VALDOSTA, Ga., Nov. 1, 2006 (PRIMEZONE) -- PAB Bankshares, Inc. (Nasdaq:PABK) today announced the Company's financial results for the third quarter and nine months ended September 30, 2006. The Company reported net income of $3.53 million, or $0.36 per diluted share, for the three months ended September 30, 2006, which was comparable to the $3.52 million, or $0.36 per diluted share, reported for the same period in 2005. The Company's earnings for the third quarter of 2006 were affected by an $181,000 after-tax loss on a securities transaction taken to reposition a portion of its investment securities portfolio for 2007.
"We are very pleased with the progress in our expansion plans, the sound asset quality of the Company's loan portfolio and the overall direction of our franchise," stated President and CEO M. Burke Welsh, Jr. "Since September 30, 2004, our total assets have increased 37% through the addition of several seasoned bankers. Over this two-year span, we have also experienced economic growth in our region and a favorable interest rate environment. We have been able to utilize this momentum to invest in opening new offices, hiring and training key personnel and improving our infrastructure for future opportunities," added Welsh. At September 30, 2006, the Company reported total assets of $1.1 billion, total loans of $806.6 million, and total deposits of $883.7 million representing increases of 10.6%, 10.3% and 12.2%, respectively, since September 30, 2005.
For the three months ended September 30, 2006, the Company's return on average assets ("ROA") was 1.31% and its return on average equity ("ROE") was 15.27%, compared to a 1.43% ROA and 16.12% ROE for the same period in 2005. The Company's net interest margin was 4.48% for the third quarter of 2006, a three basis point improvement compared to the 4.45% net interest margin in the third quarter of 2005. However, the spread between the average yield on the Company's earnings assets and the average rate paid for its interest-bearing funds decreased by six basis points to 3.94% for the quarter compared to a 4.00% spread recorded for the same period in 2005.
For the nine months ended September 30, 2006, the Company reported net income of $10.4 million, or $1.07 per diluted share, a 14% increase compared to $9.1 million, or $0.94 per diluted share, reported for the same period in 2005. The net income for the first nine months of 2006 resulted in a 15.43% ROE and a 1.32% ROA, both an improvement compared to a 14.43% ROE and a 1.31% ROA for the same period in 2005. The Company's net interest margin for the first nine months of 2006 was 4.55%, a 17 basis point improvement compared to the 4.38% net interest margin for the same period in 2005.
Conference Call
The Company will host a conference call and webcast to allow the public the opportunity to listen to management discuss the Company's quarterly results at 10:00 AM Eastern on Thursday, November 2, 2006. Members of the news media, investors and the general public are invited to access the live webcast of the conference call via the Company's website at www.pabbankshares.com. A link to the webcast is posted on the "Corporate Profile" page in the "Investor Relations" section of the Company's website. Participants may also access the live conference call by dialing (toll free) 877-407-0778 or (international) 201-689-8565. Shortly following the call and at any time for 60 days thereafter, listeners may access an archived version of the webcast at the "Investor Relations" section of the Company's website.
About PAB
The Company's sole operating subsidiary is The Park Avenue Bank. Both the Company and the Bank are headquartered in Valdosta, Georgia. The Bank is celebrating its 50th anniversary in 2006. In 1956, the Bank was established by Mr. James L. Dewar, Sr. in a small office at the corner of Park Avenue and Ashley Street in Valdosta. Currently, the Bank operates 18 branch offices and four loan production offices in 15 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. On November 1, 2005, the Company's common stock began trading on the NASDAQ National Market under the symbol PABK. The Company's common stock had previously traded on the American Stock Exchange under the symbol PAB since July 9, 1996. More information on the Company is available on the Internet at www.pabbankshares.com.
Note to Investors
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, projected growth, and branch expansion, 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 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 and compliance requirements, 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 we can; (6) our ability to attract and retain key personnel can be affected by the increased competition for experienced employees in the banking industry; (7) adverse changes may occur in the bond and equity markets; (8) war or terrorist activities may cause further deterioration in the economy or cause instability in credit markets; (9) restrictions or conditions imposed by our regulators on our operations may make it more difficult for us to achieve our goals; (10) economic, governmental or other factors may prevent the projected population, residential and commercial growth in the markets in which we operate; and (11) the risk factors discussed from time to time in the Company's Periodic Reports filed with the Securities and Exchange Commission. The Company undertakes no obligation to revise these statements following the date of this press release.
PAB BANKSHARES, INC.
SELECTED QUARTERLY FINANCIAL DATA
Period Ended
------------------------------------------------------
09/30/06 06/30/06 03/31/06 12/31/05 09/30/05
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of
Operations:
Interest
income $ 20,173 $ 19,306 $ 17,848 $ 16,940 $ 15,783
Interest
expense 8,936 8,006 6,956 6,367 5,556
---------------------------------------------------------------------
Net interest
income 11,237 11,300 10,892 10,573 10,227
---------------------------------------------------------------------
Provision for
loan losses -- -- -- 300 275
Other income 1,204 1,557 1,041 1,437 1,570
Other expense 7,000 7,182 6,756 6,526 6,259
---------------------------------------------------------------------
Income before
income tax
expense 5,441 5,675 5,177 5,184 5,263
Income tax
expense 1,908 2,083 1,865 1,856 1,744
---------------------------------------------------------------------
Net income $ 3,533 $ 3,592 $ 3,312 $ 3,328 $ 3,519
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 11,378 $ 11,422 $ 10,975 $ 10,648 $ 10,284
Per Share Ratios:
Net income
- basic $ 0.37 $ 0.38 $ 0.35 $ 0.35 $ 0.37
Net income
- diluted 0.36 0.37 0.34 0.34 0.36
Dividends
declared for
period 0.140 0.135 0.125 0.125 0.120
Dividend payout
ratio 37.62% 35.70% 35.91% 35.56% 32.52%
Book value at
end of period $ 9.84 $ 9.36 $ 9.35 $ 9.19 $ 9.15
Common Share Data:
Outstanding at
period end 9,493,763 9,498,026 9,512,767 9,469,017 9,534,408
Weighted average
outstanding 9,500,742 9,511,395 9,484,570 9,502,842 9,530,712
Diluted weighted
average out-
standing 9,684,451 9,722,097 9,712,633 9,707,068 9,709,819
Selected Average
Balances:
Total assets $1,070,920 $1,055,955 $1,035,348 $1,007,109 $ 974,747
Earning assets 1,007,917 994,173 975,699 948,882 916,001
Loans 805,732 787,332 761,900 741,600 722,410
Deposits 863,212 851,937 834,062 803,978 764,068
Stockholders'
equity 91,821 90,433 89,030 87,842 86,596
Selected Period
End Balances:
Total assets $1,095,836 $1,060,046 $1,059,167 $1,017,326 $ 991,111
Earning assets 1,032,261 994,386 998,639 957,918 932,491
Loans 806,636 803,035 764,090 752,938 731,545
Allowance for
loan losses 10,686 10,903 11,186 11,079 10,768
Deposits 883,701 856,778 855,224 815,681 787,664
Stockholders'
equity 93,440 88,917 88,974 87,001 87,208
Tier 1
regulatory
capital 98,183 96,398 94,686 92,267 91,410
Performance
Ratios:
Return on
average assets 1.31% 1.36% 1.30% 1.31% 1.43%
Return on
average stock-
holders'
equity 15.27% 15.93% 15.08% 15.03% 16.12%
Net interest
margin 4.48% 4.61% 4.56% 4.45% 4.45%
Efficiency
ratio (ex-
cluding the
following
items): 54.50% 55.37% 54.29% 53.70% 52.80%
Securities
gains
(losses) in-
cluded in
other
income $ (278)$ (1)$ (430) (10) --
Other gains
(losses) in-
cluded in
other income 17 8 2 (57) (1)
Selected Asset
Quality Factors:
Nonaccrual
loans $ 1,928 $ 412 $ 7,760 $ 7,856 $ 7,446
Loans 90 days
or more past
due and still
accruing 40 23 17 2 20
Other impaired
loans (troubled-
debt restruc-
turings) -- -- -- -- --
Other real
estate and
repossessions 813 976 212 42 38
Asset Quality
Ratios:
Net charge-offs
to average
loans (annu-
alized YTD) 0.07% 0.05% -0.06% -0.12% -0.16%
Nonperforming
loans to total
loans 0.24% 0.05% 1.02% 1.04% 1.02%
Nonperforming
assets to
total assets 0.25% 0.13% 0.75% 0.78% 0.76%
Allowance for
loan losses to
total loans 1.32% 1.36% 1.46% 1.47% 1.47%
Allowance for
loan losses to
nonperforming
loans 542.93% 2510.11% 143.82% 140.98% 144.22%
Other Selected
Ratios and
Nonfinancial
Data:
Average loans
to average
earning assets 79.94% 79.19% 78.09% 78.16% 78.87%
Average loans
to average
deposits 93.34% 92.42% 91.35% 92.24% 94.55%
Average stock-
holders' equity
to average
assets 8.57% 8.56% 8.60% 8.72% 8.88%
Full-time
equivalent
employees 309 314 305 300 293
Bank branch
offices 17 17 17 17 17
Bank loan
production
offices 5 5 4 4 3
Bank ATMs 20 20 20 20 18
PAB BANKSHARES, INC.
SELECTED YEAR-TO-DATE FINANCIAL DATA
Period Ended
------------------------------------------------------
09/30/06 06/30/06 03/31/06 12/31/05 09/30/05
---------------------------------------------------------------------
(Dollars in thousands except per share and other data)
Summary of
Operations:
Interest
income $ 57,327 $ 37,154 $ 17,848 $ 59,371 $ 42,431
Interest
expense 23,898 14,962 6,956 20,398 14,031
---------------------------------------------------------------------
Net interest
income 33,429 22,192 10,892 38,973 28,400
---------------------------------------------------------------------
Provision for
loan losses -- -- -- 1,189 889
Other income 3,802 2,598 1,041 5,813 4,375
Other expense 20,937 13,938 6,756 24,778 18,252
---------------------------------------------------------------------
Income before
income tax
expense 16,294 10,852 5,177 18,819 13,634
Income tax
expense 5,856 3,948 1,865 6,366 4,510
---------------------------------------------------------------------
Net income $ 10,438 $ 6,904 $ 3,312 $ 12,453 $ 9,124
=====================================================================
Net interest
income on a
tax-equivalent
basis $ 33,775 $ 22,397 $ 10,975 $ 39,195 $ 28,547
Per Share
Ratios:
Net income
- basic $ 1.10 $ 0.73 $ 0.35 $ 1.31 $ 0.96
Net income
- diluted 1.07 0.71 0.34 1.28 0.94
Dividends de-
clared for the
period 0.400 0.260 0.125 0.475 0.350
Dividend payout
ratio 36.41% 35.80% 35.91% 36.29% 36.55%
Common Share
Data:
Weighted average
outstanding 9,498,962 9,498,057 9,484,570 9,514,775 9,518,797
Diluted weighted
average out-
standing 9,707,786 9,719,638 9,712,633 9,686,894 9,679,974
Selected Average
Balances:
Total assets $1,054,205 $1,045,708 $1,035,348 $ 948,457 $ 928,587
Earning assets 992,719 984,994 975,699 890,336 870,607
Loans 785,148 774,686 761,900 706,052 694,072
Deposits 849,844 843,049 834,062 741,409 720,324
Stockholders'
equity 90,438 89,735 89,030 85,431 84,514
Performance
Ratios:
Return on
average assets 1.32% 1.33% 1.30% 1.31% 1.31%
Return on average
stockholders'
equity 15.43% 15.51% 15.08% 14.58% 14.43%
Net interest
margin 4.55% 4.59% 4.56% 4.40% 4.38%
Efficiency ratio
(excluding the
following items): 54.73% 54.84% 54.29% 54.94% 55.40%
Securities
gains (losses)
included in
other
income $ (708) $ (430) $ (430) $ (11) $ (1)
Other gains
(losses) in-
cluded in
other income 27 10 2 (79) (23)
Other Selected
Ratios:
Average loans
to average
earning assets 79.09% 78.65% 78.09% 79.30% 79.72%
Average loans
to average
deposits 92.39% 91.89% 91.35% 95.23% 96.36%
Average stock-
holders' equity
to average
assets 8.58% 8.58% 8.60% 9.01% 9.10%
PAB BANKSHARES, INC.
LOAN AND DEPOSIT
PORTFOLIO BY MARKET
As of September 30, 2006
South North
Georgia Georgia Florida
Market Market Market Treasury Total
------------------------------------------------
Loans (Dollars in Thousands)
Commercial and
financial $ 35,375 $ 24,735 $ 245 $ 58 $ 60,413
Agricultural
(including loans
secured by
farmland) 39,475 4,247 994 -- 44,716
Real estate
- Construction 80,561 180,667 35,765 33 297,026
Real estate
- commercial 79,586 145,419 23,027 5,554 253,586
Real estate
- residential 100,759 25,324 5,442 2,458 133,983
Installment loans
to individuals
and others 15,819 928 101 1,363 18,211
------------------------------------------------
351,575 381,320 65,574 9,466 807,935
Deferred loan fees
and unearned
interest, net (60) (729) (523) 13 (1,299)
------------------------------------------------
Total loans 351,515 380,591 65,051 9,479 806,636
Allowance for
loan losses (4,494) (4,783) (871) (538) (10,686)
------------------------------------------------
Net Loans $347,021 $375,808 $ 64,180 $ 8,941 $795,950
================================================
Percent of Total 43.60% 47.22% 8.06% 1.12% 100.00%
================================================
Deposits
Noninterest-
bearing demand $ 74,737 $ 13,131 $ 6,405 $ 6,430 $100,703
Interest-bearing
demand and
savings 235,633 49,775 30,248 729 316,385
Time 252,571 65,852 105,687 42,503 466,613
------------------------------------------------
Total Deposits $562,941 $128,758 $142,340 $ 49,662 $883,701
================================================
Percent of Total 63.70% 14.57% 16.11% 5.62% 100.00%
================================================
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
----------------------------------------------------
09/30/06 06/30/06 03/31/06 12/31/05 09/30/05
----------------------------------------------------
(Dollars In Thousands)
Commercial and
financial $ 60,413 $ 53,185 $ 47,164 $ 50,860 $ 55,536
Agricultural
(including loans
secured by
farmland) 44,716 47,754 53,368 55,830 45,759
Real estate
- construction 297,026 304,387 290,863 268,629 257,522
Real estate
- commercial 253,586 251,966 229,236 231,601 206,910
Real estate
- residential 133,983 127,020 123,903 127,326 145,395
Installment loans
to individuals
and other loans 18,211 19,966 20,836 20,380 22,239
-------- -------- -------- -------- --------
807,935 804,278 765,370 754,626 733,361
Deferred loan
fees and
unearned
interest, net (1,299) (1,243) (1,279) (1,688) (1,816)
-------- -------- -------- -------- --------
Total loans 806,636 803,035 764,091 752,938 731,545
Allowance for
loan losses (10,686) (10,903) (11,186) (11,079) (10,768)
-------- -------- -------- -------- --------
Net loans $795,950 $792,132 $752,905 $741,859 $720,777
======== ======== ======== ======== ========
The percentage of loans outstanding at the indicated dates is
presented in the following table according to type of loan:
Period Ended
----------------------------------------------------
09/30/06 06/30/06 03/31/06 12/31/05 09/30/05
----------------------------------------------------
Commercial and
financial 7.49% 6.62% 6.17% 6.75% 7.59%
Agricultural
(including loans
secured by
farmland) 5.54% 5.95% 6.98% 7.41% 6.26%
Real estate
- construction 36.82% 37.89% 38.07% 35.68% 35.20%
Real estate
- commercial 31.44% 31.38% 30.00% 30.76% 28.28%
Real estate
- residential 16.61% 15.82% 16.22% 16.91% 19.88%
Installment loans
to individuals
and other loans 2.26% 2.49% 2.73% 2.71% 3.04%
------ ------ ------ ------ ------
100.16% 100.15% 100.17% 100.22% 100.25%
Deferred loan
fees and unearned
interest, net -0.16% -0.15% -0.17% -0.22% -0.25%
------ ------ ------ ------ ------
Total loans 100.00% 100.00% 100.00% 100.00% 100.00%
Allowance for
loan losses -1.32% -1.36% -1.46% -1.47% -1.47%
------ ------ ------ ------ ------
Net loans 98.68% 98.64% 98.54% 98.53% 98.53%
====== ====== ====== ====== ======