SAN FRANCISCO, CA / ACCESSWIRE / January 31, 2018 / 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 fourth quarter of 2017 of $960,000 or $0.13 per diluted share, compared to net earnings available to common shareholders of $3,042,000 or $0.41 per diluted share for the fourth quarter of 2016. Fourth quarter results include adjustments to asset values that were recorded following the enactment of the Tax Cuts and Jobs Act of 2017 (“H.R.1”), which reduced the federal income tax rate from 35% to 21% beginning in 2018. The fourth quarter adjustments related to H.R.1 included a reduction in our net deferred tax assets of $(3.0) million or $(0.39) per diluted share.
During the fourth quarter of 2017, the Company’s Board of Directors signed a definitive agreement whereby FNB Bancorp, the sole shareholder of First National Bank of Northern California, would be sold to TriCo Bancshares. The merger agreement is expected to be presented to and voted on by the shareholders of both companies sometime in late first quarter or early second quarter, 2018.
“During the fourth quarter of 2017, the Company was able to grow our net loan portfolio by $0.6 million. Growth in our deposit liabilities total $5.2 million, which included growth in our non-interest bearing DDA of $3.7 million. Cash generated from our growth in deposits and reductions in our cash and investment portfolio was used to reduce our FHLB borrowings outstanding by $10 million. Net interest income was $12.0 million during the fourth quarter of 2017, an increase of $0.2 million during the quarter. Net interest income was helped by the fact that the adjustable rate portion of our loan portfolio continued to reset to higher yields, in response to increases to short term rates by the Federal Open Market Committee and increases in short term LIBOR rates. The reduction in our Stockholder’s Equity during the quarter was related to the additional income tax expense recorded because of H.R.1. Our personnel worked diligently during the fourth quarter to maintain our profitability while continuing to provide for our customers’ financial needs, providing them with what they need when they need it,” stated CEO Tom McGraw.
“Our credit quality continued to improve during the fourth quarter of 2017. Total non-performing assets decreased by $3.1 million. This decrease was the result of successful efforts to reduce the level of our non-accrual loans. We did foreclose on one commercial property located in Lafayette, CA, bringing our total number of foreclosure properties to two, with a carrying value of $3.3 million as of December 31, 2017. We utilize a conservative underwriting approach in our loan origination process which, historically, has served to keep problem loans at reasonable levels. During the quarter we recorded a $0.2 million loan recovery. This recovery was possible due to the strong credit quality inherent in our loan portfolio coupled with the fact we experienced loan recoveries, net of loan charge offs, totaling $0.1 million during the quarter. Management believes our allowance for loan losses are adequate given the level of risk that has been identified in our loan portfolio,” continued Tom McGraw.
FNB Bancorp and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Dollar and share amounts in thousands, except earnings per share)
(Unaudited)
As of
December 31,
2017
2016
ASSETS
Cash and due from banks
$
18,353
$
15,758
Interest-bearing time deposits with financial institutions
130
205
Securities available for sale, at fair value
355,857
360,105
Other equity securities
7,567
7,206
Loans, net of deferred loan fees and allowance for loan losses
829,766
782,485
Bank premises, equipment and leasehold improvements, net
9,322
9,837
Bank owned life insurance
16,637
16,247
Accrued interest receivable
5,317
4,942
Other real estate owned
3,300
1,427
Goodwill
4,580
4,580
Prepaid expenses
825
856
Other assets
13,584
15,746
TOTAL ASSETS
$
1,265,238
$
1,219,394
LIABILITIES
Deposits:
Demand, noninterest bearing
$
313,435
$
296,273
Demand, interest bearing
130,988
121,086
Savings and money market
467,788
487,763
Time
138,084
114,384
Total Deposits
1,050,295
1,019,506
Federal Home Loan Bank advances
75,000
71,000
Note payable
3,750
4,350
Accrued expenses and other liabilities
16,913
14,224
Total Liabilities
1,145,958
1,109,080
STOCKHOLDERS’ EQUITY
Common stock, no par value
85,565
84,283
Retained earnings
34,654
27,577
Accumulated other comprehensive (losses), net of tax
(939)
(1,546)
Total Stockholders’ Equity
119,280
110,314
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,265,238
$
1,219,394
FNB Bancorp and Subsidiary
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollar and share amounts in thousands, except earnings per share)
(Unaudited)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2017
2016
2017
2016
INTEREST INCOME
Interest and fees on loans
$
10,867
$
9,578
$
41,956
$
38,313
Interest on dividends and securities
2,119
1,925
8,136
7,156
Interest on deposits with other financial institutions
42
7
126
44
Total interest income
13,028
11,510
50,218
45,513
INTEREST EXPENSE
Deposits
757
631
2,807
2,780
Federal Home Loan Bank advances
249
48
850
67
Interest on note payable
52
55
214
222
Total interest expense
1,058
734
3,871
3,069
NET INTEREST INCOME
11,970
10,776
46,347
42,444
(Recovery of) provision for loan losses
(220)
–
(360)
150
NET INTEREST INCOME AFTER (RECOVERY OF) PROVISION FOR LOAN LOSSES
12,190
10,776
46,707
42,294
NONINTEREST INCOME
Service charges
532
599
2,264
2,461
Net gain on sale of available-for-sale securities
–
57
210
438
Earnings on bank owned life insurance
97
102
390
402
Other income
237
565
996
1,294
Total noninterest income
866
1,323
3,860
4,595
NONINTEREST EXPENSES
Salaries and employee benefits
4,906
4,839
19,366
19,474
Occupancy expense
685
635
2,747
2,528
Equipment expense
402
448
1,646
1,765
Professional fees
261
384
1,482
1,363
FDIC assessment
90
150
400
600
Telephone, postage, supplies
324
298
1,267
1,199
Advertising expense
109
120
451
524
Data processing expense
143
178
571
657
Low income housing expense
122
71
472
284
Surety insurance
87
85
349
347
Director fees
72
72
288
288
Other real estate owned expense (recovery), net
63
5
80
(5)
Other expenses
354
458
1,430
1,668
Total noninterest expense
7,618
7,743
30,549
30,692
EARNINGS BEFORE PROVISION FOR INCOME TAXES
5,438
4,356
20,018
16,197
Provision for income taxes
4,478
1,314
9,307
5,696
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS
$
960
$
3,042
$
10,711
$
10,501
Per Share and Shareholder Information
Basic earnings per share available to common stockholders
$
0.13
$
0.42
$
1.46
$
1.45
Diluted earnings per share available to common stockholders
$
0.13
$
0.41
$
1.41
$
1.42
Cash dividends declared
$
964
$
739
$
3,584
$
2,847
Average shares outstanding
7,412
7,275
7,361
7,233
Average diluted shares outstanding
7,669
7,461
7,607
7,417
Shares outstanding as of the end of period
7,442
7,279
7,442
7,279
FNB Bancorp and Subsidiary
FINANCIAL HIGHLIGHTS
(Dollar and share amounts in thousands, except earnings per share)
(Unaudited)
(Unaudited)
Three Months Ended
Twelve Months Ended
December 31,
December 31,
2017
2016
2017
2016
AVERAGE BALANCES
Total Assets
$
1,276,437
$
1,191,942
$
1,257,848
$
1,163,454
Total Loans
834,653
763,654
823,333
746,829
Total Earning Assets
1,209,339
1,127,339
1,192,083
1,099,192
Total Deposits
1,054,239
1,018,071
1,033,117
1,017,398
Total Stockholder’s Equity
120,858
111,807
116,902
109,854
SELECTED PERFORMANCE DATA
Annualized return on average assets
0.30
%
1.02
%
0.85
%
0.90
%
Annualized return on average equity
3.18
%
10.88
%
9.16
%
9.56
%
Net interest margin (taxable equivalent)
4.01
%
3.89
%
3.97
%
3.97
%
Average loans as a percent of average deposits
79.17
%
75.01
%
79.69
%
73.41
%
Average total stockholders’ equity as a % of average total assets
9.47
%
9.38
%
9.29
%
9.44
%
Annualized common dividend payout ratio
100.42
%
24.29
%
33.46
%
27.11
%
NON-PERFORMING ASSETS
(Dollars in thousands)
(Extracted from
audited annual
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
financial statements)
December 31,
September 30,
June 30,
March 31,
December 31,
2017
2017
2017
2017
2016
Non-accrual loans
$
1,940
$
6,933
$
7,363
$
8,444
$
6,647
Other real estate owned
3,300
1,471
1,459
1,443
1,427
Total non-performing assets
$
5,240
$
8,404
$
8,822
$
9,887
$
8,074
Loan loss reserve
$
10,171
$
10,250
$
10,177
$
10,144
$
10,167
Non-accrual loans/Gross loans
0.23
%
0.83
%
0.90
%
1.03
%
0.84
%
Loan loss reserves/Gross loans
1.21
%
1.22
%
1.24
%
1.24
%
1.28
%
FNB Bancorp and Subsidiary
CONSOLIDATED BALANCE SHEETS
(Dollar and share amounts in thousands, except earnings per share)
(Extracted from
audited annual
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
financial statements)
December 31,
September 30,
June 30,
March 31,
December 31,
2017
2017
2017
2017
2016
ASSETS
Cash and due from banks
$
18,353
$
23,714
$
21,859
$
25,337
$
15,758
Interest-bearing time deposits with financial institutions
130
230
230
205
205
Securities available for sale, at fair value
355,857
360,301
362,006
353,364
360,105
Other equity securities
7,567
7,567
7,567
7,211
7,206
Loans, net of deferred loan fees and allowance for loan losses
829,766
829,100
808,508
807,191
782,485
Bank premises, equipment and leasehold improvements, net
9,322
9,417
9,416
9,571
9,837
Bank owned life insurance
16,637
16,540
16,438
16,349
16,247
Accrued interest receivable
5,317
4,804
4,945
4,785
4,942
Other real estate owned
3,300
1,471
1,459
1,443
1,427
Goodwill
4,580
4,580
4,580
4,580
4,580
Prepaid expenses
825
469
621
768
856
Other assets
13,584
16,421
16,032
15,917
15,746
TOTAL ASSETS
$
1,265,238
$
1,274,614
$
1,253,661
$
1,246,721
$
1,219,394
LIABILITIES
Deposits:
Demand, noninterest bearing
$
313,435
$
309,753
$
296,249
$
287,029
$
296,273
Demand, interest bearing
130,988
122,353
129,435
125,643
121,086
Savings and money market
467,788
482,335
472,050
496,697
487,763
Time
138,084
130,630
124,604
115,622
114,384
Total Deposits
1,050,295
1,045,071
1,022,338
1,024,991
1,019,506
Federal Home Loan Bank advances
75,000
85,000
91,000
86,000
71,000
Note payable
3,750
3,900
4,050
4,200
4,350
Accrued expenses and other liabilities
16,913
19,447
17,546
17,198
14,224
Total Liabilities
1,145,958
1,153,418
1,134,934
1,132,389
1,109,080
STOCKHOLDERS’ EQUITY
Common stock, no par value
85,565
85,309
85,159
84,603
84,283
Retained Earnings
34,654
34,655
32,306
29,842
27,577
Accumulated other comprehensive (losses) earnings, net of tax
(939)
1,232
1,262
(113)
(1,546)
Total Stockholders’ Equity
119,280
121,196
118,727
114,332
110,314
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
$
1,265,238
$
1,274,614
$
1,253,661
$
1,246,721
$
1,219,394
FNB Bancorp and Subsidiary
CONSOLIDATED STATEMENTS OF INCOME
(Dollar and share amounts in thousands, except earnings per share)
(Unaudited)
Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
2017
2017
2017
2017
2016
INTEREST INCOME
Interest and fees on loans
$
10,867
$
10,646
$
10,370
$
10,073
$
9,578
Interest on dividends and securities
2,119
2,085
1,989
1,943
1,925
Interest on deposits with other financial institutions
42
54
19
11
7
Total interest income
13,028
12,785
12,378
12,027
11,510
INTEREST EXPENSE
Deposits
757
737
677
636
631
Federal Home Loan Bank advances
249
241
214
146
48
Interest on note payable
52
54
55
53
55
Total interest expense
1,058
1,032
946
835
734
NET INTEREST INCOME
11,970
11,753
11,432
11,192
10,776
Recovery of loan losses
(220)
–
(140)
–
–
NET INTEREST INCOME AFTER RECOVERY OF LOAN LOSSES
12,190
11,753
11,572
11,192
10,776
NONINTEREST INCOME
Service charges
532
571
564
597
599
Net gain on sale of available-for-sale securities
–
59
123
28
57
Earnings on bank owned life insurance
97
102
89
102
102
Other income
237
240
236
283
565
Total noninterest income
866
972
1,012
1,010
1,323
NONINTEREST EXPENSES
Salaries and employee benefits
4,906
4,824
4,862
4,774
4,839
Occupancy expense
685
704
707
651
635
Equipment expense
402
436
406
402
448
Professional fees
261
340
408
473
384
FDIC assessment
90
90
90
130
150
Telephone, postage, supplies
324
321
325
297
298
Advertising expense
109
127
107
108
120
Data processing expense
143
145
144
139
178
Low income housing expense
122
122
123
105
71
Surety insurance
87
89
89
84
85
Director fees
72
72
72
72
72
Other real estate owned expense, net
63
–
7
10
5
Other expenses
354
378
338
360
458
Total noninterest expense
7,618
7,648
7,678
7,605
7,743
EARNINGS BEFORE PROVISION FOR INCOME TAXES
5,438
5,077
4,906
4,597
4,356
Provision for income taxes
4,478
1,766
1,555
1,508
1,314
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS
$
960
$
3,311
$
3,351
$
3,089
$
3,042
FNB Bancorp and Subsidiary
(Dollar and share amounts in thousands, except earnings per share)
(Unaudited)
Three Months Ended
December 31,
September 30,
June 30,
March 31,
December 31,
2017
2017
2017
2017
2016
Per Share and Shareholder Information:
Basic earnings per share available to common stockholders
$
0.13
$
0.45
$
0.46
$
0.42
$
0.42
Diluted earnings per share available to common stockholders
$
0.13
$
0.43
$
0.44
$
0.41
$
0.41
Cash dividends declared
$
964
$
959
$
882
$
780
$
739
Average shares outstanding
7,412
7,375
7,342
7,301
7,275
Average diluted shares outstanding
7,669
7,619
7,585
7,518
7,461
Shares outstanding as of end of period
7,442
7,403
7,362
7,311
7,280
SELECTED PERFORMANCE DATA
Annualized return on average assets
0.30
%
1.05
%
1.07
%
1.00
%
1.02
%
Annualized return on average equity
3.18
%
11.10
%
11.58
%
11.24
%
10.88
%
Net interest margin (taxable equivalent)
4.01
%
3.97
%
3.93
%
3.98
%
3.89
%
Average loans as a percent of average deposits
79.17
%
78.73
%
81.18
%
79.73
%
75.01
%
Average total stockholders’ equity as a % of average total assets
9.47
%
9.43
%
9.21
%
8.91
%
9.38
%
Annualized common dividend payout ratio
100.42
%
28.96
%
26.32
%
25.25
%
24.29
%
(Extracted from
LOANS
audited annual
(Dollars in thousands)
(Unaudited)
(Unaudited)
(Unaudited)
(Unaudited)
financial statements)
December 31,
September 30,
June 30,
March 31,
December 31,
2017
2017
2017
2017
2016
Real estate loans:
Construction
$
35,206
$
49,374
$
46,325
$
49,490
$
43,683
Commercial
456,992
443,556
436,286
431,295
421,222
Multi family
105,138
109,396
104,373
112,911
105,963
Residential
173,476
174,000
166,610
169,373
170,523
Commercial & industrial loans
55,727
51,827
57,217
49,277
48,874
Consumer loans
14,057
11,193
8,884
6,065
3,533
Gross loans
840,596
839,346
819,695
818,411
793,798
Net deferred loan (fees) cost
(659)
4
(1,010)
(1,076)
(1,146)
Allowance for loan losses
(10,171)
(10,250)
(10,177)
(10,144)
(10,167)
NET LOANS
$
829,766
$
829,100
$
808,508
$
807,191
$
782,485
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.
Contacts:
Tom McGraw, Chief Executive Officer (650) 875-4864
Dave Curtis, Chief Financial Officer (650) 875-4862
Website: www.fnbnorcal.com
SOURCE: FNB Bancorp
ReleaseID: 487417
