Founders Community Bank Announces Third Quarter Results

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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