Exhibit 99.61
Press Release
Available for Immediate Publication: July 25, 2008
First National Bank of Northern California Reports Second Quarter 2008 Earnings of $0.37 Per Diluted Share
Source: FNB Bancorp (CA) (Bulletin Board: FNBG)
South San Francisco, California
Website:www.fnbnorcal.com
Contacts:
Tom McGraw, Chief Executive Officer (650) 875-4864
Dave Curtis, Chief Financial Officer (650) 875-4862
FNB Bancorp (Bulletin Board: FNBG), parent company of First National Bank of Northern California, today announced operating earnings for the second quarter of 2008 of $1,090,000 or $0.37 per diluted share, compared to $1,727,000 or $0.57 per diluted share for the second quarter of 2007. Total consolidated assets as of June 30, 2008 were $659,150,000 compared to $619,439,000 as of June 30, 2007.
Financial Highlights: Second quarter, 2008
Consolidated Statement of Earnings
(in ‘000s except earnings per share amounts)
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| Three months ended |
| Three months ended |
| Six months ended |
| Six months ended |
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| June 30, 2008 |
| June 30, 2007 |
| June 30, 2008 |
| June 30, 2007 |
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Interest income |
| $ | 9,657 |
| $ | 10,654 |
| $ | 20,028 |
| $ | 20,558 |
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Interest expense |
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| 2,841 |
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| 3,429 |
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| 6,163 |
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| 6,515 |
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Net Interest Income |
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| 6,816 |
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| 7,225 |
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| 13,865 |
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| 14,043 |
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Provision for loan losses |
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| (300 | ) |
| (180 | ) |
| (1,290 | ) |
| (330 | ) |
Non-interest income |
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| 1,137 |
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| 1,142 |
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| 2,398 |
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| 2,146 |
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Non-interest expense |
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| 6,286 |
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| 5,808 |
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| 12,463 |
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| 11,566 |
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Income before income taxes |
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| 1,367 |
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| 2,379 |
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| 2,510 |
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| 4,293 |
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Provision for income taxes |
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| (277 | ) |
| (652 | ) |
| (533 | ) |
| (1,107 | ) |
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Net Earnings |
| $ | 1,090 |
| $ | 1,727 |
| $ | 1,977 |
| $ | 3,186 |
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Basic earnings per share |
| $ | 0.37 |
| $ | 0.58 |
| $ | 0.67 |
| $ | 1.06 |
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Diluted earnings per share |
| $ | 0.37 |
| $ | 0.57 |
| $ | 0.66 |
| $ | 1.05 |
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Average assets |
| $ | 651,661 |
| $ | 621,665 |
| $ | 652,069 |
| $ | 608,917 |
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Average equity |
| $ | 67,754 |
| $ | 63,685 |
| $ | 67,750 |
| $ | 63,141 |
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Return on average assets |
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| 0.67 | % |
| 1.11 | % |
| 0.61 | % |
| 1.05 | % |
Return on average equity |
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| 6.44 | % |
| 10.85 | % |
| 5.84 | % |
| 10.09 | % |
Efficiency ratio |
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| 79 | % |
| 69 | % |
| 77 | % |
| 71 | % |
Net interest margin |
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| 4.71 | % |
| 5.24 | % |
| 4.79 | % |
| 5.24 | % |
Average shares outstanding |
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| 2,966 |
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| 2,994 |
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| 2,967 |
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| 2,999 |
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Average diluted shares outstanding |
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| 2,977 |
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| 3,029 |
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| 2,977 |
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| 3,043 |
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Consolidated Balance Sheets
(In ‘000s)
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| As of |
| Year ended |
| As of |
| Year ended |
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| June 30, 2008 |
| December 31, 2007 |
| June 30, 2007 |
| December 31, 2006 |
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Assets |
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Cash and cash equivalents |
| $ | 18,766 |
| $ | 15,750 |
| $ | 24,317 |
| $ | 27,022 |
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Securities available for sale |
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| 103,067 |
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| 94,432 |
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| 87,371 |
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| 94,945 |
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Loans, net |
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| 488,709 |
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| 489,574 |
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| 463,523 |
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| 419,437 |
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Premises, equipment and leasehold improvements |
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| 13,677 |
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| 13,686 |
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| 13,763 |
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| 13,476 |
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Other real estate owned |
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| 3,955 |
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| 440 |
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| — |
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| — |
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Goodwill |
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| 1,841 |
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| 1,841 |
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| 1,841 |
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| 1,841 |
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Other assets |
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| 29,135 |
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| 28,742 |
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| 28,624 |
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| 24,549 |
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Total assets |
| $ | 659,150 |
| $ | 644,465 |
| $ | 619,439 |
| $ | 581,270 |
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| �� |
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Liabilities and stockholders’ equity: |
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Deposits: |
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Demand and NOW |
| $ | 180,573 |
| $ | 181,638 |
| $ | 185,031 |
| $ | 184,262 |
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Savings and money market |
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| 193,071 |
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| 181,276 |
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| 189,700 |
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| 162,915 |
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Time |
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| 133,832 |
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| 136,341 |
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| 142,765 |
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| 134,390 |
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Total deposits |
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| 507,476 |
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| 499,255 |
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| 517,496 |
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| 481,567 |
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Federal Home Loan Bank advances |
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| 70,000 |
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| 66,000 |
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| 30,000 |
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| 30,000 |
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Federal funds purchased |
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| 7,330 |
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| 5,595 |
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| — |
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| — |
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Accrued expenses and other liabilities |
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| 7,423 |
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| 7,070 |
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| 8,334 |
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| 7,640 |
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Total liabilities |
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| 592,229 |
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| 577,920 |
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| 555,830 |
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| 519,207 |
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Stockholders’ equity |
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| 66,921 |
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| 66,545 |
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| 63,609 |
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| 62,063 |
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Total liabilities and stockholders’ equity |
| $ | 659,150 |
| $ | 644,465 |
| $ | 619,439 |
| $ | 581,270 |
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Other Financial Information: |
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Allowance for Loan Losses |
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| 5,800 |
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| 5,638 |
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| 5,310 |
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| 5,002 |
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Nonperforming Assets |
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| 16,567 |
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| 11,905 |
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| 2,344 |
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| 2,628 |
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Total Gross Loans |
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| 494,509 |
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| 495,212 |
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| 468,833 |
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| 424,439 |
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“Our second quarter, 2008, financial results reflect the continued strength of our core earning assets and our commitment to maintain the allowance for loan losses at a prudent level.” stated Tom McGraw, Chief Executive Officer. During the second quarter of 2008, management recorded a provision for loan losses of $300,000 compared to $180,000 for the same period in 2007. For all of 2008, the provision for loan losses was $1,290,000, an increase of $960,000 when compared to 2007 levels. During 2008, our assets have grown by $14,685,000 or approximately 2% since December 31, 2007. Total deposits have increased by $8,221,000 or approximately 2% during 2008.
“The increase in our deposit levels during 2008 reflects our ability to continue to attract and maintain new deposit accounts at realistic interest rates without placing an inappropriate reliance on outside borrowings or brokered deposits. The current economic downturn, problems in the mortgage and credit markets, rumors regarding the health of Fannie Mae and Freddie Mac coupled with increases in food and energy costs are constant reminders that we live in uncertain times. Management and the board of directors are committed to providing our customers a safe, friendly and convenient banking experience. We will continue to provide loans and credit to our customers in our local communities and develop deposit products and services that our customers need. Our latest not-for-profit deposit products are a good example of our innovative approach to banking.” added Tom McGraw. During 2008, the Company has had to grapple with a declining interest rate environment.
“Between June 30, 2007 and 2008, the Federal Open Market Committee of the Federal Reserve Bank has driven down the intended federal funds rate from 5.25% to 2.00%. As a result, our taxable equivalent net interest margin has decreased to 4.79% during the first six months of 2008 from 5.24% for the same period in 2007. In addition, we have bolstered our allowance for loan losses to 1.17% of our gross loan portfolio as of June 30, 2008, compared to 1.14% as of December 31, 2007. We have not invested in sub-prime mortgage investments, and management believes the quality of our earning assets is good. We have experienced loan charge-offs during 2008 that are higher than we have become accustomed to, but these charge-offs were related to problems that were customer specific. As of June 30, 2008, the Bank owned two single family residences and one parcel of land that were acquired through foreclosure. We expect to be able to market and sell these properties in an orderly fashion at market rates within a reasonable period of time.” stated Tom McGraw.
The Bank is well capitalized, with a seasoned management team and board of directors that has worked through difficult economic times before. For over forty-five years First National Bank of Northern California has been dedicated to providing our customers, our communities, and our shareholders the financial products and services they need.
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.