Fountain Powerboat Industries (FPB)

HAMMOND, LA -- (Marketwire) -- 01/25/12 -- FPB Financial Corp. (OTCQB: FPBF) (PINKSHEETS: FPBF), the holding company for Florida Parishes Bank, today announced financial results for the fourth quarter and year ended December 31, 2011.

Earnings

Net income available to common shareholders for the fourth quarter of 2011 decreased to $350,000; ($0.99 per fully diluted common share) as compared to the 2010 fourth quarter net income available to common shareholders of $523,000 ($1.43 per fully diluted common share.)

Net income available to common shareholders for 2011 totaled $1.8 million; ($5.08 per fully diluted common share) down 5.4% from the 2010 available net income of $1.9 million ($5.27 per fully diluted common share.)

Items contributing to the Company's fourth quarter earnings when compared to the 2010 period were; a decrease of $400,000 in total non-interest income (primarily from a $228,000 decline in gain on sale of investments and a $217,000 decrease in mortgage banking fees); a $201,000 increase in foreclosed assets expense; and a $145,000 reduction in provision for loan losses. Net interest income increased $219,000 when compared to the 2010 period.

Asset Quality

Non-performing assets on December 31, 2011 increased $224,000, or 8.0%, to $3.0 million when compared to December 31, 2010. Non-performing assets on September 30, 2011 were $3.1 million.

Net loan charge-offs for the fourth quarter totaled ($94,000), down $316,000 from the 2010 fourth quarter total. Net loan charge-offs in the 2011 third quarter were $86,000. For the 2011 twelve month period, net loan charge-offs decreased to $254,000 from $553,000 in 2010.

Performing Troubled Debt Restructured (TDR's) as of December 31 totaled $3.6 million, or an increase of $374,000 from December 31, 2010. Performing TDR's on September 30, 2011 totaled $3.8 million.

The Company recorded a provision for loan losses in the 2011 fourth quarter of $150,000, a 49.3% decrease from the 2010 period. Provisions for 2011 totaled $656,000, down from $995,000 recorded in 2010. The Company's allowance for loan losses was $3.0 million on December, 31, 2011, or 2.5% of average net loans and 100.9% of non-performing assets. The allowance on December 31, 2010 was $2.6 million.

Balance Sheet and Capital

Total Assets on December 31, 2011 increased to $174.7 million, or 0.6% from $173.7 million on December 31, 2010. Total Assets on September 30, 2011 were $171.0 million. Net loans increased 5.9% to $126.3 million for the year ending December 31, 2011. Available for sale investment securities increased during the 2011 twelve month period 28.2% to $25.7 million. Trading securities decreased from $14.2 million on December 31, 2010 to $243,000 on December 31, 2011. Non-interest bearing deposits and total non-maturity deposits both increased in 2011, 9.6% and 4.5% respectively.

Common Stockholders' equity increased by a net of $1.2 million, or 8.1% to $16.1 million for the twelve month period ending December 31, 2011, primarily due to an increase of $1.5 million in retained earnings. Common Stockholders' equity rate of increase was reduced by an increase of $556,000 in treasury stock. The increase in treasury stock was due to the company completing the termination of its Employee Stock Ownership Plan (ESOP) and distributing the ESOP account balances to the ESOP participants during the second quarter of 2011.

Our subsidiary, Florida Parishes Bank, is considered "well capitalized" by all applicable federal banking regulations and definitions as of December 31, 2011.

FPB Financial Corp. reported the following for the period ending December 31, 2011, and as compared to December 31, 2010:

• Total Assets increased to $174.9 million, or 0.6%

• Net interest margin increased to 5.12%

• Non-Interest Bearing deposits increased to $22.8 million, or 9.6%

• Non-maturity Deposits increased $3.8 million, or 4.5%

• Dividends paid to common shareholders increased to $286,000, or 1.0%

• Common Stockholders' equity increased $1.2 million, or 8.1%

• Common Book Value per share increased to $45.89, or 11.6%

• Net loan charge-offs decreased $299,000, or 54.0%

• Foreclosed Assets decreased $393,000, or 25.7%

• Allowance for Loan Losses increased to $3.0 million, or 15.4%

FPB Financial Corp. is headquartered in Hammond, LA and is the parent company of Florida Parishes Bank. The Company's common stock is traded under the "FPBF" symbol.

This news release contains certain forward-looking statements, including statements about the financial condition, results of operations and earnings outlook for FPB Financial Corp. and its subsidiaries. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "believe," "expect," "anticipate," "estimate" and "intend" or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors, many of which are beyond the Company's control, could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. These factors include, among others, the following: general economic conditions, changes in interest rates, deposit flows, the cost of funds, changes in credit quality, interest rate risks associated with the Company's business and operations and the adequacy of our allowance for loan losses. Other factors include changes in our loan portfolio, changes in competition, fiscal and monetary policies and legislation and regulatory changes. We undertake no obligation to update any forward-looking statements.

                            FPB Financial Corp.

Selected          Dec. 31,      Dec. 31,   % Change    Sept. 30,   % Change
 Balances           2011          2010                   2011
--------------- ------------  ------------ --------  ------------  --------
                  (Unaudited)                          (Unaudited)

Cash and
 Interest
 Earning
 Deposits       $ 11,934,953  $  9,240,645       29  $ 12,306,319        (3)

Net Loans        126,309,459   119,226,316        6   121,970,199         4

Foreclosed
 Assets            1,133,388     1,526,432      (26)      793,336        43

Non-Performing
 Assets
 (includes
 Foreclosed
 Assets)           3,007,078     2,782,561        8     3,082,869        (2)

Allowance for
 Loan Losses       3,033,282     2,574,346       18     2,789,714         9

Total Assets     174,719,552   173,719,654        1   170,985,880         2

Non-Interest
 Bearing
 Deposits         22,774,022    20,829,844        9    22,815,069         0

Interest-
 Bearing
 Deposits        106,561,531   109,378,780       (3)  104,465,550         2

Non-Maturity
 Deposits
 (Included in
 interest and
 non-interest
 bearing
 deposits)        88,806,587    84,975,598        5    88,472,290         0

Brokered
 Deposits
 (Included in
 interest-
 bearing
 deposits)         7,116,816     7,500,064       (5)    7,083,907         0

FHLB Advances     25,361,627    24,752,506        2    23,768,479         7

Subordinated
 Debentures/Tru
 st Preferred
 Securities        3,093,000     3,093,000        0     3,093,000         0

Tangible Common
 Stockholders'
 Equity           15,918,488    14,882,061        7    15,644,775         2

Total Common
 Stockholders'
 Equity           16,132,126    14,947,648        8    15,963,597         1

                    CONSOLIDATED STATEMENTS OF EARNINGS

                     For the Three Months            For the Twelve Months
                             Ended                           Ended
               Dec 31,      Sept 30,     Dec 31,     Dec 31,      Dec 31,
                 2011         2011        2010         2011         2010
              (Unaudited)  (Unaudited)              (Unaudited)

INTEREST AND
 DIVIDED
 INCOME:

 Mortgage
  Loans      $ 2,061,602  $ 2,031,765  $2,065,824  $ 8,116,890  $ 8,398,969

 Consumer
  Loans          233,040      241,298     209,660      940,977      836,960

 Commercial
  Loans           71,999       68,250      69,584      271,623      264,862

 Consumer &
  Commercial
 Lines of
  Credit          42,284       43,638      36,435      168,541      150,240

 Investment
  Securities
  and
  Deposits       156,553      145,397     117,919      530,099      473,243

TOTAL
 INTEREST
 AND
 DIVIDEND
 INCOME        2,565,478    2,530,348   2,499,422   10,028,130   10,124,274
             -----------  -----------  ----------  -----------  -----------

INTEREST
 EXPENSE:

 Deposits        209,009      220,881     346,421      977,990    1,472,691

Federal Home
 Loan Bank
 Advances        148,226      146,402     164,658      604,567      738,460

Other             27,037       26,452      26,525      106,813      107,913

TOTAL
 INTEREST
 EXPENSE         384,272      393,735     537,604    1,689,370    2,319,064
             -----------  -----------  ----------  -----------  -----------

 NET
  INTEREST
  INCOME       2,181,206    2,136,613   1,961,818    8,338,760    7,805,210

Provisions
 for loan
 losses          149,639       45,000     295,000      656,468      995,000
             -----------  -----------  ----------  -----------  -----------

NET INTEREST
 INCOMEAFTER
 PROVISION
 FORLOAN
 LOSSES        2,031,567    2,091,613   1,666,818    7,682,292    6,810,210
             -----------  -----------  ----------  -----------  -----------

NON-INTEREST
 INCOME:

Service
 charges on
 deposits        216,907      223,392     225,137      793,912      940,398

Mortgage
 Banking
 Fees            177,813      223,089     394,581      731,222    1,226,345

Interchange
 Fees             97,637       98,959      85,723      373,392      317,454

Loan Fees
 and Charges      47,376       46,558      32,646      178,607      125,621

Gain/(Loss)
 on Sale of
 Investments
 /Foreclosed
 Assets           (4,296)       7,070     224,094        5,581      304,563

Gain/(Loss)
 on Trading
 Accounts         (5,814)     (62,850)    (23,637)     (93,076)      12,966

Other             26,406       26,573      17,182      117,615      125,566
             -----------  -----------  ----------  -----------  -----------

TOTAL NON-
 INTEREST
INCOME           556,029      562,791     955,726    2,107,253    3,052,913
             -----------  -----------  ----------  -----------  -----------

NON-INTEREST
 EXPENSE:

Compensation
 and
 Employee
 Benefits      1,029,837    1,010,805   1,036,301    3,895,947    3,797,817

Occupancy,
 Property
 Taxes, and
 Equipment       215,863      212,374     190,185      828,134      755,660

Technology
 and
 Information
 Processing      163,791      147,138     151,626      582,023      566,401

Regulatory
 Fees              2,726      101,795     123,272      327,101      387,001

Foreclosed
 Assets          260,854        2,124      60,287      283,318       73,701

Professional
 Fees             73,608       65,393      17,569      242,478      258,420

Other            337,426      233,091     274,701      954,000      998,785
             -----------  -----------  ----------  -----------  -----------

TOTAL NON-
 INTEREST
 EXPENSE       2,084,105    1,772,720   1,853,941    7,113,001    6,837,785
             -----------  -----------  ----------  -----------  -----------

INCOME
 BEFORE
 INCOME TAXES    503,491      881,684     768,603    2,676,544    3,025,338

Income Tax
 Expense         153,940      295,646     245,121      858,301      927,191
             -----------  -----------  ----------  -----------  -----------

NET INCOME       349,551      586,038     523,482    1,818,243    2,098,147

Dividends
 Paid to
 Preferred
 Shareholders          0            0           0            0       74,190

Accretion of
 Discount on
 Preferred
 Stock                 0            0           0            0      102,671
             -----------  -----------  ----------  -----------  -----------

Net Income
 Available
 to Common
Shareholders $   349,551  $   586,038  $  523,482  $ 1,818,243  $ 1,921,286
             ===========  ===========  ==========  ===========  ===========

PER COMMON
 SHARE DATA:
------------

Available
 Earnings    $      1.00  $      1.67  $     1.44  $      5.11  $      5.29

Diluted
 Available
 Earnings    $      0.99  $      1.66  $     1.43  $      5.08  $      5.27

Dividends
 Paid        $      0.36  $      0.15  $     0.36  $      0.81  $      0.78

Revenue (Net
 Interest
 Income and
 Non-
 Interest
 Income)     $      7.81  $      7.70  $     8.02  $     29.35  $     29.91

Book Value
 Period End  $     45.89  $     45.55  $    41.12  $     45.89  $     41.12

Tangible
 Book Value
 Period End  $     45.23  $     44.65  $    40.94  $     45.23  $     40.94

RATIOS:
------------

Net Income
 to Average
 Period
 Assets
(Annualized)        0.80%        1.35%       1.19%        1.04%        1.22%

Net Income
 to Average
 Period
 Total
 Stockholder's
 Equity
(Annualized)        8.66%       14.94%      13.94%       11.70%       13.58%

Net Interest
 Margin
 (Average)
 for the
 period             5.49%        5.36%       4.85%        5.12%        4.97%

Non-Interest
 Expense
 less Non-
 Interest
 Income to
 Average
 Period
 Total
 Assets
(Annualized)        3.50%        2.78%       2.04%        2.86%        2.21%

Efficiency
 Ratio for
 the Period        76.14%       65.67%      63.54%       68.09%       62.97%

Net Loan
 Charge-Offs
 for the
 Period      $   (93,929) $    85,881  $  221,713  $   254,132  $   552,663
 to Average
 Period Net
 Loans
 (Annualized)      (0.30)%        0.28%       0.71%        0.21%        0.43%

TDRs
 (Performing)
  at Period
  End        $ 3,632,371  $ 3,822,451  $3,257,876  $ 3,632,371  $ 3,257,876
 to Average
  Period Net
  Loans             2.94%        3.11%       2.62%        2.98%        2.52%

Non-
 Performing
 Assets at
 Period      $ 3,007,078  $ 3,082,869  $2,782,561  $ 3,007,078  $ 2,782,561
 End to
  Average
  Period
  Total
  Assets            1.74%        1.78%       1.59%        1.72%        1.62%

Allowance
 for Loan
 Losses at
 Period End  $ 3,033,282  $ 2,789,714  $2,574,346  $ 3,033,282  $ 2,574,346
 to Average
  Period Net
  Loans             2.46%        2.27%       2.07%        2.47%        2.00%
 to Non-
  Performing
  Assets at
  Period End      100.87%       96.02%      92.52%      100.87%       95.52%

                    CONSOLIDATED STATEMENTS OF CONDITION

               Dec 31, 2011     Dec 31,    % Change    Sept 30,    % Change
                                  2010                   2011
                 (Unaudited)                           (Unaudited)

ASSETS:
---------------

Cash and Cash
 Equivalents   $  4,848,445  $  3,747,116        29  $  4,682,734         4

Interest
 Earning
 Deposits         7,086,508     5,493,529        29     7,623,585        (7)

Securities-
 Available for
 Sale            25,735,921    20,067,250        28    25,027,946         3

Trading
 Securities         243,069    14,239,436       (98)    2,265,249       (89)

Net Loans       126,309,459   119,226,313         6   121,970,199         4

Accrued
 Interest
 Receivable         622,776       543,470        15       544,304        14

Premises and
 Equipment, Net   7,870,050     7,645,630         3     7,585,748         4

Foreclosed
 Assets           1,133,388     1,526,432       (26)      793,336        43

Other Assets        869,936     1,230,478       (29)      492,779        77
               ------------  ------------  --------  ------------  --------

TOTAL ASSETS   $174,719,552  $173,719,654         1  $170,985,880         2
               ============  ============  ========  ============  ========

LIABILITIES:
---------------

Deposits        129,335,553   130,208,376        (1)  127,280,619         2

Federal Home
 Loan Bank
 Advances        25,361,627    24,752,506         2    23,768,479         7

Subordinated
 debentures/tru
 st preferred
 securities       3,093,000     3,093,000         0     3,093,000         0

Other
 Liabilities        797,246       718,124        11       880,185        (9)
               ------------  ------------  --------  ------------  --------

TOTAL
 LIABILITIES   $158,587,426  $158,772,006         0  $155,022,283         2
               ============  ============  ========  ============  ========

STOCKHOLDERS'
 EQUITY:
---------------

Common Stock   $      4,431  $      4,285         3  $      4,289         3

Capital Surplus   6,274,941     6,258,067         0     6,264,367         0

Retained
 Earnings        11,424,558     9,892,611        15    11,201,594         2

Unearned
 Compensation       (19,974)      (45,581)       56       (42,007)       52

Treasury Stock   (1,783,468)   (1,227,321)      (45)   (1,783,468)        0

Other
 Comprehensive
 Income (Loss)      231,638        65,587       253       318,822       (27)
               ------------  ------------  --------  ------------  --------

Total
 Stockholders'
 Equity          16,132,126    14,947,648         8    15,963,597         1
               ------------  ------------  --------  ------------  --------

 TOTAL
  LIABILITIES
  AND
  STOCKHOLDERS'
  EQUITY       $174,719,552  $173,719,654         1% $170,985,880         2%
               ============  ============  ========  ============  ========

Fritz W. Anderson II, Chairman of the Board announced today that "On January 12, 2012, the Board of Directors of FPB Financial Corp. declared a cash dividend on the common stock of the company bearing Cusip #302549 10 0. The dividend rate increased to $0.16 per share and will be paid on March 26, 2012 to stockholders of record at the close of business on March 9, 2012."