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

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HAMMOND, La., April 30, 2018 (GLOBE NEWSWIRE) -- FPB Financial Corp. (OTCQB:FPBF), the holding for Florida Parishes Bank, announced financial results for the 2018 period ended March 31, 2018.

Earnings

Net Income in the 2018 first quarter increased 170% to a record of $1,267,000 ($0.44 per fully diluted common share) as compared to the 2017 first quarter net income of $468,000 ($0.23 per fully diluted common share). Annualized return on average common equity (ROE) for the 3 months ended March 31, 2018 increased to 12.2%

The increase in net income during the 2018 first quarter was primarily attributed to a $975,000, or 30%, increase in net-interest income. The increase in net-interest income was primarily due to a 33% increase in mortgage loan interest income and a 28% increase in interest income from investment securities and deposits. Net income was positively affected by a $63,000, or 7% increase in Non-Interest Income. Non-Interest Income increased primarily due to a $91,000 increase in service charges on deposits, a $74,000 increase in SBA Fee Income offset by a $64,000 decreasing in mortgage banking fees, and a $69,000 loss on sale of foreclosed assets.  Total consolidated non-interest expenses declined, by $98,000, or 3% in the 2018 period.

Revenue (defined as net-interest income and total non-interest income) in the 2018 first quarter increased to $4.6 million, or 23% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended March 31, 2018 increased to $1.7 million, or 124% when compared to the 2017 period. The Company's Net-Interest Margin increased in the 2018 first quarter to 4.45% from 4.35% in the 2017 period. The Efficiency Ratio improved to 62.4% in the 2018 period.

While the Company's effective income tax rate decreased to 20.7% in the 2018 period, Income Tax expense increased by $151,000, or 85% in the period as compared to 2017.

Balance Sheet and Capital

Total assets at March 31, 2018 increased 19% to $365.5 million when compared to March 31, 2017. The increase in total assets was primarily due to a 39% increase in net loans over the twelve month period to $226.2 million. Total Liabilities increased 21% over the period. Deposits were the primary component of these increases with total deposits of $305.8 million at March 31, 2018, an increase of 19% of which $82.7 million were Non-Interest Bearing, which represents an increase of 21% from March 31, 2017.

The Company's increase in total assets were affected by a 54% decrease in Cash and Cash Equivalents to $16.7 million, an increase of 17% in Investment Securities to $100.5 million and a 95% increase in deferred tax assets to $664,000. The increase in total liabilities were affected by a $7.2 million, or 82% increase in Federal Home Loan Bank advances and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $230.7 million at March 31, 2018.  Of that total $204.4 million, or 88.6%, were secured by real estate. 

REAL ESTATE SECURED LOANS
March 31, 2018
(In Thousands)
            % of Total Equity
    Balances   % of Total Loans   and Loan Loss
Reserves
             
1-4 Family $ 83,603       36.24 %   178.45 %
Multi-Family   6,605       2.86 %   14.10 %
Land & Construction   47,261       20.49 %   100.88 %
Commercial Real Estate          
    Non-Owner Occupied   28,460       12.34 %   60.75 %
    Owner Occupied   38,493       16.69 %   82.16 %
             
TOTAL REAL ESTATE $ 204,422       88.62 %   436.33 %
             
             
NON - REAL ESTATE SECURED LOANS    
             
Commercial & Industrial $ 20,022       8.68 %   42.74 %
Consumer   7,169       3.11 %   15.30 %
             
TOTAL COMMERCIAL &           
  INDUSTRIAL & CONSUMER  $ 27,191       11.79 %   58.04 %
             
Less unearned income on loans   -949       -0.41 %   -2.03 %
             
  TOTAL LOANS $ 230,664       100.00 %   492.34 %
             
             
CONSOLIDATED LOAN AND DEPOSIT BALANCES BY MARKET  
March 31, 2018  
(In Thousands)  
             
Market Deposit Balances Loan Balances  
             
Tangipahoa Parish (4 offices) $ 229,973   75.2 %   $ 100,636   43.6 %  
St. Tammany Parish (2 offices)   38,827   12.7 %     74,017   32.0 %  
Jefferson Parish (1 office)   37,004   12.1 %     51,932   22.5 %  
Other   0   0.0 %     4,486   1.9 %  
                       
  Total $ 305,804   100 %   $ 231,071   100 %  

Total Common Stockholders' Equity increased by a net of $2.3 million, or 6% to $42.3 million for the twelve months ended March 31, 2018.

Capital Surplus increased by $1.6 million to $22.1 million at March 31, 2018 when compared to March 31, 2017.  Retained Earnings (net of unearned MRP stock) increased by $1.5 million to $21.1 million for the twelve month period. Other Comprehensive Income decreased by $697,000, or 379% from March 31, 2017 to March 31, 2018. Tangible Book value per common share increased to $15.69 as total common shares of 2,699,732 were outstanding at March 31, 2018. As of the end of the first quarter, 45,671 shares of the 2,699,732 common shares outstanding are restricted common shares that represent stock awards to officers of the Bank and Company which are not vested as of March 31, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $ 37.0 million at March 31, 2018.

FPB FINANCIAL CORP.
CONSOLIDATED RATE & YIELD
For the Three Months Ended March 31, 2018
        2018     2017    
        Average Average
    Average   Yield/ Yield/
    Balance Interest Rate Rate
Interest-Earning Assets        
  Loans Receivable $ 226,893     $ 3,571   6.38 %   6.69 %  
  Mortgage-Backed Securities   17,604       100   2.30 %   1.89 %  
  Investment Securities AFS   59,717       356   2.42 %   2.09 %  
  Investment Securities HTM   5,401       39   2.93 %   2.71 %  
  Trading Assets   132       0   0.00 %   0.00 %  
  State & Municipal Securities   14,405       84   2.36 %   2.44 %  
  Federal Home Loan Bank Stock   1151       3   1.05 %   1.03 %  
  First National Bankers Bank Stock   300       0   0.00 %   0.00 %  
  Interest-earning deposits   10,859       26   0.97 %   0.68 %  
                             
  Total Interest-Earning Assets   336,462       4,179   5.04 %   4.81 %  
           
Non-Interest Earning Assets   29,576          
           
Less Allowance for Loan Loss   -4,446          
                 
  Total Assets $ 361,592          
                 
Interest-Bearing Liabilities        
  Deposits $ 218,603     $ 364   0.68 %   0.54 %  
  FHLB Advances   19,869       87   1.78 %   1.24 %  
  Fed Funds Purchased   0       0   0.00 %   0.00 %  
  Preferred Statutory Trust   3,011       37   4.98 %   4.20 %  
                             
  Total Interest-Bearing Liabilities   241,483       488   0.82 %   0.63 %  
                             
Non-Interest Bearing Liabilities   77,962          
                 
  Total Liabilities   319,445          
           
Stockholders' Equity   42,147          
                 
  Total Liabilities and        
  Stockholders' Equity $ 361,592          
                 
Net Interest-Earning Assets $ 94,979          
                 
Net Interest Income; Average        
  Interest Rate Spread   $ 3,691   4.22 %   4.18 %  
                       
Net Interest Margin     4.45 %   4.35 %  
                   
Average Interest-Earning Assets      
  to Average Interest-Bearing      
  Liabilities   139.33 %        

Items affecting and contributing to the Company's record 2018 first quarter increase in net income when compared to the 2017 quarterly period:

  • Net Interest Income increased to $3.7 million from $2.9 million in 2017, or 27%
  • Service charges on deposits increased to $298,000 from $207,000, or 44.0%
  • Total non-interest expenses decreased to $2.9 million in 2018 from $3.0 million in 2017, or 3.0%
  • Compensation and employee benefits decreased to $1.8 million from $1.9 million in 2017, or 3.0%
  • Provisions for Loan Losses increased to $130,000, or 4.0%
  • The effective tax rate decreased to 20.7% from 27.6% in the 2017 period          

Other items and per share data of note this Year-To-Date (YTD) as of March 31, 2018, compared to the three month period ending March 31, 2017

  • Net Earnings per diluted common share increased to $0.44, or 91%
  • Annualized Return on Average Equity increased to 12.2%
  • Total Revenue (Net interest income and Non-interest income) increased to $4.6 million or 23.0%
  • The Efficiency Ratio improved to 62.4%
  • Total Common Stockholders' Equity increased to $42.4 million, or 6.0%
  • Cash Dividends paid to common shareholders total $159,000 in 2018 and $103,000 in 2017
  • Tangible Book Value per common share increased to $15.69
  • Net Loans increased to $226.2 million or 39.0%
  • Allowance for Loan Losses increased to $4.5 million, or 31.0%
  • Non-Interest Bearing Deposits total $82.7 million, an increase of 20.7%
  • Non-Maturity deposits increased by 17.4% to $254.5 million
  • Total Assets increased by 19.0% to $365.5 million
  • FHLB advances increased by 243.0% to $16.0 million 

Asset Quality

Total non-performing assets (NPA's) at March 31, 2018 decreased by $645,000, or 21% to $2.5 million when compared to March 31, 2017 and represents 1.1% of gross loans.   NPA's at December 31, 2017 totaled $3.1 million. The decrease during the 12 month period ending March 31, 2018 in NPA's were attributed to an decrease of $208,000 in loans on nonaccrual, to $1.7 million; an increase of $200,000 in Other Real Estate Owned (OREO), to $731,000 and a $637,000 decrease in loans 90-days past due and accruing, to $12,000. The decrease in NPA's during the 3 month period ending March 31, 2018 were attributed to a decrease of $45,000 in non-accrual loans, a decrease of $615,000 in OREO, and a $7,000 decrease in loans 90-days past due and accruing, to $12,000. The Company's allowance for loan losses (ALLL) increased by 31% to $4.5 million at March 31, 2018 when compared to March 31, 2017. The $4.5 million in the ALLL represents 2.0% of average net loans in the 2018 first quarter period and 181% of NPA's on March 31, 2018. At December 31, 2017 the Company's ALLL totaled $4.4 million or 2.1% of 2017 fourth quarter average net loans and 139% of NPA's at period end.

Net loan charge-offs for the 2018 first quarter totaled $14,000 (0.03% of average net loans) down from $31,000 (0.08%) of net loan charge-offs in the 2017 first quarter. Net loan charge-offs were $292,000 (0.55%) in the 2017 fourth quarter. Troubled Debt Restructured (TDR's) through March 31, 2018 was $2.7 million, of which $1.1 million are on nonaccrual. Total TDR's on March 31, 2017 and December 31, 2017 were $3.4 million and $2.9 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 Mar. 31,   Mar. 31,       Dec. 31,    
     2018    2017   %    2017   %
    (Unaudited)   (Unaudited)   Change       Change
                     
Tangible Common Stockholders'  Equity                  
$   42,358,676   $   40,024,202   6     $   42,111,968   1  
                     
Total Assets     365,515,460       306,110,828   19         346,174,764   6  
                     
Net Loans     226,172,359       162,737,413   39         217,000,626   4  
                     
Non-Interest Bearing Deposits     82,699,039       68,533,045   21         76,322,570   8  
                     
Non-Maturity Deposits (included in Interest and non-interest bearing Deposits)                  
                 
    254,543,937       216,799,252   17         241,536,253   5  
                     
Brokered Deposits (included in Interest-Bearing deposits                  
    4,390,060       4,007,542   10         4,380,507   0  
                     
FHLB Advances     16,015,000       4,675,000   243         8,800,000   82  
                     
Foreclosed Assets     264,450       129,470   104         943,500   (72 )
                     
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)                  
                 
    2,479,746       3,125,129   (21 )       3,147,007   (21 )
                     
Allowance for Loan Losses     4,491,757       3,434,815   31         4,376,126   3  


CONSOLIDATED STATEMENT OF EARNINGS
                     
    For the Three Months Ended    
                     
    Mar. 31,   Dec. 31,       Mar. 31,    
     2018      2017     %    2017     %
    (Unaudited)       Change   (Unaudited)   Change
                     
INTEREST AND DIVIDEND INCOME                  
                     
Mortgage Loans $ 3,071,538     $ 2,895,980     6     $ 2,315,014     33    
                     
Commercial Loans   302,133       283,229     7       210,777     43    
                     
Consumer Loans   196,921       195,689     1       202,973     (3 )  
                     
Investment Securities and                  
Deposits   608,200       473,403     28       475,564     28    
                                     
TOTAL INTEREST AND DIVIDEND                  
INCOME   4,178,794       3,848,301     9       3,204,328     30    
                                     
INTEREST EXPENSE                  
                     
Deposits   364,006       351,280     4       248,272     47    
                     
Subordinated debentures/trust                  
Preferred securities   37,037       34,892     6       31,680     17    
                     
Federal Home Loan Bank                  
Advances   86,547       17,172     404       27,289     217    
                                     
TOTAL INTEREST EXPENSE   487,590       403,345     21       307,241     59    
                                     
NET INTEREST INCOME   3,691,204       3,444,956     7       2,897,087     27    
                     
Provisions for loan losses   130,000       400,000     (68 )     125,000     4    
                                       
  NET INTEREST INCOME                  
  AFTER PROVISION FOR                  
  LOAN LOSSES   3,561,204       3,044,956     17       2,772,087     28    
                             
                     
NON-INTEREST INCOME                  
                     
Service Charges on Deposits   298,281       251,248     19       207,029     44    
                   
Mortgage Banking Fees   230,691       225,776     2       294,628     (22 )  
                     
Interchange Fees   184,769       188,701     (2 )     177,874     4    
 

SBA Fee Income
  74,418       79,234     (6 )     0     -    
                     
Gain on Bank Owned Life                  
Insurance   45,863       47,318     (3 )     43,886     5    
                     
Loan Fees and Charges   41,661       37,958     10       42,842     (3 )  
                     
Gain/(Loss) on Trading Accounts   6,471       (46 )   -       (3,358 )   -    
                     
Gain/(Loss) on Sale of Investments                  
and Foreclosed Assets   (69,132 )     (51,169 )   (35 )     0     0    
                     
Other   86,566       76,726     13       73,946     17    
                           
TOTAL NON-INTEREST INCOME   899,588       855,846     5       836,847     7    
                     
NON-INTEREST EXPENSE                  
                     
Compensation and Employee                  
Benefits   1,798,247       1,877,674     (4 )     1,860,047     (3 )  
                     
Occupancy, local and state taxes                  
and Equipment   399,383       379,369     5       390,312     2    
                     
Technology and Information                  
Processing   214,666       275,370     (22 )     227,565     (6 )  
                     
Regulatory Fees   73,173       105,830     (31 )     63,365     15    
                     
Professional Fees   55,150       83,401     (34 )     80,133     (31 )  
                     
Other   322,760       529,866     (39 )     339,810     (5 )  
                                       
TOTAL NON-INTEREST EXPENSE   2,863,378       3,251,510     (12 )     2,961,232     (3 )  
                                     
INCOME BEFORE INCOME TAXES   1,597,414       649,293     146       647,702     147    
                     
Income Tax Expense   330,439       481,802     (31 )     179,061     85    
                                       
  NET INCOME $ 1,266,975     $ 167,490     656 %   $ 468,641     170 %  


    For the Three Months Ended
           
                     
    Mar. 31,   Dec. 31,       Mar. 31,    
     2018     2017    %     2017    %
    (Unaudited)       Change   (Unaudited)   Change
                     
PER COMMON SHARE DATA                  
                     
Net Earnings $ 0.48   $ 0.06   700     $ 0.23   109  
                     
Diluted Net Earnings $ 0.44   $ 0.06   633     $ 0.23   91  
                     
Revenue (Net Interest Income and                  
Non-Interest Income) $ 1.73   $ 1.59   9     $ 1.80   (4 )
                     
Dividends Paid $ 0.06   $ 0.05   20     $ 0.05   20  
                     
Book Value (Period End) $ 15.69   $ 15.56   1     $ 15.63   0  
                     
Book Value Adjusted Net of Other                  
Comprehensive income (Period                  
End) $ 16.02   $ 15.56   3     $ 15.70   2  
                     
RATIOS                  
                     
ROA (Annualized Net Income to                  
Average Period Assets)   1.42%     0.19%   648       0.64%   122  
                     
ROE (Annualized Net Income to                  
Average Period Total Stockholders'                  
Equity)   12.20%     1.57%   677       5.80%   110  
                     
Net Interest Margin (Average                  
for the Period)   4.45%     4.37%   2       4.35%   2  
                     
Non-Interest expense less Non-                  
Interest Income to Average Period                  
Total Assets (Annualized)   2.20%     2.78%   21       2.90%   24  
                     
Efficiency Ratio for the Period   62.40%     75.60%   17       79.31%   21  
                     
Net Loan Charge-Offs (Recoveries)                  
for the Period $ 14,369   $ 291,774   95     $ 30,589   53  
to Average Period Net Loans   0.03%     0.55%   95       0.08%   67  
                     
TDR's at Period End $ 2,692,884   $ 2,931,589   8     $ 3,370,199   20  
to Average Period Net Loans   1.21%     1.40%   13       2.04%   41  
                     
Non-Performing Assets at Period End $ 2,479,746   $ 3,147,007   21     $ 3,125,129   21  
to Average Period Total Assets   0.69%     0.92%   25       1.05%   35  
                     
Allowance for Loan Losses at Period End $ 4,491,757   $ 4,376,126   3     $ 3,434,815   31  
to Average Period Net Loans   2.02%     2.10%   (4 )     2.08%   (3 )
to Non-Performing Assets at Period End   181.14%     139.06%   30       109.91%   65  


CONSOLIDATED STATEMENT OF CONDITION
                     
                     
    Mar. 31,   Mar. 31,       Dec. 31,    
     2018     2017    %    2017    %
    (Unaudited)   (Unaudited)   Change       Change
                     
ASSETS                  
                     
Cash and Cash Equivalents (including                  
Interest and Non-Interest Earning                  
Deposits) $ 16,663,418     $ 36,551,178     (54 )   $ 11,831,667     41    
                     
Securities - Held to Maturity   5,380,641       3,416,410     57       5,405,894     (0 )  
                     
Securities - Available for Sale   94,942,832       82,335,124     15       88,344,159     7    
                     
Trading Securities   131,650       130,467     1       125,179     5    
                     
Bank Owned Life Insurance   7,150,312       6,463,460     11       7,104,450     1    
                     
Net Loans   226,172,359       162,737,413     39       217,000,626     4    
                     
Accrued Interest Receivable   1,389,537       1,095,974     27       1,362,179     2    
                     
Premises and Equipment, Net   11,446,221       11,721,344     (2 )     11,488,714     0    
                     
Foreclosed Assets   264,450       129,470     104       943,500     (72 )  
                     
Deferred Tax Assets   664,393       341,490     95       436,753     52    
                     
Other Assets   1,309,647       1,188,498     10       2,117,845     (38 )  
                                     
  TOTAL ASSETS $ 365,515,460     $ 306,110,828     19     $ 346,160,966     6    
                         
LIABILITIES                  
                     
Deposits $ 305,804,344     $ 257,087,845     19     $ 290,562,950     5    
                     
Federal Home Loan Bank Advances   16,015,000       4,675,000     243       8,800,000     82    
                     
Subordinated debentures/trust                  
Preferred securities   0       3,093,000     (100 )     3,093,000     (100 )  
                     
Other Liabilities   1,337,440       1,230,781     9       1,593,045     (16 )  
                         
  TOTAL LIABILITIES $ 323,156,784     $ 266,086,626     21     $ 304,048,995     6    
                         
STOCKHOLDERS' EQUITY                  
                     
Common Stock $ 26,481     $ 21,215     25     $ 26,541     0    
                     
Capital Surplus   22,083,327       20,534,332     8       22,083,327     0    
                     
Unearned MRP Stock   (794,021 )     (32,946 )   (2310 )     (900,818 )   (13 )  
                     
Retained Earnings   21,924,176       19,685,615     11       20,923,185     5    
                     
Other Comprehensive Income (Loss)   (881,287 )     (184,015 )   (379 )     (20,264 )   (4249 )  
                         
Total Stockholders' Equity   42,358,676       40,024,202     6       42,111,971     1    
                         
  TOTAL LIABILITIES AND                  
  STOCKHOLDERS' EQUITY $ 365,515,460     $ 306,110,828     19 %   $ 346,160,966     6 %  

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On April 12, 2018, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.075 per share will be paid on June 25, 2018 to stockholders of record at the close of business on June 11, 2018."

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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