Founders Community Bank Announces Record Year

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Feb 02, 2015, 11:02 ET

SAN LUIS OBISPO, Calif., Feb. 2, 2015 /PRNewswire/ -- Founders Community Bank, a wholly-owned subsidiary of Founders Bancorp (ticker: FBCP) today reported unaudited net income of $1.64 million for the year ended December 31, 2014, compared to net income of $1.15 million in 2013, and $850 thousand in 2012.

"The Board of Directors of Founders Community Bank is pleased to report another productive year in 2014. Numerous challenges may still persist in the banking industry, but we adhered to our business plan with positive results," said Thomas J. Sherman, President and CEO.

"When considering our year-end balance sheet and income statement, there were several positive items of note. In addition to record earnings, the Bank finished the year with no loans past due, no loans on non-accrual, and no Other Real Estate Owned. The only contrary issue was that total net loans retreated in the latter-half of 2014 as numerous projects financed by the Bank were completed and paid off. However, we are optimistic about the prospects for loan growth in the new year despite the fact that the Federal Reserve is poised to potentially begin raising interest rates in mid-2015. As the local lending landscape evolves, we will remain ever-vigilant in our underwriting standards. We will also remain true to our basic tenets of revenue enhancement, expense reduction, the realization of efficiencies, and the management of risk in all areas of our operations," commented Sherman.

About the Bank

Headquartered in San Luis Obispo, CA, Founders Community Bank operates three full service branches and a loan production office. Founders Community Bank specializes in providing personalized community banking services to individuals and small to mid-size businesses and also offers the convenience of 24-hour access through on-line banking, telephone and ATMs. For additional information please review the Bank's website at www.fcbslo.com.

Founders Community Bank - Built on a foundation of success

Forward-Looking Statement Disclaimer –

This release may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties may include but are not necessarily limited to the Company's ability to sustain dividend payments, fluctuations in interest rates, monetary policy established by the Federal Reserve, inflation, government regulations, general economic conditions, and competition within the business areas in which the Company is conducting its operations, including the real estate market in California, the ability to recognize identified cost savings, and other factors beyond the Company's control. Such risks and uncertainties could cause results for subsequent interim periods or for the entire year to differ materially from those indicated. Readers should not place undue reliance on the forward-looking statements, which reflect management's view only as of the date hereof. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect subsequent events or circumstances.

Press Release Contact: Thomas J. Sherman
Phone: 805.543.6500

FOUNDERS COMMUNITY BANK
BALANCE SHEET - Unaudited
(Dollar in thousands)

	Dec 31	Dec 31	Dec 31
	2014	2013	2012
Assets:
Cash and due from banks	$ 3,197	$ 2,821	$ 3,296
Interest earning deposits due from banks	7,671	4,554	16,079

Total Cash and Cash Equivalents	10,868	7,375	19,375

Certificates of deposit in financial institutions	38,822	26,107	14,473
Investment securities	9,634	10,683	1,002
Fed Funds Sold	103	18	295

Loans net of unearned income	103,747	113,395	97,881
Allowance for loan losses	1,736	1,749	1,640
Net loans	102,011	111,646	96,241

Premises and equipment, net	1,423	1,567	1,725
Deferred tax assets	662	809	514
Other real estate owned	-	326	751
Bank Owned Life Insurance	4,086	-	-
Accrued interest receivable and other assets	1,199	1,116	1,352

Total Assets	$ 168,808	$ 159,647	$ 135,728

Liabilities:
Non-interest-bearing demand deposits	$ 66,864	$ 59,502	$ 55,140

Savings and NOW deposits	30,389	28,335	18,076
Money market deposits	28,143	28,849	19,453
Certificates of deposit	27,100	26,986	27,339
Total Interest Bearing Deposits	85,632	84,170	64,868
Total Deposits	152,496	143,672	120,008

Accrued interest payable and other liabilities	172	121	105
Total Liabilities	152,668	143,793	120,113

Shareholders' Equity
Preferred stock and related surplus - SBLF	1,441	2,950	3,760
Common Stock	11,164	11,164	11,159
Additional paid in capital	781	739	666
Dividends paid - SBLF	(31)	(146)	(108)
Prior year accumulated income	1,149	140	(710)
Current year-to-date income	1,644	1,155	850
Accumulated other comprehensive income (loss)	(8)	(148)	(2)
Total Shareholders' Equity	16,140	15,854	15,615

Total Liabilities & Shareholders' Equity	$ 168,808	$ 159,647	$ 135,728

FOUNDERS COMMUNITY BANK
STATEMENTS OF INCOME - Unaudited
(Dollar in thousands)

	12 Months Ended
	Dec 31	Dec 31	Dec 31
	2014	2013	2012
Interest Income:
Interest and fees on loans	$ 6,830	$ 6,303	$ 5,922
Interest on investment securities	153	48	7
Interest on due from banks	332	240	165
Total Interest Income	7,315	6,591	6,094

Interest Expense:
Interest on savings and NOW deposits	26	20	12
Interest on money market deposits	97	86	71
Interest on certificates of deposit	146	166	186
Total Interest Expense	269	272	269

Net Interest Income	7,046	6,319	5,825

Provision for loan losses	61	66	191

Net Interest Income After Loan Loss Prov	6,985	6,253	5,634

Non-Interest Income:
Gain(loss) on sale of OREO, net	2	(61)	-
Gain(loss) on sale of other assets, net	(1)	1	(9)
Deposit account service charge income	117	134	88
Bank Owned Life Insurance Income	86	-	-
Other non-interest income	204	213	200
Total Non-Interest Income	408	287	279

Non-Interest Expense:
Salaries and employee benefits	2,741	2,671	2,635
Occupancy	651	631	604
Data processing and software	539	485	421
Insurance	41	39	38
Legal and professional	190	158	146
Advertising and marketing	34	40	75
FDIC deposit assessment	85	72	80
Office supplies	35	34	38
Other operating expenses	334	385	408
Total Non-Interest Expense	4,650	4,515	4,445

Net Income before Prov for Income Tax Exp	2,743	2,025	1,468

Provision for income tax expense	1,099	870	618

Net Income	$ 1,644	$ 1,155	$ 850

Basic earnings per share	$ 1.39	$ 1.00	$ 0.75
Average shares outstanding	1,184,667	1,158,833	1,131,700