Financial Highlights: Third Quarter, 2009 Consolidated Statements of Earnings (in '000s except earnings per share amounts) Three Three Nine Nine months months months months ended ended ended ended September September September September 30, 30, 30, 30, 2009 2008 2009 2008 --------- --------- --------- --------- Interest income $ 9,283 $ 9,787 $ 26,837 $ 29,815 Interest expense 2,293 2,725 6,974 8,888 --------- --------- --------- --------- Net interest income 6,990 7,062 19,863 20,927 Provision for loan losses (796) (300) (3,696) (1,590) Noninterest income 1,672 769 4,266 3,167 Noninterest expense 6,427 6,481 20,605 18,944 --------- --------- --------- --------- Interest before income taxes 1,439 1,050 (172) 3,560 Provision for income taxes (176) (3) 250 (536) --------- --------- --------- --------- Net earnings (loss) 1,263 1,047 78 3,024 Dividends and discount accretion on preferred stock 214 -- 419 -- Net earnings (loss) available to common --------- --------- --------- --------- shareholders $ 1,049 $ 1,047 $ (341) $ 3,024 ========= ========= ========= ========= Basic earnings per share $ 0.35 $ 0.34 ($ 0.11) $ 0.98 Diluted earnings per share $ 0.35 $ 0.34 ($ 0.11) $ 0.97 Average assets $ 694,806 $ 661,328 $ 675,487 $ 655,178 Average equity $ 78,525 $ 67,189 $ 76,834 $ 67,562 Return on average assets 0.60% 0.63% -0.20% 1.85% Return on average equity 5.34% 6.23% -1.78% 17.90% Efficiency ratio 74% 83% 85% 79% Net interest margin (taxable equivalent) 4.62% 4.75% 4.43% 4.78% Average shares outstanding 3,030 3,055 3,030 3,092 Average diluted shares outstanding 3,030 3,065 3,030 3,118 Financial Highlights: Third Quarter, 2009 Consolidated Balance Sheets (in '000s) As of As of As of As of September December September December 30, 31, 30, 31, 2009 2008 2008 2007 ---------- ---------- ---------- ---------- Assets: Cash and cash equivalents $ 46,371 $ 14,865 $ 17,873 $ 15,750 Securities available for sale 94,264 99,221 104,489 94,432 Loans, net 506,537 497,984 489,644 489,574 Premises, equipment and leasehold improvements 12,040 13,030 13,378 13,686 Other real estate owned 9,425 3,557 3,819 440 Goodwill 1,841 1,841 1,841 1,841 Other assets 28,835 30,459 29,252 28,742 ---------- ---------- ---------- ---------- Total assets $ 699,313 $ 660,957 $ 660,296 $ 644,465 ========== ========== ========== ========== Liabilities and stockholders' equity: Deposits: Demand and NOW $ 174,826 $ 179,688 $ 184,014 $ 181,638 Savings and money market 279,696 179,382 181,426 181,276 Time 130,645 141,840 155,030 136,341 ---------- ---------- ---------- ---------- Total deposits 585,167 500,910 520,470 499,255 Federal Home Loan Bank advances 30,000 86,100 66,000 66,000 Federal funds purchased - - - 5,595 Accrued expenses and other liabilities 5,218 5,798 7,275 7,070 ---------- ---------- ---------- ---------- Total liabilities 620,385 592,808 593,745 577,920 Stockholders' equity 78,928 68,149 66,551 66,545 ---------- ---------- ---------- ---------- Total liab. and stockholders' equity $ 699,313 $ 660,957 $ 660,296 $ 644,465 ========== ========== ========== ========== Other Financial Information Allowance for loan losses $ 9,424 $ 7,075 $ 6,031 $ 5,638 Nonperforming assets $ 32,164 $ 17,659 $ 15,694 $ 11,905 Total gross loans $ 515,961 $ 505,059 $ 495,675 $ 495,212"We are working very hard to insure our loan customers have the credit they need as they plan for the future. The Treasury Department has gone on record that they believe the recession may have ended. While that may be technically true, we are also acutely aware of the fragile real estate and business climate that currently exists. The strength of our balance sheet will allow us to grow our banking franchise locally in a safe and sound manner during a time when others may be required to sell assets and shrink their institutions," continued Mr. McGraw. "Management has had to make some painful decisions during the first nine months of 2009. Our level of OREO assets and nonperforming loans have steadily increased during the first nine months of 2009. Management has instituted plans that we believe will reduce the OREO and nonperforming levels in the near future. Management is committed to reducing nonperforming assets as soon as possible. We believe our decisions and proactive approach in dealing with troubled credits has paved the way for the Bank to attract new customers, grow our franchise, reduce future credit related problems and to provide a solid investment for our shareholders," stated 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