VALDOSTA, Ga., Jan. 29, 2009 (GLOBE NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the parent company for The Park Avenue Bank, announced its consolidated financial results for the fourth quarter and full-year 2008. During the fourth quarter of 2008, the Company provided $8.5 million to its allowance for loan losses due to an increase in problem loans and deteriorating economic conditions. In addition, the Company reported $752,000 in net losses on other real estate owned, $1.1 million of uncollectable interest income reversed on nonperforming loans, $712,000 in legal, collection and carrying charges related to its nonperforming assets, and $2.0 million in previously-announced, one-time charges to exit two markets during the quarter. The total of the provision for loan losses, the expenses related to the nonperforming assets and the costs to exit two markets amounted to $13.1 million for the quarter. As a result of these events, the Company reported a net loss of $5.8 million, or $0.60 per diluted share, for the three months ended December 31, 2008. "The slowdown in the economy and the continued deterioration in the Atlanta residential real estate market resulted in a net loss to the Company for 2008. However, the stability of our core banking operations remains the strength of our Company. We greatly appreciate our loyal customer base and our shareholders for their continued support. It will take time, but I am confident in our ability to return to profitability after we have completed addressing our asset quality issues," stated Company President and CEO M. Burke Welsh, Jr.
For the year ended December 31, 2008, the Company reported a net loss of $5.9 million, or $0.63 per diluted share, compared to net earnings of $10.8 million, or $1.11 per diluted share, for 2007. Similar to the fourth quarter results, the decrease in earnings for the year was due primarily to a $15.65 million increase in the provision for loan losses, the $3.6 million decrease in net interest income caused by nonperforming loans and the $1.3 million net loss realized on other real estate owned. The loss for the year resulted in a return on average assets ("ROA") of -0.48% and a return on average equity ("ROE") of -6.10%, both decreases compared to the 0.93% ROA and 11.00% ROE reported for the 2007 fiscal year.
At December 31, 2008, the Company reported total assets of $1.35 billion, a $151.4 million, or 13%, increase from the $1.20 billion in total assets reported at December 31, 2007. During the year, total loans outstanding increased $35.3 million, or 4%, to $956.7 million, and total deposits increased $143.6 million, or 15%, to $1.12 billion. "Despite the net loss for the year, we remain well-capitalized. Our subsidiary's total risk-based capital was $105 million, or 10.34% of the bank's total risk-weighted assets, at year end," added Welsh. Additional information regarding the Company's financial results is provided in the tables accompanying this press release.
Asset Quality
A summary of pertinent asset quality ratios for the Company as of December 31, 2008 follows.
* Total nonperforming assets equaled $80.7 million, or 5.98% of total
assets, a $15.4 million increase during the quarter. Nonperforming
assets consisted of $54.9 million in nonaccrual loans, $25.3
million in foreclosed real estate and other repossessed assets,
$311,000 in loans classified as troubled-debt restructurings and
$206,000 in loans past due 90 days or more and still accruing
interest.
* For the fourth quarter ended December 31, 2008, the Company charged
off $9.4 million in loans and recovered $70,000 in loans previously
charged-off for an annualized net charge-off ratio of 3.83% of
average loans.
* For the year ended December 31, 2008, the Company charged off $12.1
million in loans and recovered $545,000 in loans previously charged-
off for a net charge-off ratio of 1.21% of average loans.
* The allowance for loan losses represented approximately 2.03% of
total loans and 34.97% of total nonperforming loans.
* The Company wrote down $5.8 million of its nonperforming loans
during the fourth quarter and allocated an additional $4.1 million
of its allowance for loan losses for the remaining balance of the
$54.4 million in nonperforming loans at year end, resulting in a
7.4% reserve ratio on the remaining balance of nonperforming loans.
* The nonperforming loans consisted of:
---------------------------------------------------------------------
Average
Net Carrying Collateral Carrying
Category Value * Description Value/ Unit
---------------------------------------------------------------------
Construction and
Development $9.3 million 7 parcels of $12,600 per
undeveloped acre
land totaling
738 acres
---------------------------------------------------------------------
Construction and
Development $14.0 million 506 residential $27,700
lots per lot
---------------------------------------------------------------------
1-4 Family
Residential $8.3 million 80 houses $104,000
per house
---------------------------------------------------------------------
Commercial Real
Estate $8.3 million 17 commercial $488,000 per
properties property
---------------------------------------------------------------------
Commercial and
Industrial $2.8 million Non-real estate $404,000 per
collateral loan
---------------------------------------------------------------------
Multi-Family
Residential $8.6 million 9 condominium $950,000
units per unit
---------------------------------------------------------------------
Consumer $97,000 Non-real estate $5,700 per
collateral loan
---------------------------------------------------------------------
* The term "net carrying value" represents the book value of the
loan less any allocated allowance for loan losses.
* Foreclosed properties included:
---------------------------------------------------------------------
Category Book Value Description Average Value/
Unit
---------------------------------------------------------------------
Construction and
Development $4.4 million 5 parcels of $7,500 per acre
undeveloped
land totaling
582 acres
---------------------------------------------------------------------
Construction and
Development $6.3 million 267 residential
lots $24,000 per lot
---------------------------------------------------------------------
1-4 Family
Residential $9.7 million 54 houses $180,000 per
house
---------------------------------------------------------------------
Commercial
Real Estate $4.9 million 19 commercial $258,000 per
properties property
---------------------------------------------------------------------
* The Company had loans to four real estate developers for various
residential construction and development projects in Georgia and
Florida which represent $29.7 million, or 37%, of total
nonperforming assets, of which, $22.6 million were in nonperforming
loans and $7.1 million were in other real estate owned at year
end. A total of $4.8 million was charged-off on these
relationships in the fourth quarter of 2008 and an additional
$560,000 in specific reserves has been established on the remaining
balance in nonperforming loans.
* Approximately $5.4 million, or 10% of total nonperforming loans,
were in various stages of bankruptcy at year end, which has limited
the Company's ability to resolve those problem assets to date.
* Approximately 66% of nonperforming loans were construction and
development loans, and these loans represented approximately 11% of
the Company's total portfolio of construction and development loans.
* The Company reported total loans past due 30-89 days of $21.4
million, or 2.23% of total loans, a $13.2 million increase during
the quarter. These loans are not included in nonperforming assets
at quarter end. Approximately 46% of the loans past due 30-89 days
were construction and development loans.
Conference Call
Management will host a conference call and webcast to discuss the Company's quarterly financial results at 10:00 AM Eastern on Friday, January 30, 2009. 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=124864. 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) +1 412-858-4600.
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) +1 412-317-0088. The following replay passcodes will be required for playback access: 427257.
About PAB
The Company is a $1.35 billion bank holding company headquartered in Valdosta, Georgia, and its sole operating subsidiary is The Park Avenue Bank. Founded in 1956, the Bank operates through 18 branch offices and two loan production offices in 13 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, our 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 further deterioration in credit quality and/or a reduction in demand for credit; (4) continued weakness in the real estate market has adversely affected us and may continue to adversely affect us; (5) legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect the businesses in which we are engaged; (6) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; (7) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (8) adverse changes may continue to occur in the bond and equity markets; (9) our ability to raise capital to protect against further deterioration in our loan portfolio may be limited due to unfavorable conditions in the equity markets; (10) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (11) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (12) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (13) 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.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
Period Ended
----------------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
---------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 16,814 $ 17,680 $ 17,460 $ 19,030 $ 21,013
Interest
expense 9,476 8,460 8,598 9,685 10,956
---------------------------------------------------------------------
Net
interest
income 7,338 9,220 8,862 9,345 10,057
---------------------------------------------------------------------
Provision
for loan
losses 8,500 7,300 1,050 1,200 1,800
Other
income 107 1,081 1,572 1,643 1,682
Other
expense 8,053 7,510 7,191 7,829 7,440
---------------------------------------------------------------------
Income
before
income
tax
expense (9,108) (4,509) 2,193 1,959 2,499
Income tax
expense (3,297) (1,649) 730 662 858
---------------------------------------------------------------------
Net
income $ (5,811) $ (2,860) $ 1,463 $ 1,297 $ 1,641
=====================================================================
Net
interest
income on
a tax-
equivalent
basis $ 7,470 $ 9,397 $ 9,043 $ 9,522 $ 10,230
Per Share
Ratios:
Net income
- basic** $ (0.62) $ (0.31) $ 0.16 $ 0.14 $ 0.17
Net income
- diluted** (0.60) (0.32) 0.15 0.14 0.17
Dividends
declared
for period -- -- 0.095 0.145 0.145
Dividend
payout
ratio 0.00% 0.00% 59.33% 102.39% 81.50%
Book value
at end of
period** $ 9.82 $ 9.97 $ 10.26 $ 10.59 $ 10.38
Common
Share
Data:
Outstanding
at period
end** 9,324,407 9,324,407 9,324,407 9,337,641 9,406,956
Weighted
average
outstan-
ding ** 9,324,407 9,324,407 9,328,241 9,364,691 9,437,037
Diluted
weighted
average
outstan-
ding ** 9,324,407 9,325,783 9,376,186 9,423,606 9,526,228
Selected
Average
Balances:
Total
assets $1,311,529 $1,238,010 $1,210,454 $1,194,717 $1,194,703
Earning
assets 1,236,651 1,166,498 1,137,101 1,121,461 1,123,811
Loans 974,151 973,017 943,391 930,049 915,214
Deposits 1,083,862 1,010,201 984,114 967,426 977,666
Stock-
holders'
equity 93,086 96,160 98,757 99,557 98,567
Selected
Period End
Balances:
Total
assets $1,350,103 $1,257,869 $1,222,368 $1,205,041 $1,198,671
Earning
assets 1,259,495 1,186,292 1,144,718 1,129,869 1,116,776
Loans 956,687 982,571 963,500 934,927 921,349
Allowance
for loan
losses 19,374 20,240 14,303 13,875 12,906
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 1,123,703 1,029,844 996,595 972,104 980,149
Stock-
holders'
equity 91,601 92,981 95,677 98,866 97,676
Tier 1
regulatory
capital 91,962 97,715 100,492 100,010 100,885
Performance
Ratios:
Return on
average
assets -1.76% -0.92% 0.49% 0.44% 0.54%
Return on
average
stock-
holders'
equity -24.84% -11.83% 5.96% 5.24% 6.61%
Net
interest
margin 2.40% 3.20% 3.20% 3.41% 3.61%
Efficiency
ratio
(excluding
the
following
items): 73.47% 68.84% 67.58% 70.87% 63.46%
Securities
gains
(losses)
included
in other
income $ 23 $ 2 $ 17 $ 183 $ 129
Other
gains
(losses)
included
in other
income (820) (434) (42) (66) 60
Selected
Asset
Quality
Factors:
Nonaccrual
loans $ 54,903 $ 43,471 $ 40,464 $ 26,090 $ 11,405
Loans 90
days or
more past
due and
still
accruing 206 4 331 13 37
Other
impaired
loans
(troubled-
debt
restructur-
ings) 311 9,808 9,808 -- --
Other real
estate and
reposse-
ssions 25,269 11,972 8,792 7,237 6,360
Asset
Quality
Ratios:
Net charge-
offs to
average
loans
(annualized
YTD) 1.21% 0.31% 0.18% 0.10% 0.06%
Non-
performing
loans to
total
loans 5.79% 5.42% 5.25% 2.79% 1.24%
Non-
performing
assets to
total
assets 5.98% 5.19% 4.86% 2.77% 1.49%
Allowance
for loan
losses to
total
loans 2.03% 2.06% 1.48% 1.48% 1.40%
Allowance
for loan
losses to
non-
performing
loans 34.96% 37.99% 28.26% 53.15% 112.79%
Other
Selected
Ratios and
Non-
financial
Data:
Average
loans to
average
earning
assets 78.77% 83.41% 82.96% 82.93% 81.44%
Average
loans to
average
deposits 89.88% 96.32% 95.86% 96.14% 93.61%
Average
stock-
holders'
equity to
average
assets 7.10% 7.77% 8.16% 8.33% 8.25%
Full-time
equivalent
employees 299 314 320 321 327
Bank branch
offices 20 20 20 20 20
Bank loan
production
offices 3 3 3 3 3
Bank ATMs 26 26 26 25 25
**Adjusted for 2% Stock Dividend Paid on July 15, 2008
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
Period Ended
----------------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
---------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 70,984 $ 54,170 $ 36,491 $ 19,030 $ 84,676
Interest
expense 36,218 26,742 18,283 9,685 42,210
---------------------------------------------------------------------
Net
interest
income 34,766 27,428 18,208 9,345 42,466
---------------------------------------------------------------------
Provision
for loan
losses 18,050 9,550 2,250 1,200 2,400
Other
income 4,403 4,296 3,215 1,643 5,991
Other
expense 30,584 22,531 15,020 7,829 29,590
---------------------------------------------------------------------
Income
before
income
tax
expense (9,465) (357) 4,153 1,959 16,467
Income tax
expense (3,554) (257) 1,392 662 5,681
---------------------------------------------------------------------
Net
income $ (5,911) $ (100) $ 2,761 $ 1,297 $ 10,786
=====================================================================
Net
interest
income on
a tax-
equivalent
basis $ 35,432 $ 27,962 $ 18,565 $ 9,522 $ 43,120
Per Share
Ratios:
Net income
- basic** $ (0.63) $ (0.01) $ 0.30 $ 0.14 $ 1.12
Net income
-diluted** (0.63) (0.01) 0.29 0.14 1.11
Dividends
declared
for the
period 0.240 0.240 0.240 0.145 0.580
Dividend
payout
ratio -37.16% -2213.13% 79.57% 102.39% 50.43%
Common
Share
Data:
Weighted
average
outstan-
ding ** 9,335,376 9,339,059 9,346,466 9,364,691 9,602,535
Diluted
weighted
average
outstan-
ding** 9,352,375 9,372,897 9,400,712 9,423,606 9,744,063
Selected
Average
Balances:
Total
assets $1,238,875 $1,214,480 $1,202,585 $1,194,717 $1,165,307
Earning
assets 1,165,625 1,141,777 1,129,281 1,121,461 1,096,918
Loans 955,253 948,908 936,720 930,049 883,334
Deposits 1,011,596 987,331 975,770 967,426 948,613
Stock-
holders'
equity 96,877 98,151 99,157 99,557 98,055
Performance
Ratios:
Return on
average
assets -0.48% -0.01% 0.46% 0.44% 0.93%
Return on
average
stock-
holders'
equity -6.10% -0.14% 5.60% 5.24% 11.00%
Net
interest
margin 3.04% 3.27% 3.31% 3.41% 3.93%
Efficiency
ratio
(excluding
the
following
items): 70.01% 69.12% 69.26% 70.87% 60.74%
Securities
gains
(losses)
included
in other
income $ 225 $ 202 $ 200 $ 183 $ 313
Other
gains
(losses)
included
in other
income (1,362) (542) (108) (66) 81
Other
Selected
Ratios:
Average
loans to
average
earning
assets 81.95% 83.11% 82.95% 82.93% 80.53%
Average
loans to
average
deposits 94.43% 96.11% 96.00% 96.14% 93.12%
Average
stock-
holders'
equity to
average
assets 7.82% 8.08% 8.25% 8.33% 8.41%
**Adjusted for 2% Stock Dividend Paid on July 15, 2008
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of December 31, 2008
South North
Georgia Georgia Florida
Market Market Market Treasury Total
--------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 34,588 $ 50,631 $ 2,292 $ 19 $ 87,530
Agricultural
(including loans
secured by
farmland) 35,484 6,804 6,359 -- 48,647
Real estate -
construction 74,174 181,858 58,454 1,300 315,786
Real estate -
commercial 92,639 151,998 25,445 6,563 276,645
Real estate -
residential 138,832 43,562 8,974 4,938 196,306
Installment loans
to individuals
and others 13,229 5,824 154 12,877 32,084
--------------------------------------------------
388,946 440,677 101,678 25,697 956,998
Deferred loan fees
and unearned
interest, net 139 (177) (236) (36) (310)
--------------------------------------------------
Total loans 389,085 440,500 101,442 25,661 956,688
Allowance for loan
losses (4,730) (10,131) (2,740) (1,773) (19,374)
--------------------------------------------------
Net loans $384,355 $430,369 $ 98,702 $ 23,888 $ 937,314
==================================================
Percentage of
total 41.0% 45.9% 10.5% 2.6% 100.0%
==================================================
Deposits
Noninterest-bearing
demand $ 70,305 $ 14,922 $ 3,154 $ 2,733 $ 91,114
Interest-bearing
demand and savings 204,670 23,742 23,100 610 252,122
Time less than
$100,000 189,925 46,541 91,462 401 328,329
Time greater than
or equal to
$100,000 128,457 28,707 41,474 207 198,845
Retail placed in
CDARs program 39,544 7,146 -- -- 46,690
Brokered -- -- -- 206,603 206,603
--------------------------------------------------
Total deposits $632,901 $121,058 $159,190 $210,554 $1,123,703
==================================================
Percentage of
total 56.3% 10.8% 14.2% 18.7% 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
------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 87,530 $ 91,401 $ 82,087 $ 83,343 $ 78,730
Agricultural
(including loans
secured by farmland) 48,647 49,227 46,891 42,573 41,861
Real estate -
construction 315,786 332,901 344,393 363,392 352,732
Real estate -
commercial 276,645 281,781 275,962 241,165 248,272
Real estate -
residential 196,306 195,439 181,169 179,091 174,157
Installment loans to
individuals and
other loans 32,084 32,075 33,237 25,704 26,011
-------- -------- -------- -------- --------
956,998 982,824 963,739 935,268 921,763
Deferred loan fees
and unearned
interest, net (310) (253) (239) (341) (414)
-------- -------- -------- -------- --------
Total loans 956,688 982,571 963,500 934,927 921,349
Allowance for loan
losses (19,374) (20,240) (14,303) (13,875) (12,906)
-------- -------- -------- -------- --------
Net loans $937,314 $962,331 $949,197 $921,052 $908,443
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
------------------------------------------------
Commercial and
financial 9.15% 9.30% 8.52% 8.91% 8.55%
Agricultural
(including loans
secured by farmland) 5.08% 5.01% 4.87% 4.55% 4.54%
Real estate -
construction 33.01% 33.88% 35.74% 38.87% 38.28%
Real estate -
commercial 28.92% 28.68% 28.64% 25.80% 26.95%
Real estate -
residential 20.52% 19.89% 18.80% 19.16% 18.90%
Installment loans to
individuals and
other loans 3.35% 3.27% 3.45% 2.75% 2.82%
-------- -------- -------- -------- --------
100.03% 100.03% 100.02% 100.04% 100.04%
Deferred loan fees
and unearned
interest, net -0.03% -0.03% -0.02% -0.04% -0.04%
-------- -------- -------- -------- --------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for loan
losses -2.03% -2.06% -1.48% -1.48% -1.40%
-------- -------- -------- -------- --------
Net loans 97.97% 97.94% 98.52% 98.52% 98.60%
======== ======== ======== ======== ========
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
----------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
----------------------------------------------------
(Dollars In Thousands)
Noninterest-
bearing demand $ 91,114 $ 101,417 $102,909 $ 97,029 $ 89,423
Interest-bearing
demand and
savings 252,122 262,723 336,359 331,184 354,743
Time less than
$100,000 328,329 323,377 292,981 298,799 312,722
Time greater than
or equal to
$100,000 198,845 182,491 175,914 179,316 187,662
Retail placed in
CDARs program 46,690 18,343 -- -- --
Brokered 206,603 141,493 88,432 65,776 35,599
---------- ---------- -------- -------- --------
Total deposits $1,123,703 $1,029,844 $996,595 $972,104 $980,149
========== ========== ======== ======== ========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
----------------------------------------------------
12/31/08 09/30/08 06/30/08 03/31/08 12/31/07
----------------------------------------------------
Noninterest-
bearing demand 8.11% 9.85% 10.33% 9.98% 9.12%
Interest-bearing
demand and
savings 22.44% 25.51% 33.75% 34.07% 36.19%
Time less than
$100,000 29.22% 31.40% 29.40% 30.74% 31.91%
Time greater than
or equal to
$100,000 17.69% 17.72% 17.65% 18.44% 19.15%
Retail placed in
CDARs program 4.15% 1.78% -- -- --
Brokered 18.39% 13.74% 8.87% 6.77% 3.63%
---------- ---------- -------- -------- --------
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 twelve months ended December 31, 2008 and 2007. Federally
tax-exempt income is presented on a taxable-equivalent basis assuming
a 34% Federal tax rate in 2008 and a 35% Federal tax rate in 2007.
Loan average balances include loans on nonaccrual status.
For the Three Months Ended December 31,
2008 2007
----------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning
assets:
Loans $ 974,151 $14,499 5.92% $ 915,214 $18,421 7.99%
Investment
securities:
Taxable 147,626 1,893 5.10% 158,771 2,060 5.15%
Nontaxable 30,405 434 5.69% 32,744 497 6.02%
Other short-term
investments 84,469 120 0.56% 17,083 209 4.86%
------------------ ------------------
Total
interest-
earning
assets $1,236,651 $16,946 5.45% $1,123,812 $21,187 7.48%
------------------ ------------------
Interest-bearing
liabilities:
Demand
deposits $ 220,248 $ 824 1.49% $ 309,194 $ 2,657 3.41%
Savings
deposits 33,847 30 0.35% 35,872 120 1.33%
Time deposits 731,215 7,319 3.98% 539,954 6,875 5.05%
FHLB advances 109,784 1,111 4.03% 86,376 975 4.48%
Notes payable 10,310 142 5.48% 10,310 181 6.96%
Other short-term
borrowings 8,678 50 2.30% 14,367 149 4.11%
------------------ ------------------
Total
interest-
bearing
liabilities $1,114,082 $ 9,476 3.38% $ 996,073 $10,957 4.36%
------------------ ------------------
Interest rate
spread 2.07% 3.12%
===== =====
Net interest
income $ 7,470 $10,230
======= =======
Net interest
margin 2.40% 3.61%
===== =====
For the Twelve Months Ended December 31,
2008 2007
----------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
----------------------------------------------------------------------
(Dollars In Thousands)
Interest-earning
assets:
Loans $ 955,253 $61,686 6.46% $ 883,334 $74,060 8.38%
Investment
securities:
Taxable 147,125 7,679 5.22% 159,510 8,211 5.15%
Nontaxable 32,616 1,961 6.01% 30,998 1,868 6.03%
Other short-term
investments 30,631 326 1.06% 23,076 1,191 5.16%
------------------ ------------------
Total
interest-
earning
assets $1,165,625 $71,652 6.15% $1,096,918 $85,330 7.78%
------------------ ------------------
Interest-bearing
liabilities:
Demand
deposits $ 271,498 $ 5,238 1.93% $ 309,037 $11,049 3.58%
Savings
deposits 35,381 204 0.58% 37,231 564 1.51%
Time
deposits 606,878 25,873 4.26% 503,870 25,275 5.02%
FHLB
advances 99,975 3,956 3.96% 88,569 4,069 4.59%
Notes
payable 10,310 540 5.24% 10,310 727 7.05%
Other
short-term
borrowings 14,199 408 2.88% 12,392 526 4.25%
------------------ ------------------
Total
interest-
bearing
liabilities $1,038,241 $36,219 3.49% $ 961,409 $42,210 4.39%
------------------ ------------------
Interest rate
spread 2.66% 3.39%
===== =====
Net interest
income $35,433 $43,120
======= =======
Net interest
margin 3.04% 3.93%
===== =====