VALDOSTA, Ga., May 3, 2004 (PRIMEZONE) -- PAB Bankshares, Inc. (AMEX:PAB), the parent company for The Park Avenue Bank, announced its preliminary results for the first quarter of 2004. For the three months ended March 31, 2004, the Company reported net income of $2.13 million, or $0.22 per diluted share. These results are a 16.5% increase over the $1.82 million, or $0.19 per share, earned in the first quarter of 2003.
"We are very pleased with our results for the first quarter of 2004. This is a positive start to the new year," stated Michael E. Ricketson, the Company's President and Chief Executive Officer. "During the quarter, we were presented with an opportunity to change our third-party brokerage and financial services agreement to a more financially beneficial arrangement for the Company while continuing to provide the same services to our customers. Included in the quarterly results is a $200,000 pre-tax gain related to this transaction that resulted in an after-tax increase of a little more than a penny per share," added Ricketson.
The net income reported for the quarter provided a 10.99% return on average equity ("ROE") and a 1.17% return on average assets ("ROA"), compared to a 10.21% ROE and a 1.01% ROA reported for the first quarter of 2003. In addition the Company paid a first quarter 2004 dividend to its stockholders of $0.07 per share, which was an improvement over the $0.03 per share paid one year ago.
The Company reported a 4.34% net interest margin for the first quarter of 2004, which was a 19 basis point improvement compared to the 4.15% reported for first quarter of last year. Non-interest expenses for the first quarter of 2004 were down $579,000 or 9.18% compared to the first quarter of 2003.
The Company reported total assets of $734.9 million, total loans of $549.1 million, and total deposits of $556.9 million at March 31, 2004. The Bank's loan portfolio increased $10.5 million during the quarter. This was the third consecutive quarter of reported loan growth after a seven-quarter period of contraction within the loan portfolio.
The Company also reported the following asset quality factors as of March 31, 2004. Total loans past due 30 days or more represented 0.67% of total loans. The Company had $4.87 million in loans on nonaccrual status, a $2.18 million decrease since the end of 2003. The Company had $11.43 million in nonperforming assets, which includes nonaccrual loans, other impaired loans, other real estate owned and repossessed property, a $1.36 million decrease since year end.
The Company currently operates sixteen bank 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, 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 businesses 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) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; 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
03/31/04 12/31/03 09/30/03 06/30/03 03/31/03
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(In thousands, except per share and other data)
Summary of
Operations:
Interest
income $ 9,587 $ 9,657 $ 9,892 $ 10,075 $ 10,417
Interest
expense 2,430 2,648 2,972 3,254 3,593
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Net interest
income 7,157 7,009 6,920 6,821 6,824
--------------------------------------------------------------------
Provision for
loan losses -- -- -- -- --
Other income 1,806 1,702 2,865 1,887 2,161
Other expense 5,726 5,829 7,343 6,225 6,305
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Income before
income
tax expense 3,237 2,882 2,442 2,483 2,680
Income tax
expense 1,111 995 760 751 855
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Net income $ 2,126 $ 1,887 $ 1,682 $ 1,732 $ 1,825
====================================================================
Net interest
income on a
tax-equivalent
basis $ 7,202 $ 7,058 $ 6,968 $ 6,866 $ 6,867
Selected Average
Balances:
Total assets $ 728,652 $ 737,396 $ 747,402 $ 728,136 $ 732,357
Earning assets 667,516 676,372 687,329 667,462 671,526
Loans 541,549 537,223 529,761 541,836 554,638
Deposits 555,406 563,836 573,422 577,416 593,171
Stockholders'
equity 77,814 75,906 74,281 74,237 72,454
Performance
Ratios:
Return on average
assets ("ROA") 1.17% 1.02% 0.89% 0.95% 1.01%
Return on average
equity ("ROE") 10.99% 9.86% 8.99% 9.36% 10.21%
Net interest
margin 4.34% 4.14% 4.02% 4.13% 4.15%
Efficiency ratio
(excluding the
following
items:) 65.09% 66.42% 66.94% 70.46% 71.79%
Loss on early
retirement
of debt
included in
other
expense $ -- $ -- $ 1,438 $ -- $ --
Securities gains
(losses)
included in
other income $ 2 $ 11 $ 1,047 $ 107 $ 251
Other gains
(losses)
included in
other income $ 210 $ (27)$ (35)$ (189)$ (5)
Average loans
to average
earning assets 81.13% 79.43% 77.08% 81.18% 82.59%
Average loans
to average
deposits 97.51% 95.28% 92.39% 93.84% 93.50%
Average equity to
average assets 10.68% 10.29% 9.94% 10.20% 9.89%
Per Share Ratios:
Net income
- basic $ 0.22 $ 0.20 $ 0.18 $ 0.18 $ 0.19
Net income
- diluted 0.22 0.19 0.17 0.18 0.19
Dividends
declared 0.07 0.07 0.05 0.03 0.03
Dividend payout
ratio 31.32% 35.18% 28.09% 16.35% 15.50%
Book value at
end of period$ 8.26 $ 8.02 $ 7.87 $ 7.90 $ 7.67
Common Share
Data:
Outstanding at
period end 9,514,240 9,484,660 9,452,584 9,434,813 9,430,413
Weighted
average
outstanding 9,500,031 9,476,158 9,445,852 9,431,644 9,430,413
Diluted
weighted
average
outstanding 9,689,580 9,686,617 9,615,852 9,554,345 9,476,645
Selected Period
End Balances:
Total assets $ 735,299 $ 730,741 $ 735,715 $ 748,017 $ 716,758
Earning assets 675,293 666,488 671,927 677,395 651,989
Loans 549,149 538,644 531,551 529,231 547,785
Allowance for
loan losses 9,730 10,139 10,426 10,728 11,752
Deposits 556,853 556,917 563,412 573,230 587,719
Stockholders'
equity 78,611 76,062 74,411 74,566 72,365
Selected Asset
Quality Factors:
Nonaccrual
loans $ 4,868 $ 7,048 $ 7,230 $ 9,842 $ 10,301
Loans 90 days
or more past
due and still
accruing -- -- -- -- --
Other impaired
loans
(troubled-debt
restructurings) 2,188 1,168 1,176 1,188 1,200
Other real estate
& repossessions 4,376 4,578 3,918 1,882 1,612
Asset Quality
Ratios:
Net charge-offs
to average
loans
(annualized YTD) 0.30% 0.36% 0.41% 0.50% 0.25%
Nonperforming
loans to
total loans 1.28% 1.53% 1.58% 2.08% 2.12%
Nonperforming
assets to
total assets 1.75% 1.75% 1.68% 1.73% 1.83%
Allowance for
loan losses to
total loans 1.77% 1.88% 1.96% 2.03% 2.15%
Allowance for
loan losses to
non-performing
loans 137.90% 123.41% 124.03% 97.26% 102.18%
PAB Bankshares, Inc.
Selected Year To Date Financial Data
03/31/04 12/31/03 09/30/03 06/30/03 03/31/03
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(In thousands, except per share and other data)
Summary of
Operations:
Interest
income $ 9,587 $ 40,040 $ 30,383 $ 20,491 $ 10,417
Interest
expense 2,430 12,467 9,819 6,847 3,593
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Net interest
income 7,157 27,573 20,564 13,644 6,824
--------------------------------------------------------------------
Provision for
loan losses -- -- -- -- --
Other income 1,806 8,616 6,913 4,048 2,161
Other expense 5,726 25,702 19,873 12,530 6,305
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Income before
income
tax expense 3,237 10,487 7,604 5,162 2,680
Income tax
expense 1,111 3,361 2,366 1,606 855
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Net income $ 2,126 $ 7,126 $ 5,238 $ 3,556 $ 1,825
====================================================================
Net interest
income on a
tax-equivalent
basis $ 7,202 $ 27,759 $ 20,701 $ 13,733 $ 6,867
Selected Average
Balances:
Total assets $ 728,652 $ 736,367 $ 736,020 $ 730,235 $ 732,357
Earning assets 667,516 675,718 675,497 669,483 671,526
Loans 541,549 540,787 541,987 548,202 554,638
Deposits 555,406 576,871 581,264 585,249 593,171
Stockholders'
equity 77,814 74,229 73,663 73,350 72,454
Performance Ratios:
Return on average
assets ("ROA") 1.17% 0.97% 0.95% 0.98% 1.01%
Return on average
equity ("ROE") 10.99% 9.60% 9.51% 9.78% 10.21%
Net interest
margin 4.34% 4.11% 4.10% 4.14% 4.15%
Efficiency ratio
(excluding the
following items:) 65.09% 68.90% 69.73% 71.12% 71.79%
Loss on early
retirement of
debt included
in other
expense $ -- $ 1,438 $ 1,438 $ -- $ --
Securities
gains included
in other
income $ 2 $ 1,416 $ 1,405 $ 358 $ 251
Other gains
(losses)
included in
other income $ 210 $ (256) $ (229) $ (194) $ (5)
Average loans
to average
earning assets 81.13% 80.03% 80.24% 81.88% 82.59%
Average loans
to average
deposits 97.51% 93.74% 93.24% 93.67% 93.50%
Average equity
to average
assets 10.68% 10.08% 10.01% 10.04% 9.89%
Per Share Ratios:
Net income
- basic $ 0.22 $ 0.75 $ 0.56 $ 0.38 $ 0.19
Net income
- diluted 0.22 0.74 0.55 0.37 0.19
Dividends
declared 0.07 0.18 0.11 0.06 0.03
Dividend
payout ratio 31.32% 23.89% 19.82% 15.91% 15.50%
Common Share Data:
Weighted average
outstanding 9,500,031 9,446,142 9,436,026 9,431,032 9,430,413
Diluted weighted
average
outstanding 9,689,580 9,587,187 9,547,265 9,507,548 9,476,645