Attached files
| file | filename |
|---|---|
| 8-K/A - FORM 8-K - FNB BANCORP/CA/ | fnb_8k.htm |
| EX-99.4 - EXHIBIT 99.4 - FNB BANCORP/CA/ | ex99_4.htm |
| EX-99.1 - EXHIBIT 99.1 - FNB BANCORP/CA/ | ex99_1.htm |
| EX-99.2 - EXHIBIT 99.2 - FNB BANCORP/CA/ | ex99_2.htm |
| EX-23.1 - EXHIBIT 23.1 - FNB BANCORP/CA/ | ex23_1.htm |
Exhibit 99.3
UNAUDITED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
The unaudited interim consolidated financial statements set forth below are for FNB Bancorp prior to the acquisition of Oceanic Holding, Inc. The financial statements were prepared for periods preceding the Oceanic Holding, Inc. acquisition date and do not include any merger related adjustments for the periods presented.
FNB BANCORP AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
ASSETS
| June 30, | December 31, | |||||||
| (Dollar amounts in thousands) | 2012 | 2011 | ||||||
| Cash and due from banks | $ | 44,856 | $ | 38,474 | ||||
| Securities available-for-sale, at fair value | 203,548 | 187,664.00 | ||||||
| Loans, net of deferred loan fees and allowance for loan losses of $8,458 and $9,897 on June 30, 2012 and December 31, 2011 | 453,300 | 443,721.00 | ||||||
| Bank premises, equipment, and leasehold improvements, net | 12,916 | 13,227.00 | ||||||
| Bank owned life insurance | 11,594 | 9,521.00 | ||||||
| Other equity securities | 4,603 | 4,608.00 | ||||||
| Accrued interest receivable | 3,621 | 3,614.00 | ||||||
| Other real estate owned, net | 1,923 | 2,747.00 | ||||||
| Goodwill | 1,841 | 1,841.00 | ||||||
| Prepaid expenses | 1,609 | 2,107.00 | ||||||
| Other assets | 8,939 | 8,117.00 | ||||||
| Total assets | $ | 748,750 | $ | 715,641 | ||||
| Liabilities & Stockholders’ Equity | ||||||||
| Deposits | ||||||||
| Demand, noninterest bearing | $ | 159,370 | $ | 139,382 | ||||
| Demand, interest bearing | 63,971 | 63,308 | ||||||
| Savings and money market | 323,372 | 310,237 | ||||||
| Time | 105,130 | 108,851 | ||||||
| Total deposits | 651,843 | 621,778 | ||||||
| Accrued expenses and other liabilities | 7,586 | 6,667 | ||||||
| Total liabilities | 659,429 | 628,445 | ||||||
| Stockholders’ equity | ||||||||
| Preferred stock - series C - no par value, authorized and outstanding 12,600 shares (liquidation preference of $1,000 per share) | 12,600 | 12,600 | ||||||
| Common stock, no par value, authorized 10,000,000 shares; issued and outstanding 3,514,745 shares at June 30, 2012 and 3,506,405 shares at December 31, 2011 | 49,097 | 48,895 | ||||||
| Retained earnings | 24,179 | 22,427 | ||||||
| Accumulated other comprehensive earnings , net of tax | 3,445 | 3,274 | ||||||
| Total stockholders’ equity | 89,321 | 87,196 | ||||||
| Total liabilities and stockholders’ equity | $ | 748,750 | $ | 715,641 | ||||
FNB BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENT OF EARNINGS
(UNAUDITED)
(Dollar amounts and average shares are in thousands, except earnings per share amounts)
| Twelve | ||||||||||||
| Six months ended | Months | |||||||||||
| June 30, | Ended | |||||||||||
| 2012 | 2011 | Dec. 31, 2011 | ||||||||||
| Interest income: | ||||||||||||
| Interest and fees on loans | $ | 13,513 | $ | 14,845 | $ | 29,320 | ||||||
| Interest on taxable securities | 1,230 | 866 | 1,910 | |||||||||
| Interest on tax-exempt securities | 1,017 | 778 | 1,667 | |||||||||
| Total interest income | 15,760 | 16,489 | 32,897 | |||||||||
| Interest expense: | ||||||||||||
| Deposits | 1,337 | 1,741 | 3,327 | |||||||||
| Total interest expense | 1,337 | 1,741 | 3,327 | |||||||||
| Net interest income | 14,423 | 14,748 | 29,570 | |||||||||
| Provision for loan losses | 800 | 850 | 1,750 | |||||||||
| Net interest income after provision for loan losses | 13,623 | 13,898 | 27,820 | |||||||||
| Noninterest income: | ||||||||||||
| Service charges | 1,496 | 1,508 | 3,107 | |||||||||
| Credit card fees | 308 | 328 | 701 | |||||||||
| Net gain on sale of available-for-sale securities | 809 | 150 | 479 | |||||||||
| Bank owned life insurance earnings | 578 | 165 | 325 | |||||||||
| Other income | 144 | 251 | 467 | |||||||||
| Total noninterest income | 3,335 | 2,402 | 5,079 | |||||||||
| Noninterest expense: | ||||||||||||
| Salaries and employee benefits | 7,419 | 6,909 | 13,726 | |||||||||
| Occupancy expense | 1,198 | 1,141 | 2,331 | |||||||||
| Equipment expense | 878 | 825 | 1,722 | |||||||||
| Professional fees | 971 | 757 | 1,668 | |||||||||
| FDIC assessment | 336 | 675 | 1,155 | |||||||||
| Telephone, postage and supplies | 549 | 611 | 1,149 | |||||||||
| Operating (recoveries) losses | 52 | 234 | 571 | |||||||||
| Bankcard expenses | 313 | 301 | 658 | |||||||||
| Data processing expense | 276 | 286 | 560 | |||||||||
| Low income housing expense | 139 | 139 | 278 | |||||||||
| (Gain) loss on sale of other real estate owned | (4 | ) | (66 | ) | (66 | ) | ||||||
| Loss on impairment of other real estate owned | — | 230 | 543 | |||||||||
| Other real estate owned expense | 51 | 261 | 439 | |||||||||
| Other expense | 1,373 | 1,217 | 2,340 | |||||||||
| Total noninterest expense | 13,551 | 13,520 | 27,074 | |||||||||
| Earnings before provision for income tax expense | 3,407 | 2,780 | 5,825 | |||||||||
| Provision for income tax expense | 891 | 797 | 1,568 | |||||||||
| Net earnings | 2,516 | 1,983 | 4,257 | |||||||||
| Dividends and discount accretion on preferred stock | 343 | 428 | 800 | |||||||||
| Net earnings available to common stockholders | $ | 2,173 | $ | 1,555 | $ | 3,457 | ||||||
| Earnings per share data: | ||||||||||||
| Basic | $ | 0.62 | $ | 0.44 | $ | 0.99 | ||||||
| Diluted | $ | 0.61 | $ | 0.44 | $ | 0.98 | ||||||
| Weighted average shares outstanding: | ||||||||||||
| Basic | 3,512 | 3,509 | 3,509 | |||||||||
| Diluted | 3,563 | 3,528 | 3,528 | |||||||||
FNB BANCORP AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
| Twelve | ||||||||||||
| (Dollar amounts in thousands) | Six months ended | Months | ||||||||||
| June 30 | Ended | |||||||||||
| 2012 | 2011 | Dec. 31, 2011 | ||||||||||
| Cash flow from operating activities: | ||||||||||||
| Net earnings | $ | 2,516 | $ | 1,983 | $ | 4,257 | ||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | ||||||||||||
| Net gain on sale of securities available-for-sale | (809 | ) | (150 | ) | (479 | ) | ||||||
| Depreciation, amortization and accretion | 1,680 | 1,332 | 2,803 | |||||||||
| Loss (gain) on sale of other real estate owned | 5 | (66 | ) | (66 | ) | |||||||
| Stock-based compensation expense | 121 | 154 | 293 | |||||||||
| Provision for loan losses | 800 | 850 | 1,750 | |||||||||
| (Increase) decrease in accrued interest receivable | (7 | ) | 691 | (308 | ) | |||||||
| Decrease in prepaid expense | 498 | 877 | 151 | |||||||||
| Increase in bank-owned life insurance | (2,073 | ) | (166 | ) | (325 | ) | ||||||
| (Increase) decrease in other assets | (801 | ) | 25 | 2,568 | ||||||||
| Valuation allowance on other real estate owned | — | 230 | 543 | |||||||||
| Increase (decrease) in accrued expenses and other liabilities | 800 | (205 | ) | (925 | ) | |||||||
| Net cash provided by operating activities | 2,730 | 5,555 | 10,262 | |||||||||
| Cash flows from investing activities: | ||||||||||||
| Purchase of securities available-for-sale | (43,995 | ) | (29,786 | ) | (98,861 | ) | ||||||
| Proceeds from matured/called/sold securities available-for-sale | 28,269 | 14,655 | 41,694 | |||||||||
| Investment, net of redemption, in other equity securities | 5 | 317 | 638 | |||||||||
| Proceeds from sale of other real estate owned | 832 | 4,078 | 4,078 | |||||||||
| Net investment in other real estate owned | (13 | ) | — | (3 | ) | |||||||
| Net (increase) decrease in loans | (10,379 | ) | 14,222 | 28,738 | ||||||||
| Purchases of bank premises, equipment, leasehold improvements, net | (427 | ) | (842 | ) | (1,179 | ) | ||||||
| Net cash (used in) provided by investing activities | (25,708 | ) | 2,644 | (24,895 | ) | |||||||
| Cash flows from financing activities: | ||||||||||||
| Net increase in demand and savings deposits | 33,786 | 11,854 | 9,887 | |||||||||
| Net decrease in time deposits | (3,721 | ) | (11,786 | ) | (16,549 | ) | ||||||
| Dividends paid on common stock | (421 | ) | (167 | ) | (571 | ) | ||||||
| Exercise of stock options | 59 | 7 | 11 | |||||||||
| Issuance of preferred stock series C | — | — | 12,600 | |||||||||
| Redemption of preferred stock series A and B | — | — | (12,600 | ) | ||||||||
| Dividends paid on preferred stock series A and B | — | (327 | ) | (545 | ) | |||||||
| Dividends on preferred stock series C | (343 | ) | — | — | ||||||||
| Net cash (used in) provided by financing activities | 29,360 | (419 | ) | (7,767 | ) | |||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 6,382 | 7,780 | (22,400 | ) | ||||||||
| Cash and cash equivalents at beginning of period | 38,474 | 60,874 | 60,874 | |||||||||
| Cash and cash equivalents at end of period | $ | 44,856 | $ | 68,654 | $ | 38,474 | ||||||
| Additional cash flow information: | ||||||||||||
| Interest paid | 1,338 | 1,728 | 3,345 | |||||||||
| Income taxes paid | 930 | 1,090 | 1,955 | |||||||||
| Non-cash investing and financing activities: | ||||||||||||
| Change in unrealized gain in available for-sale securities, net of tax | 648 | 1,444 | 3,037 | |||||||||
| Loans transferred to other real estate owned | — | — | 619 | |||||||||
| Deemed dividends on preferred stock | — | 101 | 255 | |||||||||
FNB BANCORP AND SUBSIDIARY
Notes to Unaudited Interim Consolidated Financial Statements
Note 1. Nature of Business and Summary of Significant Accounting Policies
Nature of Business
FNB Bancorp (the “Company”) is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. The Company was incorporated under the laws of the State of California on February 28, 2001. The consolidated financial statements include the accounts of FNB Bancorp and its wholly-owned subsidiary, First National Bank of Northern California (the “Bank”). The Bank provides traditional banking services in San Mateo and San Francisco counties.
Use of estimates
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. A material estimate that is particularly susceptible to significant change in the near term relates to the determination of the allowance for loan losses.
Interim financial information
The accompanying unaudited consolidated financial statements as of June 30, 2012 and for the six months ended June 30, 2012 and 2011 and for the twelve months ended December 31, 2011 have been prepared in condensed format, and therefore do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements.
The information furnished in these interim statements reflects all adjustments that are, in the opinion of management, necessary for a fair statement of the results for each respective period presented. Such adjustments are of a normal recurring nature. The results of operations in the interim statements are not necessarily indicative of the results that may be expected for any other quarter or for the full year.
A statement of stockholders’ equity is not included as part of these interim financial statements since there have been no material changes in the capital structure of the Bank.
Legal matters
The Bank is subject to various claims, legal proceedings and investigations that may arise in the ordinary course of business. Management believes the resolution of claims and pending litigation will not have a material effect to the financial position or results of operations of the Bank.