VALDOSTA, Ga., July 25, 2003 (PRIMEZONE) -- PAB Bankshares, Inc. (AMEX:PAB), the holding company for The Park Avenue Bank of Valdosta, Georgia, announced preliminary earnings for the second quarter of 2003. The Company reported net income of $1.73 million, or $.18 per diluted share, for the quarter, a slight increase over the net income of $1.70 million, or $.18 per diluted share, earned during the second quarter of 2002. "The flat earnings growth is directly attributable to the decrease in our loan portfolio. Over the past eighteen months we have had to focus our resources on addressing regulatory and administrative matters. This has taken a toll on our efforts for new loan production, and this absence of loan production has had and will continue to have an impact on our ability to grow earnings," stated Michael E. Ricketson, President and Chief Executive Officer. "We are, however, optimistic about our future. Our balance sheet is strong, we are addressing our asset quality concerns, and we now have the pieces in place to grow our company. It will just take more time than we had originally estimated. The slow economy and the limited growth opportunities in our south Georgia markets are other factors that we are facing. Our future success depends on our ability to maintain good asset quality and expand our presence in growth markets as the opportunities arise," Ricketson added.
For the second quarter of 2003, return on assets was .95% and return on equity was 9.36% compared to .88% and 10.24%, respectively, one year ago. Net interest margin was 4.13% during the quarter compared to 3.89% for the same period last year.
For the year to date, net income was $3.56 million, or $.37 per diluted share, a 3% increase compared to $3.44 million, or $.36 per diluted share, earned in the same period of 2002. Return on assets for the six-month period was .98% and return on equity was 9.78% compared to .86% and 10.45%, respectively, reported for the same period one year ago. Net interest margin was 4.14% for the year to date compared to 3.77% for the same period last year.
At June 30, 2003, the Company's assets totaled $748.0 million. The Company also reported total loans of $529.2 million and total deposits of $573.2 million at quarter end. Total loans and deposits have decreased 4.7% and 5.5%, respectively, since the beginning of the year.
The allowance for loan losses was $10.7 million, or 2.03% of total loans, at June 30, 2003 compared to $12.1 million, or 2.18% of total loans, at December 31, 2002. The Company reported total nonperforming loans of $9.8 million, or 1.86% of total loans at quarter end compared to $10.4 million, or 1.87% of total loans at year end. Net charge-offs amounted to an annualized .50% of average total loans for the year to date compared to 1.06% for the year in 2002.
The Company operates 17 banking offices in Georgia and Florida. The Company's common stock is traded on the American Stock Exchange under the symbol "PAB". More information on the Company and the products and services available through its subsidiary bank is available on the Internet at www.pabbankshares.com.
Certain matters set forth in this news release are forward-looking statements, including statements regarding the Company's future performance, earnings, growth and expansion in growth markets, asset quality and level of nonperforming assets which are based upon management's beliefs as well as assumptions made by and data currently available to management. These forward-looking statements are not guarantees of future performance and a variety of factors could cause the Company's actual results to differ materially from the anticipated or expected results expressed in these forward-looking statements. The following list, which is not intended to be an all-encompassing list of risks and uncertainties affecting the Company, summarizes several factors that could cause the Company's actual results to differ materially from those anticipated or expected in these forward-looking statements: (1) competitive pressures among depository and other financial institutions may increase significantly; (2) changes in the interest rate environment may reduce margins; (3) general economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) legislative or regulatory changes, including changes in accounting standards, may adversely affect the business in which we are engaged; (5) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; (6) adverse changes may occur in the bond and equity markets; (7) opportunities to expand our presence in growth markets may be unavailable on terms suitable to management; and (8) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB Bankshares, Inc.
Selected Quarterly Financial Data
06/30/03 03/31/03 12/31/02 09/30/02 06/30/02
--------- --------- --------- --------- ---------
(In thousands, except per share and other data)
Summary of
Operations:
Interest
income $ 10,075 $ 10,417 $ 11,354 $ 11,619 $ 12,116
Interest
expense 3,254 3,593 4,142 4,627 5,150
--------- --------- --------- --------- ---------
Net
interest
income 6,821 6,824 7,212 6,992 6,966
--------- --------- --------- --------- ---------
Provision
for loan
losses -- -- 1,088 513 519
Other
income 1,887 2,161 1,842 2,012 1,973
Other
expense 6,225 6,305 6,197 6,107 5,951
--------- --------- --------- --------- ---------
Income
before
income
tax
expense 2,483 2,680 1,769 2,384 2,469
Income tax
expense 751 855 511 734 769
--------- --------- --------- --------- ---------
Net
income $ 1,732 $ 1,825 $ 1,258 $ 1,650 $ 1,700
========= ========= ========= ========= =========
Net
interest
income on
a tax-
equivalent
basis $ 6,866 $ 6,867 $ 7,253 $ 7,032 $ 6,993
Securities
gains
(losses) $ 107 $ 251 $ 203 $ 30 $ 43
Gain (loss)
on
disposal
or write-
down of
assets $ (189) $ (5) $ (377) $ 9 $ (72)
Selected
Average
Balances:
Total
assets $ 728,136 $ 732,357 $ 749,221 $ 762,315 $ 778,925
Earning
assets 667,462 671,526 687,761 700,586 721,231
Loans 541,836 554,638 554,676 569,703 599,539
Deposits 577,416 593,171 607,295 623,374 643,445
Stockholders'
equity 74,237 72,454 70,373 68,804 66,596
Performance
Ratios:
Return on
average
assets
(ROA) 0.95% 1.01% 0.67% 0.86% 0.88%
Return on
average
equity
(ROE) 9.36% 10.21% 7.09% 9.52% 10.24%
Net
interest
margin 4.13% 4.15% 4.18% 3.98% 3.89%
Efficiency
ratio 70.46% 71.79% 66.14% 67.88% 66.16%
Average
loans to
average
earning
assets 81.18% 82.59% 80.65% 81.32% 83.13%
Average
loans to
average
deposits 93.84% 93.50% 91.34% 91.39% 93.18%
Average
equity to
average
assets 10.20% 9.89% 9.39% 9.03% 8.55%
Per Share
Ratios:
Net income
- basic $ 0.19 $ 0.19 $ 0.13 $ 0.18 $ 0.18
Net income
- diluted 0.18 0.19 0.13 0.18 0.18
Dividends
declared 0.03 0.03 -- -- --
Dividend
payout
ratio 16.67% 15.79% 0.00% 0.00% 0.00%
Book value
at end of
period $ 7.90 $ 7.67 $ 7.56 $ 7.43 $ 7.23
Common
Share Data:
Outstanding
at period
end 9,434,813 9,430,413 9,430,413 9,430,413 9,430,413
Weighted
average
outstanding 9,431,644 9,430,413 9,430,413 9,430,413 9,430,413
Diluted
weighted
average
outstanding 9,554,345 9,476,645 9,462,289 9,453,930 9,454,803
Selected
Period End
Balances:
Total assets $ 748,017 $ 716,758 $ 747,911 $ 757,589 $ 764,493
Earning
assets 677,395 651,989 683,456 690,974 695,201
Loans 529,231 547,785 555,238 553,458 590,344
Allowance
for loan
losses 10,728 11,752 12,097 12,426 15,736
Deposits 573,230 587,719 606,730 615,415 628,927
Stockholders'
equity 74,566 72,365 71,265 70,049 68,143
Selected
Asset
Quality
Factors:
Nonaccrual
loans $ 9,842 $ 10,301 $ 10,378 $ 12,100 $ 16,058
Loans 90
days or
more past
due and
still
accruing -- -- -- 52 2
Other real
estate &
repossessions 1,882 1,612 1,284 966 821
Asset
Quality
Ratios:
Net charge-
offs to
average
loans
(annualized
YTD) 0.50% 0.25% 1.06% 1.08% 0.33%
Nonperforming
loans to
total
loans 1.86% 1.88% 1.87% 2.20% 2.72%
Nonperforming
assets to
total
assets 1.56% 1.66% 1.56% 1.73% 2.21%
Allowance
for loan
losses to
total loans 2.03% 2.15% 2.18% 2.25% 2.67%
Allowance
for loan
losses to
nonperforming
loans 109.01% 114.09% 116.56% 102.25% 97.99%
--------- --------- --------- --------- ---------
PAB Bankshares, Inc.
Selected Year To Date Financial Data
06/30/03 03/31/03 12/31/02 09/30/02 06/30/02
---------- ---------- ---------- ---------- ----------
(In thousands, except per share and other data)
Summary of
Operations:
Interest
income $ 20,491 $ 10,417 $ 48,079 $ 36,725 $ 25,106
Interest
expense 6,847 3,593 19,989 15,846 11,219
---------- ---------- ---------- ---------- ----------
Net
interest
income 13,644 6,824 28,090 20,879 13,887
---------- ---------- ---------- ---------- ----------
Provision
for loan
losses -- -- 2,575 1,487 975
Other
income 4,048 2,161 8,013 6,171 4,159
Other
expense 12,530 6,305 24,368 18,172 12,064
---------- ---------- ---------- ---------- ----------
Income
before
income
tax
expense 5,162 2,680 9,160 7,391 5,007
Income
tax
expense 1,606 855 2,813 2,302 1,569
---------- ---------- ---------- ---------- ----------
Net
income $ 3,556 $ 1,825 $ 6,347 $ 5,089 $ 3,438
========== ========== ========== ========== ==========
Net
interest
income on
a tax-
equivalent
basis $ 13,733 $ 6,867 $ 28,225 $ 20,972 $ 13,940
Securities
gains
(losses) $ 358 $ 251 $ 261 $ 58 $ 28
Gain (loss)
on disposal
or write-
down of
assets $ (194) $ (5) $ (272) $ 105 $ 96
Selected
Average
Balances:
Total
assets $ 730,235 $ 732,357 $ 779,958 $ 790,312 $ 804,543
Earning
assets 669,483 671,526 719,352 729,998 744,948
Loans 548,202 554,638 586,712 597,508 611,642
Deposits 585,249 641,449 641,449 652,960 667,998
Stockholders'
equity 73,350 67,975 67,975 67,167 66,334
Performance
Ratios:
Return on
average
assets
(ROA) 0.98% 1.01% 0.81% 0.86% 0.86%
Return on
average
equity
(ROE) 9.78% 10.21% 9.34% 10.13% 10.45%
Net interest
margin 4.14% 4.15% 3.92% 3.84% 3.77%
Efficiency
ratio 71.12% 71.79% 67.04% 67.35% 67.09%
Average
loans to
average
earning
assets 81.88% 82.59% 81.56% 81.85% 82.11%
Average
loans to
average
deposits 93.67% 86.47% 91.47% 91.51% 91.56%
Average
equity to
average
assets 10.04% 9.28% 8.72% 8.50% 8.24%
Per Share
Ratios:
Net income
- basic $ 0.38 $ 0.19 $ 0.67 $ 0.54 $ 0.36
Net income
- diluted 0.37 0.19 0.67 0.54 0.36
Dividends
declared 0.06 0.03 0.11 0.11 0.11
Dividend
payout
ratio 16.22% 15.79% 16.42% 20.37% 30.56%
Common
Share Data:
Weighted
average
out-
standing 9,431,032 9,430,413 9,426,761 9,425,530 9,423,048
Diluted
weighted
average
out-
standing 9,507,548 9,476,645 9,459,768 9,456,796 9,456,934