ROCK HILL, S.C., April 23, 2008 (PRIME NEWSWIRE) -- Provident Community Bancshares, Inc. (Nasdaq:PCBS) (the "Corporation") reported net income for the first quarter of 2008 was $420,000 compared to $649,000 for the first quarter of 2007. Earnings per share were $0.23 per share (diluted) for the first quarter of 2008, versus $0.35 per share (diluted) for the first quarter of 2007. The decrease in net income for the period was due primarily to declining interest rates along with an increase in the provision for loan losses due to loan growth and the increase in nonperforming assets.
At March 31, 2008, assets totaled $407.7 million compared to $407.6 million at December 31, 2007. Total assets were essentially unchanged as an increase in loans, primarily higher-yielding commercial and consumer loans, was offset by a decrease in lower-yielding investments and mortgage-backed securities. Growth in lower-cost transaction accounts and time deposits resulted in an increase in deposits and a decrease in borrowings.
Dwight V. Neese, President and CEO, said, "As we manage through this difficult credit cycle and softening economy, we remain focused on our operating objectives. Our net loan growth of $18 million for the first quarter of 2008 was supported by deposit growth of $5.7 million. In comparison to the first quarter of 2007, our non-interest income for the first quarter of 2008 increased 22.4% while our operating expenses only increased 3.4%. While the year 2008 will present many challenges for the banking industry, we plan to focus our attention on core operations with the goal of enhancing long-term value for our shareholders."
Nonperforming assets were $3.4 million as of March 31, 2008, or 0.84% of total assets, as compared to $3.2 million at December 31, 2007, an increase of $248,000. Approximately 41% or $1.4 million of nonperforming assets as of March 31, 2008 relates to one commercial loan relationship that also was also nonperforming at December 31, 2007. Management has allocated specific reserves to these and other non accrual loans that it believes will offset losses, if any, arising from less than full recovery of the loans from the supporting collateral.
The Corporation also declared a quarterly cash dividend of $0.115 per share payable on May 15, 2008 to shareholders of record on April 30, 2008. Provident Community Bancshares, Inc. has a dividend reinvestment plan and information about the plan can be obtained from Registrar and Transfer Company at 800-368-5948.
COMPANY INFORMATION
Provident Community Bancshares is the holding company for Provident Community Bank, N.A., which operates nine community oriented banking centers in the upstate of South Carolina that offer a full array of financial services. The $407-million holding company is headquartered in Rock Hill, South Carolina and its common stock is traded on the NASDAQ Global Market under the symbol PCBS. Please visit our website at www.providentonline.com or contact Wanda J. Wells, SVP/Shareholder Relations Officer at wwells@providentonline.com or Richard H. Flake, EVP/CFO at rflake@providentonline.com.
The Provident Community Bancshares, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4963
FORWARD-LOOKING STATEMENTS
Certain matters set forth in this news release may contain forward-looking statements that are provided to assist in the understanding of anticipated future financial performance. Forward-looking statements are typically identified by words such as "believe," "expect," "anticipate," "intend," "outlook," "estimate," "forecast," "project" and other similar words and expressions. Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. The Corporation's performance involves risks and uncertainties that may cause actual results to differ materially from those in such statements. For a discussion of certain factors that may cause such forward-looking statements to differ materially from the Corporation's actual results, see the Corporation's Annual Report in Form 10-K for the year ended December 31, 2007, including in the Risk Factors section of that report. Forward-looking statements speak only as of the date they are made. The Corporation does not assume any duty and does not undertake to update its forward-looking statements.
SUMMARY CONSOLIDATED FINANCIAL DATA
Our summary consolidated financial data as of and for the three months ended March 31, 2008, in the opinion of our management, contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly our financial position and results of operations for such periods in accordance with generally accepted accounting principles. The results of operations for the three months ended March 31, 2008 are not necessarily indicative of the results that may be expected for the full fiscal year.
Financial Highlights
(Unaudited)
($ in thousands, except per share data)
Three Months Ended
March 31,
-------------------------
Income Statement Data 2008 2007
-------------------------
Net interest income $ 2,501 $ 2,734
Provision for loan losses 310 160
-------------------------
Net interest income after loan loss
provision 2,191 2,574
Non-interest income 885 723
Non-interest expense 2,522 2,439
Income tax 134 209
-------------------------
Net income $ 420 $ 649
=========================
Earnings per share: basic $ 0.24 $ 0.36
=========================
Earnings per share: diluted $ 0.23 $ 0.35
=========================
Weighted Average Number of
Common Shares Outstanding
Basic 1,784,477 1,827,373
Diluted 1,804,346 1,862,194
Cash dividends per share $ 0.115 $ 0.110
Balance Sheet Data At At
3/31/08 12/31/07
-------------------------
Total assets $ 407,741 $ 407,641
Cash and due from banks 10,509 11,890
Investment securities 95,703 111,187
Loans 277,957 259,831
Allowance for loan losses 3,464 3,344
Deposits 276,071 270,399
FHLB advances and other borrowings 89,668 93,631
Junior subordinated debentures 12,372 12,372
Shareholders' equity 27,168 27,313
Common shares outstanding 1,781,091 1,794,866
Book value per share $ 15.25 $ 15.22
Equity to assets 6.66% 6.70%
Total loans to deposits 100.68% 96.09%
Allowance for loan losses to total loans 1.24% 1.29%
Asset Quality
Nonperforming loans 3,413 2,337
Other real estate owned 28 856
-------------------------
Total nonperforming assets 3,441 3,193
Net loan charge-offs 190 476