Business & Finance
Business and Finance
Business and Finance
Thu, January 29, 2009 FPB Financial Corp.: FPB Financial Corp. Announces 2008 Earnings
HAMMOND, LA--(Marketwire - January 29, 2009) - FPB Financial Corp. (
Net income for the twelve months ended December 31, 2008 was $475,000 ($1.34 per diluted common share), down 58.7% from $1.15M ($3.49 per diluted common share), for the 2007 comparable period. The net loss for the three months ended December 31, 2008 was $454,000 ($1.28 per diluted common share), compared to a net income of $223,000 ($0.63 per diluted common share) for the 2007 fourth quarter.
Earnings for the 2008 year were affected by an increase of $1.13M, or 21.2% in net interest income, an increase of $1.44M or 28.5% in non-interest expenses, a decrease of $384,000 or 18.5% in non-interest income, and provisions for loans and investment securities losses increased $340,000 or 56.7% as compared to 2007.
The improvement in net interest income was due to an increase in net earning assets and an increase in the company's net interest margin to 4.22%. Non-interest expenses increased primarily due to increased expense for compensation, occupancy, technology and government fees/misc. taxes including federal deposit insurance premiums. Losses of $315,000 on investment trading accounts/on the sale of available-for-sale investment securities together with a $184,000 or 28.2% decrease in mortgage banking revenue, compared to the 2007 period, were responsible for the decrease in non-interest income. Provisions for loan ($440,000) and investment securities ($500,000) losses increased to $940,000 compared to $600,000 (loan) in 2007, primarily due to credit quality concerns in the national market for mortgage-backed investment securities.
Total tangible common stockholders' equity decreased $465,000 or 3.8% for the year ending December 31, 2008, this was due to accumulated other comprehensive income declining $814,000. The decline in accumulated other comprehensive income was primarily due to the company's investment in the AMF Ultra Short Mortgage Fund (ASARX) which invests primarily in the national market for private label and U.S. government agency mortgage-backed securities. Total assets increased $9.0M or 5.4%, this was primary due to the net loan portfolio increasing $12.66M or 10.6% and net premises and equipment increasing $3.13M or 52.9% due to the opening of two new branches in 2008. Net investment securities decreased $5.31M or 15.7%. Total liabilities increased $9.45M or 6.1% primarily due to deposits increasing $14.5M or 12.2%.
Based on the FASB amendment to EITF issue 99-20 last updated on January 6, 2009, the company has made a determination that the investment in the AMF Ultra Short Mortgage Fund (ASARX) is not required to be treated as other than temporarily impaired; if an impairment charge was to be taken as of December 31, 2008, the company would have recognized an after tax charge to earnings of $1.04M ($2.92 per diluted common share).
As of December 31, 2008 our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all federal banking regulations and definitions.
FPB Financial Corp. reported the following compared to December 31, 2007:
-- Net Interest Margin increased to 4.22, from 4.02% -- Total Deposits increased $14.5 million, or 12.2% -- Non-interest bearing deposits increased $7.1 million, or 50.0% -- Total Assets increased $9.0 million, or 5.4% -- Net Loans increased $12.7 million, or 10.6% -- Allowance for Loan and Investment Securities Losses increased $717,000, or 47.4%
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.
FPB Financial Corp. Dec. 31, Sept. 30, Dec. 31, Selected Balances (Unaudited) 2008 2008 2007 ----------- ----------- ----------- Cash and Cash Equivalents $ 4,798,919 $ 4,878,905 $ 6,321,168 Net Investment and mortgage-backed securities 28,541,332 17,576,663 33,849,611 Net Loans 132,283,593 125,087,715 119,627,069 Total Assets 175,708,262 156,712,216 166,721,692 Non-Interest Bearing Deposits 21,321,820 14,637,635 14,165,105 Interest Bearing Deposits 111,760,295 102,869,440 104,415,131 Non-Maturity Deposits (Included in interest and non-interest bearing deposits) 71,676,664 58,379,150 71,885,098 Brokered Deposits (Included in interest-bearing deposits) 13,556,808 9,744,545 5,719,089 FHLB Advances 27,369,724 23,075,580 32,183,198 Subordinated Debentures/Trust Preferred Securities 3,093,000 3,093,000 3,093,000 Tangible Common Stockholders’ Equity 11,614,498 12,304,127 12,079,239 Tangible Common Book Value per Share 32.72 34.66 34.33 Non-Performing Assets 1,371,741 1,118,329 486,134 As a percentage of Total Assets 0.78% 0.71% 0.30% Allowance for Loan Losses 1,729,668 1,597,536 1,512,295 As a percentage of Gross Loans 1.27% 1.26% 1.23% Allowance for Investment Securities Losses 500,000 0 0 As a percentage of gross Investment Securities 1.76% 0 0 CONSOLIDATED STATEMENTS OF EARNINGS (UNAUDITED) For the Three Months For the Twelve Months Ended Ended Dec. 31, Dec. 31, Dec. 31, Dec. 31, 2008 2007 2008 2007 (Unaudited) (Unaudited) (Unaudited) (Unaudited) INTEREST INCOME: Mortgage loans $ 1,886,019 $ 1,813,191 $ 7,574,061 $ 6,745,109 Consumer Loans 173,351 135,607 643,188 513,885 Premium Finance Loans 140,488 186,636 634,002 695,354 Lines of credit 95,370 112,579 400,854 411,350 Commercial Loans 75,159 74,492 274,064 270,653 Loans on deposits 35,254 32,814 134,685 125,334 FHLB stock and other Investment securities 81,715 218,001 731,376 761,892 Mortgage-backed securities 116,542 19,829 301,172 82,937 Demand deposits 3,217 47,738 78,483 316,113 ----------- ----------- ----------- ----------- TOTAL INTEREST INCOME 2,607,115 2,640,887 10,771,885 9,922,627 INTEREST EXPENSE: Deposits 669,377 844,376 2,941,283 3,420,330 Federal Home Loan Bank Advances 253,305 311,317 1,177,410 993,516 Subordinated Debentures/ Trust Preferred Securities 51,415 42,915 183,945 171,662 ----------- ----------- ----------- ----------- TOTAL INTEREST EXPENSE 974,097 1,198,608 4,302,638 4,585,508 ----------- ----------- ----------- ----------- NET INTEREST INCOME 1,663,018 1,442,279 6,469,247 5,337,119 Provisions for loan losses 230,000 150,000 440,000 600,000 Provisions for Investment Securities losses 500,000 0 500,000 0 ----------- ----------- ----------- ----------- NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES AND INVESTMENT SECURITIES 903,018 1,292,279 5,529,247 4,737,119 ----------- ----------- ----------- ----------- NON-INTEREST INCOME Service charge on deposits 234,339 198,766 831,196 776,878 Mortgage Banking 83,738 133,649 468,019 651,857 Interchange Fees 66,018 58,990 242,188 200,592 Loan Fees and Charges 40,717 45,890 171,870 138,580 Premium Finance 31,632 44,583 158,788 152,862 Gain/(Loss) on Investment Trading Accounts (190,059) (31,363) (298,108) (34,589) Profit/(Loss) on sale of Investments (17,109) 17,257 (17,109) 67,132 Other 35,368 22,852 131,883 119,398 ----------- ----------- ----------- ----------- TOTAL NON-INTEREST INCOME 284,644 490,624 1,688,727 2,072,710 ----------- ----------- ----------- ----------- NON-INTEREST EXPENSE Compensation and Employee Benefits 896,229 773,267 3,603,189 2,910,025 Occupancy, Property Taxes, and Equipment 202,165 139,253 662,376 460,987 Technology and Information Processing 220,409 122,883 610,149 407,172 Federal Deposit Insurance, Supervisory Fees/Taxes 63,502 44,448 233,553 156,043 Professional Fees 60,394 33,827 196,903 179,683 Other 422,627 309,584 1,193,248 944,895 ----------- ----------- ----------- ----------- TOTAL NON-INTEREST EXPENSE 1,865,326 1,423,262 6,499,418 5,058,805 ----------- ----------- ----------- ----------- INCOME BEFORE INCOME TAXES (677,664) 359,641 718,556 1,751,024 Income Tax Expense (Benefit) (223,521) 136,829 243,939 602,729 ----------- ----------- ----------- ----------- NET INCOME $ (454,143) $ 222,812 $ 474,617 $ 1,148,295 =========== =========== =========== =========== Earnings Per Share $ (1.31) $ 0.66 $ 1.38 $ 3.64 Diluted Earnings Per Share $ (1.28) $ 0.63 $ 1.34 $ 3.49 Dividend Paid per Share $ 0.36 $ 0.36 $ 0.78 $ 0.72 Return on Average Assets (1.11%) 0.60% 0.29% 0.81% Return on Average Tangible Equity (14.97%) 7.40% 3.88% 10.75% Net Interest Margin 4.35% 4.05% 4.22% 4.02% Net Charge-Off (Recoveries) $ 98,000 $ 43,000 $ 223,000 $ 65,000 As a percentage of Average Total Loans 0.08% 0.04% 0.18% 0.06% Allowance for Loan Losses to Average Total Loans 1.36% 1.33% 1.39% 1.39% Non-Performing Loans to Average Total Loans 1.08% 0.43% 1.10% 0.45% CONSOLIDATED STATEMENTS OF CONDITION (UNAUDITED) Dec. 31, 2008 Sept. 30, 2008 Dec. 31, 2007 ASSETS: Cash and Cash Equivalents 4,798,919 4,878,905 6,321,168 Net Investment Securities 28,541,332 17,576,663 33,849,611 Net Loans 132,283,593 125,087,715 119,627,069 Premises and Equipment, Net 9,052,880 7,916,038 5,920,041 Other Assets 1,031,538 1,252,895 1,003,803 ------------- ------------- ------------- TOTAL ASSETS $ 175,708,262 $ 156,712,216 $ 166,721,692 ============= ============= ============= LIABILITIES: Deposits 133,082,115 117,507,075 118,580,236 Federal Home Loan Bank Advances 27,369,724 23,075,580 32,183,198 Shares subject to mandatory redemption 3,093,000 3,093,000 3,093,000 Other Liabilities 548,925 732,434 786,019 ------------- ------------- ------------- TOTAL LIABILITIES $ 164,093,764 $ 144,408,089 $ 154,642,453 ============= ============= ============= STOCKHOLDERS’ EQUITY: Common Stock $ 4,159 $ 4,159 $ 4,128 Capital Surplus 6,047,672 6,023,134 5,920,889 Retained Earnings 7,758,127 8,338,326 7,556,773 Unearned Compensation (110,920) (103,714) (132,337) Treasury Stock (1,227,321) (1,227,321) (1,227,321) Accumulated Other Comprehensive Income (857,219) (730,457) (42,893) ------------- ------------- ------------- Total Common Stockholders’ Equity 11,614,498 12,304,127 12,079,239 ------------- ------------- ------------- TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 175,708,262 $ 156,712,216 $ 166,721,692 ============= ============= =============
