VALDOSTA, Ga., April 28, 2009 (GLOBE NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the parent company for The Park Avenue Bank, announced its consolidated financial results for the three months ended March 31, 2009. The Company reported a net loss of $295,000, or ($0.03) per diluted share, for the first quarter of 2009, compared to net earnings of $1.3 million, or $0.14 per diluted share, for the first quarter of 2008 and a net loss of $5.8 million, or ($0.60) per diluted share, for the fourth quarter of 2008. "Although there was a significant improvement in our results compared to the previous quarter, our earnings continue to be hampered by expenses related to the level of nonperforming assets on our balance sheet. In addition, our net interest margin remains compressed due to the low interest rate environment, the level of nonperforming assets and the amount of excess liquidity on our balance sheet not invested at market rates in our loan or bond portfolios," stated Company President and Interim CEO Jay Torbert. "We expect these anchors on our earnings to continue for at least two more quarters, but beyond that, we hope to be able to return to profitability," added Torbert.
The loss for the first quarter of 2009 reflects a $1.75 million provision for loan losses, a $982,000 decrease in net interest income due to interest lost on nonperforming loans, $841,000 in legal, collections, taxes, insurance and other carrying charges related to its nonperforming assets (a 777% increase compared to the same period in 2008), $216,000 in deposit insurance premiums (a 669% increase compared to the same period in 2008), a $782,000 gain on hedging activities, and a $730,000 one-time severance accrual related to the retirement of our former CEO included in noninterest expense.
Excluding the one-time severance charge of $730,000, the carrying charges on nonperforming assets and the deposit insurance premiums noted above for all respective periods, the Company's noninterest expense decreased $1.4 million (17.7%) and $803,000 (11.2%) compared to the first and fourth quarters of 2008, respectively. "We continue to focus on expense controls and loan and deposit pricing initiatives to help offset our margin compression and the increase in our deposit insurance costs," noted Torbert. "Last week, we made the difficult decision to implement additional staffing reductions whereby we eliminated 18 positions. These staffing reductions are expected to amount to approximately $1.2 million in expense savings on an annualized basis," stated Torbert.
For the first quarter of 2009, the Company's net interest margin was 2.34%, a six basis point decrease compared to 2.40% in the fourth quarter of 2008 and a 107 basis point decrease compared to 3.41% in the first quarter of 2008. The reduction of interest income due to the nonperforming assets negatively impacted the net interest margin by 32 basis points during the first quarter of 2009, compared to a 36 basis point impact in the fourth quarter of 2008 and a 28 basis point impact in the first quarter of 2008. In addition, because of economic conditions and the illiquidity in its loan portfolio, the Company is carrying approximately $80 million in excess liquidity at a negative net spread that adversely impacted the net interest margin by 16 basis points during the first quarter of 2009. The Company's average yield on earning assets (excluding nonperforming loans) for the first quarter of 2009 was 5.48%, a 22 basis point decline compared to the fourth quarter of 2008 and a 153 basis point decline compared to the same period last year. The Company's average rate paid for interest-bearing deposits and other borrowings was 3.14% for the quarter, a 25 basis point decline compared to the fourth quarter of 2008 and a 77 basis point decrease compared to the first quarter of 2008.
At March 31, 2009, the Company reported total assets of $1.35 billion, which was approximately the same as the $1.35 billion in total assets reported at December 31, 2008. During the quarter, total loans outstanding decreased $16.4 million, or 1.7%, to $940.3 million, and total deposits decreased $18.4 million, or 1.6%, to $1.11 billion. The decrease in deposits was the result of a $46.4 million decrease in brokered deposits, which was offset by an increase in the Company's in-market, retail deposits of $28.0 million during the first quarter of 2009, a 12.4% annualized growth rate from the fourth quarter of 2008. The Bank continues to maintain its "Well Capitalized" status based on the strictest of regulatory definitions for capital adequacy. At March 31, 2009, the Bank's Total Risk-Based Capital Ratio was 10.5%, a slight increase compared to 10.3% at year end. 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 March 31, 2009 is as follows.
* Total nonperforming assets equaled $94.5 million, or 7.01% of total
assets, a $13.8 million increase during the quarter. Nonperforming
assets consisted of $62.7 million in nonaccrual loans,
$31.5 million in foreclosed real estate and other repossessed
assets, $311,000 in loans classified as troubled-debt
restructurings and $19,000 in loans past due 90 days or more and
still accruing interest.
* For the first quarter of 2009, the Company charged off $838,000 in
loans and recovered $117,000 in loans previously charged-off for an
annualized net charge-off ratio of 0.31% of average loans.
* The allowance for loan losses represented approximately 2.17% of
total loans and 32.39% of total nonperforming loans.
* Loan loss provision expense was $1.75 million in the first quarter
of 2009, compared to $8.50 million for the fourth quarter of 2008
and $1.20 million for the first quarter of 2008.
* The nonperforming loans consisted of:
---------------------------------------------------------------------
Net Carrying Collateral Average Carrying
Category Value * Description Value/ Unit
---------------------------------------------------------------------
9 parcels $14,200 per
of undeveloped residential acre
Construction land totaling $180,300 per
and Development $10.5 million 468 acres commercial acre
---------------------------------------------------------------------
Construction 467 residential
and Development $13.3 million lots $28,600 per lot
---------------------------------------------------------------------
1-4 Family $109,000
Residential $8.0 million 73 houses per house
---------------------------------------------------------------------
Commercial 10 commercial $1.1 million
Real Estate $11.1 million properties per property
---------------------------------------------------------------------
1 parcel of
farm land
totaling 223
Agriculture $1.4 million acres $6,500 per acre
---------------------------------------------------------------------
Commercial Non-real estate $378,000
and Industrial $3.0 million collateral per loan
---------------------------------------------------------------------
Multi-Family 9 condominium $950,000
Residential $8.6 million units per unit
---------------------------------------------------------------------
Non-real estate
Consumer $85,000 collateral $5,000 per loan
---------------------------------------------------------------------
* The term "net carrying value" represents the book value of the
loan less any allocated allowance for loan losses.
* Foreclosed properties included:
---------------------------------------------------------------------
Average
Category Book Value Description Value/ Unit
---------------------------------------------------------------------
7 parcels of
undeveloped
Construction land totaling $8,900 per
and Development $5.8 million 657 acres residential acre
---------------------------------------------------------------------
Construction 324 residential
and Development $8.0 million lots $24,600 per lot
---------------------------------------------------------------------
1-4 Family $184,000
Residential $11.8 million 64 houses per house
---------------------------------------------------------------------
Commercial 22 commercial $267,000
Real Estate $5.9 million properties per property
---------------------------------------------------------------------
* The Company had loans to four real estate developers for various
residential construction and development projects in Georgia and
Florida which represent $32.4 million, or 34%, of total
nonperforming assets, of which $23.0 million were in nonperforming
loans and $9.4 million were in other real estate owned at quarter
end. A total of $4.8 million was charged-off on these
relationships in the fourth quarter of 2008 and an additional
$1.7 million in specific reserves has been established on the
remaining balance in nonperforming loans.
* Approximately $8.6 million, or 13.7% of total nonperforming loans,
were in various stages of bankruptcy at quarter end, which has
limited the Company's ability to resolve those problem assets to
date.
* Approximately 62% of nonperforming loans were construction and
development loans, and these loans represented approximately 12% of
the Company's total portfolio of construction and development loans.
* The Company reported total loans past due 30-89 days of
$13.7 million, or 1.46% of total loans, a $7.7 million decrease
during the quarter. These loans are not included in nonperforming
assets at quarter end. Approximately 42% 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 Wednesday, April 29, 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=125988. 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: 429811.
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, profitability, our capital position, our plans regarding our nonperforming assets, our expected expense savings, and the interest rate environment and economic conditions in general, 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, 2008. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED Period Ended
QUARTERLY ------------------------------------------------------
FINANCIAL DATA 03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of Operations:
Interest
income $ 16,151 $ 16,814 $ 17,680 $ 17,460 $ 19,030
Interest
expense 8,959 9,476 8,460 8,598 9,685
---------------------------------------------------------------------
Net interest
income 7,192 7,338 9,220 8,862 9,345
---------------------------------------------------------------------
Provision for
loan losses 1,750 8,500 7,300 1,050 1,200
Other income 2,106 107 1,081 1,572 1,643
Other expense 8,126 8,053 7,510 7,191 7,829
---------------------------------------------------------------------
Income before
income tax
expense (578) (9,108) (4,509) 2,193 1,959
Income tax
expense (283) (3,297) (1,649) 730 662
---------------------------------------------------------------------
Net income $ (295)$ (5,811)$ (2,860)$ 1,463 $ 1,297
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 7,316 $ 7,470 $ 9,397 $ 9,043 $ 9,522
Per Share
Ratios:
Net income
- basic ** $ (0.03)$ (0.62)$ (0.31)$ 0.16 $ 0.14
Net income
- diluted ** (0.03) (0.60) (0.32) 0.15 0.14
Dividends
declared
for period -- -- -- 0.095 0.145
Dividend
payout ratio 0.00% 0.00% 0.00% 59.33% 102.39%
Book value at
end of
period ** $ 9.73 $ 9.82 $ 9.97 $ 10.26 $ 10.59
Common Share
Data:
Outstanding at
period end ** 9,324,407 9,324,407 9,324,407 9,324,407 9,337,641
Weighted
average
outstanding ** 9,324,407 9,324,407 9,324,407 9,328,241 9,364,691
Diluted
weighted
average
outstanding ** 9,324,407 9,324,407 9,325,783 9,376,186 9,423,606
Selected
Average
Balances:
Total assets $1,358,168 $1,311,529 $1,238,010 $1,210,454 $1,194,717
Earning assets 1,266,311 1,236,651 1,166,498 1,137,101 1,121,461
Loans 947,030 974,151 973,017 943,391 930,049
Deposits 1,122,115 1,083,862 1,010,201 984,114 967,426
Stockholders'
equity 91,631 93,086 96,160 98,757 99,557
Selected Period
End Balances:
Total assets $1,347,068 $1,350,103 $1,257,869 $1,222,368 $1,205,041
Earning assets 1,256,085 1,259,495 1,186,292 1,144,718 1,129,869
Loans 940,279 956,687 982,571 963,500 934,927
Allowance for
loan losses 20,403 19,374 20,240 14,303 13,875
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 1,105,298 1,123,703 1,029,844 996,595 972,104
Stockholders'
equity 90,694 91,601 92,981 95,677 98,866
Tier 1
regulatory
capital 91,751 91,962 97,715 100,492 100,010
Performance
Ratios:
Return on
average assets -0.09% -1.76% -0.92% 0.49% 0.44%
Return on
average
stockholders'
equity -1.30% -24.84% -11.83% 5.96% 5.24%
Net interest
margin 2.07% 2.07% 2.84% 2.81% 2.98%
Efficiency
ratio
(excluding the
following
items): 85.24% 73.47% 68.84% 67.58% 70.87%
Securities
gains
(losses)
included in
other income $ 17 $ 23 $ 2 $ 17 $ 183
Other gains
(losses)
included in
other income (127) (820) (434) (42) (66)
Selected Asset
Quality
Factors:
Nonaccrual
loans $ 62,653 $ 54,903 $ 43,471 $ 40,464 $ 26,090
Loans 90 days
or more past
due and still
accruing 19 206 4 331 13
Other impaired
loans
(troubled-debt
restructurings) 311 311 9,808 9,808 --
Other real
estate and
repossessions 31,489 25,269 11,972 8,792 7,237
Asset Quality
Ratios:
Net charge-offs
to average
loans
(annualized
YTD) 0.31% 1.21% 0.31% 0.18% 0.10%
Nonperforming
loans to
total loans 6.70% 5.79% 5.42% 5.25% 2.79%
Nonperforming
assets to
total assets 7.01% 5.98% 5.19% 4.86% 2.77%
Allowance for
loan losses
to total loans 2.17% 2.03% 2.06% 1.48% 1.48%
Allowance for
loan losses to
nonperforming
loans 32.39% 34.96% 37.99% 28.26% 53.15%
Other Selected
Ratios and
Nonfinancial
Data:
Average loans
to average
earning assets 74.79% 78.77% 83.41% 82.96% 82.93%
Average loans
to average
deposits 84.40% 89.88% 96.32% 95.86% 96.14%
Average
stockholders'
equity to
average assets 6.75% 7.10% 7.77% 8.16% 8.33%
Full-time
equivalent
employees 287 299 314 320 321
Bank branch
offices 18 18 20 20 20
Bank loan
production
offices 2 2 3 3 3
Bank ATMs 26 26 26 26 25
**Adjusted for 2% Stock Dividend Paid on July 15, 2008
PAB BANKSHARES, INC.
SELECTED Period Ended
YEAR-TO-DATE ------------------------------------------------------
FINANCIAL DATA 03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
---------------------------------------------------------------------
(Dollars in
thousands except
per share and
other data)
Summary of
Operations:
Interest
income $ 16,151 $ 70,984 $ 54,170 $ 36,491 $ 19,030
Interest
expense 8,959 36,218 26,742 18,283 9,685
---------------------------------------------------------------------
Net interest
income 7,192 34,766 27,428 18,208 9,345
---------------------------------------------------------------------
Provision for
loan losses 1,750 18,050 9,550 2,250 1,200
Other income 2,106 4,403 4,296 3,215 1,643
Other expense 8,126 30,584 22,531 15,020 7,829
---------------------------------------------------------------------
Income before
income tax
expense (578) (9,465) (357) 4,153 1,959
Income tax
expense (283) (3,554) (257) 1,392 662
---------------------------------------------------------------------
Net income $ (295)$ (5,911)$ (100)$ 2,761 $ 1,297
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 7,316 $ 35,432 $ 27,962 $ 18,565 $ 9,522
Per Share
Ratios:
Net income
- basic ** $ (0.03)$ (0.63)$ (0.01)$ 0.30 $ 0.14
Net income
- diluted ** (0.03) (0.63) (0.01) 0.29 0.14
Dividends
declared for
the period -- 0.240 0.240 0.240 0.145
Dividend payout
ratio 0.00% -37.16% -2213.13% 79.57% 102.39%
Common
Share Data:
Weighted
average
outstanding ** 9,324,407 9,335,376 9,339,059 9,346,466 9,364,691
Diluted
weighted
average
outstanding ** 9,324,407 9,352,375 9,372,897 9,400,712 9,423,606
Selected
Average
Balances:
Total assets $1,358,168 $1,238,875 $1,214,480 $1,202,585 $1,194,717
Earning assets 1,266,311 1,165,625 1,141,777 1,129,281 1,121,461
Loans 947,030 955,253 948,908 936,720 930,049
Deposits 1,122,115 1,011,596 987,331 975,770 967,426
Stockholders'
equity 91,631 96,877 98,151 99,157 99,557
Performance
Ratios:
Return on
average assets -0.09% -0.48% -0.01% 0.46% 0.44%
Return on
average
stockholders'
equity -1.30% -6.10% -0.14% 5.60% 5.24%
Net interest
margin 2.07% 2.66% 2.87% 2.89% 2.98%
Efficiency
ratio
(excluding the
following
items): 85.24% 70.01% 69.12% 69.26% 70.87%
Securities
gains
(losses)
included in
other income $ 17 $ 225 $ 202 $ 200 $ 183
Other gains
(losses)
included in
other income (127) (1,362) (542) (108) (66)
Other Selected
Ratios:
Average loans
to average
earning assets 74.79% 81.95% 83.11% 82.95% 82.93%
Average loans
to average
deposits 84.40% 94.43% 96.11% 96.00% 96.14%
Average
stockholders'
equity to
average assets 6.75% 7.82% 8.08% 8.25% 8.33%
**Adjusted for 2% Stock Dividend Paid on July 15, 2008
PAB BANKSHARES, INC.
LOAN AND
DEPOSIT
PORTFOLIO BY
MARKET South North
As of Georgia Georgia Florida
March 31, 2009 Market Market Market Treasury Total
------------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 32,108 $ 48,402 $ 2,007 $ 17 $ 82,534
Agricultural
(including
loans secured
by farmland) 33,826 4,510 6,335 -- 44,671
Real estate
- construction 75,844 177,219 58,851 2,949 314,863
Real estate
- commercial 91,912 150,562 25,294 6,570 274,338
Real estate
- residential 135,321 42,399 9,361 4,307 191,388
Installment
loans to
individuals
and others 12,564 6,470 171 13,535 32,740
------------------------------------------------------
381,575 429,562 102,019 27,378 940,534
Deferred loan
fees and
unearned
interest, net 175 (173) (208) (49) (255)
------------------------------------------------------
Total loans 381,750 429,389 101,811 27,329 940,279
Allowance for
loan losses (5,191) (10,463) (3,595) (1,154) (20,403)
------------------------------------------------------
Net loans $ 376,559 $ 418,926 $ 98,216 $ 26,175 $ 919,876
======================================================
Percentage
of total 40.9% 45.5% 10.7% 2.9% 100.0%
======================================================
Deposits
Noninterest
-bearing
demand $ 73,408 $ 17,585 $ 6,263 $ 14,216 $ 111,472
Interest
-bearing
demand and
savings 199,479 26,609 23,504 733 250,325
Time less than
$100,000 188,001 48,866 93,691 296 330,854
Time greater
than or equal
to $100,000 126,799 28,491 43,270 208 198,768
Retail placed
in CDARs
program 46,983 6,349 -- 380 53,712
Brokered -- -- -- 160,167 160,167
------------------------------------------------------
Total deposits $ 634,670 $ 127,900 $ 166,728 $ 176,000 $1,105,298
======================================================
Percentage
of total 57.4% 11.6% 15.1% 15.9% 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
------------------------------------------------
03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 82,534 $ 87,530 $ 91,401 $ 82,087 $ 83,343
Agricultural
(including loans
secured by farmland) 44,671 48,647 49,227 46,891 42,573
Real estate
- construction 314,863 315,786 332,901 344,393 363,392
Real estate
- commercial 274,338 276,645 281,781 275,962 241,165
Real estate
- residential 191,388 196,306 195,439 181,169 179,091
Installment loans to
individuals and
other loans 32,740 32,084 32,075 33,237 25,704
-------- -------- -------- -------- --------
940,534 956,998 982,824 963,739 935,268
Deferred loan fees
and unearned
interest, net (255) (310) (253) (239) (341)
-------- -------- -------- -------- --------
Total loans 940,279 956,688 982,571 963,500 934,927
Allowance for
loan losses (20,403) (19,374) (20,240) (14,303) (13,875)
-------- -------- -------- -------- --------
Net loans $919,876 $937,314 $962,331 $949,197 $921,052
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
------------------------------------------------
03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
------------------------------------------------
Commercial and
financial 8.78% 9.15% 9.30% 8.52% 8.91%
Agricultural
(including loans
secured by farmland) 4.75% 5.08% 5.01% 4.87% 4.55%
Real estate
- construction 33.49% 33.01% 33.88% 35.74% 38.87%
Real estate
- commercial 29.18% 28.92% 28.68% 28.64% 25.80%
Real estate
- residential 20.35% 20.52% 19.89% 18.80% 19.16%
Installment loans to
individuals and
other loans 3.48% 3.35% 3.27% 3.45% 2.75%
-------- -------- -------- -------- --------
100.03% 100.03% 100.03% 100.02% 100.04%
Deferred loan fees
and unearned
interest, net -0.03% -0.03% -0.03% -0.02% -0.04%
-------- -------- -------- -------- --------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -2.17% -2.03% -2.06% -1.48% -1.48%
-------- -------- -------- -------- --------
Net loans 97.83% 97.97% 97.94% 98.52% 98.52%
======== ======== ======== ======== ========
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
------------------------------------------------------
03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
------------------------------------------------------
(Dollars In Thousands)
Noninterest
-bearing
demand $ 111,472 $ 91,114 $ 101,417 $ 102,909 $ 97,029
Interest
-bearing
demand and
savings 250,325 252,122 262,723 336,359 331,184
Time less
than $100,000 330,854 328,329 323,377 292,981 298,799
Time greater
than or equal
to $100,000 198,768 198,845 182,491 175,914 179,316
Retail placed
in CDARs
program 53,712 46,690 18,343 -- --
Brokered 160,167 206,603 141,493 88,432 65,776
---------- ---------- ---------- ---------- ----------
Total deposits $1,105,298 $1,123,703 $1,029,844 $ 996,595 $ 972,104
========== ========== ========== ========== ==========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
------------------------------------------------------
03/31/09 12/31/08 09/30/08 06/30/08 03/31/08
------------------------------------------------------
Noninterest
-bearing
demand 10.09% 8.11% 9.85% 10.33% 9.98%
Interest
-bearing
demand and
savings 22.65% 22.44% 25.51% 33.75% 34.07%
Time less than
$100,000 29.93% 29.22% 31.40% 29.40% 30.74%
Time greater
than or equal
to $100,000 17.98% 17.69% 17.72% 17.65% 18.44%
Retail placed
in CDARs
program 4.86% 4.15% 1.78% -- --
Brokered 14.49% 18.39% 13.74% 8.87% 6.77%
---------- ---------- ---------- ---------- ----------
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 ended
March 31, 2009 and 2008. Federally tax-exempt income is presented on a
taxable-equivalent basis assuming a 34% Federal tax rate in 2009 and a
35% Federal tax rate in 2008. Loan average balances include loans on
nonaccrual status.
For the Three Months
Ended March 31, 2009 2008
---------------------------------------------------------------------
Interest Avg. Interest Avg.
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest
-earning
assets:
Loans $ 947,030 $13,949 5.97% $ 930,049 $16,657 7.20%
Investment
securities:
Taxable 149,823 1,890 5.12% 151,172 1,993 5.30%
Nontaxable 23,358 354 6.15% 33,143 504 6.12%
Other
short-term
investments 146,099 81 0.22% 7,097 53 3.01%
------------------------------------------------------
Total interest
-earning
assets $1,266,310 $16,274 5.21% $1,121,461 $19,207 6.89%
------------------------------------------------------
Interest
-bearing
liabilities:
Demand
deposits $ 214,468 $ 291 0.55% $ 305,907 $ 1,927 2.53%
Savings
deposits 34,200 21 0.25% 35,342 76 0.86%
Time deposits 769,994 7,349 3.87% 533,563 6,415 4.84%
FHLB advances 108,705 1,077 4.02% 92,454 930 4.05%
Notes payable 21,199 183 3.50% 10,310 168 6.57%
Other
short-term
borrowings 8,931 37 1.69% 18,418 169 3.69%
------------------------------------------------------
Total interest
-bearing
liabilities $1,157,497 $ 8,958 3.14% $ 995,994 $ 9,685 3.91%
------------------------------------------------------
Interest
rate spread 2.07% 2.98%
===== =====
Net interest
income $ 7,316 $ 9,522
======= =======
Net interest
margin 2.34% 3.41%
===== =====
PAB BANKSHARES, INC.
RECONCILIATION OF NON-GAAP MEASURE
The reconciliation of total noninterest expense to noninterest
expense, as adjusted to exclude certain one-time charges and other
items follows:
Quarter Ended
-------------------------
03/31/09 12/31/08 03/31/08
-------------------------
(Dollars In Thousands)
Total noninterest expense $ 8,126 $ 8,053 $ 7,829
Non-recurring severance accrual (730) -- --
Carrying charges related to
nonperforming assets (841) (711) (96)
Deposit insurance premiums (216) (200) (28)
------- ------- -------
Noninterest expense, as adjusted $ 6,339 $ 7,142 $ 7,705
======= ======= =======