Exhibit 99.01
Press Release
Available for Immediate Publication: April 27, 2016
First National Bank of Northern California Reports First Quarter 2016 Earnings of $0.55 Per Diluted Share
Source: FNB Bancorp (CA) (QTCQB: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 (QTCQB: FNBG), parent company of First National Bank of Northern California (the “Bank”), today announced net earnings available to common shareholders for the first quarter of 2016 of $2,567,000 or $0.55 per diluted share, compared to net earnings available to common shareholders of $1,799,000 or $0.39 per diluted share for the first quarter of 2015.
The first quarter of 2016 operating results, when compared to the same period a year ago, were positively affected by the completion of our America California Bank (“ACB”) acquisition that occurred in September, 2015. The ACB acquisition provided an opportunity for the Company to leverage our balance sheet and increase our interest earning assets and interest bearing liabilities, without a significant increase in operating expense. During the first quarter of 2016, our net interest income was $10.7 million, an increase of $483,000 from the fourth quarter of 2015.
“During the first quarter of 2016, the Company was able to grow our loans, net of allowance, by $11.2 million. This growth was achieved through our internal loan origination efforts. Also during the first quarter of 2016 we were able to increase our combined DDA and NOW deposit accounts by $13.2 million. The combination of all these things are what helped us to increase our net interest income during the quarter. Comparing the first quarter of 2016 with the fourth quarter of 2015, we were able to increase noninterest income slightly above fourth quarter levels, but noninterest expenses were significantly reduced due to the payment of non-recurring post acquisition expenses during the fourth quarter of 2015”, stated CEO Tom McGraw.
“During the first quarter of 2016, we were able to reduce our non-accrual loans from levels experienced at year-end. Nonperforming assets were also reduced from levels experienced at year-end. The Bank has worked hard to adhere to prudent underwriting standards as we continue to grow our loan portfolio. Our allowance for loan losses has remained relatively constant during the quarter. The first quarter provision for loan and lease losses was $75,000 and management believes the level of reserves are sufficient to meet expected losses inherent in our loan portfolio at March 31, 2016”, continue Tom McGraw.
CONSOLIDATED BALANCE SHEETS
(Dollars In Thousands)
(Unaudited) As of March 31, | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 37,737 | $ | 30,640 | ||||
Interest-bearing time deposits with financial institutions | 205 | 2,783 | ||||||
Securities available for sale, at fair value | 329,396 | 264,499 | ||||||
Loans, net of deferred loan fees and allowance for loan losses | 733,991 | 575,606 | ||||||
Bank Premises, equipment and leasehold improvements, net | 10,320 | 10,685 | ||||||
Bank owned life insurance | 15,946 | 12,594 | ||||||
Other equity securities | 6,756 | 5,773 | ||||||
Accrued interest receivable | 4,603 | 3,744 | ||||||
Other real estate owned | 1,055 | 770 | ||||||
Goodwill | 4,580 | 1,841 | ||||||
Prepaid expenses | 945 | 1,016 | ||||||
Other assets | 15,444 | 12,402 | ||||||
TOTAL ASSETS | $ | 1,160,978 | $ | 922,353 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Demand, noninterest bearing | $ | 265,947 | $ | 222,400 | ||||
Demand, interest bearing | 113,337 | 90,914 | ||||||
Savings and money market | 526,557 | 384,799 | ||||||
Time | 124,410 | 106,511 | ||||||
Total Deposits | 1,030,251 | 804,624 | ||||||
Note payable | 4,800 | 5,400 | ||||||
Accrued expenses and other liabilities | 17,230 | 12,292 | ||||||
Total Liabilities | 1,052,281 | 822,316 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, no par value: | 75,240 | 67,242 | ||||||
Retained Earnings | 29,666 | 29,944 | ||||||
Accumulated other comprehensive earnings, net of tax | 3,791 | 2,851 | ||||||
Total Stockholders’ Equity | 108,697 | 100,037 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,160,978 | $ | 922,353 |
CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars In Thousands, Except Per Share Amounts)
(Unaudited) Three Months Ended March 31, | Twelve Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2015 | 2014 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Interest and fees on loans | $ | 9,871 | $ | 7,710 | $ | 33,235 | $ | 31,355 | ||||||||
Interest on dividends and securities | 1,685 | 1,344 | 6,008 | 5,423 | ||||||||||||
Interest on deposits with other financial institutions | 1 | 14 | 39 | 81 | ||||||||||||
Total interest income | 11,557 | 9,068 | 39,282 | 36,859 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 783 | 454 | 2,359 | 1,884 | ||||||||||||
Federal Home Loan Bank advances | 8 | 1 | 9 | 17 | ||||||||||||
Interest on note payable | 57 | 59 | 229 | 192 | ||||||||||||
Total interest expense | 848 | 514 | 2,597 | 2,093 | ||||||||||||
NET INTEREST INCOME | 10,709 | 8,554 | 36,685 | 34,766 | ||||||||||||
Provision for (recovery of) loan losses | 75 | 75 | (305 | ) | (1,020 | ) | ||||||||||
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES | 10,634 | 8,479 | 36,990 | 35,786 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges | 621 | 611 | 2,501 | 2,548 | ||||||||||||
Gain on sale of premises | — | — | — | 2,085 | ||||||||||||
Net gain on sale of available-for-sale securities | 184 | 69 | 339 | 138 | ||||||||||||
Earnings on bank owned life insurance | 100 | 84 | 364 | 359 | ||||||||||||
Break-up fee from terminated definitive agreement | — | — | — | 500 | ||||||||||||
Other income | 237 | 314 | 1,292 | 959 | ||||||||||||
Total Noninterest Income | 1,142 | 1,078 | 4,496 | 6,589 | ||||||||||||
NONINTEREST EXPENSES | ||||||||||||||||
Salaries and employee benefits | 4,938 | 4,302 | 18,523 | 16,731 | ||||||||||||
Occupancy expense | 631 | 668 | 2,517 | 2,773 | ||||||||||||
Equipment expense | 434 | 405 | 1,926 | 1,624 | ||||||||||||
Professional fees | 387 | 387 | 1,471 | 1,845 | ||||||||||||
FDIC assessment | 150 | 150 | 600 | 655 | ||||||||||||
Telephone, postage, supplies | 295 | 289 | 1,074 | 1,250 | ||||||||||||
Advertising expense | 117 | 99 | 500 | 414 | ||||||||||||
Data processing expense | 192 | 134 | 1,076 | 572 | ||||||||||||
Low income housing expense | 71 | 71 | 283 | 439 | ||||||||||||
Surety insurance | 87 | 88 | 381 | 278 | ||||||||||||
Director fees | 72 | 72 | 288 | 252 | ||||||||||||
Gain on sale of other real estate owned | — | — | — | (220 | ) | |||||||||||
Other real estate owned (income) expense | (10 | ) | — | 4 | 87 | |||||||||||
Other expenses | 423 | 278 | 1,282 | 1,168 | ||||||||||||
Total Noninterest Expense | 7,787 | 6,943 | 29,925 | 27,868 | ||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 3,989 | 2,614 | 11,561 | 14,507 | ||||||||||||
Provision for income taxes | 1,422 | 815 | 3,364 | 5,098 | ||||||||||||
NET EARNINGS | 2,567 | 1,799 | 8,197 | 9,409 | ||||||||||||
Dividends and discount accretion on preferred stock | — | — | — | 170 | ||||||||||||
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS | $ | 2,567 | $ | 1,799 | $ | 8,197 | $ | 9,239 |
Per Share Data: | ||||||||||||||||
Basic earnings per share available to common stockholders | $ | 0.56 | $ | 0.40 | $ | 1.82 | $ | 2.08 | ||||||||
Diluted earnings per share available to common stockholders | $ | 0.55 | $ | 0.39 | $ | 1.77 | $ | 2.02 | ||||||||
Cash dividends declared | $ | 683 | $ | 555 | $ | 2,447 | $ | 1,780 | ||||||||
Average shares outstanding | 4,550 | 4,487 | 4,516 | 4,444 | ||||||||||||
Average diluted shares outstanding | 4,687 | 4,623 | 4,644 | 4,585 |
FINANCIAL HIGHLIGHTS
(Dollars In Thousands)
(Unaudited) Three Months Ended March 31, | (Extracted from audited annual financial statements) Twelve Months Ended December 31, | |||||||||||||||
2016 | 2015 | 2015 | 2014 | |||||||||||||
AVERAGE BALANCES: | ||||||||||||||||
Total Assets | $ | 1,146,493 | $ | 919,313 | $ | 1,010,435 | $ | 901,533 | ||||||||
Total Loans | 743,282 | 587,903 | 629,814 | 572,070 | ||||||||||||
Total Earning Assets | 1,072,790 | 848,925 | 923,700 | 840,360 | ||||||||||||
Total Deposits | 1,012,268 | 801,718 | 890,369 | 785,481 | ||||||||||||
Total Stockholder’s Equity | 106,219 | 98,140 | 100,621 | 90,938 | ||||||||||||
SELECTED PERFORMANCE DATA | ||||||||||||||||
Annualized return on average assets | 0.90 | % | 0.78 | % | 0.81 | % | 1.02 | % | ||||||||
Annualized return on average equity | 9.67 | % | 7.33 | % | 8.15 | % | 10.16 | % | ||||||||
Net interest margin (taxable equivalent) | 4.14 | % | 4.17 | % | 4.06 | % | 4.21 | % | ||||||||
Average loans as a percent of average deposits | 73.43 | % | 73.33 | % | 70.70 | % | 72.83 | % | ||||||||
Average total stockholders’ equity as a% of average total assets | 9.26 | % | 10.68 | % | 9.96 | % | 10.09 | % | ||||||||
Annualized common dividend payout ratio | 26.61 | % | 30.85 | % | 29.85 | % | 19.27 | % |
NON-PERFORMING ASSETS | (Extracted from | |||||||||||||||||||
(Dollars In Thousands) | audited annual | |||||||||||||||||||
(Unaudited) | financial statements) | (Unaudited) As of | (Unaudited) | (Unaudited) | ||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
Non-accrual loans | 6,882 | 7,915 | 5,192 | 6,020 | 5,923 | |||||||||||||||
Other real estate owned | 1,055 | 1,026 | 838 | 806 | 770 | |||||||||||||||
Total non-performing assets | 7,937 | 8,941 | 6,030 | 6,826 | 6,693 | |||||||||||||||
Loan loss reserve | $ | 9,943 | $ | 9,970 | $ | 9,940 | $ | 9,836 | $ | 9,744 | ||||||||||
Non-accrual loans/Gross loans | 0.92 | % | 1.08 | % | 0.73 | % | 1.03 | % | 1.01 | % | ||||||||||
Loan loss reserves/Gross loans | 1.33 | % | 1.36 | % | 1.40 | % | 1.69 | % | 1.66 | % |
CONSOLIDATED BALANCE SHEETS | (Extracted from | |||||||||||||||||||
(Dollars In Thousands) | audited annual | |||||||||||||||||||
(Unaudited) | financial statements) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
March 31, | December 31, | As of September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 37,737 | $ | 12,314 | $ | 40,282 | $ | 91,662 | $ | 30,640 | ||||||||||
Interest-bearing time deposits with financial institutions | 205 | 205 | 1,246 | 2,138 | 2,783 | |||||||||||||||
Securities available for sale, at fair value | 329,396 | 329,207 | 315,560 | 295,171 | 264,499 | |||||||||||||||
Loans, net of deferred loan fees and allowance for loan losses | 733,991 | 722,747 | 696,888 | 571,665 | 575,606 | |||||||||||||||
Bank Premises, equipment and leasehold improvements, net | 10,320 | 10,202 | 10,326 | 10,527 | 10,685 | |||||||||||||||
Bank owned life insurance | 15,946 | 15,845 | 15,742 | 12,681 | 12,594 | |||||||||||||||
Other equity securities | 6,756 | 6,748 | 6,748 | 6,069 | 5,773 | |||||||||||||||
Accrued interest receivable | 4,603 | 4,511 | 4,326 | 3,909 | 3,744 | |||||||||||||||
Other real estate owned | 1,055 | 1,026 | 838 | 806 | 770 | |||||||||||||||
Goodwill | 4,580 | 4,580 | 4,580 | 1,841 | 1,841 | |||||||||||||||
Prepaid expenses | 945 | 997 | 877 | 922 | 1,016 | |||||||||||||||
Other assets | 15,444 | 15,967 | 14,044 | 12,437 | 12,402 | |||||||||||||||
TOTAL ASSETS | $ | 1,160,978 | $ | 1,124,349 | $ | 1,111,457 | $ | 1,009,828 | $ | 922,353 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand, noninterest bearing | $ | 265,947 | $ | 263,822 | $ | 262,206 | $ | 249,420 | $ | 222,400 | ||||||||||
Demand, interest bearing | 113,337 | 102,304 | 84,682 | 101,693 | 90,914 | |||||||||||||||
Savings and money market | 526,557 | 491,633 | 512,534 | 437,092 | 384,799 | |||||||||||||||
Time | 124,410 | 125,430 | 129,943 | 104,935 | 106,511 | |||||||||||||||
Total Deposits | 1,030,251 | 983,189 | 989,365 | 893,140 | 804,624 | |||||||||||||||
Federal Home Loan Bank advances | — | 17,000 | — | — | — | |||||||||||||||
Note payable | 4,800 | 4,950 | 5,100 | 5,250 | 5,400 | |||||||||||||||
Accrued expenses and other liabilities | 17,230 | 15,048 | 13,302 | 11,001 | 12,292 | |||||||||||||||
Total Liabilities | 1,052,281 | 1,020,187 | 1,007,767 | 909,391 | 822,316 | |||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Common stock, no par value: | 75,240 | 74,805 | 67,852 | 67,597 | 67,242 | |||||||||||||||
Retained Earnings | 29,666 | 27,816 | 33,046 | 31,452 | 29,944 | |||||||||||||||
Accumulated other comprehensive earnings, net of tax | 3,791 | 1,541 | 2,792 | 1,388 | 2,851 | |||||||||||||||
Total Stockholders’ Equity | 108,697 | 104,162 | 103,690 | 100,437 | 100,037 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,160,978 | $ | 1,124,349 | $ | 1,111,457 | $ | 1,009,828 | $ | 922,353 |
CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | |||||||||||||||||||
(Dollars In Thousands, Except Per Share Amounts) | Three Months Ended | |||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans | $ | 9,871 | $ | 9,361 | $ | 8,309 | $ | 7,855 | $ | 7,710 | ||||||||||
Interest on dividends and securities | 1,685 | 1,657 | 1,575 | 1,432 | 1,344 | |||||||||||||||
Interest on deposits with other financial institutions | 1 | 3 | 9 | 13 | 14 | |||||||||||||||
Total interest income | 11,557 | 11,021 | 9,893 | 9,300 | 9,068 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 783 | 734 | 635 | 538 | 454 | |||||||||||||||
Federal Home Loan Bank advances | 8 | 7 | 1 | — | 1 | |||||||||||||||
Interest on note payable | 57 | 56 | 57 | 57 | 59 | |||||||||||||||
Total interest expense | 848 | 797 | 693 | 595 | 514 | |||||||||||||||
NET INTEREST INCOME | 10,709 | 10,224 | 9,200 | 8,705 | 8,554 | |||||||||||||||
Provision for (recovery of) loan losses | 75 | (530 | ) | 75 | 75 | 75 | ||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR (RECOVERY OF) LOAN LOSSES | 10,634 | 10,754 | 9,125 | 8,630 | 8,479 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Service charges | 621 | 647 | 618 | 627 | 611 | |||||||||||||||
Net gain on sale of available-for-sale securities | 184 | 89 | 29 | 152 | 69 | |||||||||||||||
Earnings on bank owned life insurance | 100 | 103 | 90 | 87 | 84 | |||||||||||||||
Other income | 237 | 290 | 287 | 401 | 314 | |||||||||||||||
Total Noninterest Income | 1,142 | 1,129 | 1,024 | 1,267 | 1,078 | |||||||||||||||
NONINTEREST EXPENSES | ||||||||||||||||||||
Salaries and employee benefits | 4,938 | 6,010 | 4,100 | 4,111 | 4,302 | |||||||||||||||
Occupancy expense | 631 | 611 | 592 | 646 | 668 | |||||||||||||||
Equipment expense | 434 | 393 | 718 | 410 | 405 | |||||||||||||||
Professional fees | 387 | 396 | 334 | 354 | 387 | |||||||||||||||
FDIC assessment | 150 | 150 | 150 | 150 | 150 | |||||||||||||||
Telephone, postage, supplies | 295 | 292 | 237 | 256 | 289 | |||||||||||||||
Advertising expense | 117 | 119 | 112 | 170 | 99 | |||||||||||||||
Data processing expense | 192 | 136 | 659 | 147 | 134 | |||||||||||||||
Low income housing expense | 71 | 71 | 70 | 71 | 71 | |||||||||||||||
Surety insurance | 87 | 83 | 122 | 88 | 88 | |||||||||||||||
Director fees | 72 | 72 | 72 | 72 | 72 | |||||||||||||||
Other real estate owned (income) expense | (10 | ) | 10 | — | (6 | ) | — | |||||||||||||
Other expenses | 423 | 371 | 313 | 320 | 278 | |||||||||||||||
Total Noninterest Expense | 7,787 | 8,714 | 7,479 | 6,789 | 6,943 | |||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 3,989 | 3,169 | 2,670 | 3,108 | 2,614 | |||||||||||||||
Provision for income taxes | 1,422 | 1,081 | 431 | 1,037 | 815 | |||||||||||||||
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS | $ | 2,567 | $ | 2,088 | $ | 2,239 | $ | 2,071 | $ | 1,799 |
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Basic earnings per share available to common stockholders | $ | 0.56 | $ | 0.47 | $ | 0.49 | $ | 0.46 | $ | 0.40 | ||||||||||
Diluted earnings per share available to common stockholders | $ | 0.55 | $ | 0.45 | $ | 0.48 | $ | 0.45 | $ | 0.39 | ||||||||||
Cash dividends declared | $ | 683 | $ | 648 | $ | 646 | $ | 559 | $ | 555 | ||||||||||
Average shares outstanding | 4,550 | 4,487 | 4,524 | 4,511 | 4,487 | |||||||||||||||
Average diluted shares outstanding | 4,687 | 4,623 | 4,643 | 4,636 | 4,623 | |||||||||||||||
SELECTED PERFORMANCE DATA | ||||||||||||||||||||
Annualized return on average assets | 0.90 | % | 0.91 | % | 0.86 | % | 0.87 | % | 0.78 | % | ||||||||||
Annualized return on average equity | 9.67 | % | 8.51 | % | 8.88 | % | 8.31 | % | 7.33 | % | ||||||||||
Net interest margin (taxable equivalent) | 4.14 | % | 4.17 | % | 4.00 | % | 4.14 | % | 4.17 | % | ||||||||||
Average loans as a percent of average deposits | 73.43 | % | 71.11 | % | 67.72 | % | 70.63 | % | 73.33 | % | ||||||||||
Average total stockholders’ equity as a % of average total assets | 9.26 | % | 10.68 | % | 9.69 | % | 10.46 | % | 10.68 | % | ||||||||||
Annualized common dividend payout ratio | 26.61 | % | 31.03 | % | 28.85 | % | 26.99 | % | 30.85 | % |
LOANS | (Extracted from | |||||||||||||||||||
(Dollars In Thousands) | audited annual | |||||||||||||||||||
(Unaudited) | financial statements) | (Unaudited) | (Unaudited) | (Unaudited) | ||||||||||||||||
March 31, | December 31, | As of September 30, | June 30, | March 31, | ||||||||||||||||
2016 | 2015 | 2015 | 2015 | 2015 | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||
Construction | $ | 42,465 | $ | 44,816 | $ | 35,868 | $ | 32,648 | $ | 34,237 | ||||||||||
Commercial | 411,999 | 399,993 | 394,090 | 330,303 | 322,414 | |||||||||||||||
Multi family | 59,993 | 63,597 | 63,928 | 51,613 | 53,703 | |||||||||||||||
Residential | 173,437 | 171,964 | 172,280 | 127,900 | 128,105 | |||||||||||||||
Commercial & industrial loans | 55,694 | 52,033 | 39,843 | 37,745 | 45,589 | |||||||||||||||
Consumer loans | 1,675 | 1,574 | 1,497 | 1,696 | 1,697 | |||||||||||||||
Gross Loans | 745,263 | 733,977 | 707,506 | 581,905 | 585,745 | |||||||||||||||
Net deferred loan fees | (1,329 | ) | (1,260 | ) | (678 | ) | (404 | ) | (395 | ) | ||||||||||
Allowance for loan losses | (9,943 | ) | (9,970 | ) | (9,940 | ) | (9,836 | ) | (9,744 | ) | ||||||||||
NET LOANS | $ | 733,991 | $ | 722,747 | $ | 696,888 | $ | 571,665 | $ | 575,606 |
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.