Attached files
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| 8-K - PROVIDENT COMMUNITY BANCSHARES, INC. 8-K - PROVIDENT COMMUNITY BANCSHARES, INC. | a50049853.htm |
Exhibit 99.1
Provident Community Bancshares Reports Third Quarter Results
ROCK HILL, S.C.--(BUSINESS WIRE)--October 31, 2011--Provident Community Bancshares, Inc. (NASDAQ CM: PCBS) (the “Corporation”) recorded a net loss to common shareholders of $121,000 for the three months ended September 30, 2011 compared to a net loss to common shareholders of $3.4 million for the same period in 2010. The decrease in the loss in 2011 was primarily due to a reduction in the provision for loan losses, due to a net reduction in total loans of $8.3 million during the quarter and a reduction in loan charge-offs, along with a reduction in other than temporary impairment write-down on securities, offset by a decrease in the gain on the sale of investments. Net loss per common share was $0.07 (diluted) for the three months ended September 30, 2011, versus a net loss of $1.89 per common share (diluted) for the same period in 2010. The net loss to common shareholders for the nine months ended September 30, 2011 was $237,000, or $0.13 per share (diluted), compared to a net loss to common shareholders of $3.9 million or $2.18 per share (diluted), for the same period in 2010.
At September 30, 2011, assets totaled $384.9 million, a decrease of $23.8 million, or 5.8%, from $408.7 million at December 31, 2010. Starting in 2010 the Corporation implemented a program to shrink its balance sheet in order to increase its regulatory capital ratios. This shrinkage was accomplished with reductions in loans and was primarily funded with reductions in borrowings and higher cost deposits. Investment securities at September 30, 2011 increased $6.6 million, or 4.4%, to $155.1 million from $148.5 million at December 31, 2010. Fed funds sold at September 30, 2011 increased $13.3 million to $27.7 million from $14.5 million at December 31, 2010 as a result of sales and maturities of securities. Net loans receivable decreased $37.1 million, or 18.7%, to $161.8 million at September 30, 2011 as a result of lower demand and more stringent underwriting standards. Deposits decreased $22.6 million to $290.5 million at September 30, 2011 as a result of reductions in funding needs. FHLB advances and other borrowings decreased $4.7 million to $64.9 million at September 30, 2011 due primarily to the maturation of borrowings. Shareholders’ equity increased $2.8 million, or 27.1%, to $13.1 million at September 30, 2011 from $10.3 million at December 31, 2010 due primarily to a $2.7 million decrease in unrealized losses on securities available for sale.
Nonperforming loans, which are primarily loans secured by commercial real estate properties, were $17.0 million as of September 30, 2011, or 10.5% of total loans, as compared to $18.8 million at December 31, 2010, a decrease of $1.9 million. Real estate acquired through foreclosure decreased $1.5 million, to $9.1 million at September 30, 2011 from $10.6 million at December 31, 2010. Bad debt charge-offs, net of recoveries, were $3.5 million for the nine months ended September 30, 2011 compared to $5.8 million for the same period in 2010.
Dwight V. Neese, President and CEO, said “Our financial performance improved over the comparable periods for the previous year but was still affected by the continued decline in real estate values in the markets we serve. We reported lower loan charge-offs and provisions in the third quarter and we continue to be focused on reducing the level of our nonperforming assets in order to improve profitability. Our results reflect the positive outcome of proactive measures that were taken earlier to deal with uncertain market conditions. As a result, our capital ratios increased and higher underwriting standards and a profitable core banking operation contributed to an improved quarter. While we remain cautious, we see indications that the current credit crisis may have bottomed and may be beginning to stabilize. We also believe that we have aggressively identified and dealt with our problem loans and believe that the steps that we have taken with our loan review and risk management systems and technology improvements will enable us to better manage our loan portfolio.”
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 Corporation is headquartered in Rock Hill, South Carolina. 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.
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, risk 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, 2010, 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 and nine months ended September 30, 2011, 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.
| Financial Highlights | |||||||||||||
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(Unaudited) ($ in thousands, except per share data) |
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Three Months Ended
September 30, |
Nine Months Ended
September 30, |
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Income Statement Data |
2011 | 2010 | 2011 | 2010 | |||||||||
| Net interest income | $ | 2,179 | $ | 2,203 | $ | 6,468 | $ | 6,391 | |||||
| Provision for loan losses | 290 | 3,947 | 290 | 6,030 | |||||||||
| Net interest income (loss) after loan loss provision | 1,889 | (1,744 | ) | 6,178 | 361 | ||||||||
| Non-interest income | 651 | 741 | 1,956 | 2,171 | |||||||||
| Net gain on sale of investments | 419 | 619 | 697 | 1,824 | |||||||||
| Other-than-temporary-impairment on securities | (218 | ) | (661 | ) | (409 | ) | (1,127 | ) | |||||
| OREO property write-downs/disposition expense | 483 | 475 | 1,304 | 733 | |||||||||
| Non-interest expense | 2,251 | 2,292 | 6,975 | 6,831 | |||||||||
| Expense (benefit) for income taxes | 7 | (548 | ) | 25 | (793 | ) | |||||||
| Net (loss) income | (1 | ) | (3,263 | ) | 118 | (3,542 | ) | ||||||
| Accretion of preferred stock to redemption value | 2 | 2 | 4 | 4 | |||||||||
| Preferred dividends accrued | 118 | 118 | 351 | 351 | |||||||||
| Net loss to common shareholders | ($121 | ) | ($3,383 | ) | ($237 | ) | ($3,897 | ) | |||||
| Loss per common share: basic | ($0.07 | ) | ($1.89 | ) | ($0.13 | ) | ($2.18 | ) | |||||
| Loss per common share: diluted | ($0.07 | ) | ($1.89 | ) | ($0.13 | ) | ($2.18 | ) | |||||
| Weighted Average Number of | |||||||||||||
| Common Shares Outstanding | |||||||||||||
| Basic | 1,790,599 | 1,790,599 | 1,790,599 | 1,790,599 | |||||||||
| Diluted | 1,790,599 | 1,790,599 | 1,790,599 | 1,790,599 | |||||||||
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Balance Sheet Data |
At
9/30/11 |
At
12/31/10 |
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| Total assets | $384,879 | $408,718 | |||||||||||
| Cash and due from banks | 36,583 | 24,865 | |||||||||||
| Investment securities | 155,054 | 148,469 | |||||||||||
| Loans | 165,989 | 206,275 | |||||||||||
| Allowance for loan losses | 4,183 | 7,379 | |||||||||||
| Deposits | 290,496 | 313,128 | |||||||||||
| FHLB advances and other borrowings | 64,865 | 69,528 | |||||||||||
| Junior subordinated debentures | 12,372 | 12,372 | |||||||||||
| Total liabilities | 371,825 | 398,449 | |||||||||||
| Shareholders’ equity | 13,054 | 10,269 | |||||||||||
| Preferred shares outstanding | 9,266 | 9,266 | |||||||||||
| Common shares outstanding | 1,790,599 | 1,790,599 | |||||||||||
| Bank Regulatory Capital ratios: | |||||||||||||
| Leverage ratio | 6.38 | % | 5.67 |
% |
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| Tier 1 capital ratio | 11.46 | % | 9.75 |
% |
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| Total risk-based capital ratio | 12.72 | % | 10.99 |
% |
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Asset Quality |
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| Non-performing loans | $16,960 | $18,826 | |||||||||||
| Troubled debt restructurings | 7,725 | 5,667 | |||||||||||
| Other real estate owned | 9,099 | 10,618 | |||||||||||
| Total non-performing assets | $33,784 | $35,111 | |||||||||||
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Percentage of non-performing loans to net loans |
10.48 | % | 9.46 |
% |
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| Percentage of non-performing assets to total assets | 8.78 | % | 8.59 |
% |
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Allowance for loan losses to nonperforming loans |
24.66 |
% |
39.20 |
% |
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Allowance for loan losses to total loans |
2.52 |
% |
3.58 |
% |
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CONTACT:
Provident Community Bancshares, Inc.
Dwight V. Neese,
803-980-1863
President & Chief Executive Officer
dneese@providentonline.com