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| 8-K - FORM 8-K - FNB BANCORP/CA/ | fnb_8k.htm |
Exhibit 99.01
Press Release
Available for Immediate Publication: July 30, 2012
First National Bank of Northern California Reports Second Quarter 2012 Earnings of $0.30 Per Diluted Share
Source:FNB Bancorp (CA) (Bulletin Board:FNBG)
South San Francisco, California
Website: www.fnbnorcal.com
Contacts:
Tom McGraw, Chief Executive Officer (650) 875-4864
Dave Curtis, Chief Financial Officer (650) 875-4862
FNB Bancorp (Bulletin Board: FNBG), parent company of First National Bank of Northern California (the “Bank”), today announced net earnings available to common shareholders for the second quarter of 2012 of $1,071,000 or $0.30 per diluted share, compared to net earnings available to common shareholders of $966,000 or $0.27 per diluted share for the second quarter of 2011. Dividend payments on the preferred shares outstanding were made as required by the Treasury Department’s Small Business Lending Program. Total assets as of June 30, 2012 were $748,750,000 compared to $718,448,000 as of June 30, 2011. Our net loan totals declined by $6,456,000 or 1.4% during the second quarter of 2012 when compared to the second quarter of 2011, and our deposits increased $23,335,000 or 3.7% during the same time period. The Company’s liquidity position remains strong with $203,548,000 in available for sale securities and $44,856,000 in cash and cash equivalents as of June 30, 2012.
During March, 2012, FNB Bancorp entered into a Stock Purchase Agreement whereby FNB Bancorp agreed to acquire all the outstanding shares of Oceanic Bank Holding, Inc., the sole shareholder of Oceanic Bank, in San Francisco, CA. This purchase is subject to regulatory approval.
“First National Bank of Northern California was able to continue to grow our loan and deposit portfolios during the second quarter of 2012. Earnings available to common shareholders during the second quarter were again in excess of $1 million dollars. The level of nonperforming loans continues to be high by historical standards, but workout programs are in place and proceeding. The result of these programs should become evident by improvement in the level of nonperforming assets during the second half of 2012. We continue to work with our borrowers through loan workout and modification programs in order to provide the best outcome possible for the Bank and our loan customers,” stated Tom McGraw, Chief Executive Officer.
Financial Highlights: Second Quarter, 2012
Consolidated Statements of Earnings
(in '000s except earnings per share amounts)
| Three months | Three months | Six months | Six months | |||||||||||||
| ended | ended | ended | ended | |||||||||||||
| June 30, | June 30, | June 30, | June 30, | |||||||||||||
| 2012 | 2011 | 2012 | 2011 | |||||||||||||
| Interest income | $ | 7,878 | $ | 8,270 | $ | 15,760 | $ | 16,489 | ||||||||
| Interest expense | 653 | 857 | 1,337 | 1,741 | ||||||||||||
| Net interest income | 7,225 | 7,413 | 14,423 | 14,748 | ||||||||||||
| Provision for loan losses | (400 | ) | (400 | ) | (800 | ) | (850 | ) | ||||||||
| Noninterest income | 1,415 | 1,389 | 3,335 | 2,402 | ||||||||||||
| Noninterest expense | 6,498 | 6,772 | 13,551 | 13,520 | ||||||||||||
| Income before income taxes | 1,742 | 1,630 | 3,407 | 2,780 | ||||||||||||
| Provision for income taxes | (514 | ) | (450 | ) | (891 | ) | (797 | ) | ||||||||
| Net earnings | 1,228 | 1,180 | 2,516 | 1,983 | ||||||||||||
| Dividends and discount accretion on preferred stock | 157 | 214 | 343 | 428 | ||||||||||||
| Net earnings available to common shareholders | $ | 1,071 | $ | 966 | $ | 2,173 | $ | 1,555 | ||||||||
| Basic earnings per share | $ | 0.30 | $ | 0.28 | $ | 0.62 | $ | 0.44 | ||||||||
| Diluted earnings per share | $ | 0.30 | $ | 0.27 | $ | 0.61 | $ | 0.44 | ||||||||
| Average assets | $ | 750,351 | $ | 713,116 | $ | 742,895 | $ | 711,994 | ||||||||
| Average equity | $ | 88,476 | $ | 82,638 | $ | 88,177 | $ | 82,007 | ||||||||
| Return on average assets | 0.57 | % | 0.54 | % | 0.59 | % | 0.44 | % | ||||||||
| Return on average equity | 4.84 | % | 4.68 | % | 4.93 | % | 3.79 | % | ||||||||
| Efficiency ratio | 75 | % | 77 | % | 76 | % | 79 | % | ||||||||
| Net interest margin (taxable equivalent) | 4.46 | % | 4.98 | % | 4.54 | % | 4.97 | % | ||||||||
| Average shares outstanding | 3,514 | 3,509 | 3,512 | 3,509 | ||||||||||||
| Average diluted shares outstanding | 3,576 | 3,521 | 3,563 | 3,528 | ||||||||||||
Certain ratios in this table have been annualized.
Financial Highlights: Second Quarter, 2012
Consolidated Balance Sheets
(in '000s)
| As of | As of | As of | As of | |||||||||||||
| June 30, | December 31, | June 30, | December 31, | |||||||||||||
| 2012 | 2011 | 2011 | 2010 | |||||||||||||
| Assets: | ||||||||||||||||
| Cash and cash equivalents | $ | 44,856 | $ | 38,474 | $ | 68,654 | $ | 60,874 | ||||||||
| Securities available for sale | 203,548 | 187,664 | 143,164 | 126,189 | ||||||||||||
| Loans, net | 453,300 | 443,721 | 459,756 | 474,828 | ||||||||||||
| Premises, equipment and leasehold improvements, net | 12,916 | 13,227 | 13,647 | 13,535 | ||||||||||||
| Other real estate owned | 1,923 | 2,747 | 2,438 | 6,680 | ||||||||||||
| Goodwill | 1,841 | 1,841 | 1,841 | 1,841 | ||||||||||||
| Other equity securities | 4,603 | 4,608 | 4,929 | 5,246 | ||||||||||||
| Accrued interest receivable | 3,621 | 3,614 | 3,074 | 3,765 | ||||||||||||
| Prepaid expenses | 1,609 | 2,107 | 1,966 | 2,843 | ||||||||||||
| Bank owned life insurance | 11,594 | 9,521 | 9,361 | 9,195 | ||||||||||||
| Other assets | 8,939 | 8,117 | 9,618 | 9,643 | ||||||||||||
| Total assets | $ | 748,750 | $ | 715,641 | $ | 718,448 | $ | 714,639 | ||||||||
| Liabilities and stockholders’ equity: | ||||||||||||||||
| Deposits: | ||||||||||||||||
| Demand and NOW | $ | 223,341 | $ | 202,690 | $ | 201,150 | $ | 197,650 | ||||||||
| Savings and money market | 323,372 | 310,237 | 313,744 | 305,390 | ||||||||||||
| Time | 105,130 | 108,851 | 113,614 | 125,400 | ||||||||||||
| Total deposits | 651,843 | 621,778 | 628,508 | 628,440 | ||||||||||||
| Accrued expenses and other liabilities | 7,586 | 6,667 | 6,010 | 5,275 | ||||||||||||
| Total liabilities | 659,429 | 628,445 | 634,518 | 633,715 | ||||||||||||
| Stockholders’ equity | 89,321 | 87,196 | 83,930 | 80,924 | ||||||||||||
| Total liab. and stockholders’ equity | $ | 748,750 | $ | 715,641 | $ | 718,448 | $ | 714,639 | ||||||||
| Other Financial Information | ||||||||||||||||
| Allowance for loan losses | $ | 8,458 | $ | 9,897 | $ | 9,719 | $ | 9,524 | ||||||||
| Nonperforming assets (1) | $ | 20,953 | $ | 21,845 | $ | 18,282 | $ | 23,392 | ||||||||
| Total gross loans | $ | 461,758 | $ | 453,618 | $ | 469,475 | $ | 484,352 | ||||||||
(1) Nonperforming assets in this table are the sum of nonaccrual loans and other real estate owned
“During the second quarter, we were able to continue to grow our balance sheet. Our loan pipeline has recently improved, and we hope to be able to fund more loans and increase the size of our loan portfolio during the remainder of 2012. We have recently hired an additional loan officer for our Sunnyvale loan production center in the belief that we have significant lending opportunities available to us in Santa Clara county. It is our intent to eventually gain regulatory approval to make this location a full service branch. We believe the key to the success of our Bank is our ability to grow our franchise through means that make sense. We believe that our growth is best achieved through thoughtful strategic acquisitions, such as the Oceanic Bank purchase, as well as organic growth and branch expansion, as evidenced by our commitment to our Sunnyvale loan production office. During the second quarter of 2012, the Bank also increased our overnight cash positions in anticipation of regulatory approval to purchase Oceanic Bank. Once the purchase is approved and completed, management expects to adopt a deposit rate structure for Oceanic Bank’s brokered deposits that mirror the rate structure utilized by First National Bank of Northern California. Management believes this may cause some deposit runoff, but should positively affect the overall operations of the combined entities,” continued 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.