/EINPresswire.com/ -- SOUTH SAN FRANCISCO, CA -- (Marketwired) -- 01/28/16 -- FNB Bancorp (OTCQB: FNBG), parent company of First National Bank of Northern California (the "Bank"), today announced net earnings available to common shareholders for the fourth quarter of 2015 of $2,088,000 or $0.45 per diluted share, compared to net earnings available to common shareholders of $4,123,000 or $0.89 per diluted share for the fourth quarter of 2014.

The fourth quarter of 2015 was the first full quarter following the acquisition of America California Bank. This acquisition helped the bank to achieve average assets of $1.1 billion during the fourth quarter of 2015, an increase of $225 million over fourth quarter 2014 levels.

During the fourth quarter, net loans grew by $25.9 million, which equates to an annualized growth rate of 15%. During this same time period, total assets grew by only $11.7 million or an annualized growth rate of 4%. Funding for fourth quarter loan growth was accomplished through increased short term FHLB advances of $17 million that had an annualized interest cost of less than 0.5% and a decrease in cash balances in our interest earning DDA account with the Federal Reserve Bank ("FRB"). At December 31, 2015, our DDA account balance with the FRB totaled $0.4 million, a decrease of $23.8 million during the fourth quarter of 2015.

The Company's increased lending, decreased cash position, and use of low cost borrowings allowed the Company to maintain a taxable equivalent net interest margin at 4.0% during the quarter, the same level achieved during the third quarter of 2015.

"The fourth quarter of 2015 produced solid results for the Company, highlighted by the successful integration of the computer systems utilized by America California Bank with and into the systems maintained for First National Bank of Northern California. The Bank was able to leverage the relationships acquired in the America California Bank acquisition and utilize the growth in equity that has occurred to grow the Bank's loan portfolio during the quarter. There was some deposit base runoff during the fourth quarter, but the reduction in deposit levels was primarily isolated to a few deposit relationships that reduced their deposit positions with the Bank during the fourth quarter, but continue to bank with us," stated Tom McGraw, CEO.

Financial Highlights:
 Fourth Quarter, 2015                      (Unaudited)
                     ------------------------------------------------------
Consolidated
 Statements of
 Earnings                                           Twelve        Twelve
(in '000s except     Three months  Three Months     Months        Months
 earnings per share     Ended         Ended         Ended         Ended
 amounts)            December 31,  December 31,  December 31,  December 31,
                         2015          2014          2015          2014
                     ------------  ------------  ------------  ------------

Interest income      $     11,021  $      9,315  $     39,282  $     36,859
Interest expense              795           531         2,597         2,093
                     ------------  ------------  ------------  ------------
  Net interest income      10,226         8,784        36,685        34,766
Provision (recovery)
 for loan losses             (530)       (1,095)         (305)       (1,020)
Noninterest income          1,127         3,522         4,496         6,589
Noninterest expense         8,714         6,761        29,925        27,868
                     ------------  ------------  ------------  ------------
  Income before
   income taxes             3,169         6,640        11,561        14,507
Provision for income
 taxes                     (1,081)       (2,517)       (3,364)       (5,098)
                     ------------  ------------  ------------  ------------
  Net earnings              2,088         4,123         8,197         9,409
  Dividends and
   discount accretion
   on preferred stock           -             -             -           170
                     ------------  ------------  ------------  ------------
  Net earnings
   available to
   common
   shareholders      $      2,088  $      4,123  $      8,197  $      9,239
                     ============  ============  ============  ============


Basic earnings per
 share               $       0.46  $       0.92  $       1.82  $       2.08
Diluted earnings per
 share               $       0.45  $       0.89  $       1.77  $       2.01

Average assets       $  1,126,582  $    914,250  $  1,010,435  $    901,533
Average equity       $    108,822  $     94,500  $    100,621  $     90,938
Return on average
 assets                      0.74%         1.80%         0.81%         1.02%
Return on average
 equity                      7.67%        17.45%         8.15%        10.16%
Efficiency ratio               77%           55%           73%           67%
Net interest margin
 (taxable equivalent)        4.00%         4.17%         4.06%         4.14%
Average shares
 outstanding                4,536         4,469         4,516         4,444
Average diluted
 shares outstanding         4,670         4,608         4,644         4,586



Financial Highlights: Fourth Quarter, 2015          As of          As of
Consolidated Balance Sheets                     December 31,   December 31,
(in '000s)                                          2015           2014
                                               -------------- --------------

  Assets:
Cash and due from banks                        $       12,314 $       14,978
Interest-bearing time deposits with
other financial institutions                              205          2,784
Securities available for sale, at fair value          329,207        264,881
Loans, net                                            722,747        583,715
Premises, equipment and leasehold
 improvements, net                                     10,202         10,951
Bank owned life insurance                              15,845         12,510
Other equity securities                                 6,748          5,769
Accrued interest receivable                             4,511          3,725
Other real estate owned, net                            1,026            763
Goodwill                                                4,580          1,841
Prepaid expenses                                          997          1,045
Other assets                                           15,967         14,202
                                               -------------- --------------
Total assets                                   $    1,124,349 $      917,164
                                               ============== ==============

  Liabilities and stockholders' equity:
Deposits:
  Demand and NOW                               $      366,126 $      292,359
  Savings and money market                            491,633        394,676
  Time                                                125,430        105,159
                                               -------------- --------------
    Total deposits                                    983,189        792,194
Federal Home Loan Bank advances                        17,000          9,000
Note payable                                            4,950          5,550
Accrued expenses and other liabilities                 15,048         13,332
                                               -------------- --------------
    Total liabilities                               1,020,187        820,076
Stockholders' equity                                  104,162         97,088
                                               -------------- --------------
  Total liabilities and stockholders' equity   $    1,124,349 $      917,164
                                               ============== ==============

Other Financial Information
Allowance for loan losses                      $        9,970 $        9,700
Nonperforming assets                           $        7,800 $        6,411
Total gross loans                              $      732,717 $      593,415

"Year over year fourth quarter noninterest income comparisons are significant, due primarily to the gain on sale of branch premise property of approximately $2 million that occurred during the fourth quarter of 2014. Increased noninterest expenses during the fourth quarter of 2015 were primarily related to increased expense accruals related to the restructuring efforts pertaining to the Company's executive salary continuation agreements. The amendment of these agreements is necessary to insure these agreements minimize any potential negative income tax consequences and better associate the expense accruals of the Bank with the achievements the Bank has been able to achieve. Our capital positions at December 31, 2015 remain "well capitalized" as defined by Basel III regulations, with the Bank maintaining the following capital ratios as of December 31, 2015: Leverage capital ratio of 9.08%, Common Equity Tier 1 Risk-based capital ratio of 10.53%; Tier 1 Risk-based capital ratio of 10.53% and a Total Risk-Based capital ratio of 11.58%," continued Tom McGraw.

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

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