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CST: 09/12/2019 21:31:39   

FPB FINANCIAL CORP. (OTCQB: FPBF), the Holding Company for Florida Parishes Bank, Announces 2018 Fourth Quarter/Full Year Results and Declares Dividends

311 Days ago

HAMMOND, La., Feb. 01, 2019 (GLOBE NEWSWIRE) -- FPB Financial Corp. (OTCQB: FPBF), the holding for Florida Parishes Bank, announced financial results for the 2018 period ended December 31, 2018.

Earnings

Net Income in the 2018 fourth quarter increased 301% to $669,000 ($0.23 per fully diluted common share) as compared to the 2017 fourth quarter net income of $167,000 ($0.06 per fully diluted common share). For the year ending December 31, 2018 net income increased 268% to $4.7 million ($1.65 per fully diluted common share) as compared to the 2017 period net income of $1.3 million ($0.51 per fully diluted common share). Pre-Merger related expenses totaled $1.1 million in the 2018 fourth quarter associated with the Nov. 6, 2018 signing of an agreement and Plan of Merger between FPB Financial Corp. and The First Bancshares, Inc. Operating Net Income for the 2018 fourth quarter, excluding the $1.1 million of pre-merger related expenses, totaled $1.5 million ($0.52 per fully diluted common share) and $5.6 million ($1.95 per fully diluted common share) for the 12 months ended December, 31, 2018.

The increase in net income during the 2018 fourth quarter was primarily attributed to a $598,000 or 17%, increase in net-interest income. The increase in net-interest income was primarily due to a 22% increase in mortgage loan interest income and a 47% increase in interest income from investment securities. Net income was negatively affected by a $580,000, or 18% increase in Non-Interest Expense. The increase in non-interest expense was the result of a $580,000, or 31% increase in compensation and employee benefits: a $354,000, or 425% increase in professional fees (both the increase in compensation and in professional fees were attributed to pre-merger related expenses, noted above); and a $239,000, or 45%, decrease in Other Non-Operating expenses largely from a $111,000 decrease in advertising expense. Net Income was also affected by a $155,000 decrease, or 18%, in total non-interest income for the 2018 fourth quarter period as compared to the 2017 period. The decrease in non-interest income was due to a $165,000 decrease in mortgage banking fees and $79,000 decrease in SBA fee income. Other than mortgage banking and SBA fees, non-interest income increased by $90,000 in the period.

Revenue (defined as net-interest income and total non-interest income) in the 2018 fourth quarter increased to $4.7 million, or 10.3% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended December 31, 2018 decreased to $912,000, or 13.1% when compared to the 2017 period. The Company’s Net-Interest Margin increased in the 2018 fourth quarter to 4.52% from 4.38% in the 2017 period. The Efficiency Ratio increased to 80.8% in the 2018 period.

The Company’s effective income tax rate decreased to 15.0% in the 2018 fourth quarter period and to 19.2% for the 2018 year. Income tax expense decreased by $364,000 in 2018 fourth quarter and increased by $246,000 for the year.

Balance Sheet and Capital

Total assets at December 31, 2018 increased 9.6% to $379.3 million when compared to December 31, 2017.  The increase in total assets was primarily due to a 12.4% increase in net loans over the twelve month period to $243.9 million.  Total Liabilities increased 9.8% over the period.  Federal Home Loan Bank Advances were the primary component of these increases with total borrowings of $31.5 million at December 31, 2018, an increase of 258.2%.

The Company’s increase in total assets were affected by a 35.2% decrease in Cash and Cash Equivalents to $16.0 million, an increase of 2.5% in Investment Securities to $97 million and an 82% increase in deferred tax assets to $796,000. The increase in total liabilities were affected by an $11 million, or 3.8% increase in total deposits, of which $73.4 million were Non-Interest Bearing and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $248.6 million at December 31, 2018.  Of that total $223.1 million, or 89.8%, were secured by real estate.

 
REAL ESTATE SECURED LOANS
December 31, 2018
(In Thousands)
              % of Total Equity
              and Loan Loss
    Balances     % of Total Loans   Reserves
               
1-4 Family $ 94,399     37.98 %   187.94 %
Multi-Family   9,567     3.85 %   19.05 %
Land & Construction   47,587     19.15 %   94.74 %
Commercial Real Estate            
    Non-Owner Occupied   25,447     10.24 %   50.66 %
    Owner Occupied   46,135     18.56 %   91.85 %
               
TOTAL REAL ESTATE $ 223,135     89.77 %   444.24 %
               
               
NON-REAL ESTATE SECURED LOANS
               
Commercial & Industrial $ 19,552     7.87 %   38.93 %
Consumer   6,965     2.80 %   13.87 %
               
TOTAL COMMERCIAL &             
  INDUSTRIAL & CONSUMER  $ 26,517     10.67 %   52.79 %
               
Less unearned income on loans   -1,100     -0.44 %   -2.19 %
               
  TOTAL LOANS $ 248,552     100.00 %   494.85 %


 
CONSOLIDATED LOAN AND DEPOSIT BALANCES BY MARKET
December 31, 2018
(In Thousands)
           
Market Deposit Balances Loan Balances
           
Tangipahoa Parish (4 offices) $ 228,709     75.8 %   $ 97,032     39.0 %
St. Tammany Parish (2 offices)   36,408     12.1 %     73,481     29.5 %
Jefferson Parish (1 office)   36,440     12.1 %     75,680     30.3 %
Other   0     0.0 %     2,902     1.2 %
         
         
  Total $ 301,557     100 %   $ 249,095     100 %
                             

Common Stockholders’ Equity increased by $3.4 million, or 8% to $45.6 million for the twelve months ended December 31, 2018.

Retained Earnings increased by $3.9 million to $24.8 million for the twelve month period. Other Comprehensive Income decreased by $651,000, or 3,215% from December 31, 2017 to December 31, 2018. Tangible Book value per common share increased to $16.79 as total common shares of 2,712,423 were outstanding at December 31, 2018. Of the 2,712,423 outstanding shares; 46,925 shares are restricted common shares that represent stock awards to officers and directors of the Bank and Company which are not vested as of December 31, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $41.0 million at December 31, 2018.

 
FPB FINANCIAL CORP.
CONSOLIDATED RATE & YIELD
For the Three Months Ended December 31, 2018
(In Thousands)
        2018 2017
        Average Average
    Average   Yield/ Yield/
    Balance Interest Rate Rate
Interest-Earning Assets        
  Loans Receivable $ 246,576     $ 4,045     6.51 %   6.43 %
  Mortgage-Backed Securities   18,361       120     2.59 %   1.81 %
  Investment Securities AFS   60,149       420     2.77 %   1.81 %
  Investment Securities HTM   5,309       30     2.24 %   2.97 %
  Trading Assets   133       0     0.00 %   0.00 %
  State & Municipal Securities   14,111       85     2.39 %   2.23 %
  Federal Home Loan Bank Stock   1,336       9     2.67 %   0.00 %
  First National Bankers Bank Stock   300       0     0.00 %   0.00 %
  Interest-earning deposits   11,189       32     1.13 %   0.69 %
           
           
  Total Interest-Earning Assets   357,464       4,741     5.26 %   4.88 %
           
Non-Interest Earning Assets   27,936        
           
Less Allowance for Loan Loss   -4,640        
           
  Total Assets $ 380,760        
           
Interest-Bearing Liabilities        
  Deposits $ 230,837     $ 533     0.92 %   0.65 %
  FHLB Advances   26,609       165     2.46 %   2.41 %
  Fed Funds Purchased   0       0     0.00 %   0.00 %
  Preferred Statutory Trust   0       0     0.00 %   4.49 %
           
           
  Total Interest-Bearing Liabilities   257,446       698     1.08 %   0.75 %
           
           
Non-Interest Bearing Liabilities   78,642        
           
  Total Liabilities   336,088        
           
Stockholders' Equity   44,673        
           
  Total Liabilities and        
  Stockholders' Equity $ 380,761        
           
Net Interest-Earning Assets $ 100,018        
           
Net Interest Income; Average        
  Interest Rate Spread     $ 4,043     4.18 %   4.16 %
           
           
Net Interest Margin         4.49 %   4.37 %
           
Average Interest-Earning Assets      
  to Average Interest-Bearing      
  Liabilities   138.85 %      
               

Items affecting and contributing to the Company’s 2018 fourth quarter net income when compared to the 2017 quarterly period:

  • Net Interest Income increased to $4.0 million from $3.4 million, or 17.4%
  • Service charges on deposits increased to $308,000 from $251,000, or 22.5%
  • Provisions for Loan Losses decreased to $125,000, or 68.8%
  • The effective tax rate decreased to 15.0%

Other items and per share data of note as of December 31, 2018, compared to the twelve month period ending December 31, 2017

  • Net Earnings per diluted common share increased to $1.65, or 223.5%
  • Annualized Return on Average Equity increased to 10.8%
  • Total Revenue (Net interest income and Non-interest income) increased to $18.7 million or 13.5%
  • The Efficiency Ratio improved to 66.2%
  • Total Common Stockholders’ Equity increased to $45.6 million, or 8.2%
  • Cash Dividends paid to common shareholders increased to $797,000 in 2018, or a 59.5% increase
  • Tangible Book Value per common share increased to $16.79
  • Net Loans increased to $243.9 million or 12.4%
  • Allowance for Loan Losses increased to $4.7 million, or 6.8%
  • Total Assets increased by 9.6% to $379.3 million
  • FHLB advances increased by 258.2% to $31.5 million 

Asset Quality

Non-performing assets (NPA’s) at December 31, 2018 decreased by $142,000, or 4.5% to $3.0 million when compared to December 31, 2017 and represents 1.02% of gross loans.   NPA’s at September 30, 2018 totaled $2.7 million. The decrease during the 12 month period ending December 31, 2018 in NPA’s were attributed to an increase of $481,000 in loans on nonaccrual, to $2.3 million; a decrease of $669,000 in Other Real Estate Owned (OREO), to $676,000 and a $46,000 increase in loans 90-days past due and accruing, to $65,000. The increase in NPA’s during the 3 month period ending December 31, 2018 were attributed to an increase of $59,000 in non-accrual loans and increase of 210,000 in Other Real Estate Owned (OREO) and a $23,000 increase in loans 90-days past due and accruing, to $65,000. The Company’s allowance for loan losses (ALLL) increased by 6.8% to $4.7 million at December 31, 2018 when compared to December 31, 2017. The $4.7 million in the ALLL represents 1.9% of average net loans in the 2018 fourth quarter period and 155.5% of NPA’s on December 31, 2018. At September 30, 2018 the Company’s ALLL totaled $4.6 million or 2.0% of 2018 third quarter average net loans and 169.9% of NPA’s at period end.

Net loan charge-offs for the 2018 fourth quarter totaled $60,000 (0.10% of average net loans) down from $292,000 (0.55%) of net loan charge-offs in the 2017 fourth quarter. Net loan charge-offs were $114,000 (0.20%) in the 2018 third quarter. Troubled Debt Restructured (TDR’s) through December 31, 2018 were $3.9 million, of which $1.3 million are on nonaccrual. Total TDR’s on December 31, 2017 and September 30, 2018 were $2.9 million and $3.6 million respectively.

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,   Dec. 31,       Sept. 30,    
  2018   2017   %   2018   %
  (Unaudited)   (Unaudited)   Change   (Unaudited)   Change
                   
                 
Tangible Common
Stockholders' Equity
45,554,057   42,111,968   8     43,977,221   4  
                   
Total Assets 379,333,751   346,174,764   10     382,659,213   (1 )  
                   
Net Loans 243,878,144   217,000,626   12     238,453,186   2    
                   
Non-Interest Bearing Deposits 73,103,313   76,322,570   (4 )   84,787,867   (14 )  
                   
Non-Maturity Deposits
(included in Interest and non-interest
bearing Deposits)
241,071,621   241,536,253   (0 )   259,790,892   (7 )
                   
CDARs (included in
Interest-Bearing deposits)
5,190,633   4,380,507   18     5,167,094   0  
                   
FHLB Advances 31,520,000   8,800,000   258     19,705,000   60    
                   
Foreclosed Assets 210,000   943,500   (78 )   0   -    
                   
Non-Performing Assets
(includes Foreclosed Assets and
Other Real Estate Owned)
3,004,839   3,147,007   (5 )   2,712,553   10  
                   
Allowance for Loan Losses 4,673,940   4,376,126   7     4,608,554   1    


 
CONSOLIDATED STATEMENT OF EARNINGS
                     
    For the Three Months Ended   For the Twelve Months Ended
                     
    Dec. 31,   Sept. 30,   Dec. 31,   Dec. 31,   Dec. 31,
     2018    2018    2017    2018    2017
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                     
INTEREST AND DIVIDEND 
INCOME
                 
                     
Mortgage Loans $ 3,539,009     $ 3,334,483     $ 2,895,980     $ 13,181,906     $ 10,412,504  
                     
Commercial Loans   316,739       303,790       283,229       1,226,779       1,031,324  
                     
Consumer Loans   190,264       192,736       195,689       772,443       786,149  
                     
Investment Securities and Deposits   695,063       695,700       473,403       2,642,960       1,986,301  
                     
TOTAL INTEREST AND
DIVIDEND INCOME
  4,741,075       4,526,710       3,848,301       17,824,088       14,216,278  
                     
INTEREST EXPENSE                  
                     
Deposits   533,124       502,932       351,280       1,815,285       1,265,149  
                     
Federal Home Loan Bank                  
Advances and Other Borrowings   165,323       101,775       17,172       417,503       75,841  
                     
Subordinated debentures/trust                  
Preferred securities   0       0       34,892       36,920       135,098  
                     
TOTAL INTEREST EXPENSE   698,447       604,707       403,344       2,269,708       1,476,088  
                     
NET INTEREST INCOME   4,042,627       3,922,003       3,444,957       15,554,380       12,740,190  
                     
Provisions for loan losses   125,000       177,000       400,000       492,000       1,522,000  
                     
  NET INTEREST INCOME                  
  AFTER PROVISION FOR                  
  LOAN LOSSES   3,917,627       3,745,003       3,044,957       15,062,380       11,218,190  
                     
                     
NON-INTEREST INCOME                  
                     
Service Charges on Deposits   307,813       287,861       251,248       1,215,851       916,487  
                     
Interchange Fees   212,734       205,610       188,701       806,795       733,596  
                     
Mortgage Banking Fees   60,349       100,915       225,776       441,656       1,239,980  
                     
Loan Fees and Charges   64,097       75,261       37,958       209,781       168,956  
                     
Gain on Bank Owned Life Insurance   44,742       45,898       47,318       182,439       184,876  
                     
SBA Fee Income   0       (6,327 )     79,234       75,351       207,846  
                     
Gain/(Loss) on Trading Accounts   (9,539 )     3,848       (46 )     1,580       (8,646 )
                     
Gain/(Loss) on Sale of Investments
and Foreclosed Assets
  (41,839 )     0       (51,169 )     (114,384 )     (30,717 )
                     
Other   62,682       63,312       76,826       284,610       281,514  
                     
TOTAL NON-INTEREST INCOME   701,038       776,378       855,846       3,103,679       3,693,892  
                     
NON-INTEREST EXPENSE                  
                     
Compensation and Employee
Benefits
  2,458,000       1,751,480       1,877,674       7,708,106       7,499,832  
                     
Occupancy, local and state 
taxes and Equipment
  339,234       411,793       379,369       1,561,071       1,608,216  
                     
Technology and Information
Processing
  241,243       247,875       275,370       947,096       1,024,949  
                     
Professional Fees   437,864       69,467       83,401       632,404       388,942  
                     
Regulatory Fees   64,537       52,384       105,830       252,596       346,672  
                     
Other   290,576       286,819       529,866       1,243,247       1,893,017  
                     
TOTAL NON-INTEREST EXPENSE   3,831,454       2,819,819       3,251,510       12,344,520       12,761,628  
                     
INCOME BEFORE INCOME TAXES   787,212       1,701,562       649,293       5,821,539       2,150,454  
                     
Income Tax Expense   117,716       330,410       481,802       1,117,688       872,072  
                     
  NET INCOME $ 669,496     $ 1,371,151     $ 167,491     $ 4,703,852     $ 1,278,382  


       
  For the Three Months Ended   For the Twelve Months Ended
                   
  Dec. 31,   Sept. 30,   Dec. 31,   Dec. 31,   Dec. 31,
   2018    2018    2017    2018    2017
  (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                   
PER COMMON SHARE DATA                  
                   
Net Earnings $ 0.25     $ 0.52     $ 0.06     $ 1.77     $ 0.51  
                   
Diluted Net Earnings $ 0.23     $ 0.48     $ 0.06     $ 1.65     $ 0.51  
                   
Revenue (Net Interest Income
and Non-Interest Income)
$ 1.79     $ 1.77     $ 1.62     $ 7.03     $ 6.58  
                   
Dividends Paid $ 0.09     $ 0.075     $ 0.05     $ 0.30     $ 0.20  
                   
Book Value (Period End) $ 16.79     $ 16.26     $ 15.56     $ 16.79     $ 15.56  
                   
Book Value Adjusted Net of
Other Comprehensive income
(Period Ended)
$ 17.03     $ 16.87     $ 15.56     $ 17.03     $ 15.56  
                   
RATIOS                  
                   
ROA (Annualized Net Income
to Average Period Assets)
  0.70 %     1.45 %     0.19 %     1.27 %     0.39 %
                   
ROE (Annualized Net Income
to Average Period Total
Stockholders' Equity)
  5.95 %     12.40 %     1.57 %     10.85 %     3.23 %
                   
Net Interest Margin (Average
for the Period)
  4.49 %     4.43 %     4.31 %     4.48 %     4.27 %
                   
Non-Interest expense less Non-
Interest Income to Average Period
                     
Total Assets (Annualized)   3.26 %     2.16 %     2.78 %     2.49 %     2.80 %
                   
Efficiency Ratio for the Period   80.77 %     60.02 %     75.60 %     66.16 %     77.65 %
                   
Net Loan Charge-Offs (Recoveries)                
for the Period $ 59,614     $ 113,801     $ 291,774     $ 194,187     $ 486,278  
to Average Period Net Loans   0.10 %     0.20 %     0.55 %     0.08 %     0.26 %
                   
TDR's at Period End $ 3,896,570     $ 3,572,917     $ 2,931,589     $ 3,896,570     $ 2,931,589  
to Average Period Net Loans   1.61 %     1.55 %     1.40 %     1.69 %     1.57 %
                   
Non-Performing Assets                  
at Period End $ 3,004,839     $ 2,712,553     $ 3,147,007     $ 3,004,839     $ 3,147,007  
to Average Period Assets   0.79 %     0.72 %     0.92 %     0.81 %     0.97 %
                   
Allowance for Loan Losses                  
at Period End $ 4,673,940     $ 4,608,554     $ 4,376,126     $ 4,673,940     $ 4,376,126  
to Average Period Net Loans   1.93 %     1.99 %     2.10 %     2.03 %     2.34 %
to Non-Performing Assets                  
at Period End   155.50 %     169.90 %     139.06 %     155.50 %     139.06 %


 
CONSOLIDATED STATEMENT OF CONDITION
                     
    Dec. 31,   Dec. 31,       Sept. 30,    
     2018    2017   %    2018   %
    (Unaudited)   (Unaudited)   Change   (Unaudited)   Change
                     
ASSETS                  
                     
Cash and Cash Equivalents (including                
Interest and Non-Interest Earning                
Deposits) $ 15,991,620     $ 11,831,667     35     $ 20,476,937     (22 )
                     
Securities - Held to Maturity   4,991,343       5,405,894     (8 )     5,374,285     (7 )
                     
Securities - Available for Sale   92,000,385       89,217,057     3       95,601,806     (4 )
                     
Trading Securities   126,759       125,179     1       136,298     (7 )
                     
Bank Owned Life Insurance   7,286,889       7,104,450     3       7,242,147     1  
                     
Net Loans   243,878,144       217,000,626     12       238,453,186     2  
                     
Accrued Interest Receivable   1,540,205       1,362,179     13       1,615,192     (5 )
                     
Premises and Equipment, Net   10,988,120       11,472,614     (4 )     11,115,643     (1 )
                     
Foreclosed Assets   210,000       943,500     (78 )     0     -  
                     
Deferred Tax Assets   796,132       436,753     82       838,949     (5 )
                     
Other Assets   1,524,154       1,274,844     20       1,804,770     (16 )
                     
  TOTAL ASSETS $ 379,333,751     $ 346,174,763     10     $ 382,659,213     (1 )
                     
LIABILITIES                  
                     
Deposits $ 301,557,022     $ 290,562,949     4     $ 317,718,641     (5 )
                     
Federal Home Loan Bank Advances   31,520,000       8,800,000     258       19,705,000     60  
                     
Subordinated debentures/trust                  
Preferred securities   0       3,093,000     (100 )     0     0  
                     
Other Liabilities   702,672       1,606,846     (56 )     1,258,351     (44 )
                     
  TOTAL LIABILITIES $ 333,779,694     $ 304,062,795     10     $ 338,681,992     (1 )
                     
STOCKHOLDERS' EQUITY                  
                     
Common Stock $ 26,655     $ 14,192     88     $ 26,548     0  
                     
Capital Surplus   22,225,282       22,075,469     1       22,083,327     1  
                     
Unearned MRP Stock   (830,820 )     (900,820 )   8       (867,443 )   4  
                     
Retained Earnings   24,804,616       20,943,392     18       24,374,431     2  
                     
Other Comprehensive Income (Loss)   (671,675 )     (20,264 )   (3215 )     (1,639,642 )   59  
                     
Total Stockholders' Equity   45,554,057       42,111,969     8       43,977,221     4  
                     
  TOTAL LIABILITIES AND                  
  STOCKHOLDERS' EQUITY $ 379,333,751     $ 346,174,764     10 %   $ 382,659,213     (1 %)
                                     

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, “On January 10, 2019, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.09 per share will be paid on February 25, 2019 to stockholders of record at the close of business on February 11, 2019.”

For More Information Contact:

Fritz W. Anderson, II
Chief Executive Officer,
and Chairman, FPB Financial Corp.
Chairman, Florida Parishes Bank
(985) 345-1880

Ronnie Fugarino
President, FPB Financial Corp.
Chief Executive Officer, Florida Parishes Bank    
(985) 345-1880

Albert Kelleher
President, Florida Parishes Bank
(985) 345-1880

Derek Shants
Chief Financial Officer
and Chief Operations Officer,
FPB Financial Corp. and Florida Parishes Bank
(985) 345-1880

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