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

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HAMMOND, La., July 24, 2018 (GLOBE NEWSWIRE) -- FPB Financial Corp. (OTCQB:FPBF), the holding for Florida Parishes Bank, announced financial results for the 2018 period ended June 30, 2018.

Earnings

Net Income in the 2018 second quarter increased 1,015% to a record of $1,396,000 ($0.49 per fully diluted common share) as compared to the 2017 second quarter net income of $125,000 ($0.05 per fully diluted common share). Annualized return on average common equity (ROE) for the 3 months ended June 30, 2018 increased to 13.1%

The increase in net income during the 2018 second quarter was primarily attributed to a $866,000, or 29%, 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 25% increase in interest income from investment securities. Net income was positively affected by a $541,000, or 16% decrease in Non-Interest Expense.  The decrease in non-interest expense was primarily the result of a $251,000, or 13% decrease in compensation and employee benefits.

Revenue (defined as net-interest income and total non-interest income) in the 2018 second quarter increased to $4.6 million, or 19% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended June 30, 2018 increased to $1.8 million, or 247% when compared to the 2017 period. The Company's Net-Interest Margin increased in the 2018 second quarter to 4.55% from 4.16% in the 2017 period. The Efficiency Ratio improved to 61.2% in the 2018 period.

While the Company's effective income tax rate decreased to 19.5% in the 2018 period, Income Tax expense increased by $332,000 as compared to the 2017 period.

Balance Sheet and Capital

Total assets at June 30, 2018 increased 11% to $369.7 million when compared to June 30, 2017.  The increase in total assets was primarily due a 22% increase in net loans over the twelve month period to $227.5 million.  Total Liabilities increased 12% over the period.  Deposits were the primary component of these increases with total deposits of $307.8 million at June 30, 2018, an increase of 8% of which $78.6 million were Non-Interest Bearing, which represents an increase of 8% from June 30, 2017.

The Company's increase in total assets were affected by a 47% decrease in Cash and Cash Equivalents to $18.1 million, an increase of 13% in Investment Securities to $102 million and a 1,151% increase in deferred tax assets to $746,000. The increase in total liabilities were affected by a $14.9 million, or 560% increase in Federal Home Loan Bank advances and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $232.1 million at June 30, 2018.  Of that total $206.5 million, or 89%, were secured by real estate.

REAL ESTATE SECURED LOANS
June 30, 2018
(In Thousands)
            % of Total Equity
            and Loan Loss
    Balances   % of Total Loans   Reserves
             
1-4 Family $87,195   37.57%     182.06%  
Multi-Family 6,170   2.66%     12.88%  
Land & Construction 49,314   21.25%     102.97%  
Commercial Real Estate          
  Non-Owner Occupied 24,761   10.67%     51.70%  
  Owner Occupied 39,077   16.84%     81.59%  
                 
TOTAL REAL ESTATE $206,517   88.99%     431.20%  
             
             
NON-REAL ESTATE SECURED LOANS
             
Commercial & Industrial $19,064   8.21%     39.80%  
Consumer 7,488   3.23%     15.63%  
               
TOTAL COMMERCIAL &            
  INDUSTRIAL & CONSUMER $26,552   11.44%     55.44%  
                 
Less unearned income on loans -1,005   -0.43%     -2.10%  
                 
  TOTAL LOANS $232,064   100.00%     484.54%  
                 


CONSOLIDATED LOAN AND DEPOSIT BALANCES BY MARKET
June 30, 2018
(In Thousands)
           
Market Deposit Balances Loan Balances
           
Tangipahoa Parish (4 offices) $229,637   74.6%   $97,538   41.9%  
St. Tammany Parish (2 offices) 36,692   11.9%   71,194   30.6%  
Jefferson Parish (1 office) 41,473   13.5%   58,786   25.3%  
Other 0   0.0%   5,010   2.2%  
                 
  Total $307,802   100%   $232,528   100%  
                   

Common Stockholders' Equity increased by $1.2 million, or 3% to $43.3 million for the twelve months ended June 30, 2018.

Retained Earnings increased by $3.6 million to $23.2 million for the twelve month period. Other Comprehensive Income decreased by $1.5 million, or 370% from June 30, 2017 to June 30, 2018. Tangible Book value per common share increased to $16.03 as total common shares of 2,703,944 were outstanding at June 30, 2018. Of the 2,703,944 outstanding shares; 49,883 shares are restricted common shares that represent stock awards to officers and directors of the Bank and Company which are not vested as of June 30, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $ 38.5 million at June 30, 2018.

FPB FINANCIAL CORP.
CONSOLIDATED RATE & YIELD
For the Three Months Ended June 30, 2018
(In Thousands)
          2018   2017  
        Average Average
    Average   Yield/ Yield/
    Balance Interest Rate Rate
Interest-Earning Assets        
  Loans Receivable $229,724   $3,734   6.52%   6.56%  
  Mortgage-Backed Securities 18,675   107   2.30%   1.96%  
  Investment Securities AFS 60,435   371   2.46%   2.09%  
  Investment Securities HTM 5,379   39   2.91%   2.53%  
  Trading Assets 134   0   0.00%   0.00%  
  State & Municipal Securities 14,643   88   2.41%   2.10%  
  Federal Home Loan Bank Stock 1304   7   2.16%   0.99%  
  First National Bankers Bank Stock 300   0   0.00%   0.00%  
  Interest-earning deposits 12,998   32   0.99%   0.86%  
                   
  Total Interest-Earning Assets 343,592   4,378   5.11%   4.66%  
                   
Non-Interest Earning Assets 28,157              
                   
Less Allowance for Loan Loss -4,501              
                   
  Total Assets $367,248              
                   
Interest-Bearing Liabilities                
  Deposits $225,333   $415   0.74%   0.63%  
  FHLB Advances 16,126   64   1.59%   2.07%  
  Fed Funds Purchased 0   0   0.00%   0.00%  
  Preferred Statutory Trust 0   0   0.00%   4.41%  
                   
  Total Interest-Bearing Liabilities 241,459   479   0.80%   0.71%  
                   
Non-Interest Bearing Liabilities 83,051              
                   
  Total Liabilities 324,510              
                   
Stockholders' Equity 42,738              
                   
  Total Liabilities and                
  Stockholders' Equity $367,248              
                   
Net Interest-Earning Assets $102,133              
                   
Net Interest Income; Average              
  Interest Rate Spread   $3,899   4.31%   3.95%  
                 
Net Interest Margin       4.55%   4.16%  
                 
Average Interest-Earning Assets            
  to Average Interest-Bearing            
  Liabilities 142.30%              
                   

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

  • Net Interest Income increased to $3.9 million from $3.0 million, or 29%
  • Service charges on deposits increased to $323,000 from $222,000, or 46.0%
  • Total non-interest expenses decreased to $2.9 million from $3.4 million, or 16.0%
  • Compensation and employee benefits decreased to $1.7 million from $2.0 million, or 13.0%
  • Provisions for Loan Losses decreased to $60,000, or 84.0%
  • The effective tax rate decreased to 19.5%

Other items and per share data of note as of June 30, 2018, compared to the six month period ending June 30, 2017

  • Net Earnings per diluted common share increased to $0.93, or 272%
  • Annualized Return on Average Equity increased to 12.7%
  • Total Revenue (Net interest income and Non-interest income) increased to $9.2 million or 20.9%
  • The Efficiency Ratio improved to 61.8%
  • Total Common Stockholders' Equity increased to $43.3 million, or 3.0%
  • Cash Dividends paid to common shareholders increased to $358,000 in 2018, or a 53% increase
  • Tangible Book Value per common share increased to $16.03
  • Net Loans increased to $227.5 million or 22.0%
  • Allowance for Loan Losses increased to $4.5 million, or 22.0%
  • Non-Interest Bearing Deposits total $78.6 million, an increase of 12.8%
  • Non-Maturity deposits increased by 10.2% to $255.5 million
  • Total Assets increased by 11.2% to $369.7 million
  • FHLB advances increased by 560.4% to $17.5 million 

Asset Quality

Non-performing assets (NPA's) at June 30, 2018 decreased by $1.8 million, or 47.1% to $2.0 million when compared to June 30, 2017 and represents 0.9% of gross loans.   NPA's at March 31, 2018 totaled $2.5 million. The decrease during the 12 month period ending June 30, 2018 in NPA's were attributed to an decrease of $816,000 in loans on nonaccrual, to $1.5 million; a decrease of $785,000 in Other Real Estate Owned (OREO), to $0 and a $188,000 decrease in loans 90-days past due and accruing, to $1,000. The decrease in NPA's during the 3 month period ending June 30, 2018 were attributed to a decrease of $195,000 in non-accrual loans, a decrease of $264,000 in OREO, and an $10,000 decrease in loans 90-days past due and accruing, to $1,000. The Company's allowance for loan losses (ALLL) increased by 22% to $4.5 million at June 30, 2018 when compared to June 30, 2017. The $4.5 million in the ALLL represents 2.0% of average net loans in the 2018 second quarter period and 226% of NPA's on June 30, 2018. At March 31, 2018 the Company's ALLL totaled $4.5 million or 2.0% of 2018 first quarter average net loans and 181% of NPA's at period end.

Net loan charge-offs for the 2018 second quarter totaled $6,000 (0.01% of average net loans) down from $94,000 (0.21) of net loan charge-offs in the 2017 second quarter. Net loan charge-offs were $14,000 (0.03%) in the 2018 first quarter. Troubled Debt Restructured (TDR's) through June 30, 2018 was $3.5 million, of which $967,000 are on nonaccrual. Total TDR's on June 30, 2017 and March 31, 2018 were $3.4 million and $2.7 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   Jun. 30,   Jun. 30,       Mar. 31,    
        2018     2017   %     2018   %
      (Unaudited)   (Unaudited)   Change   (Unaudited)   Change
                       
                       
Tangible Common Stockholders'  Equity     $ 43,348,220   $ 42,099,344   3     $ 42,358,676   2  
                       
Total Assets     369,722,825     332,582,863   11       365,515,460   1  
                       
Net Loans     227,518,291     186,466,214   22       226,172,359   1  
                       
Non-Interest Bearing Deposits     78,586,717     69,655,793   13       82,699,039   (5)  
                       
Non-Maturity Deposits (included in Interest and non-interest bearing Deposits)       255,462,169     231,720,879   10       254,543,937   0  
                       
Brokered Deposits/ CDARS (included in Interest-Bearing deposits       5,152,591     4,014,316   28       4,390,060   17  
                       
FHLB Advances     17,500,000     2,650,000   560       16,015,000   9  
                       
Foreclosed Assets     0     851,620   (100)       264,450   (100)  
                       
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)       2,010,462     3,802,411   (47)       2,479,746   (19)  
                       
Allowance for Loan Losses     4,545,265     3,725,755   22       4,491,757   1  


CONSOLIDATED STATEMENT OF EARNINGS
                     
    For the Three Months Ended   For the Six Months Ended
                     
    Jun. 31,   Mar. 31,   Jun. 31,   Jun. 31,   Jun. 30,
      2018       2018       2017       2018       2017  
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                     
INTEREST AND DIVIDEND                  
INCOME                  
                     
Mortgage Loans $3,236,875     $3,071,538     $2,433,392     $6,308,413     $4,748,407  
                                         
Commercial Loans   304,117       302,133       256,234       606,250       467,011  
                                         
Consumer Loans   192,521       196,921       195,850       389,443       398,823  
                                         
Investment Securities and                                      
Deposits   643,997       608,200       513,531       1,252,197       989,094  
                                         
TOTAL INTEREST AND                                      
DIVIDEND INCOME   4,377,509       4,178,794       3,399,007       8,556,303       6,603,335  
                                         
INTEREST EXPENSE                                      
                                         
Deposits   415,222       364,006       314,157       779,228       562,429  
                                         
Federal Home Loan Bank                                      
Advances and Other Borrowings   63,741       86,547       18,372       150,404       45,661  
                                         
Subordinated debentures/trust                                      
Preferred securities   0       37,037       33,616       36,920       65,296  
                                         
TOTAL INTEREST EXPENSE   478,963       487,590       366,145       966,553       673,386  
                                         
NET INTEREST INCOME   3,898,546       3,691,205       3,032,862       7,589,750       5,929,949  
                                         
Provisions for loan losses   60,000       130,000       385,000       190,000       510,000  
                                         
NET INTEREST INCOME                                        
AFTER PROVISION FOR                                        
LOAN LOSSES     3,838,546       3,561,204       2,647,862       7,399,750       5,419,949  
                                         
                                         
NON-INTEREST INCOME                                      
                                         
Service Charges on Deposits   322,516       298,281       221,760       620,177       428,789  
                                         
Interchange Fees   203,681       184,769       185,592       388,450       363,466  
                                         
Mortgage Banking Fees   49,702       230,691       309,057       280,392       603,686  
                                         
Gain on Bank Owned Life                                      
Insurance   45,937       45,863       45,406       91,799       89,292  
                                         
Loan Fees and Charges   28,762       41,661       34,732       70,423       77,574  
                                         
SBA Fee Income   7,259       74,419       0       81,678       0  
                                         
Gain/(Loss) on Trading Accounts   800       6,471       (5,032)       7,271       (8,389)  
                                         
Gain/(Loss) on Sale of Investments                                        
and Foreclosed Assets   (3,413)       (69,132)       (3,874)       (72,545)       (3,874)  
                                         
Other   71,431       86,566       67,299       158,616       141,244  
                                         
TOTAL NON-INTEREST INCOME   726,675       899,588       854,940       1,626,263       1,691,788  
                                         
NON-INTEREST EXPENSE                                      
                                         
Compensation and Employee                                      
Benefits   1,700,379       1,798,247       1,950,892       3,498,625       3,810,939  
                                         
Occupancy, local and state                                      
taxes and Equipment   410,661       399,383       424,997       810,044       815,309  
                                         
Technology and Information                                      
Processing   243,311       214,666       253,745       457,977       481,310  
                                         
Professional Fees   69,923       55,150       97,916       125,073       178,049  
                                         
Regulatory Fees   62,502       73,173       71,165       135,676       134,530  
                                         
Other   343,092       322,760       571,762       665,852       911,572  
                                         
TOTAL NON-INTEREST EXPENSE   2,829,869       2,863,378       3,370,477       5,693,247       6,331,709  
                                         
INCOME BEFORE INCOME TAXES   1,735,352       1,597,414       132,325       3,332,766       780,028  
                                         
Income Tax Expense   339,122       330,439       7,094       669,561       186,155  
                                         
NET INCOME     $1,396,230       $1,266,975       $125,231       $2,663,204       $593,873  
                                         


    For the Three Months Ended   For the Six Months Ended
                     
    Jun. 30,   Mar. 31,   Jun. 30,   Jun. 30,   Jun. 30,
      2018       2018       2017       2018       2017  
    (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                     
PER COMMON SHARE DATA                  
                     
Net Earnings $0.53     $0.48     $0.05     $1.00     $0.25  
                     
Diluted Net Earnings $0.49     $0.44     $0.05     $0.93     $0.25  
                     
Revenue (Net Interest Income                  
and Non-Interest Income) $1.74     $1.73     $1.50     $3.47     $3.26  
                     
Dividends Paid $0.075     $0.06     $0.05     $0.135     $0.10  
                     
Book Value (Period End) $16.03     $15.69     $15.84     $16.03     $15.84  
                     
Book Value Adjusted Net of                  
Other Comprehensive income                
(Period Ended $16.43     $16.02     $15.69     $16.43     $15.69  
                     
RATIOS                  
                     
ROA (Annualized Net Income                  
to Average Period Assets)   1.51%       1.42%     .16%     1.47%       0.39%  
                     
ROE (Annualized Net Income                  
to Average Period Total                  
Stockholders' Equity)   13.10%       12.20%       1.23%       12.65%       3.25%  
                     
Net Interest Margin (Average                  
for the Period)   4.55%       4.45%       4.16%       4.50%       4.25%  
                     
Non-Interest expense less Non-                        
Interest Income to Average Period                        
Total Assets (Annualized)   2.30%       2.20%       3.14%       2.23%       3.02%  
                     
Efficiency Ratio for the Period   61.18%       62.40%       86.69%       61.80%       83.07%  
                     
Net Loan Charge-Offs (Recoveries)                        
for the Period $6,492     $14,369     $94,060     $20,861     $124,649  
to Average Period Net Loans   0.01%       0.03%       0.21%       0.02%       0.15%  
                     
TDR's at Period End $3,457,509     $2,692,884     $3,369,444     $3,457,509     $3,369,444  
to Average Period Net Loans   1.53%       1.21%       1.91%       1.54%       1.97%  
                     
Non-Performing Assets                  
at Period End $2,010,462     $2,479,746     $3,802,411     $2,010,462     $3,802,411  
to Average Period Assets   0.55%       0.69%       1.18%       0.55%       1.23%  
                     
Allowance for Loan Losses                  
at Period End $4,545,265     $4,491,757     $3,725,755     $4,545,265     $3,725,755  
to Average Period Net Loans   2.02%       2.02%       2.11%       2.03%       2.18%  
to Non-Performing Assets                  
at Period End   226.08%       181.14%       97.98%       226.08%       97.98%  


CONSOLIDATED STATEMENT OF CONDITION  
                     
    Jun. 30,   Jun. 30,       Mar. 31,    
    2018     2017     %   2018     %
    (Unaudited)   (Unaudited)   Change   (Unaudited)   Change
                     
ASSETS                  
                     
Cash and Cash Equivalents (including                
Interest and Non-Interest Earning                
Deposits) $18,162,235     $34,141,370     (47)     $16,663,418     9  
                     
Securities - Held to Maturity 5,377,449     3,410,803     58     5,380,641     (0)  
                     
Securities - Available for Sale 96,533,213     86,514,148     12     94,942,832     2  
                     
Trading Securities 132,450     125,435     6     131,650     1  
                     
Bank Owned Life Insurance 7,196,249     6,508,867     11     7,150,312     1  
                     
Net Loans 227,518,291     186,466,214     22     226,172,359     1  
                     
Accrued Interest Receivable 1,462,974     1,165,431     26     1,389,537     5  
                     
Premises and Equipment, Net 11,238,035     11,695,360     (4)     11,446,221     (2)  
                     
Foreclosed Assets 0     851,620     (100)     264,450     (100)  
                     
Deferred Tax Assets 745,964     59,640     1151     664,393     12  
                     
Other Assets 1,355,964     1,643,975     (18)     1,309,647     4  
                               
  TOTAL ASSETS $369,722,825     $332,582,863     11     $365,515,460     1  
                               
LIABILITIES                            
                               
Deposits $307,801,971     $283,744,513     8     $305,804,344     1  
                               
Federal Home Loan Bank Advances 17,500,000     2,650,000     560     16,015,000     9  
                               
Subordinated debentures/trust                            
Preferred securities 0     3,093,000     (100)     0     0  
                               
Other Liabilities 1,072,634     996,006     8     1,337,440     (20)  
                               
  TOTAL LIABILITIES $326,374,605     $290,483,519     12     $323,156,784     1  
                               
STOCKHOLDERS' EQUITY                            
                               
Common Stock $26,526     $14,192     87     $26,481     0  
                               
Capital Surplus 22,083,327     22,062,244     0     22,083,327     0  
                               
Unearned MRP Stock (875,120)     (32,946)     (2556)     (794,021)     (10)  
                               
Retained Earnings 23,202,406     19,653,018     18     21,924,176     6  
                               
Other Comprehensive Income (Loss) (1,088,918)     402,836     (370)     (881,287)     (24)  
                               
Total Stockholders' Equity 43,348,220     42,099,344     3     42,358,676     2  
                               
  TOTAL LIABILITIES AND                            
  STOCKHOLDERS' EQUITY $369,722,825     $332,582,863     11%     $365,515,460     1%  
                               

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On July 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 September 25, 2018 to stockholders of record at the close of business on September 10, 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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