VALDOSTA, Ga., Feb. 3, 2004 (PRIMEZONE) -- PAB Bankshares, Inc. (AMEX:PAB), the holding company for The Park Avenue Bank, announced preliminary earnings for the fourth quarter and for the year of 2003. The Company reported net income of $1.89 million, or $.19 per diluted share, for the quarter, compared to $1.26 million, or $.13 per diluted share, earned during the fourth quarter of 2002. For the year, the Company reported net income of $7.13 million, or $.74 per diluted share, compared to $6.35 million, or $.67 per share, reported in 2002. "I'm pleased with our results for the quarter and 2003. Our focus in 2004 will be profitable growth," reported President and CEO Michael E. Ricketson.
The Company's return on average assets was 1.02% and its return on average equity was 9.86% for the fourth quarter of 2003 compared to .67% and 7.09%, respectively, one year ago. The net interest margin was 4.14% during the quarter compared to 4.18% for the same period last year and 4.02% for the previous quarter.
For the year, the return on average assets was .97% and the return on average equity was 9.60% compared to .81% and 9.34%, respectively, reported for 2002. The net interest margin for the year was 4.11% compared to 3.92% last year.
At December 31, 2003, the Company reported total assets of $730.7 million down from $747.9 million at December 31, 2002. The Company also reported total loans of $538.6 million and total deposits of $556.9 million at year end compared to $555.2 million and $606.7 million reported, respectively, twelve months ago.
The Company's allowance for loan losses was $10.1 million, or 1.88% of total loans, at December 31, 2003 compared to $12.1 million, or 2.18% of total loans, at December 31, 2002. The Company reported total nonperforming loans of $7.0 million, or 1.31% of total loans at year end compared to $10.4 million, or 1.87% of total loans, twelve months earlier. Net charge-offs amounted to .36% of average total loans for 2003 compared to 1.06% for 2002.
The Company currently operates sixteen branches and two loan production 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, expansion in growth markets, asset quality, level of nonperforming assets, and the interest expense savings 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 12/31/03 09/30/03 06/30/03 03/31/03 12/31/02 ---------------------------------------------------------------------- (In thousands, except per share and other data) Summary of Operations: Interest income $ 9,657 $ 9,892 $ 10,075 $ 10,417 $ 11,354 Interest expense 2,648 2,972 3,254 3,593 4,142 ---------------------------------------------------------------------- Net interest income 7,009 6,920 6,821 6,824 7,212 ---------------------------------------------------------------------- Provision for loan losses -- -- -- -- 1,088 Other income 1,702 2,865 1,887 2,161 1,842 Other expense 5,829 7,343 6,225 6,305 6,197 ---------------------------------------------------------------------- Income before income tax expense 2,882 2,442 2,483 2,680 1,769 Income tax expense 995 760 751 855 511 ---------------------------------------------------------------------- Net income $ 1,887 $ 1,682 $ 1,732 $ 1,825 $ 1,258 ====================================================================== Net interest income on a tax-equivalent basis $ 7,058 $ 6,968 $ 6,866 $ 6,867 $ 7,253 Securities gains (losses) $ 11 $ 1,047 $ 107 $ 251 $ 203 Gain (loss) on disposal or write-down of assets $ (27) $ (35) $ (189) $ (5) $ (477) Selected Average Balances: Total assets $737,396 $747,402 $728,136 $732,357 $749,221 Earning assets 676,372 687,329 667,462 671,527 687,761 Loans 537,223 529,761 541,836 554,638 554,676 Deposits 563,836 573,422 577,416 593,171 607,295 Stockholders' equity 75,906 74,281 74,237 72,454 70,373 Performance Ratios: Return on average assets (ROA) 1.02% 0.89% 0.95% 1.01% 0.67% Return on average equity (ROE) 9.86% 8.99% 9.36% 10.21% 7.09% Net interest margin 4.14% 4.02% 4.13% 4.15% 4.18% Efficiency ratio 66.42% 83.24% 70.46% 71.79% 66.14% Average loans to average earning assets 79.43% 77.08% 81.18% 82.59% 80.65% Average loans to average deposits 95.28% 92.39% 93.84% 93.50% 91.34% Average equity to average assets 10.29% 9.94% 10.20% 9.89% 9.39% Per Share Ratios: Net income - basic $ 0.19 $ 0.19 $ 0.18 $ 0.19 $ 0.13 Net income - diluted 0.19 0.18 0.18 0.19 0.13 Dividends declared 0.07 0.05 0.03 0.03 -- Dividend payout ratio 35.18% 28.09% 16.35% 15.50% 0.00% Book value at end of period $ 8.02 $ 7.87 $ 7.90 $ 7.67 $ 7.56 Common Share Data: Outstanding at period end 9,484,660 9,452,584 9,434,813 9,430,413 9,430,413 Weighted average outstanding 9,476,158 9,445,852 9,431,644 9,430,413 9,430,413 Diluted weighted average outstanding 9,686,617 9,615,852 9,554,345 9,476,645 9,462,289 Selected Period End Balances: Total assets $730,741 $735,715 $748,017 $716,758 $747,911 Earning assets 666,488 671,927 677,395 651,989 683,456 Loans 538,644 531,551 529,231 547,785 555,238 Allowance for loan losses 10,139 10,426 10,728 11,752 12,097 Deposits 556,917 563,412 573,230 587,719 606,730 Stockholders' equity 76,062 74,411 74,566 72,365 71,265 Selected Asset Quality Factors: Nonaccrual loans $ 7,048 $ 7,230 $ 9,842 $ 10,301 $ 10,378 Loans 90 days or more past due and still accruing -- -- -- -- -- Other real estate & repossessions 4,578 3,918 1,882 1,612 1,284 Asset Quality Ratios: Net charge-offs to average loans (annualized YTD) 0.36% 0.41% 0.50% 0.25% 1.06% Nonperforming loans to total loans 1.31% 1.36% 1.86% 1.88% 1.87% Nonperforming assets to total assets 1.60% 1.52% 1.57% 1.66% 1.56% Allowance for loan losses to total loans 1.88% 1.96% 2.03% 2.15% 2.18% Allowance for loan losses to nonperforming loans 143.86% 144.21% 109.01% 114.09% 116.56% PAB Bankshares, Inc. Selected Year To Date Financial Data 12/31/03 09/30/03 06/30/03 03/31/03 12/31/02 ----------------------------------------------------------------------- (In thousands, except per share and other data) Summary of Operations: Interest income $ 40,040 $ 30,383 $ 20,491 $ 10,417 $ 48,079 Interest expense 12,467 9,819 6,847 3,593 19,989 ---------------------------------------------------------------------- Net interest income 27,573 20,564 13,644 6,824 28,090 ---------------------------------------------------------------------- Provision for loan losses -- -- -- -- 2,575 Other income 8,616 6,913 4,048 2,161 8,013 Other expense 25,702 19,872 12,530 6,305 24,368 ---------------------------------------------------------------------- Income before income tax expense 10,487 7,605 5,162 2,680 9,160 Income tax expense 3,361 2,366 1,606 855 2,813 ---------------------------------------------------------------------- Net income $ 7,126 $ 5,239 $ 3,556 $ 1,825 $ 6,347 ====================================================================== Net interest income on a tax-equivalent basis $ 27,759 $ 20,701 $ 13,733 $ 6,867 $ 28,225 Securities gains (losses) $ 1,416 $ 1,405 $ 358 $ 251 $ 261 Gain (loss) on disposal or write-down of assets $ (256) $ (229) $ (194) $ (5) $ (372) Selected Average Balances: Total assets $736,367 $736,020 $730,235 $732,357 $779,958 Earning assets 675,718 675,497 669,482 671,527 719,352 Loans 540,787 541,987 548,202 554,638 586,712 Deposits 576,871 581,264 585,249 593,171 641,449 Stockholders' equity 74,229 73,663 73,350 72,454 67,975 Performance Ratios: Return on average assets (ROA) 0.97% 0.95% 0.98% 1.01% 0.81% Return on average equity (ROE) 9.60% 9.51% 9.78% 10.21% 9.34% Net interest margin 4.11% 4.10% 4.14% 4.15% 3.92% Efficiency ratio 72.99% 75.17% 71.12% 71.79% 67.04% Average loans to average earning assets 80.03% 80.24% 81.88% 82.59% 81.56% Average loans to average deposits 93.74% 93.24% 93.67% 93.50% 91.47% Average equity to average assets 10.08% 10.01% 10.04% 9.89% 8.72% Per Share Ratios: Net income - basic $ 0.75 $ 0.56 $ 0.38 $ 0.19 $ 0.67 Net income - diluted 0.74 0.55 0.37 0.19 0.67 Dividends declared 0.18 0.11 0.06 0.03 0.11 Dividend payout ratio 23.89% 19.82% 15.91% 15.50% 16.34% Common Share Data: Weighted average outstanding 9,446,142 9,436,026 9,431,032 9,430,413 9,426,761 Diluted weighted average outstanding 9,587,187 9,547,265 9,507,548 9,476,645 9,459,768