VALDOSTA, Ga., April 25, 2007 (PRIME NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, today announced its financial results for the three months ended March 31, 2007. The Company reported net income of $3.1 million, or $0.32 per diluted share, for the first quarter of 2007, a 7.5% decrease compared to net income of $3.3 million, or $0.34 per diluted share, for the first quarter of 2006. The Company reported a return on average equity of 12.75% and a return on average assets of 1.11% for the first quarter of 2007.
"Although the unfavorable operating environment and additional expenses associated with our expansion efforts hampered our earnings, we are pleased with our efforts and accomplishments for the quarter," stated Company President and CEO M. Burke Welsh, Jr. "Our loan portfolio increased $33.8 million during the first quarter, or 16.7% on an annualized basis, despite a decrease in residential construction lending activity. With the challenges facing our customers in this real estate cycle, we do not expect to sustain this rate of growth throughout the remainder of 2007. Growth in the 7-10% range is more likely. The loan growth during the first quarter can be primarily attributed to our continued efforts to expand into and around the Atlanta and Jacksonville metropolitan areas. Given the strong growth demographics projected for these markets, our long-term outlook remains positive.
"Our loan growth was funded by strong core deposit growth, particularly in demand and savings accounts in our markets. During the quarter, total deposits increased $45.9 million, or 20.5% on an annualized basis. While some of this growth may turn out to be short-term deposits by some of our corporate accounts and local municipalities, we believe we are building solid, core deposit relationships. Over the past year, we have focused on increasing our retail banking efforts and expanding our relationships with our commercial loan customers to also provide deposit products and services to meet their needs," added Welsh.
The Company's results for the first quarter of 2007 were aided by $112,700 in securities gains, after-tax. In the first quarter of 2006, the Company recognized $279,300 in securities losses, after-tax benefit. Excluding the securities transactions, net income for the first quarter of 2007 would have decreased by $638,500, or 17.8%, compared to the same period last year.
Net interest income decreased 2.1% for the first quarter of 2007 compared to the same period in 2006 due to the inverted interest rate curve, a decline in loan fee income and upward pricing pressures on funding costs. For the first quarter of 2007, the Company's net interest margin was 4.15%, a 41 basis point decrease compared to the first quarter of 2006 but a 6 basis point improvement compared to the fourth quarter of 2006.
Noninterest expense increased 10.6% for the first quarter of 2007 compared to the same period in 2006. Since the first quarter of 2006, the Company has opened three banking offices (a 14% increase), activated five ATMs (a 25% increase) and added 24 officers and employees (an 8% increase). "Depending on the economy and our success in attracting the right people, we expect to open at least one more office this year and possibly three more offices in 2008," noted Welsh.
As of March 31, 2007, the Company reported total nonperforming assets of $4.6 million, or 0.39% of total assets, a 6 basis point improvement since the end of 2006 and a 36 basis point improvement since March 31, 2006. Total loans on nonaccrual status or past due more than 89 days represented 0.50% of total loans at quarter end, a 1 basis point increase since the end of 2006 but a 52 basis point improvement since March 31, 2006. Total loans past due 30-89 days represented 0.21% of total loans at quarter end, an 8 basis point improvement since the end of 2006 and a 31 basis point improvement since March 31, 2006.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 11:00 AM Eastern on Thursday, April 26, 2007. The conference call will be broadcast by Vcall via the Internet using Windows Media Player. The webcast URL is http://www.vcall.com/IC/CEPage.asp?ID=115920. A link to the webcast is posted on the "Investor Relations" section of the Company's website at www.pabbankshares.com. Interested shareholders, industry analysts and members of the news media and the investment community wanting to participate in the live question and answer session following management's presentation may access the conference call by dialing (toll free) 877-407-8033 or (international) 201-689-8033.
Shortly following the call and at any time for at least 30 days thereafter, interested parties may access an archived version of the webcast on the "Investor Relations" section of the Company's website or by dialing (toll free) 877-660-6853 or (International) 201-612-7415. The following replay passcodes will be required for playback access: the account number is 286 and the conference identification number is 238121.
About PAB
The Company's sole operating subsidiary is The Park Avenue Bank. Both the Company and the Bank are headquartered in Valdosta, Georgia. The Bank was established in 1956 by Mr. James L. Dewar, Sr. in a small office at the corner of Park Avenue and Ashley Street in Valdosta. The Bank operates in 20 branch offices and three loan production offices in 15 counties in Georgia and Florida. Additional information on the Bank's locations and the products and services offered by the Bank is available on the Internet at www.parkavebank.com. The Company's common stock is listed on the NASDAQ Global Select Market under the symbol PABK. Prior to November 1, 2005, the Company's common stock was listed on the American Stock Exchange under the symbol PAB. More information on the Company is available on the Internet at www.pabbankshares.com.
Cautionary Note to Investors Regarding Forward-Looking Statements
Certain matters set forth in this news release are "forward-looking statements" within the meaning of the federal securities laws, including, without limitation, statements regarding our outlook on asset quality, projected growth, economic conditions and branch expansion, and are based upon management's beliefs as well as assumptions made based on data currently available to management. When words like "anticipate", "believe", "intend", "plan", "expect", "estimate", "could", "should", "will" and similar expressions are used, you should consider them as identifying forward-looking statements. 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 or the volumes or values of loans made by The Park Avenue Bank; (3) general economic conditions (both generally and in our markets) 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 and compliance requirements, 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 we can; (6) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (7) adverse changes may occur in the bond and equity markets; (8) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (9) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (10) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (11) the risk factors discussed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
(Dollars in thousands except per share and other data)
Period Ended
----------------------------------------------------------
03/31/07 12/31/06 09/30/06 06/30/06 03/31/06
---------------------------------------------------------------------
Summary of
Operations:
Interest
income $ 20,451 $ 20,239 $ 20,173 $ 19,306 $ 17,848
Interest
expense 9,783 9,658 8,936 8,006 6,956
---------------------------------------------------------------------
Net
interest
income 10,668 10,581 11,237 11,300 10,892
---------------------------------------------------------------------
Provision for
loan losses -- -- -- -- --
Other income 1,478 1,578 1,204 1,557 1,041
Other expense 7,470 7,230 7,000 7,182 6,756
Income
before
income tax
expense 4,676 4,929 5,441 5,675 5,177
Income tax
expense 1,612 1,632 1,908 2,083 1,865
---------------------------------------------------------------------
Net
income $ 3,064 $ 3,297 $ 3,533 $ 3,592 $ 3,312
=====================================================================
Net interest
income on
a tax-
equivalent
basis $ 10,822 $ 10,732 $ 11,378 $ 11,422 $ 10,975
Per Share
Ratios:
Net income
- basic $ 0.32 $ 0.35 $ 0.37 $ 0.38 $ 0.35
Net income
- diluted 0.32 0.34 0.36 0.37 0.34
Dividends
declared
for period 0.145 0.140 0.140 0.135 0.125
Dividend
payout
ratio 45.02% 40.35% 37.62% 35.70% 35.91%
Book value
at end of
period $ 10.26 $ 10.03 $ 9.84 $ 9.36 $ 9.35
Common Share
Data:
Outstanding
at period
end 9,516,673 9,504,969 9,493,763 9,498,026 9,512,767
Weighted
average out-
standing 9,515,976 9,500,837 9,500,742 9,511,395 9,484,570
Diluted
weighted
average out-
standing 9,691,233 9,701,593 9,684,451 9,722,097 9,712,633
Selected
Average
Balances:
Total
assets $1,124,534 $1,106,404 $1,070,920 $1,055,955 $1,035,348
Earning
assets 1,057,121 1,041,359 1,007,917 994,173 975,699
Loans 834,070 813,435 805,732 787,332 761,900
Deposits 910,188 887,028 863,212 851,937 834,062
Stockholders'
equity 97,470 95,091 91,821 90,433 89,030
Selected
Period End
Balances:
Total
assets $1,171,845 $1,120,804 $1,095,836 $1,060,046 $1,059,167
Earning
assets 1,106,808 1,048,239 1,032,261 994,386 998,639
Loans 854,076 820,304 806,636 803,035 764,090
Allowance
for loan
losses 11,085 11,006 10,686 10,903 11,186
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 954,416 908,483 883,701 856,778 855,224
Stockholders'
equity 97,657 95,316 93,440 88,917 88,974
Tier 1
regulatory
capital 102,173 100,330 98,183 96,398 94,686
Performance
Ratios:
Return on
average
assets 1.11% 1.18% 1.31% 1.36% 1.30%
Return on
average
stockholders'
equity 12.75% 13.76% 15.27% 15.93% 15.08%
Net interest
margin 4.15% 4.09% 4.48% 4.61% 4.56%
Efficiency
ratio (ex-
cluding the
following
items): 61.54% 59.51% 54.50% 55.37% 54.29%
Securities
gains
(losses)
included
in other
income $ 173 $ 166 $ (278) $ (1) $ (430)
Other gains
(losses)
included
in other
income (13) (4) 17 8 2
Selected
Asset Quality
Factors:
Nonaccrual
loans $ 4,192 $ 4,013 $ 1,928 $ 412 $ 7,760
Loans 90
days or more
past due and
still
accruing 69 34 40 23 17
Other im-
paired loans
(troubled-
debt re-
structurings) -- -- -- -- --
Other real
estate and
repossessions 362 988 813 976 212
Asset Quality
Ratios:
Net charge-
offs to
average
loans
(annualized
YTD) -0.04% 0.01% 0.07% 0.05% -0.06%
Nonperforming
loans to
total loans 0.50% 0.49% 0.24% 0.05% 1.02%
Nonperforming
assets to
total assets 0.39% 0.45% 0.25% 0.13% 0.75%
Allowance for
loan losses
to total
loans 1.30% 1.34% 1.32% 1.36% 1.46%
Allowance for
loan losses
to nonper-
forming
loans 260.13% 271.95% 542.93% 2510.11% 143.82%
Other Selected
Ratios and Non-
financial Data:
Average loans
to average
earning
assets 78.90% 78.11% 79.94% 79.19% 78.09%
Average loans
to average
deposits 91.64% 91.70% 93.34% 92.42% 91.35%
Average stock-
holders'
equity to
average
assets 8.67% 8.59% 8.57% 8.56% 8.60%
Full-time
equivalent
employees 329 321 309 314 305
Bank branch
offices 20 19 17 17 17
Bank loan
production
offices 3 3 5 5 4
Bank ATMs 25 23 20 20 20
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
(Dollars in thousands except per share and other data)
Period Ended
----------------------------------------------------------
03/31/07 12/31/06 09/30/06 06/30/06 03/31/06
---------------------------------------------------------------------
Summary of
Operations:
Interest
income $ 20,451 $ 77,566 $ 57,327 $ 37,154 $ 17,848
Interest
expense 9,783 33,555 23,898 14,962 6,956
---------------------------------------------------------------------
Net interest
income 10,668 44,011 33,429 22,192 10,892
---------------------------------------------------------------------
Provision for
loan losses -- -- -- -- --
Other income 1,478 5,380 3,802 2,598 1,041
Other expense 7,470 28,167 20,937 13,938 6,756
---------------------------------------------------------------------
Income before
income tax
expense 4,676 21,224 16,294 10,852 5,177
Income tax
expense 1,612 7,488 5,856 3,948 1,865
---------------------------------------------------------------------
Net
income $ 3,064 $ 13,736 $ 10,438 $ 6,904 $ 3,312
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 10,822 $ 44,507 $ 33,775 $ 22,397 $ 10,975
Per Share
Ratios:
Net income
- basic $ 0.32 $ 1.45 $ 1.10 $ 0.73 $ 0.35
Net income
- diluted 0.32 1.41 1.07 0.71 0.34
Dividends
declared for
the period 0.145 0.540 0.400 0.260 0.125
Dividend
payout
ratio 45.02% 37.36% 36.41% 35.80% 35.91%
Common Share
Data:
Weighted
average out-
standing 9,515,976 9,499,434 9,498,962 9,498,057 9,484,570
Diluted
weighted
average out-
standing 9,691,233 9,706,989 9,707,786 9,719,638 9,712,633
Selected
Average
Balances:
Total
assets $1,124,534 $1,067,362 $1,054,205 $1,045,708 $1,035,348
Earning
assets 1,057,121 1,004,981 992,719 984,994 975,699
Loans 834,070 792,278 785,148 774,686 761,900
Deposits 910,188 859,216 849,844 843,049 834,062
Stockholders'
equity 97,470 91,611 90,438 89,735 89,030
Performance
Ratios:
Return on
average
assets 1.11% 1.29% 1.32% 1.33% 1.30%
Return on
average
stockholders'
equity 12.75% 14.99% 15.43% 15.51% 15.08%
Net interest
margin 4.15% 4.43% 4.55% 4.59% 4.56%
Efficiency
ratio (ex-
cluding the
following
items): 61.54% 55.88% 54.73% 54.84% 54.29%
Securities
gains
(losses)
included
in other
income $ 173 $ (542) $ (708) $ (430) $ (430)
Other gains
(losses)
included
in other
income (13) 23 27 10 2
Other Selected
Ratios:
Average loans
to average
earning
assets 78.90% 78.84% 79.09% 78.65% 78.09%
Average loans
to average
deposits 91.64% 92.21% 92.39% 91.89% 91.35%
Average stock-
holders'
equity to
average
assets 8.67% 8.58% 8.58% 8.58% 8.60%
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of
March 31, 2007 South North
Georgia Georgia Florida
Market Market Market Treasury Total
-------------------------------------------------
Loans (Dollars in Thousands)
Commercial and
financial $ 30,968 $ 37,069 $ 1,262 $ 48 $ 69,347
Agricultural
(including loans
secured by farmland) 32,714 4,410 978 -- 38,102
Real estate
- construction 74,509 210,510 38,739 79 323,837
Real estate
- commercial 78,990 143,563 24,717 5,384 252,654
Real estate
- residential 117,246 25,570 7,888 2,321 153,025
Installment loans
to individuals
and others 15,059 1,379 74 1,446 17,958
-------------------------------------------------
349,486 422,501 73,658 9,278 854,923
Deferred loan
fees and unearned
interest, net 104 (574) (389) 12 (847)
-------------------------------------------------
Total loans 349,590 421,927 73,269 9,290 854,076
Allowance for
loan losses (4,239) (5,684) (930) (232) (11,085)
-------------------------------------------------
Net loans $345,351 $416,243 $ 72,339 $ 9,058 $ 842,991
=================================================
Percent of total 40.9% 49.4% 8.6% 1.1% 100.0%
=================================================
Deposits
Noninterest-bearing
demand $ 79,750 $ 14,187 $ 6,981 $ 6,999 $ 107,917
Interest-bearing
demand and savings 281,074 58,549 31,166 695 371,484
Time less than
$100,000 161,178 42,195 84,562 47 287,982
Time greater than
or equal to
$100,000 85,013 42,844 30,407 200 158,464
Brokered -- -- -- 28,569 28,569
-------------------------------------------------
Total deposits $607,015 $157,775 $153,116 $ 36,510 $ 954,416
=================================================
Percent of total 63.6% 16.5% 16.1% 3.8% 100.0%
=================================================
PAB BANKSHARES, INC.
LOAN PORTFOLIO
SUMMARY
The amount of loans outstanding at the indicated dates is presented
in the following table according to type of loan:
Period Ended
----------------------------------------------------
03/31/07 12/31/06 09/30/06 06/30/06 03/31/06
---------------------------------------------------------------------
(Dollars In Thousands)
Commercial
and financial $ 69,347 $ 66,376 $ 60,413 $ 53,185 $ 47,164
Agricultural
(including loans
secured by
farmland) 38,102 43,302 44,716 47,754 53,368
Real estate
- construction 323,837 295,246 297,026 304,387 290,863
Real estate
- commercial 252,654 255,462 253,586 251,966 229,236
Real estate
- residential 153,025 142,501 133,983 127,020 123,902
Installment loans
to individuals
and other loans 17,958 18,414 18,211 19,966 20,836
-------- -------- -------- -------- --------
854,923 821,301 807,935 804,278 765,369
Deferred loan
fees and unearned
interest, net (847) (997) (1,299) (1,243) (1,279)
-------- -------- -------- -------- --------
Total loans 854,076 820,304 806,636 803,035 764,090
Allowance for
loan losses (11,085) (11,006) (10,686) (10,903) (11,186)
-------- -------- -------- -------- --------
Net loans $842,991 $809,298 $795,950 $792,132 $752,904
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
----------------------------------------------------
03/31/07 12/31/06 09/30/06 06/30/06 03/31/06
---------------------------------------------------------------------
Commercial
and financial 8.12% 8.09% 7.49% 6.62% 6.17%
Agricultural
(including loans
secured by
farmland) 4.46% 5.28% 5.54% 5.95% 6.98%
Real estate
- construction 37.92% 35.99% 36.82% 37.89% 38.07%
Real estate
- commercial 29.58% 31.14% 31.44% 31.38% 30.00%
Real estate
- residential 17.92% 17.37% 16.61% 15.82% 16.22%
Installment loans
to individuals
and other loans 2.10% 2.25% 2.26% 2.49% 2.73%
-------- -------- -------- -------- --------
100.10% 100.12% 100.16% 100.15% 100.17%
Deferred loan
fees and unearned
interest, net -0.10% -0.12% -0.16% -0.15% -0.17%
-------- -------- -------- -------- --------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -1.30% -1.34% -1.32% -1.36% -1.46%
-------- -------- -------- -------- --------
Net loans 98.70% 98.66% 98.68% 98.64% 98.54%
======== ======== ======== ======== ========
PAB BANKSHARES, INC.
DEPOSIT PORTFOLIO
SUMMARY
The amounts on deposit at the indicated dates are presented in the
following table according to type of deposit account:
Period Ended
----------------------------------------------------
03/31/07 12/31/06 09/30/06 06/30/06 03/31/06
----------------------------------------------------
(Dollars In Thousands)
Noninterest-
bearing demand $107,917 $100,911 $100,703 $ 95,458 $107,200
Interest-bearing
demand and
savings 371,484 328,828 316,385 315,492 301,663
Time less
than $100,000 287,982 279,936 273,697 264,552 259,197
Time greater than
or equal
to $100,000 158,464 161,054 151,075 145,002 145,311
Brokered 28,569 37,754 41,841 36,274 41,853
-------- -------- -------- -------- --------
Total deposits $954,416 $908,483 $883,701 $856,778 $855,224
======== ======== ======== ======== ========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
----------------------------------------------------
03/31/07 12/31/06 09/30/06 06/30/06 03/31/06
----------------------------------------------------
Noninterest-
bearing demand 11.31% 11.11% 11.40% 11.14% 12.54%
Interest-bearing
demand and
savings 38.92% 36.19% 35.80% 36.82% 35.27%
Time less
than $100,000 30.18% 30.81% 30.97% 30.88% 30.31%
Time greater than
or equal
to $100,000 16.60% 17.73% 17.10% 16.93% 16.99%
Brokered 2.99% 4.16% 4.73% 4.23% 4.89%
-------- -------- -------- -------- --------
Total deposits 100.00% 100.00% 100.00% 100.00% 100.00%
======== ======== ======== ======== ========
PAB BANKSHARES, INC.
YIELD ANALYSIS
The following table details the average balances of interest-earning
assets and interest-bearing liabilities, the amount of interest
earned and paid, and the average yields and rates for the three
months ended March 31, 2007 and 2006. Federally tax-exempt income is
presented on a taxable-equivalent basis assuming a 35% Federal tax
rate. Loan average balances include loans on nonaccrual status.
For the Three Months Ended March 31,
(Dollars In Thousands)
2007
---------------------------------------------------------------------
Interest Average
Average Income/ Yield/
Balance Expense Rate
---------------------------------------------------------------------
Interest-earning assets:
Loans $ 834,070 $ 17,685 8.60%
Investment securities:
Taxable 157,340 2,012 5.19%
Nontaxable 29,333 438 6.05%
Other short-term investments 36,378 469 5.23%
--------------------------------
Total interest-earning assets $1,057,121 $ 20,604 7.91%
--------------------------------
Interest-bearing liabilities:
Demand deposits $ 297,988 $ 2,590 3.53%
Savings deposits 37,587 147 1.59%
Time deposits 473,550 5,716 4.90%
FHLB advances 90,112 1,052 4.73%
Notes payable 10,310 180 7.09%
Other short-term borrowings 9,105 98 4.35%
--------------------------------
Total interest-bearing
liabilities $ 918,652 $ 9,783 4.32%
--------------------------------
Interest rate spread 3.59%
=======
Net interest income $ 10,821
==========
Net interest margin 4.15%
=======
2006
---------------------------------------------------------------------
Interest Average
Average Income/ Yield/
Balance Expense Rate
---------------------------------------------------------------------
Interest-earning assets:
Loans $ 761,900 $ 15,400 8.20%
Investment securities:
Taxable 149,384 1,770 4.81%
Nontaxable 16,592 239 5.83%
Other short-term investments 47,823 522 4.43%
--------------------------------
Total interest-earning assets $ 975,699 $ 17,931 7.45%
--------------------------------
Interest-bearing liabilities:
Demand deposits $ 253,655 $ 1,595 2.55%
Savings deposits 40,618 112 1.12%
Time deposits 435,036 4,226 3.94%
FHLB advances 89,139 773 3.52%
Notes payable 10,310 219 8.63%
Other short-term borrowings 6,304 31 1.99%
--------------------------------
Total interest-bearing
liabilities $ 835,062 $ 6,956 3.38%
--------------------------------
Interest rate spread 4.07%
=======
Net interest income $ 10,975
==========
Net interest margin 4.56%
=======