VALDOSTA, Ga., July 20, 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 June 30, 2009. The Company reported net income of $342,000, or $0.04 per diluted share, for the second quarter of 2009, compared to a net loss of $295,000, or ($0.03) per diluted share, for the first quarter of 2009 and net income of $1.5 million, or $0.15 per diluted share, for the second quarter of 2008. "We are pleased to report positive earnings after three consecutive quarters of net losses and an improvement in our capital ratios despite the challenges facing our institution, the banking industry and the economy in general," stated Company President and CEO Jay Torbert. "We allocated significant resources to identify and address our problem assets, and we made substantial progress in that area. We understand that it will take time to resolve many of these problem assets, and we will have more loan losses as nonperforming loans transition to our portfolio of other real estate owned in the coming quarters." added Torbert.
During the second quarter of 2009, numerous transactions, or events, occurred that had an impact (both positively and negatively) on the Company's results of operations. The highlights of these items are as follows:
-- $600,000 accrual for the special FDIC assessment announced in May
2009;
-- $303,000 in quarterly FDIC premiums, compared to $28,000 in the
second quarter of 2008;
-- $686,000 in legal, collections, taxes, insurance and other
carrying charges related to nonperforming assets, compared to
$81,000 during the same period in 2008;
-- $394,000 loss on sales and write-downs of other assets, compared
to a $42,000 loss during the second quarter of 2008;
-- $185,000 in severance payments related to April 2009 staffing
reductions;
-- $1.05 million decrease in net interest income due to interest lost
on nonperforming loans;
-- $261,000 loss on write-down of investment in Silverton Bank stock;
-- $387,000 gain on hedging activities; and
-- $1.02 million realized gain on sale of investment securities.
Effective July 14, 2009, the Company, the Bank, the Federal Reserve Bank of Atlanta and the Georgia Department of Banking and Finance have agreed to enter into a written agreement to maintain the financial soundness of the Company. Under the agreement, the Company will submit written plans and programs to address certain areas of improvement identified in an examination of the Bank in January 2009. The board of directors and management of the Company have already commenced the implementation of various plans for improving the capital, liquidity, earnings and asset quality of the Company and expect to fully comply with all provisions of this written agreement within the timelines requested. All assets classified as "loss" in the examination report were either charged-off or collected prior to June 30, 2009. "Given the environment that we are in, we remain confident in the ability of our management and board of directors to adequately address these areas of improvement. The provisions in this written agreement will have no material impact on our daily operations or the customers of the Bank," stated Torbert.
For the second quarter of 2009, the Company's net interest margin improved to 2.65%, a 31 basis point increase compared to 2.34% in the first quarter of 2009, but a 55 basis point decrease compared to 3.20% in the second quarter of 2008. The reduction of interest income due to the nonperforming assets negatively impacted the net interest margin by 34 basis points during the second quarter of 2009, compared to a 32 basis point impact in the first quarter of 2009 and a 28 basis point impact in the second 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 19 basis points during the second quarter of 2009. The Company's average yield on earning assets (excluding nonperforming loans) for the second quarter of 2009 was 5.64%, a 16 basis point increase compared to the first quarter of 2009, but an 83 basis point decline compared to the same period last year. The Company's average rate paid for interest-bearing deposits and other borrowings was 2.95% for the quarter, a 19 basis point decline compared to the first quarter of 2009 and a 48 basis point decrease compared to the second quarter of 2008.
At June 30, 2009, the Company reported total assets of $1.28 billion, which represents a $70.1 million, or 5.2%, decrease compared to the $1.35 billion in total assets reported at March 31, 2009. During the quarter, total loans outstanding decreased $20.6 million, or 2.2%, to $919.7 million, and total deposits decreased $68.9 million, or 6.2%, to $1.04 billion. The decrease in deposits was the result of a $26.1 million decrease in brokered deposits, an $18.5 million decrease in retail time deposits placed in the CDARs program and a $16.9 million decrease in other time deposits. The Bank continues to maintain its "Well Capitalized" status based on the regulatory definitions for capital adequacy. At June 30, 2009, the Bank's Total Risk-Based Capital Ratio was 10.9%, an increase compared to 10.5% at March 31, 2009. 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 June 30, 2009 is as follows.
-- Total nonperforming assets equaled $107.9 million, or 8.45% of
total assets, a $13.5 million increase during the quarter.
Nonperforming assets consisted of $70.2 million in nonaccrual
loans, $37.4 million in foreclosed real estate and other
repossessed assets, $84,000 in loans classified as troubled-debt
restructurings and $190,000 in loans past due 90 days or more and
still accruing interest.
-- The Bank's "Texas Ratio", which is a popular comparison of an
institution's nonperforming assets to its tangible equity plus
allowance for loan losses, was 96%.
-- For the second quarter of 2009, the Company charged off $2.8
million in loans and recovered $91,000 in loans previously charged-
off for an annualized net charge-off ratio of 1.16% of average
loans.
-- The allowance for loan losses represented approximately 2.14% of
total loans and 27.97% of total nonperforming loans.
-- Loan loss provision expense was $2.00 million in the second
quarter of 2009, compared to $1.75 million for the first quarter
of 2009 and $1.05 million for the second quarter of 2008.
-- The nonperforming loans consisted of:
---------------------------------------------------------------------
Net Carrying Average
Category Value * Collateral Carrying
Description Value/ Unit
---------------------------------------------------------------------
$14,500 per
11 parcels residential acre
of undeveloped
Construction and land totaling $127,000 per
Description $11.1 million 491 acres commercial acre
---------------------------------------------------------------------
Construction and 258 residential $32,700
Development $8.4 million lots per lot
---------------------------------------------------------------------
1-4 Family $82,000
Residential $6.2 million 75 houses per house
---------------------------------------------------------------------
Commercial 16 commercial $1.59 million
Real Estate $25.4 million properties per property
---------------------------------------------------------------------
2 parcels of
farm land
totaling 291 $5,300
Agriculture $1.5 million acres per acre
---------------------------------------------------------------------
Commercial and Non-real estate $1.45 million
Industrial $2.9 million collateral per loan
---------------------------------------------------------------------
Multi-Family 9 condominium $897,000
Residential $8.1 million units per unit
---------------------------------------------------------------------
Non-real estate $6,500 per
Consumer $72,000 collateral loan
---------------------------------------------------------------------
Total $63.7 million
---------------------------------------------------------------------
* 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
--------------------------------------------------------------------
9 parcels of $8,700 per
Construction and undeveloped residential acre
Development $6.6 million land totaling $66,300 per
670 acres commercial acre
--------------------------------------------------------------------
Construction and 568 residential
Development $13.1 million lots $23,000 per lot
--------------------------------------------------------------------
1-4 Family
Residential $12.0 million 67 houses $180,000 per house
--------------------------------------------------------------------
Commercial Real 21 commercial $271,000 per
Estate $5.7 million properties property
--------------------------------------------------------------------
Total $37.4 million
--------------------------------------------------------------------
-- The Company had loans to four real estate developers for various
residential and commercial construction and development projects
in Georgia and Florida which represent $39.9 million, or 37%, of
total nonperforming assets, of which $29.7 million were in
nonperforming loans and $10.2 million were in other real estate
owned at quarter end. A total of $6.3 million has been charged-
off on these relationships and an additional $782,000 in specific
reserves has been established on the remaining balance in
nonperforming loans.
-- Approximately $23.7 million, or 33.6% 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 65% of nonperforming loans were construction and
development loans, and these loans represented approximately 16%
of the Company's total portfolio of construction and development
loans.
-- The Company reported total loans past due 30-89 days of $23.9
million, or 2.62% of total loans, a $10.2 million increase during
the quarter. These loans are not included in nonperforming assets
at quarter end. Approximately 35% 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 Tuesday, July 21, 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=127032. 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: 432128.
About PAB
The Company is a $1.28 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, 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 "believe", "anticipate", "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, including the terms of the Written Agreement, 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. Period Ended
-------------------------------------------------------
SELECTED
QUARTERLY
FINANCIAL
DATA 06/30/09 03/31/09 12/31/08 09/30/08 06/30/08
---------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 16,090 $ 16,151 $ 16,814 $ 17,680 $ 17,460
Interest
expense 8,104 8,959 9,476 8,460 8,598
---------------------------------------------------------------------
Net interest
income 7,986 7,192 7,338 9,220 8,862
---------------------------------------------------------------------
Provision for
loan losses 2,000 1,750 8,500 7,300 1,050
Other income 2,487 2,106 107 1,081 1,572
Other expense 8,102 8,126 8,053 7,510 7,191
---------------------------------------------------------------------
Income
before in-
come tax
expense 371 (578) (9,108) (4,509) 2,193
Income tax
expense 29 (283) (3,297) (1,649) 730
---------------------------------------------------------------------
Net income $ 342 $ (295)$ (5,811)$ (2,860)$ 1,463
=====================================================================
Net interest
income on a
tax-equiva-
lent basis $ 8,069 $ 7,316 $ 7,470 $ 9,397 $ 9,043
Per Share
Ratios:
Net income -
basic ** $ 0.04 $ (0.03)$ (0.62)$ (0.31)$ 0.16
Net income -
diluted ** 0.04 (0.03) (0.60) (0.32) 0.15
Dividends
declared for
period -- -- -- -- 0.095
Dividend
payout ratio 0.00% 0.00% 0.00% 0.00% 59.33%
Book value at
end of
period ** $ 9.48 $ 9.73 $ 9.82 $ 9.97 $ 10.26
Common Share
Data:
Outstanding at
period end ** 9,324,407 9,324,407 9,324,407 9,324,407 9,324,407
Weighted
average out-
standing ** 9,324,407 9,324,407 9,324,407 9,324,407 9,328,241
Diluted
weighted
average out-
standing ** 9,324,407 9,324,407 9,324,407 9,325,783 9,376,186
Selected
Average
Balances:
Total assets $1,310,819 $1,358,168 $1,311,529 $1,238,010 $1,210,454
Earning assets 1,221,385 1,266,311 1,236,651 1,166,498 1,137,101
Loans 930,131 947,030 974,151 973,017 943,391
Deposits 1,069,685 1,122,115 1,083,862 1,010,201 984,114
Stockholders'
equity 90,552 91,631 93,086 96,160 98,757
Selected
Period End
Balances:
Total assets $1,277,016 $1,347,068 $1,350,103 $1,257,869 $1,222,368
Earning assets 1,186,897 1,256,085 1,259,495 1,186,292 1,144,718
Loans 919,698 940,279 956,687 982,571 963,500
Allowance for
loan losses 19,719 20,403 19,374 20,240 14,303
Goodwill 5,985 5,985 5,985 5,985 5,985
Deposits 1,036,382 1,105,298 1,123,703 1,029,844 996,595
Stockholders'
equity 88,413 90,694 91,601 92,981 95,677
Tier 1
regulatory
capital 92,159 91,751 91,962 97,715 100,492
Performance
Ratios:
Return on
average
assets 0.10% -0.09% -1.76% -0.92% 0.49%
Return on
average
stockholders'
equity 1.51% -1.30% -24.84% -11.83% 5.96%
Net interest
margin 2.65% 2.34% 2.40% 3.20% 3.20%
Efficiency
ratio
(excluding
the follow-
ing items): 79.48% 85.24% 73.47% 68.84% 67.58%
Securities
gains
(losses)
included
in other
income $ 756 $ 17 $ 23 $ 2 $ 17
Other gains
(losses)
included
in other
income (394) (127) (820) (434) (42)
Selected Asset
Quality
Factors:
Nonaccrual
loans $ 70,232 $ 62,653 $ 54,903 $ 43,471 $ 40,464
Loans 90 days
or more past
due and still
accruing 190 19 206 4 331
Other impaired
loans
(troubled-
debt restruc-
turings) 84 311 311 9,808 9,808
Other real
estate and
repossessions 37,417 31,489 25,269 11,972 8,792
Asset Quality
Ratios:
Net charge-
offs to
average loans
(annualized
YTD) 0.73% 0.31% 1.21% 0.31% 0.18%
Nonperforming
loans to
total loans 7.67% 6.70% 5.79% 5.42% 5.25%
Nonperforming
assets to
total assets 8.45% 7.01% 5.98% 5.19% 4.86%
Allowance for
loan losses
to total
loans 2.14% 2.17% 2.03% 2.06% 1.48%
Allowance for
loan losses
to nonper-
forming loans 27.97% 32.39% 34.96% 37.99% 28.26%
Other Selected
Ratios and
Nonfinancial
Data:
Average loans
to average
earning
assets 76.15% 74.79% 78.77% 83.41% 82.96%
Average loans
to average
deposits 86.95% 84.40% 89.88% 96.32% 95.86%
Average
stockholders'
equity to
average
assets 6.91% 6.75% 7.10% 7.77% 8.16%
Full-time
equivalent
employees 269 287 299 314 320
Bank branch
offices 18 18 18 20 20
Bank loan
production
offices 2 2 2 3 3
Bank ATMs 26 26 26 26 26
**Adjusted for 2% Stock Dividend Paid on July 15, 2008
PAB BANKSHARES,
INC. Period Ended
-------------------------------------------------------
SELECTED YEAR-
TO-DATE
FINANCIAL
DATA 06/30/09 03/31/09 12/31/08 09/30/08 06/30/08
---------------------------------------------------------------------
(Dollars in
thousands
except per
share and
other data)
Summary of
Operations:
Interest
income $ 32,241 $ 16,151 $ 70,984 $ 54,170 $ 36,491
Interest
expense 17,062 8,959 36,218 26,742 18,283
---------------------------------------------------------------------
Net interest
income 15,179 7,192 34,766 27,428 18,208
---------------------------------------------------------------------
Provision for
loan losses 3,750 1,750 18,050 9,550 2,250
Other income 4,592 2,106 4,403 4,296 3,215
Other expense 16,227 8,126 30,584 22,531 15,020
---------------------------------------------------------------------
Income
before
income tax
expense (206) (578) (9,465) (357) 4,153
Income tax
expense (254) (283) (3,554) (257) 1,392
---------------------------------------------------------------------
Net income $ 48 $ (295)$ (5,911)$ (100)$ 2,761
=====================================================================
Net interest
income on a
tax-equiva-
lent basis $ 15,385 $ 7,316 $ 35,432 $ 27,962 $ 18,565
Per Share
Ratios:
Net income -
basic ** $ 0.01 $ (0.03)$ (0.63)$ (0.01)$ 0.30
Net income -
diluted ** 0.01 (0.03) (0.63) (0.01) 0.29
Dividends
declared for
the period -- -- 0.240 0.240 0.240
Dividend
payout ratio 0.00% 0.00% -37.16% -2213.13% 79.57%
Common Share
Data:
Weighted
average out-
standing ** 9,324,407 9,324,407 9,335,376 9,339,059 9,346,466
Diluted
weighted
average out-
standing ** 9,324,407 9,324,407 9,352,375 9,372,897 9,400,712
Selected
Average
Balances:
Total assets $1,334,363 $1,358,168 $1,238,875 $1,214,480 $1,202,585
Earning assets 1,243,724 1,266,311 1,165,625 1,141,777 1,129,281
Loans 938,534 947,030 955,253 948,908 936,720
Deposits 1,095,755 1,122,115 1,011,596 987,331 975,770
Stockholders'
equity 91,089 91,631 96,877 98,151 99,157
Performance
Ratios:
Return on
average
assets 0.01% -0.09% -0.48% -0.01% 0.46%
Return on
average
stockholders'
equity 0.10% -1.30% -6.10% -0.14% 5.60%
Net interest
margin 2.49% 2.34% 3.04% 3.27% 3.31%
Efficiency
ratio
(excluding
the
following
items): 82.26% 85.24% 70.01% 69.12% 69.26%
Securities
gains
(losses)
included
in other
income $ 773 $ 17 $ 225 $ 202 $ 200
Other gains
(losses)
included
in other
income (522) (127) (1,362) (542) (108)
Other Selected
Ratios:
Average loans
to average
earning
assets 75.46% 74.79% 81.95% 83.11% 82.95%
Average loans
to average
deposits 85.65% 84.40% 94.43% 96.11% 96.00%
Average
stockholders'
equity to
average
assets 6.83% 6.75% 7.82% 8.08% 8.25%
**Adjusted for 2% Stock Dividend Paid on July 15, 2008
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of June 30, 2009
South North
Georgia Georgia Florida
Market Market Market Treasury Total
------------------------------------------------------
(Dollars in Thousands)
Loans
Commercial and
financial $ 30,994 $ 45,485 $ 2,024 $ 6,096 $ 84,599
Agricultural
(including
loans secured
by farmland) 35,931 3,360 6,483 -- 45,774
Real estate -
construction 74,154 158,161 56,024 2,610 290,949
Real estate -
commercial 93,038 157,735 25,062 9,896 285,731
Real estate -
residential 126,164 43,651 9,334 3,925 183,074
Installment
loans to
individuals
and others 11,795 5,799 137 12,059 29,790
------------------------------------------------------
372,076 414,191 99,064 34,586 919,917
Deferred loan
fees and
unearned
interest, net 181 (160) (164) (76) (219)
------------------------------------------------------
Total loans 372,257 414,031 98,900 34,510 919,698
Allowance for
loan losses (5,143) (10,917) (3,229) (430) (19,719)
------------------------------------------------------
Net loans $ 367,114 $ 403,114 $ 95,671 $ 34,080 $ 899,979
======================================================
Percentage of
total 40.8% 44.8% 10.6% 3.8% 100.0%
======================================================
Deposits
Noninterest-
bearing
demand $ 71,983 $ 18,579 $ 3,517 $ 14,894 $ 108,973
Interest-
bearing
demand and
savings 194,395 25,803 24,496 765 245,459
Time less than
$100,000 180,185 46,699 93,479 471 320,834
Time greater
than or equal
to $100,000 121,188 27,730 42,724 210 191,852
Retail placed
in CDARs
program 30,678 3,694 -- 818 35,190
Brokered -- -- -- 134,074 134,074
------------------------------------------------------
Total
deposits $ 598,429 $ 122,505 $ 164,216 $ 151,232 $1,036,382
======================================================
Percentage of
total 57.7% 11.8% 15.9% 14.6% 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
------------------------------------------------------
06/30/09 03/31/09 12/31/08 09/30/08 06/30/08
------------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 84,599 $ 82,534 $ 87,530 $ 91,401 $ 82,087
Agricultural
(including
loans secured
by farmland 45,774 44,671 48,647 49,227 46,891
Real estate -
construction 290,949 314,863 315,786 332,901 344,393
Real estate -
commercial 285,731 274,338 276,645 281,781 275,962
Real estate -
residential 183,074 191,388 196,306 195,439 181,169
Installment
loans to
individuals
and other
loans 29,790 32,740 32,084 32,075 33,237
---------- ---------- ---------- ---------- ----------
919,917 940,534 956,998 982,824 963,739
Deferred loan
fees and
unearned
interest, net (219) (255) (310) (253) (239)
---------- ---------- ---------- ---------- ----------
Total loans 919,698 940,279 956,688 982,571 963,500
Allowance for
loan losses (19,719) (20,403) (19,374) (20,240) (14,303)
---------- ---------- ---------- ---------- ----------
Net loans $ 899,979 $ 919,876 $ 937,314 $ 962,331 $ 949,197
========== ========== ========== ========== ==========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
------------------------------------------------------
06/30/09 03/31/09 12/31/08 09/30/08 06/30/08
------------------------------------------------------
Commercial and
financial 9.20% 8.78% 9.15% 9.30% 8.52%
Agricultural
(including
loans secured
by farmland 4.98% 4.75% 5.08% 5.01% 4.87%
Real estate -
construction 31.63% 33.49% 33.01% 33.88% 35.74%
Real estate -
commercial 31.07% 29.18% 28.92% 28.68% 28.64%
Real estate -
residential 19.90% 20.35% 20.52% 19.89% 18.80%
Installment
loans to
individuals
and other
loans 3.24% 3.48% 3.35% 3.27% 3.45%
---------- ---------- ---------- ---------- ----------
100.02% 100.03% 100.03% 100.03% 100.02%
Deferred loan
fees and
unearned
interest, net -0.02% -0.03% -0.03% -0.03% -0.02%
---------- ---------- ---------- ---------- ----------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -2.14% -2.17% -2.03% -2.06% -1.48%
---------- ---------- ---------- ---------- ----------
Net loans 97.86% 97.83% 97.97% 97.94% 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
------------------------------------------------------
06/30/09 03/31/09 12/31/08 09/30/08 06/30/08
------------------------------------------------------
(Dollars In Thousands)
Noninterest-
bearing
demand $ 108,973 $ 111,472 $ 91,114 $ 101,417 $ 102,909
Interest-
bearing
demand and
savings 245,459 250,325 252,122 262,723 336,359
Time less than
$100,000 320,834 330,854 328,329 323,377 292,981
Time greater
than or equal
to $100,000 191,852 198,768 198,845 182,491 175,914
Retail placed
in CDARs
program 35,190 53,712 46,690 18,343 --
Brokered 134,074 160,167 206,603 141,493 88,432
---------- ---------- ---------- ---------- ----------
Total
deposits $1,036,382 $1,105,298 $1,123,703 $1,029,844 $ 996,595
========== ========== ========== ========== ==========
The percentage of total deposits at the indicated dates is presented
in the following table according to type of deposit account:
Period Ended
------------------------------------------------------
06/30/09 03/31/09 12/31/08 09/30/08 06/30/08
------------------------------------------------------
Noninterest-
bearing
demand 10.51% 10.09% 8.11% 9.85% 10.33%
Interest-
bearing
demand and
savings 23.68% 22.65% 22.44% 25.51% 33.75%
Time less than
$100,000 30.96% 29.93% 29.22% 31.40% 29.40%
Time greater
than or equal
to $100,000 18.51% 17.98% 17.69% 17.72% 17.65%
Retail placed
in CDARs
program 3.40% 4.86% 4.15% 1.78% --
Brokered 12.94% 14.49% 18.39% 13.74% 8.87%
---------- ---------- ---------- ---------- ----------
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, 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
June 30, 2009 2008
---------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-
earning
assets:
Loans $ 930,131 $ 14,029 6.05% $ 943,391 $ 15,140 6.45%
Investment
securities:
Taxable 156,453 1,835 4.70% 143,982 1,902 5.31%
Nontaxable 15,245 236 6.22% 33,882 516 6.13%
Other short-
term inves-
tments 119,556 73 0.24% 15,845 83 2.10%
------------------- -------------------
Total
interest-
earning
assets $1,221,385 $ 16,173 5.31% $1,137,100 $ 17,641 6.24%
------------------- -------------------
Interest-
bearing
liabilities:
Demand
deposits $ 215,201 $ 294 0.55% $ 292,848 $ 1,339 1.84%
Savings
deposits 36,467 23 0.25% 36,168 53 0.59%
Time
deposits 706,348 6,409 3.64% 556,630 6,070 4.39%
FHLB
advances 105,532 1,074 4.08% 97,511 928 3.83%
Notes
payable 30,310 270 3.58% 10,310 113 4.40%
Other short-
term borro-
wings 8,889 34 1.53% 14,205 95 2.69%
------------------- -------------------
Total
interest-
bearing
liabilities $1,102,747 $ 8,104 2.95% $1,007,672 $ 8,598 3.43%
------------------- -------------------
Interest rate
spread 2.36% 2.81%
======= =======
Net interest
income $ 8,069 $ 9 ,043
======== ========
Net interest
margin 2.65% 3.20%
======= =======
For the Six
Months Ended
June 30, 2009 2008
---------------------------------------------------------------------
Interest Average Interest Average
Average Income/ Yield/ Average Income/ Yield/
Balance Expense Rate Balance Expense Rate
---------------------------------------------------------------------
(Dollars In Thousands)
Interest-
earning
assets:
Loans $ 938,534 $ 27,979 6.01% $ 936,720 $ 31,797 6.83%
Investment
securities:
Taxable 153,156 3,726 4.91% 147,577 3,895 5.31%
Nontaxable 19,279 590 6.18% 33,513 1,020 6.12%
Other short-
term inves-
tments 132,754 153 0.23% 11,471 136 2.38%
------------------- -------------------
Total
interest-
earning
assets $1,243,723 $ 32,448 5.26% $1,129,281 $ 36,848 6.56%
------------------- -------------------
Interest-
bearing
liabilities:
Demand
deposits $ 214,837 $ 585 0.55% $ 299,377 $ 3,265 2.19%
Savings
deposits 35,340 44 0.25% 35,755 129 0.72%
Time
deposits 737,995 13,758 3.76% 545,096 12,485 4.61%
FHLB
advances 107,110 2,152 4.05% 94,983 1,859 3.93%
Notes
payable 25,780 453 3.55% 10,310 281 5.48%
Other short-
term
borrowings 8,910 71 1.61% 16,311 264 3.26%
------------------- -------------------
Total
interest-
bearing
liabili-
ties $1,129,972 $ 17,063 3.05% $1,001,832 $ 18,283 3.67%
------------------- -------------------
Interest rate
spread 2.21% 2.89%
======= =======
Net interest
income $ 15,385 $ 18,565
======== ========
Net interest
margin 2.49% 3.31%
======= =======