FPB Financial Corp. Announces 2012 Fourth Quarter Results and Declares Dividends

HAMMOND, LA--(Marketwire - Jan 25, 2013) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the fourth quarter ended December 31, 2012.

Earnings

Net income for the fourth quarter of 2012 increased to $452,000; ($1.28 per fully diluted common share) as compared to the 2011 fourth quarter net income of $420,000 ($1.19 per fully diluted common share.)

Net income for 2012 totaled $1.9 million; ($5.25 per fully diluted common share) up 2.1% from the 2011 net income of $1.8 million ($5.08 per fully diluted common share.)

Items contributing to the Company's fourth quarter earnings when compared to the 2011 period were; a decrease of $171,000 in total non-interest expense, primarily due to a $235,000 decrease in foreclosed assets expense; total non-interest income increase by $70,000, primarily due to a $23,000 increase in interchange fees. Provisions for loan losses adversely affected net income, increasing 60% to $240,000.

Asset Quality

Total Non-performing assets at December 31, 2012 increased $1.9 million, or 36.4%, to $4.1 million when compared to December 31, 2011. Non-performing assets on September 30, 2012 were $4.3 million.

Net loan charge-offs for the fourth quarter totaled $67,000, up $161,000 from the 2011 fourth quarter total of ($94,000.) Net loan charge-offs in the 2012 third quarter were $233,000. For the 2012 twelve month period, net loan charge-offs increased to $721,000 from $254,000 in 2011.

Performing Troubled Debt Restructured (TDR's) as of December 31 totaled $3.4 million, or a decrease of $200,000 from December 31, 2011. Performing TDR's on September 30, 2012 totaled $3.7 million.

The Company recorded a provision for loan losses in the 2012 fourth quarter of $240,000, a 60.4% increase from the 2011 period. Provisions for 2012 totaled $897,000, up from $656,000 recorded in 2011. The Company's allowance for loan losses was $3.2 million on December, 31, 2012, or 2.6% of average net loans and 78.2% of non-performing assets. The allowance on December 31, 2011 was $3.0 million, or 2.5% of average net loans and 99.0% of non-performing assets.

Balance Sheet and Capital

Total Assets on December 31, 2012 increased to $197.9 million, or 13.3% from $174.6 million on December 31, 2011. Total Assets on September 30, 2012 were $191.6 million. Available for sale investment securities increased during the 2012 twelve month period 88.2% to $48.4 million. Cash and cash equivalents including interest and non-interest deposits increased $4.7 million or 70.6% while net loans decreased to $120.0 million or 5.0%. Non-interest bearing deposits and total non-maturity deposits both increased in 2012, 58.4% and 32.6% respectively.

Common Stockholders' equity increased by a net of $1.6 million, or 9.8% to $17.7 million for the twelve month period ending December 31, 2012, primarily due to an increase of $1.5 million in retained earnings. Tangible Common Equity increased to a total of $17.5 million. Tangible Book Value per share increased to $49.47 at year-end. 

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of December 31, 2012.

FPB Financial Corp. reported the following for the period ending December 31, 2012, and as compared to December 31, 2011:

• Net Income increased to $1.9 million, or 2.1%
  
  
• Tangible Common Stockholders' Equity increased $1.6 million, or 10.2%
  
  
• Tangible Common Book Value per share increased to $49.47, or 9.4%
  
  
• Common Dividends Paid to Shareholders increased to $307,000, or 7.2%
  
  
• Non-Interest Income increased to $2.5 million, or 20.6%
  
  
• Net Interest Income increased to $8.7 million, or 4.4%
  
  
• Revenue per share increased to $31.93, or 8.9%
  
  
• Total Assets increased to $197.9 million, or 13.3%
  
  
• Non-Interest Bearing deposits increased to $36.1 million, or 58.4%
  
  
• Non-maturity Deposits increased by $28.9 million, or 32.6%
  
  
• Allowance for Loan Losses increased to $3.2 million, or 7.8%
  
  

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		Dec 31, 2012			Dec 31, 2011			% Change			Sept 30, 2012			% Change
											(Unaudited)
Tangible Common Stockholders' Equity		$	17,517,532		$	15,900,488		10	%		$	17,135,803		2	%
Total Common Stockholders' Equity			17,712,573			16,132,126		10				17,332,526		2
Non-Interest Bearing Deposits			36,086,737			22,776,068		58				31,328,579		15
Non-Maturity Deposits (Included in interest and non-interest bearing deposits)			117,728,693			88,806,588		33				107,330,746		10
Total Assets			197,854,896			174,599,780		13				191,593,859		3
Net Loans			119,757,079			126,309,461		(5	)			121,581,212		(2	)
Allowance for Loan Losses			3,208,815			2,976,683		8				3,035,642		6
Foreclosed Assets			1,043,322			1,133,388		(8	)			1,056,127		(1	)
Non-Performing Assets (Includes Foreclosed Assets)			4,101,905			3,007,078		36				4,322,086		(5	)
Brokered Deposits (Included in interest- bearing deposits)			6,555,092			7,116,816		(8	)			6,549,958		0
FHLB Advances			15,591,803			25,361,627		(39	)			19,990,524		(22	)

CONSOLIDATED STATEMENTS OF EARNINGS
			For the Three Months									For the Twelve Months
			Ended									Ended
			Dec 31, 2012			Sept 30, 2012			Dec 31, 2011			Dec 31, 2012			Dec 31, 2011
						(Unaudited)
INTEREST AND DIVIDEND INCOME:
	Mortgage Loans		$	1,993,949		$	2,029,301		$	2,061,602		$	8,205,934		$	8,116,890
	Consumer Loans			227,645			233,079			233,039			902,482			940,976
	Commercial Loans			50,971			54,302			71,999			237,702			271,623
	Consumer & Commercial Lines of Credit			49,010			49,500			42,284			191,358			168,541
	Investment Securities and Deposits			244,108			158,817			156,553			681,064			530,099
TOTAL INTEREST AND DIVIDEND INCOME				2,565,683			2,524,999			2,565,477			10,218,540			10,028,129
INTEREST EXPENSE:
	Deposits			218,433			232,213			209,010			915,270			977,992
Federal Home Loan Bank Advances				113,901			112,893			148,157			487,226			604,567
Other				27,108			28,152			27,106			112,292			106,812
TOTAL INTEREST EXPENSE				359,442			373,258			384,273			1,514,788			1,689,371
	NET INTEREST INCOME			2,206,241			2,151,741			2,181,204			8,703,752			8,338,758
Provisions for loan losses				240,000			250,000			149,640			897,000			656,468
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES				1,966,241			1,901,741			2,031,564			7,806,752			7,682,290
NON-INTEREST INCOME:
Mortgage Banking Fees				196,512			193,839			177,812			754,185			731,221
Service charge on deposits				197,283			182,657			216,906			735,137			793,911
Interchange Fees				120,516			115,659			97,636			445,148			373,392
Loan Fees and Charges				59,307			49,413			47,375			204,725			178,607
Gain/(Loss) on Sale of Investments and Foreclosed Assets				15,626			89,760			(4,295	)		293,720			5,581
Gain/(Loss) on Trading Accounts				840			(3,092	)		(5,814	)		(8,686	)		(93,076	)
Other				29,955			22,872			20,409			110,173			111,617
TOTAL NON-INTEREST INCOME				620,039			651,108			550,029			2,534,402			2,101,253
NON-INTEREST EXPENSE:
Compensation and Employee Benefits				1,049,168			1,092,555			1,029,834			4,306,195			3,895,945
Occupancy and Equipment				219,263			206,792			215,862			844,083			828,133
Technology and Information Processing				174,374			137,384			145,890			599,143			564,122
Regulatory Fees				76,290			87,492			2,726			327,912			327,102
Professional Fees				77,627			90,828			73,609			302,972			242,479
Foreclosed Assets				26,186			21,361			260,854			93,998			283,318
Other				284,237			279,343			349,368			1,082,025			965,916
TOTAL NON-INTEREST EXPENSE				1,907,145			1,915,755			2,078,143			7,556,328			7,107,015
INCOME BEFORE INCOME TAXES				679,135			637,094			503,450			2,784,826			2,676,528
Income Tax Expense				227,504			216,612			153,927			928,042			858,287
NET INCOME				451,631			420,482			349,523			1,856,784			1,818,241
PER COMMON SHARE DATA:
Net Earnings			$	1.28		$	1.19		$	1.00		$	5.27		$	5.11
Diluted Net Earnings			$	1.28		$	1.19		$	0.99		$	5.25		$	5.08
Revenue (Net Interest Income and Non-Interest Income)			$	8.02		$	7.96		$	7.81		$	31.93		$	29.33
Dividends Paid			$	0.36		$	0.18		$	0.36		$	0.87		$	0.81
Book Value Period End			$	50.02		$	49.24		$	45.89		$	50.02		$	45.89
Tangible Book Value Period End			$	49.47		$	48.68		$	45.23		$	49.47		$	45.23
RATIOS:
ROA (Annualized Net Income to Average Period Assets)				0.88	%		0.89	%		0.80	%		0.98	%		1.04	%
ROE (Annualized Net Income to Average Period Total Stockholders' Equity)				10.19	%		9.71	%		8.66	%		10.91	%		11.70	%
Net Interest Margin (Average) for the period				4.74	%		4.96	%		5.49	%		5.00	%		5.12	%
Non-Interest Expense less Non-Interest Income to Average Period Total Assets (Annualized)				2.52	%		2.66	%		3.50	%		2.64	%		2.86	%
Efficiency Ratio for the Period				67.48	%		68.35	%		76.14	%		67.24	%		68.07	%
Net Loan Charge-Offs (Recoveries) for the			$	66,827		$	233,062			(93,929	)	$	721,468		$	254,132
	Period to Average Period Net Loans (Annualized)			0.22	%		0.75	%		(0.30	%)		0.59	%		0.21	%
TDRs (Performing) at Period End			$	3,351,121		$	3,747,371		$	3,632,371		$	3,351,121		$	3,632,371
	to Average Period Net Loans			2.78	%		3.05	%		2.94	%		2.72	%		2.98	%
Non-Performing Assets at Period			$	4,101,905		$	4,322,086		$	3,007,078		$	4,101,905		$	3,007,078
	End to Average Period Total Assets			2.02	%		2.29	%		1.74	%		2.15	%		1.72	%
Allowance for Loan Losses at Period End			$	3,208,815		$	3,035,642		$	2,976,683		$	3,208,815		$	2,976,683
	to Average Period Net Loans			2.66	%		2.47	%		2.41	%		2.60	%		2.46	%
	to Non-Performing Assets at Period End			78.23	%		70.24	%		98.99	%		78.23	%		98.99	%

CONSOLIDATED STATEMENTS OF CONDITION
			Dec 31, 2012				Dec 31, 2011				% Change			Sept 30,  2012				% Change
														(Unaudited)
ASSETS:
Cash and Cash Equivalents including Interest and Non-Interest Earning Deposits			$	11,674,524			$	6,695,951			74	%		$	9,522,606			23	%
Certificates of Deposit				4,235,000				5,239,000			(19	)			4,235,000			0
Securities- Held to Maturity				1,081,508				0			-				0			-
Securities - Available for Sale				48,444,962				25,735,921			88				44,471,396			9
Trading Securities				189,937				243,069			(22	)			189,098			0
Net Loans				119,757,079				126,309,461			(5	)			121,581,212			(2	)
Accrued Interest Receivable				796,447				622,775			28				574,456			39
Premises and Equipment, Net				9,052,566				7,870,052			15				8,447,000			7
Foreclosed Assets				1,043,322				1,133,388			(8	)			1,056,127			(1	)
Other Assets				1,579,551				750,163			111				1,516,964			4
	TOTAL ASSETS		$	197,854,896			$	174,599,780			13			$	191,593,859			3
LIABILITIES:
Deposits				160,663,155				129,335,554			24				150,411,580			7
Federal Home Loan Bank Advances				15,591,803				25,361,627			(39	)			19,990,524			(22	)
Subordinated debentures/trust preferred securities				3,093,000				3,093,000			0				3,093,000			0
Other Liabilities				794,365				677,476			17				766,229			4
	TOTAL LIABILITIES		$	180,142,323			$	158,467,657			14			$	174,261,333			3
STOCKHOLDERS' EQUITY:
Common Stock			$	4,437			$	4,431			0			$	4,433			0
Capital Surplus				6,335,022				6,274,941			1				6,283,971			1
Retained Earnings				12,974,449				11,424,555			14				12,650,272			3
Unearned Compensation				(12,908	)			(19,974	)		35				(19,405	)		33
Treasury Stock				(1,783,468	)			(1,783,468	)		0				(1,783,468	)		0
Other Comprehensive Income (Loss)				195,041				231,638			(16	)			196,723			(1	)
Total Stockholders' Equity				17,712,573				16,132,123			10				17,332,526			2
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY			$	197,854,896			$	174,599,780			13	%		$	191,593,859			3	%

Fritz W. Anderson II, Chairman of the Board announced today that "On January 10, 2013, 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 of $0.18 per share and will be paid on March 25, 2013 to stockholders of record at the close of business on March 8, 2013."