive income increased by $603,000, or 82.6% at September 30, 2014 when compared to September 30, 2013. Book value per common share increased to $18.65 as total common shares of 1,201,557 were outstanding at September 30, 2014.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of September 30, 2014.

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.

FPB Financial Corp.
Selected Balances		Sept. 30, 2014		Sept. 30, 2013		% Change			June 30, 2014		% Change
		(Unaudited)		(Unaudited)					(Unaudited)
Tangible Common Stockholders' Equity		22,411,468		18,146,908		24	%		21,764,077		3	%
Net Loans		132,080,832		113,165,148		17			125,728,515		5
Foreclosed Assets		68,000		361,067		(81	)		0		-
Non-Performing Assets (Includes Foreclosed Assets)		1,493,422		1,928,701		(23	)		1,842,896		(19	)
Allowance for Loan Losses		2,805,475		3,186,015		(12	)		2,830,652		(1	)
Total Assets		224,326,211		202,384,931		11			216,622,073		4
Non-Interest Bearing Deposits		43,224,862		36,033,709		20			42,539,401		2
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)		132,844,713		121,619,702		9			131,935,775		1
Brokered Deposits (Included in interest-bearing deposits)		1,549,540		2,459,461		(37	)		1,798,280		(14	)
FHLB Advances		22,673,000		17,716,500		28			20,418,000		11

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months									For the Nine Months
			Ended									Ended
			Sept. 30, 2014			June 30, 2014			Sept. 30, 2013			Sept. 30, 2014			Sept. 30, 2013
			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)			(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	2,017,494		$	1,844,756		$	1,856,595		$	5,678,249		$	5,725,511
	Consumer Loans			245,461			258,377			259,697			756,815			755,089
	Commercial Loans			168,892			148,328			97,639			429,524			274,767
	Investment Securities and Deposits			292,941			293,409			229,430			873,159			592,168
TOTAL INTEREST AND DIVIDEND INCOME				2,724,788			2,544,870			2,443,361			7,737,747			7,347,535
INTEREST EXPENSE:
	Deposits			160,622			149,318			151,947			461,034			514,397
Federal Home Loan Bank Advances				68,715			68,122			75,461			207,556			236,534
Other				26,432			26,361			26,691			78,665			79,894
TOTAL INTEREST EXPENSE				255,769			243,801			254,099			747,255			830,825
	NET INTEREST INCOME			2,469,019			2,301,069			2,189,262			6,990,492			6,516,710
Provisions for loan losses				75,000			0			0			75,000			181,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				2,394,019			2,301,069			2,189,262			6,915,492			6,335,710
NON-INTEREST INCOME:
Service charge on deposits				187,106			199,674			235,077			618,924			669,827
Interchange Fees				119,300			107,562			110,700			335,244			322,437
Mortgage Banking Fees				105,206			104,208			106,198			297,622			497,249
Loan Fees and Charges				108,884			65,436			32,057			235,480			115,292
Gain on bank owned life insurance				37,278			36,815			0			109,841			0
Gain/(Loss) on Sale of Investments and Foreclosed Assets				33,100			8,147			(88,008	)		69,680			(85,574	)
Gain/(Loss) on Trading Accounts				(4,463	)		(10,798	)		648			(30,173	)		17,069
Other				57,502			50.962			46,506			196,933			177,759
TOTAL NON-INTEREST INCOME				643,913			562,006			443,178			1,833,551			1,714,059
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,244,628			1,243,814			1,082,659			3,737,218			3,253,239
Occupancy, local and state taxes, and equipment				315,539			287,222			260,650			865,999			786,755
Technology and Information Processing				192,460			214,874			203,584			601,734			522,102
Professional Fees				65,867			76,653			92,107			217,571			208,964
Regulatory Fees				50,966			50,870			48,320			150,337			159,193
Foreclosed Assets				5,946			4,795			8,440			44,309			76,950
Other				304,107			351,492			223,240			982,747			766,941
TOTAL NON-INTEREST EXPENSE				2,179,513			2,229,720			1,919,000			6,599,915			5,774,144
INCOME BEFORE INCOME TAXES				858,419			633,355			713,440			2,149,128			2,275,625
Income Tax Expense				266,895			187,778			233,446			646,507			754,529
NET INCOME				591,524			445,577			479,994			1,502,621			1,521,096
PER COMMON SHARE DATA:
(Adjusted for 3 for 1 stock split)
Net Earnings			$	0.49		$	0.37		$	0.45		$	1.25		$	1.43
Diluted Net Earnings			$	0.49		$	0.37		$	0.45		$	1.25		$	1.42
Revenue (Net Interest Income and Non-Interest Income)			$	2.59		$	2.38		$	2.47		$	7.35		$	7.74
Dividends Paid			$	0.07		$	0.07		$	0.06		$	0.21		$	0.18
Book Value (Period End)			$	18.65		$	18.12		$	17.02		$	18.65		$	17.02
Book Value adjusted for Other comprehensive income (Period Ended)			$	18.76		$	18.34		$	17.71		$	18.76		$	17.71
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				1.07	%		0.84	%		0.95	%		0.94	%		1.02	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				10.60	%		8.30	%		10.63	%		9.33	%		11.28	%
Net Interest Margin (Average) for the period				4.95	%		4.86	%		4.77	%		4.88	%		4.81	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.76	%		3.16	%		2.92	%		2.98	%		2.73	%
Efficiency Ratio for the Period				70.02	%		77.88	%		72.90	%		74.80	%		70.15	%
Net Loan Charge-Offs (Recoveries) for the Period to Average Period Net Loans			$	100,176		$	21,487			83,507		$	273,472		$	203,799
(Annualized)				0.31	%		0.07	%		0.29	%		0.30	%		0.24	%
TDRs (Performing) at Period End			$	2,878,020		$	2,905,005		$	2,390,264		$	2,878,020		$	2,390,264
	to Average Period Net Loans			2.23	%		2.39	%		2.11	%		2.34	%		2.08	%
Non-Performing Assets at Period			$	1,493,422		$	1,842,896		$	1,928,701		$	1,493,422		$	1,928,701
	End to Average Period Total Assets			0.68	%		0.87	%		0.96	%		0.70	%		0.97	%
Allowance for Loan Losses at Period End			$	2,805,475		$	2,830,652		$	3,186,015		$	2,805,475		$	3,186,015
	to Average Period Net Loans			2.18	%		2.33	%		2.81	%		2.28	%		2.77	%
	to Non-Performing Assets at Period End			187.86	%		153.60	%		165.19	%		187.86	%		165.19	%

CONSOLIDATED STATEMENTS OF CONDITION
			Sept. 30, 2014				Sept. 30, 2013				% Change			June 30, 2014				% Change
			(Unaudited)				(Unaudited)							(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	10,729,294			$	9,737,748			10			$	9,444,417			14
Certificates of Deposit				0				1,994,000			-				0			-
Securities - Held to Maturity				5,694,069				4,563,195			25				5,698,479			0
Securities - Available for Sale				60,015,549				59,450,958			1				59,981,455			0
Trading Securities				163,506				186,226			(12	)			167,969			(3	)
Bank Owned Life Insurance				4,120,959				0			-				4,084,581			1
Net Loans				132,080,832				113,165,148			17				125,728,515			5
Accrued Interest Receivable				825,267				762,599			8				880,523			(6	)
Premises and Equipment, Net				9,347,985				9,111,881			3				9,325,698			0
Foreclosed Assets				68,000				361,109			(81	)			0			-
Other Assets				1,280,750				3,052,109			(58	)			1,310,436			(2	)
	TOTAL ASSETS		$	224,326,211			$	202,384,931			11			$	216,622,073			4
LIABILITIES:
Deposits				175,306,273				160,592,502			9				170,751,521			3
Federal Home Loan Bank Advances				22,673,000				17,716,500			28				20,418,000			11
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				842,470				2,836,021			(70	)			595,475			41
	TOTAL LIABILITIES		$	201,914,743			$	184,238,023			7			$	194,857,996			4
STOCKHOLDERS' EQUITY:
Common Stock			$	13,127			$	4,448			195			$	13,127			0
Capital Surplus				8,413,084				6,364,018			32				8,404,758			0
Retained Earnings				15,902,533				14,304,084			11				15,395,118			3
Unearned Compensation				(6,900	)			(12,339	)		44				(6,902	)		0
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				(126,908	)			(729,835	)		83				(258,556	)		51
Total Stockholders' Equity				22,411,468				18,146,909			24				21,764,077			3
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	224,326,211			$	202,384,931			11	%		$	216,622,073			4	%

Fritz W. Anderson II, Chairman of the Board, announced today that, "On October 9, 2014, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.07 per share will be paid on December 26, 2014 to stockholders of record at the close of business on December 10, 2014."