VALDOSTA, Ga., July 30, 2004 (PRIMEZONE) -- PAB Bankshares, Inc. (AMEX:PAB), the holding company for The Park Avenue Bank, announced its preliminary results for the second quarter of 2004. The Company reported net income of $2.12 million for the quarter, or $0.22 per diluted share, compared to $1.73 million, or $0.18 per diluted share, earned during the second quarter of 2003. The 22% increase in earnings is attributed to an improved net interest margin and increased operating efficiencies. The Company reported a net interest margin of 4.28% for the quarter, a 15 basis point improvement over the 4.13% margin reported for the same period last year. The Company also reported an operating efficiency ratio of 64.6%, an improvement over the 70.5% ratio reported in the same period last year. For the year to date, the Company reported net income of $4.25 million, or $0.44 per diluted share, compared to $3.56 million, or $0.37 per diluted share, for the first six months of 2003.
The Company also announced the opening of its second branch location in Henry County. The office, located at 500 Eagles Landing Parkway in Stockbridge, Georgia, opened to the public on July 1, 2004. "We are very excited about the opportunity to expand our presence in this fast-growing, South Metro Atlanta county and serve the Stockbridge and northern Henry County market area," stated President and CEO Michael E. Ricketson.
The net income reported for the quarter provided a 10.84% return on average equity ("ROE") and a 1.16% return on average assets ("ROA"), compared to a 9.36% ROE and a 0.95% ROA reported for the second quarter of 2003. For the first six months of 2004, the Company reported an ROE of 10.91% compared to a 9.78% ROE for the same period in 2003. Also, for the first six months of 2004, the Company reported an ROA of 1.17% compared to a 0.98% ROA for the same period in 2003.
The Company reported total assets of $739.2 million, total loans of $554.5 million, and total deposits of $565.6 million at June 30, 2004. The Bank's loan portfolio increased $5.4 million during the quarter. Although the increase for the quarter was less than 1%, this marked the fourth consecutive quarter of reported loan growth after a seven-quarter period of contraction within the loan portfolio. Over the last twelve-month period, the Bank's loan portfolio has increased $25.3 million, or 4.8%, compared to a decline of $61.1 million, or 10.4%, over the previous twelve-month period. "We are gradually growing back our loan portfolio with better quality loans. The combination of this growth with a rising interest rate environment should contribute to our bottom line over the next few quarters," stated Ricketson.
The Company reported the following asset quality factors as of June 30, 2004. Total loans past due 30 days or more represented 0.72% of total loans. The Company had $4.48 million in loans on nonaccrual status, a $2.56 million decrease since the end of 2003. The Company had $10.97 million in total nonperforming assets, which includes nonaccrual loans, loans 90 days or more past due and still accruing interest, troubled-debt restructurings, other real estate owned and repossessed property, a $1.82 million decrease since year end.
The Park Avenue Bank has offices in Valdosta, Adel, Athens, Bainbridge, Baxley, Cairo, Hazlehurst, McDonough, Oakwood, Statesboro, and Stockbridge, Georgia, and in Ocala and St. Augustine, Florida. The Company's common stock is traded on the American Stock Exchange under the symbol "PAB". More information on the Company is available on the Internet at www.pabbankshares.com. Additional information on the products and services offered by The Park Avenue Bank is available on the Internet at www.parkavebank.com.
Certain matters set forth in this news release are forward-looking statements, including statements regarding the Company's future performance, expansion in growth markets, loan growth, asset quality, and level of nonperforming assets which are based upon management's beliefs as well as assumptions made by and data currently available to management. 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; (3) general economic conditions may be less favorable than expected, resulting in, among other things, a deterioration in credit quality and/or a reduction in demand for credit; (4) legislative or regulatory changes, including changes in accounting standards, may adversely affect the businesses in which we are engaged; (5) competitors may have greater financial resources and develop products that enable such competitors to compete more successfully than us; (6) adverse changes may occur in the bond and equity markets; (7) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; and (8) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB Bankshares, Inc.
Selected Quarterly Financial Data
(In thousands, except per share and other data)
06/30/04 03/31/04 12/31/03 09/30/03 06/30/03
---------------------------------------------------------------------
Summary of
Operations:
Interest
income $ 9,552 $ 9,587 $ 9,657 $ 9,892 $ 10,075
Interest
expense 2,381 2,430 2,648 2,972 3,254
---------------------------------------------------------------------
Net
interest
income 7,171 7,157 7,009 6,920 6,821
---------------------------------------------------------------------
Provision for
loan losses -- -- -- -- --
Other income 1,490 1,806 1,702 2,865 1,887
Other
expense 5,613 5,726 5,829 7,343 6,225
---------------------------------------------------------------------
Income
before in-
come tax
expense 3,048 3,237 2,882 2,442 2,483
Income tax
expense 928 1,111 995 760 751
---------------------------------------------------------------------
Net
income $ 2,120 $ 2,126 $ 1,887 $ 1,682 $ 1,732
=====================================================================
Net interest
income on a
tax-
equivalent
basis $ 7,214 $ 7,202 $ 7,058 $ 6,968 $ 6,866
Selected
Average
Balances:
Total
assets $ 736,898 $ 728,652 $ 737,396 $ 747,402 $ 728,136
Earning
assets 677,527 667,516 676,372 687,329 667,462
Loans 551,675 541,549 537,223 529,761 541,836
Deposits 561,141 555,406 563,836 573,422 577,416
Stockholders'
equity 78,647 77,814 75,906 74,281 74,237
Performance
Ratios:
Return on
average
assets
("ROA") 1.16% 1.17% 1.02% 0.89% 0.95%
Return on
average
equity
("ROE") 10.84% 10.99% 9.86% 8.99% 9.36%
Net interest
margin 4.28% 4.34% 4.14% 4.02% 4.13%
Efficiency
ratio
(excluding
the
following
items:) 64.55% 65.09% 66.42% 66.94% 70.46%
Loss on early
retirement
of debt
included
in other
expense $ -- $ -- $ -- $ 1,438 $ --
Securities
gains
(losses)
included
in other
income $ (1) $ 2 $ 11 $ 1,047 $ 107
Other gains
(losses)
included
in other
income $ 10 $ 210 $ (27) $ (35)$ (189)
Average
loans
to average
earning
assets 81.42% 81.13% 79.43% 77.08% 81.18%
Average
loans to
average
deposits 98.31% 97.51% 95.28% 92.39% 93.84%
Average
equity to
average
assets 10.67% 10.68% 10.29% 9.94% 10.20%
Per Share
Ratios:
Net income
- basic $ 0.23 $ 0.22 $ 0.20 $ 0.18 $ 0.18
Net income
- diluted 0.22 0.22 0.19 0.17 0.18
Dividends
declared 0.07 0.07 0.07 0.05 0.03
Dividend
payout
ratio 31.39% 31.32% 35.18% 28.09% 16.35%
Book value
at end of
period $ 8.19 $ 8.26 $ 8.02 $ 7.87 $ 7.90
Common Share
Data:
Outstanding
at period
end 9,496,360 9,514,240 9,484,660 9,452,584 9,434,813
Weighted
average
out-
standing 9,515,438 9,500,031 9,476,158 9,445,852 9,431,644
Diluted
weighted
average
out-
standing 9,640,837 9,689,580 9,686,617 9,615,852 9,554,345
Selected
Period End
Balances:
Total
assets $ 739,237 $ 735,299 $ 730,741 $ 735,715 $ 748,017
Earning
assets 679,232 675,293 666,488 671,927 677,395
Loans 554,524 549,149 538,644 531,551 529,231
Allowance
for loan
losses 9,609 9,730 10,139 10,426 10,728
Deposits 565,613 556,853 556,917 563,412 573,230
Stockholders'
equity 77,735 78,611 76,062 74,411 74,566
Selected
Asset Quality
Factors:
Nonaccrual
loans $ 4,484 $ 4,868 $ 7,048 $ 7,230 $ 9,842
Loans 90
days or
more past
due and
still
accruing 9 -- -- -- --
Other impaired
loans
(troubled-
debt re-
structurings) 2,179 2,188 1,168 1,176 1,188
Other real
estate & re-
possessions 4,298 4,376 4,578 3,918 1,882
Asset Quality
Ratios:
Net charge-
offs to
average
loans
(annualized
YTD) 0.19% 0.30% 0.36% 0.41% 0.50%
Nonperforming
loans to
total loans 1.20% 1.28% 1.53% 1.58% 2.19%
Nonperforming
assets to
total assets 1.48% 1.55% 1.75% 1.68% 1.73%
Allowance for
loan losses
to total
loans 1.73% 1.77% 1.88% 1.96% 2.03%
Allowance for
loan losses
to nonper-
forming
loans 144.03% 137.90% 123.41% 124.03% 97.26%
PAB Bankshares, Inc.
Selected Year To Date Financial Data
(In thousands, except per share and other data)
06/30/04 03/31/04 12/31/03 09/30/03 06/30/03
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Summary of
Operations:
Interest
income $ 19,139 $ 9,587 $ 40,040 $ 30,383 $ 20,491
Interest
expense 4,811 2,430 12,467 9,819 6,847
---------------------------------------------------------------------
Net interest
income 14,328 7,157 27,573 20,564 13,644
---------------------------------------------------------------------
Provision for
loan losses -- -- -- -- --
Other income 3,296 1,806 8,616 6,913 4,048
Other expense 11,339 5,726 25,702 19,873 12,530
---------------------------------------------------------------------
Income be-
fore income
tax expense 6,285 3,237 10,487 7,604 5,162
Income tax
expense 2,039 1,111 3,361 2,366 1,606
---------------------------------------------------------------------
Net
income $ 4,246 $ 2,126 $ 7,126 $ 5,238 $ 3,556
=====================================================================
Net interest
income on a
tax-
equivalent
basis $ 14,416 $ 7,202 $ 27,759 $ 20,701 $ 13,733
Selected
Average
Balances:
Total
assets $ 732,762 $ 728,652 $ 736,367 $ 736,020 $ 730,235
Earning
assets 672,521 667,516 675,718 675,497 669,483
Loans 546,612 541,549 540,787 541,987 548,202
Deposits 558,274 555,406 576,871 581,264 585,249
Stockholders'
equity 78,230 77,814 74,229 73,663 73,350
Performance
Ratios:
Return on
average
assets
("ROA") 1.17% 1.17% 0.97% 0.95% 0.98%
Return on
average
equity
("ROE") 10.91% 10.99% 9.60% 9.51% 9.78%
Net interest
margin 4.31% 4.34% 4.11% 4.10% 4.14%
Efficiency
ratio (ex-
cluding the
following
items:) 64.82% 65.09% 68.90% 69.73% 71.12%
Loss on
early re-
tirement of
debt included
in other
expense $ -- $ -- $ 1,438 $ 1,438 $ --
Securities
gains in-
cluded in
other
income $ 1 $ 2 $ 1,416 $ 1,405 $ 358
Other gains
(losses) in-
cluded in
other
income $ 220 $ 210 $ (256) $ (229) $ (194)
Average
loans to
average
earning
assets 81.28% 81.13% 80.03% 80.24% 81.88%
Average
loans to
average
deposits 97.91% 97.51% 93.74% 93.24% 93.67%
Average
equity to
average
assets 10.68% 10.68% 10.08% 10.01% 10.04%
Per Share
Ratios:
Net income
- basic $ 0.45 $ 0.22 $ 0.75 $ 0.56 $ 0.38
Net income
- diluted 0.44 0.22 0.74 0.55 0.37
Dividends
declared 0.14 0.07 0.18 0.11 0.06
Dividend
payout ratio 31.36% 31.32% 23.89% 19.82% 15.91%
Common Share
Data:
Weighted
average out-
standing 9,507,735 9,500,031 9,446,142 9,436,026 9,431,032
Diluted
weighted
average out-
standing 9,665,757 9,689,580 9,587,187 9,547,265 9,507,548