/EINPresswire.com/ -- HAMMOND, LA--(Marketwired - October 26, 2016) - FPB Financial Corp. (OTCQB: FPBF), the holding company for Florida Parishes Bank, announced financial results for the 2016 period ended September 30, 2016.

Earnings

Net income in the 2016 third quarter decreased 10.4% to $670,000 ($0.34 per fully diluted common share) as compared to the 2015 third quarter net income of $747,000 ($0.41 per fully diluted common share). Net income increased 5.2% as compared to The Company's 2016 second quarter net income of $637,000. Return on Equity for the third quarter of 2016 was 8.8% (on an annualized basis). The Company's revenue increased $194,000 in the 2016 third quarter as compared to the 2015 quarter with net income declining primarily due to a $207,000 increase in compensation expense and a $74,000 increase in technology and information processing expenses and a $40,000 increase in foreclosed assets expenses. Net income was also affected by a decline in provisions for loan losses by $41,000, or 35.4% this quarter. The decline in earnings per share of 17.1% was greater than the 10.4% decline in net income due to the Company completeing the sale of 197,370 shares of our common stock on July 28, 2016 at a price of $16.50 per share in a private placement for the total gross proceeds of $3.3 million. The net sales proceeds are approximately $3.2 million. The additional capital raised in the private placement will be used to fund growth opportunities.

Items affecting and contributing to the Company's 2016 third quarter change in net income when compared to the 2015 quarterly period:

• Net Interest Income increased to $2.8 million from $2.6 million in 2015, or 5.9%
• Total Non-Interest Income increased to $905,000 from $866,000 in 2015, or 4.4%
• Mortgage banking fees increased to $353,000 from $313,000 in 2015, or 12.8%
• Total non-interest expenses increased to $2.7 million in 2016 from $2.3 million in 2015, or 15.3%
• Compensation and employee benefits increased to $1.5 million from $1.3 million in 2015, or 15.6%

Other items and per share data of note this Year-To-Date (YTD) as of September 30, 2016, compared to September 30, 2015

• Total Revenue (Net interest income and Non-interest income) increased to $10.7 million or 5.4%
• Net Interest income increased to $8.1 million or 4.6%
• Non-Interest income increased to $2.7 million or 7.7%
• Book Value per common share increased by 13.1% to $15.39
• Total Common Stockholders' Equity increased to $31.8 million, or 25.0%
• Cash Dividends paid to common shareholders total $282,000 in 2016 and $255,000 in 2015
• Non-Interest Bearing Deposits increased by 16.4% to $62.1 million
• Non-Maturity deposits increased by 23.7% to $185.0 million
• Total Assets increased by 14.7% to $268.9 million
• Net Loans increased to $151.7 million or 9.9%
• FHLB advances decreased by 6.1% to $9.4 million
• Net-Loan Recoveries increased by $39,000 in 2016 from $1,000 in 2015
• Foreclosed Assets increased to $129,000 in 2016 from $0.00 in 2015

Asset Quality

The Company had $8,000 of net loan charge-offs in third quarter of 2016 and $19,000 in the 2015 third quarter. Net loan charge-offs were $6,000 in the 2016 second quarter. Non-performing assets as of September 30, 2016 total $2.2 million, a 20.7% increase of $382,000 from September 30, 2015. Non-performing assets on June 30, 2016 total $2.2 million.

Total Troubled Debt Restructured (TDR'S) at September 30, 2016 increased by $430,000, or 15.2% to $3.2 million as compared to September 30, 2015. TDR'S that are current (less than 30 days past due) at September 30, 2016 represent $2.4 million of the $3.2 million TDR total. Total TDR'S at June 30, 2016 were $2.6 million. The Company's allowance for loan losses increased by 7.5% to $3.4 million at September 30, 2016. Total allowance for loan losses were $3.4 million at June 30, 2016.

Balance Sheet and Capital

Total assets at September 30, 2016 increased by 14.7% to $268.9 million as compared to $234.5 million at September 30, 2015. The increase in total assets was primarily attributed to an increase of $13.7 million in net loans, an increase of $9.8 million in cash and cash equivalents, an increase of $5.7 million in total investment securities and a $2.8 million increase in premises and equipment. Total liabilities increased by 13.4% to $237.1 million primarily due to an increase of $28.3 million, or 14.5% in total deposits to $223.1 million offset by a decrease of $608,000 or 6.1% in Federal Home Loan Bank advances.

Common Stockholders' Equity increased by $6.3 million, or 25.0%, to $31.8 million for the twelve months ended September 30, 2016, primarily due to the completion of the $3.2 million (net) private placement common stock offering on July 28, 2016. Capital surplus increased by $3.6 million or 41.6% to $12.1 million. Retained earnings increased by $2.4 million to $18.9 million for the twelve month period. Other comprehensive income increased by $417,000 at September 30, 2016. Tangible common stockholders' equity increased to $31.8 million for the period. Book value per common share increased to $15.39 as total common shares of 2,065,203 were outstanding at September 30, 2016. At the Subsidiary Bank level, Tier 1 Capital increased to $27.4million at September 30, 2016.

Other Matters

On March 31, 2016 a 3 for 2 stock split was paid on our common stock. Primary as a result of the stock split, our total shares issued increased to 2,065,203 shares at September 30, 3016, and our net number of shares issued and outstanding after subtracting unearned RRP shares increased to 2,057,810 shares. In addition our per share stock price currently reflects the stock split.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of September 30, 2016.

FPB Financial Corp. is headquartered in Hammond, LA and is the parent company of Florida Parishes Bank. The Company's common stock is traded under the "FPBF" symbol.

This news release contains certain forward-looking statements, including statements about the financial condition, results of operations and earnings outlook for FPB Financial Corp. and its subsidiaries. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond the Company's control, could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. These factors include, among others, the following: general economic conditions, changes in interest rates, deposit flows, the cost of funds, changes in credit quality, interest rate risks associated with the Company's business and operations and the adequacy of our allowance for loan losses. Other factors include changes in our loan portfolio, changes in competition, fiscal and monetary policies and legislation and regulatory changes. We undertake no obligation to update any forward-looking statements.

Fritz W. Anderson II, CEO and Chairman of the Board, announced today that, "On October 13, 2016, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company. The dividend rate of $0.05 per share will be paid on December 26, 2016 to stockholders of record at the close of business on December 12, 2016."