Financial Highlights: First quarter, 2007
Consolidated Statement of Earnings
(in ‘000s except earnings per share amounts)
Three Three
months ended months ended
March 31, 2007 March 31, 2006
Interest income $ 9,904 $ 8,837
Interest expense 3,086 1,951
-------------- --------------
Net Interest Income 6,818 6,886
Provision for loan losses (150) (193)
Non-interest income 1,004 2,316
Non-interest expense 5,758 5,486
-------------- --------------
Income before income taxes 1,914 3,523
Provision for income taxes (455) ( 1,075)
-------------- --------------
Net Earnings $ 1,459 $ 2,448
============== ==============
Basic earnings per share $ 0.51 $ 0.86
Diluted earnings per share $ 0.50 $ 0.84
Average assets $ 596,026 $ 561,555
Average equity $ 62,592 $ 56,583
Return on average assets 0.98% 1.74%
Return on average equity 9.32% 17.31%
Efficiency ratio 74% 60%
Net interest margin 5.12% 5.51%
Average number of shares outstanding 2,853 2,837
Average diluted shares outstanding 2,893 2,908
Consolidated Balance Sheets
(In ‘000s)
As of As of
March 31, 2007 March 31, 2006
--------------- ---------------
Assets
Cash and cash equivalents $ 40,151 $ 43,833
Securities available for sale 90,679 121,295
Loans, net 440,487 357,167
Premises, equipment and leasehold
improvements 13,723 12,361
Goodwill 1,841 1,841
Other assets 28,106 26,506
--------------- ---------------
Total assets $ 614,987 $ 563,003
=============== ===============
Liabilities and stockholders’
equity:
Deposits:
Demand and NOW $ 183,448 $ 180,996
Savings and money market 187,284 177,601
Time 143,805 139,487
--------------- ---------------
Total deposits 541,537 498,084
Federal Home Loan Bank advances 30,000 -
Accrued expenses and other liabilities 7,744 7,983
--------------- ---------------
Total liabilities 552,281 506,067
Stockholders’ equity 62,706 56,936
--------------- ---------------
Total liabilities and stockholders’
equity $ 614,987 $ 563,003
=============== ===============
"Our operating results during the first quarter of 2007 reflect the
difficult deposit gathering environment in which we operate. We have been
able to grow our total deposits by $43,453,000 or 8.7% year over year, yet
our demand and NOW deposit balances have showed a slower growth rate of
1.4%. Net loans increased $83,450,000 year over year, however our net
interest income declined by $68,000. The rate of increase in our funding
costs has been higher than the increase in rates earned on our interest
earning assets which has negatively affected our net interest margin. Our
increased non-interest expenses year over year were primarily the result of
increased marketing expenditures and increased technology expenses designed
to reduce future computer maintenance costs while giving the Company the
ability to scale our processing capability," stated Tom McGraw, Chief
Executive Officer.
"During 2007, we expect to be able to provide our customers with the latest
in technology driven products, including a merchant remote capture product.
We are committed to providing our customers the products they need coupled
with exemplary customer service. Our challenge during the year ahead is to
identify innovative ways to expand our business, manage the growth in our
noninterest expenses and provide a superior level of customer service,"
noted Mr. 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.
Contact Information: Contacts: Tom McGraw Chief Executive Officer (650) 875-4864 Dave Curtis Chief Financial Officer (650) 875-4862 Website: www.fnbnorcal.com