Financial Highlights: Fourth Quarter, 2010 Consolidated Statements of Earnings (in '000s except earnings per share amounts) Three Three months months Year Year ended ended ended ended December December December December 31 2010 31 2009 31 2010 31 2009 --------- --------- --------- --------- Interest income $ 8,396 $ 8,980 $ 34,428 $ 35,817 Interest expense 1,015 2,037 5,383 9,011 --------- --------- --------- --------- Net interest income 7,381 6,943 29,045 26,806 Provision for loan losses (825) (900) (1,854) (4,596) Noninterest income 1,269 1,111 4,706 5,377 Noninterest expense 6,556 6,970 27,005 27,575 --------- --------- --------- --------- Income before income taxes 1,269 184 4,892 12 Income tax expense (benefit) 372 (331) 1,227 (581) --------- --------- --------- --------- Net earnings 897 515 3,665 593 Dividends and discount accretion on preferred stock 213 213 853 632 --------- --------- --------- --------- Net earnings (loss) available to common shareholders $ 684 $ 302 $ 2,812 $ (39) ========= ========= ========= ========= Basic earnings per share $ 0.20 $ 0.09 $ 0.84 ($ 0.01) Diluted earnings per share $ 0.20 $ 0.09 $ 0.84 ($ 0.01) Average assets $ 729,677 $ 708,546 $ 729,309 $ 683,829 Average equity $ 81,929 $ 78,946 $ 80,709 $ 77,367 Return on average assets (annualized) 0.37% 0.17% 0.39% -0.01% Return on average equity (annualized) 3.34% 1.53% 3.48% -0.05% Efficiency ratio 76% 87% 80% 86% Net interest margin (taxable equivalent) 4.88% 4.61% 4.80% 4.47% Average shares outstanding 3,341 3,341 3,341 3,341 Average diluted shares outstanding 3,341 3,350 3,341 3,362 Financial Highlights: Fourth Quarter, 2010 Consolidated Balance Sheets (in '000s) As of As of December December 31, 2010 31, 2009 ---------- ---------- Assets: Cash and cash equivalents $ 60,874 $ 62,853 Securities available for sale 126,189 97,188 Loans, net 474,828 494,349 Premises, equipment and leasehold improvements, net 13,535 11,784 Other real estate owned 6,680 7,320 Goodwill 1,841 1,841 Other assets 30,692 32,974 ---------- ---------- Total assets $ 714,639 $ 708,309 ========== ========== Liabilities and stockholders' equity: Deposits: Demand and NOW $ 197,650 $ 177,883 Savings and money market 305,390 293,758 Time 125,400 127,323 ---------- ---------- Total deposits 628,440 598,964 Federal Home Loan Bank advances -- 25,000 Accrued expenses and other liabilities 5,275 5,480 ---------- ---------- Total liabilities 633,715 629,444 Stockholders' equity 80,924 78,865 ---------- ---------- Total liab. and stockholders' equity $ 714,639 $ 708,309 ========== ========== Other Financial Information Allowance for loan losses $ 9,524 $ 9,829 Nonperforming assets $ 23,392 $ 32,912 Total gross loans $ 484,352 $ 504,178"The credit outlook for our local economy is slowly improving. However, unemployment rates remain stubbornly high, commercial real estate valuations have yet to completely stabilize, foreclosure levels and residential mortgage defaults continue to make headline news, federal, state and local budgets are under significant strains, and we continue to work through the deleveraging process that naturally occurs during a significant recession. Our Bank continues to manage our credit risks in a prudent manner, trying to find solutions that make sense for the Bank as well as our customers. Management attention has been focused on risk management of our existing loan portfolio and in improving asset quality during all of 2010. During the fourth quarter of 2010, profitability levels were still not at historical levels; however, the Bank has the capital, liquidity, and management capability to take advantage of market opportunities that become available and to grow the Bank during the coming year. During 2011, we are committed to growing our loan portfolio and are actively seeking new loan and deposit customers who want a local community bank that knows and understands their financial needs. We want our customers to know that we are committed to them and to the communities that we serve. We look forward to the opportunity to continue to provide for the banking needs of our customers, as we have done for the last 47 years," 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