VALDOSTA, Ga., Feb. 7, 2003 (PRIMEZONE) -- PAB Bankshares, Inc. (AMEX:PAB), the holding company for The Park Avenue Bank of Valdosta, Georgia, announced preliminary earnings for the fourth quarter ending December 31, 2002. The Company reported net income of $1.26 million, or $.13 per diluted share, for the quarter, compared to a net loss of $4.68 million, or -$.49 per diluted share, during the fourth quarter of 2001. The loss in the fourth quarter of 2001 was due primarily to an $11.2 million provision for loan losses taken during the period as compared to the $1.1 million provided in the fourth quarter of 2002. "While our earnings for the quarter and for the year are improved, 2003 will be even more challenging for us given the state of the economy, the shrinkage of our balance sheet and historic low interest rates," stated Michael E. Ricketson, President and Chief Executive Officer.
The Company's return on average assets for the fourth quarter of 2002 was .67% compared to -2.14% one year ago. The return on average equity for the fourth quarter of 2002 was 7.09% compared to -25.68% one year ago. The Company's net interest margin improved to 4.18% during the fourth quarter of 2002, compared to 3.32% one year ago.
For the year to date, the Company reported net income of $6.35 million, or $.67 per diluted share, compared to net income of $148,000, or $.02 per diluted share, for 2001.
At December 31, 2002, the Company's assets totaled $747.9 million, which is a 12.9% decrease compared to total assets of $859.1 million one year ago. The Company also reported total loans of $555.2 million and total deposits of $606.7 million at year end.
The allowance for loan losses was $12.1 million, or 2.18% of total loans, at December 31, 2002, compared to $15.8 million, or 2.47% of total loans, at December 31, 2001. Total nonperforming loans have decreased $5.7 million, or 35.4%, from a high of $16.1 million at June 30, 2002 to $10.4 million. As a percentage of total loans, total nonperforming loans were 1.87% at December 31, 2002. "We have made progress in improving our asset quality, but we still have a lot of work to do in order to get the level of nonperforming assets into a more acceptable range," Mr. Ricketson added. Net charge-offs amounted to 1.06% of average total loans for the year, compared to .75% for 2001.
The Company operates 18 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, 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) costs or difficulties related to the integration of our businesses, including our charter consolidations, and our merger partners may be greater than expected; (6) expected cost savings associated with mergers may not be fully realized or realized within the expected time frame; (7) deposit attrition, customer loss or revenue loss following mergers and charter consolidations may be greater than expected; (8) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; (9) adverse changes may occur in the bond and equity markets; and (10) 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 Financial Data
(In thousands, except per share and other data)
12/31/02 12/31/01 12/31/00 12/31/99
---------- ---------- ---------- ----------
Quarter To Date
(Columns may not total due to rounding)
Summary of
Operations:
Interest income $ 11,354 $ 14,492 $ 15,498 $ 12,966
Interest expense 4,142 7,833 8,338 6,033
---------- ---------- ---------- ----------
Net interest
income 7,212 6,659 7,160 6,933
---------- ---------- ---------- ----------
Provision for
loan losses 1,088 11,151 3,004 401
Other income 1,842 5,367 1,512 1,795
Other expense 6,197 7,909 6,586 5,271
---------- ---------- ---------- ----------
Income before
income tax
expense 1,769 (7,034) (918) 3,056
Income tax
expense 511 (2,352) (335) 800
---------- ---------- ---------- ----------
Net income $ 1,258 $ (4,682) $ (583) $ 2,256
========== ========== ========== ==========
Net interest
income on a
tax-equivalent
basis $ 7,253 $ 6,686 $ 7,188 $ 6,965
Securities gains
(losses) $ 203 $ 1,739 $ (4) $ (1)
Selected Average
Balances:
Total assets $ 749,221 $ 867,310 $ 737,495 $ 657,590
Earning assets 687,761 799,649 677,177 598,496
Loans 554,676 646,729 558,796 492,956
Deposits 607,295 717,228 584,480 507,295
Stockholders'
equity 70,373 72,351 71,977 69,471
Common Share Data:
Outstanding at
period end 9,430,413 9,409,913 9,501,947 9,617,406
Weighted average
outstanding 9,430,413 9,443,325 9,505,475 9,612,634
Diluted weighted
average
outstanding 9,462,289 9,491,166 9,552,088 9,749,162
Per Share Ratios:
Net income
- basic $ 0.13 $ (0.49) $ (0.06) $ 0.23
Net income
- diluted 0.13 (0.49) (0.06) 0.23
Dividends declared -- 0.11 0.11 0.10
Profitability &
Efficiency
Ratios (Annualized):
Return on average
assets (ROA) 0.67% -2.14% -0.31% 1.36%
Return on average
equity (ROE) 7.09% -25.68% -3.21% 12.90%
Net interest margin 4.18% 3.32% 4.22% 4.62%
Efficiency ratio 66.14% 86.94% 65.89% 53.98%
PAB Bankshares, Inc.
Selected Financial Data
(In thousands, except per share and other data)
12/31/02 12/31/01 12/31/00 12/31/99
---------- ---------- ---------- ----------
Year To Date
(Columns may not total due to rounding)
Summary of
Operations:
Interest income $ 48,079 $ 62,715 $ 57,526 $ 49,495
Interest expense 19,989 35,600 28,674 22,906
---------- ---------- ---------- ----------
Net interest
income 28,090 27,115 28,852 26,589
---------- ---------- ---------- ----------
Provision for
loan losses 2,575 12,220 4,099 985
Other income 8,013 11,923 5,756 6,060
Other expense 24,368 26,921 21,874 18,966
---------- ---------- ---------- ----------
Income before
income tax
expense 9,160 (103) 8,635 12,698
Income tax
expense 2,813 (251) 2,909 4,005
---------- ---------- ---------- ----------
Net income $ 6,347 $ 148 $ 5,726 $ 8,693
========== ========== ========== ==========
Net interest
income on a
tax-equivalent
basis $ 28,225 $ 27,216 $ 28,968 $ 26,718
Securities gains
(losses) $ 261 $ 1,741 $ (24) $ (34)
Selected Average
Balances:
Total assets $ 779,958 $ 847,100 $ 694,674 $ 629,634
Earning assets 719,352 780,120 640,889 576,729
Loans 586,712 616,156 534,340 467,149
Deposits 641,449 694,219 548,276 500,582
Stockholders'
equity 67,975 72,268 70,706 68,161
Common Share Data:
Outstanding at
period end 9,430,413 9,409,913 9,501,947 9,617,406
Weighted average
outstanding 9,426,761 9,482,709 9,528,387 9,612,634
Diluted weighted
average
outstanding 9,459,768 9,550,080 9,598,790 9,749,162
Per Share Ratios:
Net income
- basic $ 0.67 $ 0.02 $ 0.60 $ 0.90
Net income
- diluted 0.67 0.02 0.60 0.89
Dividends declared 0.11 0.44 0.43 0.39
Profitability &
Efficiency Ratios:
Return on average
assets (ROA) 0.81% 0.02% 0.82% 1.38%
Return on average
equity (ROE) 9.34% 0.20% 8.10% 12.75%
Net interest
margin 3.92% 3.49% 4.52% 4.63%
Efficiency ratio 67.04% 74.02% 60.39% 57.12%
PAB Bankshares, Inc.
Selected Financial Data
(In thousands, except per share and other data)
12/31/02 12/31/01 12/31/00 12/31/99
-------- -------- -------- --------
Selected Period End Balances:
Total assets $747,911 $859,143 $794,907 $664,969
Earning assets 683,456 790,546 722,490 606,744
Loans 555,238 637,825 580,737 494,417
Allowance for loan losses 12,097 15,765 8,185 5,037
Deposits 606,730 720,398 637,180 516,204
Stockholders' equity 71,265 65,372 70,780 69,611
Selected Asset Quality
Factors:
Nonaccrual loans $ 10,378 $ 10,581 $ 2,430 $ 2,395
Other impaired loans -- -- 4,433 --
Loans 90 days or more past
due and still accruing -- 1,598 509 273
Other real estate &
repossessions 1,284 1,312 567 763
Liquidity Ratios:
Total loans to total
deposits 91.51% 88.54% 91.14% 95.78%
Average loans to average
earning assets 81.56% 78.98% 83.37% 81.00%
Noninterest-bearing
deposits to total deposits 14.45% 11.31% 11.09% 12.58%
Capital Adequacy Ratios:
Average equity to average
assets 8.72% 8.53% 10.18% 10.83%
Dividend payout ratio 16.39% 2855.42% 72.08% 43.54%
Asset Quality Ratios:
Net charge-offs to average
loans (YTD) 1.06% 0.75% 0.26% 0.24%
Nonperforming loans to
total loans 1.87% 1.91% 1.27% 0.54%
Nonperforming assets to
total assets 1.56% 1.57% 0.99% 0.52%
Allowance for loan losses
to total loans 2.18% 2.47% 1.41% 1.02%
Allowance for loan losses to
nonperforming loans 116.56% 129.44% 111.03% 188.79%
Other Key Ratios:
Book value per share $ 7.56 $ 6.95 $ 7.45 $ 7.24
Assets per employee
($millions) 2.39 2.71 2.77 2.42