Founders Community Bank Announces Third Quarter Results

News provided by

Founders Community Bank

Oct 14, 2014, 05:43 ET

SAN LUIS OBISPO, Calif., Oct. 14, 2014 /PRNewswire/ -- Founders Community Bank, a wholly-owned subsidiary of Founders Bancorp (OTCBB:FBCP), today reported financial results for the three and nine months ended September 30, 2014. 

"The Board of Directors and the management team of Founders Community Bank are pleased to report another profitable quarter in 2014.  We continue to achieve our institutional goals by focusing on the basic fundamentals of revenue enhancement, expense reduction, and the realization of operational efficiencies," said President and Chief Executive Officer Thomas Sherman. 

"At September 30, 2014, our total loans were $105.5 million, but more importantly, I'm pleased to report that we finished the quarter with no loans past due, no loans on non-accrual, and no Other Real Estate Owned," commented Sherman.

Third Quarter and Year-to-Date 2014 Highlights
(at or for the quarter ended September 30, 2014, compared to September 30, 2013 unless otherwise noted)

  • Quarterly net income in the third quarter 2014 was $418 thousand compared to $329 thousand for the three-months ending September 30, 2013.  This represents a 27.1 percent increase over the same quarter in 2013.
  • Total assets grew to $169 million, an increase of $12 million or 7.7 percent from September 30, 2013.
  • Total gross loans grew to $105.5 million, an increase of $4 million from September 30, 2013.  Overall credit quality remained strong at September 30, 2014, with no loans over 30 days past due, no loans on non-accrual, and no Other Real Estate Owned (OREO).  In addition, the Bank has no impaired loans as defined by the Financial Accounting Standards Board.
  • Total deposits grew to $152.7 million, an increase of $12.4 or 8.9 percent from September 30, 2013.
  • Noninterest bearing deposits increased to $68 million, an increase of $9.7 million from September 30, 2013. 
  • Non-Interest Income for the quarter ending September 30, 2014 was $118 thousand as compared to $97 thousand for the three months ending September 30, 2013.  The addition of a $4 million investment in Bank Owned Life Insurance ("BOLI") during the third quarter of 2014 contributed to the increase in the current period non-interest income.
  • Cost of deposits remained the same at 0.18 percent for the quarter ending September 30, 2014 as compared to the quarter ending September 30, 2013.  Also, interest expense decreased to $66 thousand for the three months ending September 30, 2014 versus $69 thousand for the three month ending September 30, 2013. 

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 –

Certain of the statements contained herein that are not historical facts are "forward-looking statements" within the meaning of and subject to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995.  Such forward-looking statements may contain words or phrases including, but not limited, to: "believe," "expect," "anticipate," "intend," "estimate," "target," "plans," "may increase," "may fluctuate," "may result in," "are projected," and variations of those words and similar expressions.  All such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those projected.  Factors that might cause such a difference include, among other matters, changes in interest rates; economic conditions including inflation and real estate values in California and the Bank's market areas; governmental regulation and legislation; credit quality; competition affecting the Bank's businesses generally; the risk of natural disasters and future catastrophic events including terrorist related incidents and other factors beyond the Bank's control; and other factors.  The Bank does not undertake, and specifically disclaims any obligation, to update or revise any forward-looking statements, whether to reflect new information, future events, or otherwise, except as required by law.

Press Release Contact: Cindy Magliari, SVP/CFO
Phone: 805.547.2517

FOUNDERS COMMUNITY BANK

BALANCE SHEET - Unaudited

(Dollar in thousands)





Sep

Dec

Sep

2014

2013

2013

Assets:




Cash and due from banks

$      2,602

$      2,821

$      3,885

Interest earning deposits due from banks

13,474

4,554

18,488




Total Cash and Cash Equivalents

16,076

7,375

22,373




Certificates of deposit in financial institutions

31,570

26,107

22,292

Investment securities

9,661

10,683

8,340

Fed Funds Sold

224

18

96




Loans net of unearned income

105,546

113,395

101,363

Allowance for loan losses

1,702

1,749

1,640

Net loans

103,844

111,646

99,723




Premises and equipment, net

1,453

1,567

1,605

Deferred tax assets

824

809

802

Other real estate owned

-

326

600

Bank Owned Life Insurance

4,050

-

-

Accrued interest receivable and other assets

1,275

1,116

1,094




Total Assets

$  168,977

$  159,647

$  156,925




Liabilities:




Non-interest-bearing demand deposits

$    67,967

$    59,502

$    58,245

Savings and NOW deposits

29,216

28,335

26,030

Money market deposits

29,898

28,849

29,173

Certificates of deposit

25,638

26,986

26,848

Total Interest Bearing Deposits

84,752

84,170

82,051

Total Deposits

152,719

143,672

140,296




Accrued interest payable and other liabilities

170

121

199

Total Liabilities

152,889

143,793

140,495




Shareholders' Equity




Preferred stock and related surplus - SBLF

1,850

2,950

3,760

Common Stock

11,164

11,164

11,164

Additional paid in capital

771

739

728

Dividends paid - SBLF

(25)

(146)

(137)

Prior year accumulated income 

1,149

140

140

Current year-to-date income

1,211

1,155

827

Accumulated other comprehensive income (loss)

(32)

(148)

(52)

Total Shareholders' Equity

16,088

15,854

16,430




Total Liabilities & Shareholders' Equity

$  168,977

$  159,647

$  156,925

FOUNDERS COMMUNITY BANK

STATEMENTS OF INCOME - Unaudited

For the Nine Months Ended

(Dollar in thousands except per share data)

9 Months Ended

Sep

Sep

2014

2013

Interest Income:

Interest and fees on loans

$        5,157

$        4,622

Interest on investment securities

110

16

Interest on due from banks

227

167

Total Interest Income

5,494

4,805

Interest Expense:

Interest on savings and NOW deposits

19

13

Interest on money market deposits

70

63

Interest on certificates of deposit

109

127

Total Interest Expense

198

203

Net Interest Income

5,296

4,602

Provision for loan losses

58

(40)

Net Interest Income After Loan Loss Prov

5,238

4,642

Non-Interest Income:

Gain(loss) on sale of OREO, net

2

(41)

Gain(loss) on sale of other assets, net

(1)

1

Deposit account service charge income

90

100

Bank Owned Life Insurance Income

50

-

Other non-interest income

153

167

Total Non-Interest Income

294

227

Non-Interest Expense:

Salaries and employee benefits

2,063

2,027

Occupancy

487

471

Data processing and software

403

362

Insurance

29

29

Legal and professional

125

119

Advertising and marketing

26

30

FDIC deposit assessment

63

60

Office supplies

24

26

Other operating expenses

261

301

Total Non-Interest Expense

3,481

3,425

Net Income before Prov for Income Tax Exp

2,051

1,444

Provision for income tax expense

840

617

Net Income

$        1,211

$           827

Basic earnings per share

$          1.04

$          0.73

Average shares outstanding

1,159,833

1,132,500

FOUNDERS COMMUNITY BANK

STATEMENTS OF INCOME - Unaudited

For the Three Months Ended

(Dollar in thousands except per share data)








3 Months Ended

3 Months Ended

3 Months Ended

Sep

Sep

Jun

Jun

Mar

Mar

2014

2013

2014

2013

2014

2013

Interest Income:







Interest and fees on loans

$        1,690

$        1,585

$        1,719

$        1,517

$        1,748

$        1,520

Interest on investment securities

31

8

38

4

41

4

Interest on due from banks

88

66

70

55

69

46

Total Interest Income

1,809

1,659

1,827

1,576

1,858

1,570







Interest Expense:







Interest on savings and NOW deposits

6

5

6

4

7

4

Interest on money market deposits

25

23

23

22

22

18

Interest on certificates of deposit

35

41

37

43

37

43

Total Interest Expense

66

69

66

69

66

65







Net Interest Income

1,743

1,590

1,761

1,507

1,792

1,505







Provision for loan losses

2

1

-

(2)

56

(39)







Net Interest Income After Loan Loss Prov

1,741

1,589

1,761

1,509

1,736

1,544

Non-Interest Income:







Gain(loss) on sale of OREO, net

2

-

-

-

-

(41)

Gain(loss) on sale of other assets, net

(1)

1

-

-

-

-

Deposit account service charge income

28

33

29

31

33

36

Bank Owned Life Insurance income

36

-

14

-

-

-

Other non-interest income

53

63

52

47

48

57

Total Non-Interest Income

118

97

95

78

81

52







Non-Interest Expense:







Salaries and employee benefits

694

651

680

637

689

739

Occupancy and Equipment

164

158

163

159

160

154

Data processing and software

132

131

174

113

97

118

Insurance

10

10

9

9

10

10

Legal and professional

42

39

43

78

40

2

Advertising and marketing

10

7

9

14

7

9

FDIC deposit assessment

20

21

19

20

24

19

Office supplies

8

7

7

9

9

10

Other operating expenses

83

97

52

65

126

139

Total Non-Interest Expense

1,163

1,121

1,156

1,104

1,162

1,200







Net Income before Prov for Income Tax Exp

696

565

700

483

655

396







Provision for income tax expense

278

236

288

201

274

180







Net Income

$           418

$           329

$           412

$           282

$           381

$           216







Basic earnings per share

$          0.36

$          0.29

$          0.36

$          0.25

$          0.33

$          0.19

Average shares outstanding

1,159,833

1,132,500

1,159,833

1,132,500

1,159,833

1,131,700

SOURCE Founders Community Bank