Fnb Financial Services (NASDAQ:FNBF)
Historical Stock Chart
From Sep 2019 to Sep 2024
FNB Financial Services Corporation (NASDAQ:FNBF) (“FNB”),
parent of FNB Southeast, today reported first quarter 2007 net income of
$697,000, compared to $2.38 million for the same period a year ago. On a
per diluted share basis, FNB earned $0.10 and $0.33 in the quarters
ended March 31, 2007 and 2006, respectively.
“While we are dissatisfied with our earnings
performance during the first quarter, we are committed to completing the
resolution of our asset quality issues. In February we announced the
termination of the memorandum of understanding that was entered into
with our banking regulators during the first quarter of 2006. Although
our systems for identifying risk in the loan portfolio have improved,
the level of problem credits remains high and we are still distracted
from quality loan growth as we deal with the management of nonperforming
loans, credit quality downgrades and chargeoffs. Our goal is to improve
in these areas prior to the merger of equals with LSB Bancshares, Inc.,
which is expected to occur in the third quarter of 2007, so the
resulting company will not be burdened with significant ongoing credit
quality issues,” stated Pressley A. Ridgill,
President and Chief Executive Officer.
Net interest income totaled $7.62 million in the first quarter of 2007,
a decrease of $2.48 million or 24.6%, compared to $10.10 million in
2006. Noninterest income was $1.29 million in the first quarter of 2007,
compared to $1.33 million in the first quarter of 2006. Noninterest
expense for the quarters ended March 31, 2007 and 2006 was $7.85 million
and $7.06 million, respectively, an 11.2% increase.
Assets at March 31, 2007 totaled $997.2 million, a decrease of $22.7
million, or 2.2%, over one year earlier. Outstanding loans declined
$67.0 million during the past four quarters, from $754.9 million at
March 31, 2006 to $687.9 million at the end of the first quarter 2007,
an 8.9% decrease. As a result, earning assets were $919.2 million at
March 31, 2007, compared to $965.0 million a year ago, a $45.8 million
decrease.
Net credit losses for the first quarter of 2007 amounted to $609,000, or
0.35% of average outstanding loans on an annualized basis, compared to
$1.2 million, or 0.65%, for the same period a year ago. FNB recorded
provisions for credit losses of $54,000 and $755,000 for the quarters
ended March 31, 2007 and 2006, respectively. The quarterend allowance
for credit losses to outstanding loans was 1.84% for 2007 and 2.47% for
2006. During the first quarter of 2007, FNB continued to be negatively
impacted by a high level of nonperforming loans, downgrades of loans in
the portfolio, and chargeoffs. At March 31, 2007, nonperforming loans
totaled $14.8 million, an increase of $5.5 million, compared to $9.3
million at March 31, 2006.
During the past year, deposits decreased $35.3 million, or 4.2%, to
$801.1 million at March 31, 2007. The net yield on earning assets for
the first quarter of 2007 was 3.50%, compared to 4.28% for the year ago
quarter. Shareholders’ equity was $73.1
million at March 31, 2007, compared to $69.0 million a year ago.
FNB Financial Services Corporation is a bank holding company with one
bank subsidiary, FNB Southeast; a North Carolina chartered commercial
bank. FNB Southeast currently operates 17 banking offices located in
North Carolina and Virginia. FNB Southeast Mortgage Corporation and FNB
Southeast Investment Services, Inc. are operating subsidiaries of FNB
Southeast.
Forward Looking Statements
This news release may contain forward looking statements with respect to
the financial conditions and results of operations of FNB Financial
Services Corporation (“FNB”).
These forward-looking statements involve risks and uncertainties and are
based on the beliefs and assumptions of management of FNB and on the
information available to management at the time that these disclosures
were prepared. These statements can be identified by the use of words
like “expect,” “anticipate,”
“estimate” and “believe,”
variations of these words and other similar expressions. Readers should
not place undue reliance on forward-looking statements as a number of
important factors could cause actual results to differ materially from
those in the forward-looking statements. Factors that may cause actual
results to differ materially from those contemplated by such forward
looking statements include, among others, the following possibilities:
(1) projected results in connection with the implementation of our
business plan are lower than expected; (2) competitive pressure among
financial services companies increases significantly; (3) costs or
difficulties related to the integration of acquisitions or expenses
in general are greater than expected; (4) general economic conditions,
in the markets in which FNB does business, are less favorable than
expected; (5) risks inherent in making loans, including repayment risks
and risks associated with collateral values, are greater than expected;
(6) changes in the interest rate environment reduce interest margins and
affect funding sources; (7) changes in market rates and prices may
adversely affect the value of financial products; (8) legislation or
regulatory requirements or changes thereto adversely affect the
businesses in which FNB is engaged; (9) regulatory compliance cost
increases are greater than expected; and (10) decisions to change the
business mix of FNB. For further information and other factors
which could affect the accuracy of forward looking statements, please
see FNB’s reports filed with the Securities
and Exchange Commission (“SEC”)
pursuant to the Securities Exchange Act of 1934 which are available at
the SEC’s website (www.sec.gov)
or at FNB’s website (www.fnbsoutheast.com).
Readers are cautioned not to place undue reliance on these forward
looking statements, which reflect management’s
judgments only as of the date hereof. FNB undertakes no
obligation to publicly revise those forward looking statements to
reflect events and circumstances that arise after the date hereof.
FINANCIAL SUMMARY
First
Quarter
2007
2006
2006
2007-2006
First
Fourth
Third
Second
First
Percent
Quarter
Quarter
Quarter
Quarter
Quarter
Variance
Average Balances
(Dollars in thousands)
Assets
$ 1,002,969
$ 1,003,156
$ 1,031,364
$ 1,022,267
$ 1,015,797
(1.3)%
Loans
689,463
714,082
736,365
759,948
760,026
(9.3)
Investment securities
221,597
218,452
212,884
209,041
204,468
8.4
Earning assets
920,531
943,324
976,797
977,031
974,586
(5.5)
Noninterest-bearing deposits
80,555
85,571
86,741
89,311
87,174
(7.6)
Interest-bearing deposits
719,781
729,513
755,221
734,631
741,104
(2.9)
Interest-bearing liabilities
830,678
827,387
859,476
853,536
850,713
(2.4)
Shareholders' equity
71,965
73,092
70,573
68,897
68,203
5.5
Period-End Balances
(Dollars in thousands)
Assets
$ 997,156
$ 1,010,773
$ 1,013,671.0
$ 1,027,827
$ 1,019,878
(2.2)%
Loans
687,879
707,146
722,494
750,725
754,921
(8.9)
Investment securities
228,370
217,127
218,641
211,871
203,824
12.0
Earning assets
919,232
927,281
954,471
968,126
965,004
(4.7)
Noninterest-bearing deposits
85,447
87,047
89,204
90,116
89,996
(5.1)
Interest-bearing deposits
715,691
731,521
744,924
756,668
746,422
(4.1)
Interest-bearing liabilities
828,011
838,679
840,403
864,769
855,611
(3.2)
Shareholders' equity
73,051
72,693
73,153
69,363
68,986
5.9
Asset Quality Data
(Dollars in thousands)
Nonperforming loans
$ 14,835
$ 13,521
$ 15,287
$ 14,869
$ 9,346.0
Other nonperforming assets
741
889
1,786
1,609
1,527
Net credit losses
609
2,776
2,583
791
1,232
Allowance for credit losses
12,640
13,195
15,656
18,239
18,665
Nonperforming loans to outstanding loans
2.16%
1.91%
2.12%
1.98%
1.24%
Annualized net credit losses to average loans
0.35
1.56
1.40
0.42
0.65
Allowance for credit losses to outstanding loans
1.84
1.87
2.17
2.43
2.47
Allowance for credit losses to nonperforming loans
85.20
X
97.59
X
102.41
X
122.66
X
199.71
X
FINANCIAL SUMMARY
First
Quarter
2007
2006
2007-2006
First
Fourth
Third
Second
First
Percent
Quarter
Quarter
Quarter
Quarter
Quarter
Variance
Income Statement Data
(Dollars in thousands, except share data)
Interest income:
Loans
$
14,411
$
16,055
$
15,972
$
15,814
$
15,757
(8.5)%
Other
2,448
2,401
2,600
2,204
2,131
14.9
Total interest income
16,859
18,456
18,572
18,018
17,888
(5.8)
Interest expense
9,240
9,092
9,185
8,479
7,786
18.7
Net interest income
7,619
9,364
9,387
9,539
10,102
(24.6)
Provision for credit losses
54
315
0
365
755
(92.8)
Net interest income after
provision for credit losses
7,565
9,049
9,387
9,174
9,347
(19.1)
Noninterest income
1,288
1,459
1,406
1,311
1,332
(3.3)
Noninterest expense
7,850
7,699
7,305
6,846
7,057
11.2
Income before income tax expense
1,003
2,809
3,488
3,639
3,622
(72.3)
Income tax expense
306
789
1,163
1,249
1,244
(75.4)
Net income
$
697
$
2,020
$
2,325
$
2,390
$
2,378
(70.7)
Net income per share:
Basic
$
0.10
$
0.29
$
0.33
$
0.34
$
0.34
(70.6)%
Diluted
$
0.10
$
0.28
$
0.32
$
0.33
$
0.33
(69.7)%
Cash dividends per share
$
0.13
$
0.13
$
0.12
$
0.12
$
0.12
8.3%
Other Data
Return on average assets
0.28%
0.80%
0.89%
0.94%
0.95%
Return on average equity
3.93
10.96
13.07
13.91
14.14
Net yield on earning assets/a
3.50
4.05
3.91
4.00
4.28
Efficiency
84.84
69.06
66.21
61.87
60.70
Equity to assets
7.18
7.29
6.84
6.74
6.71
Loans to assets
68.74
71.18
71.40
74.34
74.82
Loans to deposits
86.15
87.61
87.46
92.23
91.76
Noninterest - bearing deposits
to total deposits
10.07
10.50
10.30
10.84
10.52
/a: Fully taxable equivalent basis
COMMON STOCK DATA
2007
2006
First
Fourth
Third
Second
First
Quarter
Quarter
Quarter
Quarter
Quarter
Market value:
End of period
$ 15.33
$ 14.82
$ 14.75
$ 15.16
$ 16.05
High
16.00
15.68
15.50
15.67
16.46
Low
14.40
14.56
13.04
14.70
14.00
Book value
10.34
10.30
10.34
9.81
9.79
Dividend
0.13
0.13
0.12
0.12
0.12
Shares outstanding at period-end
7,063,952
7,060,241
7,077,691
7,048,976
7,045,335
Average shares outstanding
7,063,303
7,057,452
7,053,509
7,074,254
7,040,964
Shares traded
386,600
305,100
493,900
544,000
474,471