SOUTH SAN FRANCISCO, CA--(Marketwire - Nov 2, 2012) - FNB Bancorp (
On September 15, 2011, Preferred Stock was issued by FNB Bancorp to the U. S. Treasury as part of the U. S. Treasury's Small Business Lending Fund ("SBLF"). The initial dividend rate is 5%. Depending on the volume of our small business lending, it can decrease to as low as one percent. If our small business lending does not increase in the first two years, the rate will increase to seven percent. After 4.5 years, the dividend rate will increase to nine percent if the Company has not repaid the SBLF funding. The proceeds of this Preferred Stock investment were used to pay off the Preferred Stock Series A and B that were issued by the U. S. Treasury under the TARP program in 2009.
"With respect to the recent acquisition of Oceanic Bank, all the employees of Oceanic were offered employment with First National Bank of Northern California, so there were no layoffs that resulted from this transaction. Adding Oceanic Bank's locations, customers, and employee expertise to that of our own will give us a greater presence in San Francisco. During the third quarter of 2012, our nonperforming loans continued to decrease, excluding the nonperforming loans acquired in the Oceanic Bank merger and one large nonperforming credit relationship was paid off in full," stated Tom McGraw, Chief Executive Officer.
Financial Highlights: Third Quarter, 2012 | |||||||||||||||||
Consolidated Statements of Earnings | |||||||||||||||||
(in '000s except earnings per share amounts) | |||||||||||||||||
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Three months ended September 30, 2012 |
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Three months ended September 30, 2011 |
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Nine months ended September 30, 2012 |
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Nine months ended September 30, 2011 |
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Interest income | $ | 8,355 | $ | 8,241 | $ | 24,115 | $ | 24,730 | |||||||||
Interest expense | 663 | 842 | 2,000 | 2,583 | |||||||||||||
Net interest income | 7,692 | 7,399 | 22,115 | 22,147 | |||||||||||||
Provision for loan losses | (400 | ) | (450 | ) | (1,200 | ) | (1,300 | ) | |||||||||
Noninterest income | 4,770 | 1,367 | 8,105 | 3,769 | |||||||||||||
Noninterest expense | 6,631 | 6,783 | 20,182 | 20,303 | |||||||||||||
Income before income taxes | 5,431 | 1,533 | 8,838 | 4,313 | |||||||||||||
Income tax expense | 490 | 344 | 1,381 | 1,141 | |||||||||||||
Net earnings | 4,941 | 1,189 | 7,457 | 3,172 | |||||||||||||
Dividends and discount accretion on preferred stock | 158 | 372 | 501 | 800 | |||||||||||||
Net earnings available to common shareholders | $ | 4,783 | $ | 817 | $ | 6,956 | $ | 2,372 | |||||||||
Basic earnings per share | $ | 1.36 | $ | 0.23 | $ | 1.98 | $ | 0.68 | |||||||||
Diluted earnings per share | $ | 1.33 | $ | 0.23 | $ | 1.95 | $ | 0.67 | |||||||||
Average assets | $ | 787,264 | $ | 724,083 | $ | 757,792 | $ | 716,068 | |||||||||
Average equity | $ | 90,135 | $ | 84,574 | $ | 88,834 | $ | 82,872 | |||||||||
Return on average assets (annualized) | 2.43 | % | 0.45 | % | 1.22 | % | 0.44 | % | |||||||||
Return on average equity (annualized) | 21.23 | % | 3.86 | % | 10.44 | % | 3.82 | % | |||||||||
Efficiency ratio | 53 | % | 77 | % | 67 | % | 78 | % | |||||||||
Net interest margin (taxable equivalent) | 4.58 | % | 4.83 | % | 4.55 | % | 4.92 | % | |||||||||
Average shares outstanding | 3,516 | 3,509 | 3,513 | 3,509 | |||||||||||||
Average diluted shares outstanding | 3,583 | 3,528 | 3,569 | 3,528 | |||||||||||||
"During the third quarter, we demonstrated our ability to grow our deposits and our loan pipeline volumes are increasing. We have hired Stuart Keirle to enhance our business development efforts in San Francisco, and we have successfully expanded our lending reach into Santa Clara County with our loan production office in Sunnyvale. We are continually looking for ways to add value to our franchise, either through expansion of our branch and lending operations organically or through successful acquisitions. However, our primary objective has been, and will continue to be, to provide local banking services that our customers need with service levels that exceed expectations," continued Mr. McGraw.
Financial Highlights: Third Quarter, 2012 | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
(in '000s) |
As of September 30, 2012 |
As of December 31, 2011 |
As of September 30, 2011 |
As of December 31, 2010 |
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Assets: | ||||||||||||||
Cash and cash equivalents | $ | 70,803 | $ | 38,474 | $ | 69,273 | $ | 60,874 | ||||||
Securities available for sale | 228,805 | 187,664 | 152,376 | 126,189 | ||||||||||
Loans, net | 547,549 | 443,721 | 456,106 | 474,828 | ||||||||||
Premises, equipment and leasehold improvements, net | 12,761 | 13,227 | 13,399 | 13,535 | ||||||||||
Other real estate owned, net | 1,923 | 2,747 | 2,988 | 6,680 | ||||||||||
Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||||
Other equity securities | 5,888 | 4,608 | 4,768 | 5,246 | ||||||||||
Accrued interest receivable | 3,639 | 3,614 | 3,120 | 3,765 | ||||||||||
Prepaid expenses | 1,513 | 2,107 | 1,753 | 2,843 | ||||||||||
Other assets | 23,002 | 17,638 | 17,396 | 18,838 | ||||||||||
Total assets | $ | 897,724 | $ | 715,641 | $ | 723,020 | $ | 714,639 | ||||||
Liabilities and stockholders' equity: | ||||||||||||||
Deposits: | ||||||||||||||
Demand and NOW | $ | 254,611 | $ | 202,690 | $ | 201,823 | $ | 197,650 | ||||||
Savings and money market | 351,078 | 310,237 | 324,321 | 305,390 | ||||||||||
Time | 186,275 | 108,851 | 105,510 | 125,400 | ||||||||||
Total deposits | 791,964 | 621,778 | 631,654 | 628,440 | ||||||||||
Accrued expenses and other liabilities | 11,044 | 6,667 | 5,672 | 5,275 | ||||||||||
Total liabilities | 803,008 | 628,445 | 637,326 | 633,715 | ||||||||||
Stockholders' equity | 94,716 | 87,196 | 85,694 | 80,924 | ||||||||||
Total liab. and stockholders' equity | $ | 897,724 | $ | 715,641 | $ | 723,020 | $ | 714,639 | ||||||
Other Financial Information | ||||||||||||||
Allowance for loan losses | $ | 8,582 | $ | 9,897 | $ | 9,646 | $ | 9,524 | ||||||
Nonperforming assets | $ | 25,555 | $ | 21,845 | $ | 19,168 | $ | 23,392 | ||||||
Total gross loans | $ | 556,131 | $ | 453,618 | $ | 465,752 | $ | 484,352 | ||||||
On September 21, 2012, FNB Bancorp completed its purchase of Oceanic Bank Holding, Inc., the sole shareholder of Oceanic Bank. As part of the purchase transaction, Oceanic Bank Holding, Inc. was merged into FNB Bancorp, and Oceanic Bank was merged into First National Bank of Northern California. The assets and liabilities were valued at fair value at the time the purchase was completed. Listed below is a summary of the balance sheet of Oceanic Bank at acquisition, the preliminary estimates of the balance sheet effects of recording the assets and liabilities at fair value, and the post-merger balance sheet positions that were merged into First National Bank of Northern California. The purchase transaction was an all cash deal for $27,750,000, which resulted in a bargain purchase gain of $3,666,133 which is recorded as non-interest income.
Oceanic Bank | ||||||||||||||||
Statement of Financial Condition | ||||||||||||||||
As of Friday, September 21, 2012 PST | ||||||||||||||||
Description | |
Balance as of 9/21/2012 |
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Merger and Fair Market Adjustments (2) |
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Balance post merger |
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Assets | ||||||||||||||||
Cash and Due From Banks | $ | 9,297,624 | $ | (27,671,585 | ) | (1 | ) | $ | (18,373,961 | ) | ||||||
Time deposits | 17,096,333 | - | 17,096,333 | |||||||||||||
MBS and CMO securities | 5,292,917 | (209,612 | ) | 5,083,305 | ||||||||||||
Commercial paper investments | 8,303,735 | - | 8,303,735 | |||||||||||||
Gross loans | 107,483,947 | - | 107,483,947 | |||||||||||||
Loan purchase discount | - | (4,290,371 | ) | (4,290,371 | ) | |||||||||||
Less: Allowance for loan and lease losses | (1,902,092 | ) | 1,902,092 | - | ||||||||||||
Fixed assets and suspense accounts | 42,867 | - | 42,867 | |||||||||||||
Interest receivable | 396,587 | - | 396,587 | |||||||||||||
Prepaid assets | 96,586 | - | 96,586 | |||||||||||||
Deferred tax assets | 1,008,860 | 972,000 | 1,980,860 | |||||||||||||
Core deposit intangibles | - | 109,544 | 109,544 | |||||||||||||
Total assets | $ | 147,117,364 | $ | (29,187,932 | ) | $ | 117,929,432 | |||||||||
Liabilities | ||||||||||||||||
DDA and savings deposits | $ | 24,075,230 | - | $ | 24,075,230 | |||||||||||
Time deposits | 83,544,506 | 49,401 | 83,593,907 | |||||||||||||
Total deposits | $ | 107,619,736 | $ | 49,401 | $ | 107,669,137 | ||||||||||
FHLB Borrowings | 6,015,000 | 6,015,000 | ||||||||||||||
Deferred interest offset - FHLB Borrowings | - | 81,711 | 81,711 | |||||||||||||
Interest payable | 163,735 | - | 163,735 | |||||||||||||
Accounts payable | 333,716 | - | 333,716 | |||||||||||||
Total liabilities | $ | 114,132,187 | $ | 131,112 | $ | 114,263,299 | ||||||||||
Equity: | ||||||||||||||||
Capital Stock | $ | 10,000,000 | $ | (10,000,000 | ) | $ | - | |||||||||
Retained earnings | 22,086,214 | (22,086,214 | ) | - | ||||||||||||
Bargain purchase gain | - | 3,666,133 | 3,666,133 | |||||||||||||
YTD 2012 net earnings | 898,963 | (898,963 | ) | - | ||||||||||||
Total Equity | $ | 32,985,177 | $ | (29,319,044 | ) | $ | 3,666,133 | |||||||||
Total liabilities and equity | $ | 147,117,364 | $ | (29,187,932 | ) | $ | 117,929,432 | |||||||||
Footnotes: |
1) The $27,671,585 is the purchase price of $27,750,000 plus escrow costs less funds held in the name of Oceanic Holding, Inc. They are not fair value adjustments to book valuations. |
2) All fair market value adjustments contained in this schedule are based on the facts known at this time. Subsequent information may become available that could cause these fair market adjustments to change. |
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