VALDOSTA, Ga., Jan. 28, 2008 (PRIME NEWSWIRE) -- PAB Bankshares, Inc. Announces Financial Results for Fourth Quarter and Full-Year 2007 VALDOSTA, GA.: On Monday January 28, 2008, PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, announced its financial results for the fourth quarter and full-year 2007. "2007 proved to be a challenging year for most financial institutions and it appears that many of those challenges will continue throughout 2008. Our financial results for 2007 were not all we aspired to, but were respectable given the difficult operating environment," stated M. Burke Welsh Jr., President and Chief Executive Officer. "We have seen a severe decline in residential real estate activity in the metropolitan Atlanta region. However, South Georgia and North Florida markets have remained fairly stable. Our core deposit base, strong capital position and the diversity of three distinct markets are strengths that should enable us to manage through current conditions," added Welsh.
For the three months ended December 31, 2007, the Company reported net income of $1.64 million, or 18 cents per diluted share of common stock, a 50% decrease compared to $3.30 million, or 34 cents per diluted share, earned in the fourth quarter of 2006. The decrease in earnings for the fourth quarter of 2007 was due primarily to a $1.80 million provision for loan losses associated with residential real estate construction and development loans, or $1.17 million after taxes, and a $326,000 after tax decrease in net interest income. The earnings for the fourth quarter of 2007 resulted in a return on average assets ("ROA") of 0.54% and a return on average equity ("ROE") of 6.61%, both decreases compared to the 1.18% ROA and 13.76% ROE reported for the fourth quarter of 2006. For the twelve months ended December 31, 2007, the Company reported net income of $10.79 million, or $1.13 per diluted share of common stock, a 21% decrease compared to $13.74 million, or $1.41 per diluted share, earned in 2006. Similar to the fourth quarter results, the decrease in earnings for the year was due primarily to a $2.40 million provision for loan losses, or $1.56 million after taxes, and a $902,000 after tax decrease in net interest income. The earnings for the year resulted in a 0.93% ROA and an 11.00% ROE, both decreases compared to the 1.29% ROA and 14.99% ROE reported for the 2006 fiscal year.
At December 31, 2007, the Company reported total assets of $1.20 billion, a $77.9 million, or 7%, increase from the $1.12 billion in total assets reported at December 31, 2006. During the year, total loans outstanding increased $101.0 million, or 12%, to $921.3 million, and total deposits increased $71.7 million, or 8%, to $980.2 million. Additional information regarding the Company's financial results is provided in the tables accompanying this press release.
Earnings Release and Conference Call Schedule
Management has scheduled a conference call and webcast to discuss the Company's financial results at 9:00 AM Eastern on Tuesday, January 29, 2008. The conference call will be broadcast via the Internet using Windows Media Player. The webcast URL is http://www.talkpoint.com/viewer/starthere.asp?Pres=120209. 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) 800-860-2442. 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) 877-344-7529. The following replay passcodes will be required for playback access: 415070#.
About PABK
The Company is a $1.2 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank currently 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. 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 financial results for 2008, asset quality levels, credit losses, loan growth, deposit growth, real estate market conditions, interest rates, and general economic conditions, 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, including the Company's Annual Report on Form 10-K for the year ended December 31, 2006. 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
-----------------------------------------------------
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
---------------------------------------------------------------------
Summary of Operations:
Interest
income $ 21,013 $ 21,866 $ 21,345 $ 20,451 $ 20,239
Interest
expense 10,956 11,084 10,386 9,783 9,658
---------------------------------------------------------------------
Net interest
income 10,057 10,782 10,959 10,668 10,581
---------------------------------------------------------------------
Provision for
loan losses 1,800 400 200 -- --
Other income 1,682 1,471 1,359 1,478 1,578
Other expense 7,440 7,471 7,209 7,470 7,230
---------------------------------------------------------------------
Income before
income tax
expense 2,499 4,382 4,909 4,676 4,929
Income tax
expense 858 1,523 1,688 1,612 1,632
---------------------------------------------------------------------
Net income $ 1,641 $ 2,859 $ 3,221 $ 3,064 $ 3,297
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 10,230 $ 10,948 $ 11,119 $ 10,822 $ 10,732
Per Share Ratios:
Net income
- basic $ 0.18 $ 0.30 $ 0.34 $ 0.32 $ 0.35
Net income
- diluted 0.18 0.30 0.33 0.32 0.34
Dividends
declared for
period 0.145 0.145 0.145 0.145 0.140
Dividend payout
ratio 81.50% 47.14% 42.66% 45.02% 40.35%
Book value at
end of period $ 10.59 $ 10.42 $ 10.16 $ 10.26 $ 10.03
Common Share Data:
Outstanding at
period end 9,223,217 9,291,215 9,479,490 9,516,673 9,504,969
Weighted average
outstanding 9,253,298 9,410,321 9,498,569 9,515,976 9,500,837
Diluted weighted
average
outstanding 9,342,489 9,541,922 9,661,696 9,691,233 9,701,593
Selected Average
Balances:
Total assets $1,194,703 $1,185,839 $1,155,158 $1,124,534 $1,106,404
Earning assets 1,123,811 1,117,852 1,087,926 1,057,121 1,041,359
Loans 915,214 905,931 876,982 834,070 813,435
Deposits 977,666 970,515 935,100 910,188 887,028
Stockholders'
equity 98,567 97,499 98,678 97,470 95,091
Selected Period
End Balances:
Total assets $1,198,671 $1,195,680 $1,169,967 $1,171,845 $1,120,804
Earning assets 1,116,776 1,127,873 1,097,888 1,106,808 1,048,239
Loans 921,349 904,082 905,158 854,076 820,304
Allowance for
loan losses 12,906 11,497 11,342 11,085 11,006
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 980,149 979,792 945,847 954,416 908,483
Stockholders'
equity 97,676 96,833 96,290 97,657 95,316
Tier 1
regulatory
capital 100,885 101,647 103,397 102,173 100,330
Performance Ratios:
Return on
average assets 0.54% 0.96% 1.12% 1.11% 1.18%
Return on average
stockholders'
equity 6.61% 11.63% 13.10% 12.75% 13.76%
Net interest margin 3.61% 3.89% 4.10% 4.15% 4.09%
Efficiency ratio
(excluding the
following items): 63.46% 60.54% 57.62% 61.54% 59.51%
Securities gains
(losses) in-
cluded in
other income $ 129 $ 49 $ (38) $ 173 $ 166
Other gains
(losses) in-
cluded in other
income 60 28 6 (13) (4)
Selected Asset
Quality Factors:
Nonaccrual
loans $ 11,405 $ 5,185 $ 1,986 $ 4,192 $ 4,013
Loans 90 days
or more past
due and still
accruing 37 34 27 69 34
Other impaired
loans
(troubled-debt
restructurings) -- -- -- -- --
Other real estate
and
repossessions 6,360 3,676 2,999 362 988
Asset Quality Ratios:
Net charge-offs
to average loans
(annualized YTD) 0.06% 0.02% -0.03% -0.04% 0.01%
Nonperforming
loans to total
loans 1.24% 0.58% 0.22% 0.50% 0.49%
Nonperforming
assets to total
assets 1.49% 0.74% 0.43% 0.39% 0.45%
Allowance for loan
losses to total
loans 1.40% 1.27% 1.25% 1.30% 1.34%
Allowance for loan
losses to non-
performing loans 112.79% 220.30% 563.32% 260.13% 271.95%
Other Selected
Ratios and Non-
financial Data:
Average loans to
average earning
assets 81.44% 81.04% 80.61% 78.90% 78.11%
Average loans to
average deposits 93.61% 93.35% 93.78% 91.64% 91.70%
Average stock-
holders' equity
to average
assets 8.25% 8.22% 8.54% 8.67% 8.59%
Full-time equivalent
employees 327 328 322 329 321
Bank branch offices 20 20 20 20 19
Bank loan production
offices 3 3 3 3 3
Bank ATMs 25 25 25 25 23
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
(Dollars in thousands except per share and other data)
Period Ended
-----------------------------------------------------
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
---------------------------------------------------------------------
Summary of
Operations:
Interest income $ 84,676 $ 63,663 $ 41,797 $ 20,451 $ 77,566
Interest expense 42,210 31,253 20,169 9,783 33,555
---------------------------------------------------------------------
Net interest
income 42,466 32,410 21,628 10,668 44,011
---------------------------------------------------------------------
Provision for
loan losses 2,400 600 200 -- --
Other income 5,991 4,309 2,838 1,478 5,380
Other expense 29,590 22,150 14,679 7,470 28,167
---------------------------------------------------------------------
Income before
income tax
expense 16,467 13,969 9,587 4,676 21,224
Income tax
expense 5,681 4,823 3,300 1,612 7,488
---------------------------------------------------------------------
Net income $ 10,786 $ 9,146 $ 6,287 $ 3,064 $ 13,736
=====================================================================
Net interest
income on a tax-
equivalent
basis $ 43,120 $ 32,889 $ 21,941 $ 10,822 $ 44,507
Per Share Ratios:
Net income
- basic $ 1.14 $ 0.96 $ 0.66 $ 0.32 $ 1.45
Net income
- diluted 1.13 0.95 0.65 0.32 1.41
Dividends
declared for
the period 0.580 0.435 0.290 0.145 0.540
Dividend payout
ratio 50.43% 44.85% 43.81% 45.02% 37.36%
Common Share Data:
Weighted average
outstanding 9,418,796 9,474,568 9,507,224 9,515,976 9,499,434
Diluted weighted
average out-
standing 9,560,324 9,631,175 9,676,672 9,691,233 9,706,989
Selected Average
Balances:
Total assets $1,165,307 $1,155,401 $1,139,930 $1,124,534 $1,067,362
Earning assets 1,096,918 1,087,855 1,072,608 1,057,121 1,004,981
Loans 883,334 872,591 855,644 834,070 792,278
Deposits 948,613 938,822 922,713 910,188 859,216
Stockholders'
equity 98,055 97,883 98,077 97,470 91,611
Performance
Ratios:
Return on average
assets 0.93% 1.06% 1.11% 1.11% 1.29%
Return on average
stockholders'
equity 11.00% 12.49% 12.93% 12.75% 14.99%
Net interest margin 3.93% 4.04% 4.13% 4.15% 4.43%
Efficiency ratio
(excluding the
following
items): 60.74% 59.88% 59.55% 61.54% 55.88%
Securities gains
(losses)
included in
other income $ 313 $ 184 $ 135 $ 173 $ (542)
Other gains
(losses) in-
cluded in
other income 81 21 (7) (13) 23
Other Selected
Ratios:
Average loans to
average earning
assets 80.53% 80.21% 79.77% 78.90% 78.84%
Average loans to
average deposits 93.12% 92.95% 92.73% 91.64% 92.21%
Average stock-
holders' equity
to average assets 8.41% 8.47% 8.60% 8.67% 8.58%
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of December 31, 2007
South North
Georgia Georgia Florida
Market Market Market Treasury Total
-------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 33,519 $ 43,942 $ 1,230 $ 39 $ 78,730
Agricultural
(including loans
secured by
farmland) 29,398 4,398 8,065 -- 41,861
Real estate -
construction 78,079 218,479 55,662 512 352,732
Real estate -
commercial 83,139 137,115 23,432 4,586 248,272
Real estate -
residential 130,477 29,708 9,454 4,518 174,157
Installment
loans to
individuals and
others 14,158 5,491 148 6,214 26,011
------------------------------------------------
368,770 439,133 97,991 15,869 921,763
Deferred loan
fees and
unearned
interest, net 340 (367) (374) (13) (414)
------------------------------------------------
Total loans 369,110 438,766 97,617 15,856 921,349
Allowance for
loan losses (4,608) (8,085) (1,268) 1,055 (12,906)
------------------------------------------------
Net loans $364,502 $430,681 $ 96,349 $ 16,911 $908,443
================================================
Percent of total 40.1% 47.4% 10.6% 1.9% 100.0%
================================================
Deposits
Noninterest-
bearing demand $ 66,698 $ 14,161 $ 2,865 $ 5,699 $ 89,423
Interest-bearing
demand and
savings 267,551 53,086 33,732 374 354,743
Time less than
$100,000 166,466 52,509 93,650 97 312,722
Time greater
than or equal
to $100,000 104,355 39,966 43,241 100 187,662
Brokered -- -- -- 35,599 35,599
------------------------------------------------
Total deposits $605,070 $159,722 $173,488 $ 41,869 $980,149
================================================
Percent of total 61.7% 16.3% 17.7% 4.3% 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
-----------------------------------------------------
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
--------- --------- --------- --------- ---------
(Dollars In Thousands)
Commercial and
financial $ 78,730 $ 78,556 $ 78,048 $ 69,347 $ 66,376
Agricultural
(including
loans secured
by farmland) 41,861 42,608 46,973 38,102 43,302
Real estate -
construction 352,732 339,019 328,347 323,837 295,246
Real estate -
commercial 248,272 257,841 270,978 252,654 255,462
Real estate -
residential 174,157 164,967 161,404 153,025 142,501
Installment
loans to
individuals
and other
loans 26,011 21,691 20,246 17,958 18,414
--------- --------- --------- --------- ---------
921,763 904,682 905,996 854,923 821,301
Deferred loan
fees and
unearned
interest, net (414) (600) (839) (847) (997)
--------- --------- --------- --------- ---------
Total loans 921,349 904,082 905,157 854,076 820,304
Allowance for
loan losses (12,906) (11,497) (11,342) (11,085) (11,006)
--------- --------- --------- --------- ---------
Net loans $ 908,443 $ 892,585 $ 893,815 $ 842,991 $ 809,298
========= ========= ========= ========= =========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
-----------------------------------------------------
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
--------- --------- --------- --------- ---------
Commercial and
financial 8.55% 8.69% 8.62% 8.12% 8.09%
Agricultural
(including
loans secured
by farmland) 4.54% 4.71% 5.19% 4.46% 5.28%
Real estate -
construction 38.28% 37.50% 36.27% 37.92% 35.99%
Real estate -
commercial 26.95% 28.52% 29.94% 29.58% 31.14%
Real estate -
residential 18.90% 18.25% 17.83% 17.92% 17.37%
Installment
loans to
individuals
and other
loans 2.82% 2.40% 2.24% 2.10% 2.25%
--------- --------- --------- --------- ---------
100.04% 100.07% 100.09% 100.10% 100.12%
Deferred loan
fees and
unearned
interest, net -0.04% -0.07% -0.09% -0.10% -0.12%
--------- --------- --------- --------- ---------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -1.40% -1.27% -1.25% -1.30% -1.34%
--------- --------- --------- --------- ---------
Net loans 98.60% 98.73% 98.75% 98.70% 98.66%
========= ========= ========= ========= =========
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
-----------------------------------------------------
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
--------- --------- --------- --------- ---------
(Dollars In Thousands)
Noninterest-
bearing demand $89,423 $91,053 $98,862 $107,917 $100,911
Interest-
bearing
demand and
savings 354,743 362,079 349,720 371,484 328,828
Time less than
$100,000 312,722 315,532 300,856 287,982 279,936
Time greater
than or equal
to $100,000 187,662 172,529 163,973 158,464 161,054
Brokered 35,599 38,599 32,436 28,569 37,754
--------- --------- --------- --------- ---------
Total deposits $980,149 $979,792 $945,847 $954,416 $908,483
========= ========= ========= ========= =========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
-----------------------------------------------------
12/31/07 09/30/07 06/30/07 03/31/07 12/31/06
--------- --------- --------- --------- ---------
Noninterest-
bearing demand 9.12% 9.29% 10.45% 11.31% 11.11%
Interest-
bearing demand
and savings 36.19% 36.96% 36.98% 38.92% 36.19%
Time less than
$100,000 31.91% 32.20% 31.78% 30.18% 30.81%
Time greater
than or equal
to $100,000 19.15% 17.61% 17.36% 16.60% 17.73%
Brokered 3.63% 3.94% 3.43% 2.99% 4.16%
--------- --------- --------- --------- ---------
Total deposits 100.00% 100.00% 100.00% 100.00% 100.00%
========= ========= ========= ========= =========
PAB BANKSHARES, INC.
YIELD ANALYSIS
The following tables detail 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 twelve months ended
December 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 Twelve Months
Ended December 31, 2007 2006
----------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
(Dollars In Thousands)
Interest-
earning
assets:
Loans $ 883,334 $ 74,060 8.38% $ 792,278 $ 67,354 8.50%
Investment
securities:
Taxable 159,510 8,211 5.15% 156,059 7,719 4.95%
Nontaxable 30,998 1,868 6.03% 24,104 1,419 5.89%
Other short-
term
investments 23,076 1,191 5.16% 32,540 1,571 4.83%
--------------------- -------------------
Total
interest-
earning
assets $1,096,918 $ 85,330 7.78% $1,004,981 $ 78,063 7.77%
--------------------- -------------------
Interest-
bearing
liabilities:
Demand
deposits $ 309,037 $ 11,049 3.58% $ 266,374 $ 8,221 3.09%
Savings
deposits 37,231 564 1.51% 39,366 526 1.34%
Time
deposits 503,870 25,275 5.02% 453,004 19,708 4.35%
FHLB
advances 88,569 4,069 4.59% 90,115 3,848 4.27%
Notes
payable 10,310 727 7.05% 12,118 1,021 8.42%
Other short-
term
borrowings 12,392 526 4.25% 6,843 232 3.39%
--------------------- -------------------
Total
interest-
bearing
liabilities $ 961,409 $ 42,210 4.39% $ 867,820 $ 33,556 3.87%
--------------------- -------------------
Interest rate
spread 3.39% 3.90%
======= =======
Net interest
income $ 43,120 $ 44,507
======== ========
Net interest
margin 3.93% 4.43%
======= =======