I firmly believe that the success of any business is directly related to its people. TOMMY McCULLOCH Chairman, President & CEO

Transcription

1 2016 ANNUAL REPORT

2 I firmly believe that the success of any business is directly related to its people. TOMMY McCULLOCH Chairman, President & CEO

3 2016 ANNUAL REPORT Page 1 MESSAGE FROM THE PRESIDENT To Our Shareholders and Customers, It s hard to believe that YOUR bank opened its doors for business nearly fourteen years ago. We ve accomplished a lot during that time and we d like to share with you some of our more significant dates and events: September 9, 2003 Fidelity Bank opens in the Fidelity Bank building with ten employees and $8 million in capital. August 12, 2005 Burkburnett branch opens with seven employees. December 31, 2005 Total assets reach $99.5 million and capital is $8.2 million. June 14, 2006 A stock offering of $3 million is completed to support the bank s growth. September 26, 2006 Downtown branch opens with five employees. June 30, 2008 Total assets exceed $200 million and capital is $16.1 million. December 31, 2012 Total assets reach $257 million and capital is $25.2 million. January 1, 2014 The acquisition of First National Bank - Byers is consummated. December 31, 2014 Total assets reach $379 million and capital is $33 million. August 1, 2016 A stock buyback program was completed with the purchase of 34,283 shares of FB Bancshares, Inc. for $1,508, Completed renovations and leasing of the new Fidelity Drive-Thru building. The original bank drive-thru was closed and customers now use the modern seven-lane facility. The Wichita Falls Area Community Foundation and Prothro-Blair Investments occupy 89% of the building. December 31, 2016 Total assets are $473 million and capital exceeds $47 million. As I have said many times, I believe the success of our bank is directly related to the competency, attitude and work ethic of our staff, and our board of directors continues to support and encourage a culture of excellence and high performance. Net income for YOUR bank during 2013, 2014, 2015 and 2016 was $3 million, $4.3 million, $5.5 million and $6.8 million, respectively. When compared to our various peer groups, YOUR bank s Return on Average Assets (ROAA), Return on Average Equity and Efficiency are in the upper percentiles. Our focus now is on improving asset quality, as we are only average when compared to our peers. SNL Financial, the most recognized company for bank analytics in our industry, publishes rankings for various asset size categories. Their Best Performing Community Banks (under $1 billion in assets) of 2016 lists Fidelity Bank at #18. Sheshunoff & Co., a well-known financial investment advisor, publishes rankings of the top 50 Texas banks for ROAA. YOUR bank was ranked #24 in Texas in I could cite other examples, but suffice it to say that YOUR bank performs at a high level. In July 2016, our board of directors authorized an offer to purchase up to 45,000 shares of our stock at $44 per share. At that time our book value was $37.24 per share. None of our board members or bank officers sold stock. Twenty-five stockholders elected to sell all or a portion of their stock. With this offering, FB Bancshares purchased a total of 34,283 shares for $1,508,452. As of December 31, 2016 the book value had increased to $40.13 per share. Since December 2016, the Federal Reserve has increased interest rates.50%, and there is general consensus that we will likely see at least another.50% increase in the last nine months of Our balance sheet is positioned with interest sensitive assets to benefit from an increase in rates. As YOUR bank continues to grow, we remain mindful of our constituencies: our Customers, our Stockholders, our Employees and our Communities. These constituencies are not listed in rank order as they are of equal importance to us. By doing what is right for each group, we believe shareholder value will continue to increase. As I have mentioned in previous communications, there is no better way to grow our business than for you, our stockholders and customers, to refer business to YOUR bank. I guarantee we will respond promptly to all leads you provide us. Thank you for your past and future support.

4 Page ANNUAL REPORT FB Bancshares, Inc. and Subsidiary CONSOLIDATED BALANCE SHEETS December 31, 2016 and 2015 (In Thousands) ASSETS Cash and cash equivalents $ 36,299 $ 36,704 Securities available for sale 12,326 11,399 Mortgage loans held for sale Loans held for investment 398, ,333 Bank premises and equipment 5,755 4,843 Other real estate owned Cash surrender value of life insurance 9,185 8,910 Core deposit intangible 1,233 1,410 Goodwill 1,277 1,277 Other assets 8,241 4,734 $ 473,458 $ 395,283 LIABILITIES AND STOCKHOLDERS EQUITY Deposits: Noninterest bearing Interest bearing Total deposits Other borrowings Other liabilities Commitments and contingencies Stockholders equity: Common stock, $5 par value, 4,000,000 shares authorized, 1,161,525 and 1,156,525 shares issued, and 1,126,892 and 1,143,856 shares outstanding at December 31, 2016 and 2015, respectively Paid-in capital Retained earnings Accumulated other comprehensive (loss) income, net of tax of $36 for 2016 and ($14) for 2015 Treasury stock, at cost Total stockholders equity $ 139,027 $ 207, ,346 79,000 2,886-5,807 7,960 32,861 (69) 46,559 (1,333) 45, , , ,644 5,000 2,175-5,782 7,823 26, ,763 (299) 39,464 $ 473,458 $ 395,283

5 2016 ANNUAL REPORT Page 3 FB Bancshares, Inc. and Subsidiary CONSOLIDATED STATEMENT OF INCOME For the Years Ended December 31, 2016 and 2015 (In Thousands) Interest income: Interest and fees on loans Interest and dividends on securities Interest on interest bearing deposits Total interest income Interest expense: Interest on deposit accounts Other $ 20, , $ 16, , Total interest expense 1, Net interest income 19,821 16,683 Provision for loan losses Net interest income after provision for loan losses 18,981 15,843 Noninterest income: Service charges on deposit accounts Gain on sales of mortgage loans Gain on sales of other real estate owned Other Total noninterest income , ,988 Noninterest expense: Salaries and employee benefits Occupancy, furniture and equipment Data processing Other 6, ,259 6, ,921 Total noninterest expense 10,626 9,880 Income before income tax expense 10,011 7,951 Income tax expense 3,282 2,513 Net income $ 6,729 $ 5,438

6 2016 ANNUAL REPORT Fidelity Bank YEAR-END COMPARISONS Net Income ($000 s) Total Deposits ($000 s) 2,999 3,061 4,135 5,438 6, , , , , , Return on Equity* Total Assets ($000 s) 12.60% 12.05% 11.32% 13.50% 14.72% 257, , , , ,

7 2016 ANNUAL REPORT Page 5 Tangible Equity Capital ($000 s) Return on Average Assets* 25,227 25,975 30,451 36,777 42, Efficiency Ratio* Loans (net) ($000 s) 54.07% 52.92% 58.34% 52.02% 48.82% , , , , , *Fidelity Bank, from the Uniform Bank Performance Report All Other information from FB Bancshares Consolidated Financials

8 Page ANNUAL REPORT EXECUTIVE OFFICERS Tommy McCulloch President & CEO Brent Hillery Executive Vice President Elaine McKinney Chief Financial Officer & Cashier BURKBURNETT LENDING Hollie Easter, Ryan Heptner, Tracey McNeal, Danny Cremeens

9 2016 ANNUAL REPORT Page 7 BOARD OF DIRECTORS From left: Stephen Gustafson, Wholesale Distribution Richard Bundy, Architect Randy Aaron, Banking Jeff Dillard, Energy/Investments Warren Ayres, Energy/Investments Dennis Cannedy, CPA Tommy McCulloch, Banking Pat Bolin, Energy/Investments Caven Crosnoe, Attorney Brent Hillery, Banking BURKBURNETT PERSONAL BANKERS AND TELLERS Left to right: Amy Smith Debbie Wineinger Courtney Baggett Dana Brixey Miki McMillan Harley Moore

10 Page ANNUAL REPORT BYERS Left to right: Shannon Fleming, Kayla Copeland, Donna James, Joe Davidson, Ruth Ann Nichols, Denny Love CATTLEMAN S LENDING Left to right: Jerry Thomas Tacy Lyde Ricky Thomas Bill Crutcher Kari Davis

11 2016 ANNUAL REPORT Page 9 CATTLEMAN S PERSONAL BANKERS AND TELLERS Back Row left to right: Danita Potter, Debbie Semtner, Judy Trietsch, Karen Richardson Front: Laura Barnett, Val McClain, Mackenzie Morton DOWNTOWN Left to right: Douglas James Ingrid Carey Maggie Teague Patsy Betts Linda Holbrook

12 Page ANNUAL REPORT HENRIETTA Standing left to right: Mark Hill Peyton Duncan Kristen Duncan Steve Powell Seated: Amy Ellis Melissa Roberson KELL LENDING Left to right: Megan Allison Jay Wall Heather Brown Susan Veigl Lance Cannedy Marilyn Humpert

13 2016 ANNUAL REPORT Page 11 KELL LENDING Left to right: Michelle McDonald, Perry Curry, Debbie Watts, Lyndsay Moss, Nathan DuBose, Samantha Trejo KELL OPERATIONS AND PERSONAL BANKERS Seated left to right: Elaine Martin, Jo Fox, Terri Martinez, Shannon Killingsworth Standing left to right: Tracy Maloney, Jackie Franklin, Alex Franco, Kristin Gonzales, Toby McClain, Brandy Beasley (not pictured: Jamie Wade, Cheryl Allen)

14 Page ANNUAL REPORT KELL TELLERS Back Row left to right: Kim Weatherred, Shelly Gray, Daniel Olivio, LaRenda Haggard, Annabel Espinosa Front: Alexis Holley, Delanie Hinnant (not Pictured: Debbie Bryan, Madison Parker) OFFICERS WICHITA FALLS KELL Tommy McCulloch, Chairman, President & CEO Brent Hillery, Executive Vice President Elaine McKinney, Chief Financial Officer & Cashier Perry Curry, Senior Vice President Jay Wall, Senior Vice President Lance Cannedy, Vice President Jo Fox, Vice President Marilyn Humpert, Vice President Shannon Killingsworth, Vice President Terri Martinez, Vice President Jamie Wade, Vice President Susan Veigl, Mortgage Banking Officer Kristin Gonzales, Banking Officer Lyndsay Moss, Banking Officer WICHITA FALLS DOWNTOWN Douglas James, Branch President Linda Holbrook, Vice President & Manager Patsy Betts, Assistant Vice President BURKBURNETT Danny Cremeens, Branch President Ryan Heptner, Assistant Vice President BYERS Joe Davidson, Branch President HENRIETTA Melissa Roberson, Branch President Steve Powell, Banking Officer WICHITA FALLS CATTLEMAN S Bill Crutcher, Branch President Jerry Thomas, Vice President Ricky Taylor, Assistant Vice President

15 2016 ANNUAL REPORT WICHITA FALLS LOCATIONS KELL 2525 Kell Blvd., Suite 100 Wichita Falls, Texas / Lobby 9 am to 4 pm, Monday through Friday Drive-Thru 2405 Kell Blvd. 8 am to 6 pm, Monday through Friday Open Saturday, 8 am to noon ATM on premises CATTLEMAN S 900 Midwestern Parkway Wichita Falls, Texas / Lobby 9 am to 4 pm, Monday through Friday Drive-Thru 8 am to 6 pm, Monday through Friday ATM on premises DOWNTOWN 909 8th Street, Suite 101 Wichita Falls, Texas / Lobby 9 am to 4 pm, Monday through Friday Drive-Thru 8 am to 5 pm, Monday through Friday OTHER LOCATIONS BURKBURNETT 301 South Avenue D Burkburnett, Texas / Lobby 9 am to 4 pm, Monday through Friday Drive-Thru 8 am to 6 pm, Monday through Friday Opened Saturday, 8 am to noon ATM on premises BYERS 505 Main Street Byers, Texas / Lobby 9 am to 4 pm, Monday through Friday Drive-Thru 9 am to 4 pm, Monday through Thursday 9 am to 6 pm, Friday ATM on premises HENRIETTA 202 West Wichita Henrietta, Texas / Lobby 9 am to 4 pm, Monday through Friday Drive-Thru 8:30 am to 5:30 pm, Monday through Friday ATM on premises

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