/EINPresswire.com/ -- SOUTH SAN FRANCISCO, CA -- (Marketwired) -- 10/20/15 -- 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       Three months  Three months   Nine months   Nine months
 Earnings                ended         ended         ended         ended
(in 000s except        September     September     September     September
 share and earnings       30,           30,           30,           30,
 per share amounts)      2015          2014          2015          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
                      (Unaudited)        *        (Unaudited)        *
Consolidated Balance     As of         As of         As of         As of
 Sheets              September 30,  December 31, September 30,  December 31,
(in '000s)                2015          2014          2014          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

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