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| 8-K - PORTER BANCORP, INC. 8-K - LIMESTONE BANCORP, INC. | a50356219.htm |
Exhibit 99.1
Porter Bancorp, Inc. Announces Second Quarter 2012 Results
LOUISVILLE, Ky.--(BUSINESS WIRE)--July 26, 2012--Porter Bancorp, Inc. (NASDAQ: PBIB), parent company of PBI Bank, with 18 full-service banking offices in Kentucky, today reported unaudited results for the second quarter of 2012.
The Company reported net loss to common shareholders of $319,000, or ($0.03) per diluted share, for the second quarter of 2012 compared with net loss to common shareholders of $39.0 million, or ($3.33) per diluted share, for the second quarter of 2011. Net income available to common shareholders for the six months ended June 30, 2012, was $661,000, or $0.06 per diluted common share, compared with net loss to common shareholders of $38.6 million, or ($3.30) per diluted share, for the six months ended June 30, 2011.
The improvement for the second quarter and first six months of 2012 compared with the same periods of 2011 was primarily attributable to lower provision for loan losses expense, lower OREO expense, and an increase in gain on sale of investment securities. Additionally, 2011 results were negatively impacted by a non-recurring 100% goodwill impairment charge of $23.8 million. These improvements were partially offset by lower net interest income in the second quarter and first six months of 2012, compared with 2011, as average earning assets declined $256.6 million and net interest margin declined 10 basis points between the six months ended June 30, 2012, and the six months ended June 30, 2011.
Non-performing loans decreased to $81.7 million, or 7.85% of total loans, at June 30, 2012, compared with $98.0 million, or 8.92% of total loans, at March 31, 2012. Non-performing assets increased to $136.1 million, or 10.2% of total assets, compared with $133.5 million, or 9.61% of total assets, at March 31, 2012.
Foreclosed properties at June 30, 2012 increased to $54.4 million compared with $35.6 million at March 31, 2012, and $49.9 million at June 30, 2011. The Company acquired $23.9 million of OREO and sold $4.8 million of OREO during the second quarter of 2012. Our ratio of non-performing assets to total assets increased to 10.2% at June 30, 2012, compared with 6.65% at June 30, 2011.
At June 30, 2012, PBI Bank’s Tier 1 leverage ratio was 7.38% and its Total risk-based capital ratio was 11.71%, which are below the minimums of 9.0% and 12.0% required by the Bank’s Consent Order. At June 30, 2012, Porter Bancorp’s leverage ratio was 7.56%, compared with 7.30% at March 31, 2012, and 6.53% at December 31, 2011, and its Total risk-based capital ratio was 11.94% compared with 11.68% at March 31, 2012, and 11.22% at December 31, 2011. We are continuing our efforts to strengthen our capital levels and comply with the Consent Order.
| Non-Accrual Loan Activity | ||||
| (in thousands) | ||||
| Non-accrual loans at March 31, 2012 | $ | 97,230 | ||
| Net principal pay-downs | (4,084) | |||
| Charge-offs | (4,902) | |||
| Loans foreclosed and transferred to OREO | (15,243) | |||
| Loans placed on non-accrual during the period | 8,652 | |||
| Non-accrual loans at June 30, 2012 | $ | 81,653 | ||
| Other Real Estate Owned (OREO) Activity (Net of Allowance) | ||||
| (in thousands) | ||||
| OREO at March 31, 2012 | $ | 35,574 | ||
| Real estate acquired | 23,910 | |||
| Valuation adjustment write downs | (350) | |||
| Proceeds from sales of properties | (4,223) | |||
| Gain (loss) on sales, net | (546) | |||
| OREO at June 30, 2012 | $ | 54,365 | ||
PBIB-G PBIB-F
Forward-Looking Statements
Statements in this press release relating to Porter Bancorp’s plans, objectives, expectations or future performance are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The words “believe,” “may,” “should,” “anticipate,” “estimate,” “expect,” “intend,” “objective,” “seek,” “plan,” “strive” or similar words, or negatives of these words, identify forward-looking statements. These forward-looking statements are based on management’s current expectations. Porter Bancorp’s actual results in future periods may differ materially from those currently expected due to various risks and uncertainties, including those discussed under “Risk Factors” in the Company’s Form 10-K and subsequent periodic reports filed with the Securities and Exchange Commission. The forward-looking statements in this press release are made as of the date of the release and Porter Bancorp does not assume any responsibility to update these statements.
Additional Information
Unaudited supplemental financial information for the second quarter ending June 30, 2012 follows.
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PORTER BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
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| Three | Three | Three | Six | Six | |||||||||||||||||||
| Months | Months | Months | Months | Months | |||||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||
| 6/30/12 | 3/31/12 | 6/30/11 | 6/30/12 | 6/30/11 | |||||||||||||||||||
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| Income Statement Data | |||||||||||||||||||||||
| Interest income | $ | 14,812 | $ | 15,755 | $ | 19,198 | $ | 30,567 | $ | 38,814 | |||||||||||||
| Interest expense | 4,017 | 4,301 | 5,757 | 8,318 | 11,605 | ||||||||||||||||||
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| Net interest income | 10,795 | 11,454 | 13,441 | 22,249 | 27,209 | ||||||||||||||||||
| Provision for loan losses | 4,000 | 3,750 | 13,700 | 7,750 | 18,800 | ||||||||||||||||||
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| Net interest income after provision | 6,795 | 7,704 | (259 | ) | 14,499 | 8,409 | |||||||||||||||||
| Service charges on deposit accounts | 556 | 554 | 659 | 1,110 | 1,289 | ||||||||||||||||||
| Income from fiduciary activities | 291 | 251 | 246 | 542 | 501 | ||||||||||||||||||
| Gains on sales of loans originated for sale | 77 | 45 | 320 | 122 | 541 | ||||||||||||||||||
| Gains on sales of securities, net | 1,511 | 2,019 | 1,025 | 3,530 | 1,108 | ||||||||||||||||||
| Other | 583 | 576 | 615 | 1,159 | 1,213 | ||||||||||||||||||
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| Non-interest income | 3,018 | 3,445 | 2,865 | 6,463 | 4,652 | ||||||||||||||||||
| Salaries & employee benefits | 3,982 | 4,312 | 4,180 | 8,294 | 8,304 | ||||||||||||||||||
| Occupancy and equipment | 969 | 886 | 981 | 1,855 | 1,953 | ||||||||||||||||||
| Goodwill impairment | — | — | 23,794 | — | 23,794 | ||||||||||||||||||
| Other real estate owned expense | 1,205 | 1,257 | 22,109 | 2,462 | 23,476 | ||||||||||||||||||
| FDIC insurance | 832 | 873 | 855 | 1,705 | 1,710 | ||||||||||||||||||
| Franchise tax | 592 | 592 | 582 | 1,184 | 1,164 | ||||||||||||||||||
| Loan collection expense | 586 | 360 | 925 | 946 | 1,187 | ||||||||||||||||||
| Professional fees | 567 | 356 | 354 | 923 | 634 | ||||||||||||||||||
| Communications expense | 168 | 180 | 165 | 348 | 333 | ||||||||||||||||||
| Postage and delivery | 109 | 122 | 128 | 231 | 251 | ||||||||||||||||||
| Advertising | 28 | 33 | 87 | 61 | 189 | ||||||||||||||||||
| Other | 624 | 676 | 599 | 1,300 | 1,159 | ||||||||||||||||||
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| Non-interest expense | 9,662 | 9,647 | 54,759 | 19,309 | 64,154 | ||||||||||||||||||
| Income (loss) before income taxes | 151 | 1,502 | (52,153 | ) | 1,653 | (51,093 | ) | ||||||||||||||||
| Income tax expense (benefit) | — | — | (12,164 | ) | — | (11,903 | ) | ||||||||||||||||
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| Net income (loss) | 151 | 1,502 | (39,989 | ) | 1,653 | (39,190 | ) | ||||||||||||||||
| Less: | |||||||||||||||||||||||
| Dividends on preferred stock | 438 | 437 | 437 | 875 | 875 | ||||||||||||||||||
| Accretion on preferred stock | 45 | 45 | 44 | 90 | 88 | ||||||||||||||||||
| Earnings (loss) allocated to participating securities | (13 | ) | 35 | (1,510 | ) | 27 | (1,552 | ) | |||||||||||||||
| Net income (loss) available to common | $ | (319 | ) | $ | 985 | $ | (38,960 | ) | $ | 661 | $ | (38,601 | ) | ||||||||||
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| Weighted average shares – Basic | 11,733,156 | 11,735,451 | 11,718,656 | 11,701,655 | 11,705,247 | ||||||||||||||||||
| Weighted average shares – Diluted | 11,733,156 | 11,735,451 | 11,718,656 | 11,701,655 | 11,705,247 | ||||||||||||||||||
| Basic earnings (loss) per common share | $ | (0.03 | ) | $ | 0.08 | $ | (3.33 | ) | $ | 0.06 | $ | (3.30 | ) | ||||||||||
| Diluted earnings (loss) per common share | $ | (0.03 | ) | $ | 0.08 | $ | (3.33 | ) | $ | 0.06 | $ | (3.30 | ) | ||||||||||
| Cash dividends declared per common share | $ | 0.00 | $ | 0.00 | $ | 0.01 | $ | 0.00 | $ | 0.02 | |||||||||||||
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PORTER BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
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| Three | Three | Three | Six | Six | |||||||||||||||||||||
| Months | Months | Months | Months | Months | |||||||||||||||||||||
| Ended | Ended | Ended | Ended | Ended | |||||||||||||||||||||
| 6/30/12 | 3/31/12 | 6/30/11 | 6/30/12 | 6/30/11 | |||||||||||||||||||||
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| Average Balance Sheet Data | |||||||||||||||||||||||||
| Assets | $ | 1,363,340 | $ | 1,412,606 | $ | 1,708,552 | $ | 1,387,973 | $ | 1,723,321 | |||||||||||||||
| Loans | 1,078,497 | 1,119,181 | 1,268,196 | 1,098,839 | 1,279,461 | ||||||||||||||||||||
| Earning assets | 1,307,520 | 1,350,878 | 1,580,185 | 1,329,199 | 1,585,842 | ||||||||||||||||||||
| Deposits | 1,231,281 | 1,279,287 | 1,473,459 | 1,255,284 | 1,477,304 | ||||||||||||||||||||
| Long-term debt and advances | 38,959 | 39,551 | 51,340 | 39,255 | 49,816 | ||||||||||||||||||||
| Interest bearing liabilities | 1,159,447 | 1,207,855 | 1,431,757 | 1,183,651 | 1,433,229 | ||||||||||||||||||||
| Stockholders’ equity | 83,987 | 84,659 | 166,602 | 84,323 | 178,527 | ||||||||||||||||||||
| Performance Ratios | |||||||||||||||||||||||||
| Return on average assets | 0.04 | % | 0.43 | % | (9.39 | )% | 0.24 | % | (4.59 | )% | |||||||||||||||
| Return on average equity | 0.72 | 7.14 | (96.27 | ) | 3.94 | (44.27 | ) | ||||||||||||||||||
| Yield on average earning assets (tax equivalent) | 4.59 | 4.73 | 4.91 | 4.66 | 4.97 | ||||||||||||||||||||
| Cost of interest bearing liabilities | 1.39 | 1.43 | 1.61 | 1.41 | 1.63 | ||||||||||||||||||||
| Net interest margin (tax equivalent) | 3.35 | 3.45 | 3.45 | 3.40 | 3.50 | ||||||||||||||||||||
| Efficiency ratio | 78.54 | 74.90 | 202.64 | 76.68 | 131.24 | ||||||||||||||||||||
| Loan Charge-off Data | |||||||||||||||||||||||||
| Loans charged-off | $ | (6,438 | ) | $ | (2,582 | ) | $ | (8,596 | ) | $ | (9,020 | ) | $ | (14,463 | ) | ||||||||||
| Recoveries | 79 | 206 | 14 | 285 | 95 | ||||||||||||||||||||
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| Net charge-offs | $ | (6,359 | ) | $ | (2,376 | ) | $ | (8,582 | ) | $ | (8,735 | ) | $ | (14,368 | ) | ||||||||||
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PORTER BANCORP, INC. Unaudited Financial Information (in thousands, except share and per share data) |
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| As of | As of | As of | As of | |||||||||||||||||
| 6/30/12 | 3/31/12 | 12/31/11 | 6/30/11 | |||||||||||||||||
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| Assets | ||||||||||||||||||||
| Loans | $ | 1,041,292 | $ | 1,098,962 | $ | 1,136,717 | $ | 1,250,023 | ||||||||||||
| Loan loss reserve | (51,594 | ) | (53,953 | ) | (52,579 | ) | (38,717 | ) | ||||||||||||
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| Net loans | 989,698 | 1,045,009 | 1,084,138 | 1,211,306 | ||||||||||||||||
| Securities available for sale | 194,091 | 174,918 | 158,833 | 157,524 | ||||||||||||||||
| Federal funds sold & interest bearing deposits | 30,762 | 62,560 | 92,034 | 151,362 | ||||||||||||||||
| Cash and due from financial institutions | 5,599 | 10,047 | 13,928 | 23,731 | ||||||||||||||||
| Premises and equipment | 21,223 | 21,296 | 21,541 | 21,888 | ||||||||||||||||
| Other real estate owned | 54,365 | 35,574 | 41,449 | 49,913 | ||||||||||||||||
| Deferred tax assets | — | — | — | 20,873 | ||||||||||||||||
| Accrued interest receivable and other assets | 39,114 | 40,219 | 43,501 | 39,864 | ||||||||||||||||
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| Total Assets | $ | 1,334,852 | $ | 1,389,623 | $ | 1,455,424 | $ | 1,676,461 | ||||||||||||
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| Liabilities and Equity | ||||||||||||||||||||
| Certificates of deposit | $ | 909,504 | $ | 951,503 | $ | 1,024,333 | $ | 1,131,342 | ||||||||||||
| Interest checking | 82,208 | 85,608 | 87,653 | 81,776 | ||||||||||||||||
| Money market | 60,704 | 63,701 | 64,302 | 83,083 | ||||||||||||||||
| Savings | 39,509 | 38,631 | 36,357 | 36,519 | ||||||||||||||||
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| Total interest bearing deposits | 1,091,925 | 1,139,443 | 1,212,645 | 1,332,720 | ||||||||||||||||
| Demand deposits | 112,797 | 114,304 | 111,118 | 102,777 | ||||||||||||||||
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| Total deposits | 1,204,722 | 1,253,747 | 1,323,763 | 1,435,497 | ||||||||||||||||
| Federal funds purchased & repurchase agreements | 2,501 | 1,926 | 1,738 | 11,000 | ||||||||||||||||
| FHLB advances | 6,398 | 6,789 | 7,116 | 38,937 | ||||||||||||||||
| Junior subordinated debentures | 32,200 | 32,425 | 32,650 | 33,325 | ||||||||||||||||
| Accrued interest payable and other liabilities | 7,526 | 11,945 | 7,628 | 7,250 | ||||||||||||||||
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| Total liabilities | 1,253,347 | 1,306,832 | 1,372,895 | 1,526,009 | ||||||||||||||||
| Stockholders’ equity | 81,505 | 82,791 | 82,529 | 150,452 | ||||||||||||||||
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| Total Liabilities and Stockholders’ Equity | $ | 1,334,852 | $ | 1,389,623 | $ | 1,455,424 | $ | 1,676,461 | ||||||||||||
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| Ending shares outstanding | 11,934,872 | 11,822,102 | 11,824,472 | 11,840,670 | ||||||||||||||||
| Book value per common share | $ | 3.62 | $ | 3.76 | $ | 3.74 | $ | 9.47 | ||||||||||||
| Tangible book value per common share | 3.44 | 3.57 | 3.54 | 9.25 | ||||||||||||||||
| Asset Quality Data | ||||||||||||||||||||
| Loan 90 days or more past due still on accrual | $ | 88 | $ | 733 | $ | 1,350 | $ | 1,146 | ||||||||||||
| Non-accrual loans | 81,653 | 97,230 | 92,020 | 60,331 | ||||||||||||||||
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| Total non-performing loans | 81,741 | 97,963 | 93,370 | 61,477 | ||||||||||||||||
| Real estate acquired through foreclosures | 54,365 | 35,574 | 41,449 | 49,913 | ||||||||||||||||
| Other repossessed assets | 5 | 11 | 5 | 54 | ||||||||||||||||
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| Total non-performing assets | $ | 136,111 | $ | 133,548 | $ | 134,824 | $ | 111,444 | ||||||||||||
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| Non-performing loans to total loans | 7.85 | % | 8.92 | % | 8.22 | % | 4.92 | % | ||||||||||||
| Non-performing assets to total assets | 10.20 | 9.61 | 9.26 | 6.65 | ||||||||||||||||
| Allowance for loan losses to non-performing loans | 63.12 | 55.07 | 56.31 | 62.98 | ||||||||||||||||
| Allowance for loan losses to total loans | 4.96 | 4.91 | 4.63 | 3.10 | ||||||||||||||||
| Risk-based Capital Ratios | ||||||||||||||||||||
| Tier 1 leverage ratio | 7.56 | % | 7.30 | % | 6.53 | % | 9.97 | % | ||||||||||||
| Tier 1 risk-based capital ratio | 9.95 | 9.68 | 9.23 | 13.64 | ||||||||||||||||
| Total risk-based capital ratio | 11.94 | 11.68 | 11.22 | 15.58 | ||||||||||||||||
| FTE employees | 300 | 298 | 291 | 301 | ||||||||||||||||
CONTACT:
Porter Bancorp, Inc.
Maria L. Bouvette,
502-499-4800
Chairman and CEO