VALDOSTA, Ga., July 29, 2008 (PRIME NEWSWIRE) -- On Tuesday, July 29, 2008, PAB Bankshares, Inc. (Nasdaq:PABK), the holding company for The Park Avenue Bank, announced its financial results for the three months ended June 30, 2008. The Company reported net income of $1.5 million, or $0.15 per diluted share(1), for the second quarter of 2008, a 13% increase compared to net income of $1.3 million, or $0.14 per diluted share(1), for the first quarter of 2008, but a 55% decrease compared to net income of $3.2 million, or $0.33 per diluted share(1), for the second quarter of 2007. "Despite the difficult operating environment and the significant level of resources that we have had to deploy to address problem real estate loans, we continue to run a profitable, well-capitalized bank," stated Company President and CEO M. Burke Welsh, Jr.
At June 30, 2008, the total risk-based capital of The Park Avenue Bank was $113 million, or 11.1% of the bank's total risk-weighted assets, which exceeded the regulatory threshold to be considered adequately-capitalized by over $37 million and to be considered well-capitalized by over $20 million. "As we continue to workout or liquidate our problem assets, our focus will remain on preserving our strong capital position to enable us to pursue potential strategic opportunities within our markets once economic conditions improve. We reduced our cash dividend by 35% during the quarter in order to better balance our dividend payout to earnings and to maintain our capital position. Although we do not consider it necessary today, we are prepared to further reduce our dividend or increase our capital position via qualifying debt or equity issuances," stated Welsh.
The increase in earnings for the second quarter of 2008, compared to the first quarter of 2008, was due primarily to an 8% decrease in noninterest expenses offset by a 5% decrease in net interest income. The decrease in noninterest expenses is due to a reduction of overhead expenses such as personnel costs, advertising and business development expenses and courier fees offset by increases in legal and collection expenses and expenses related to other real estate owned. The decrease in earnings for the second quarter of 2008, compared to the second quarter of 2007, was due primarily to a 19% decrease in net interest income and a 425% increase in the provision for loan losses. Compared to both the first quarter of 2008 and the second quarter of 2007, the decline in net interest income is the combined result of a reduction in revenues related to our nonperforming assets and the impact of operating an asset-sensitive balance sheet in a declining interest rate environment. The increase in the provision for loan losses is due to an increase in nonperforming loans during the quarter and continued weakness in residential real estate in the Atlanta MSA. The earnings for the second quarter of 2008 resulted in a return on average assets ("ROA") of 0.49% and a return on average equity ("ROE") of 5.96%, both increases compared to the 0.44% ROA and 5.24% ROE reported for the first quarter of 2008, but decreases compared to the 1.12% ROA and 13.10% ROE reported for the second quarter of 2007.
"Adverse market conditions have continued to negatively impact our borrowers, and as a result, we have had to carry an increasingly higher level of nonperforming assets. We have set aside reserves to reflect realizable market values of the underlying collateral on these nonperforming assets. We have a plan in place to be more aggressive over the next three to four quarters to significantly reduce our level of nonperforming assets. We have reserved for these estimated losses, and we are prepared to move forward with quick liquidations when possible. However, if we attempt to aggressively liquidate this collateral in an unfavorable market, further losses may be realized. There are select pieces of real estate that we may continue to hold as an investment until the market recovers," added Welsh.
A summary of pertinent asset quality ratios for the Company follows.
* As of June 30, 2008, the Company reported total nonperforming assets of $59.4 million, or 4.86% of total assets, a $26.1 million increase during the quarter. The increase in nonperforming assets during the second quarter of 2008 was due primarily to a net increase of $14.4 million in residential construction and development loans defaulting and being placed on nonaccrual status during the quarter and another $9.8 million in residential construction and development loans being restructured and classified as troubled-debt restructurings during the quarter. * The majority of the $59.4 million in nonperforming assets is secured by residential real estate. Of the total, $8.8 million are in foreclosed assets and have been written down to the lower of cost or net realizable value. On the remaining $50.6 million, the Company has recorded $6.9 million as specific reserves within the allowance for loan losses and an additional $7.4 million in allocated general reserves for estimated losses. * At June 30, 2008, the underlying real estate collateral of our nonperforming assets consisted of (a) nine parcels of undeveloped land totaling 1,111 acres zoned for residential development with a total carrying value of $13.1 million, or an $11,800 per acre average, (b) 675 residential lots with a total carrying value of $21.1 million, or a $31,300 per lot average, (c) 83 residential houses with a total carrying value of $12.9 million, or a $155,400 per house average, and (d) 26 commercial properties with a total carrying value of $11.5 million, or a $442,300 per property average. * Loans to three real estate developers for various residential construction and development projects in Georgia and Florida represent $25.1 million, or 42%, of total nonperforming assets at quarter end. A total of $3.05 million in specific reserves has been established on these impaired assets. * The Company reported total loans on nonaccrual status or past due more than 89 days of $40.8 million, or 4.23% of total loans, at quarter end, a $14.7 million increase during the quarter. Approximately 84.1% of the loans on nonaccrual status at quarter end were construction and development loans, and these loans represented approximately 10.0% of the Company's total portfolio of construction and development loans. * The Company reported total loans past due 30-89 days of $6.0 million, or 0.63% of total loans, at quarter end, a $3.8 million decrease during the quarter. These loans are not included in total nonperforming assets at quarter end. Approximately 46.3% of the loans past due 30-89 days at quarter end were construction and development loans, and these loans represented approximately 0.8% of the Company's total portfolio of construction and development loans. * Loan loss provision expense was $1.05 million in the second quarter of 2008, compared to $1.2 million in the first quarter of 2008 and $200,000 in the second quarter of 2007. * Net charge-offs were approximately $622,000 in the second quarter of 2008, or 0.27% of average loans (annualized). * At June 30, 2008, the allowance for loan losses represented approximately 1.48% of total loans.
At June 30, 2008, the Company reported total assets of $1.22 billion, a nominal 2% increase from the $1.20 billion reported at December 31, 2007. For the year to date, total loans outstanding have increased $42 million, or 9% annualized, to $963 million, and total deposits have increased $16 million, or 3% annualized, to $997 million at June 30, 2008.
For the second quarter of 2008, the Company's net interest margin was 3.20%, a 21 basis point decrease compared to 3.41% in the first quarter of 2008 and a 90 basis point decrease compared to 4.10% in the second quarter of 2007. During the second quarter of 2008, the Company's nonperforming assets reduced interest income by approximately $804,000 and negatively impacted the net interest margin by 28 basis points, which was consistent with the 28 basis point impact in the first quarter of 2008, but was significantly higher than the three basis point impact in the second quarter of 2007. The Company's average yield on earning assets for the second quarter of 2008 was 6.24%, a 65 basis point decline compared to the first quarter of 2008 and a 169 basis point decline compared to the same period last year. The Company's average rate paid for interest-bearing deposits and other borrowings was 3.43% for the quarter, a 48 basis point decline compared to the first quarter of 2008 and a 97 basis point decrease compared to the second quarter of 2007.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 11:00 AM Eastern on Wednesday, July 30, 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=122445. 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 or (international) 412-858-4600.
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 or (International) 412-317-0088. The following replay passcodes will be required for playback access: 421143.
About PAB
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 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 asset quality, projected growth, capital position, our plans regarding our nonperforming assets, business opportunities in our markets and 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 continue to 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, 2007. The Company undertakes no obligation to revise these statements following the date of this press release.
(1) Adjusted for 2% stock dividend paid on July 15, 2008.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
Period Ended
------------------------------------------------------
06/30/08 03/31/08 12/31/07 09/30/07 06/30/07
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of
Operations:
Interest
income $ 17,460 $ 19,030 $ 21,013 $ 21,866 $ 21,345
Interest
expense 8,598 9,685 10,956 11,084 10,386
---------------------------------------------------------------------
Net interest
income 8,862 9,345 10,057 10,782 10,959
---------------------------------------------------------------------
Provision for
loan losses 1,050 1,200 1,800 400 200
Other income 1,572 1,643 1,682 1,471 1,359
Other expense 7,191 7,829 7,440 7,471 7,209
---------------------------------------------------------------------
Income
before
income tax
expense 2,193 1,959 2,499 4,382 4,909
Income tax
expense 730 662 858 1,523 1,688
---------------------------------------------------------------------
Net income $ 1,463 $ 1,297 $ 1,641 $ 2,859 $ 3,221
=====================================================================
Net interest
income on a
tax-
equivalent
basis $ 9,043 $ 9,522 $ 10,230 $ 10,948 $ 11,119
Per Share
Ratios:
Net income -
basic ** $ 0.16 $ 0.14 $ 0.17 $ 0.30 $ 0.33
Net income -
diluted ** 0.15 0.14 0.17 0.29 0.33
Dividends
declared for
period 0.095 0.145 0.145 0.145 0.145
Dividend
payout ratio 59.33% 102.39% 81.50% 47.14% 42.66%
Book value
at end of
period ** $ 10.26 $ 10.59 $ 10.38 $ 10.22 $ 9.96
Common Share
Data:
Outstanding
at period
end ** 9,324,407 9,337,641 9,406,956 9,474,954 9,663,229
Weighted
average
outstand-
ing ** 9,328,241 9,364,691 9,437,037 9,594,060 9,682,308
Diluted
weighted
average
outstand-
ing ** 9,376,186 9,423,606 9,526,228 9,725,661 9,845,435
Selected
Average
Balances:
Total assets $1,210,454 $1,194,717 $1,194,703 $1,185,839 $1,155,158
Earning assets 1,137,101 1,121,461 1,123,811 1,117,852 1,087,926
Loans 943,391 930,049 915,214 905,931 876,982
Deposits 984,114 967,426 977,666 970,515 935,100
Stockholders'
equity 98,757 99,557 98,567 97,499 98,678
Selected
Period End
Balances:
Total assets $1,222,368 $1,205,041 $1,198,671 $1,195,680 $1,169,967
Earning
assets 1,144,718 1,129,869 1,116,776 1,127,873 1,097,888
Loans 963,500 934,927 921,349 904,082 905,158
Allowance for
loan losses 14,303 13,875 12,906 11,497 11,342
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 996,595 972,104 980,149 979,792 945,847
Stockholders'
equity 95,677 98,866 97,676 96,833 96,290
Tier 1
regulatory
capital 100,492 100,010 100,885 101,647 103,397
Performance
Ratios:
Return on
average
assets 0.49% 0.44% 0.54% 0.96% 1.12%
Return on
average
stock-
holders'
equity 5.96% 5.24% 6.61% 11.63% 13.10%
Net interest
margin 3.20% 3.41% 3.61% 3.89% 4.10%
Efficiency
ratio
(excluding
the
following
items): 67.58% 70.87% 63.46% 60.54% 57.62%
Securities
gains
(losses)
included
in other
income $ 17 $ 183 $ 129 $ 49 $ (38)
Other gains
(losses)
included
in other
income (42) (66) 60 28 6
Selected Asset
Quality
Factors:
Nonaccrual
loans $ 40,464 $ 26,090 $ 11,405 $ 5,185 $ 1,986
Loans 90 days
or more past
due and
still
accruing 331 13 37 34 27
Other
impaired
loans
(troubled-
debt
restructur-
ings) 9,808 -- -- -- --
Other real
estate and
repossess-
ions 8,792 7,237 6,360 3,676 2,999
Asset Quality
Ratios:
Net charge-
offs to
average
loans
(annualized
YTD) 0.18% 0.10% 0.06% 0.02% -0.03%
Nonperforming
loans to
total loans 5.25% 2.79% 1.24% 0.58% 0.22%
Nonperforming
assets to
total assets 4.86% 2.77% 1.49% 0.74% 0.43%
Allowance for
loan losses
to total
loans 1.48% 1.48% 1.40% 1.27% 1.25%
Allowance
for loan
losses to
nonperforming
loans 28.26% 53.15% 112.79% 220.30% 563.32%
Other Selected
Ratios and
Nonfinancial
Data:
Average loans
to average
earning
assets 82.96% 82.93% 81.44% 81.04% 80.61%
Average loans
to average
deposits 95.86% 96.14% 93.61% 93.35% 93.78%
Average
stockholders'
equity to
average
assets 8.16% 8.33% 8.25% 8.22% 8.54%
Full-time
equivalent
employees 320 321 327 328 322
Bank branch
offices 20 20 20 20 20
Bank loan
production
offices 3 3 3 3 3
Bank ATMs 26 25 25 25 25
** Adjusted for 2% Stock Dividend Payable July 15, 2008
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
Period Ended
------------------------------------------------------
06/30/08 03/31/08 12/31/07 09/30/07 06/30/07
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of
Operations:
Interest
income $ 36,491 $ 19,030 $ 84,676 $ 63,663 $ 41,797
Interest
expense 18,283 9,685 42,210 31,253 20,169
---------------------------------------------------------------------
Net interest
income 18,208 9,345 42,466 32,410 21,628
---------------------------------------------------------------------
Provision for
loan losses 2,250 1,200 2,400 600 200
Other income 3,215 1,643 5,991 4,309 2,838
Other expense 15,020 7,829 29,590 22,150 14,679
---------------------------------------------------------------------
Income
before
income tax
expense 4,153 1,959 16,467 13,969 9,587
Income tax
expense 1,392 662 5,681 4,823 3,300
---------------------------------------------------------------------
Net income $ 2,761 $ 1,297 $ 10,786 $ 9,146 $ 6,287
=====================================================================
Net interest
income on a
tax-
equivalent
basis $ 18,565 $ 9,522 $ 43,120 $ 32,889 $ 21,941
Per Share
Ratios:
Net income -
basic ** $ 0.30 $ 0.14 $ 1.12 $ 0.95 $ 0.65
Net income -
diluted ** 0.29 0.14 1.11 0.93 0.64
Dividends
declared for
the period 0.240 0.145 0.580 0.435 0.290
Dividend
payout ratio 79.57% 102.39% 50.43% 44.85% 43.81%
Common Share
Data:
Weighted
average
outstand-
ing ** 9,346,466 9,364,691 9,602,535 9,658,307 9,690,963
Diluted
weighted
average
outstand-
ing ** 9,400,712 9,423,606 9,744,063 9,814,914 9,860,411
Selected
Average
Balances:
Total assets $1,202,585 $1,194,717 $1,165,307 $1,155,401 $1,139,930
Earning
assets 1,129,281 1,121,461 1,096,918 1,087,855 1,072,608
Loans 936,720 930,049 883,334 872,591 855,644
Deposits 975,770 967,426 948,613 938,822 922,713
Stockholders'
equity 99,157 99,557 98,055 97,883 98,077
Performance
Ratios:
Return on
average
assets 0.46% 0.44% 0.93% 1.06% 1.11%
Return on
average
stockholders'
equity 5.60% 5.24% 11.00% 12.49% 12.93%
Net interest
margin 3.31% 3.41% 3.93% 4.04% 4.13%
Efficiency
ratio
(excluding
the
following
items): 69.26% 70.87% 60.74% 59.88% 59.55%
Securities
gains
(losses)
included
in other
income $ 200 $ 183 $ 313 $ 184 $ 135
Other gains
(losses)
included
in other
income (108) (66) 81 21 (7)
Other Selected
Ratios:
Average loans
to average
earning
assets 82.95% 82.93% 80.53% 80.21% 79.77%
Average loans
to average
deposits 96.00% 96.14% 93.12% 92.95% 92.73%
Average
stockholders'
equity to
average
assets 8.25% 8.33% 8.41% 8.47% 8.60%
** Adjusted for 2% Stock Dividend Payable July 15, 2008
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY
MARKET South North
As of June 30, Georgia Georgia Florida
2008 Market Market Market Treasury Total
------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 32,339 $ 47,450 $ 2,262 $ 36 $ 82,087
Agricultural
(including loans
secured by
farmland) 36,145 4,691 6,055 -- 46,891
Real estate -
construction 80,317 205,864 57,542 670 344,393
Real estate -
commercial 91,899 154,474 25,208 4,381 275,962
Real estate -
residential 131,317 36,116 8,934 4,802 181,169
Installment
loans to
individuals and
others 13,635 5,831 179 13,592 33,237
------------------------------------------------
385,652 454,426 100,180 23,481 963,739
Deferred loan
fees and
unearned
interest, net 270 (184) (305) (20) (239)
------------------------------------------------
Total loans 385,922 454,242 99,875 23,461 963,500
Allowance for
loan losses (3,004) (9,524) (1,514) (261) (14,303)
------------------------------------------------
Net loans $382,918 $444,718 $ 98,361 $ 23,200 $949,197
================================================
Percent of total 40.3% 46.9% 10.4% 2.4% 100.0%
================================================
Deposits
Noninterest-
bearing demand $ 75,624 $ 16,309 $ 3,820 $ 7,156 $102,909
Interest-bearing
demand and
savings 259,652 45,635 30,431 641 336,359
Time less than
$100,000 161,271 42,628 88,462 620 292,981
Time greater than
or equal to
$100,000 99,544 32,849 43,421 100 175,914
Brokered -- -- -- 88,432 88,432
------------------------------------------------
Total deposits $596,091 $137,421 $166,134 $ 96,949 $996,595
================================================
Percent of total 59.8% 13.8% 16.7% 9.7% 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
-------------------------------------------------
6/30/08 3/31/08 12/31/07 9/30/07 6/30/07
-------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 82,087 $ 83,343 $ 78,730 $ 78,556 $ 78,048
Agricultural
(including loans
secured by
farmland) 46,891 42,573 41,861 42,608 46,973
Real estate -
construction 344,393 363,392 352,732 339,019 328,347
Real estate -
commercial 275,962 241,165 248,272 257,841 270,978
Real estate -
residential 181,169 179,091 174,157 164,967 161,404
Installment loans
to individuals and
other loans 33,237 25,704 26,011 21,691 20,246
-------- -------- -------- -------- --------
963,739 935,268 921,763 904,682 905,996
Deferred loan fees
and unearned
interest, net (239) (341) (414) (600) (839)
-------- -------- -------- -------- --------
Total loans 963,500 934,927 921,349 904,082 905,157
Allowance for loan
losses (14,303) (13,875) (12,906) (11,497) (11,342)
-------- -------- -------- -------- --------
Net loans $949,197 $921,052 $908,443 $892,585 $893,815
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
-------------------------------------------
6/30/08 3/31/08 12/31/07 9/30/07 6/30/07
-------------------------------------------
Commercial and financial 8.52% 8.91% 8.55% 8.69% 8.62%
Agricultural (including
loans secured by farmland) 4.87% 4.55% 4.54% 4.71% 5.19%
Real estate - construction 35.74% 38.87% 38.28% 37.50% 36.27%
Real estate - commercial 28.64% 25.80% 26.95% 28.52% 29.94%
Real estate - residential 18.80% 19.16% 18.90% 18.25% 17.83%
Installment loans to
individuals and other
loans 3.45% 2.75% 2.82% 2.40% 2.24%
------ ------ ------ ------ ------
100.02% 100.04% 100.04% 100.07% 100.09%
Deferred loan fees and
unearned interest, net -0.02% -0.04% -0.04% -0.07% -0.09%
------ ------ ------ ------ ------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for loan losses -1.48% -1.48% -1.40% -1.27% -1.25%
------ ------ ------ ------ ------
Net loans 98.52% 98.52% 98.60% 98.73% 98.75%
====== ====== ====== ====== ======
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
------------------------------------------------
06/30/08 03/31/08 12/31/07 09/30/07 06/30/07
-------- -------- -------- -------- --------
(Dollars In Thousands)
Noninterest-bearing
demand $102,909 $ 97,029 $ 89,423 $ 91,053 $ 98,862
Interest-bearing
demand and savings 336,359 331,184 354,743 362,079 349,720
Time less than
$100,000 292,981 298,799 312,722 315,532 300,856
Time greater than
or equal to $100,000 175,914 179,316 187,662 172,529 163,973
Brokered 88,432 65,776 35,599 38,599 32,436
-------- -------- -------- -------- --------
Total deposits $996,595 $972,104 $980,149 $979,792 $945,847
======== ======== ======== ======== ========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
--------------------------------------------
06/30/08 03/31/08 12/31/07 09/30/07 06/30/07
-------- -------- -------- -------- --------
Noninterest-bearing demand 10.33% 9.98% 9.12% 9.29% 10.45%
Interest-bearing demand
and savings 33.75% 34.07% 36.19% 36.96% 36.98%
Time less than $100,000 29.40% 30.74% 31.91% 32.20% 31.78%
Time greater than or
equal to $100,000 17.65% 18.44% 19.15% 17.61% 17.36%
Brokered 8.87% 6.77% 3.63% 3.94% 3.43%
------ ------ ------ ------ ------
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 three
months and six months ended June 30, 2008 and 2007. 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 June 30, 2008
---------------------------------------------------------------------
Interest Average
Average Income/ Yield/
Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning assets:
Loans $ 943,391 $ 15,140 6.45%
Investment securities:
Taxable 143,982 1,902 5.31%
Nontaxable 33,882 516 6.13%
Other short-term investments 15,845 83 2.10%
---------- ----------
Total interest-earning assets $1,137,100 $ 17,641 6.24%
---------- ----------
Interest-bearing liabilities:
Demand deposits $ 292,848 $ 1,339 1.84%
Savings deposits 36,168 53 0.59%
Time deposits 556,630 6,070 4.39%
FHLB advances 97,511 928 3.83%
Notes payable 10,310 113 4.40%
Other short-term borrowings 14,205 95 2.69%
---------- ----------
Total interest-bearing
liabilities $1,007,672 $ 8,598 3.43%
---------- ----------
Interest rate spread 2.81%
==========
Net interest income $ 9,043
==========
Net interest margin 3.20%
==========
For the Three Months Ended June 30, 2007
---------------------------------------------------------------------
Interest Average
Average Income/ Yield/
Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning assets:
Loans $ 876,982 $ 18,712 8.56%
Investment securities:
Taxable 162,827 2,085 5.14%
Nontaxable 30,370 457 6.04%
Other short-term investments 17,747 251 5.67%
---------- ----------
Total interest-earning assets $1,087,926 $ 21,505 7.93%
---------- ----------
Interest-bearing liabilities:
Demand deposits $ 311,097 $ 2,819 3.63%
Savings deposits 37,986 150 1.59%
Time deposits 484,208 6,057 5.02%
FHLB advances 90,512 1,038 4.60%
Notes payable 10,310 182 7.08%
Other short-term borrowings 13,208 140 4.26%
---------- ----------
Total interest-bearing
liabilities $ 947,321 $ 10,386 4.40%
---------- ----------
Interest rate spread 3.53%
==========
Net interest income $ 11,119
==========
Net interest margin 4.10%
==========
For the Six Months Ended June 30, 2008
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Interest Average
Average Income/ Yield/
Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning assets:
Loans $ 936,720 $ 31,797 6.83%
Investment securities:
Taxable 147,577 3,895 5.31%
Nontaxable 33,513 1,020 6.12%
Other short-term investments 11,471 136 2.38%
---------- ----------
Total interest-earning assets $1,129,281 $ 36,848 6.56%
---------- ----------
Interest-bearing liabilities:
Demand deposits $ 299,377 $ 3,265 2.19%
Savings deposits 35,755 129 0.72%
Time deposits 545,096 12,485 4.61%
FHLB advances 94,983 1,859 3.93%
Notes payable 10,310 281 5.48%
Other short-term borrowings 16,311 264 3.26%
---------- ----------
Total interest-bearing
liabilities $1,001,832 $ 18,283 3.67%
---------- ----------
Interest rate spread 2.89%
==========
Net interest income $ 18,565
==========
Net interest margin 3.31%
==========
For the Six Months Ended June 30, 2007
---------------------------------------------------------------------
Interest Average
Average Income/ Yield/
Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning assets:
Loans $ 855,644 $ 36,396 8.58%
Investment securities:
Taxable 160,099 4,098 5.16%
Nontaxable 29,855 895 6.05%
Other short-term investments 27,011 721 5.38%
---------- ----------
Total interest-earning assets $1,072,609 $ 42,110 7.92%
---------- ----------
Interest-bearing liabilities:
Demand deposits $ 304,578 $ 5,409 3.58%
Savings deposits 37,788 298 1.59%
Time deposits 478,909 11,773 4.96%
FHLB advances 90,313 2,089 4.67%
Notes payable 10,310 362 7.08%
Other short-term borrowings 11,168 238 4.29%
---------- ----------
Total interest-bearing $ 933,066 $ 20,169 4.36%
liabilities ---------- ----------
3.56%
Interest rate spread ==========
$ 21,941
Net interest income ==========
4.13%
Net interest margin ==========