Exhibit 99.01
Press Release
Available for Immediate Publication: October 24, 2016
First National Bank of Northern California Reports Third Quarter 2016 Earnings of $0.52 Per Diluted Share
Source: FNB Bancorp (CA) (OTCQB: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 (OTCQB: FNBG), parent company of First National Bank of Northern California (the “Bank”), today announced net earnings available to common stockholders for the third quarter of 2016 of $2,444,000 or $0.52 per diluted share, compared to net earnings available to common stockholders of $2,239,000 or $0.48 per diluted share for the third quarter of 2015.
The third quarter of 2016 operating results, when compared to the same period a year ago, were positively affected by the completion of the America California Bank (“ACB”) acquisition that occurred in September, 2015. The ACB acquisition provided an opportunity for the Company to increase our interest earning assets and interest bearing liabilities in a cost effective manner. During the third quarter of 2016, our net interest income was $10.3 million, a decrease of $133,000 from the second quarter of 2016. This decrease was caused by a drop in yield that was partially offset by an increase in average interest earning assets.
“During the third quarter of 2016, the Company was able to grow our total assets by $29 million. This growth included an increase in gross loans of $16 million and an increase in available for sale investment securities of $16 million. The Company also experienced a $16 million increase in our demand deposit balances. Overall, the deposit portfolio declined by $4 million, due primarily to declines in interest rate sensitive money market balances. The bank was able to continue to grow our interest earning assets by obtaining $30 million in additional Federal Home Loan Bank advances from existing credit facilities during the quarter. The current low rate environment has put stress on our net interest margin, but we have found solid opportunities to expand our interest earning assets. Our net interest margin declined during the third quarter of 2016 by 10 basis points, due primarily to higher yielding loan payoffs that were partially reinvested into new loans at lower yields. We remain “well capitalized” by regulatory definition and our earnings are sufficient to support our growth and pay out quarterly cash dividends. We take pride in our accomplishments, and we make every effort possible to listen to our customers and provide them with the products they want delivered with customer service levels that exceed their expectations”, stated CEO Tom McGraw.
“Our total non-accrual loan balances decreased by $1.3 million during the third quarter. The decrease in non-accrual loans was not related to any changes in systemic problems identified within any segments or loan types within our loan portfolio but was isolated to improved individual customer relationships that were adequately collateralized. We continue to utilize a conservative underwriting approach to loan origination and we endeavor to cultivate new and existing deposit and loan relationships. There was no third quarter provision for loan losses and our allowance for loan loss was considered sufficient to absorb potential losses within our loan portfolio as of September 30, 2016”, continued Tom McGraw.
CONSOLIDATED BALANCE SHEETS | ||||||||
(Dollars in thousands) | ||||||||
(Unaudited) As of September 30, | ||||||||
2016 | 2015 | |||||||
ASSETS | ||||||||
Cash and due from banks | $ | 17,342 | $ | 40,282 | ||||
Interest-bearing time deposits with financial institutions | 204 | 1,246 | ||||||
Securities available for sale, at fair value | 358,877 | 315,560 | ||||||
Other equity securities | 7,206 | 6,748 | ||||||
Loans, net of deferred loan fees and allowance for loan losses | 741,407 | 696,888 | ||||||
Bank premises, equipment and leasehold improvements, net | 9,918 | 10,326 | ||||||
Bank owned life insurance | 16,145 | 15,742 | ||||||
Accrued interest receivable | 4,544 | 4,326 | ||||||
Other real estate owned | 1,346 | 838 | ||||||
Goodwill | 4,580 | 4,580 | ||||||
Prepaid expenses | 670 | 877 | ||||||
Other assets | 15,309 | 14,044 | ||||||
TOTAL ASSETS | $ | 1,177,548 | $ | 1,111,457 | ||||
LIABILITIES | ||||||||
Deposits: | ||||||||
Demand, noninterest bearing | $ | 285,767 | $ | 262,206 | ||||
Demand, interest bearing | 110,147 | 84,682 | ||||||
Savings and money market | 491,047 | 512,534 | ||||||
Time | 116,496 | 129,943 | ||||||
Total Deposits | 1,003,457 | 989,365 | ||||||
Federal Home Loan Bank advances | 37,000 | — | ||||||
Note payable | 4,500 | 5,100 | ||||||
Accrued expenses and other liabilities | 18,847 | 13,302 | ||||||
Total Liabilities | 1,063,804 | 1,007,767 | ||||||
STOCKHOLDERS’ EQUITY | ||||||||
Common stock, no par value: | 76,065 | 67,852 | ||||||
Retained Earnings | 33,123 | 33,046 | ||||||
Accumulated other comprehensive earnings, net of tax | 4,556 | 2,792 | ||||||
Total Stockholders’ Equity | 113,744 | 103,690 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,177,548 | $ | 1,111,457 |
CONSOLIDATED STATEMENTS OF EARNINGS | (Unaudited) | (Unaudited) | ||||||||||||||
(Amounts in thousands, except per share amounts) | Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||
INTEREST INCOME | ||||||||||||||||
Interest and fees on loans | $ | 9,301 | $ | 8,309 | $ | 28,735 | $ | 23,874 | ||||||||
Interest on dividends and securities | 1,815 | 1,575 | 5,231 | 4,351 | ||||||||||||
Interest on deposits with other financial institutions | 1 | 9 | 3 | 36 | ||||||||||||
Total interest income | 11,117 | 9,893 | 33,969 | 28,261 | ||||||||||||
INTEREST EXPENSE | ||||||||||||||||
Deposits | 657 | 635 | 2,149 | 1,625 | ||||||||||||
Federal Home Loan Bank advances | 10 | 1 | 19 | 2 | ||||||||||||
Interest on note payable | 54 | 57 | 167 | 173 | ||||||||||||
Total interest expense | 721 | 693 | 2,335 | 1,800 | ||||||||||||
NET INTEREST INCOME | 10,396 | 9,200 | 31,634 | 26,461 | ||||||||||||
Provision for loan losses | — | 75 | 150 | 225 | ||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,396 | 9,125 | 31,484 | 26,236 | ||||||||||||
NONINTEREST INCOME | ||||||||||||||||
Service charges | 623 | 618 | 1,862 | 1,854 | ||||||||||||
Net gain on sale of available-for-sale securities | 140 | 29 | 381 | 250 | ||||||||||||
Earnings on bank owned life insurance | 94 | 90 | 299 | 261 | ||||||||||||
Other income | 250 | 287 | 764 | 1,002 | ||||||||||||
Total Noninterest Income | 1,107 | 1,024 | 3,306 | 3,367 | ||||||||||||
NONINTEREST EXPENSES | ||||||||||||||||
Salaries and employee benefits | 4,821 | 4,100 | 14,635 | 12,513 | ||||||||||||
Occupancy expense | 645 | 592 | 1,893 | 1,906 | ||||||||||||
Equipment expense | 445 | 718 | 1,317 | 1,533 | ||||||||||||
Professional fees | 298 | 334 | 979 | 1,075 | ||||||||||||
FDIC assessment | 150 | 150 | 450 | 450 | ||||||||||||
Telephone, postage, supplies | 300 | 237 | 901 | 782 | ||||||||||||
Advertising expense | 104 | 112 | 404 | 381 | ||||||||||||
Data processing expense | 147 | 659 | 479 | 940 | ||||||||||||
Low income housing expense | 71 | 70 | 213 | 212 | ||||||||||||
Surety insurance | 88 | 122 | 262 | 298 | ||||||||||||
Director fees | 72 | 72 | 216 | 216 | ||||||||||||
Other real estate owned expense (recovery), net | — | — | (10 | ) | (6 | ) | ||||||||||
Other expenses | 372 | 313 | 1,210 | 911 | ||||||||||||
Total Noninterest Expense | 7,513 | 7,479 | 22,949 | 21,211 | ||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 3,990 | 2,670 | 11,841 | 8,392 | ||||||||||||
Provision for income taxes | 1,546 | 431 | 4,382 | 2,283 | ||||||||||||
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS | $ | 2,444 | $ | 2,239 | $ | 7,459 | $ | 6,109 | ||||||||
Per Share Data: | ||||||||||||||||
Basic earnings per share available to common stockholders | $ | 0.53 | $ | 0.49 | $ | 1.63 | $ | 1.36 | ||||||||
Diluted earnings per share available to common stockholders | $ | 0.52 | $ | 0.48 | $ | 1.59 | $ | 1.32 | ||||||||
Cash dividends declared | $ | 738 | $ | 646 | $ | 2,152 | $ | 1,760 | ||||||||
Average shares outstanding | 4,582 | 4,524 | 4,568 | 4,508 | ||||||||||||
Average diluted shares outstanding | 4,687 | 4,643 | 4,686 | 4,635 | ||||||||||||
Shares oustanding as of the end of period | 4,616 | 4,532 | 4,616 | 4,532 |
FINANCIAL HIGHLIGHTS | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2016 | 2015 | 2016 | 2015 | |||||||||||||||||
AVERAGE BALANCES: | ||||||||||||||||||||
Total Assets | $ | 1,159,129 | $ | 1,040,049 | $ | 1,153,889 | $ | 971,294 | ||||||||||||
Total Loans | 740,218 | 624,123 | 741,180 | 601,098 | ||||||||||||||||
Total Earning Assets | 1,092,060 | 933,292 | 1,081,448 | 884,986 | ||||||||||||||||
Total Deposits | 1,014,541 | 921,615 | 1,017,172 | 853,753 | ||||||||||||||||
Total Stockholder’s Equity | 112,448 | 100,801 | 109,211 | 99,556 | ||||||||||||||||
SELECTED PERFORMANCE DATA | ||||||||||||||||||||
Annualized return on average assets | 0.84 | % | 0.86 | % | 1.29 | % | 1.26 | % | ||||||||||||
Annualized return on average equity | 8.69 | % | 8.88 | % | 13.66 | % | 12.27 | % | ||||||||||||
Net interest margin (taxable equivalent) | 3.88 | % | 4.00 | % | 4.00 | % | 4.09 | % | ||||||||||||
Average loans as a percent of average deposits | 72.96 | % | 67.72 | % | 72.87 | % | 70.41 | % | ||||||||||||
Average total stockholders’ equity as a % of average total assets | 9.70 | % | 9.69 | % | 9.46 | % | 10.25 | % | ||||||||||||
Annualized common dividend payout ratio | 30.20 | % | 28.85 | % | 28.85 | % | 28.81 | % | ||||||||||||
NON-PERFORMING ASSETS | (Extracted from | |||||||||||||||||||
(Dollars In Thousands) | audited annual | (Unaudited) | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | financial statements) | As of | ||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Non-accrual loans | $ | 6,903 | $ | 8,182 | $ | 6,882 | $ | 7,915 | $ | 5,192 | ||||||||||
Other real estate owned | 1,346 | 1,247 | 1,055 | 1,026 | 838 | |||||||||||||||
Total non-performing assets | 8,249 | 9,429 | 7,937 | 8,941 | 6,030 | |||||||||||||||
Loan loss reserve | $ | 10,092 | $ | 10,038 | $ | 9,943 | $ | 9,970 | $ | 9,940 | ||||||||||
Non-accrual loans/Gross loans | 0.92 | % | 1.11 | % | 0.92 | % | 1.08 | % | 0.73 | % | ||||||||||
Loan loss reserves/Gross loans | 1.34 | % | 1.36 | % | 1.33 | % | 1.36 | % | 1.40 | % |
CONSOLIDATED BALANCE SHEETS | (Extracted from | |||||||||||||||||||
(Dollars in thousands) | audited annual | (Unaudited) | ||||||||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | financial statements) | As of | ||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
ASSETS | ||||||||||||||||||||
Cash and due from banks | $ | 17,342 | $ | 20,564 | $ | 37,737 | $ | 12,314 | $ | 40,282 | ||||||||||
Interest-bearing time deposits with financial institutions | 204 | 205 | 205 | 205 | 1,246 | |||||||||||||||
Securities available for sale, at fair value | 358,877 | 342,420 | 329,396 | 329,207 | 315,560 | |||||||||||||||
Other equity securities | 7,206 | 7,206 | 6,756 | 6,748 | 6,748 | |||||||||||||||
Loans, net of deferred loan fees and allowance for loan losses | 741,407 | 725,471 | 733,991 | 722,747 | 696,888 | |||||||||||||||
Bank premises, equipment and leasehold improvements, net | 9,918 | 10,114 | 10,320 | 10,202 | 10,326 | |||||||||||||||
Bank owned life insurance | 16,145 | 16,050 | 15,946 | 15,845 | 15,742 | |||||||||||||||
Accrued interest receivable | 4,544 | 4,547 | 4,603 | 4,511 | 4,326 | |||||||||||||||
Other real estate owned | 1,346 | 1,247 | 1,055 | 1,026 | 838 | |||||||||||||||
Goodwill | 4,580 | 4,580 | 4,580 | 4,580 | 4,580 | |||||||||||||||
Prepaid expenses | 670 | 783 | 945 | 997 | 877 | |||||||||||||||
Other assets | 15,309 | 15,393 | 15,444 | 15,967 | 14,044 | |||||||||||||||
TOTAL ASSETS | $ | 1,177,548 | $ | 1,148,580 | $ | 1,160,978 | $ | 1,124,349 | $ | 1,111,457 | ||||||||||
LIABILITIES | ||||||||||||||||||||
Deposits: | ||||||||||||||||||||
Demand, noninterest bearing | $ | 285,767 | $ | 267,593 | $ | 265,947 | $ | 263,822 | $ | 262,206 | ||||||||||
Demand, interest bearing | 110,147 | 112,591 | 113,337 | 102,304 | 84,682 | |||||||||||||||
Savings and money market | 491,047 | 508,605 | 526,557 | 491,633 | 512,534 | |||||||||||||||
Time | 116,496 | 118,700 | 124,410 | 125,430 | 129,943 | |||||||||||||||
Total Deposits | 1,003,457 | 1,007,489 | 1,030,251 | 983,189 | 989,365 | |||||||||||||||
Federal Home Loan Bank advances | 37,000 | 7,000 | — | 17,000 | — | |||||||||||||||
Note payable | 4,500 | 4,650 | 4,800 | 4,950 | 5,100 | |||||||||||||||
Accrued expenses and other liabilities | 18,847 | 17,026 | 17,230 | 15,048 | 13,302 | |||||||||||||||
Total Liabilities | 1,063,804 | 1,036,165 | 1,052,281 | 1,020,187 | 1,007,767 | |||||||||||||||
STOCKHOLDERS’ EQUITY | ||||||||||||||||||||
Common stock, no par value: | 76,065 | 75,944 | 75,240 | 74,805 | 67,852 | |||||||||||||||
Retained Earnings | 33,123 | 31,424 | 29,666 | 27,816 | 33,046 | |||||||||||||||
Accumulated other comprehensive earnings, net of tax | 4,556 | 5,047 | 3,791 | 1,541 | 2,792 | |||||||||||||||
Total Stockholders’ Equity | 113,744 | 112,415 | 108,697 | 104,162 | 103,690 | |||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 1,177,548 | $ | 1,148,580 | $ | 1,160,978 | $ | 1,124,349 | $ | 1,111,457 |
CONSOLIDATED STATEMENTS OF INCOME | (Unaudited) | |||||||||||||||||||
(Amounts in thousands, except per share amounts) | Three Months Ended | |||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
INTEREST INCOME | ||||||||||||||||||||
Interest and fees on loans | $ | 9,301 | $ | 9,563 | $ | 9,871 | $ | 9,361 | $ | 8,309 | ||||||||||
Interest on dividends and securities | 1,815 | 1,731 | 1,685 | 1,657 | 1,575 | |||||||||||||||
Interest on deposits with other financial institutions | 1 | 1 | 1 | 3 | 9 | |||||||||||||||
Total interest income | 11,117 | 11,295 | 11,557 | 11,021 | 9,893 | |||||||||||||||
INTEREST EXPENSE | ||||||||||||||||||||
Deposits | 657 | 709 | 783 | 734 | 635 | |||||||||||||||
Federal Home Loan Bank advances | 10 | 1 | 8 | 7 | 1 | |||||||||||||||
Interest on note payable | 54 | 56 | 57 | 56 | 57 | |||||||||||||||
Total interest expense | 721 | 766 | 848 | 797 | 693 | |||||||||||||||
NET INTEREST INCOME | 10,396 | 10,529 | 10,709 | 10,224 | 9,200 | |||||||||||||||
Provision (recovery) for loan losses | — | 75 | 75 | (530 | ) | 75 | ||||||||||||||
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 10,396 | 10,454 | 10,634 | 10,754 | 9,125 | |||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Service charges | 623 | 618 | 621 | 647 | 618 | |||||||||||||||
Net gain on sale of available-for-sale securities | 140 | 57 | 184 | 89 | 29 | |||||||||||||||
Earnings on bank owned life insurance | 94 | 105 | 100 | 103 | 90 | |||||||||||||||
Other income | 250 | 277 | 237 | 290 | 287 | |||||||||||||||
Total Noninterest Income | 1,107 | 1,057 | 1,142 | 1,129 | 1,024 | |||||||||||||||
NONINTEREST EXPENSES | ||||||||||||||||||||
Salaries and employee benefits | 4,821 | 4,876 | 4,938 | 6,010 | 4,100 | |||||||||||||||
Occupancy expense | 645 | 617 | 631 | 611 | 592 | |||||||||||||||
Equipment expense | 445 | 438 | 434 | 393 | 718 | |||||||||||||||
Professional fees | 298 | 294 | 387 | 396 | 334 | |||||||||||||||
FDIC assessment | 150 | 150 | 150 | 150 | 150 | |||||||||||||||
Telephone, postage, supplies | 300 | 306 | 295 | 292 | 237 | |||||||||||||||
Advertising expense | 104 | 183 | 117 | 119 | 112 | |||||||||||||||
Data processing expense | 147 | 140 | 192 | 136 | 659 | |||||||||||||||
Low income housing expense | 71 | 71 | 71 | 71 | 70 | |||||||||||||||
Surety insurance | 88 | 87 | 87 | 83 | 122 | |||||||||||||||
Director fees | 72 | 72 | 72 | 72 | 72 | |||||||||||||||
Other real estate owned expense (recovery), net | — | — | (10 | ) | 10 | — | ||||||||||||||
Other expenses | 372 | 415 | 423 | 371 | 313 | |||||||||||||||
Total Noninterest Expense | 7,513 | 7,649 | 7,787 | 8,714 | 7,479 | |||||||||||||||
EARNINGS BEFORE PROVISION FOR INCOME TAXES | 3,990 | 3,862 | 3,989 | 3,169 | 2,670 | |||||||||||||||
Provision for income taxes | 1,546 | 1,414 | 1,422 | 1,081 | 431 | |||||||||||||||
NET EARNINGS AVAILABLE TO COMMON STOCKHOLDERS | $ | 2,444 | $ | 2,448 | $ | 2,567 | $ | 2,088 | $ | 2,239 |
(Unaudited) | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
(Amounts in thousands, except per share | September 30, | June 30, | March 31, | December 31, | September 30, | |||||||||||||||
amounts and percentages) | 2016 | 2016 | 2016 | 2015 | 2015 | |||||||||||||||
Per Share Data: | ||||||||||||||||||||
Basic earnings per share available to common stockholders | $ | 0.53 | $ | 0.53 | $ | 0.56 | $ | 0.47 | $ | 0.49 | ||||||||||
Diluted earnings per share available to common stockholders | $ | 0.52 | $ | 0.52 | $ | 0.55 | $ | 0.45 | $ | 0.48 | ||||||||||
Cash dividends declared | $ | 738 | $ | 686 | $ | 683 | $ | 680 | $ | 646 | ||||||||||
Average shares outstanding | 4,612 | 4,582 | 4,550 | 4,487 | 4,524 | |||||||||||||||
Average diluted shares outstanding | 4,717 | 4,695 | 4,687 | 4,623 | 4,643 | |||||||||||||||
Shares outstanding as of end of period | 4,616 | 4,607 | 4,566 | 4,542 | 4,316 | |||||||||||||||
SELECTED PERFORMANCE DATA | ||||||||||||||||||||
Annualized return on average assets | 0.84 | % | 0.85 | % | 0.90 | % | 0.91 | % | 0.86 | % | ||||||||||
Annualized return on average equity | 8.69 | % | 8.98 | % | 9.67 | % | 8.51 | % | 8.88 | % | ||||||||||
Net interest margin (taxable equivalent) | 3.88 | % | 3.96 | % | 4.14 | % | 4.17 | % | 4.00 | % | ||||||||||
Average loans as a percent of average deposits | 72.96 | % | 72.22 | % | 73.43 | % | 71.11 | % | 67.72 | % | ||||||||||
Average total stockholders’ equity as a % of average total assets | 9.70 | % | 9.43 | % | 9.26 | % | 10.68 | % | 9.69 | % | ||||||||||
Annualized common dividend payout ratio | 30.20 | % | 28.02 | % | 26.61 | % | 32.57 | % | 28.85 | % | ||||||||||
(Extracted from | ||||||||||||||||||||
LOANS | audited annual | (Unaudited) | ||||||||||||||||||
(Dollars in thousands) | (Unaudited) | (Unaudited) | (Unaudited) | financial statements) | As of | |||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||||
2016 | 2016 | 2016 | 2015 | 2015 | ||||||||||||||||
Real Estate Loans: | ||||||||||||||||||||
Construction | $ | 38,162 | $ | 29,251 | $ | 42,465 | $ | 44,816 | $ | 35,868 | ||||||||||
Commercial | 404,841 | 398,290 | 411,999 | 399,993 | 394,090 | |||||||||||||||
Multi family | 83,946 | 82,637 | 59,993 | 63,597 | 63,928 | |||||||||||||||
Residential | 173,476 | 174,084 | 173,437 | 171,964 | 172,280 | |||||||||||||||
Commercial & industrial loans | 50,967 | 51,366 | 55,694 | 52,033 | 39,843 | |||||||||||||||
Consumer loans | 1,630 | 1,311 | 1,675 | 1,574 | 1,497 | |||||||||||||||
Gross Loans | 753,022 | 736,939 | 745,263 | 733,977 | 707,506 | |||||||||||||||
Net deferred loan fees | (1,523 | ) | (1,430 | ) | (1,329 | ) | (1,260 | ) | (678 | ) | ||||||||||
Allowance for loan losses | (10,092 | ) | (10,038 | ) | (9,943 | ) | (9,970 | ) | (9,940 | ) | ||||||||||
NET LOANS | $ | 741,407 | $ | 725,471 | $ | 733,991 | $ | 722,747 | $ | 696,888 |
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.