VALDOSTA, Ga., March 9, 2010 (GLOBE NEWSWIRE) -- PAB Bankshares, Inc. (Nasdaq:PABK), the parent company for The Park Avenue Bank, today announced its consolidated financial results for the fourth quarter and full-year 2009. The Company reported a net loss of $31.3 million in the fourth quarter of 2009, compared to a $5.8 million net loss in the fourth quarter of 2008. During the fourth quarter, the Company:
- made significant progress in its plan to identify, measure and ultimately resolve its problem assets,
- took aggressive actions to charge-off problem assets during the quarter,
- recognized a $15.6 million income tax benefit on the fourth quarter charge-offs, due to recent tax law changes,
- improved its earnings from core operations 59%, primarily through expense reductions,
- posted non-cash charges to earnings representing over half of its net loss in the quarter,
- continued to carry excess liquidity on its balance sheet to support its operations, and
- maintained adequate capital and reserves on its balance sheet to support its banking activities and serve its customers' financial needs.
Since early in the third quarter of 2009, the Company has proactively identified and recognized problem loans in its portfolio. During the fourth quarter, the Company placed $95.4 million of loans on nonaccrual status, reversed $2.6 million in previously accrued, but uncollected, interest from earnings, and foreclosed or repossessed $44.3 million in collateral on defaulted loans. "We have allocated significant resources to manage our credit problems, and I am pleased with our progress through this phase of our overall plan to resolve these problems," stated President and CEO Jay Torbert. "We expect to see the results of our efforts begin to materialize over the next three to six months as we continue to focus on the orderly liquidation of our troubled assets."
The Company charged off $26.9 million of problem loans during the fourth quarter, and set aside specific reserves of $15.5 million on a balance of $134.3 million in loans evaluated for impairment at quarter end. In addition, the Company incurred $3.7 million in losses on other real estate owned during the quarter. The charge-offs and other losses were based on current appraisals and recent regulatory guidance on the recognition of impaired loans. "We have our problem assets marked down to a discounted carrying value, and we do not expect further material deterioration in residential real estate values in our markets," stated Torbert. "With these losses, we recovered $15.6 million in prior income taxes paid as a result of a recent tax law change increasing the net operating loss carry-back period."
As noted above, the Company reported a net loss of $31.3 million in the fourth quarter of 2009, compared to a $5.8 million net loss in the fourth quarter of 2008. However, earnings from core operations were $4.2 million for the fourth quarter of 2009, a 59% increase compared to $2.6 million for the same period in 2008. The improvement in earnings from core operations is primarily the result of operating expense control. The Company defines earnings from core operations as pre-tax, pre-provision earnings less other identified items as shown in the reconciliation of earnings from core operations to net loss in the financial tables included with this press release.
Approximately 55% of the net loss for the quarter is the result of two significant non-cash charges to earnings. At December 31, 2009, the Company recorded an $11.1 million valuation allowance on its deferred tax assets that will be reversed when the Company returns to a level of sustained profitability. The Company also recorded a $6.0 million charge to earnings for the impairment of goodwill due primarily to the decline in the market value of the Company's common stock. In addition to the above charges, the Company recorded an additional $1.8 million of FDIC insurance expense during the fourth quarter related to a change in the timing and expensing of FDIC insurance premiums. Further details regarding the Company's results for the fourth quarter and full-year ended December 31, 2009 are set forth in the accompanying financial tables.
During the fourth quarter, the Company continued to increase liquidity on its balance sheet to meet its funding needs and to have funds on hand for other contingencies through this economic recession. At December 31, 2009, the Company had $186.5 million in cash and cash equivalents, approximately 15% of total assets. This amount is over twice the level the Company would carry in a normal operating environment. Carrying this excess liquidity at a negative net spread reduced the Company's net interest margin by 15 basis points, or $450,000, during the fourth quarter of 2009.
At the end of the fourth quarter, the Company increased the allowance for loan losses by $16.0 million. At quarter end, the Company had an allowance for loan losses of $29.3 million, or 3.64% of total loans. After posting the net loss for the quarter, the Company remained adequately capitalized with a total risk-based capital ratio of 8.1% and a tier one risk-based capital ratio of 6.8%.
Asset Quality
A summary of pertinent asset quality ratios for the Company as of December 31, 2009 is as follows:
- Total nonperforming assets equaled $185.3 million, or 15.04% of total assets. Nonperforming assets consisted of $92.3 million in nonaccrual loans, $92.1 million in foreclosed real estate and other repossessed assets, $881,000 in loans classified as troubled-debt restructurings and $15,000 in loans past due 90 days or more and still accruing interest.
- Approximately 55% of nonperforming loans were construction and development loans, and these loans represented approximately 25% of the Company's total portfolio of construction and development loans.
- For the full-year 2009, the Company charged off $41.7 million in loans and recovered $501,000 in loans previously charged-off for an annualized net charge-off ratio of 4.50% of average loans.
- The allowance for loan losses represented approximately 3.64% of total loans and 31.46% of total nonperforming loans at December 31, 2009.
- Loan loss provision expense was $16.0 million in the fourth quarter of 2009, compared to $31.4 million for the third quarter of 2009 and $8.5 million for the fourth quarter of 2008.
- For the full-year 2009, loan loss provision expense was $51.2 million, compared to $18.1 million for the full-year 2008.
- The nonperforming loans consisted of:
|
Category |
Net Carrying Value * |
Collateral Description |
Average Carrying Value/ Unit |
|
Construction and Development |
$30.5 million |
24 parcels of undeveloped land totaling 2,813 acres |
$9,400 per residential acre $14,900 per commercial acre |
| Construction and Development | $5.1 million | 310 residential lots | $16,500 per lot |
| 1-4 Family Residential | $10.8 million | 82 houses | $132,000 per house |
| Commercial Real Estate | $29.5 million | 33 commercial properties | $892,200 per property |
|
Agriculture |
$2.0 million |
3 parcels of farm land totaling 373 acres |
$5,400 per acre |
| Commercial and Industrial | $357,000 | Non-real estate collateral | $35,700 per loan |
| Multi-Family Residential | $2.1 million | 9 condominium units | $232,700 per unit |
| Consumer | $373,000 | Non-real estate collateral | $53,000 per loan |
| Total | $80.7 million | ||
| * The term "net carrying value" represents the book value of the loan less any allocated allowance for loan losses. | |||
- Foreclosed real estate included:
| Category | Book Value | Description | Average Value/ Unit |
|
Construction and Development |
$39.3 million |
33 parcels of undeveloped land totaling 1,773 acres |
$11,300 per residential acre $72,300 per commercial acre |
| Construction and Development | $17.8 million | 794 residential lots | $22,400 per lot |
| 1-4 Family Residential | $8.6 million | 69 houses | $132,200 per house |
| Commercial Real Estate | $19.1 million | 28 commercial properties | $681,500 per property |
| Multi-Family Residential | $6.4 million | 8 condominium units | $800,000 per unit |
| Total | $91.2 million |
Non-GAAP Financial Measures
This press release, including the attached selected unaudited financial tables, which are a part of this release, contains financial information determined by methods other than in accordance with U.S. generally accepted accounting principles ("GAAP"). Management uses the non-GAAP measures of "earnings from core operations" and "net interest margin as adjusted for the impact of nonperforming loans and excess liquidity" in its analysis of the Company's performance. These measures, as used by the Company, adjust net income (loss) determined in accordance with GAAP to exclude the effects of taxes, the provision for loan losses and other expenses as detailed in the attached financial tables and adjust net interest income to exclude the effects of nonperforming loans and excess liquidity carried on the balance sheet. Because certain of these items and their impact on the Company's performance are difficult to predict, management believes presentation of financial measures excluding the impact of those items provides useful supplemental information in evaluating the operating results of the Company's core business and assessing trends in the Company's core operations reflected in the current quarter and year-to-date results. These disclosures should not be viewed as a substitute for net income (loss) or net interest margin as determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Please refer to the "Reconciliation of Non-GAAP Measures" in the attached tables for a more detailed analysis of these non-GAAP measures and the most directly comparable GAAP measures.
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, March 12, 2010. 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=129527. 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: 438766.
About PAB
The Company is a $1.23 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 in 11 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 plans regarding our nonperforming assets, our outlook on asset quality and the adequacy of our capital and loan loss reserves, the impact of our nonperforming assets on our capital position, our liquidity position, 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) 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; (2) continued weakness in the real estate market has adversely affected us and may continue to adversely affect us, leading to higher loan charge-offs or an increase in our provision for loan losses; (3) the possibility that we may fail to comply with our Written Agreement with the Federal Reserve Bank of Atlanta and the Georgia Department of Banking and Finance, which could result in significant enforcement actions against us of increasing severity, up to and including a regulatory takeover of our bank subsidiary; (4) competitive pressures among depository and other financial institutions may increase significantly; (5) changes in the interest rate environment may reduce margins or the volumes or values of loans made by The Park Avenue Bank; (6) legislative or regulatory changes, including changes in accounting standards and compliance requirements, may adversely affect the businesses in which we are engaged; (7) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than we can; (8) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (9) adverse changes may continue to occur in the bond and equity markets; (10) 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; (11) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (12) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (13) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (14) 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.
(Financial Tables Follow)
| PAB BANKSHARES, INC. | Period Ended | ||||
| SELECTED QUARTERLY FINANCIAL DATA | 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 |
| (Dollars in thousands except per share and other data) | |||||
| Summary of Operations: | |||||
| Interest income | $ 12,824 | $ 14,816 | $ 16,090 | $ 16,151 | $ 16,814 |
| Interest expense | 6,946 | 7,562 | 8,104 | 8,959 | 9,476 |
| Net interest income | 5,878 | 7,254 | 7,986 | 7,192 | 7,338 |
| Provision for loan losses | 16,000 | 31,438 | 2,000 | 1,750 | 8,500 |
| Other income | (946) | 889 | 2,487 | 2,106 | 107 |
| Other expense | 17,061 | 7,284 | 8,102 | 8,126 | 8,053 |
| Income (loss) before income tax expense (benefit) | (28,129) | (30,579) | 371 | (578) | (9,108) |
| Income tax expense (benefit) | 3,133 | (10,623) | 29 | (283) | (3,297) |
| Net income (loss) | $ (31,262) | $ (19,956) | $ 342 | $ (295) | $ (5,811) |
| Net interest income on a tax-equivalent basis | $ 5,937 | $ 7,324 | $ 8,069 | $ 7,316 | $ 7,470 |
| Net charge-offs | $ 26,686 | $ 11,157 | $ 2,684 | $ 721 | $ 9,367 |
| Per Share Ratios: | |||||
| Net income - basic | $ (2.27) | $ (1.93) | $ 0.04 | $ (0.03) | $ (0.62) |
| Net income - diluted | (2.27) | (1.93) | 0.04 | (0.03) | (0.60) |
| Dividends declared for period | -- | -- | -- | -- | -- |
| Dividend payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Book value at end of period | $ 3.67 | $ 6.03 | $ 9.48 | $ 9.73 | $ 9.82 |
| Common Share Data: | |||||
| Outstanding at period end | 13,795,040 | 13,795,040 | 9,324,407 | 9,324,407 | 9,324,407 |
| Weighted average outstanding | 13,795,040 | 10,344,878 | 9,324,407 | 9,324,407 | 9,324,407 |
| Diluted weighted average outstanding | 13,795,040 | 10,344,878 | 9,324,407 | 9,324,407 | 9,324,407 |
| Selected Average Balances: | |||||
| Total assets | $ 1,264,999 | $ 1,283,374 | $ 1,310,819 | $ 1,358,168 | $ 1,311,529 |
| Earning assets | 1,151,341 | 1,183,823 | 1,221,385 | 1,266,311 | 1,236,651 |
| Loans | 871,674 | 914,699 | 930,131 | 947,030 | 974,151 |
| Deposits | 1,044,674 | 1,042,085 | 1,069,685 | 1,122,115 | 1,083,862 |
| Stockholders' equity | 82,778 | 91,670 | 90,552 | 91,631 | 93,086 |
| Selected Period End Balances: | |||||
| Total assets | $ 1,231,945 | $ 1,251,219 | $ 1,277,016 | $ 1,347,068 | $ 1,350,103 |
| Earning assets | 1,095,456 | 1,152,966 | 1,186,897 | 1,256,085 | 1,259,495 |
| Loans | 805,314 | 891,981 | 919,698 | 940,279 | 956,687 |
| Allowance for loan losses | 29,314 | 40,000 | 19,719 | 20,403 | 19,374 |
| Goodwill | -- | 5,985 | 5,985 | 5,985 | 5,985 |
| Deposits | 1,045,215 | 1,029,638 | 1,036,382 | 1,105,298 | 1,123,703 |
| Stockholders' equity | 50,587 | 83,239 | 88,413 | 90,694 | 91,601 |
| Tier 1 regulatory capital | 59,861 | 79,409 | 92,159 | 91,751 | 91,962 |
| Performance Ratios: | |||||
| Return on average assets | -9.80% | -6.17% | 0.10% | -0.09% | -1.76% |
| Return on average stockholders' equity | -149.84% | -86.37% | 1.51% | -1.30% | -24.84% |
| Net interest margin | 2.05% | 2.45% | 2.65% | 2.34% | 2.40% |
| Net interest margin, adjusted for impact of nonperforming loans & excess liquidity | 3.08% | 3.06% | 3.13% | 2.83% | 2.81% |
| Efficiency ratio (excluding the following items): | 146.92% | 82.11% | 79.50% | 85.29% | 73.47% |
| Securities gains (losses) included in other income | $ 1,191 | $ 93 | $ 756 | $ 17 | $ 23 |
| Other gains (losses) included in other income | (3,738) | (755) | (394) | (127) | (820) |
| Goodwill impairment | 5,985 | -- | -- | -- | -- |
| Selected Asset Quality Factors: | |||||
| Nonaccrual loans | $ 92,272 | $ 64,808 | $ 70,232 | $ 62,653 | $ 54,903 |
| Loans 90 days or more past due and still accruing | 15 | 4 | 190 | 19 | 206 |
| Other impaired loans (troubled-debt restructurings) | 881 | -- | 84 | 311 | 311 |
| Other real estate and repossessions | 92,117 | 55,195 | 37,417 | 31,489 | 25,269 |
| Asset Quality Ratios: | |||||
| Net charge-offs to average loans (annualized YTD) | 4.50% | 2.09% | 0.73% | 0.31% | 1.21% |
| Nonperforming loans to total loans | 11.57% | 7.27% | 7.67% | 6.70% | 5.79% |
| Nonperforming assets to total assets | 15.04% | 9.59% | 8.45% | 7.01% | 5.98% |
| Allowance for loan losses to total loans | 3.64% | 4.48% | 2.14% | 2.17% | 2.03% |
| Allowance for loan losses to nonperforming loans | 31.46% | 61.72% | 27.97% | 32.39% | 34.96% |
| Other Selected Ratios and Nonfinancial Data: | |||||
| Average loans to average earning assets | 75.71% | 77.27% | 76.15% | 74.79% | 78.77% |
| Average loans to average deposits | 83.44% | 87.78% | 86.95% | 84.40% | 89.88% |
| Average stockholders' equity to average assets | 6.54% | 7.14% | 6.91% | 6.75% | 7.10% |
| Full-time equivalent employees | 270 | 266 | 269 | 287 | 299 |
| Bank branch offices | 18 | 18 | 18 | 18 | 18 |
| Bank ATMs | 27 | 26 | 26 | 26 | 26 |
| PAB BANKSHARES, INC. | Period Ended | ||||
| SELECTED YEAR-TO-DATE FINANCIAL DATA | 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 |
| (Dollars in thousands except per share and other data) | |||||
| Summary of Operations: | |||||
| Interest income | $ 59,881 | $ 47,057 | $ 32,241 | $ 16,151 | $ 70,984 |
| Interest expense | 31,571 | 24,625 | 17,062 | 8,959 | 36,218 |
| Net interest income | 28,310 | 22,432 | 15,179 | 7,192 | 34,766 |
| Provision for loan losses | 51,188 | 35,188 | 3,750 | 1,750 | 18,050 |
| Other income | 4,535 | 5,481 | 4,592 | 2,106 | 4,403 |
| Other expense | 40,573 | 23,512 | 16,227 | 8,126 | 30,584 |
| Income (loss) before income tax expense (benefit) | (58,916) | (30,787) | (206) | (578) | (9,465) |
| Income tax expense (benefit) | (7,744) | (10,876) | (254) | (283) | (3,554) |
| Net income (loss) | $ (51,172) | $ (19,911) | $ 48 | $ (295) | $ (5,911) |
| Net interest income on a tax-equivalent basis | $ 28,634 | $ 22,709 | $ 15,385 | $ 7,316 | $ 35,432 |
| Net charge-offs | $ 41,247 | $ 14,562 | $ 3,405 | $ 721 | $ 11,582 |
| Per Share Ratios: | |||||
| Net income - basic ** | $ (4.78) | $ (2.06) | $ 0.01 | $ (0.03) | $ (0.63) |
| Net income - diluted ** | (4.78) | (2.06) | 0.01 | (0.03) | (0.63) |
| Dividends declared for the period | -- | -- | -- | -- | 0.240 |
| Dividend payout ratio | 0.00% | 0.00% | 0.00% | 0.00% | -37.16% |
| Common Share Data: | |||||
| Weighted average outstanding ** | 10,708,466 | 9,668,302 | 9,324,407 | 9,324,407 | 9,335,376 |
| Diluted weighted average outstanding ** | 10,708,466 | 9,668,302 | 9,324,407 | 9,324,407 | 9,352,375 |
| Selected Average Balances: | |||||
| Total assets | $ 1,307,027 | $ 1,317,180 | $ 1,334,363 | $ 1,358,168 | $ 1,238,875 |
| Earning assets | 1,205,340 | 1,223,538 | 1,243,724 | 1,266,311 | 1,165,625 |
| Loans | 915,674 | 930,502 | 938,534 | 947,030 | 955,253 |
| Deposits | 1,069,352 | 1,077,668 | 1,095,755 | 1,122,115 | 1,011,596 |
| Stockholders' equity | 89,140 | 91,285 | 91,089 | 91,631 | 96,877 |
| Performance Ratios: | |||||
| Return on average assets | -3.92% | -2.02% | 0.01% | -0.09% | -0.48% |
| Return on average stockholders' equity | -57.41% | -29.16% | 0.10% | -1.30% | -6.10% |
| Net interest margin | 2.38% | 2.48% | 2.49% | 2.34% | 3.04% |
| Net interest margin, adjusted for impact of nonperforming loans and excess liquidity | 3.02% | 3.00% | 2.98% | 2.83% | 3.35% |
| Efficiency ratio (excluding the following items): | 95.74% | 82.24% | 82.30% | 85.29% | 70.01% |
| Securities gains (losses) included in other income | $ 2,056 | $ 865 | $ 773 | $ 17 | $ 225 |
| Other gains (losses) included in other income | (5,015) | (1,276) | (522) | (127) | (1,362) |
| Goodwill impairment | 5,985 | -- | -- | -- | -- |
| Other Selected Ratios: | |||||
| Average loans to average earning assets | 75.97% | 76.05% | 75.46% | 74.79% | 81.95% |
| Average loans to average deposits | 85.63% | 86.34% | 85.65% | 84.40% | 94.43% |
| Average stockholders' equity to average assets | 6.82% | 6.93% | 6.83% | 6.75% | 7.82% |
| **Adjusted for 2% Stock Dividend Paid on July 15, 2008 | |||||
| PAB BANKSHARES, INC. | |||||
| LOAN AND DEPOSIT | |||||
|
PORTFOLIO BY MARKET As of December 31, 2009 |
South Georgia Market |
North Georgia Market |
Florida Market |
Treasury |
Total |
| (Dollars in Thousands) | |||||
| Loans | |||||
| Commercial and financial | $ 27,866 | $ 41,013 | $ 3,497 | $ 12,395 | $ 84,771 |
| Agricultural (including loans secured by farmland) | 31,296 | 2,754 | 6,165 | -- | 40,215 |
| Real estate - construction and development | 69,842 | 103,359 | 29,756 | 1,706 | 204,663 |
| Real estate - commercial | 97,417 | 145,317 | 22,501 | 10,692 | 275,927 |
| Real estate - residential | 117,375 | 44,485 | 9,494 | 3,525 | 174,879 |
| Installment loans to individuals and others | 12,237 | 5,607 | 114 | 6,991 | 24,949 |
| 356,033 | 342,535 | 71,527 | 35,309 | 805,404 | |
| Deferred loan fees and unearned interest, net | 194 | (127) | (120) | (37) | (90) |
| Total loans | 356,227 | 342,408 | 71,407 | 35,272 | 805,314 |
| Allowance for loan losses | (9,658) | (12,785) | (1,541) | (5,330) | (29,314) |
| Net loans | $ 346,569 | $ 329,623 | $ 69,866 | $ 29,942 | $ 776,000 |
| Percentage of total | 44.2% | 42.5% | 8.9% | 4.4% | 100.0% |
| Deposits | |||||
| Noninterest-bearing demand | $ 77,661 | $ 15,635 | $ 2,576 | $ 4,586 | $ 100,458 |
| Interest-bearing demand and savings | 191,209 | 28,727 | 29,495 | 801 | 250,232 |
| Time less than $100,000 | 165,026 | 44,844 | 95,351 | 8,927 | 314,148 |
| Time greater than or equal to $100,000 | 103,672 | 28,743 | 46,799 | 38,619 | 217,833 |
| Retail placed in CDARs program | 27,102 | 2,430 | -- | -- | 29,532 |
| Brokered | -- | -- | -- | 133,012 | 133,012 |
| Total deposits | $ 564,670 | $ 120,379 | $ 174,221 | $ 185,945 | $ 1,045,215 |
| Percentage of total | 54.0% | 11.5% | 16.7% | 17.8% | 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 | ||||||
| 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | ||
| (Dollars In Thousands) | ||||||
| Commercial and financial | $ 84,771 | $ 88,863 | $ 84,599 | $ 82,534 | $ 87,530 | |
|
Agricultural (including loans secured by farmland) |
40,215 | 44,470 | 45,774 | 44,671 | 48,647 | |
|
Real estate - construction and development |
204,663 | 269,804 | 290,949 | 314,863 | 315,786 | |
| Real estate - commercial | 275,927 | 283,404 | 285,731 | 274,338 | 276,645 | |
| Real estate - residential | 174,879 | 181,048 | 183,074 | 191,388 | 196,306 | |
|
Installment loans to individuals and other loans |
24,949 | 24,561 | 29,790 | 32,740 | 32,084 | |
| 805,404 | 892,150 | 919,917 | 940,534 | 956,998 | ||
|
Deferred loan fees and unearned interest, net |
(90) | (169) | (219) | (255) | (310) | |
| Total loans | 805,314 | 891,981 | 919,698 | 940,279 | 956,688 | |
| Allowance for loan losses | (29,314) | (40,000) | (19,719) | (20,403) | (19,374) | |
| Net loans | $ 776,000 | $ 851,981 | $ 899,979 | $ 919,876 | $ 937,314 | |
| The percentage of loans outstanding at the indicated dates is presented in the following table according to type of loan: | ||||||
| Period Ended | ||||||
| 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | ||
| Commercial and financial | 10.53% | 9.96% | 9.20% | 8.78% | 9.15% | |
|
Agricultural (including loans secured by farmland) |
4.99% | 4.99% | 4.98% | 4.75% | 5.08% | |
|
Real estate - construction and development |
25.41% | 30.25% | 31.63% | 33.49% | 33.01% | |
| Real estate - commercial | 34.26% | 31.77% | 31.07% | 29.18% | 28.92% | |
| Real estate - residential | 21.72% | 20.30% | 19.90% | 20.35% | 20.52% | |
|
Installment loans to individuals and other loans |
3.10% | 2.75% | 3.24% | 3.48% | 3.35% | |
| 100.01% | 100.02% | 100.02% | 100.03% | 100.03% | ||
|
Deferred loan fees and unearned interest, net |
-0.01% | -0.02% | -0.02% | -0.03% | -0.03% | |
| Total loans | 100.00% | 100.00% | 100.00% | 100.00% | 100.00% | |
| Allowance for loan losses | -3.64% | -4.48% | -2.14% | -2.17% | -2.03% | |
| Net loans | 96.36% | 95.52% | 97.86% | 97.83% | 97.97% | |
| 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 | ||||||
| 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | ||
| (Dollars In Thousands) | ||||||
| Noninterest-bearing demand | $ 100,458 | $ 106,573 | $ 108,973 | $ 111,472 | $ 91,114 | |
| Interest-bearing demand and savings | 250,232 | 241,073 | 245,459 | 250,325 | 252,122 | |
| Time less than $100,000 | 314,148 | 319,016 | 320,834 | 330,854 | 328,329 | |
| Time greater than or equal to $100,000 | 217,833 | 201,940 | 191,852 | 198,768 | 198,845 | |
| Retail placed in CDARs program | 29,532 | 41,799 | 35,190 | 53,712 | 46,690 | |
| Brokered | 133,012 | 119,237 | 134,074 | 160,167 | 206,603 | |
| Total deposits | $ 1,045,215 | $ 1,029,638 | $ 1,036,382 | $ 1,105,298 | $ 1,123,703 | |
| The percentage of total deposits at the indicated dates is presented in the following table according to type of deposit account: | ||||||
| Period Ended | ||||||
| 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | ||
| Noninterest-bearing demand | 9.61% | 10.35% | 10.51% | 10.09% | 8.11% | |
| Interest-bearing demand and savings | 23.94% | 23.42% | 23.68% | 22.65% | 22.44% | |
| Time less than $100,000 | 30.06% | 30.98% | 30.96% | 29.93% | 29.22% | |
| Time greater than or equal to $100,000 | 20.84% | 19.61% | 18.51% | 17.98% | 17.69% | |
| Retail placed in CDARs program | 2.82% | 4.06% | 3.40% | 4.86% | 4.15% | |
| Brokered | 12.73% | 11.58% | 12.94% | 14.49% | 18.39% | |
| 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, 2009 and 2008. Federally tax-exempt income is presented on a taxable-equivalent basis assuming a 34% Federal tax rate. Loan average balances include loans on nonaccrual status. | ||||||
|
For the Three Months Ended December 31, |
2009 |
2008 |
||||
|
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
|
| (Dollars In Thousands) | ||||||
| Interest-earning assets: | ||||||
| Loans | $ 871,674 | $ 11,209 | 5.10% | $ 974,151 | $ 14,499 | 5.92% |
| Investment securities: | ||||||
| Taxable | 129,566 | 1,409 | 4.32% | 147,626 | 1,893 | 5.10% |
| Nontaxable | 11,128 | 175 | 6.24% | 30,405 | 434 | 5.69% |
| Other short-term investments | 138,973 | 91 | 0.26% | 84,469 | 120 | 0.56% |
| Total interest-earning assets | $ 1,151,341 | $ 12,884 | 4.44% | $ 1,236,651 | $ 16,946 | 5.45% |
| Interest-bearing liabilities: | ||||||
| Demand deposits | $ 207,623 | $ 311 | 0.59% | $ 220,248 | $ 824 | 1.49% |
| Savings deposits | 36,112 | 23 | 0.25% | 33,847 | 30 | 0.35% |
| Time deposits | 694,527 | 5,374 | 3.07% | 731,215 | 7,319 | 3.98% |
| FHLB advances | 90,224 | 947 | 4.16% | 109,784 | 1,111 | 4.03% |
| Notes payable | 30,310 | 249 | 3.25% | 10,310 | 142 | 5.48% |
| Other short-term borrowings | 12,452 | 43 | 1.37% | 8,678 | 50 | 2.30% |
| Total interest-bearing liabilities | $ 1,071,248 | $ 6,947 | 2.57% | $ 1,114,082 | $ 9,476 | 3.38% |
| Interest rate spread | 1.87% | 2.07% | ||||
| Net interest income | $ 5,937 | $ 7,470 | ||||
| Net interest margin | 2.05% | 2.40% | ||||
|
For the Twelve Months Ended December 31, |
2009 |
2008 |
||||
|
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
Average Balance |
Interest Income/ Expense |
Average Yield/ Rate |
|
| (Dollars In Thousands) | ||||||
| Interest-earning assets: | ||||||
| Loans | $ 915,674 | $ 52,307 | 5.71% | $ 955,253 | $ 61,686 | 6.46% |
| Investment securities: | ||||||
| Taxable | 141,513 | 6,622 | 4.68% | 147,125 | 7,679 | 5.22% |
| Nontaxable | 15,526 | 952 | 6.14% | 32,616 | 1,961 | 6.01% |
| Other short-term investments | 132,627 | 324 | 0.24% | 30,631 | 326 | 1.06% |
| Total interest-earning assets | $ 1,205,340 | $ 60,205 | 4.99% | $ 1,165,625 | $ 71,652 | 6.15% |
| Interest-bearing liabilities: | ||||||
| Demand deposits | $ 210,874 | $ 1,190 | 0.56% | $ 271,498 | $ 5,238 | 1.93% |
| Savings deposits | 35,846 | 89 | 0.25% | 35,381 | 204 | 0.58% |
| Time deposits | 713,315 | 25,014 | 3.51% | 606,878 | 25,873 | 4.26% |
| FHLB advances | 101,390 | 4,151 | 4.09% | 99,975 | 3,956 | 3.96% |
| Notes payable | 28,063 | 964 | 3.43% | 10,310 | 540 | 5.24% |
| Other short-term borrowings | 10,698 | 163 | 1.52% | 14,199 | 408 | 2.88% |
| Total interest-bearing liabilities | $ 1,100,186 | $ 31,571 | 2.87% | $ 1,038,241 | $ 36,219 | 3.49% |
| Interest rate spread | 2.13% | 2.66% | ||||
| Net interest income | $ 28,634 | $ 35,433 | ||||
| Net interest margin | 2.38% | 3.04% | ||||
| PAB BANKSHARES, INC. | ||||
| RECONCILIATION OF NON-GAAP MEASURE | ||||
| The reconciliation of net loss to earnings from core operations, as defined as net loss adjusted to exclude provision for loan loss expense, charges and losses related to nonperforming assets and income tax benefit follows: | ||||
| Three months ended | Twelve months ended | |||
| 12/31/09 | 12/31/08 | 12/31/09 | 12/31/08 | |
| (Dollars In Thousands) | (Dollars In Thousands) | |||
| Net loss | $ (31,262) | $ (5,812) | $ (51,172) | $ (5,911) |
| Provision for loan losses | 16,000 | 8,500 | 51,188 | 18,050 |
| Loss on sale and writedown of other assets | 3,738 | 1,311 | 5,015 | 1,853 |
| Carrying charges related to nonperforming assets | 1,499 | 603 | 3,291 | 956 |
| Lost interest on nonaccrual loans | 2,554 | 1,099 | 5,951 | 3,593 |
| Deposit insurance premiums | 2,498 | 200 | 4,138 | 327 |
| Goodwill impairment | 5,985 | -- | 5,985 | -- |
| Valuation allowance for deferred tax assets | 11,136 | -- | 11,136 | -- |
| Current Income tax benefit | (8,003) | (3,297) | (18,880) | (3,554) |
| Earnings from core operations | $ 4,145 | $ 2,604 | $ 16,652 | $ 15,314 |
| PAB BANKSHARES, INC. | |||||
| RECONCILIATION OF NON-GAAP MEASURE | |||||
| The reconciliation of net interest margin to net interest margin, as adjusted for the impact of nonperforming loans and excess liquidity follows: | |||||
| 12/31/09 | 09/30/09 | 06/30/09 | 03/31/09 | 12/31/08 | |
| SELECTED QUARTERLY FINANCIAL DATA: | |||||
| Net interest margin: | 2.05% | 2.45% | 2.65% | 2.34% | 2.40% |
| Impact of nonperforming loans | 0.88% | 0.47% | 0.34% | 0.32% | 0.36% |
| Impact of excess liquidity | 0.15% | 0.14% | 0.14% | 0.17% | 0.05% |
|
Net interest margin, as adjusted for impact of nonperforming loans and excess liquidity |
3.08% | 3.06% | 3.13% | 2.83% | 2.81% |
| SELECTED YEAR-TO-DATE FINANCIAL DATA: | |||||
| Net interest margin: | 2.38% | 2.48% | 2.49% | 2.34% | 3.04% |
| Impact of nonperforming loans | 0.49% | 0.37% | 0.33% | 0.32% | 0.31% |
| Impact of excess liquidity | 0.15% | 0.15% | 0.16% | 0.17% | 0.00% |
|
Net interest margin, as adjusted for impact of nonperforming loans and excess liquidity |
3.02% | 3.00% | 2.98% | 2.83% | 3.35% |