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

Attached files

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

Exhibit 99.01

Press Release+

Available for Immediate Publication: October 26, 2017

FNB Bancorp Reports Third Quarter 2017 Earnings of $0.43 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 third quarter of 2017 of $3,311,000 or $0.43 per diluted share, compared to net earnings available to common shareholders of $2,444,000 or $0.33 per diluted share for the third quarter of 2016.

During the third quarter of 2017, our net interest income was $11.8 million, an increase of $1.4 million from the third quarter of 2016. This increase was primarily the result of an increase in the average volume of our interest earning assets outstanding coupled with an increase in our earning rate when compared to the same period in 2016.

“During the third quarter of 2017, the Company was able to grow our net loan portfolio by $20.6 million. Loan production was strong during the quarter, and the Bank had the opportunity to purchase some very seasoned, high quality, single family residential mortgage loans during the quarter. Also during the quarter, our deposit balances increased by $22.7 million, which included a $13.5 million increase in our non-interest bearing DDA accounts. The growth in both the loan and deposit portfolios was complemented with a decrease in short term FHLB borrowings of $6 million. Net interest income was helped by the fact that the adjustable rate portion of our loan portfolio has begun to reset to higher yields, in response to increases to short term rates by the Federal Open Market Committee and increases in the short term LIBOR rates. The current low rate environment has put pressure on our net interest margin, but we have added enough interest earning assets at favorable spreads that we were able to expand our net interest margin by 4 basis points during the quarter. Our net interest margin was 3.97% for the third quarter and our increased earnings coupled with a flattening yield curve have allowed our capital base to increase by $2.5 million during the quarter and increase our cash dividend payout to $0.13 per quarter. We worked hard during the third quarter to maintain our profitability while continuing to provide for our customers’ needs, providing them with the products they want delivered in an efficient and effective manner”, stated CEO Tom McGraw.

“Our total non-accrual loans balance decreased by $0.4 million during the third quarter of 2017. This decrease was the result of management efforts to reduce the levels of our non-accrual loans. We utilize a conservative underwriting approach in our loan origination process which should serve to keep problem loans at acceptable levels as we work to prudently increase the size of our loan portfolio. There was no loan provision for or recovery of loan losses during the third quarter. We continue to see strong credit characteristics within our interest earning assets and our allowance for loan losses continues to be adequate for the level of risk that management has identified in our loan portfolio”, continued Tom McGraw.

FNB Bancorp and Subsidiary
CONSOLIDATED BALANCE SHEETS	(Unaudited)
(Dollar and share amounts in thousands, except earnings per share)	As of
	September 30,
	2017		2016
ASSETS
Cash and due from banks	$	23,714	$	17,342
Interest-bearing time deposits with financial institutions		230		204
Securities available for sale, at fair value		360,301		358,877
Other equity securities		7,567		7,206
Loans, net of deferred loan fees and allowance for loan losses		829,100		741,407
Bank premises, equipment and leasehold improvements, net		9,417		9,918
Bank owned life insurance		16,540		16,145
Accrued interest receivable		4,804		4,544
Other real estate owned		1,471		1,346
Goodwill		4,580		4,580
Prepaid expenses		469		670
Other assets		16,421		15,309
TOTAL ASSETS	$	1,274,614	$	1,177,548

LIABILITIES
Deposits:
Demand, noninterest bearing	$	309,753	$	285,767
Demand, interest bearing		122,353		110,147
Savings and money market		482,335		491,047
Time		130,630		116,496
Total Deposits		1,045,071		1,003,457
Federal Home Loan Bank advances		85,000		37,000
Note payable		3,900		4,500
Accrued expenses and other liabilities		19,447		18,847
Total Liabilities		1,153,418		1,063,804
STOCKHOLDERS’ EQUITY
Common stock, no par value:		85,309		76,065
Retained earnings		34,655		33,123
Accumulated other comprehensive earnings, net of tax		1,232		4,556
Total Stockholders’ Equity		121,196		113,744
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,274,614	$	1,177,548

FNB Bancorp and Subsidiary
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollar and share amounts in thousands, except earnings per share)
	(Unaudited)				(Unaudited)
	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2017		2016		2017			2016
INTEREST INCOME
Interest and fees on loans	$	10,646	$	9,301	$	31,089		$	28,735
Interest on dividends and securities		2,085		1,815		6,017			5,231
Interest on deposits with other financial institutions		54		6		84			37
Total interest income		12,785		11,122		37,190			34,003

INTEREST EXPENSE
Deposits		737		657		2,050			2,149
Federal Home Loan Bank advances		241		10		601			19
Interest on note payable		54		54		162			167
Total interest expense		1,032		721		2,813			2,335
NET INTEREST INCOME		11,753		10,401		34,377			31,668
(Recovery of) provision for loan losses		—		—		(140	)		150
NET INTEREST INCOME AFTER (RECOVERY OF) PROVISION FOR LOAN LOSSES		11,753		10,401		34,517			31,518
NONINTEREST INCOME
Service charges		571		623		1,732			1,862
Net gain on sale of available-for-sale securities		59		140		210			381
Earnings on bank owned life insurance		103		95		293			300
Other income		239		244		759			729
Total Noninterest Income		972		1,102		2,994			3,272
NONINTEREST EXPENSES
Salaries and employee benefits		4,824		4,821		14,460			14,635
Occupancy expense		704		645		2,062			1,893
Equipment expense		436		445		1,244			1,317
Professional fees		340		298		1,221			979
FDIC assessment		90		150		310			450
Telephone, postage, supplies		321		300		943			901
Advertising expense		127		104		342			404
Data processing expense		145		147		428			479
Low income housing expense		122		71		350			213
Surety insurance		89		88		262			262
Director fees		72		72		216			216
Other real estate owned expense (recovery), net		—		—		17			(10	)
Other expenses		378		372		1,076			1,210
Total Noninterest Expense		7,648		7,513		22,931			22,949
EARNINGS BEFORE PROVISION FOR INCOME TAXES		5,077		3,990		14,580			11,841
Provision for income taxes		1,766		1,546		4,829			4,382
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS	$	3,311	$	2,444	$	9,751		$	7,459

Per Share Data:
Basic earnings per share available to common stockholders	$	0.45	$	0.34	$	1.33		$	1.03
Diluted earnings per share available to common stockholders	$	0.43	$	0.33	$	1.29		$	1.01
Cash dividends declared	$	959	$	738	$	2,620		$	2,107
Average shares outstanding		7,375		7,264		7,344			7,216
Average diluted shares outstanding		7,619		7,428		7,579			7,402
Shares outstanding as of the end of period		7,403		7,269		7,403			7,269

FNB Bancorp and Subsidiary
FINANCIAL HIGHLIGHTS
(Dollar and share amounts in thousands, except earnings per share)
	(Unaudited)						(Unaudited)
	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2017			2016			2017			2016

AVERAGE BALANCES:
Total Assets	$	1,264,864		$	1,159,129		$	1,251,583		$	1,153,889
Total Loans		820,497			740,218			819,519			741,180
Total Earning Assets		1,198,556			1,092,060			1,186,265			1,081,448
Total Deposits		1,042,106			1,014,541			1,026,003			1,017,172
Total Stockholder’s Equity		119,334			112,448			115,479			109,211

SELECTED PERFORMANCE DATA
Annualized return on average assets		1.05	%		0.84	%		1.04	%		0.86	%
Annualized return on average equity		11.10	%		8.69	%		11.26	%		9.11	%
Net interest margin (taxable equivalent)		3.97	%		3.88	%		3.96	%		4.00	%
Average loans as a percent of average deposits		78.73	%		72.96	%		79.87	%		72.87	%
Average total stockholders’ equity as a % of average total assets		9.43	%		9.70	%		9.23	%		9.46	%
Annualized common dividend payout ratio		28.96	%		30.20	%		26.87	%		28.25	%

NON-PERFORMING ASSETS										(Extracted from
(Dollars In Thousands)										audited annual
	(Unaudited)			(Unaudited)			(Unaudited)			financial statements)			(Unaudited)
	September 30,			June 30,			March 31,			December 31,			September 30,
	2017			2017			2017			2016			2016
Non-accrual loans	$	6,933		$	7,363		$	8,444		$	6,647		$	6,903
Other real estate owned		1,471			1,459			1,443			1,427			1,346
Total non-performing assets	$	8,404		$	8,822		$	9,887		$	8,074		$	8,249

Loan loss reserve	$	10,250		$	10,177		$	10,144		$	10,167		$	10,092
Non-accrual loans/Gross loans		0.83	%		0.90	%		1.03	%		0.84	%		0.92	%
Loan loss reserves/Gross loans		1.22	%		1.24	%		1.24	%		1.28	%		1.34	%

FNB Bancorp and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Dollar and share amounts in thousands, except earnings per share)								(Extracted from
								audited annual
	(Unaudited)		(Unaudited)		(Unaudited)			financial statements)			(Unaudited)
	September 30,		June 30,		March 31,			December 31,			September 30,
	2017		2017		2017			2016			2016
ASSETS
Cash and due from banks	$	23,714	$	21,859	$	25,337		$	15,758		$	17,342
Interest-bearing time deposits with financial institutions		230		230		205			205			204
Securities available for sale, at fair value		360,301		362,006		353,364			360,105			358,877
Other equity securities		7,567		7,567		7,211			7,206			7,206
Loans, net of deferred loan fees and allowance for loan losses		829,100		808,508		807,191			782,485			741,407
Bank premises, equipment and leasehold improvements, net		9,417		9,416		9,571			9,837			9,918
Bank owned life insurance		16,540		16,438		16,349			16,247			16,145
Accrued interest receivable		4,804		4,945		4,785			4,942			4,544
Other real estate owned		1,471		1,459		1,443			1,427			1,346
Goodwill		4,580		4,580		4,580			4,580			4,580
Prepaid expenses		469		621		768			856			670
Other assets		16,421		16,032		15,917			15,746			15,309
TOTAL ASSETS	$	1,274,614	$	1,253,661	$	1,246,721		$	1,219,394		$	1,177,548

LIABILITIES
Deposits:
Demand, noninterest bearing	$	309,753	$	296,249	$	287,029		$	296,273		$	285,767
Demand, interest bearing		122,353		129,435		125,643			121,086			110,147
Savings and money market		482,335		472,050		496,697			487,763			491,047
Time		130,630		124,604		115,622			114,384			116,496
Total Deposits		1,045,071		1,022,338		1,024,991			1,019,506			1,003,457
Federal Home Loan Bank advances		85,000		91,000		86,000			71,000			37,000
Note payable		3,900		4,050		4,200			4,350			4,500
Accrued expenses and other liabilities		19,447		17,546		17,198			14,224			18,847
Total Liabilities		1,153,418		1,134,934		1,132,389			1,109,080			1,063,804
STOCKHOLDERS’ EQUITY
Common stock, no par value:		85,309		85,159		84,603			84,283			76,065
Retained Earnings		34,655		32,306		29,842			27,577			33,123
Accumulated other comprehensive earnings (losses), net of tax		1,232		1,262		(113	)		(1,546	)		4,556
Total Stockholders’ Equity		121,196		118,727		114,332			110,314			113,744
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,274,614	$	1,253,661	$	1,246,721		$	1,219,394		$	1,177,548

FNB Bancorp and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
(Dollar and share amounts in thousands, except earnings per share)
	(Unaudited)
	Three Months Ended
	September 30,		June 30,			March 31,		December 31,		September 30,
	2017		2017			2017		2016		2016
INTEREST INCOME
Interest and fees on loans	$	10,646	$	10,370		$	10,073	$	9,578	$	9,301
Interest on dividends and securities		2,085		1,989			1,943		1,925		1,815
Interest on deposits with other financial institutions		54		19			11		7		6
Total interest income		12,785		12,378			12,027		11,510		11,122

INTEREST EXPENSE
Deposits		737		677			636		631		657
Federal Home Loan Bank advances		241		214			146		48		10
Interest on note payable		54		55			53		55		54
Total interest expense		1,032		946			835		734		721
NET INTEREST INCOME		11,753		11,432			11,192		10,776		10,401
Recovery of loan losses		—		(140	)		—		—		—
NET INTEREST INCOME AFTER RECOVERY OF LOAN LOSSES		11,753		11,572			11,192		10,776		10,401
NONINTEREST INCOME
Service charges		571		564			597		599		623
Net gain on sale of available-for-sale securities		59		123			28		57		140
Earnings on bank owned life insurance		102		89			102		102		95
Other income		240		236			283		565		244
Total Noninterest Income		972		1,012			1,010		1,323		1,102
NONINTEREST EXPENSES
Salaries and employee benefits		4,824		4,862			4,774		4,839		4,821
Occupancy expense		704		707			651		635		645
Equipment expense		436		406			402		448		445
Professional fees		340		408			473		384		298
FDIC assessment		90		90			130		150		150
Telephone, postage, supplies		321		325			297		298		300
Advertising expense		127		107			108		120		104
Data processing expense		145		144			139		178		147
Low income housing expense		122		123			105		71		71
Surety insurance		89		89			84		85		88
Director fees		72		72			72		72		72
Other real estate owned expense, net		—		7			10		5		—
Other expenses		378		338			360		458		372
Total Noninterest Expense		7,648		7,678			7,605		7,743		7,513
EARNINGS BEFORE PROVISION FOR INCOME TAXES		5,077		4,906			4,597		4,356		3,990
Provision for income taxes		1,766		1,555			1,508		1,314		1,546
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS	$	3,311	$	3,351		$	3,089	$	3,042	$	2,444

FNB Bancorp and Subsidiary
(Dollar and share amounts in thousands, except earnings per share)
	(Unaudited) Three Months Ended
	September 30,			June 30,			March 31,			December 31,			September 30,
	2017			2017			2017			2016			2016

Per Share Data:
Basic earnings per share available to common stockholders	$	0.45		$	0.46		$	0.42		$	0.42		$	0.34
Diluted earnings per share available to common stockholders	$	0.43		$	0.44		$	0.41		$	0.41		$	0.33
Cash dividends declared	$	959		$	882		$	780		$	739		$	738
Average shares outstanding		7,375			7,342			7,301			7,275			7,264
Average diluted shares outstanding		7,619			7,585			7,518			7,461			7,429
Shares outstanding as of end of period		7,403			7,362			7,311			7,280			7,269

SELECTED PERFORMANCE DATA
Annualized return on average assets		1.05	%		1.07	%		1.00	%		1.02	%		0.84	%
Annualized return on average equity		11.10	%		11.58	%		11.24	%		10.88	%		8.69	%
Net interest margin (taxable equivalent)		3.97	%		3.93	%		3.98	%		3.89	%		3.87	%
Average loans as a percent of average deposits		78.73	%		81.18	%		79.73	%		75.01	%		72.96	%
Average total stockholders’ equity as a % of average total assets		9.43	%		9.21	%		8.91	%		9.38	%		9.70	%
Annualized common dividend payout ratio		28.96	%		26.32	%		25.25	%		24.29	%		30.20	%

										(Extracted from
LOANS										audited annual
(Dollars in thousands)	(Unaudited)			(Unaudited)			(Unaudited)			financial statements)			(Unaudited)
	September 30,			June 30,			March 31,			December 31,			September 30,
	2017			2017			2017			2016			2016
Real estate loans:
Construction	$	49,374		$	46,325		$	49,490		$	43,683		$	38,163
Commercial		443,556			436,286			431,295			421,222			404,964
Multi family		109,396			104,373			112,911			105,963			83,944
Residential		174,000			166,610			169,373			170,523			173,441
Commercial & industrial loans		51,827			57,217			49,277			48,874			50,870
Consumer loans		11,193			8,884			6,065			3,533			1,630
Gross loans		839,346			819,695			818,411			793,798			753,012
Net deferred loan cost (fees)		4			(1,010	)		(1,076	)		(1,146	)		(1,513	)
Allowance for loan losses		(10,250	)		(10,177	)		(10,144	)		(10,167	)		(10,092	)
NET LOANS	$	829,100		$	808,508		$	807,191		$	782,485		$	741,407

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 - October 26, 2017

Attached files

FNB BANCORP/CA/ Reports