FPB Financial Corp. Announces 2011 Second Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwire - Jul 21, 2011) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the second quarter ended June 30, 2011.

Earnings

Net income available to common shareholders was $405,000 with fully diluted available earnings per common share of $1.13. The 2011 second quarter diluted available earnings decreased slightly when compared to $1.15 for the same quarter a year ago and to $1.30 in the 2011 first quarter.

Items contributing to the Company's first quarter earnings when compared to the 2010 period were; a $177,000, or 101% increase in provisions for loan losses; a $106,000 decrease in dividends paid/accretion of discount on preferred stock; a $72,000, or 30.5% decrease in mortgage banking revenue; and a $64,000, or 28% decrease in income tax expense.

Second quarter total non-interest expenses decreased slightly when compared to the 2010 second quarter.

Asset Quality

Non-performing assets (including troubled debt restructured) on June 30, 2011 decreased $199,000, or 6.1% to $3.1 million when compared to June 30, 2010. Non-performing assets on March 31, 2011 totaled $2.8 million.

Net loan charge-offs for the second quarter totaled $225,000, down from $230,000 in the 2010 second quarter. Included in the quarter's loan charge-offs was a $223,000 charge-off of a previously noted real estate owned property involved in a parish zoning dispute. This property as of June 30 has a carrying value of $27,000 as compared to a carrying value of $250,000 on March 31, 2011.

Performing Troubled Debt Restructured (TDR's) as of June 30 totaled $3.4 million, or an increase of $1.6 million when compared to June 30, 2010. Performing TDR's on March 31, 2011 totaled $3.1 million.

The Company recorded a provision for loan losses in the second quarter of $352,000, a 101% increase over the 2010 period, primarily due to a discussed second quarter charge-off of an individual real estate owned parcel. The company's allowance for loan losses was $2.8 million on June 30, 2011, or 2.3% of average net loans, $2.3 million on June 30, 2010 and $2.7 million on March 31, 2011.

Balance Sheet and Capital

Total Assets on June 30, 2011 increased to $175.1 million, or 3.0% from $170.1 million on June 30, 2010, primarily due to a $14.1 million increase in investment, trading and mortgage-backed securities. Net loans decreased 6.4% to $122.3 million. Total deposits increased 4.4% to $132.0 million.

Tangible Common Stockholders' Equity increased $799,000, or 5.5% to $15.2 million for the twelve month period ending June 20, 2011, due to an increase of $1.6 million in retained earnings and due to an increase of $556,000 in treasury stock. The increase in treasury stock was due to the company completing the termination of its Employee Stock Ownership Plan (ESOP) and distributing the ESOP account balances to the ESOP participants during the second quarter of 2011.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of June 30, 2011.

FPB Financial Corp. reported the following for the period ending June 30, 2011, and as compared to June 30, 2010:

• Total Assets increased $5.0 million to $175.1 million, or 2.9%

• Non-Interest Bearing deposits increased to $23.9 million, or 18.9%

• Non-maturity Deposits increased $10.5 million, or 13.1%

• Dividends paid to common shareholders increased to $0.80 per share, or 2.6%

• Tangible Common Stockholders' Equity increased $800,000, or 5.5%

• Tangible Common Book Value per share increased to $43.11, or 9.9%

• Non-performing Assets decreased $199,000, or 6.1%

• Net Loan Charge-off decreased $23,000, or 8.6%

• Allowance for Loan Losses increased to $2.8 million

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		June 30, 2011			June 30, 2010			% Change			March 31, 2011			% Change
		(Unaudited)			(Unaudited)						(Unaudited)
Cash and Cash Equivalents		$	14,127,682		$	14,650,738		(4	%)		$	9,009,941		57	%
Investment, Trading, and Mortgaged-backed Securities			28,872,664			14,783,997		95				40,390,609		(29	)
Net Loans			122,310,968			130,665,499		(6	)			119,766,770		2
Other Real Estate Owned (OREO)			793,336			649,491		22				1,229,058		(35	)
Non-Performing Assets (Includes OREO)			3,071,596			3,270,674		(6	)			2,806,704		9
Allowance for Loan Losses			2,829,188			2,258,188		25				2,718,214		4
Total Assets			175,118,317			170,099,652		3				179,483,840		(2	)
Non-Interest Bearing Deposits			23,864,037			20,123,747		19				20,480,043		17
Interest-Bearing Deposits			108,124,732			106,357,036		2				112,507,012		(4	)
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			90,861,158			80,377,355		13				89,702,708		1
Brokered Deposits (Included in interest- bearing deposits)			7,128,026			6,152,947		16				7,194,851		(1	)
FHLB Advances			23,973,008			25,379,298		(6	)			27,279,702		(12	)
Subordinated Debentures/Trust Preferred Securities			3,093,000			3,093,000		0				3,093,000		0
Tangible Common Stockholders' Equity (Includes other comprehensive income (OCI))			15,208,798			14,410,112		6				15,369,469		(1	)

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months												For the Six Months
			Ended												Ended
			June 30, 2011				March 31, 2011				June 30, 2010				June 30, 2011				June 30, 2010
			(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
INTEREST INCOME:
Mortgage Loans			$	2,042,430			$	1,981,093			$	2,122,376			$	4,023,523			$	4,213,845
Consumer Loans				237,244				229,394				253,433				466,639				504,151
Commercial Loans				66,333				65,042				66,054				131,374				124,494
Consumer & Commercial Lines of Credit				42,570				40,049				38,877				82,619				73,994
Mortgage-backed securities				56,911				68,976				57,968				125,887				125,092
FHLB stock and other Investment, Trading Securities/Deposits				44,223				58,039				63,771				102,262				119,845
TOTAL INTEREST INCOME				2,489,711				2,442,593				2,602,479				4,932,304				5,161,421
INTEREST EXPENSE:
Deposits				250,193				297,908				396,882				548,101				761,168
Federal Home Loan Bank Advances				152,507				157,501				195,627				309,939				399,135
Other				26,942				26,312				26,756				53,323				52,665
TOTAL INTEREST EXPENSE				429,642				481,721				619,265				911,363				1,212,968
NET INTEREST INCOME				2,060,069				1,960,872				1,983,214				4,020,941				3,948,453
Provisions for loan losses				351,828				110,000				175,000				461,828				340,000
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				1,708,241				1,850,872				1,808,214				3,559,113				3,608,453
NON-INTEREST INCOME:
Service charge on deposits				188,381				165,232				193,448				353,613				379,209
Mortgage Banking				163,606				166,714				235,255				330,320				377,250
Interchange Fees				90,473				86,323				76,195				176,797				148,610
Loan Fees and Charges				41,580				43,094				25,246				84,673				57,786
Gain/(Loss) on Sale of Real Estate/Investments				(4,910	)			7,716				16,712				2,806				83,944
Gain/(Loss) on Investment Trading Accounts				(15,720	)			(8,693	)			(104	)			(24,412	)			39,727
Other				27,036				37,602				32,246				64,637				62,331
TOTAL NON-INTEREST INCOME				490,446				497,988				578,998				988,434				1,148,857
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				930,252				925,054				900,242				1,855,306				1,745,109
Occupancy, Property Taxes, and Equipment				200,905				198,992				183,246				399,897				366,360
Technology and Information Processing				135,529				135,565				143,438				271,094				270,835
Federal Deposit Insurance, Supervisory Fees/Taxes				112,244				110,337				85,285				222,581				173,713
Professional Fees				40,588				62,889				71,433				103,477				138,711
Other				210,996				192,802				249,346				403,798				435,287
TOTAL NON-INTEREST EXPENSE				1,630,514				1,625,639				1,632,990				3,256,153				3,130,015
INCOME BEFORE INCOME TAXES				568,173				723,221				754,222				1,291,394				1,627,295
Income Tax Expense				162,820				245,895				226,341				408,715				491,961
NET INCOME				405,353				477,326				527,881				882,679				1,135,334
Dividends Paid to Preferred Shareholders				0				0				42,545				0				74,190
Accretion of Discount on Preferred Stock				0				0				63,150				0				102,672
Net Income Available to Common Shareholders				$405,353				$477,326				$422,186				$882,679				$958,472
PER COMMON SHARE DATA:
Available Earnings			$	1.13			$	1.31			$	1.16			$	2.44			$	2.64
Diluted Available Earnings			$	1.13			$	1.30			$	1.15			$	2.42			$	2.61
Revenue (Net Interest Income and Non-Interest Income)				$7.11				$6.74				$7.05				$13.86				$14.04
Dividends Paid			$	0.15			$	0.15			$	0.14			$	0.30			$	0.28
Tangible Book Value Period End			$	43.11			$	41.82			$	39.23			$	43.11			$	39.23
RATIOS:
Net Income to Average Period Assets (Annualized)				0.91	%			1.10	%			1.23	%			1.00	%			1.36	%
Net Income to Average Period Total Stockholders' Equity (Annualized)				10.59	%			12.75	%			13.25	%			11.66	%			14.32	%
Net Interest Margin (Average) for the period				5.07	%			5.00	%			5.06	%			5.00	%			5.16	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.56	%			2.59	%			2.46	%			2.58	%			2.37	%
Efficiency Ratio for the Period				63.93	%			66.11	%			63.73	%			65.00	%			61.41	%
Net Loan Charge-Offs for the Period			$	224,526			$	22,733			$	230,187			$	247,259			$	270,421
	to Average Period Net Loans (Annualized)			0.74	%			0.08	%			0.70	%			0.41	%			0.41	%
TDRs (Performing) at Period End			$	3,433,778			$	3,142,668			$	1,814,138			$	3,433,778			$	1,814,138
	to Average Period Net Loans			2.84	%			2.63	%			1.37	%			2.86	%			1.38	%
Non-Performing Assets at Period			$	3,071,596			$	2,806,704			$	3,270,674			$	3,071,596			$	3,270,674
	End to Average Period Total Assets			1.72	%			1.59	%			1.91	%			1.73	%			1.94	%
Allowance for Loan Losses at Period End			$	2,829,188			$	2,718,214			$	2,258,188			$	2,829,188			$	2,258,188
	to Average Period Net Loans			2.34	%			2.28	%			1.71	%			2.35	%			1.71	%
	to Non-Performing Assets at Period End			92.11	%			96.85	%			69.04	%			92.11	%			69.04	%

CONSOLIDATED STATEMENTS OF CONDITION
			June 30, 2011				June 30, 2010				% Change			March 31, 2011				% Change
			(Unaudited)				(Unaudited)							(Unaudited)
ASSETS:
Cash and Cash Equivalents			$	14,127,682			$	14,650,738			(4	%)		$	9,009,941			57	%
Investment, Trading and Mortgage-Backed Securities				28,872,664				14,783,997			95				40,390,609			(29	)
Net Loans				122,310,968				130,665,499			(6	)			119,766,770			2
Premises and Equipment, Net				7,673,113				7,861,743			(2	)			7,754,061			(1	)
Other Real Estate Owned				793,336				649,491			22				1,229,058			(35	)
Other Assets				1,340,554				1,488,184			(10	)			1,333,401			1
	TOTAL ASSETS		$	175,118,317			$	170,099,652			3			$	179,483,840			(2	)
LIABILITIES:
Deposits				131,988,769				126,480,783			4				132,987,055			(1	)
Federal Home Loan Bank Advances				23,973,008				25,379,298			(6	)			27,279,702			(12	)
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				854,742				736,459			16				754,614			13
	TOTAL LIABILITIES		$	159,909,519			$	155,689,540			3			$	164,114,371			(3	)
STOCKHOLDERS' EQUITY:
Common Stock			$	4,285			$	4,283			0			$	4,284			0
Capital Surplus				6,258,751				6,244,738			0				6,258,751			0
Retained Earnings				10,668,116				9,111,912			17				10,315,248			3
Unearned Compensation				(45,012	)			(57,978	)		22				(45,012	)		0
Treasury Stock				(1,783,468	)			(1,227,321	)		(45	)			(1,227,321	)		(45	)
Other Comprehensive Income (Loss)				106,126				334,478			(68	)			63,519			67
Total Stockholders' Equity				15,208,798				14,410,112			6				15,369,469			(1	)
	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$175,118,317				$170,099,652			3	%			$179,483,840			(2	%)

Fritz W. Anderson II, Chairman of the Board announced today that "On July 14, 2011, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company bearing Cusip #302549 10 0. The dividend rate increased to $0.15 per share and will be paid on September 26, 2011 to stockholders of record at the close of business on September 9, 2011."