FNB BANCORP/CA/ - FORM 8-K - EX-99.01 - EXHIBIT 99.01

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8-K - FORM 8-K - FNB BANCORP/CA/	fnb_8k.htm

Exhibit 99.01

Press Release+

Available for Immediate Publication: April 26, 2017

First National Bank of Northern California Reports First Quarter 2017 Earnings of $0.62 Per Diluted Share

Source: FNB Bancorp (CA) (NASDAQ: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 (NASDAQ: FNBG), parent company of First National Bank of Northern California (the “Bank”), today announced net earnings available to common stockholders for the first quarter of 2017 of $3,089,000 or $0.62 per diluted share, compared to net earnings available to common shareholders of $2,567,000 or $0.52 per diluted share for the first quarter of 2016.

During the first quarter of 2017, our net interest income was $11.2 million, an increase of $475,000 from the first quarter of 2016. This increase was primarily the result of an increase in the average volume of our interest earning assets outstanding and the recognition of $307,000 of interest income related to accelerated accretion on the remaining discount associated with a loan acquired in our America California Bank acquisition that was paid in full.

“During the first quarter of 2017, the Company was able to grow our net loan portfolio by $25 million. This growth was funded with a combination of increased deposit balances of $5 million and an increase in short term FHLB borrowings of $15 million. Net interest income was also helped as the adjustable rate portion of our loan portfolio has begun to reset to higher yields. The current low rate environment has put pressure on our net interest margin, but we have added interest earning assets at spreads that have allowed us to expand our net interest income. Our net interest margin has continued to remain healthy at 3.98% and our increased earnings coupled with a flattening yield curve have allowed our capital base to increase by $4 million during the quarter. We are proud of our accomplishments, which are the result of our hard work and opportunities that allow us to meet our customers’ needs and provide them with the products they want at the time they want them”, stated CEO Tom McGraw.

“Our total non-accrual loans balance increased by $1.8 million during the first quarter. This increase is believed to be isolated to specific borrowers and not indicative on any portfolio segment credit deterioration. Loan charge-offs, net of recoveries, for the first three months of 2017 totaled $23,000. We continue to utilize a conservative underwriting approach in our loan origination process which should serve us well in the future. There was no first quarter provision for loan losses and our allowance for loan losses was considered by management to be sufficient, as of March 31, 2017”, continued Tom McGraw.

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
	(Unaudited)
	As of
	March 31,
	2017		2016
ASSETS
Cash and due from banks	$	25,337	$	37,737
Interest-bearing time deposits with financial institutions		205		205
Securities available for sale, at fair value		353,364		329,396
Other equity securities		7,211		6,756
Loans, net of deferred loan fees and allowance for loan losses		807,191		733,991
Bank premises, equipment and leasehold improvements, net		9,571		10,320
Bank owned life insurance		16,349		15,946
Accrued interest receivable		4,785		4,603
Other real estate owned		1,443		1,055
Goodwill		4,580		4,580
Prepaid expenses		768		945
Other assets		15,917		15,444
TOTAL ASSETS	$	1,246,721	$	1,160,978

LIABILITIES
Deposits:
Demand, noninterest bearing	$	287,029		$	265,947
Demand, interest bearing		125,643			113,337
Savings and money market		496,697			526,557
Time		115,622			124,410
Total Deposits		1,024,991			1,030,251
Federal Home Loan Bank advances		86,000			—
Note payable		4,200			4,800
Accrued expenses and other liabilities		17,198			17,230
Total Liabilities		1,132,389			1,052,281
STOCKHOLDERS’ EQUITY
Common stock, no par value:		84,603			75,240
Retained earnings		29,842			29,666
Accumulated other comprehensive (loss) earnings, net of tax		(113	)		3,791
Total Stockholders’ Equity		114,332			108,697
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,246,721		$	1,160,978

CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share amounts)
	(Unaudited)					(Extracted from audited annual financial statements)
	Three Months Ended					Twelve Months Ended
	March 31,					December 31,
	2017		2016			2016			2015
INTEREST INCOME
Interest and fees on loans	$	10,073	$	9,871		$	38,313		$	33,235
Interest on dividends and securities		1,943		1,685			7,156			6,008
Interest on deposits with other financial institutions		11		9			44			39
Total interest income		12,027		11,565			45,513			39,282

INTEREST EXPENSE
Deposits		637		783			2,780			2,359
Federal Home Loan Bank advances		145		8			67			9
Interest on note payable		53		57			222			229
Total interest expense		835		848			3,069			2,597
NET INTEREST INCOME		11,192		10,717			42,444			36,685
Provision for (recovery of) loan losses		—		75			150			(305	)
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES		11,192		10,642			42,294			36,990
NONINTEREST INCOME
Service charges		597		621			2,461			2,501
Net gain on sale of available-for-sale securities		28		184			438			339
Earnings on bank owned life insurance		102		100			402			364
Other income		283		229			1,294			1,292
Total Noninterest Income		1,010		1,134			4,595			4,496
NONINTEREST EXPENSES
Salaries and employee benefits		4,774		4,938			19,474			18,523
Occupancy expense		651		631			2,528			2,517
Equipment expense		402		434			1,765			1,926
Professional fees		473		387			1,363			1,471
FDIC assessment		130		150			600			600
Telephone, postage, supplies		297		295			1,199			1,074
Advertising expense		108		117			524			500
Data processing expense		139		192			657			1,076
Low income housing expense		105		71			284			283
Surety insurance		84		87			347			381
Director fees		72		72			288			288
Other real estate owned expense (recovery), net		10		(10	)		(5	)		4
Other expenses		360		423			1,668			1,282
Total Noninterest Expense		7,605		7,787			30,692			29,925
EARNINGS BEFORE PROVISION FOR INCOME TAXES		4,597		3,989			16,197			11,561
Provision for income taxes		1,508		1,422			5,696			3,364
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS	$	3,089	$	2,567		$	10,501		$	8,197

Per Share Data:
Basic earnings per share available to common stockholders	$	0.63	$	0.54		$	2.18		$	1.73
Diluted earnings per share available to common stockholders	$	0.62	$	0.52		$	2.12		$	1.68
Cash dividends declared	$	780	$	683		$	2,847		$	2,409
Average shares outstanding		4,867		4,777			4,822			4,742
Average diluted shares outstanding		5,012		4,921			4,945			4,876
Shares outstanding as of the end of period		4,874		4,794			4,853			4,769

FINANCIAL HIGHLIGHTS
(Dollars in thousands)
	(Unaudited)						(Extracted from audited annual financial statements)
	Three Months Ended						Twelve Months Ended
	March 31,						December 31,
	2017			2016			2016			2015
AVERAGE BALANCES:
Total Assets	$	1,233,278		$	1,146,493		$	1,163,454		$	1,010,435
Total Loans		807,741			743,282			746,829			629,814
Total Earning Assets		1,163,509			1,072,790			1,091,703			923,700
Total Deposits		1,013,065			1,012,268			1,017,398			890,369
Total Stockholder’s Equity		109,926			106,219			109,854			100,621

SELECTED PERFORMANCE DATA
Annualized return on average assets		1.00	%		0.90	%		0.90	%		0.81	%
Annualized return on average equity		11.24	%		9.67	%		9.56	%		8.15	%
Net interest margin (taxable equivalent)		3.98	%		4.10	%		3.97	%		4.06	%
Average loans as a percent of average deposits		79.73	%		73.43	%		73.41	%		70.74	%
Average total stockholders’ equity as a % of average total assets		8.91	%		9.26	%		9.44	%		9.96	%
Annualized common dividend payout ratio		25.25	%		26.61	%		27.11	%		29.39	%

NON-PERFORMING ASSETS
(Dollars In Thousands)
				(Extracted from audited annual
	(Unaudited)			financial statements)			(Unaudited)			(Unaudited)			(Unaudited)
	March 31,			December 31,			September 30,			June 30,			March 31,
	2017			2016			2016			2016			2016
Non-accrual loans	$	8,444		$	6,647		$	6,903		$	8,182		$	6,882
Other real estate owned		1,443			1,427			1,346			1,247			1,055
Total non-performing assets	$	9,887		$	8,074		$	8,249		$	9,429		$	7,937

Loan loss reserve	$	10,144		$	10,167		$	10,092		$	10,038		$	9,943
Non-accrual loans/Gross loans		1.03	%		0.84	%		0.92	%		1.11	%		0.93	%
Loan loss reserves/Gross loans		1.24	%		1.28	%		1.34	%		1.36	%		1.34	%

CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
				(Extracted from audited annual
	(Unaudited)			financial statements)			(Unaudited)		(Unaudited)		(Unaudited)
	March 31,			December 31,			September 30,		June 30,		March 31,
	2017			2016			2016		2016		2016
ASSETS
Cash and due from banks	$	25,337		$	15,758		$	17,342	$	20,564	$	37,737
Interest-bearing time deposits with financial institutions		205			205			204		205		205
Securities available for sale, at fair value		353,364			360,105			358,877		342,420		329,396
Other equity securities		7,211			7,206			7,206		7,206		6,756
Loans, net of deferred loan fees and allowance for loan losses		807,191			782,485			741,407		725,471		733,991
Bank premises, equipment and leasehold improvements, net		9,571			9,837			9,918		10,114		10,320
Bank owned life insurance		16,349			17,247			16,145		16,050		15,946
Accrued interest receivable		4,785			4,942			4,544		4,547		4,603
Other real estate owned		1,443			1,427			1,346		1,247		1,055
Goodwill		4,580			4,580			4,580		4,580		4,580
Prepaid expenses		768			856			670		783		945
Other assets		15,917			14,746			15,309		15,393		15,444
TOTAL ASSETS	$	1,246,721		$	1,219,394		$	1,177,548	$	1,148,580	$	1,160,978

LIABILITIES
Deposits:
Demand, noninterest bearing	$	287,029		$	296,273		$	285,767	$	267,593	$	265,947
Demand, interest bearing		125,643			121,086			110,147		112,591		113,337
Savings and money market		496,697			487,763			491,047		508,605		526,557
Time		115,622			114,384			116,496		118,700		124,410
Total Deposits		1,024,991			1,019,506			1,003,457		1,007,489		1,030,251
Federal Home Loan Bank advances		86,000			71,000			37,000		7,000		—
Note payable		4,200			4,350			4,500		4,650		4,800
Accrued expenses and other liabilities		17,198			14,224			18,847		17,026		17,230
Total Liabilities		1,132,389			1,109,080			1,063,804		1,036,165		1,052,281
STOCKHOLDERS’ EQUITY
Common stock, no par value:		84,603			76,433			76,065		75,944		75,240
Retained Earnings		29,842			35,427			33,123		31,424		29,666
Accumulated other comprehensive (losses) earnings, net of tax		(113	)		(1,546	)		4,556		5,047		3,791
Total Stockholders’ Equity		114,332			110,314			113,744		112,415		108,697
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,246,721		$	1,219,394		$	1,177,548	$	1,148,580	$	1,160,978

CONSOLIDATED STATEMENTS OF INCOME
(Amounts in thousands, except per share amounts)
	(Unaudited)
	Three Months Ended
	March 31,		December 31,		September 30,		June 30,		March 31,
	2017		2016		2016		2016		2016
INTEREST INCOME
Interest and fees on loans	$	10,073	$	9,578	$	9,301	$	9,563	$	9,871
Interest on dividends and securities		1,943		1,925		1,815		1,731		1,685
Interest on deposits with other financial institutions		11		7		6		22		9
Total interest income		12,027		11,510		11,122		11,316		11,565

INTEREST EXPENSE
Deposits		637		631		657		709		783
Federal Home Loan Bank advances		145		48		10		1		8
Interest on note payable		53		55		54		56		57
Total interest expense		835		734		721		766		848
NET INTEREST INCOME		11,192		10,776		10,401		10,550		10,717
Provision for loan losses		—		—		—		75		75
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		11,192		10,776		10,401		10,475		10,642
NONINTEREST INCOME
Service charges		597		599		623		618		621
Net gain on sale of available-for-sale securities		28		57		140		57		184
Earnings on bank owned life insurance		102		102		94		105		100
Other income		283		565		245		256		229
Total Noninterest Income		1,010		1,323		1,102		1,036		1,134
NONINTEREST EXPENSES
Salaries and employee benefits		4,774		4,839		4,821		4,876		4,938
Occupancy expense		651		635		645		617		631
Equipment expense		402		448		445		438		434
Professional fees		473		384		298		294		387
FDIC assessment		130		150		150		150		150
Telephone, postage, supplies		297		298		300		306		295
Advertising expense		108		120		104		183		117
Data processing expense		139		178		147		140		192
Low income housing expense		105		71		71		71		71
Surety insurance		84		85		88		87		87
Director fees		72		72		72		72		72
Other real estate owned expense (recovery), net		10		5		—		—		(10	)
Other expenses		360		458		372		415		423
Total Noninterest Expense		7,605		7,743		7,513		7,649		7,787
EARNINGS BEFORE PROVISION FOR INCOME TAXES		4,597		4,356		3,990		3,862		3,989
Provision for income taxes		1,508		1,314		1,546		1,414		1,422
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS	$	3,089	$	3,042	$	2,444	$	2,448	$	2,567

(Amounts in thousands, except per share amounts and percentages)	(Unaudited) Three Months Ended
	March 31,			December 31,			September 30,			June 30,			March 31,
	2017			2016			2016			2016			2016
Per Share Data:
Basic earnings per share available to common stockholders	$	0.63		$	0.63		$	0.50		$	0.51		$	0.54
Diluted earnings per share available to common stockholders	$	0.62		$	0.61		$	0.49		$	0.50		$	0.52
Cash dividends declared	$	780		$	739		$	738		$	686		$	683
Average shares outstanding		4,867			4,850			4,843			4,811			4,777
Average diluted shares outstanding		5,012			4,974			4,953			4,930			4,921
Shares outstanding as of end of period		4,874			4,853			4,847			4,837			4,794

SELECTED PERFORMANCE DATA
Annualized return on average assets		1.00	%		1.02	%		0.84	%		0.85	%		0.90	%
Annualized return on average equity		11.24	%		10.88	%		8.69	%		8.98	%		9.67	%
Net interest margin (taxable equivalent)		3.98	%		3.89	%		3.88	%		3.96	%		4.10	%
Average loans as a percent of average deposits		79.73	%		75.01	%		72.96	%		72.22	%		73.43	%
Average total stockholders’ equity as a % of average total assets		8.91	%		9.38	%		9.70	%		9.43	%		9.26	%
Annualized common dividend payout ratio		25.25	%		24.29	%		30.20	%		28.02	%		26.61	%

LOANS
(Dollars in thousands)	(Unaudited)			(Extracted from audited annual financial statements)			(Unaudited)			(Unaudited)			(Unaudited)
	March 31,			December 31,			September 30,			June 30,			March 31,
	2017			2016			2016			2016			2016
Real estate loans:
Construction	$	49,490		$	43,683		$	38,162		$	29,251		$	42,465
Commercial		432,301			421,222			404,841			398,290			411,999
Multi family		112,911			105,963			83,946			82,637			59,993
Residential		169,373			170,523			173,476			174,084			173,437
Commercial & industrial loans		49,277			48,874			50,967			51,366			55,694
Consumer loans		6,065			3,533			1,630			1,311			1,675
Gross loans		819,417			793,798			753,022			736,939			745,263
Net deferred loan fees		(1,076	)		(1,146	)		(1,523	)		(1,430	)		(1,329	)
Allowance for loan losses		(10,144	)		(10,167	)		(10,092	)		(10,038	)		(9,943	)
NET LOANS	$	808,197		$	782,485		$	741,407		$	725,471		$	733,991

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.

FNB BANCORP/CA/ - FORM 8-K - EX-99.01 - EXHIBIT 99.01 - April 26, 2017

Attached files

FNB BANCORP/CA/ Reports