SOURCE: FNB Bancorp
July 30, 2010 16:00 ET
First National Bank of Northern California Reports Second Quarter 2010 Earnings of $0.16 per Diluted Share
SOUTH SAN FRANCISCO, CA--(Marketwire - July 30, 2010) - FNB Bancorp (OTCBB: FNBG), parent
company of First National Bank of Northern California (the "Bank"), today
announced net earnings available to common shareholders for the second
quarter of 2010 of $525,000 or $0.16 per diluted share, compared to a net
operating loss of $(185,000) or $(0.06) per diluted share for the second
quarter of 2009. Dividend payments on the preferred shares outstanding were
made as required by the Treasury Department's Capital Purchase Program
during the first and second quarters of 2010 and 2009. Our balance sheet is
strong and we continue to be "well capitalized" as defined by bank
regulations. Total assets as of June 30, 2010 were $721,811,000 compared to
$661,828,000 as of June 30, 2009. Our net loan totals declined by
$5,212,000 or 1.1% during the second quarter of 2010 and our deposits
declined $3,420,000 or 0.5% during the same time period. The Company's
liquidity position remains strong with $125,976,000 in available for sale
securities and $60,876,000 in cash and due from banks as of June 30, 2010.
During the second quarter of 2010, as part of our continuing efforts to
provide our customers a quality banking experience while we improve our
operational efficiencies, the decision was made to consolidate our Eureka
Square branch into our Linda Mar branch in Pacifica, CA. A new remote
capture ATM will be installed in the Eureka Square Shopping Center in order
to continue to serve our customers that work and live in the surrounding
neighborhoods.
"The consolidation of the Eureka Square branch into our Linda Mar branch in
Pacifica, CA. on June 25, 2010 went smoothly. We look forward to continuing
to provide for the banking needs of the Pacifica community through our full
service Linda Mar branch and our ATM at Eureka Square. I am proud to say
that all the employees who worked at the Eureka Square office have been
provided other positions within the Bank. There were no layoffs of
personnel as a result of this consolidation," stated Mr. McGraw.
"During the second quarter of 2010, the Bank enjoyed an increase in net
interest margin and net interest income as compared to the first quarter of
2010. Credit resolution costs stabilized, which allowed us to lower our
provision for loan losses during the second quarter of 2010," continued Mr.
McGraw.
"The credit problems brought about by a national recession, declining real
estate values, increased foreclosures, and generally tight credit are still
evident. We continue to manage our credit risks in a safe, yet proactive
manner. Management attention was focused on risk management and asset
quality improvement during the first and second quarters of 2010, and that
will continue to be our focus as we move into the third quarter of 2010.
During the second quarter of 2010, profitability levels were still not at
historical levels; however, the Bank is well positioned to take advantage
of any market opportunities that become available and to grow as the health
of the economy improves. We want to lend and are actively seeking new loan
and deposit customers who want a local community bank that knows and
understands them. We want our customers to know that we are committed to
them, both on a personal and on a community level. We look forward to
provide for the banking needs of our customers, as we have been doing so
for the last 47 years," stated Mr. McGraw.
Financial Highlights: Second Quarter, 2010
Consolidated Statements of Earnings
(in '000s except earnings per share amounts)
Three Three Six Six
months months months months
ended ended ended ended
June 30, June 30, June 30, June 30,
2010 2009 2010 2009
--------- --------- --------- ---------
Interest income $ 8,756 $ 8,643 $ 17,416 $ 17,554
Interest expense 1,330 2,362 3,030 4,681
--------- --------- --------- ---------
Net interest income 7,426 6,281 14,386 12,873
Provision for loan losses (315) (760) (565) (2,900)
Noninterest income 1,026 1,245 2,126 2,594
Noninterest expense 7,237 6,758 13,775 14,178
--------- --------- --------- ---------
Income before income taxes 900 8 2,172 (1,611)
Provision for income taxes (161) (4) (429) 426
--------- --------- --------- ---------
Net earnings (loss) 739 4 1,743 (1,185)
Dividends and discount
accretion on preferred
stock 214 189 426 205
Net earnings (loss)
available to common --------- --------- --------- ---------
shareholders $ 525 $ (185) $ 1,317 $ (1,390)
========= ========= ========= =========
Basic earnings per share $ 0.16 ($ 0.06) $ 0.41 ($ 0.44)
Diluted earnings per share $ 0.16 ($ 0.06) $ 0.41 ($ 0.44)
Average assets $ 693,481 $ 673,061 $ 693,060 $ 665,671
Average equity $ 79,903 $ 78,825 $ 79,663 $ 75,977
Return on average assets 0.30% -0.11% 0.38% -0.42%
Return on average equity 2.63% -0.94% 3.31% -3.66%
Efficiency ratio 86% 90% 83% 92%
Net interest margin (taxable
equivalent) 4.89% 4.21% 4.79% 4.37%
Average shares outstanding 3,182 3,182 3,182 3,182
Average diluted shares
outstanding 3,192 3,182 3,197 3,182
Financial Highlights: Second Quarter, 2010
Consolidated Balance Sheets
(in '000s)
As of As of As of As of
June 30, December 31, June 30, December 31,
2010 2009 2009 2008
--------- --------- --------- ---------
Assets:
Cash and cash equivalents $ 60,876 $ 62,853 $ 36,696 $ 14,865
Securities available for sale 125,976 97,188 89,556 99,221
Loans, net 480,652 494,349 487,312 497,984
Premises, equipment and
leasehold improvements 11,762 11,784 12,381 13,030
Other real estate owned 8,677 7,320 5,492 3,557
Goodwill 1,841 1,841 1,841 1,841
Other assets 32,027 32,974 28,550 30,459
--------- --------- --------- ---------
Total assets $ 721,811 $ 708,309 $ 661,828 $ 660,957
========= ========= ========= =========
Liabilities and
stockholders' equity:
Deposits:
Demand and NOW $ 186,384 $ 177,883 $ 170,734 $ 179,688
Savings and money market 313,613 293,758 233,951 179,382
Time 120,169 127,323 133,793 141,840
--------- --------- --------- ---------
Total deposits 620,166 598,964 538,478 500,910
Federal Home Loan Bank advances 15,000 25,000 40,000 86,100
Accrued expenses and other
liabilities 5,977 5,480 5,511 5,798
--------- --------- --------- ---------
Total liabilities 641,143 629,444 583,989 592,808
Stockholders' equity 80,668 78,865 77,839 68,149
--------- --------- --------- ---------
Total liabilities and
stockholders' equity $ 721,811 $ 708,309 $ 661,828 $ 660,957
========= ========= ========= =========
Other Financial Information
Allowance for loan losses $ 9,076 $ 9,829 $ 9,095 $ 7,075
Nonperforming assets $ 22,775 $ 32,912 $ 32,385 $ 17,659
Total gross loans $ 489,728 $ 504,178 $ 496,407 $ 505,059
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.