VALDOSTA, Ga., Nov. 3, 2003 (PRIMEZONE) -- PAB Bankshares, Inc. (AMEX:PAB), the holding company for The Park Avenue Bank of Valdosta, Georgia, announced preliminary earnings for the third quarter of 2003. The Company reported net income of $1.68 million, or $.18 per diluted share, for the quarter, compared to $1.65 million, or $.18 per diluted share, earned during the third quarter of 2002. "While we have yet to achieve the much desired increase in earnings or growth that our stockholders expect, we have sustained earnings and we have made great strides in strengthening this Company. For example, our level of loan delinquencies has improved. At quarter end, our loans past due greater than 30 days were 0.87% of total loans compared to a high of 4.2% of total loans 15 months ago," reported President and CEO Michael E. Ricketson.
The Company also announced that it has opened two loan production offices and expanded its footprint into St. Augustine, Florida and Athens, Georgia during the past two months. "We are excited about our opportunities to grow in these two markets, and we will continue to seek quality people and locations to help achieve our goals," stated Ricketson.
During the quarter, the Company paid off $14.5 million in debt that had an average remaining life of over five years and carried an average rate of 5.54%. "We incurred a $1.44 million prepayment penalty to extinguish the debt, but we expect to easily recoup that cost in interest expense savings over the next several years. We saw this as a chance to utilize our liquidity, restructure our balance sheet, and bolster our net interest margin while interest rates remain low," added Executive Vice President and CFO Jay Torbert. The Company recorded $1.05 million in securities gains during the quarter that helped to offset the prepayment penalty.
The Company's return on average assets was .89% and its return on average equity was 8.99% for the third quarter of 2003 compared to .86% and 9.52%, respectively, one year ago. The net interest margin was 4.02% during the quarter compared to 3.98% for the same period last year.
For the year to date, the Company reported net income of $5.24 million, or $.55 per diluted share, compared to $5.09 million, or $.54 per diluted share, earned during the same period of 2002. The return on average assets for the nine-month period was .95% and the return on average equity was 9.51% compared to .86% and 10.13%, respectively, reported for the same period one year ago. The net interest margin was 4.10% for the year to date compared to 3.84% for the same period last year.
At September 30, 2003, the Company reported total assets of $735.7 million. The Company also reported total loans of $531.6 million and total deposits of $563.4 million at quarter end. The third quarter marked the first quarterly period in which the Company reported an increase in total loans since the third quarter of 2001.
The Company's allowance for loan losses was $10.4 million, or 1.96% of total loans, at September 30, 2003 compared to $12.1 million, or 2.18% of total loans, at December 31, 2002. The Company reported total nonperforming loans of $7.2 million, or 1.36% 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 .41% of average total loans for the year to date compared to 1.06% for the year in 2002.
The Company currently operates seventeen 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
09/30/03 06/30/03 03/31/03 12/31/02 09/30/02
(In thousands, except per share and other data)
Summary of
Operations:
Interest
income $ 9,892 $ 10,075 $ 10,417 $ 11,354 $ 11,619
Interest
expense 2,972 3,254 3,593 4,142 4,627
---------- --------- --------- --------- ---------
Net interest
income 6,920 6,821 6,824 7,212 6,992
---------- --------- --------- --------- ---------
Provision
for loan
losses -- -- -- 1,088 513
Other
income 2,865 1,887 2,161 1,842 2,012
Other
expense 7,343 6,225 6,305 6,197 6,107
---------- --------- --------- --------- ---------
Income
before
income tax
expense 2,442 2,483 2,680 1,769 2,384
Income tax
expense 760 751 855 511 734
---------- --------- --------- --------- ---------
Net income $ 1,682 $ 1,732 $ 1,825 $ 1,258 $ 1,650
========== ========= ========= ========= =========
Net interest
income on a
tax-
equivalent
basis $ 6,968 $ 6,866 $ 6,867 $ 7,253 $ 7,032
Securities
gains
(losses) $ 1,047 $ 107 $ 251 $ 203 $ 30
Gain (loss)
on
disposal or
write-down
of assets $ (35) $ (189) $ (5) $ (377) $ 10
Selected
Average
Balances:
Total assets $ 747,402 $ 728,136 $ 732,357 $ 749,221 $ 762,315
Earning
assets 687,329 667,462 671,526 687,761 700,586
Loans 529,761 541,836 554,638 554,676 569,703
Deposits 573,422 577,416 593,171 607,295 623,374
Stockholders'
equity 74,281 74,237 72,454 70,373 68,804
Performance
Ratios:
Return on
average
assets (ROA) 0.89% 0.95% 1.01% 0.67% 0.86%
Return on
average
equity (ROE) 8.99% 9.36% 10.21% 7.09% 9.52%
Net interest
margin 4.02% 4.13% 4.15% 4.18% 3.98%
Efficiency
ratio 83.24% 70.46% 71.79% 66.14% 67.88%
Average
loans to
average
earning
assets 77.08% 81.18% 82.59% 80.65% 81.32%
Average
loans to
average
deposits 92.39% 93.84% 93.50% 91.34% 91.39%
Average
equity
to average
assets 9.94% 10.20% 9.89% 9.39% 9.03%
Per Share
Ratios:
Net income
- basic $ 0.19 $ 0.18 $ 0.19 $ 0.13 $ 0.18
Net income
- diluted 0.18 0.18 0.19 0.13 0.18
Dividends
declared 0.05 0.03 0.03 -- --
Dividend
payout
ratio 27.78% 16.67% 15.79% 0.00% 0.00%
Book value
at end of
period $ 7.87 $ 7.90 $ 7.67 $ 7.56 $ 7.43
Common Share
Data:
Outstanding
at period
end 9,452,584 9,434,813 9,430,413 9,430,413 9,430,413
Weighted
average
outstanding 9,445,852 9,431,644 9,430,413 9,430,413 9,430,413
Diluted
weighted
average
outstanding 9,615,852 9,554,345 9,476,645 9,462,289 9,453,930
Selected
Period End
Balances:
Total assets $ 735,715 $ 748,017 $ 716,758 $ 747,911 $ 757,589
Earning
assets 671,927 677,395 651,989 683,456 690,974
Loans 531,551 529,231 547,785 555,238 553,458
Allowance
for loan
losses 10,426 10,728 11,752 12,097 12,426
Deposits 563,412 573,230 587,719 606,730 615,415
Stockholders'
equity 74,411 74,566 72,365 71,265 70,049
Selected
Asset
Quality
Factors:
Nonaccrual
loans $ 7,230 $ 9,842 $ 10,301 $ 10,378 $ 12,100
Loans 90
days or
more past
due and
still
accruing -- -- -- -- 52
Other real
estate &
repossessions 3,918 1,882 1,612 1,284 966
Asset Quality
Ratios:
Net charge-offs
to average
loans
(annualized
YTD) 0.41% 0.50% 0.25% 1.06% 1.08%
Nonperforming
loans to
total
loans 1.36% 1.86% 1.88% 1.87% 2.20%
Nonperforming
assets to
total assets 1.52% 1.57% 1.66% 1.56% 1.73%
Allowance for
loan losses
to total
loans 1.96% 2.03% 2.15% 2.18% 2.25%
Allowance
for loan
losses to
nonperforming
loans 144.21% 109.01% 114.09% 116.56% 102.25%
PAB Bankshares, Inc.
Selected Year To Date Financial Data
09/30/03 06/30/03 03/31/03 12/31/02 09/30/02
---------- --------- --------- --------- ---------
(In thousands, except per share and other data)
Summary of Operations:
Interest
income $ 30,383 $ 20,491 $ 10,417 $ 48,079 $ 36,725
Interest
expense 9,819 6,847 3,593 19,989 15,846
---------- --------- --------- --------- ---------
Net
interest
income 20,564 13,644 6,824 28,090 20,879
---------- --------- --------- --------- ---------
Provision
for loan
losses - - - 2,575 1,487
Other income 6,913 4,048 2,161 8,013 6,171
Other expense 19,872 12,530 6,305 24,368 18,172
-------- --------- --------- -------- --------
Income
before
income
tax
expense 7,605 5,162 2,680 9,160 7,391
Income tax
expense 2,366 1,606 855 2,813 2,302
-------- --------- --------- -------- --------
Net income $ 5,239 $ 3,556 $ 1,825 $ 6,347 $ 5,089
======== ========= ========= ======== ========
Net
interest
income on
a tax-
equivalent
basis $ 20,701 $ 13,733 $ 6,867 $ 28,225 $ 20,972
Securities
gains
(losses) $ 1,405 $ 358 $ 251 $ 261 $ 58
Gain (loss)
on
disposal
or
write-down
of assets $ (229) $ (194) $ (5) $ (272) $ 105
Selected
Average
Balances:
Total assets $ 736,020 $ 730,235 $ 732,357 $ 779,958 $ 790,312
Earning
assets 675,497 669,483 671,526 719,352 729,998
Loans 541,987 548,202 554,638 586,712 597,508
Deposits 581,264 585,249 593,171 641,449 652,960
Stockholders'
equity 73,663 73,350 72,454 67,975 67,167
Performance
Ratios:
Return on
average
assets
(ROA) 0.95% 0.98% 1.01% 0.81% 0.86%
Return on
average
equity
(ROE) 9.51% 9.78% 10.21% 9.34% 10.13%
Net interest
margin 4.10% 4.14% 4.15% 3.92% 3.84%
Efficiency
ratio 75.17% 71.12% 71.79% 67.04% 67.35%
Average loans
to average
earning
assets 80.24% 81.88% 82.59% 81.56% 81.85%
Average
loans to
average
deposits 93.24% 93.67% 93.50% 91.47% 91.51%
Average
equity to
average
assets 10.01% 10.04% 9.89% 8.72% 8.50%
Per Share
Ratios:
Net income
- basic $ 0.56 $ 0.38 $ 0.19 $ 0.67 $ 0.54
Net income
- diluted 0.55 0.37 0.19 0.67 0.54
Dividends
declared 0.11 0.06 0.03 0.11 0.11
Dividend
payout
ratio 20.00% 16.22% 15.79% 16.42% 20.37%
Common
Share Data:
Weighted
average
outstanding 9,436,026 9,431,032 9,430,413 9,426,761 9,425,530
Diluted
weighted
average
outstanding 9,547,265 9,507,548 9,476,645 9,459,768 9,456,796