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

Earnings

Net Income in the 2018 third quarter increased 165% to a record of $1,371,000 ($0.48 per fully diluted common share) as compared to the 2017 third quarter net income of $517,000 ($0.19 per fully diluted common share). Annualized return on average common equity (ROE) for the 3 months ended September 30, 2018 increased to 12.4%

The increase in net income during the 2018 third quarter was primarily attributed to a $557,000, or 17%, increase in net-interest income. The increase in net-interest income was primarily due to a 20% increase in mortgage loan interest income and a 33% increase in interest income from investment securities. Net income was positively affected by a $359,000, or 11% decrease in Non-Interest Expense. The decrease in non-interest expense was the result of a $60,000, or 3% decrease in compensation and employee benefits; a $58,000, or 45% reduction in Professional fees; a $54,000, or 51% decrease in Regulatory fees; and a $165,000, or 36% decrease in Other Non-operating expenses largely from a $53,000 decrease in advertising expense. Net Income was also affected by a $370,000 decrease, or 32.2%, in Total Non-Interest Income for the 2018 period, as compared to the 2017 period. The decrease in Non-Interest Income was due to a $310,000 decrease in Mortgage Banking Fees and a $135,000 decrease in SBA Fee Income. Other than Mortgage Banking and SBA Fees, our Non-Interest Income increased by $135,000 in the period.

Revenue (defined as net-interest income and total non-interest income) in the 2018 third quarter increased to $4.7 million, or 4% when compared to the 2017 period. Pre-provision for loan losses, pre-income tax expense – net income in the 3 months ended September 30, 2018 increased to $1.9 million, or 40.9% when compared to the 2017 period. The Company’s Net-Interest Margin increased in the 2018 third quarter to 4.43% from 4.39% in the 2017 period. The Efficiency Ratio improved to 60.0% in the 2018 period.

While the Company’s effective income tax rate decreased to 19.4% in the 2018 period, Income Tax expense increased by $126,000 as compared to the 2017 period.

Balance Sheet and Capital

Total assets at September 30, 2018 increased 13% to $382.7 million when compared to September 30, 2017. The increase in total assets was primarily due a 19% increase in net loans over the twelve month period to $238.5 million. Total Liabilities increased 15% over the period. Deposits were the primary component of these increases with total deposits of $317.7 million at September 30, 2018, an increase of 10% of which $84.8 million were Non-Interest Bearing, which represents an increase of 13% from September 30, 2017.

The Company’s increase in total assets were affected by a 19% decrease in Cash and Cash Equivalents to $20.5 million, an increase of 12% in Investment Securities to $101 million and an 862% increase in deferred tax assets to $839,000. The increase in total liabilities were affected by a $17.7 million, or 885% increase in Federal Home Loan Bank advances and a $3.1 million reduction/payoff of Subordinated Debentures/Trust Preferred Securities.

Total loans increased to $243.1 million at September 30, 2018. Of that total $217.8 million, or 90%, were secured by real estate.

REAL ESTATE SECURED LOANS
September 30, 2018
(In Thousands)
							% of Total Equity
							and Loan Loss
		Balances		% of Total Loans			Reserves
1-4 Family		$92,086		37.89	%		189.53	%
Multi-Family		9,268		3.81	%		19.08	%
Land & Construction		48,766		20.06	%		100.37	%
Commercial Real Estate
	Non-Owner Occupied	25,998		10.70	%		53.51	%
	Owner Occupied	41,663		17.14	%		85.75	%
TOTAL REAL ESTATE		$217,781		89.60	%		448.24	%
NON-REAL ESTATE SECURED LOANS
Commercial & Industrial		$19,508		8.03	%		40.15	%
Consumer		6,871		2.83	%		14.14	%
TOTAL COMMERCIAL &
	INDUSTRIAL & CONSUMER	$26,379		10.85	%		54.29	%
Less unearned income on loans		-1,098		-0.45	%		-2.26	%
TOTAL LOANS		$243,062		100.00	%		500.27	%

CONSOLIDATED LOAN AND DEPOSIT BALANCES BY MARKET
September 30, 2018
(In Thousands)
Market		Deposit Balances					Loan Balances
Tangipahoa Parish (4 offices)		$234,705		73.9	%		$96,006		39.4	%
St. Tammany Parish (2 offices)		38,357		12.1	%		72,852		29.9	%
Jefferson Parish (1 office)		44,657		14.1	%		69,834		28.7	%
Other		0		0.0	%		4,913		2.0	%
Total		$317,719		100	%		$243,605		100	%

Common Stockholders’ Equity increased by $1.7 million, or 4% to $44.0 million for the twelve months ended September 30, 2018.

Retained Earnings increased by $4.3 million to $24.4 million for the twelve month period. Other Comprehensive Income decreased by $1.9 million, or 792% from September 30, 2017 to September 30, 2018. Tangible Book value per common share increased to $16.26 as total common shares of 2,703,944 were outstanding at September 30, 2018. Of the 2,703,944 outstanding shares; 49,140 shares are restricted common shares that represent stock awards to officers and directors of the Bank and Company which are not vested as of September 30, 2018.

At the subsidiary bank level, Tier 1 Capital increased to $ 39.9 million at September 30, 2018.

FPB FINANCIAL CORP.
CONSOLIDATED RATE & YIELD
For the Three Months Ended September 30, 2018
(In Thousands)
						2018			2017
						Average			Average
		Average				Yield/			Yield/
		Balance		Interest		Rate			Rate
Interest-Earning Assets
	Loans Receivable	$235,801		$3,832		6.45	%		6.53	%
	Mortgage-Backed Securities	18,898		112		2.35	%		1.79	%
	Investment Securities AFS	62,129		411		2.62	%		2.11	%
	Investment Securities HTM	5,376		39		2.88	%		2.91	%
	Trading Assets	134		0		0.00	%		0.00	%
	State & Municipal Securities	14,437		86		2.36	%		2.22	%
	Federal Home Loan Bank Stock	1,310		8		2.42	%		1.55	%
	First National Bankers Bank Stock	300		2		2.68	%		4.02	%
	Interest-earning deposits	12,814		37		1.15	%		1.09	%
	Total Interest-Earning Assets	351,199		4,527		5.11	%		4.91	%
Non-Interest Earning Assets		28,033
Less Allowance for Loan Loss		-4,562
	Total Assets	$374,670
Interest-Bearing Liabilities
	Deposits	$233,323		$503		0.86	%		0.65	%
	FHLB Advances	17,663		102		2.29	%		2.35	%
	Fed Funds Purchased	0		0		0.00	%		0.00	%
	Preferred Statutory Trust	0		0		0.00	%		4.48	%
	Total Interest-Bearing Liabilities	250,986		605		0.96	%		0.72	%
Non-Interest Bearing Liabilities		79,825
	Total Liabilities	330,811
Stockholders' Equity		43,859
	Total Liabilities and
	Stockholders' Equity	$374,670
Net Interest-Earning Assets		$100,213
Net Interest Income; Average
	Interest Rate Spread			$3,922		4.15	%		4.19	%
Net Interest Margin						4.43	%		4.39	%
	Average Interest-Earning Assets
	to Average Interest-Bearing
	Liabilities	139.93%

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

• Net Interest Income increased to $3.9 million from $3.4 million, or 16.5%
• Service charges on deposits increased to $288,000 from $236,000, or 21.7%
• Total non-interest expenses decreased to $2.8 million from $3.2 million, or 11.3%
• Compensation and employee benefits decreased by 3.3%
• Provisions for Loan Losses decreased to $177,000, or 71.1%
• The effective tax rate decreased to 19.4%

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

• Net Earnings per diluted common share increased to $1.41, or 213%
• Annualized Return on Average Equity increased to 12.6%
• Total Revenue (Net interest income and Non-interest income) increased to $13.9 million or 14.7%
• The Efficiency Ratio improved to 61.2%
• Total Common Stockholders’ Equity increased to $44.0 million, or 3.9%
• Cash Dividends paid to common shareholders increased to $557,000 in 2018, or a 53% increase
• Tangible Book Value per common share increased to $16.26
• Net Loans increased to $238.5 million or 19.2%
• Allowance for Loan Losses increased to $4.6 million, or 8.0%
• Non-Interest Bearing Deposits total $84.8 million, an increase of 12.6%
• Non-Maturity deposits increased by 7.2% to $259.8 million
• Total Assets increased by 13.2% to $382.7 million
• FHLB advances increased by 887.5% to $19.7 million 

Asset Quality

Non-performing assets (NPA’s) at September 30, 2018 decreased by $718,000, or 20.9% to $2.7 million when compared to September 30, 2017 and represents 1.12% of gross loans.   NPA’s at June 30, 2018 totaled $2.0 million. The decrease during the 12 month period ending September 30, 2018 in NPA’s were attributed to an increase of $101,000 in loans on nonaccrual, to $2.2 million; a decrease of $721,000 in Other Real Estate Owned (OREO), to $0 and a $98,000 decrease in loans 90-days past due and accruing, to $42,000. The increase in NPA’s during the 3 month period ending September 30, 2018 were attributed to an increase of $661,000 in non-accrual loans and a $41,000 increase in loans 90-days past due and accruing, to $42,000. The Company’s allowance for loan losses (ALLL) increased by 8% to $4.6 million at September 30, 2018 when compared to September 30, 2017. The $4.6 million in the ALLL represents 2.0% of average net loans in the 2018 third quarter period and 169.9% of NPA’s on September 30, 2018. At June 30, 2018 the Company’s ALLL totaled $4.5 million or 2.0% of 2018 second quarter average net loans and 226.1% of NPA’s at period end.

Net loan charge-offs for the 2018 third quarter totaled $114,000 (0.20% of average net loans) up from $70,000 (0.14%) of net loan charge-offs in the 2017 third quarter. Net loan charge-offs were $6,000 (0.01%) in the 2018 second quarter. Troubled Debt Restructured (TDR’s) through September 30, 2018 were $3.6 million, of which $961,000 are on nonaccrual. Total TDR’s on September 30, 2017 and June 30, 2018 were $3.2 million and $3.5 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		Sept. 30,		Sept. 30,				Jun. 30,
		2018		2017		%		2018		%
		(Unaudited)		(Unaudited)		Change		(Unaudited)		Change
Tangible Common Stockholders' Equity		43,977,221		42,325,625		4		43,348,220		1
Total Assets		382,659,213		337,925,939		13		369,722,825		3
Net Loans		238,453,186		200,004,420		19		227,518,291		5
Non-Interest Bearing Deposits		84,787,867		75,276,323		13		78,586,717		8
Non-Maturity Deposits (included in Interest and non-interest bearing Deposits)		259,790,892		242,251,184		7		255,462,169		2
CDARs (included in Interest-Bearing deposits)		5,167,094		4,022,470		28		5,152,591		0
FHLB Advances		19,705,000		2,000,000		885		17,500,000		13
Foreclosed Assets		0		783,170		(100)		0		0
Non-Performing Assets (includes Foreclosed Assets and Other Real Estate Owned)		2,712,553		3,430,584		(21)		2,010,462		35
Allowance for Loan Losses		4,608,554		4,267,899		8		4,545,265		1

CONSOLIDATED STATEMENT OF EARNINGS
		For the Three Months Ended						For the Nine Months Ended
		Sept. 30,		Jun. 30,		Sept. 30,		Sept. 30,		Sept. 30,
		2018		2018		2017		2018		2017
		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
INTEREST AND DIVIDEND INCOME
Mortgage Loans		$3,334,483		$3,236,875		$2,768,117		$9,642,897		$7,516,523
Commercial Loans		303,790		304,117		281,084		910,040		748,095
Consumer Loans		192,736		192,521		191,637		582,179		590,460
Investment Securities and
Deposits		695,700		643,997		523,803		1,947,897		1,512,898
TOTAL INTEREST AND DIVIDEND INCOME		4,526,710		4,377,509		3,764,641		13,083,013		10,367,976
INTEREST EXPENSE
Deposits		502,932		415,222		351,440		1,282,160		913,868
Federal Home Loan Bank
Advances and Other Borrowings		101,775		63,741		13,008		252,180		58,669
Subordinated debentures/trust
Preferred securities		0		0		34,909		36,920		100,206
TOTAL INTEREST EXPENSE		604,707		478,963		399,357		1,571,260		1,072,743
NET INTEREST INCOME		3,922,003		3,898,546		3,365,284		11,511,753		9,295,233
Provisions for loan losses		177,000		60,000		612,000		367,000		1,122,000
	NET INTEREST INCOME
	AFTER PROVISION FOR
	LOAN LOSSES	3,745,003		3,838,546		2,753,284		11,144,753		8,173,233
NON-INTEREST INCOME
Service Charges on Deposits		287,861		322,516		236,450		908,039		665,239
Interchange Fees		205,610		203,681		181,428		594,061		544,894
Mortgage Banking Fees		100,915		49,702		410,517		381,307		1,014,203
Gain on Bank Owned Life Insurance		45,898		45,937		48,265		137,697		137,557
Loan Fees and Charges		75,261		28,762		53,424		145,684		130,998
SBA Fee Income		(6,327)		7,259		128,613		75,351		128,613
Gain/(Loss) on Trading Accounts		3,848		800		(211)		11,119		(8,600)
Gain/(Loss) on Sale of Investments
and Foreclosed Assets		0		(3,413)		24,327		(72,545)		20,453
Other		63,312		71,431		63,446		221,928		204,690
TOTAL NON-INTEREST INCOME		776,378		726,675		1,146,259		2,402,641		2,838,047
NON-INTEREST EXPENSE
Compensation and Employee Benefits		1,751,480		1,700,379		1,811,219		5,250,106		5,622,158
Occupancy, local and state
taxes and Equipment		411,793		410,661		413,537		1,221,837		1,228,846
Technology and Information Processing		247,875		243,311		268,269		705,853		749,579
Professional Fees		69,467		69,923		127,491		194,540		305,541
Regulatory Fees		52,384		62,502		106,312		188,059		240,842
Other		286,819		343,092		451,581		952,671		1,363,152
TOTAL NON-INTEREST EXPENSE		2,819,819		2,829,869		3,178,409		8,513,066		9,510,118
INCOME BEFORE INCOME TAXES		1,701,562		1,735,352		721,134		5,034,328		1,501,162
Income Tax Expense		330,410		339,122		204,114		999,972		390,269
	NET INCOME	$1,371,151		$1,396,230		$517,020		$4,034,356		$1,110,893

	For the Three Months Ended						For the Nine Months Ended
	Sept. 30,		Jun. 30,		Sept. 30,		Sept. 30,		Sept. 30,
	2018		2018		2017		2018		2017
	(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)		(Unaudited)
PER COMMON SHARE DATA
Net Earnings	$0.52		$0.53		$0.19		$1.52		$0.45
Diluted Net Earnings	$0.48		$0.49		$0.19		$1.41		$0.45
Revenue (Net Interest Income
and Non-Interest Income)	$1.77		$1.74		$1.70		$5.24		$4.96
Dividends Paid	$0.075		$0.075		$0.05		$0.210		$0.15
Book Value (Period End)	$16.26		$16.03		$15.93		$16.26		$15.93
Book Value Adjusted Net of
Other Comprehensive income
(Period Ended)	$16.87		$16.43		$15.84		$16.87		$15.84
RATIOS
ROA (Annualized Net Income
to Average Period Assets)	1.45%		1.51%		0.61%		1.47%		0.47%
ROE (Annualized Net Income
to Average Period Total
Stockholders' Equity)	12.40%		13.10%		4.86%		12.57%		3.84%
Net Interest Margin (Average
for the Period)	4.43%		4.55%		4.39%		4.48%		4.30%
Non-Interest expense less Non-Interest Income to Average Period
Total Assets (Annualized)	2.16%		2.30%		2.41%		2.18%		2.81%
Efficiency Ratio for the Period	60.02%		61.18%		70.45%		61.18%		78.38%
Net Loan Charge-Offs (Recoveries)
for the Period	$113,801		$6,492		$69,856		$134,572		$194,505
to Average Period Net Loans	0.20%		0.01%		0.14%		0.08%		0.15%
TDR's at Period End	$3,572,917		$3,457,509		$3,175,034		$3,572,917		$3,175,034
to Average Period Net Loans	1.55%		1.53%		1.61%		1.58%		1.77%
Non-Performing Assets
at Period End	$2,712,553		$2,010,462		$3,430,584		$2,712,553		$3,430,584
to Average Period Assets	0.72%		0.55%		1.03%		0.74%		1.08%
Allowance for Loan Losses
at Period End	$4,608,554		$4,545,265		$4,267,899		$4,608,554		$4,267,899
to Average Period Net Loans	1.99%		2.02%		2.17%		2.03%		2.38%
to Non-Performing Assets
at Period End	169.90%		226.08%		124.41%		169.90%		124.41%

CONSOLIDATED STATEMENT OF CONDITION
	Sept. 30,		Sept. 30,				Jun. 30,
	2018		2017		%		2018		%
	(Unaudited)		(Unaudited)		Change		(Unaudited)		Change
ASSETS
Cash and Cash Equivalents (including
Interest and Non-Interest Earning
Deposits)	$20,476,937		$25,144,154		(19)		$18,162,235		13
Securities - Held to Maturity	5,374,285		3,405,644		58		5,377,449		(0)
Securities - Available for Sale	95,601,806		86,789,197		10		96,533,213		(1)
Trading Securities	136,298		125,225		9		132,450		3
Bank Owned Life Insurance	7,242,147		7,057,131		3		7,196,249		1
Net Loans	238,453,186		200,326,778		19		227,518,291		5
Accrued Interest Receivable	1,615,192		1,203,375		34		1,462,974		10
Premises and Equipment, Net	11,115,643		11,553,154		(4)		11,238,035		(1)
Foreclosed Assets	0		785,170		(100)		0		0
Deferred Tax Assets	838,949		87,246		862		745,964		12
Other Assets	1,804,770		1,448,865		25		1,355,964		33
TOTAL ASSETS	$382,659,213		$337,925,939		13		$369,722,825		3
LIABILITIES
Deposits	$317,718,641		$289,418,157		10		$307,801,971		3
Federal Home Loan Bank Advances	19,705,000		2,000,000		885		17,500,000		13
Subordinated debentures/trust
Preferred securities	0		3,093,000		(100)		0		0
Other Liabilities	1,258,351		1,089,157		16		1,072,634		17
TOTAL LIABILITIES	$338,681,992		$295,600,314		15		$326,374,605		4
STOCKHOLDERS' EQUITY
Common Stock	$26,548		$14,192		87		$26,526		0
Capital Surplus	22,083,327		22,069,909		0		22,083,327		0
Unearned MRP Stock	(867,443)		(32,946)		(2533)		(875,120)		1
Retained Earnings	24,374,431		20,037,366		22		23,202,406		5
Other Comprehensive Income (Loss)	(1,639,642)		237,104		(792)		(1,088,918)		(51)
Total Stockholders' Equity	43,977,221		42,325,625		4		43,348,220		1
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY	$382,659,213		$337,925,939		13%		$369,722,825		3%

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, “On October 11, 2018, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.09 per share will be paid on December 26, 2018 to stockholders of record at the close of business on December 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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