FNB Bancorp (FNBG: OTCQB) | First National Bank of Northern California Reports Third Quarter 2015 Earnings of $0.51 per Diluted Share

First National Bank of Northern California Reports Third Quarter 2015 Earnings of $0.51 per Diluted Share

Oct 20, 2015

OTC Disclosure News Service

– First National Bank of Northern California Reports Third Quarter 2015 Earnings of $0.51 per Diluted Share

SOUTH SAN FRANCISCO, CA–(Marketwired – Oct 20, 2015) – FNB Bancorp (OTCQB: FNBG), parent company of First National Bank of Northern California (the “Bank”), today announced net earnings available to common shareholders for the third quarter of 2015 of $2,239,000 or $0.51 per diluted share, compared to net earnings available to common shareholders of $1,823,000 or $0.42 per diluted share for the third quarter of 2014. 

“The third quarter of 2015 was a quarter of solid earnings for the Company, accentuated by a favorable income tax settlement that is underway with the Franchise Tax Board of California related to the Company’s enterprise zone net interest deduction claimed on state income returns for the years 2005 through 2013. As a result, the Company was able to record a $535,416 tax benefit during the quarter related to this settlement. The acquisition of America California Bank allowed the Company to record net interest income during the third quarter that was higher than above levels recorded for the second quarter of 2015. Acquisition expenses of America California Bank, net of related tax benefits, were $527,000 during the third quarter. Total assets have increased $194 million since the beginning of the year, primarily related to the America California Bank acquisition,” stated Tom McGraw, CEO.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Highlights: Third Quarter, 2015
 
(Unaudited)
 
Consolidated Statements of Earnings
(in 000s except share and earnings per share amounts)
 
Three months
ended
September 30,
2015
 
 
Three months
ended
September 30,
2014
 
 
Nine months
ended
September 30,
2015
 
 
Nine months
ended
September 30,
2014
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Interest income
 
$
9,893
 
 
$
9,300
 
 
$
28,261
 
 
$
27,544
 
Interest expense
 
 
691
 
 
 
538
 
 
 
1,800
 
 
 
1,562
 
 
Net interest income  
 
9,202
 
 
 
8,762
 
 
 
26,461
 
 
 
25,982
 
Provision for loan losses
 
 
(75
)
 
 

 
 
 
(225
)
 
 
(75
)
Noninterest income
 
 
1,022
 
 
 
1,041
 
 
 
3,367
 
 
 
3,067
 
Noninterest expense
 
 
7,479
 
 
 
7,055
 
 
 
21,211
 
 
 
21,107
 
 
Income before provision for income taxes
 
 
2,670
 
 
 
2,748
 
 
 
8,392
 
 
 
7,867
 
Provision for income taxes
 
 
(431
)
 
 
(925
)
 
 
(2,283
)
 
 
(2,581
)
 
Net earnings
 
 
2,239
 
 
 
1,823
 
 
 
6,109
 
 
 
5,286
   
Dividends and discount accretion on preferred stock
 
 

 
 
 

 
 
 

 
 
 
170
 
 
Net earnings available to common shareholders
 
$
2,239
 
 
$
1,823
 
 
$
6,109
 
 
$
5,116
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic earnings per share
 
$
0.52
 
 
$
0.43
 
 
$
1.42
 
 
$
1.21
 
Diluted earnings per share
 
$
0.51
 
 
$
0.42
 
 
$
1.38
 
 
$
1.17
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Average assets
 
$
1,040,049
 
 
$
903,222
 
  $
971,294
 
 
$
897,247
 
Average equity
 
$
100,801
 
 
$
91,455
 
 
$
99,556
 
 
$
89,738
 
Return on average assets
 
 
0.86
%
 
 
0.81
%
 
 
1.26
%
 
 
1.14
%
Return on average equity
 
 
8.88
%
 
 
7.97
%
 
 
12.27
%
 
 
11.40
%
Efficiency ratio
 
 
73
%
 
 
72
%
 
 
71
%
 
 
73
%
Net interest margin (taxable equivalent)
 
 
4.00
%
 
 
4.20
%
 
 
4.09
%
 
 
4.23
%
Average shares outstanding
 
 
4,309
 
 
 
4,250
 
 
 
4,293
 
 
 
4,222
 
Average diluted shares outstanding
 
 
4,422
 
 
 
4,384
 
 
 
4,414  
 
 
4,364
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Financial Highlights: Third Quarter, 2015
 
Consolidated Balance Sheets
(in ‘000s)
 
 
 
 
(Unaudited)
As of
September 30,
2015
 
 
 
 
*
As of
December 31,
2014
 
 
 
 
(Unaudited)
As of
September 30,
2014
 
 
 
 
*
As of
December 31,
2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
$
40,282
 
$
14,978
 
$
15,220
 
$
14,007
Interest-bearing time deposits with other financial institutions
 
 
1,246
 
 
2,784
 
 
4,068
 
 
5,543
Securities available for sale, at fair value
 
 
315,560
 
 
264,881
 
 
267,924  
 
263,988
Loans, net
 
 
696,888
 
 
583,715
 
 
568,533
 
 
552,343
Premises, equipment and leasehold improvements, net
 
 
10,326
 
 
10,951
 
 
12,239
 
 
12,512
Other real estate owned, net
 
 
838
 
 
763
 
 
755
 
 
5,318
Goodwill
 
 
4,580
 
 
1,841
 
 
1,841
 
 
1,841
Other equity securities
 
 
6,748
 
 
5,769
 
 
5,769
 
 
5,300
Accrued interest receivable
 
 
4,326
 
 
3,725
 
 
3,670
 
 
3,808
Prepaid expenses
 
 
877
 
 
1,045
 
 
444
 
 
701
Bank owned life insurance
 
 
12,766
 
 
12,510
 
 
12,424
 
 
12,151
Other assets
 
 
17,021
 
 
14,202
 
 
14,535
 
 
14,418
 
Total assets
 
$ 1,111,458
 
$
917,164
 
$
907,422
 
$
891,930
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities and stockholders’ equity:
 
 
 
 
 
 
 
 
 
 
 
 
Deposits:
 
 
 
 
 
 
 
 
 
 
 
 
Demand and NOW
 
$
346,888
 
$
292,359
 
$
284,196
 
$
279,269
Savings and money market
 
 
512,534
 
 
394,676
 
 
393,929
 
 
370,194
Time
 
 
129,943
 
 
105,159
 
 
104,031
 
 
124,152
 
Total deposits
 
 
989,365
 
 
792,194
 
 
782,156
 
 
773,615
Federal Home Loan Bank advances
 
 

 
 
9,000
 
 
16,000
 
 
15,000
Note payable
   
5,100
 
 
5,550
 
 
5,700
 
 

Accrued expenses and other liabilities
 
 
13,303
 
 
13,332
 
 
10,974
 
 
9,066
 
Total liabilities
 
 
1,007,768
 
 
820,076
 
 
814,830
 
 
797,681
Stockholders’ equity
 
 
103,690
 
 
97,088
 
 
92,592
 
 
94,249
 
Total liab. and stockholders’ equity
 
$
1,111,458
 
$
917,164
 
$
907,422
 
$
891,930
 
 
 
 
 
 
 
 
 
 
 
 
 
* Excerpt from the audited annual financial statements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other Financial Information
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses
 
$
9,940
  $
9,700
 
$
10,774
 
$
9,879
Nonperforming assets
 
$
6,030
 
$
6,411
 
$
5,875
 
$
12,669
Total gross loans
 
$
706,828
 
$
593,415
 
$
579,307
 
$
562,222
 
 
 
 
 
 
 
 
 
 
 
 
 

“Our net interest margin continued to move lower during the third quarter of 2015, due primarily to the low interest rate environment created by the current policy position of the Federal Open Market Committee (the ‘Committee’) of the Federal Reserve Bank. To date, there has been no set date established by the Committee as to when they intend to begin raising short term interest rate targets. Until they do, our net interest margin will continue to experience downward pressure in the near term. Noninterest expenses during the third quarter were negatively affected by acquisition costs. Management is committed to keep ongoing operating costs related to the America California Bank acquisition at a minimum. The recorded goodwill related to the America California Bank acquisition was $2,739,000. Management believes the payback period related to the recorded goodwill should be approximately 1.5 years,” continued Tom McGraw.

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.

Contacts:
Tom McGraw
Chief Executive Officer
(650) 875-4864

Dave Curtis
Chief Financial Officer
(650) 875-4862

Copyright © 2015 Marketwired. All Rights Reserved

The above news release has been provided by the above company via the OTC Disclosure and News Service. Issuers of news releases and not OTC Markets Group Inc. are solely responsible for the accuracy of such news releases.

Article source: http://www.otcmarkets.com/stock/FNBG/news?id=117056

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